N-CSRS 1 d929899dncsrs.htm HARTFORD MUTUAL FUNDS, INC. Hartford Mutual Funds, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-07589

THE HARTFORD MUTUAL FUNDS, INC.

5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087

Edward P. Macdonald, Esquire

Hartford Funds Management Company, LLC

5 Radnor Corporate Center, Suite 300

100 Matsonford Road

Radnor, Pennsylvania 19087

Registrant’s telephone number, including area code: (610) 386-4068

Date of fiscal year end: October 31

Date of reporting period: April 30, 2015

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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Reports to Stockholders.


LOGO

 


LOGO

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

LOGO

James Davey

President

Hartford Funds

 

1  The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Domestic Equity Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

The Hartford Captial Appreciation Fund

  38   

Hartford Core Equity Fund (formerly The Hartford Disciplined Equity Fund)

  48   

The Hartford Dividend and Growth Fund

  53   

The Hartford Equity Income Fund

  58   

The Hartford Growth Opportunities Fund

  63   

The Hartford Healthcare Fund

  69   

The Hartford MidCap Fund

  74   

The Hartford MidCap Value Fund

  79   

The Hartford Small Company Fund

  84   

The Hartford Small/Mid Cap Equity Fund

  92   

The Hartford SmallCap Growth Fund

  99   

The Hartford Value Opportunities Fund

  106   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  112   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  118   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  122   

Notes to Financial Statements (Unaudited)

  127   

Financial Highlights (Unaudited)

  167   

Directors and Officers (Unaudited)

  180   

How to Obtain a Copy of the Fund’s Proxy Voting Policies and Voting Records (Unaudited)

  182   

Quarterly Portfolio Holdings Information (Unaudited)

  182   

Expense Examples (Unaudited)

  183   

Main Risks (Unaudited)

  190   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.


The Hartford Capital Appreciation Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Capital Appreciation A2

     5.65%         12.08%         11.97%         8.66%   

Capital Appreciation A3

     -0.16%         5.92%         10.71%         8.05%   

Capital Appreciation B2

     5.19%         11.13%         11.03%         7.96% 4 

Capital Appreciation B3

     1.50%         7.23%         10.77%         7.96% 4 

Capital Appreciation C2

     5.31%         11.30%         11.18%         7.89%   

Capital Appreciation C3

     4.56%         10.51%         11.18%         7.89%   

Capital Appreciation I2

     5.78%         12.41%         12.30%         8.95%   

Capital Appreciation R32

     5.46%         11.71%         11.66%         8.48%   

Capital Appreciation R42

     5.64%         12.08%         12.01%         8.77%   

Capital Appreciation R52

     5.80%         12.41%         12.34%         9.04%   

Capital Appreciation R62,5

     5.86%         12.50%         12.45%         9.13%   

Capital Appreciation Y2

     5.84%         12.48%         12.45%         9.13%   

Russell 3000 Index

     4.74%         12.74%         14.33%         8.66%   

S&P 500 Index

     4.40%         12.98%         14.33%         8.32%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market 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 chart and table do not reflect the deductions 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.

 

 

 

  2  

 


The Hartford Capital Appreciation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Captial Appreciation Class A

     1.10%         1.10%   

Captial Appreciation Class B

     1.95%         1.95%   

Captial Appreciation Class C

     1.81%         1.81%   

Captial Appreciation Class I

     0.76%         0.76%   

Captial Appreciation Class R3

     1.40%         1.40%   

Captial Appreciation Class R4

     1.10%         1.10%   

Captial Appreciation Class R5

     0.80%         0.80%   

Captial Appreciation Class R6

     0.70%         0.70%   

Captial Appreciation Class Y

     0.70%         0.70%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Saul J. Pannell, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Frank D. Catrickes, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Kent M. Stahl, CFA

Senior Managing Director and Director, Investment Strategy and Risk

Wellington Management Company LLP

Gregg R. Thomas, CFA

Senior Managing Director and Director, Risk Management

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Capital Appreciation Fund returned 5.65%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmarks, the Russell 3000 Index and the S&P 500 Index, which returned 4.74% and 4.40%, respectively, for the same period. The Fund also outperformed the 4.57% average 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December,

U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s (Fed) hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

 

 

 

  3  

 


The Hartford Capital Appreciation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Eight of ten sectors in the Russell 3000 Index posted positive returns during the period. Strong performers included the Consumer Discretionary (+11%), Healthcare (+9%) and Information Technology (+7%) sectors, while the Energy (-5%) , Utilities (-1%) and Telecommunication Services (+2%) sectors lagged on a relative basis.

The Fund outperformed the Russell 3000 Index driven primarily by strong stock selection within the Consumer Discretionary, Consumer Staples and Financials sectors. Stock selection within Energy and Information Technology detracted modestly from returns. Sector allocation, a result of bottom-up stock selection, also contributed to results relative to the the Russell 3000 Index driven by our overweight to Information Technology and underweights to Utilities and Financials.

NXP Semiconductor (Information Technology), Sony (Consumer Discretionary) and Uber Technologies (Information Technology) contributed to relative returns over the period. The share price of NXP Semiconductor, a Netherlands-based semiconductor company, moved higher as it continues to maintain its status as a well-positioned semiconductor manufacturer. The stock outperformed over the period following the announcement of a merger with semiconductor company Freescale, which would make the combined company one of the largest firms in the industry. Shares of Sony, a Japan-based manufacturer of electronic equipment for consumers and industry, rose on optimism that the company will emerge stronger after exiting the PC business. Shares of Uber Technologies, a U.S.-based ride-sharing service, increased over the period due to an increase in bookings that came in ahead of projections. Additionally, Baidu, a leading search engine in China, announced that it intends to invest $600 million in Uber and connect its mapping and search features with Uber in China. Apple (Information Technology) and Bristol-Myers (Healthcare) contributed to results on an absolute basis over the period.

The top detractors from relative performance included Micron Technology (Information Technology), Petrobas (Energy), and Pioneer Natural Resources (Energy). Shares of Micron Technology, a U.S.-based semiconductor manufacturer, fell as investors worried about the demand outlook for the DRAM market. Shares of Petrobas, a Brazil-based integrated oil and gas company, fell due to President Dilma Rousseff’s re-election which is viewed negatively for the stock and because the company was forced to delay publication of third quarter earnings results due to an investigation on corruption being conducted by the Brazilian Federal Police. A sharp decline in oil prices further pressured the stock price. U.S.-based independent oil and gas exploration company Pioneer Natural Resources’ shares underperformed amid falling oil prices, as lower crude prices have caused a major retrenchment in oil company exploration and production spending.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We are constructive about the prospects for 2015. Our research leads us to believe that more opportunities for active managers now exist in equity markets as correlations within indexes move lower and dispersion of returns within sectors increases. As markets for equities continue to deepen, we expect the environment for active management to improve. Despite what we see as valuations that are higher than recent normal levels, we remain constructive on the U.S. Economic fundamentals continue to improve and our growth outlook remains positive. Top line revenue growth, stock specific risk opportunities, and returns on capital have led the way in a modestly rising market year-to-date.

At the end of the period, our largest overweights were to the Healthcare and Information Technology sectors, while our largest underweights were to the Consumer Staples and Energy sectors, relative to the Russell 3000 Index.

 

 

 

4

 


Hartford Core Equity Fund inception 04/30/1998

(formerly The Hartford Disciplined Equity Fund)

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Core Equity A2

     7.25%         16.64%         15.58%         8.41%   

Core Equity A3

     1.35%         10.22%         14.28%         7.80%   

Core Equity B2

     6.87%         15.74%         14.71%         7.83% 4 

Core Equity B3

     1.87%         10.74%         14.47%         7.83% 4 

Core Equity C2

     6.89%         15.85%         14.76%         7.62%   

Core Equity C3

     5.89%         14.85%         14.76%         7.62%   

Core Equity I2,5

     7.30%         16.69%         15.59%         8.41%   

Core Equity R32

     7.12%         16.31%         15.38%         8.31%   

Core Equity R42

     7.32%         16.72%         15.73%         8.57%   

Core Equity R52

     7.43%         17.07%         16.07%         8.85%   

Core Equity R62,5

     7.45%         17.06%         16.11%         8.91%   

Core Equity Y2

     7.50%         17.11%         16.12%         8.92%   

S&P 500 Index

     4.40%         12.98%         14.33%         8.32%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 03/31/2015. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class I and R6 shares commenced operations on 03/31/15. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

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 chart and table do not reflect the deductions 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.

 

 

 

  5  

 


Hartford Core Equity Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Core Equity Class A

     0.79%         1.07%   

Core Equity Class B

     1.54%         2.19%   

Core Equity Class C

     1.54%         1.76%   

Core Equity Class I

     0.54%         0.76%   

Core Equity Class R3

     1.09%         1.40%   

Core Equity Class R4

     0.79%         1.04%   

Core Equity Class R5

     0.49%         0.74%   

Core Equity Class R6

     0.45%         0.61%   

Core Equity Class Y

     0.49%         0.61%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Mammen Chally, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Core Equity Fund returned 7.25%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the S&P 500 Index, which returned 4.40% for the same period. The Fund outperformed the 3.92% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar negatively affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the

U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

Eight out of ten sectors in the S&P 500 Index rose during the period, with Consumer Discretionary (+12%), Healthcare (+7%), and Information Technology (+6%), performing the best. Energy (-5%) and Utilities (-1%) lagged on a relative basis during the period.

Overall, outperformance versus the S&P 500 Index was driven by strong security selection, primarily within the Consumer Staples, Industrials, and Healthcare sectors. This more than offset negative stock selection within the Consumer Discretionary sector. Sector allocation, a result of the bottom up stock selection process, also contributed to outperformance relative to the S&P 500 Index during the period, in part due to our underweight to Energy and overweight to Consumer Discretionary. This was partially offset by our overweight to Utilities and Consumer Staples. The Fund’s modest cash position detracted from relative performance in an upward-trending market.

The top contributors to relative performance were Omnicare (Healthcare), Dollar Tree (Consumer Discretionary), and AutoZone (Consumer Discretionary). Shares of Omnicare, a healthcare services company offering long term and specialty care services, rose due to news on the potential sale of the company. Shares of Dollar Tree, a U.S.-based discount variety store, rose after the company posted better-than-expected quarterly earnings and increased its guidance for the full fiscal year. Shares of AutoZone, a

 

 

 

  6  

 


Hartford Core Equity Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

U.S.-based retailer of aftermarket auto parts, moved higher amid solid quarterly earnings and the announcement of an additional $750 million stock buyback authorization. In addition, our position in Apple (Information Technology) was a top contributor to absolute performance.

The top detractors from relative performance were Biogen (Healthcare), Ralph Lauren (Consumer Discretionary), and Amazon.com (Consumer Discretionary). Shares of Biogen, a U.S.-based biotechnology company, underperformed after the firm reported disappointing earnings. Shares of Ralph Lauren, a producer of apparel, accessories, fragrances, and home furnishings, fell during the period after management reported disappointing revenue and earnings, driven in part by a strengthening U.S. Dollar that adversely affected exports. Shares of Amazon.com, a U.S.-based leader in the online e-commerce industry, outperformed after the company posted better than expected quarterly earnings. Not owning this S&P 500 Index-component stock weighed on relative performance during the period. Top absolute detractors also included Qualcomm (Information Technology) and Salix Pharmaceuticals (Healthcare).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

Overall, we continue to find what we consider to be attractively valued stocks with the characteristics we seek. We are cautiously optimistic about the outlook for the U.S. economy and for equity markets, and we continue to monitor policy decisions and economic trends that may impact our holdings. We remain consistent in adhering to our disciplined portfolio construction process that allows us to assess risk, weight individual positions accordingly, and in the process build a portfolio that focuses largely on stock selection for seeking to generate outperformance relative to the S&P 500 Index.

At the end of the period, our largest overweight positions relative to the S&P 500 Index were to Healthcare, Consumer Staples, and Consumer Discretionary, while our largest underweights were in Financials and Energy.

 

 

 

7

 


The Hartford Dividend and Growth Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks a high level of current income consistent with growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Dividend & Growth A2

     3.88%         9.90%         12.69%         8.51%   

Dividend & Growth A3

     -1.83%         3.86%         11.42%         7.90%   

Dividend & Growth B2

     3.41%         8.88%         11.69%         7.76% 4 

Dividend & Growth B3

     -1.30%         3.93%         11.43%         7.76% 4 

Dividend & Growth C2

     3.50%         9.08%         11.86%         7.71%   

Dividend & Growth C3

     2.56%         8.10%         11.86%         7.71%   

Dividend & Growth I2

     4.00%         10.13%         12.96%         8.77%   

Dividend & Growth R32

     3.71%         9.52%         12.36%         8.30%   

Dividend & Growth R42

     3.89%         9.89%         12.71%         8.61%   

Dividend & Growth R52

     4.03%         10.19%         13.06%         8.87%   

Dividend & Growth R62,5

     4.11%         10.33%         13.16%         8.97%   

Dividend & Growth Y2

     4.07%         10.28%         13.15%         8.96%   

Russell 1000 Value Index

     2.89%         9.31%         13.39%         7.51%   

S&P 500 Index

     4.40%         12.98%         14.33%         8.32%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.

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 chart and table do not reflect the deductions 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.

 

 

 

  8  

 


The Hartford Dividend and Growth Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Dividend and Growth Class A

     1.02%         1.02%   

Dividend and Growth Class B

     1.94%         1.96%   

Dividend and Growth Class C

     1.77%         1.77%   

Dividend and Growth Class I

     0.81%         0.81%   

Dividend and Growth Class R3

     1.35%         1.35%   

Dividend and Growth Class R4

     1.04%         1.04%   

Dividend and Growth Class R5

     0.74%         0.74%   

Dividend and Growth Class R6

     0.64%         0.64%   

Dividend and Growth Class Y

     0.64%         0.64%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Edward P. Bousa, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Donald J. Kilbride

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Matthew G. Baker

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Dividend and Growth Fund returned 3.88%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the S&P 500 Index, which returned 4.40% for the same period. The Fund outperformed the 3.0% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening

U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

Eight out of ten sectors in the S&P 500 Index rose during the period, with Consumer Discretionary (+12%), Healthcare (+7%), and Information Technology (+6%), performing the best. Energy (-5%) and Utilities (-1%) lagged on a relative basis during the period.

Overall sector allocation, a result of the bottom up stock selection process, detracted from performance relative to the S&P 500 Index during the period, in part due to our underweight to Consumer Discretionary and Information Technology and overweight to

 

 

 

  9  

 


The Hartford Dividend and Growth Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Financials. This was partially offset by our overweight to the Healthcare sector. The Fund’s modest cash position detracted from relative performance in an upward-trending market. Security selection in the Industrials and Information Technology sectors contributed to relative performance, while selection in Energy and Financials detracted.

The Fund’s top detractors from performance relative to the S&P 500 Index included Apple (Information Technology), Amazon.com (Information Technology) and Prudential Financial (Financials). Shares of Apple, a designer, manufacturer, and marketer of mobile communications and media devices, rose after the company posted better-than-expected revenue and an increase in gross margins. Being underweight this benchmark-component stock weighed on relative performance during the period. Shares of Amazon.com, a U.S.-based leader in the online e-commerce industry, outperformed after the company posted better than expected quarterly earnings. Not owning this benchmark-component stock weighed on relative performance during the period. Shares of Prudential Financial, a leading provider of insurance and financial services both in the U.S. and globally, underperformed along with the broader financials sector amid an unfavorable interest rate environment and lackluster earnings sentiment. Top absolute detractors also included Exxon Mobil (Energy), Chevron (Energy), and Johnson & Johnson (Healthcare).

The Fund’s top contributors to performance relative to the S&P 500 Index during the period were Equifax (Industrials), Lowe’s (Consumer Discretionary), and CVS (Consumer Staples). Shares of Equifax, a U.S.-based provider of information solutions and human resources business process outsourcing services, outperformed during the period due to acceleration in growth of all business segments, favorable mortgage market conditions, and the smooth integration of recent acquisitions. Shares of Lowe’s, a retailer engaged in the retail sale of home improvement products, rose due to positive trends in home improvement. Shares of CVS, a U.S.-based retail pharmacy, outperformed after the company reaffirmed five-year growth targets and announced a dividend increase and robust share-repurchase forecast. Top absolute performers also included Apple (Information Technology).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We continue to search for investment ideas that fit with our process and philosophy. We remain focused on the significance of dividends, positive capital stewardship, and franchise value. We believe we have a solid portfolio of undervalued market leaders, stocks in industries with improving supply/demand trends, and solid companies that are temporarily out of favor. At the end of the period, our largest

overweights were to Financials, Industrials, and Healthcare, while we remained underweight consumer Discretionary, Information Technology, and Consumer Staples, relative to the S&P 500 Index.

 

 

 

10

 


The Hartford Equity Income Fund inception 08/28/2003

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks a high level of current income consistent with growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Equity Income A2

     3.53%         7.06%         13.34%         8.55%   

Equity Income A3

     -2.17%         1.17%         12.07%         7.94%   

Equity Income B2

     3.45%         6.91%         12.69%         7.84% 4 

Equity Income B3

     -1.54%         1.91%         12.44%         7.84% 4 

Equity Income C2

     3.19%         6.30%         12.52%         7.78%   

Equity Income C3

     2.19%         5.30%         12.52%         7.78%   

Equity Income I2

     3.67%         7.37%         13.65%         8.81%   

Equity Income R32

     3.36%         6.71%         12.97%         8.34%   

Equity Income R42

     3.56%         7.07%         13.32%         8.62%   

Equity Income R52

     3.70%         7.36%         13.67%         8.91%   

Equity Income R62,5

     3.69%         7.45%         13.77%         9.00%   

Equity Income Y2

     3.68%         7.45%         13.77%         9.00%   

Russell 1000 Value Index

     2.89%         9.31%         13.39%         7.51%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  11  

 


The Hartford Equity Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Equity Income Class A

     1.03%         1.03%   

Equity Income Class B

     1.91%         1.91%   

Equity Income Class C

     1.76%         1.76%   

Equity Income Class I

     0.76%         0.76%   

Equity Income Class R3

     1.37%         1.37%   

Equity Income Class R4

     1.06%         1.06%   

Equity Income Class R5

     0.76%         0.76%   

Equity Income Class R6

     0.66%         0.66%   

Equity Income Class Y

     0.66%         0.66%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

W. Michael Reckmeyer, III, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Karen H. Grimes, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Ian R. Link, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Equity Income Fund returned 3.53%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Russell 1000 Value Index, which returned 2.89% for the same period. The Fund also outperformed the 3.0% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November after positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar

adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

During the period eight out of ten sectors within the Russell 1000 Value Index posted positive absolute returns, with Consumer Discretionary (+11%), Healthcare (+9%), and Industrials (+3%) performing the best. Energy (-6%), Utilities (-1%), and Telecommunication Services (+1%) lagged the index on a relative basis during the period.

Overall, outperformance versus the Russell 1000 Value Index was driven by strong security selection, primarily within the Information

 

 

 

  12  

 


The Hartford Equity Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Technology and Consumer Staples sectors. This more than offset negative stock selection within Healthcare and Utilities. Sector allocation, driven by our bottom-up stock selection process, modestly detracted from relative returns during the period, primarily due to an underweight to Materials and Healthcare.

Top contributors to relative returns included Kraft Foods (Consumer Staples), Analog Devices (Information Technology), and Home Depot (Consumer Discretionary). Shares of Kraft Foods, a U.S.-based food manufacturer and processor, rose on the back of news that Heinz is to take over the U.S. food manufacturer in a deal which will create one of North America’s biggest food companies and bring together some of the biggest household brands in the U.S., ranging from Heinz ketchup to Jell-O desserts. Shares of Analog Devices, a semiconductor company focused on industrial, communications, and automotive end-markets, rose based on strong earnings reports. Shares of Home Depot, a U.S.-based home improvement retailer, rose due to positive trends in home improvement. Top absolute contributors to performance for the period also included Cisco Systems (Information Technology).

Top detractors from relative performance during the period included Suncor Energy (Energy), National Grid (Utilities), and UnitedHealth (Healthcare). Shares of Suncor, a producer of crude oil, primarily from the oil sands in Alberta, Canada, fell due to a massive decline in oil prices. Shares of National Grid, a U.K.-based regulatory utility with attractive U.S. transmission assets, moved lower during the period due to an uptick in interest rates and improved risk sentiment which caused investors to shift capital away from the traditionally defensive utility sector, weighing on the company’s stock price. Shares of UnitedHealth, a U.S.-based health insurance company, rose after the company announced its plans to purchase Catamaran, a pharmacy-benefit manager company. Not owning this benchmark-component stock weighed on relative performance during the period. Top detractors from absolute performance also included Exxon Mobil (Energy), Johnson & Johnson (Healthcare), and Chevron (Energy).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We remain cautiously optimistic as we enter the next period. We remain diligent in applying our process to find quality companies with what we consider to be superior dividend yields, total return potential, and discounted valuations. We believe our portfolio holdings are balanced and well-positioned to weather uncertainty in the markets, which we expect to persist in the coming months.

Our sector positioning did not change significantly during the period. At the end of the period, our largest overweights were to the Information Technology, Industrials, and Telecommunication

Services sectors, while our largest underweights were to the Financials and Consumer Discretionary sectors, relative to the Russell 1000 Value Index.

 

 

 

13

 


The Hartford Growth Opportunities Fund inception 03/31/1963

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Growth Opportunities A2

     10.76%         23.67%         15.88%         10.89%   

Growth Opportunities A3

     4.66%         16.87%         14.57%         10.26%   

Growth Opportunities B2

     10.26%         22.59%         14.95%         10.21% 4 

Growth Opportunities B3

     6.00%         17.85%         14.72%         10.21% 4 

Growth Opportunities C2

     10.39%         22.81%         15.07%         10.10%   

Growth Opportunities C3

     9.54%         21.86%         15.07%         10.10%   

Growth Opportunities I2

     10.90%         23.98%         16.20%         11.20%   

Growth Opportunities R32

     10.59%         23.29%         15.59%         10.74%   

Growth Opportunities R42

     10.74%         23.69%         15.94%         11.04%   

Growth Opportunities R52

     10.90%         24.04%         16.29%         11.30%   

Growth Opportunities R62,5

     10.97%         24.16%         16.39%         11.40%   

Growth Opportunities Y2

     10.96%         24.14%         16.39%         11.40%   

Russell 1000 Growth Index

     6.54%         16.67%         15.49%         9.62%   

Russell 3000 Growth Index

     6.59%         16.50%         15.45%         9.69%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

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. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

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. The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  14  

 


The Hartford Growth Opportunities Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Growth Opportunities Class A

     1.15%         1.15%   

Growth Opportunities Class B

     2.05%         2.07%   

Growth Opportunities Class C

     1.88%         1.88%   

Growth Opportunities Class I

     0.91%         0.91%   

Growth Opportunities Class R3

     1.45%         1.46%   

Growth Opportunities Class R4

     1.15%         1.15%   

Growth Opportunities Class R5

     0.85%         0.85%   

Growth Opportunities Class R6

     0.75%         0.75%   

Growth Opportunities Class Y

     0.75%         0.75%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Michael T. Carmen, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Stephen Mortimer

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Mario E. Abularach, CFA

Senior Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Growth Opportunities Fund returned 10.76%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Russell 3000 Growth Index, which returned 6.59% for the same period. The Fund also outperformed the Russell 1000 Growth Index, which returned 6.54% for the same period. The Fund outperformed the 5.57% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November after positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which

was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

The Russell 3000 Growth Index returned 6.6% over the period. Eight of the ten sectors in the Index rose during the period. Consumer Discretionary (+11%), Information Technology (+8%), and Healthcare (+8%) gained the most while Energy (-4%), Utilities (-1%), and Industrials (+2%) lagged the most on a relative basis over the period.

 

 

 

  15  

 


The Hartford Growth Opportunities Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Strong security selection within Information Technology, Consumer Discretionary, and Healthcare was the primary driver of outperformance relative to the Russell 3000 Growth Index during the period, more than offsetting weak selection within Industrials. Sector allocation, a result of our bottom-up stock selection process, detracted slightly from benchmark-relative performance.

Top contributors to relative performance during the period included Uber Technologies (Information Technology), Netflix (Consumer Discretionary), and Amazon (Consumer Discretionary). Private placement Uber Technologies, an innovative mobile application ridesharing service, was the largest contributor during the period. Uber has been expanding and growing at a rapid pace, penetrating new markets and increasing market share on a global scale. We initiated a position in Uber in 2014 and since that time the company has successfully completed additional rounds of financing at substantially increased valuations. Shares of Netflix, a U.S.-based provider of subscription service for television shows and movies via mail and digital streaming, rose due to improved marketing and content costs from global original content licensing, and expectations for long-term subscriber growth and earnings potential. Shares of Amazon, a U.S.-based leader in the online e-commerce industry, rose on healthy results from the U.S. retail side of the business. Amazon, the premier player in the cloud computing sector, with a broad range of networking services, continues to grow in the U.S. at approximately twice the pace of overall e-commerce with nearly 30% market share. Apple (Information Technology) was a top contributor on an absolute basis.

Top relative detractors from performance during the period included Pioneer (Energy), Alibaba (Information Technology), and Baidu (Information Technology). Shares of Pioneer, a U.S.-based independent oil and gas exploration company, detracted from performance relative to the Russell 3000 Growth Index during the period as the rapid decline in oil prices had a strongly negative impact across energy stocks. Shares of Alibaba, a China-based internet company that facilitates the vast majority of e-commerce in China, underperformed during the period due to worries about the slowing Chinese economy and concerns that Chinese consumers will shift to mobile shopping, curtailing advertising revenue. Shares of China-based internet search provider Baidu underperformed as the company reported 2014 fourth quarter earnings that were lower than consensus estimates. Lower earnings were driven by higher than expected selling, general, and administrative expenses, and issued revenue guidance below expectations. Yelp (Information Technology) and Haliburton (Energy) were also top detractors from absolute performance over the period.

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

The rally in global equity markets, and particularly growth stocks, continued in the first quarter of 2015. We believe equity markets will continue rewarding quality growth-oriented companies that are attractively valued and provide the potential for future growth for the portfolio. We strongly believe that the portfolio is well-positioned for future growth, with major holdings in what we believe are undervalued stocks trading at attractive multiples. We believe many of these holdings have ample room for future acceleration of earnings and that this growth will ultimately be recognized and compensated for in the market.

At the end of the period, the Fund’s largest sector overweights were Healthcare, Information Technology, and Consumer Discretionary, offsetting underweights to Consumer Staples, Energy, and Telecommunication Services sectors.

 

 

 

16

 


The Hartford Healthcare Fund inception 05/01/2000

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Healthcare A2

     11.84%         30.11%         21.78%         13.07%   

Healthcare A3

     5.69%         22.96%         20.41%         12.43%   

Healthcare B2

     11.39%         29.03%         20.77%         12.37% 4 

Healthcare B3

     6.39%         24.03%         20.58%         12.37% 4 

Healthcare C2

     11.46%         29.20%         20.92%         12.27%   

Healthcare C3

     10.46%         28.20%         20.92%         12.27%   

Healthcare I2

     12.00%         30.49%         22.15%         13.39%   

Healthcare R32

     11.68%         29.70%         21.49%         12.92%   

Healthcare R42

     11.84%         30.08%         21.86%         13.24%   

Healthcare R52

     12.01%         30.50%         22.23%         13.53%   

Healthcare Y2

     12.04%         30.59%         22.33%         13.60%   

S&P 500 Index

     4.40%         12.98%         14.33%         8.32%   

S&P North American Health Care Sector Index

     9.38%         28.48%         21.84%         12.20%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

S&P North American Health Care Sector Index is a modified capitalization-weighted index based on United States headquartered health care companies. Stocks in the index are weighted such that each stock is no more than 7.5% of the market capitalization as of the most recent reconstitution date. The companies included in the index must be common stocks and be traded on the NYSE MKT LLC, Nasdaq or the New York Stock Exchange and meet certain established market capitalization levels.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  17  

 


The Hartford Healthcare Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Healthcare Class A

     1.33%         1.33%   

Healthcare Class B

     2.20%         2.20%   

Healthcare Class C

     2.06%         2.06%   

Healthcare Class I

     1.05%         1.05%   

Healthcare Class R3

     1.64%         1.64%   

Healthcare Class R4

     1.34%         1.34%   

Healthcare Class R5

     1.05%         1.05%   

Healthcare Class Y

     0.94%         0.94%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Jean M. Hynes, CFA

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Ann C. Gallo

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Kirk J. Mayer, CFA

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

Robert L. Deresiewicz

Senior Managing Director and Global Industry Analyst

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Healthcare Fund returned 11.84%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the S&P North American Health Care Sector Index, which returned 9.38% for the same period. The Fund also outperformed the S&P 500 Index, which returned 4.40% for the same period. The Fund underperformed the 12.59% average return of the average fund in the Lipper Global 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?

Health care stocks (+9%) outperformed both the broader U.S. market (+4%) and the global equity market (+5%) during the period, as measured by the S&P North American Health Care, S&P 500, and the MSCI World Indices respectively. Within the S&P North American Health Care Index, four of the five sub-sectors posted positive absolute returns. Biopharma mid-cap (+24%), health services (+15%), and medical technology (+8%) led while biopharma large-cap (+5%) and small-cap (0%) lagged the broader health care index.

The Fund outperformed the S&P North American Health Care Sector Index primarily due to positive stock selection, but sector allocation also contributed. Security selection was strongest in small-cap biopharma names and medical technology during the period. Overweight allocations to mid-cap biopharma names and health services as well as an underweight to large-cap biopharma contributed to relative performance. However, an overweight allocation to small-cap biopharma as well as a modest cash position in an upward trending market environment detracted from relative results during the period.

Holdings of Johnson & Johnson (pharma, biotech, & life sciences), TESARO (pharma, biotech, & life sciences) and NPS Pharmaceuticals (pharma, biotech, & life sciences) contributed most to results relative to the S&P North American Health Care Sector Index. Shares of Johnson & Johnson, a U.S.-based multinational medical devices, pharmaceutical and consumer packaged goods manufacturer, underperformed over the time period as strong results in pharmaceuticals were not enough to offset sluggish growth in their consumer and medical device segments. An underweight to the stock

 

 

 

  18  

 


The Hartford Healthcare Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

relative to the S&P North American Health Care Sector Index contributed to relative results. Shares of TESARO, an oncology-focused biopharmaceutical company, outperformed over the last six months due to building enthusiasm around an ovarian cancer drug currently undergoing clinical trials. NPS Pharmaceuticals, a U.S.-based biopharmaceutical company focused on developing therapies to treat orphan diseases, saw its stock soar on takeover rumors at the end of 2014 and was subsequently bought out by Shire, a global specialty biopharmaceutical company. Top contributors to absolute performance during the period also included Actavis (pharma, biotech, & life sciences) and Aetna (health care equipment & services).

Valeant Pharmaceuticals (pharma, biotech, & life sciences), Aerie Pharmaceuticals (pharma, biotech, & life sciences), and Pfizer (pharma, biotech, & life sciences) were the top detractors from performance relative to the S&P North American Health Care Sector Index. Shares of Valeant Pharmaceuticals, a multinational specialty pharmaceutical company, rose on strong fourth quarter results and an announcement the company would acquire Salix Pharmaceuticals, a U.S.-based specialist pharmaceutical company. Not owning the strong performing S&P North American Health Care Sector Index constituent weighed on relative returns. Shares of Aerie Pharmaceuticals, a U.S.-based pharmaceutical company, fell dramatically towards the end of the period on news that the company’s lead experimental eye drug candidate had failed to yield positive results in late-stage clinical trials. Not owning S&P North American Health Care Sector Index component Pfizer hurt relative performance as the U.S.-based pharmaceutical company saw shares rise on news of the company’s acquisition of Hospira, a manufacturer of injectable drugs and infusion technologies. Top detractors from absolute performance during the period also included Gilead Sciences (pharma, biotech, & life) and Regulus Therapeutics (pharma, biotech, & life).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We believe that there continue to be pockets of opportunity in biotech, but after a multi-year run of outstanding performance, near term prospects for the subsector appear to be mixed. We remain vigilant about short-term risk in the subsector and continue to seek what we consider to be attractively-valued mature companies with strong revenue growth, as well as the smaller companies with the most promising pipelines. Our bullish view of biomedical innovation is unchanged and, on that basis, so is our view of the long-term prospects for biotech.

We also remain optimistic about the broad outlook for the Healthcare sector. We believe that biomedical innovation is as robust as it has ever been and should fuel a decade or more of strong earnings growth for the most successful biopharmaceutical companies.

Evolving structures of healthcare markets globally may create clear performance separation between the best and the worst health care services companies. We believe that our approach of evaluating secular themes across a long time horizon will enable us to capitalize on these trends. As is our practice, we will aim to trim stocks on strength and to add on weakness in order to seek to generate favorable returns while minimizing risk.

 

 

 

19

 


The Hartford MidCap Fund inception 12/31/1997

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

MidCap A2

     6.38%         12.68%         14.14%         10.80%   

MidCap A3

     0.53%         6.48%         12.86%         10.17%   

MidCap B2

     5.91%         11.74%         13.16%         10.09% 4 

MidCap B3

     1.27%         6.85%         12.91%         10.09% 4 

MidCap C2

     6.00%         11.90%         13.34%         10.04%   

MidCap C3

     5.07%         10.92%         13.34%         10.04%   

MidCap I2

     6.48%         12.99%         14.43%         10.99%   

MidCap R32

     6.21%         12.35%         13.82%         10.83%   

MidCap R42

     6.40%         12.69%         14.18%         11.03%   

MidCap R52

     6.53%         13.03%         14.52%         11.23%   

MidCap R62,5

     6.60%         13.18%         14.64%         11.30%   

MidCap Y2

     6.57%         13.15%         14.64%         11.30%   

S&P MidCap 400 Index

     6.53%         12.28%         14.41%         10.59%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 2/27/09. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 5/29/09. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

S&P MidCap 400 Index is an unmanaged index of common stocks of companies chosen by S&P designed to represent price movements in the mid-cap U.S. equity market.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  20  

 


The Hartford MidCap Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

MidCap Class A

     1.15%         1.15%   

MidCap Class B

     2.05%         2.05%   

MidCap Class C

     1.88%         1.88%   

MidCap Class I

     0.90%         0.90%   

MidCap Class R3

     1.47%         1.47%   

MidCap Class R4

     1.16%         1.16%   

MidCap Class R5

     0.86%         0.86%   

MidCap Class R6

     0.76%         0.76%   

MidCap Class Y

     0.76%         0.76%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Philip W. Ruedi, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Mark A. Whitaker, CFA

Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford MidCap Fund returned 6.38%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the S&P MidCap 400 Index, which returned 6.53% for the same period. The Fund also underperformed the 6.62% average return of the Lipper Mid-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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The

market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s (Fed) hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns also varied noticeably by market-cap, as mid-cap stocks (+7%) and small-cap stocks (+5%) outperformed large-cap stocks (+4%), as measured by the S&P MidCap 400, Russell 2000, and S&P 500 Indices, respectively. Within the S&P MidCap 400 Index, eight of the ten sectors posted positive returns. The Healthcare (+17%), Information Technology (+11%), and Consumer Staples, (+10%) sectors performed best while Energy (-10%) and Utilities (-2%) lagged.

The Fund underperformed the S&P MidCap 400 Index during the period primarily as a result of weak security selection. Stock selection was weakest in the Consumer Discretionary and Information Technology sectors, which more than offset positive stock selection in Industrials and Financials. Sector allocation, a result of our bottom up stock selection process, contributed to performance during the period due primarily to an overweight to the Healthcare and underweight to the Utilities sectors. Our overweight to Energy and Industrials detracted on a relative basis.

 

 

 

  21  

 


The Hartford MidCap Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Top relative detractors included Yelp (Information Technology), Skyworks Solutions (Information Technology), and HomeAway (Information Technology). Shares of Yelp, a web-based consumer review business, underperformed due to concerns about slowing growth. Skyworks Solutions, a U.S.-based semiconductor supplier with products sold to manufacturers of smart phones and other mobile devices, rose due to the success of the iPhone 6. Not owning this S&P MidCap 400 Index component stock weighed on relative performance during the period. Shares of HomeAway, an online vacation home rental service, declined during the period after management reduced earnings guidance. Top absolute detractors included Apollo Education (Consumer Discretionary).

Top contributors to performance relative to the S&P MidCap 400 Index included Equifax (Industrials), Incyte (Healthcare), and Monster Beverage (Consumer Staples). Shares of Equifax, a U.S.-based credit rating agency, outperformed during the period due to acceleration in growth of all business segments, favorable mortgage market conditions, and the smooth integration of recent acquisitions. Incyte is a drug developer company focused on the treatment of cancers, myelofibrosis, and inflammation. Shares rose on continuing positive news in the field of immuno-oncology, an approach that helps the body’s immune system to target tumors. Shares of Monster Beverage, a U.S.-based maker of energy drinks, outperformed as the company reported fourth quarter earnings that significantly exceeded consensus expectations, driven by higher than expected net revenue growth. Top absolute contributors for the period included Genpact (Information Technology) and Vantiv (Information Technology).

Derivatives were not used in this Fund and did not have an impact on performance during the period.

What is the outlook?

We believe the Fund is well positioned for the current market environment. We ended the period overweight Healthcare, including an allocation to market leading biotech companies and, increasingly, to medical device and service providers. We were modestly overweight Information Technology and Industrials, and we continued to have a small overweight in Energy stocks with what we consider to be strong balance sheets and competitively advantaged assets. Our largest underweight was to the Financials sector, where we continue to believe REITs are fundamentally less attractive than other opportunities.

 

 

 

22

 


The Hartford MidCap Value Fund inception 04/30/2001

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

MidCap Value A2

     6.20%         8.94%         13.49%         9.66%   

MidCap Value A3

     0.36%         2.95%         12.21%         9.04%   

MidCap Value B2

     5.69%         8.01%         12.61%         9.02% 4 

MidCap Value B3

     1.09%         3.31%         12.36%         9.02% 4 

MidCap Value C2

     5.79%         8.12%         12.68%         8.85%   

MidCap Value C3

     4.87%         7.18%         12.68%         8.85%   

MidCap Value I2

     6.34%         9.33%         13.90%         9.85%   

MidCap Value R32

     5.97%         8.58%         13.24%         9.77%   

MidCap Value R42

     6.16%         8.95%         13.59%         9.94%   

MidCap Value R52

     6.37%         9.33%         13.92%         10.10%   

MidCap Value Y2

     6.41%         9.36%         14.01%         10.14%   

Russell 2500 Value Index

     3.14%         6.28%         12.46%         8.72%   

Russell MidCap Value Index

     3.84%         9.97%         14.57%         9.77%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/28/10. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 5/28/10. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses.

Russell 2500 Value Index is an unmanaged index that measures the performance of those Russell 2500 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500 Index is an unmanaged index that measures the performance of the 2,500 smallest U.S. companies based on total market capitalization.

Russell MidCap Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell MidCap Index companies with lower price-to-book ratios and lower forecasted growth values.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  23  

 


The Hartford MidCap Value Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

MidCap Value Class A

     1.27%         1.27%   

MidCap Value Class B

     2.10%         2.28%   

MidCap Value Class C

     1.99%         1.99%   

MidCap Value Class I

     0.92%         0.92%   

MidCap Value Class R3

     1.53%         1.53%   

MidCap Value Class R4

     1.22%         1.22%   

MidCap Value Class R5

     0.93%         0.93%   

MidCap Value Class Y

     0.82%         0.82%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

James N. Mordy

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford MidCap Value Fund returned 6.20%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmarks, the Russell 2500 Value Index and the Russell MidCap Value Index, which returned 3.14% and 3.84%, respectively, for the same period. The Fund also outperformed the 5.45% average return of the Lipper Mid-Cap Core Fund peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites

increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s (Fed) hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains.

Returns varied noticeably by market-cap during the period, mid-cap equities (+7%) outperformed small-caps (+5%) and large-caps (+4%) as represented by the S&P MidCap 400 MidCap, Russell 2000, and S&P 500 indices, respectively. Returns also varied by style, with the Russell 2500 Value underperforming both the Russell 2500 Growth and the broader Russell 2500 Index. Seven of the ten sectors in the Russell 2500 Value Index gained during the period, with Healthcare (+13%), Consumer Staples (+9%), and Consumer Discretionary (+8%) performing the best. Energy (-14%) and Materials (-1%) lagged during the period.

The Fund’s outperformance relative to the Russell 2500 Value Index was driven primarily by strong security selection within Information Technology, Consumer Discretionary, and Energy, which more than offset unfavorable stock selection within Utilities and Consumer Staples. Overall sector allocation, a result of the stock selection process, contributed to relative returns, in part due to an overweight allocation to Healthcare and an underweight allocation to Utilities.

Top contributors to both absolute returns and returns relative to the Russell 2500 Value Index included NXP Semiconductors (Information Technology), Microsemi (Information Technology), and Diamondback Energy (Energy). The share price of Netherlands-based semiconductor company NXP Semiconductors moved higher following the announcement of a merger with semiconductor

 

 

 

  24  

 


The Hartford MidCap Value Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

company Freescale, which would make the combined company one of the largest firms in the industry. Shares of Microsemi, a U.S.-based analog and mixed signal semiconductor manufacturer, rose during the period after the firm introduced its second generation highly secure 64 gigabyte solid state drive. Shares of Diamondback Energy, an oil and natural gas company focused on the Permian Basin, rose during the period. The company bolstered its already-strong balance sheet in January with an equity raise that expanded the common share count by over 3%.

Top detractors from absolute returns and returns relative to the Russell 2500 Value Index included Trican Well Services (Energy), Wesco International (Industrials), and Moog (Industrials). Shares of Trican Well Services, a North American supplier of pressure pumping services to the oil and gas industry, fell during the period. Prospects for 2015 have eroded much more quickly than we envisioned, and it now appears the company will have to sell assets to provide some cushion against debt covenants. Shares of Wesco International, a distributor of industrial cabling, electrical, and lighting products, fell after the company reported lackluster earnings results and downward guidance revisions due to low oil prices and the strengthening U.S. dollar. Shares of Moog, a manufacturer of precision motion control products and systems for a broad range of applications in the aerospace, defense and industrial markets, fell due to soft revenue and slower-than-expected growth.

Derivatives were not used in the Fund and did not have a material impact on performance during the period.

What is the outlook?

U.S. economic growth thus far in 2015 has been below trend, with a strengthening U.S. Dollar adversely affecting exports and making future growth difficult and disruptions from cold weather and the west coast port strike. The U.S. consumer appears to be in a strong position, but hasn’t spent as much of the oil price windfall as most expected. We still believe Gross Domestic Product (GDP) growth rate is around 3%, and that the Fed will raise interest rates later this year, but the weak March jobs report and currently negative year-on-year inflation reading appear to significantly reduce the odds of a June move. With quantitative easing stimulus now in place in Europe, the likelihood of policy divergence has been reflected in the currency markets. The Fed will have to carefully consider the risks of further dollar strength. Our macroeconomics group has increased their forecast for European growth to this year. We believe that significant uncertainties remain in China, Russia, Brazil and the other emerging markets. We are slightly more overweight the cyclical sectors than we were at the beginning of the year. In a more uncertain environment, with valuations less attractive in our view than in recent years, we look for continued volatility in the equity markets. This should give us the chance to try to take advantage of opportunities to buy what we consider to be good, well-managed companies at temporarily depressed valuations. At the end of the period, our overweight allocations relative to the Russell 2500 Value

Index were in Materials, Consumer Discretionary, and Information Technology, while our greatest underweights continued to be in Financials and Utilities.

 

 

 

25

 


The Hartford Small Company Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Small Company A2

     3.51%         12.88%         13.71%         10.21%   

Small Company A3

     -2.18%         6.67%         12.43%         9.59%   

Small Company B2

     3.13%         12.03%         12.85%         9.61% 4 

Small Company B3

     -0.96%         7.58%         12.60%         9.61% 4 

Small Company C2

     3.14%         12.06%         12.90%         9.41%   

Small Company C3

     2.32%         11.17%         12.90%         9.41%   

Small Company I2

     3.63%         13.17%         14.01%         10.46%   

Small Company R32

     3.40%         12.62%         13.51%         10.10%   

Small Company R42

     3.54%         12.96%         13.86%         10.39%   

Small Company R52

     3.72%         13.33%         14.19%         10.65%   

Small Company R62,5

     3.79%         13.47%         14.31%         10.76%   

Small Company Y2

     3.75%         13.42%         14.30%         10.76%   

Russell 2000 Growth Index

     7.25%         14.65%         14.94%         10.41%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of July 21, 2010, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

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. The Russell 2000 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, NYSE MKT LLC and Nasdaq.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  26  

 


The Hartford Small Company Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Small Company Class A

     1.34%         1.34%   

Small Company Class B

     2.15%         2.29%   

Small Company Class C

     2.05%         2.05%   

Small Company Class I

     1.10%         1.10%   

Small Company Class R3

     1.55%         1.55%   

Small Company Class R4

     1.25%         1.25%   

Small Company Class R5

     0.95%         0.97%   

Small Company Class R6

     0.85%         0.85%   

Small Company Class Y

     0.85%         0.85%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Steven C. Angeli, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Stephen Mortimer

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Mario E. Abularach, CFA

Senior Managing Director and Equity Research Analyst

Wellington Management Company LLP

Mammen Chally, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Jamie A. Rome, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Small Company Fund returned 3.51%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned 7.25% for the same period. The Fund also underperformed the 5.85% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took

control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the

 

 

 

  27  

 


The Hartford Small Company Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains.

Large cap stocks (+4%) underperformed both small cap stocks (+5%) and mid cap stocks (+7%) during the period, as measured by the S&P 500, Russell 2000, and S&P MidCap 400 indices respectively. Small cap growth (+7%) stocks outperformed small cap value (+2%) stocks during the period, as measured by the Russell 2000 Growth and Russell 2000 Value indices. Seven out of ten sectors in the Russell 2000 Growth Index had positive returns during the period. The Healthcare (+14%), Utilities (+13%), and Information Technology (+11%) sectors performed best, while Energy (-10%), Consumer Staples (-2%), and Materials (-1%) lagged the broader index.

During the period, security selection was the primary driver of the Fund’s underperformance relative to the Russell 2000 Growth Index. Selection was weakest in the Information Technology and Healthcare sectors, which more than offset positive relative results from stronger selection in the Energy and Materials sectors. Sector allocation, which is the result of bottom-up stock selection, also detracted from relative returns; an underweight to Consumer Staples contributed to relative results but was offset by an underweight to Healthcare and overweight to Industrials, which had a negative impact on relative results.

Top detractors from relative and absolute performance during the period included Mobileye (Information Technology), zulily (Consumer Discretionary), and Vince Holding (Consumer Discretionary). Shares of Mobileye, maker of an Advanced Driver Assistance System that makes cars safer and easier to drive, came under pressure in late 2014 due to concerns about competitive pressure. Online flash sale company zulily saw its shares fall as the company continued to post disappointing results stemming from marketing mis-execution and broader distribution issues. Vince Holding, an apparel vendor primarily focused on high-end department stores, saw shares fall as comparable growth in retail stores was below consensus estimates, which disappointed investors despite strong earnings results overall.

Top contributors to performance relative to the Russell 2000 Growth Index during the period included Freescale Semiconductor (Information Technology), TESARO (Healthcare), and Anacor Pharmaceuticals (Healthcare). Shares of Freescale Semiconductor, a provider of microcontrollers and digital networking processors, rose during the period following an announcement that NXP Semiconductors would acquire the business at a meaningful premium. Shares of TESARO, an oncology-focused biopharmaceutical company, outperformed due to improving expectations regarding the timeline for ongoing clinical trials. Shares of Anacor Pharmaceuticals, a biopharmaceutical company, climbed

after the company announced strong quarterly results well above Wall Street forecasts. Top absolute contributors also included DexCom (Healthcare) and NPS Pharmaceuticals (Healthcare).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We continue to maintain a cautiously optimistic view of the equity market. Although the pace of industrial growth appears to have slowed in the U.S. during recent months, it appears much of this slack is now being picked up by the consumer as a result of lower unemployment, and the implicit impact of energy price reductions. Appreciation of the U.S. dollar could remain a barrier to growth over the coming year, though small cap stocks historically haven’t had significant currency exposure, such that this would directly impact our investment universe. Though we believe some areas of the market, such as biotech, do look somewhat overbought today, we continue to find what we consider to be compelling investment opportunities across our investment universe.

We view a balanced portfolio as a means to hedge against risk associated with unpredictable events and economic outcomes. The Fund ended the period overweight in the Industrials and Information Technology sectors relative to the Russell 2000 Growth Index. The Fund ended the period most underweight Healthcare and Consumer Staples.

 

 

 

28

 


The Hartford Small/Mid Cap Equity Fund inception 01/01/2005

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Small/Mid Cap Equity A2

     4.44%         7.45%         13.23%         8.36%   

Small/Mid Cap Equity A3

     -1.31%         1.54%         11.95%         7.75%   

Small/Mid Cap Equity B2

     4.09%         6.70%         12.37%         7.84% 4 

Small/Mid Cap Equity B3

     -0.59%         1.89%         12.12%         7.84% 4 

Small/Mid Cap Equity C2

     4.07%         6.62%         12.36%         7.60%   

Small/Mid Cap Equity C3

     3.13%         5.66%         12.36%         7.60%   

Small/Mid Cap Equity I2,5

     4.52%         7.54%         13.24%         8.37%   

Small/Mid Cap Equity R32

     4.39%         7.26%         13.21%         8.57%   

Small/Mid Cap Equity R42

     4.55%         7.57%         13.44%         8.68%   

Small/Mid Cap Equity R52

     4.68%         7.84%         13.69%         8.80%   

Small/Mid Cap Equity Y2

     4.73%         7.98%         13.71%         8.81%   

Russell 2500 Index

     5.64%         10.70%         14.01%         9.93%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 03/31/2015. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class R3, R4 and R5 shares commenced operations on 9/30/11. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class I shares commenced operations on 03/31/15. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Includes the Fund’s performance when it invested, prior to 2/1/10, at least 80% of its assets in common stocks of mid-capitalization companies.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of June 4, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Russell 2500 Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000 Index and includes approximately 2500 of the smallest securities based on a combination of their market capitalization and current index membership.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  29  

 


The Hartford Small/Mid Cap Equity Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Small/Mid Cap Equity Class A

     1.30%         1.41%   

Small/Mid Cap Equity Class B

     2.05%         2.32%   

Small/Mid Cap Equity Class C

     2.05%         2.16%   

Small/Mid Cap Equity Class I

     1.05%         1.10%   

Small/Mid Cap Equity Class R3

     1.50%         1.70%   

Small/Mid Cap Equity Class R4

     1.20%         1.37%   

Small/Mid Cap Equity Class R5

     0.90%         1.05%   

Small/Mid Cap Equity Class Y

     0.85%         0.96%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

David J. Elliott, CFA

Managing Director, Co-Director, Quantitative Investments and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Small/Mid Cap Equity Fund returned 4.44%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Russell 2500 Index, which returned 5.64% for the same period. The Fund outperformed the 3.93% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the

U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

Seven of the ten sectors in the Russell 2500 Index posted positive returns during the period. Strong performers included the Healthcare (+15%), Consumer Discretionary (+10%), and Information Technology (+9%) sectors, while the Energy (-13%), Telecommunications Services (-1%), and Utilities (0%) sectors lagged on an absolute and relative basis.

Security selection drove underperformance relative to the Russell 2500 Index. Weak selection in Materials, Financials, and Healthcare offset stronger stock selection in the Industrials, Information Technology, and Utilities sectors. Overall sector allocation, a fallout of our bottom-up stock selection process, also modestly detracted from returns relative to the Russell 2500 Index during the period due to underweights in the Healthcare, Utilities, and Materials sectors. The Fund’s modest cash position detracted from relative performance in an upward-trending market.

The largest detractors from performance relative to the Russell 2500 Index -relative and absolute performance were VAALCO (Energy), Century Aluminum (Materials), and Sonus Networks (Information Technology). Shares of VAALCO, an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas, underperformed due to news that its well off the shore of Angola was holding water and being plugged for the time being. Additionally, repercussions from an

 

 

 

  30  

 


The Hartford Small/Mid Cap Equity Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

impairment charge as a result of write-down of the fair value of two platforms off the coast of Gabon at the end of 2014 still rippled through the first quarter of 2015, driving an approximately 30% decline in stock value. Shares of Century Aluminum, a U.S.-based holding company engaged in the production of primary aluminum, underperformed due to weakness in aluminum prices (which are under pressure by the strong U.S. dollar) and declining premiums in North America and Europe since the beginning of 2015 driven by weak aluminum prices and Chinese oversupply. Century is also facing operation and labor-related challenges at several smelting facilities. Shares of Sonus Networks, a U.S.-based provider of networked solutions for telecommunications, wireless and cable service providers, underperformed over the period. Sonus preannounced weaker than expected results for the first quarter of 2015 and lowered guidance for 2015 results. The company pointed to orders it no longer expects to receive at the end of the quarter as the reason for the missed results and lowered guidance.

The largest contributors to performance relative to the Russell 2500 Index during the period were Anacor Pharmaceuticals (Healthcare), Alaska Air Group (Industrials), and WABCO Holdings (Industrials). Anacor Pharmaceuticals is a U.S.-based biopharmaceutical company focused on discovering, developing and commercializing small-molecule therapeutics derived from its boron chemistry platform. Shares of Anacor outperformed based on favorable reaction to increased profits and revenues that beat the market’s expectations in the first quarter of 2015. Anacor also narrowed losses and continues to focus on its boron platform product pipeline. Shares of Alaska Air Group, the holding company of Alaska Airlines, Inc. which operates a network of regional air carriers throughout the U.S., Canada and Mexico, outperformed over the period due to expected positive impact from route expansion across the U.S. and Mexico. Shares of WABCO Holdings, a U.S.-based commercial truck parts manufacturer, outperformed as the company issued solid outlook for 2015, and is benefiting from a recovery in the European truck market. Skyworks Solutions (Information Technology) was also a top absolute contributor over the period.

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

The Fund seeks to add value by utilizing Wellington Management’s proprietary quantitative research and investment tools in a highly disciplined framework. The Fund focuses on stock selection as the key driver of returns and uses quantitative portfolio optimization techniques to seek to minimize unintended and uncompensated risks. Based on individual stock decisions, the Fund ended the period most overweight the Consumer Discretionary, Information Technology, and Energy sectors and most underweight the Consumer Staples, Materials, and Financials sectors relative to the Russell 2500 Index.

 

 

 

31

 


The Hartford SmallCap Growth Fund inception 01/04/1988

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

SmallCap Growth A2

     8.26%         13.83%         17.06%         9.61%   

SmallCap Growth A3

     2.30%         7.57%         15.74%         8.99%   

SmallCap Growth B2

     7.77%         12.89%         16.16%         9.02% 4 

SmallCap Growth B3

     2.77%         7.89%         15.94%         9.02% 4 

SmallCap Growth C2

     7.87%         13.04%         16.21%         8.77%   

SmallCap Growth C3

     6.87%         12.04%         16.21%         8.77%   

SmallCap Growth I2

     8.43%         14.20%         17.42%         9.81%   

SmallCap Growth R32

     8.09%         13.52%         16.80%         9.44%   

SmallCap Growth R42

     8.28%         13.89%         17.16%         9.69%   

SmallCap Growth R52

     8.43%         14.24%         17.51%         9.96%   

SmallCap Growth R62,5

     8.51%         14.37%         17.63%         10.04%   

SmallCap Growth Y2

     8.49%         14.35%         17.62%         10.03%   

Russell 2000 Growth Index

     7.25%         14.65%         14.94%         10.41%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of July 21, 2010, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

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. The Russell 2000 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, NYSE MKT LLC and Nasdaq.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  32  

 


The Hartford SmallCap Growth Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

SmallCap Growth Class A

     1.28%         1.28%   

SmallCap Growth Class B

     2.11%         2.26%   

SmallCap Growth Class C

     1.97%         1.97%   

SmallCap Growth Class I

     0.97%         0.97%   

SmallCap Growth Class R3

     1.53%         1.53%   

SmallCap Growth Class R4

     1.22%         1.22%   

SmallCap Growth Class R5

     0.91%         0.91%   

SmallCap Growth Class R6

     0.81%         0.81%   

SmallCap Growth Class Y

     0.81%         0.81%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Mammen Chally, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

David J. Elliott, CFA

Managing Director, Co-Director, Quantitative Investments and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford SmallCap Growth Fund returned 8.26%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned 7.25% for the same period. The Fund outperformed the 5.85% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in

early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains.

Large cap stocks (+4%) underperformed both small cap stocks (+5%) and mid cap stocks (+7%) during the period, as measured by the S&P 500, Russell 2000, and S&P MidCap 400 indices respectively. Small cap growth (+7%) stocks outperformed small cap value (+2%) stocks during the period, as measured by the Russell 2000 Growth and Russell 2000 Value indices. Seven out of ten sectors in the Russell 2000 Growth Index had positive returns during the period. The Healthcare (+14%), Utilities (+13%), and Information Technology (+11%) sectors performed best, while Energy (-10%), Consumer Staples (-2%), and Materials (-1%) lagged the broader index.

Security selection was the primary driver of outperformance relative to the Russell 2000 Growth Index during the period. Positive security selection within Information Technology, Industrials, and Materials more than offset negative selection within the Healthcare and Consumer Discretionary sectors. Sector allocation, driven by our bottom-up stock selection, detracted from relative returns during the

 

 

 

  33  

 


The Hartford SmallCap Growth Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

period. Negative results from being underweight Healthcare and overweight Consumer Staples were partially offset by our underweight in the Energy sector during the period. A modest cash position detracted in an upward trending market environment.

The top contributors to performance relative to the Russell 2000 Growth Index were Anacor Pharmaceuticals (Healthcare), Hyperion Therapeutics (Healthcare), and DexCom (Healthcare). Shares of Anacor Pharmaceuticals, a biopharmaceutical company, climbed after the company announced strong quarterly results well above Wall Street forecasts. Hyperion Therapeutics focuses on the development and commercialization of therapeutics to treat disorders in the areas of orphan diseases and hepatology. The company saw its shares rise after the announcement of strong quarterly earnings that beat analysts’ estimates and the completion of a phase III clinical trial for one of its drugs. Medical device company DexCom outperformed on positive news flow, including management changes, positive revenue guidance, and FDA approval of a glucose monitoring system. Top absolute contributors to performance for the period also included NPS Pharmaceuticals (Healthcare).

The top detractors from performance relative to the Russell 2000 Growth Index included Vince Holding (Consumer Discretionary), Sonus Networks (Information Technology), and zulily (Consumer Discretionary). Vince Holding is an apparel vendor primarily focused on high-end department stores. The company’s shares fell after comparable growth in retail stores was below consensus estimates, which disappointed investors despite strong overall earnings results. Shares of Sonus Networks, a provider of networked solutions for telecommunications, wireless and cable service providers, fell after the announcement of poor first quarter 2015 results. In addition, management lowered guidance for 2015 results. Online flash sale company zulily saw its shares fall as the company continued to post disappointing results stemming from marketing mis-execution and broader distribution issues. Top absolute detractors from performance for the period also included Puma Biotechnology (Healthcare).

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We believe we are still in a period of moderate global economic growth. First quarter U.S. Gross Domestic Product (GDP) growth will likely be tepid due to several factors making growth difficult, including weather, the strong dollar, and declining energy investment. However, the U.S. consumer is a key beneficiary of low oil prices and a strong U.S. dollar. We observed the savings rate rise recently so it appears that the consumer is thus far saving a large portion of the energy windfall. But, if historical behavior prevails, we believe that this will change and consumers will start to increase spending later in the year. Employment growth continues to track positively, which should also help support consumer confidence and spending. The

U.S. housing market still looks constructive and should be an important growth driver for the economy going forward. Housing starts and residential investment as a percentage of GDP remain well below historical averages; trends we believe should continue to revert toward the mean. Overall, slow and steady growth in the U.S. is still our baseline expectation.

Overall, we continue to find what we consider to be attractively valued stocks with the characteristics we seek. We are cautiously optimistic about the outlook for the U.S. economy and for equity markets, and we continue to monitor policy decisions and economic trends that may impact our holdings. At the end of the period, our largest overweights were to Materials and Consumer Staples while our largest underweights were to the Healthcare and Telecommunication Services sectors, relative to the Russell 2000 Growth Index.

 

 

 

34

 


The Hartford Value Opportunities Fund inception 01/02/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Value Opportunities A2

     5.26%         6.99%         12.46%         7.41%   

Value Opportunities A3

     -0.53%         1.10%         11.19%         6.80%   

Value Opportunities B2

     4.86%         6.20%         11.63%         6.85% 4 

Value Opportunities B3

     0.03%         1.31%         11.37%         6.85% 4 

Value Opportunities C2

     4.88%         6.23%         11.64%         6.61%   

Value Opportunities C3

     3.92%         5.26%         11.64%         6.61%   

Value Opportunities I2

     5.45%         7.36%         12.82%         7.67%   

Value Opportunities R32

     5.14%         6.70%         12.21%         7.22%   

Value Opportunities R42

     5.33%         7.03%         12.57%         7.50%   

Value Opportunities R52

     5.44%         7.34%         12.90%         7.77%   

Value Opportunities Y2

     5.48%         7.42%         12.92%         7.83%   

Russell 1000 Value Index

     2.89%         9.31%         13.39%         7.51%   

Russell 3000 Value Index

     2.82%         8.96%         13.15%         7.54%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.

Russell 3000 Value Index is an unmanaged index that measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  35  

 


The Hartford Value Opportunities Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Value Opportunities Class A

     1.24%         1.24%   

Value Opportunities Class B

     2.10%         2.26%   

Value Opportunities Class C

     1.94%         1.94%   

Value Opportunities Class I

     0.86%         0.86%   

Value Opportunities Class R3

     1.52%         1.52%   

Value Opportunities Class R4

     1.20%         1.20%   

Value Opportunities Class R5

     0.87%         0.87%   

Value Opportunities Class Y

     0.82%         0.82%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

David W. Palmer, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

James N. Mordy

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Value Opportunities Fund returned 5.26%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Russell 3000 Value Index, which returned 2.82% for the same period. The Fund outperformed the Russell 1000 Value Index, which returned 2.89% for the same period. The Fund also outperformed the 3.46% average return of 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?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strong with stocks rallying in early November after positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments.

Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains. Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks.

Eight of ten sectors within the Russell 3000 Value Index posted positive returns during the period. Consumer Discretionary (+10%), Healthcare (+9%), and Industrials (+3%) were top performers while Energy (-6%), Utilities (-1%), and Telecommunication Services (+1%) lagged on a relative basis.

Security selection was the primary driver of the Fund’s relative outperformance. Security selection was strongest within Information Technology, Financials and Healthcare, but this was partially offset by weaker selection in Consumer Discretionary and Materials. Sector allocation, a result of the bottom-up stock selection process, also contributed to relative returns due primarily to an underweight to Utilities and an overweight to Consumer Discretionary.

 

 

 

  36  

 


The Hartford Value Opportunities Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

The largest contributors to relative performance were TESARO (Healthcare), Exxon Mobil (Energy), and Mylan (Healthcare). Shares of TESARO, an oncology-focused biopharmaceutical company, outperformed due to improving expectations regarding the timeline for ongoing clinical trials. Exxon Mobil, one of the world’s largest integrated oil and gas companies, saw shares underperform as negative sentiment loomed over energy stocks as oil prices tumbled early in the period; not holding this Russell 3000 Value Index constituent contributed to relative performance. Generic and specialty pharmaceutical company Mylan saw shares rise after the company rejected a takeover bid by a competitor. Top contributors on an absolute basis also included Cisco (Information Technology).

The largest detractors from both absolute and relative performance included Vera Bradley (Consumer Discretionary), Trican Well Services (Energy), and National Oilwell Varco (Energy). Shares of Vera Bradley, a U.S.-based designer of handbags and accessories, declined after the company announced weaker-than-expected fourth-quarter results. Shares of Trican Well Services, supplier of pressure pumping services to the oil and gas industry, declined along with the broader energy sector despite beating consensus earnings and revenue estimates. Drilling rig equipment and services provider National Oilwell Varco underperformed, as customers cut back orders, and Wall Street analysts started to discount the ultimate deliverability of the company’s extensive business backlog.

Derivatives are not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

Commodities continued to be pressured by dollar strength and near-term oversupply, although in some cases we started to see a decoupling of producer equities from the spot prices of crude and other products. Emerging market demand indicators remain relatively soft; however, it is the opinion of Wellington’s macroeconomics group that recovery is finally underway in the Euro area – the team has revised its Euro area 2015 Gross Domestic Product (GDP) growth assumption to 1.7% from 1.2% back in January – and that Japan is starting to benefit from improved currency competitiveness and lower fuel prices, with rising real wages likely to help consumer sentiment. A broadening out of economic growth beyond the U.S. could help portfolio performance in various ways, including slowing the rate of ascent of the dollar, boosting interest rate assumptions for financials, particularly insurers, and improving sentiment around some of the portfolio’s pro-cyclical holdings.

In aggregate, the overall portfolio factor exposures are consistent with their historical ranges since inception, and we continue to find what we consider to be attractively priced equities without assuming what we believe to be uncompensated risks. At the end of the period, the Fund was most overweight Materials, Energy, and Financials and most underweight Consumer Staples, Healthcare, and Utilities relative to the Russell 3000 Value Index.

 

 

 

37

 


The Hartford Capital Appreciation Fund

 

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     15.4

Consumer Staples

     4.6   

Energy

     4.8   

Financials

     15.3   

Health Care

     19.4   

Industrials

     10.2   

Information Technology

     23.1   

Materials

     3.5   

Telecommunication Services

     0.4   

Utilities

     1.1   
  

 

 

 

Total

     97.8
  

 

 

 

Short-Term Investments

     2.5

Other Assets & Liabilities

     (0.3
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

38

 


The Hartford Capital Appreciation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8%  
      Automobiles & Components - 2.5%  
  1,048,680     

Delphi Automotive plc

  $ 87,040,440   
  689,172     

Fiat Chrysler Automobiles N.V.(1)

    10,262,754   
  4,914,487     

Goodyear Tire & Rubber Co.

    139,399,424   
  429,150     

Harley-Davidson, Inc.

    24,122,521   
  383,000     

Honda Motor Co., Ltd.

    12,840,213   
  176,700     

Thor Industries, Inc.

    10,632,039   
  23,400     

Winnebago Industries, Inc.

    484,614   
   

 

 

 
      284,782,005   
   

 

 

 
      Banks - 5.1%  
  7,816,562     

Axis Bank Ltd.

    69,776,685   
  3,623,132     

Bank of Ireland(1)

    1,400,607   
  138,672     

BNP Paribas S.A.

    8,757,313   
  1,070,973     

Citigroup, Inc.

    57,104,280   
  123,911     

Grupo Financiero Galicia S.A. ADR

    2,730,999   
  3,612,938     

ICICI Bank Ltd.

    18,875,232   
  62,210     

ICICI Bank Ltd. ADR

    679,955   
  3,086,554     

JP Morgan Chase & Co.

    195,255,406   
  118,254     

M&T Bank Corp.

    14,151,456   
  44,404,300     

Mizuho Financial Group, Inc.

    84,647,012   
  826,298     

PNC Financial Services Group, Inc.

    75,796,316   
  81,400     

South State Corp.

    5,512,408   
  250,200     

Sumitomo Mitsui Financial Group, Inc.

    10,924,880   
  562,411     

Wells Fargo & Co.

    30,988,846   
   

 

 

 
      576,601,395   
   

 

 

 
      Capital Goods - 5.5%  
  95,504     

3M Co.

    14,935,871   
  44,537     

Acuity Brands, Inc.

    7,435,452   
  2,676,365     

AECOM(1)

    84,466,079   
  165,136     

Airbus Group N.V.

    11,444,271   
  153,939     

Assa Abloy AB Class B

    8,930,584   
  134,949     

Danaher Corp.

    11,049,624   
  309,461     

DigitalGlobe, Inc.(1)

    9,955,360   
  482,427     

Eaton Corp. plc

    33,157,208   
  185,478     

Fortune Brands Home & Security, Inc.

    8,272,319   
  150,178     

Generac Holdings, Inc.(1)

    6,260,921   
  820,700     

General Electric Co.

    22,224,556   
  35,207     

HD Supply Holdings, Inc.(1)

    1,161,831   
  141,331     

KLX, Inc.(1)

    5,923,182   
  372,334     

Lithium Technology Corp.(1)(2)(3)

    1,928,690   
  143,188     

Lockheed Martin Corp.

    26,718,881   
  158,934     

Northrop Grumman Corp.

    24,482,193   
  248,039     

Owens Corning

    9,589,188   
  810,884     

Raytheon Co.

    84,331,936   
  278,647     

Rexel S.A.

    5,251,558   
  1,212,513     

Safran S.A.

    88,595,088   
  40,982     

Sulzer AG

    4,573,104   
  76,227     

Teledyne Technologies, Inc.(1)

    8,001,548   
  351,937     

TransDigm Group, Inc.

    74,656,396   
  518,513     

United Technologies Corp.

    58,980,854   
  168,825     

WESCO International, Inc.(1)

    12,179,036   
   

 

 

 
      624,505,730   
   

 

 

 
      Commercial & Professional Services - 0.7%  
  148,984     

Adecco S.A.(1)

    12,141,701   
  146,985     

Clean Harbors, Inc.(1)

    8,120,921   
  167,044     

Equifax, Inc.

    16,191,575   
  470,650     

Herman Miller, Inc.

    12,900,517   
  487,155     

Knoll, Inc.

    11,092,519   
  127,700     

ManpowerGroup, Inc.

    10,896,641   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Commercial & Professional Services - 0.7% - (continued)  
  153,415     

Robert Half International, Inc.

  $ 8,506,862   
   

 

 

 
      79,850,736   
   

 

 

 
      Consumer Durables & Apparel - 2.6%  
  350,600     

Asics Corp.

    8,996,497   
  807,705     

D.R. Horton, Inc.

    20,515,707   
  779,214     

Electrolux AB Series B

    23,331,707   
  197,747     

GoPro, Inc. Class A(1)

    9,903,170   
  95,197     

Harman International Industries, Inc.

    12,411,785   
  253,362     

Kate Spade & Co.(1)

    8,284,937   
  246,111     

Luxottica Group S.p.A.

    16,208,103   
  87,511     

Michael Kors Holdings Ltd.(1)

    5,413,431   
  3,497,801     

PulteGroup, Inc.

    67,507,559   
  1,207,500     

Samsonite International S.A.

    4,403,955   
  3,728,690     

Sony Corp.(1)

    112,724,779   
  328,015     

Vera Bradley, Inc.(1)

    4,670,934   
  42,740     

Whirlpool Corp.

    7,505,144   
   

 

 

 
      301,877,708   
   

 

 

 
      Consumer Services - 2.7%  
  581,890     

American Public Education, Inc.(1)

    16,228,912   
  460,000     

Grand Canyon Education, Inc.(1)

    20,828,800   
  510,820     

Hilton Worldwide Holdings, Inc.(1)

    14,793,347   
  476,735     

Las Vegas Sands Corp.

    25,209,747   
  223,785     

LifeLock, Inc.(1)

    3,269,499   
  495,389     

McDonald’s Corp.

    47,829,808   
  186,000     

Melco Crown Entertainment Ltd. ADR

    3,798,120   
  1,504,900     

Norwegian Cruise Line Holdings Ltd.(1)

    73,002,699   
  930,400     

Sands China Ltd.

    3,792,673   
  1,148,595     

Wyndham Worldwide Corp.

    98,090,013   
   

 

 

 
      306,843,618   
   

 

 

 
      Diversified Financials - 4.3%  
  110,270     

Ameriprise Financial, Inc.

    13,814,626   
  328,260     

Banca Generali S.p.A.

    11,017,139   
  180,737     

BlackRock, Inc.

    65,777,424   
  2,422,200     

Blackstone Group L.P.

    99,213,312   
  260,500     

Hong Kong Exchanges and Clearing Ltd.

    9,930,320   
  392,466     

Julius Baer Group Ltd.(1)

    20,541,959   
  288,585     

Legg Mason, Inc.

    15,194,000   
  723,695     

McGraw Hill Financial, Inc.

    75,481,388   
  592,425     

MSCI, Inc.

    36,250,486   
  171,030     

Northern Trust Corp.

    12,510,845   
  242,543     

Platform Specialty Products Corp.(1)

    6,534,108   
  312,500     

PRA Group, Inc.(1)

    17,117,187   
  208,400     

Raymond James Financial, Inc.

    11,780,852   
  1,531,312     

Springleaf Holdings, Inc.(1)

    76,565,600   
  420,730     

Waddell & Reed Financial, Inc. Class A

    20,750,404   
  651,400     

Zegona Communications plc(1)

    1,399,858   
   

 

 

 
      493,879,508   
   

 

 

 
      Energy - 4.8%  
  340,765     

Atwood Oceanics, Inc.

    11,374,736   
  92,654     

Baker Hughes, Inc.

    6,343,093   
  1,048,915     

BG Group plc

    18,999,565   
  320,461     

Cameco Corp.

    5,635,973   
  430,115     

Canadian Natural Resources Ltd.

    14,301,324   
  195,693     

Chevron Corp.

    21,733,665   
  1,800,543     

Cobalt International Energy, Inc.(1)

    19,265,810   
  56,511     

Diamondback Energy, Inc.(1)

    4,666,113   
  75,948     

Energen Corp.

    5,405,219   
  165,440     

Exxon Mobil Corp.

    14,454,493   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  39  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Energy - 4.8% - (continued)  
  3,239,630     

Halliburton Co.

  $ 158,579,888   
  58,700     

Helmerich & Payne, Inc.

    4,576,839   
  248,695     

HollyFrontier Corp.

    9,644,392   
  878,881     

Imperial Oil Ltd.

    38,785,019   
  1,290,453     

Karoon Gas Australia Ltd.(1)

    2,780,698   
  1,066,246     

Laredo Petroleum, Inc.(1)

    16,846,687   
  672,300     

Malakoff Corp. Bhd(1)

    339,784   
  467,800     

Marathon Oil Corp.

    14,548,580   
  2,113,678     

McDermott International, Inc.(1)

    11,096,809   
  162,015     

National Oilwell Varco, Inc.

    8,815,236   
  185,032     

Occidental Petroleum Corp.

    14,821,063   
  335,394     

Patterson-UTI Energy, Inc.

    7,496,056   
  337,089     

Pioneer Natural Resources Co.

    58,242,237   
  204,840     

QEP Resources, Inc.

    4,608,900   
  288,671     

Rice Energy, Inc.(1)

    7,109,967   
  922,845     

Southwestern Energy Co.(1)

    25,867,345   
  636,765     

Suncor Energy, Inc.

    20,758,539   
  34,768     

Superior Energy Services, Inc.

    886,584   
  2,860,805     

Trican Well Service Ltd.

    12,092,918   
  225,310     

Whiting Petroleum Corp.(1)

    8,541,502   
   

 

 

 
      548,619,034   
   

 

 

 
      Food & Staples Retailing - 0.6%  
  563,062     

CVS Health Corp.

    55,906,426   
  293,610     

Seven & I Holdings Co., Ltd.

    12,620,624   
   

 

 

 
      68,527,050   
   

 

 

 
      Food, Beverage & Tobacco - 3.2%  
  257,893     

Anheuser-Busch InBev N.V.

    31,398,028   
  208,575     

Anheuser-Busch InBev N.V. ADR

    25,037,343   
  1,403,365     

Coca-Cola Co.

    56,920,485   
  68,209     

Diageo plc ADR

    7,572,563   
  1,492,603     

Freshpet, Inc.(1)

    32,359,633   
  1,643,556     

Greencore Group plc

    8,918,885   
  215,861     

Imperial Tobacco Group plc

    10,540,600   
  296,911     

Kraft Foods Group, Inc.

    25,163,207   
  2,615,746     

Mondelez International, Inc. Class A

    100,366,174   
  333,937     

Monster Beverage Corp.(1)

    45,786,102   
  222,312     

Post Holdings, Inc.(1)

    10,435,325   
  807,666     

Treasury Wine Estates Ltd.

    3,542,232   
  46,731     

TreeHouse Foods, Inc.(1)

    3,797,361   
   

 

 

 
      361,837,938   
   

 

 

 
      Health Care Equipment & Services - 4.1%  
  277,457     

Acadia Healthcare Co., Inc.(1)

    19,005,804   
  215,665     

Aetna, Inc.

    23,048,119   
  79,875     

Anthem, Inc.

    12,055,534   
  679,597     

Becton Dickinson and Co.

    95,734,829   
  362,092     

Cardinal Health, Inc.

    30,538,839   
  533,600     

CareView Communications, Inc.(1)

    208,051   
  173,416     

Envision Healthcare Holdings, Inc.(1)

    6,582,871   
  945,800     

Express Scripts Holding Co.(1)

    81,717,120   
  749,764     

HCA Holdings, Inc.(1)

    55,490,034   
  499,141     

IMS Health Holdings, Inc.(1)

    13,771,300   
  255,800     

McKesson Corp.

    57,145,720   
  364,298     

Medtronic plc

    27,121,986   
  312,162     

UnitedHealth Group, Inc.

    34,774,847   
  122,455     

Universal Health Services, Inc. Class B

    14,321,112   
   

 

 

 
      471,516,166   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Household & Personal Products - 0.8%  
  347,094     

Estee Lauder Cos., Inc. Class A

  $ 28,215,271   
  160,197     

Procter & Gamble Co.

    12,737,263   
  2,092,402     

Svenska Cellulosa AB SCA Class B

    52,927,237   
   

 

 

 
      93,879,771   
   

 

 

 
      Insurance - 5.1%  
  519,176     

ACE Ltd.

    55,546,640   
  2,822,600     

AIA Group Ltd.

    18,771,629   
  3,317,062     

American International Group, Inc.

    186,717,420   
  208,500     

Arthur J Gallagher & Co.

    9,972,555   
  367,820     

Assured Guaranty Ltd.

    9,559,642   
  21,647     

Fairfax Financial Holdings Ltd.

    11,823,765   
  322,150     

Lincoln National Corp.

    18,198,254   
  19,676     

Markel Corp.(1)

    14,572,833   
  1,009,212     

Marsh & McLennan Cos., Inc.

    56,677,346   
  993,983     

MetLife, Inc.

    50,981,388   
  342,870     

Principal Financial Group, Inc.

    17,527,514   
  1,204,000     

Prudential Financial, Inc.

    98,246,400   
  396,200     

Tokio Marine Holdings, Inc.

    16,151,366   
  194,700     

Torchmark Corp.

    10,924,617   
  263,400     

Unum Group

    8,997,744   
   

 

 

 
      584,669,113   
   

 

 

 
      Materials - 3.5%  
  347,040     

Barrick Gold Corp.

    4,518,461   
  7,007     

Berry Plastics Group, Inc.(1)

    239,780   
  112,600     

Cabot Corp.

    4,812,524   
  239,545     

Celanese Corp. Series A

    15,896,206   
  389,819     

Constellium N.V. Class A(1)

    7,160,975   
  347,775     

Continental Gold Ltd.(1)

    634,152   
  272,226     

Dow Chemical Co.

    13,883,526   
  817,001     

Gold Resource Corp.

    2,753,293   
  635,563     

Holcim Ltd.(1)

    51,055,081   
  265,600     

Huntsman Corp.

    6,122,080   
  19,313,200     

Ivanhoe Mines Ltd. Class A(1)

    18,568,845   
  793,742     

Louisiana-Pacific Corp.(1)

    12,096,628   
  79,765     

Martin Marietta Materials, Inc.

    11,378,477   
  306,176     

Methanex Corp.

    18,434,857   
  780,355     

Norbord, Inc.

    15,742,926   
  1,084,058     

Packaging Corp. of America

    75,005,973   
  72,347     

Platform Specialty Products Corp.(1)

    1,949,028   
  345,842     

Praxair, Inc.

    42,168,515   
  267,805     

Reliance Steel & Aluminum Co.

    17,332,340   
  160,445     

Rio Tinto plc ADR

    7,186,332   
  590,008     

Wacker Chemie AG

    73,177,660   
   

 

 

 
      400,117,659   
   

 

 

 
      Media - 0.8%  
  285,995     

CBS Corp. Class B

    17,768,869   
  159,336     

DISH Network Corp. Class A(1)

    10,780,674   
  56,516     

Loral Space & Communications, Inc.(1)

    3,899,604   
  327,995     

Quebecor, Inc. Class B

    9,020,202   
  1,517,115     

Sky plc

    25,014,096   
  141,393     

Tribune Media Co. Class A

    7,927,905   
  410,034     

Twenty-First Century Fox, Inc. Class A

    13,973,959   
   

 

 

 
      88,385,309   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 15.2%  
  1,026,147     

Actavis plc(1)

    290,255,940   
  27,260     

Agios Pharmaceuticals, Inc.(1)

    2,517,188   
  312,152     

Alkermes plc(1)

    17,283,856   
  62,342     

Alnylam Pharmaceuticals, Inc.(1)

    6,350,780   
  87,790     

Amgen, Inc.

    13,862,919   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  40  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 15.2% -
(continued)
 
  1,275,194     

Arena Pharmaceuticals, Inc.(1)

  $ 5,559,846   
  1,249,193     

AstraZeneca plc

    85,727,856   
  150,425     

AstraZeneca plc ADR

    10,301,104   
  375,368     

Biogen, Inc.(1)

    140,361,356   
  131,467     

BioMarin Pharmaceutical, Inc.(1)

    14,730,877   
  3,200     

Blueprint Medicines Corp.(1)

    60,384   
  6,008,611     

Bristol-Myers Squibb Co.

    382,928,779   
  181,985     

Celgene Corp.(1)

    19,665,299   
  689,310     

Eisai Co., Ltd.

    45,947,608   
  76,194     

Five Prime Therapeutics, Inc.(1)

    1,528,452   
  200,170     

Gilead Sciences, Inc.(1)

    20,119,087   
  338,900     

ICON plc(1)

    21,804,826   
  34,988     

Illumina, Inc.(1)

    6,446,539   
  239,494     

Incyte Corp.(1)

    23,269,237   
  483,482     

Johnson & Johnson

    47,961,414   
  229,414     

Medivation, Inc.(1)

    27,699,446   
  4,885,000     

Merck & Co., Inc.

    290,950,600   
  1,286,921     

Mylan N.V.(1)

    92,992,911   
  84,650     

Ono Pharmaceutical Co., Ltd.

    9,174,293   
  611,785     

Pfizer, Inc.

    20,757,865   
  320,716     

Portola Pharmaceuticals, Inc.(1)

    11,446,354   
  59,365     

PTC Therapeutics, Inc.(1)

    3,487,694   
  17,877     

Puma Biotechnology, Inc.(1)

    3,228,229   
  22,567     

Receptos, Inc.(1)

    3,325,022   
  87,816     

Regeneron Pharmaceuticals, Inc.(1)

    40,172,307   
  115,124     

Regulus Therapeutics, Inc.(1)

    1,444,806   
  89,570     

Roche Holding AG

    25,630,912   
  159,776     

TESARO, Inc.(1)

    8,702,999   
  1,980,953     

TherapeuticsMD, Inc.(1)

    12,836,575   
  197,774     

Vertex Pharmaceuticals, Inc.(1)

    24,381,579   
   

 

 

 
      1,732,914,939   
   

 

 

 
      Real Estate - 0.7%  
  119,900     

American Tower Corp. REIT

    11,334,147   
  78,955     

AvalonBay Communities, Inc. REIT

    12,975,465   
  366,690     

CBRE Group, Inc. Class A(1)

    14,058,895   
  365,300     

Columbia Property Trust, Inc. REIT

    9,581,819   
  480,804     

Deutsche Annington Immobilien SE

    16,138,240   
  417,730     

Mitsui Fudosan Co., Ltd.

    12,383,312   
  153,417     

WeWork Companies, Inc. Class A(1)(2)(3)

    2,299,108   
  193,805     

Weyerhaeuser Co. REIT

    6,106,795   
   

 

 

 
      84,877,781   
   

 

 

 
      Retailing - 6.3%  
  694,816     

Advance Auto Parts, Inc.

    99,358,688   
  288,955     

Amazon.com, Inc.(1)

    121,875,440   
  257,629     

CarMax, Inc.(1)

    17,547,111   
  1,943,600     

Chico’s FAS, Inc.

    32,769,096   
  118,219     

CST Brands, Inc.

    4,930,914   
  2,999     

Dollar General Corp.

    218,057   
  164,090     

Dollar Tree, Inc.(1)

    12,538,117   
  187,300     

GNC Holdings, Inc. Class A

    8,063,265   
  2,770,781     

Groupon, Inc.(1)

    19,173,805   
  398,820     

Home Depot, Inc.

    42,665,764   
  79,548     

HSN, Inc.

    4,965,386   
  10,615     

JAND Inc. Class A(1)(2)(3)

    109,725   
  158,673     

L Brands, Inc.

    14,179,019   
  385,597     

Lowe’s Cos., Inc.

    26,552,209   
  547,297     

Michaels Cos., Inc.(1)

    14,153,100   
  42,015     

Netflix, Inc.(1)

    23,381,348   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Retailing - 6.3% - (continued)  
  10,960     

Priceline Group, Inc.(1)

  $ 13,566,398   
  2,161     

Restoration Hardware Holdings, Inc.(1)

    186,213   
  609,930     

Signet Jewelers Ltd.

    81,809,911   
  1,543,789     

TJX Cos., Inc.

    99,636,142   
  161,835     

TripAdvisor, Inc.(1)

    13,026,099   
  2,546,275     

Vipshop Holdings Ltd. ADR(1)

    72,034,120   
   

 

 

 
      722,739,927   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 5.5%  
  96,598     

Applied Materials, Inc.

    1,911,674   
  720,954     

Cypress Semiconductor Corp.(1)

    9,603,103   
  32,194,050     

GCL-Poly Energy Holdings Ltd.(1)

    9,736,510   
  5,504,707     

Intel Corp.

    179,178,213   
  679,442     

Maxim Integrated Products, Inc.

    22,306,081   
  2,485,162     

Micron Technology, Inc.(1)

    69,907,607   
  1,719,293     

NXP Semiconductors N.V.(1)

    165,258,443   
  20,851     

Qorvo, Inc.(1)

    1,374,289   
  313,875     

SK Hynix, Inc.

    13,429,159   
  1,255,665     

Sumco Corp.

    18,945,699   
  319,042     

SunEdison Semiconductor Ltd.(1)

    7,124,208   
  1,096,850     

SunEdison, Inc.(1)

    27,772,242   
  3,147,329     

SunPower Corp.(1)

    101,312,521   
   

 

 

 
      627,859,749   
   

 

 

 
      Software & Services - 12.1%  
  557,192     

Accenture plc Class A

    51,623,839   
  7,162,910     

Activision Blizzard, Inc.

    163,421,792   
  1,026,981     

Adobe Systems, Inc.(1)

    78,112,175   
  431,671     

Akamai Technologies, Inc.(1)

    31,848,686   
  432,453     

Alibaba Group Holding Ltd. ADR(1)

    35,154,104   
  302,330     

AOL, Inc.(1)

    12,062,967   
  11,200     

Apigee Corp.(1)

    162,064   
  220,927     

Automatic Data Processing, Inc.

    18,677,169   
  552,000     

Baidu, Inc. ADR(1)

    110,554,560   
  91,200     

Blackhawk Network Holdings, Inc.(1)

    3,353,424   
  241,200     

Cognizant Technology Solutions Corp. Class A(1)

    14,119,848   
  328,400     

CoStar Group, Inc.(1)

    67,134,812   
  948,444     

Coupons.com, Inc.(1)

    11,884,003   
  128,520     

Envestnet, Inc.(1)

    6,587,935   
  474,300     

Everyday Health, Inc.(1)

    5,814,918   
  1,851,597     

Facebook, Inc. Class A(1)

    145,850,296   
  538,623     

Genpact Ltd.(1)

    11,774,299   
  5,800     

GoDaddy, Inc. Class A(1)

    145,406   
  891,012     

Gogo, Inc.(1)

    18,835,994   
  27,700     

Google, Inc. Class A(1)

    15,200,929   
  370,554     

Google, Inc. Class C(1)

    199,113,694   
  162,959     

Intuit, Inc.

    16,349,676   
  46,516     

LendingClub Corp. PIPE(1)(2)(3)

    794,019   
  3,956,870     

Microsoft Corp.

    192,462,157   
  1,710     

New Relic, Inc. PIPE(1)

    55,558   
  2,146,822     

Optimal Payments plc(1)

    9,755,873   
  560,757     

Pandora Media, Inc.(1)

    10,003,905   
  295,852     

Salesforce.com, Inc.(1)

    21,543,943   
  792,310     

Tencent Holdings Ltd.

    16,352,383   
  234,005     

Verint Systems, Inc.(1)

    14,374,927   
  221,371     

VeriSign, Inc.(1)

    14,059,272   
  1,189,528     

Web.com Group, Inc.(1)

    21,851,629   
  292,188     

Workday, Inc. Class A(1)

    26,650,467   
  95,500     

Yahoo!, Inc.(1)

    4,064,958   
  429,168     

Yelp, Inc.(1)

    16,904,928   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  41  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)  
      Software & Services - 12.1% - (continued)  
  164,958     

Zillow Group, Inc. Class A(1)

  $ 16,106,499   
   

 

 

 
      1,382,763,108   
   

 

 

 
      Technology Hardware & Equipment - 4.4%  
  273,198     

Amphenol Corp. Class A

    15,126,973   
  1,600,221     

Apple, Inc.

    200,267,658   
  534,840     

ARRIS Group, Inc.(1)

    18,010,737   
  365,423     

Belden, Inc.

    30,677,261   
  559,810     

CDW Corp. of Delaware

    21,451,919   
  3,842,919     

Cisco Systems, Inc.

    110,791,355   
  125,859     

F5 Networks, Inc.(1)

    15,357,315   
  172,730     

Hewlett-Packard Co.

    5,694,908   
  37,915     

Largan Precision Co., Ltd.

    3,799,311   
  7,573,000     

NEC Corp.

    25,195,456   
  1,139,910     

ParkerVision, Inc.(1)

    775,139   
  6,732     

Samsung Electronics Co., Ltd.

    8,831,399   
  180,312     

Stratasys Ltd.(1)

    6,752,685   
  202,569     

TE Connectivity Ltd.

    13,480,967   
  456,086     

Trimble Navigation Ltd.(1)

    11,598,267   
  126,038     

Western Digital Corp.

    12,318,954   
   

 

 

 
      500,130,304   
   

 

 

 
      Telecommunication Services - 0.4%  
  543,807     

Orange S.A.

    8,957,215   
  91,115     

SoftBank Corp.

    5,695,626   
  652,344     

Verizon Communications, Inc.

    32,904,232   
   

 

 

 
      47,557,073   
   

 

 

 
      Transportation - 3.8%  
  45,597,300     

AirAsia Bhd

    29,062,437   
  517,580     

American Airlines Group, Inc.

    24,991,350   
  1,854,515     

CSX Corp.

    66,929,446   
  417,140     

FedEx Corp.

    70,734,430   
  4,470,350     

Hertz Global Holdings, Inc.(1)

    93,162,094   
  430,400     

Landstar System, Inc.

    26,818,224   
  1,751,244     

Swift Transportation Co.(1)

    42,380,105   
  112,317     

United Continental Holdings, Inc.(1)

    6,709,818   
  685,820     

United Parcel Service, Inc. Class B

    68,945,485   
  607,912     

UTi Worldwide, Inc.(1)

    5,489,445   
   

 

 

 
      435,222,834   
   

 

 

 
      Utilities - 1.1%  
  27,187,000     

China Longyuan Power Group Corp. Ltd. Class H

    33,692,644   
  427,811     

Duke Energy Corp.

    33,185,299   
  84,750     

Empresa Distribuidora Y Comercializadora Norte ADR(1)

    1,206,840   
  2,442,000     

ENN Energy Holdings Ltd.

    17,576,008   
  478,200     

Exelon Corp.

    16,268,364   
  66,130     

Pampa Energia S.A. ADR(1)

    1,076,596   
  171,000     

PG&E Corp.

    9,049,320   
  1,013,865     

Snam S.p.A.

    5,281,367   
  318,720     

Xcel Energy, Inc.

    10,807,795   
   

 

 

 
      128,144,233   
   

 

 

 
 

Total Common Stocks
(cost $9,954,031,468)

  $ 10,948,102,688   
   

 

 

 
PREFERRED STOCKS - 1.9%  
      Consumer Durables & Apparel - 0.0%  
  83,332     

One Kings Lane, Inc.(1)(2)(3)

  $ 1,181,648   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
PREFERRED STOCKS - 1.9% - (continued)  
      Consumer Services - 0.0%  
  244,180     

Draftkings, Inc.(1)(2)(3)

  $ 395,853   
   

 

 

 
      Health Care Equipment & Services - 0.1%  
  9,027,618     

Invuity, Inc.(1)(2)(3)

    6,300,013   
  95,683     

Moderna Therapeutics, Inc.(1)(2)(3)

    5,310,694   
   

 

 

 
      11,610,707   
   

 

 

 
      Media - 0.0%  
  25,200     

Harvey Weinstein Co. Holdings(1)(2)(3)

      
   

 

 

 
      Real Estate - 0.2%  
  245,862     

Redfin Corp. Series G(1)(2)(3)

    729,701   
  762,484     

WeWork Companies, Inc. Class D-1(1)(2)(3)

    11,426,619   
  599,094     

WeWork Companies, Inc. Class D-2(1)(2)(3)

    8,978,049   
   

 

 

 
      21,134,369   
   

 

 

 
      Retailing - 0.5%  
  44,867     

Forward Ventures LLC(1)(2)(3)

    1,809,935   
  12,011     

Honest Co.(1)(2)(3)

    308,442   
  23,702     

JAND Inc. Series D(1)(2)(3)

    245,002   
  770,636     

Tory Burch LLC(1)(2)(3)

    51,655,704   
   

 

 

 
      54,019,083   
   

 

 

 
      Software & Services - 0.8%  
  50,581     

Apigee Corp. PIPE(1)(2)(3)

    661,156   
  143,626     

Birst, Inc. Series F(1)(2)(3)

    755,013   
  25,867     

Cloudera, Inc.(1)(2)(3)

    768,250   
  18,389     

Dropbox, Inc. Series C(1)(2)(3)

    316,127   
  566,622     

Essence Holding Group(1)(2)(3)

    1,008,587   
  77,707     

Lookout, Inc. Series F(1)(2)(3)

    798,828   
  95,031     

MarkLogic Corp. Series F(1)(2)(3)

    993,338   
  28,495     

New Relic, Inc. PIPE Series A(1)(2)(3)

    904,715   
  118,110     

Nutanix, Inc.(1)(2)(3)

    2,101,177   
  457,210     

Pinterest, Inc. Series G(1)(2)(3)

    14,770,587   
  47,064     

Sharecare(1)(2)(3)

    10,583,894   
  2,000,820     

Uber Technologies, Inc.(1)(2)(3)

    59,996,228   
  58,205     

Veracode, Inc.(1)(2)(3)

    1,657,678   
  306,876     

Zuora, Inc. Series F(1)(2)(3)

    1,049,323   
   

 

 

 
      96,364,901   
   

 

 

 
      Technology Hardware & Equipment - 0.3%  
  1,219,639     

Pure Storage, Inc.(1)(2)(3)

    20,124,043   
  5,362,869     

Rethink Robotics, Inc.(1)(2)(3)

    12,028,379   
   

 

 

 
      32,152,422   
   

 

 

 
      Telecommunication Services - 0.0%  
  1,923     

DocuSign, Inc. Series B(1)(2)(3)

    36,716   
  576     

DocuSign, Inc. Series B-1(1)(2)(3)

    10,998   
  1,383     

DocuSign, Inc. Series D(1)(2)(3)

    26,406   
  35,761     

DocuSign, Inc. Series E(1)(2)(3)

    682,788   
  6,398     

DocuSign, Inc. Series F(1)(2)(3)

    122,158   
   

 

 

 
      879,066   
   

 

 

 
 

Total Preferred Stocks
(cost $226,701,835)

  $ 217,738,049   
   

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.0%  
      Retailing - 0.0%  
  28,025     

Honest Co. Series C(1)(2)(3)

  $ 719,682   
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $758,281)

  $ 719,682   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

42

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
WARRANTS - 0.1%  
      Diversified Financials - 0.1%  
  184,498     

Platform Specialty Products Corp.(1)

  $ 4,970,376   
   

 

 

 
 

Total Warrants
(cost $3,505,462)

  $ 4,970,376   
   

 

 

 
RIGHTS - 0.0%  
      Software & Services - 0.0%  
  1,679,248     

Optimal Payments plc(1)

  $ 3,582,926   
   

 

 

 
 

Total Rights
(cost $2,143,991)

  $ 3,582,926   
   

 

 

 
 

Total Long-Term Investments
(cost $10,187,141,037)

  $ 11,175,113,721   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.5%  
      Other Investment Pools & Funds - 2.5%  
  281,946,919     

Fidelity Money Market Class 1

  $ 281,946,919   
   

 

 

 
 

Total Short-Term Investments
(cost $281,946,919)

  $ 281,946,919   
   

 

 

 
 

Total Investments
(cost $10,469,087,956)^

    100.3    $ 11,457,060,640   
 

Other Assets and Liabilities

    (0.3 )%       (30,803,624
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     11,426,257,016   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

43

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $10,486,894,079 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     1,282,531,103   

Unrealized Depreciation

     (312,364,542
  

 

 

 

Net Unrealized Appreciation

   $ 970,166,561   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $223,589,273, which represents 2.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
04/2014      50,581       Apigee Corp. PIPE Preferred    $ 1,079,272   
03/2015      143,626       Birst, Inc. Series F Preferred      838,905   
02/2014      25,867       Cloudera, Inc. Preferred      376,623   
02/2014      1,923       DocuSign, Inc. Series B Preferred      25,253   
02/2014      576       DocuSign, Inc. Series B-1 Preferred      7,564   
02/2014      1,383       DocuSign, Inc. Series D Preferred      18,162   
02/2014      35,761       DocuSign, Inc. Series E Preferred      469,628   
04/2015      6,398       DocuSign, Inc. Series F Preferred      122,158   
12/2014      244,180       Draftkings, Inc. Preferred      439,837   
01/2014      18,389       Dropbox, Inc. Series C Preferred      351,252   
05/2014      566,622       Essence Holding Group Preferred      895,999   
11/2014      44,867       Forward Ventures LLC Preferred      1,396,764   
10/2005      25,200       Harvey Weinstein Co. Holdings Preferred      23,636,380   
08/2014      12,011       Honest Co. Preferred      324,985   
08/2014      28,025       Honest Co. Series C Convertible Preferred      758,281   
02/2015      9,027,618       Invuity, Inc. Preferred      7,000,015   
04/2015      10,615       JAND Inc.      121,916   
04/2015      23,702       JAND Inc. Series D Preferred      272,225   
04/2014      46,516       LendingClub Corp.      473,126   
08/2014      372,334       Lithium Technology Corp.      1,814,756   
07/2014      77,707       Lookout, Inc. Series F Preferred      887,655   
04/2015      95,031       MarkLogic Corp. Series F Preferred      1,103,709   
12/2014      95,683       Moderna Therapeutics, Inc. Preferred      5,900,771   
04/2014      28,495       New Relic, Inc. PIPE Series A Preferred      808,879   
08/2014      118,110       Nutanix, Inc. Preferred      1,582,261   
01/2014      83,332       One Kings Lane, Inc. Preferred      1,284,730   
03/2015      457,210       Pinterest, Inc. Series G Preferred      16,411,763   
04/2014      1,219,639       Pure Storage, Inc. Preferred      19,179,921   
12/2014      245,862       Redfin Corp. Series G Preferred      810,779   
03/2015      5,362,869       Rethink Robotics, Inc. Preferred      13,365,342   
03/2015      47,064       Sharecare Preferred      11,759,882   

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Period
Acquired

   Shares/Par     

Security

   Cost  
11/2013      770,636       Tory Burch LLC Preferred    $ 60,399,725   
06/2014      2,000,820       Uber Technologies, Inc. Preferred      31,038,821   
08/2014      58,205       Veracode, Inc. Preferred      1,074,808   
12/2014      153,417       WeWork Companies, Inc.      2,554,571   
12/2014      762,484       WeWork Companies, Inc. Class D-1 Preferred      12,696,243   
12/2014      599,094       WeWork Companies, Inc. Class D-2 Preferred      9,975,610   
01/2015      306,876       Zuora, Inc. Series F Preferred      1,165,914   
        

 

 

 
         $     232,424,485   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $223,589,273, which represents 2.0% of total net assets.

Foreign Currency Contracts Outstanding at April 30, 2015

 

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market Value*      Unrealized
Appreciation/
(Depreciation)
 

EUR

   Buy      05/04/15       DEUT    $ 9,503,644       $ 9,556,838       $ 53,194   

EUR

   Buy      05/05/15       WEST      860,453         863,097         2,644   

EUR

   Buy      06/17/15       RBS      6,290,721         6,443,619         152,898   

EUR

   Sell      05/04/15       DEUT      927,104         932,293         (5,189

EUR

   Sell      05/05/15       WEST      1,898,616         1,904,450         (5,834

EUR

   Sell      06/17/15       NAB          76,874,164             81,246,907         (4,372,743

EUR

   Sell      06/17/15       RBS      76,644,598         81,245,783         (4,601,185

GBP

   Buy      05/01/15       HSBC      365,871         363,174         (2,697

GBP

   Buy      05/01/15       GSC      4,302,029         4,278,891         (23,138

GBP

   Buy      05/05/15       TDB      130,983         131,189         206   

GBP

   Sell      05/01/15       HSBC      800,790         794,887         5,903   

GBP

   Sell      06/17/15       BNP      2,336,649         2,396,855         (60,206

GBP

   Sell      06/17/15       BCLY      4,014,649         4,089,384         (74,735

GBP

   Sell      06/17/15       RBS      4,012,163         4,087,851         (75,688

HKD

   Sell      05/04/15       GSC      46,570         46,570           

JPY

   Buy      05/08/15       DEUT      617,078         614,645         (2,433

JPY

   Buy      06/17/15       GSC      5,629,063         5,720,104         91,041   

JPY

   Sell      05/08/15       DEUT      588,798         586,476         2,322   

JPY

   Sell      06/17/15       DEUT      98,128,698         99,551,313         (1,422,615

JPY

   Sell      06/17/15       JPM      98,118,973         99,551,313         (1,432,340
                 

 

 

 

Total

                  $     (11,770,595
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

NAB

   National Australia Bank Limited

RBS

   RBS Greenwich Capital

TDB

   Toronto Dominion Bank

WEST

   Westpac International
Currency Abbreviations:

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

PIPE

   Private Investment in Public Equity

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  45  

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Automobiles & Components

   $ 284,782,005      $ 261,679,038       $ 23,102,967      $   

Banks

     576,601,395        382,219,666         194,381,729          

Capital Goods

     624,505,730        503,782,435         118,794,605        1,928,690   

Commercial & Professional Services

     79,850,736        67,709,035         12,141,701          

Consumer Durables & Apparel

     301,877,708        136,212,667         165,665,041          

Consumer Services

     306,843,618        303,050,945         3,792,673          

Diversified Financials

     493,879,508        445,855,982         48,023,526          

Energy

     548,619,034        526,838,771         21,780,263          

Food & Staples Retailing

     68,527,050        55,906,426         12,620,624          

Food, Beverage & Tobacco

     361,837,938        307,438,193         54,399,745          

Health Care Equipment & Services

     471,516,166        471,516,166                  

Household & Personal Products

     93,879,771        40,952,534         52,927,237          

Insurance

     584,669,113        549,746,118         34,922,995          

Materials

     400,117,659        275,884,918         124,232,741          

Media

     88,385,309        63,371,213         25,014,096          

Pharmaceuticals, Biotechnology & Life Sciences

     1,732,914,939        1,566,434,270         166,480,669          

Real Estate

     84,877,781        54,057,121         28,521,552        2,299,108   

Retailing

     722,739,927        722,630,202                109,725   

Semiconductors & Semiconductor Equipment

     627,859,749        585,748,381         42,111,368          

Software & Services

     1,382,763,108        1,355,860,833         26,108,256        794,019   

Technology Hardware & Equipment

     500,130,304        462,304,138         37,826,166          

Telecommunication Services

     47,557,073        32,904,232         14,652,841          

Transportation

     435,222,834        435,222,834                  

Utilities

     128,144,233        71,594,214         56,550,019          

Preferred Stocks

     217,738,049                       217,738,049   

Convertible Preferred Stocks

     719,682                       719,682   

Warrants

     4,970,376                4,970,376          

Rights

     3,582,926        3,582,926                  

Short-Term Investments

     281,946,919        281,946,919                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     11,457,060,640      $     9,964,450,177       $     1,269,021,190      $     223,589,273   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 308,208      $       $ 308,208      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 308,208      $       $ 308,208      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (12,078,803   $       $ (12,078,803   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (12,078,803   $       $ (12,078,803   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $4,970,550 were transferred from Level 1 to Level 2, and investments valued at $31,999,861 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

46

 


The Hartford Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Preferred Stocks     Convertible
Preferred Stock
     Total  

Beginning balance

   $ 7,743,635      $ 106,206,276      $ 682,453       $ 114,632,364   

Purchases

     3,192,715        83,259,916                86,452,631   

Sales

            (2,487,170             (2,487,170

Accrued discounts/(premiums)

                             

Total realized gain/(loss)

            1,010,161                1,010,161   

Net change in unrealized appreciation/(depreciation)

     31,747        29,748,866        37,229         29,817,842   

Transfers into Level 3(1)

                             

Transfers out of Level 3(1)

     (5,836,555                    (5,836,555 )
  

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance

   $     5,131,542      $     217,738,049      $     719,682       $     223,589,273   

The change in net unrealized appreciation/(depreciation) relating to the Level 3 investment held at April 30, 2015 was $29,965,543.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


Hartford Core Equity Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     13.7

Consumer Staples

     11.8   

Energy

     5.1   

Financials

     9.2   

Health Care

     19.7   

Industrials

     7.5   

Information Technology

     20.5   

Materials

     3.2   

Utilities

     4.1   
  

 

 

 

Total

     94.8
  

 

 

 

Short-Term Investments

     4.3

Other Assets & Liabilities

     0.9   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

48

 


Hartford Core Equity Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.8%  
      Banks - 6.0%  
  183,880     

EverBank Financial Corp.

  $ 3,414,651   
  103,658     

JP Morgan Chase & Co.

    6,557,405   
  48,775     

PNC Financial Services Group, Inc.

    4,474,131   
   

 

 

 
      14,446,187   
   

 

 

 
      Capital Goods - 3.1%  
  39,290     

AMETEK, Inc.

    2,059,582   
  27,670     

Honeywell International, Inc.

    2,792,457   
  28,730     

Illinois Tool Works, Inc.

    2,688,553   
   

 

 

 
      7,540,592   
   

 

 

 
      Commercial & Professional Services - 3.6%  
  38,160     

Equifax, Inc.

    3,698,849   
  42,680     

Nielsen N.V.

    1,918,039   
  40,040     

Verisk Analytics, Inc. Class A(1)

    3,004,602   
   

 

 

 
      8,621,490   
   

 

 

 
      Consumer Durables & Apparel - 1.2%  
  18,042     

PVH Corp.

    1,864,640   
  7,070     

Ralph Lauren Corp.

    943,209   
   

 

 

 
      2,807,849   
   

 

 

 
      Consumer Services - 1.9%  
  3,453     

Chipotle Mexican Grill, Inc.(1)

    2,145,487   
  28,687     

Starwood Hotels & Resorts Worldwide, Inc.

    2,465,648   
   

 

 

 
      4,611,135   
   

 

 

 
      Energy - 5.1%  
  30,240     

Anadarko Petroleum Corp.

    2,845,584   
  41,560     

Chevron Corp.

    4,615,653   
  24,145     

EOG Resources, Inc.

    2,389,148   
  48,945     

Halliburton Co.

    2,395,858   
   

 

 

 
      12,246,243   
   

 

 

 
      Food & Staples Retailing - 4.7%  
  36,230     

Costco Wholesale Corp.

    5,182,701   
  61,940     

CVS Health Corp.

    6,150,023   
   

 

 

 
      11,332,724   
   

 

 

 
      Food, Beverage & Tobacco - 4.6%  
  70,820     

Altria Group, Inc.

    3,544,541   
  122,910     

Mondelez International, Inc. Class A

    4,716,057   
  20,658     

Monster Beverage Corp.(1)

    2,832,418   
   

 

 

 
      11,093,016   
   

 

 

 
      Health Care Equipment & Services - 10.5%  
  33,295     

Aetna, Inc.

    3,558,237   
  39,147     

Cerner Corp.(1)

    2,811,146   
  60,875     

Envision Healthcare Holdings, Inc.(1)

    2,310,815   
  23,765     

McKesson Corp.

    5,309,101   
  48,960     

Omnicare, Inc.

    4,307,501   
  42,794     

UnitedHealth Group, Inc.

    4,767,251   
  22,670     

Zimmer Holdings, Inc.

    2,490,073   
   

 

 

 
      25,554,124   
   

 

 

 
      Household & Personal Products - 2.5%  
  87,990     

Coty, Inc. Class A(1)

    2,103,841   
  49,864     

Estee Lauder Cos., Inc. Class A

    4,053,445   
   

 

 

 
      6,157,286   
   

 

 

 
      Insurance - 3.2%  
  39,765     

ACE Ltd.

    4,254,457   
  63,510     

American International Group, Inc.

    3,574,978   
   

 

 

 
      7,829,435   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.8% - (continued)  
      Materials - 3.2%  
  18,890     

Airgas, Inc.

  $ 1,913,179   
  48,430     

Crown Holdings, Inc.(1)

    2,627,812   
  11,665     

Sherwin-Williams Co.

    3,242,870   
   

 

 

 
      7,783,861   
   

 

 

 
      Media - 1.7%  
  72,255     

Comcast Corp. Class A

    4,161,165   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 9.2%  
  16,655     

Actavis plc(1)

    4,711,033   
  5,434     

Biogen, Inc.(1)

    2,031,936   
  74,685     

Bristol-Myers Squibb Co.

    4,759,675   
  62,794     

Eli Lilly & Co.

    4,513,005   
  16,250     

Gilead Sciences, Inc.(1)

    1,633,287   
  79,027     

Merck & Co., Inc.

    4,706,848   
   

 

 

 
      22,355,784   
   

 

 

 
      Retailing - 8.9%  
  8,415     

AutoZone, Inc.(1)

    5,660,434   
  54,382     

Dollar Tree, Inc.(1)

    4,155,329   
  64,920     

Lowe’s Cos., Inc.

    4,470,391   
  37,805     

Ross Stores, Inc.

    3,738,158   
  54,340     

TJX Cos., Inc.

    3,507,104   
   

 

 

 
      21,531,416   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 1.0%  
  76,685     

Intel Corp.

    2,496,097   
   

 

 

 
      Software & Services - 15.4%  
  35,090     

Accenture plc Class A

    3,251,089   
  86,985     

Activision Blizzard, Inc.

    1,984,563   
  49,510     

Automatic Data Processing, Inc.

    4,185,575   
  22,425     

Fiserv, Inc.(1)

    1,740,180   
  100,020     

Genpact Ltd.(1)

    2,186,437   
  7,400     

Google, Inc. Class A(1)

    4,060,898   
  5,320     

Google, Inc. Class C(1)

    2,858,413   
  40,410     

Intuit, Inc.

    4,054,335   
  39,855     

Jack Henry & Associates, Inc.

    2,650,756   
  31,765     

Mastercard, Inc. Class A

    2,865,521   
  116,615     

Microsoft Corp.

    5,672,154   
  36,044     

Solera Holdings, Inc.

    1,748,855   
   

 

 

 
      37,258,776   
   

 

 

 
      Technology Hardware & Equipment - 4.1%  
  54,075     

Apple, Inc.

    6,767,486   
  106,500     

Cisco Systems, Inc.

    3,070,395   
   

 

 

 
      9,837,881   
   

 

 

 
      Transportation - 0.8%  
  11,805     

FedEx Corp.

    2,001,774   
   

 

 

 
      Utilities - 4.1%  
  65,235     

American Electric Power Co., Inc.

    3,709,914   
  38,990     

NextEra Energy, Inc.

    3,935,261   
  39,165     

Pinnacle West Capital Corp.

    2,396,898   
   

 

 

 
      10,042,073   
   

 

 

 
 

Total Common Stocks
(cost $191,091,579)

  $ 229,708,908   
   

 

 

 
 

Total Long-Term Investments
(cost $191,091,579)

  $ 229,708,908   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

49

 


Hartford Core Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 4.3%  
      Other Investment Pools & Funds - 4.3%      
  10,517,290     

Fidelity Money Market Class 1

  $ 10,517,290   
   

 

 

 
 

Total Short-Term Investments
(cost $10,517,290)

  $ 10,517,290   
   

 

 

 
 

Total Investments
(cost $201,608,869)^

    99.1    $ 240,226,198   
 

Other Assets and Liabilities

    0.9      2,081,492   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     242,307,690   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

50

 


Hartford Core Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $201,719,907 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 40,297,204   

Unrealized Depreciation

     (1,790,913
  

 

 

 

Net Unrealized Appreciation

   $     38,506,291   
  

 

 

 

 

(1)  Non-income producing.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional Amount      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

S&P 500 (E-Mini) Future

     69         06/19/2015       $     7,200,285       $     7,172,205       $ (28,080)   
              

 

 

 

Total futures contracts

               $     (28,080)   
              

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

51

 


Hartford Core Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)     Level 2(1)      Level 3  

Assets

         

Common Stocks

         

Banks

   $ 14,446,187      $ 14,446,187      $       $   

Capital Goods

     7,540,592        7,540,592                  

Commercial & Professional Services

     8,621,490        8,621,490                  

Consumer Durables & Apparel

     2,807,849        2,807,849                  

Consumer Services

     4,611,135        4,611,135                  

Energy

     12,246,243        12,246,243                  

Food & Staples Retailing

     11,332,724        11,332,724                  

Food, Beverage & Tobacco

     11,093,016        11,093,016                  

Health Care Equipment & Services

     25,554,124        25,554,124                  

Household & Personal Products

     6,157,286        6,157,286                  

Insurance

     7,829,435        7,829,435                  

Materials

     7,783,861        7,783,861                  

Media

     4,161,165        4,161,165                  

Pharmaceuticals, Biotechnology & Life Sciences

     22,355,784        22,355,784                  

Retailing

     21,531,416        21,531,416                  

Semiconductors & Semiconductor Equipment

     2,496,097        2,496,097                  

Software & Services

     37,258,776        37,258,776                  

Technology Hardware & Equipment

     9,837,881        9,837,881                  

Transportation

     2,001,774        2,001,774                  

Utilities

     10,042,073        10,042,073                  

Short-Term Investments

     10,517,290        10,517,290                  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $     240,226,198      $     240,226,198      $     —       $     —   
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Futures Contracts(2)

   $ (28,080   $ (28,080   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (28,080   $ (28,080   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

52

 


The Hartford Dividend and Growth Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     6.9

Consumer Staples

     7.1   

Energy

     9.7   

Financials

     20.8   

Health Care

     15.9   

Industrials

     13.1   

Information Technology

     15.1   

Materials

     2.1   

Telecommunication Services

     2.6   

Utilities

     3.3   
  

 

 

 

Total

     96.6
  

 

 

 

Short-Term Investments

     3.4

Other Assets & Liabilities

     0.0   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

53

 


The Hartford Dividend and Growth Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.6%  
      Automobiles & Components - 1.6%  
  6,726,110     

Ford Motor Co.

  $ 106,272,538   
  679,210     

Honda Motor Co., Ltd. ADR

    22,773,911   
   

 

 

 
      129,046,449   
   

 

 

 
      Banks - 11.8%  
  4,196,471     

Bank of America Corp.

    66,849,783   
  960,950     

Bank of Nova Scotia

    53,015,612   
  1,887,420     

Citigroup, Inc.

    100,637,234   
  3,094,720     

JP Morgan Chase & Co.

    195,771,987   
  1,451,441     

PNC Financial Services Group, Inc.

    133,140,683   
  1,164,725     

US Bancorp

    49,931,761   
  6,532,040     

Wells Fargo & Co.

    359,915,404   
   

 

 

 
      959,262,464   
   

 

 

 
      Capital Goods - 7.0%  
  800,915     

Caterpillar, Inc.

    69,583,495   
  1,118,090     

Eaton Corp. plc

    76,846,326   
  2,999,210     

General Electric Co.

    81,218,607   
  1,055,060     

Honeywell International, Inc.

    106,476,655   
  173,330     

Lockheed Martin Corp.

    32,343,378   
  624,440     

Raytheon Co.

    64,941,760   
  1,012,620     

Textron, Inc.

    44,535,027   
  813,820     

United Technologies Corp.

    92,572,025   
   

 

 

 
      568,517,273   
   

 

 

 
      Commercial & Professional Services - 2.0%  
  678,145     

Equifax, Inc.

    65,732,595   
  2,181,580     

Nielsen N.V.

    98,040,205   
   

 

 

 
      163,772,800   
   

 

 

 
      Consumer Services - 0.9%  
  462,977     

Las Vegas Sands Corp.

    24,482,224   
  611,400     

Starwood Hotels & Resorts Worldwide, Inc.

    52,549,830   
   

 

 

 
      77,032,054   
   

 

 

 
      Diversified Financials - 2.2%  
  262,330     

Ameriprise Financial, Inc.

    32,864,703   
  341,230     

BlackRock, Inc.

    124,187,246   
  342,900     

Northern Trust Corp.

    25,083,135   
   

 

 

 
      182,135,084   
   

 

 

 
      Energy - 9.7%  
  957,980     

Anadarko Petroleum Corp.

    90,145,918   
  1,787,900     

Chevron Corp.

    198,564,174   
  368,710     

EOG Resources, Inc.

    36,483,855   
  1,906,098     

Exxon Mobil Corp.

    166,535,782   
  464,980     

Halliburton Co.

    22,760,771   
  708,910     

Hess Corp.

    54,515,179   
  1,344,900     

Imperial Oil Ltd.

    59,350,437   
  2,325,800     

Marathon Oil Corp.

    72,332,380   
  495,580     

Schlumberger Ltd.

    46,886,824   
  776,090     

Total S.A. ADR

    41,986,469   
   

 

 

 
      789,561,789   
   

 

 

 
      Food & Staples Retailing - 3.4%  
  1,672,490     

CVS Health Corp.

    166,061,532   
  950,250     

Wal-Mart Stores, Inc.

    74,167,012   
  432,207     

Walgreens Boots Alliance, Inc.

    35,842,927   
   

 

 

 
      276,071,471   
   

 

 

 
      Food, Beverage & Tobacco - 3.1%  
  1,910,650     

Coca-Cola Co.

    77,495,964   
  1,715,200     

Mondelez International, Inc. Class A

    65,812,224   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.6% - (continued)  
      Food, Beverage & Tobacco - 3.1% - (continued)  
  837,235     

Philip Morris International, Inc.

  $ 69,884,005   
  1,004,535     

Unilever N.V.

    43,677,182   
   

 

 

 
      256,869,375   
   

 

 

 
      Health Care Equipment & Services - 4.2%  
  1,347,090     

Cardinal Health, Inc.

    113,613,571   
  1,876,110     

Medtronic plc

    139,676,389   
  811,420     

UnitedHealth Group, Inc.

    90,392,188   
   

 

 

 
      343,682,148   
   

 

 

 
      Household & Personal Products - 0.6%  
  667,235     

Procter & Gamble Co.

    53,051,855   
   

 

 

 
      Insurance - 6.8%  
  1,435,350     

ACE Ltd.

    153,568,096   
  441,970     

Aflac, Inc.

    27,861,789   
  1,211,800     

Marsh & McLennan Cos., Inc.

    68,054,688   
  1,476,200     

MetLife, Inc.

    75,714,298   
  1,861,375     

Principal Financial Group, Inc.

    95,153,490   
  1,666,590     

Prudential Financial, Inc.

    135,993,744   
   

 

 

 
      556,346,105   
   

 

 

 
      Materials - 2.1%  
  980,130     

Celanese Corp. Series A

    65,041,427   
  1,495,360     

Goldcorp, Inc.

    28,157,629   
  1,414,060     

International Paper Co.

    75,963,303   
   

 

 

 
      169,162,359   
   

 

 

 
      Media - 3.1%  
  3,470,302     

Comcast Corp. Class A

    200,444,644   
  1,410,090     

Twenty-First Century Fox, Inc. Class A

    48,055,867   
  56,979     

Walt Disney Co.

    6,194,757   
   

 

 

 
      254,695,268   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life
Sciences - 11.7%
 
  1,516,155     

AstraZeneca plc ADR

    103,826,294   
  2,262,640     

Bristol-Myers Squibb Co.

    144,198,047   
  1,707,180     

Eli Lilly & Co.

    122,695,027   
  1,506,727     

Johnson & Johnson

    149,467,318   
  4,826,658     

Merck & Co., Inc.

    287,475,751   
  4,237,810     

Pfizer, Inc.

    143,788,893   
   

 

 

 
      951,451,330   
   

 

 

 
      Retailing - 1.3%  
  1,554,220     

Lowe’s Cos., Inc.

    107,023,589   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 3.5%  
  680,471     

Altera Corp.

    28,362,031   
  1,088,900     

Analog Devices, Inc.

    67,337,576   
  4,414,520     

Intel Corp.

    143,692,626   
  887,510     

Texas Instruments, Inc.

    48,111,917   
   

 

 

 
      287,504,150   
   

 

 

 
      Software & Services - 6.9%  
  1,283,395     

Accenture plc Class A

    118,906,547   
  228,100     

Google, Inc. Class A(1)

    125,174,437   
  5,078,782     

Microsoft Corp.

    247,031,956   
  1,632,490     

Oracle Corp.

    71,209,214   
   

 

 

 
      562,322,154   
   

 

 

 
      Technology Hardware & Equipment - 4.7%  
  1,239,045     

Apple, Inc.

    155,066,482   
  840,140     

Avnet, Inc.

    35,815,168   
  4,600,700     

Cisco Systems, Inc.

    132,638,181   
  578,400     

Qualcomm, Inc.

    39,331,200   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  54  

 


The Hartford Dividend and Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.6% - (continued)  
      Technology Hardware & Equipment - 4.7% - (continued)  
  258,450     

Western Digital Corp.

  $ 25,260,903   
   

 

 

 
      388,111,934   
   

 

 

 
      Telecommunication Services - 2.6%  
  4,152,600     

Verizon Communications, Inc.

    209,457,144   
   

 

 

 
      Transportation - 4.1%  
  1,993,174     

CSX Corp.

    71,933,649   
  1,356,680     

Delta Air Lines, Inc.

    60,562,195   
  450,310     

FedEx Corp.

    76,359,067   
  1,220,573     

United Parcel Service, Inc. Class B

    122,704,204   
   

 

 

 
      331,559,115   
   

 

 

 
      Utilities - 3.3%  
  1,022,415     

Dominion Resources, Inc.

    73,286,707   
  1,850,475     

Exelon Corp.

    62,953,160   
  967,305     

NextEra Energy, Inc.

    97,630,094   
  1,329,980     

NRG Energy, Inc.

    33,568,695   
   

 

 

 
      267,438,656   
   

 

 

 
 

Total Common Stocks
(cost $5,661,370,505)

  $ 7,884,074,566   
   

 

 

 
 

Total Long-Term Investments
(cost $5,661,370,505)

  $ 7,884,074,566   
   

 

 

 
SHORT-TERM INVESTMENTS - 3.4%  
      Other Investment Pools & Funds - 2.6%  
  209,622,687     

BlackRock Liquidity Funds TempFund Portfolio

  $ 209,622,687   
   

 

 

 
      U.S. Government Agencies - 0.8%      
 

FHLB

 
  66,000,000     

0.07%, 05/22/2015(2)

    65,998,812   
   

 

 

 
 

Total Short-Term Investments
(cost $275,619,895)

  $ 275,621,499   
   

 

 

 
 

Total Investments
(cost $5,936,990,400)^

    100.0    $ 8,159,696,065   
 

Other Assets and Liabilities

    0.0      (1,895,030
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     8,157,801,035   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

55

 


The Hartford Dividend and Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $5,955,112,171 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     2,264,374,332   

Unrealized Depreciation

     (59,790,438
  

 

 

 

Net Unrealized Appreciation

   $ 2,204,583,894   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The interest rate disclosed for this holding is the effective yield on the date of the acquisition.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ADR

   American Depositary Receipt

FHLB

   Federal Home Loan Bank

 

The accompanying notes are an integral part of these financial statements.

 

 

  56  

 


The Hartford Dividend and Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 129,046,449       $ 129,046,449       $       $   

Banks

     959,262,464         959,262,464                   

Capital Goods

     568,517,273         568,517,273                   

Commercial & Professional Services

     163,772,800         163,772,800                   

Consumer Services

     77,032,054         77,032,054                   

Diversified Financials

     182,135,084         182,135,084                   

Energy

     789,561,789         789,561,789                   

Food & Staples Retailing

     276,071,471         276,071,471                   

Food, Beverage & Tobacco

     256,869,375         256,869,375                   

Health Care Equipment & Services

     343,682,148         343,682,148                   

Household & Personal Products

     53,051,855         53,051,855                   

Insurance

     556,346,105         556,346,105                   

Materials

     169,162,359         169,162,359                   

Media

     254,695,268         254,695,268                   

Pharmaceuticals, Biotechnology & Life Sciences

     951,451,330         951,451,330                   

Retailing

     107,023,589         107,023,589                   

Semiconductors & Semiconductor Equipment

     287,504,150         287,504,150                   

Software & Services

     562,322,154         562,322,154                   

Technology Hardware & Equipment

     388,111,934         388,111,934                   

Telecommunication Services

     209,457,144         209,457,144                   

Transportation

     331,559,115         331,559,115                   

Utilities

     267,438,656         267,438,656                   

Short-Term Investments

     275,621,499         209,622,687         65,998,812           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     8,159,696,065       $     8,093,697,253       $     65,998,812       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

57

 


The Hartford Equity Income Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     5.0

Consumer Staples

     8.0   

Energy

     11.8   

Financials

     23.8   

Health Care

     13.7   

Industrials

     13.2   

Information Technology

     12.5   

Materials

     1.6   

Telecommunication Services

     3.5   

Utilities

     6.4   
  

 

 

 

Total

     99.5
  

 

 

 

Short-Term Investments

     0.7

Other Assets & Liabilities

     (0.2
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

58

 


The Hartford Equity Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.5%      
      Banks - 13.3%  
  1,054,970     

BB&T Corp.

  $ 40,394,801   
  1,958,340     

JP Morgan Chase & Co.

    123,884,589   
  528,305     

M&T Bank Corp.

    63,222,259   
  1,032,585     

PNC Financial Services Group, Inc.

    94,719,022   
  1,008,290     

US Bancorp

    43,225,392   
  2,670,100     

Wells Fargo & Co.

    147,122,510   
   

 

 

 
      512,568,573   
   

 

 

 
      Capital Goods - 11.6%  
  327,595     

3M Co.

    51,232,582   
  163,200     

Caterpillar, Inc.

    14,178,816   
  1,265,385     

Eaton Corp. plc

    86,969,911   
  3,175,390     

General Electric Co.

    85,989,561   
  365,000     

Honeywell International, Inc.

    36,835,800   
  271,610     

Illinois Tool Works, Inc.

    25,417,264   
  391,500     

Raytheon Co.

    40,716,000   
  380,412     

Schneider Electric S.A.

    28,435,180   
  678,460     

United Technologies Corp.

    77,174,825   
   

 

 

 
      446,949,939   
   

 

 

 
      Commercial & Professional Services - 0.7%  
  518,450     

Waste Management, Inc.

    25,678,829   
   

 

 

 
      Consumer Services - 0.9%  
  351,050     

McDonald’s Corp.

    33,893,878   
   

 

 

 
      Diversified Financials - 3.4%  
  282,660     

Ameriprise Financial, Inc.

    35,411,645   
  204,445     

BlackRock, Inc.

    74,405,713   
  550,629     

Invesco Ltd.

    22,807,053   
   

 

 

 
      132,624,411   
   

 

 

 
      Energy - 11.8%  
  1,036,720     

Chevron Corp.

    115,138,123   
  767,500     

Enbridge, Inc.

    40,163,275   
  1,098,990     

Exxon Mobil Corp.

    96,018,756   
  1,239,200     

Marathon Oil Corp.

    38,539,120   
  607,535     

Occidental Petroleum Corp.

    48,663,554   
  437,500     

Phillips 66

    34,698,125   
  527,105     

Royal Dutch Shell plc Class B

    16,875,682   
  1,923,620     

Suncor Energy, Inc.

    62,710,012   
   

 

 

 
      452,806,647   
   

 

 

 
      Food & Staples Retailing - 0.7%  
  346,780     

Wal-Mart Stores, Inc.

    27,066,179   
   

 

 

 
      Food, Beverage & Tobacco - 6.4%  
  250,400     

Anheuser-Busch InBev N.V. ADR

    30,058,016   
  696,114     

British American Tobacco plc

    38,246,994   
  923,800     

Coca-Cola Co.

    37,469,328   
  278,290     

Diageo plc ADR

    30,895,756   
  980,365     

Kraft Foods Group, Inc.

    83,085,934   
  322,075     

Philip Morris International, Inc.

    26,883,600   
   

 

 

 
      246,639,628   
   

 

 

 
      Health Care Equipment & Services - 0.8%  
  428,820     

Baxter International, Inc.

    29,477,087   
   

 

 

 
      Household & Personal Products - 0.9%  
  418,805     

Procter & Gamble Co.

    33,299,186   
   

 

 

 
      Insurance - 7.1%  
  732,710     

ACE Ltd.

    78,392,643   
  1,894,860     

Marsh & McLennan Cos., Inc.

    106,415,337   
  962,000     

MetLife, Inc.

    49,340,980   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.5% - (continued)      
      Insurance - 7.1% - (continued)  
  737,000     

Principal Financial Group, Inc.

  $ 37,675,440   
   

 

 

 
      271,824,400   
   

 

 

 
      Materials - 1.6%  
  718,680     

Dow Chemical Co.

    36,652,680   
  511,585     

Nucor Corp.

    24,996,043   
   

 

 

 
      61,648,723   
   

 

 

 
      Media - 0.9%  
  857,755     

Thomson Reuters Corp.

    35,219,420   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life
Sciences - 12.9%
 
  574,965     

AstraZeneca plc ADR

    39,373,603   
  647,200     

Bristol-Myers Squibb Co.

    41,246,056   
  420,600     

Eli Lilly & Co.

    30,228,522   
  1,100,850     

Johnson & Johnson

    109,204,320   
  2,047,015     

Merck & Co., Inc.

    121,920,214   
  231,848     

Novartis AG

    23,665,216   
  2,629,776     

Pfizer, Inc.

    89,228,300   
  136,719     

Roche Holding AG

    39,122,838   
   

 

 

 
      493,989,069   
   

 

 

 
      Retailing - 3.2%  
  1,141,960     

Home Depot, Inc.

    122,166,881   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 5.5%  
  1,257,470     

Analog Devices, Inc.

    77,761,945   
  2,504,330     

Intel Corp.

    81,515,941   
  939,666     

Maxim Integrated Products, Inc.

    30,849,235   
  377,720     

Texas Instruments, Inc.

    20,476,201   
   

 

 

 
      210,603,322   
   

 

 

 
      Software & Services - 4.4%  
  2,723,695     

Microsoft Corp.

    132,480,525   
  1,440,830     

Symantec Corp.

    35,912,688   
   

 

 

 
      168,393,213   
   

 

 

 
      Technology Hardware & Equipment - 2.6%  
  3,460,780     

Cisco Systems, Inc.

    99,774,287   
   

 

 

 
      Telecommunication Services - 3.5%  
  836,900     

BCE, Inc.

    36,895,741   
  1,905,824     

Verizon Communications, Inc.

    96,129,762   
   

 

 

 
      133,025,503   
   

 

 

 
      Transportation - 0.9%  
  334,870     

United Parcel Service, Inc. Class B

    33,664,481   
   

 

 

 
      Utilities - 6.4%  
  450,100     

Duke Energy Corp.

    34,914,257   
  811,920     

Eversource Energy

    39,589,219   
  3,827,547     

National Grid plc

    51,493,293   
  317,460     

NextEra Energy, Inc.

    32,041,238   
  1,202,460     

UGI Corp.

    41,857,633   
  1,339,200     

Xcel Energy, Inc.

    45,412,272   
   

 

 

 
      245,307,912   
   

 

 

 
 

Total Common Stocks
(cost $3,053,696,060)

  $ 3,816,621,568   
   

 

 

 
 

Total Long-Term Investments
(cost $3,053,696,060)

  $ 3,816,621,568   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

59

 


The Hartford Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 0.7%  
      Other Investment Pools & Funds - 0.7%  
  25,148,390     

Federated Prime Obligations Fund

  $ 25,148,390   
   

 

 

 
 

Total Short-Term Investments
(cost $25,148,390)

  $ 25,148,390   
   

 

 

 
 

Total Investments
(cost $3,078,844,450)^

    100.2    $ 3,841,769,958   
 

Other Assets and Liabilities

    (0.2 )%       (7,121,137
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     3,834,648,821   
   

 

 

    

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

60

 


The Hartford Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $3,086,991,775 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 769,783,488   

Unrealized Depreciation

     (15,005,305
  

 

 

 

Net Unrealized Appreciation

   $     754,778,183   
  

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ADR

   American Depositary Receipt

 

The accompanying notes are an integral part of these financial statements.

 

 

  61  

 


The Hartford Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Banks

   $ 512,568,573       $ 512,568,573       $       $   

Capital Goods

     446,949,939         418,514,759         28,435,180           

Commercial & Professional Services

     25,678,829         25,678,829                   

Consumer Services

     33,893,878         33,893,878                   

Diversified Financials

     132,624,411         132,624,411                   

Energy

     452,806,647         435,930,965         16,875,682           

Food & Staples Retailing

     27,066,179         27,066,179                   

Food, Beverage & Tobacco

     246,639,628         208,392,634         38,246,994           

Health Care Equipment & Services

     29,477,087         29,477,087                   

Household & Personal Products

     33,299,186         33,299,186                   

Insurance

     271,824,400         271,824,400                   

Materials

     61,648,723         61,648,723                   

Media

     35,219,420         35,219,420                   

Pharmaceuticals, Biotechnology & Life Sciences

     493,989,069         431,201,015         62,788,054           

Retailing

     122,166,881         122,166,881                   

Semiconductors & Semiconductor Equipment

     210,603,322         210,603,322                   

Software & Services

     168,393,213         168,393,213                   

Technology Hardware & Equipment

     99,774,287         99,774,287                   

Telecommunication Services

     133,025,503         133,025,503                   

Transportation

     33,664,481         33,664,481                   

Utilities

     245,307,912         193,814,619         51,493,293           

Short-Term Investments

     25,148,390         25,148,390                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     3,841,769,958       $     3,643,930,755       $     197,839,203       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

62

 


The Hartford Growth Opportunities Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     20.1

Consumer Staples

     2.0   

Financials

     7.6   

Health Care

     21.2   

Industrials

     12.6   

Information Technology

     32.1   

Materials

     1.9   
  

 

 

 

Total

     97.5
  

 

 

 

Short-Term Investments

     2.7

Other Assets & Liabilities

     (0.2
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

63

 


The Hartford Growth Opportunities Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 90.6%  
      Automobiles & Components - 0.8%  
  159,361     

Tesla Motors, Inc.(1)

  $ 36,023,554   
   

 

 

 
      Capital Goods - 8.8%  
  299,579     

Acuity Brands, Inc.

    50,014,714   
  1,426,997     

AECOM(1)

    45,036,025   
  586,922     

AMETEK, Inc.

    30,766,451   
  783,808     

Danaher Corp.

    64,178,199   
  889,699     

DigitalGlobe, Inc.(1)

    28,621,617   
  1,169,953     

Fortune Brands Home & Security, Inc.

    52,179,904   
  1,149,068     

HD Supply Holdings, Inc.(1)

    37,919,244   
  4,106,956     

Lithium Technology Corp.(1)(2)(3)

    21,274,032   
  1,028,999     

Textron, Inc.

    45,255,376   
   

 

 

 
      375,245,562   
   

 

 

 
      Commercial & Professional Services - 0.9%  
  320,387     

IHS, Inc. Class A(1)

    40,198,957   
   

 

 

 
      Consumer Durables & Apparel - 3.5%  
  645,953     

GoPro, Inc. Class A(1)

    32,349,326   
  290,399     

Harman International Industries, Inc.

    37,862,221   
  10,719,360     

Samsonite International S.A.

    39,095,307   
  216,313     

Whirlpool Corp.

    37,984,563   
   

 

 

 
      147,291,417   
   

 

 

 
      Consumer Services - 5.4%  
  59,390     

Chipotle Mexican Grill, Inc.(1)

    36,901,383   
  1,789,709     

Diamond Resorts International, Inc.(1)

    57,288,585   
  1,389,258     

Hilton Worldwide Holdings, Inc.(1)

    40,232,912   
  1,124,786     

Starbucks Corp.

    55,766,890   
  438,134     

Wyndham Worldwide Corp.

    37,416,643   
   

 

 

 
      227,606,413   
   

 

 

 
      Diversified Financials - 3.5%  
  142,669     

BlackRock, Inc.

    51,922,956   
  1,478,828     

Nomad Holdings Ltd.(1)(2)(3)

    26,618,904   
  562,643     

Northern Trust Corp.

    41,157,336   
  1,046,579     

Platform Specialty Products Corp.(1)

    28,194,838   
   

 

 

 
      147,894,034   
   

 

 

 
      Energy - 0.0%  
  2,187,900     

Malakoff Corp. Bhd(1)

    1,105,776   
   

 

 

 
      Food & Staples Retailing - 1.0%  
  894,998     

Whole Foods Market, Inc.

    42,745,104   
   

 

 

 
      Food, Beverage & Tobacco - 1.0%  
  315,935     

Monster Beverage Corp.(1)

    43,317,848   
   

 

 

 
      Health Care Equipment & Services - 6.5%  
  394,697     

Becton Dickinson and Co.

    55,600,966   
  2,929,630     

Boston Scientific Corp.(1)

    52,206,007   
  474,373     

Cerner Corp.(1)

    34,064,725   
  268,000     

DexCom, Inc.(1)

    18,108,760   
  951,752     

Envision Healthcare Holdings, Inc.(1)

    36,128,506   
  1,185,474     

Hologic, Inc.(1)

    39,997,893   
  78,651     

Intuitive Surgical, Inc.(1)

    39,009,323   
   

 

 

 
      275,116,180   
   

 

 

 
      Insurance - 1.2%  
  936,694     

American International Group, Inc.

    52,726,505   
   

 

 

 
      Materials - 1.9%  
  299,396     

Martin Marietta Materials, Inc.

    42,708,839   
  1,362,604     

Platform Specialty Products Corp.(1)

    36,708,552   
   

 

 

 
      79,417,391   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 90.6% - (continued)  
      Media - 1.2%  
  1,556,987     

Twenty-First Century Fox, Inc. Class A

  $ 53,062,117   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 14.7%  
  282,695     

Actavis plc(1)

    79,963,108   
  146,122     

Alnylam Pharmaceuticals, Inc.(1)

    14,885,448   
  581,415     

AstraZeneca plc

    39,900,529   
  123,028     

Biogen, Inc.(1)

    46,003,860   
  37,500     

Blueprint Medicines Corp.(1)

    707,625   
  2,289,002     

Bristol-Myers Squibb Co.

    145,878,097   
  286,814     

Celgene Corp.(1)

    30,993,121   
  345,900     

Eisai Co., Ltd.

    23,056,792   
  216,136     

Incyte Corp.(1)

    20,999,774   
  811,440     

Merck & Co., Inc.

    48,329,366   
  1,209,702     

Mylan N.V.(1)

    87,413,067   
  387,593     

Novartis AG

    39,562,438   
  102,798     

Regeneron Pharmaceuticals, Inc.(1)

    47,025,973   
   

 

 

 
      624,719,198   
   

 

 

 
      Real Estate - 2.6%  
  616,471     

American Tower Corp. REIT

    58,275,004   
  1,292,144     

CBRE Group, Inc. Class A(1)

    49,540,801   
  81,341     

WeWork Companies, Inc. Class A(1)(2)(3)

    1,218,976   
   

 

 

 
      109,034,781   
   

 

 

 
      Retailing - 7.5%  
  405,402     

Advance Auto Parts, Inc.

    57,972,486   
  365,406     

Amazon.com, Inc.(1)

    154,120,943   
  123,196     

JAND Inc. Class A(1)(2)(3)

    1,273,449   
  532,146     

Lowe’s Cos., Inc.

    36,643,573   
  121,024     

Netflix, Inc.(1)

    67,349,856   
   

 

 

 
      317,360,307   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 1.1%  
  492,238     

NXP Semiconductors N.V.(1)

    47,313,916   
   

 

 

 
      Software & Services - 17.2%  
  898,044     

Akamai Technologies, Inc.(1)

    66,257,686   
  544,856     

Alibaba Group Holding Ltd. ADR(1)

    44,291,344   
  131,500     

Apigee Corp.(1)

    1,902,805   
  183,109     

Baidu, Inc. ADR(1)

    36,673,071   
  837,484     

Cognizant Technology Solutions Corp. Class A(1)

    49,026,314   
  297,216     

CoStar Group, Inc.(1)

    60,759,867   
  1,483,844     

Facebook, Inc. Class A(1)

    116,882,392   
  64,100     

GoDaddy, Inc. Class A(1)

    1,606,987   
  175,499     

Google, Inc. Class A(1)

    96,308,586   
  98,622     

Google, Inc. Class C(1)

    52,993,533   
  974,377     

Mobileye N.V.(1)

    43,710,552   
  1,565,700     

Tencent Holdings Ltd.

    32,314,279   
  836,815     

Workday, Inc. Class A(1)

    76,325,896   
  513,497     

Zillow Group, Inc. Class A(1)

    50,137,847   
   

 

 

 
      729,191,159   
   

 

 

 
      Technology Hardware & Equipment - 9.1%  
  1,970,170     

Apple, Inc.

    246,566,776   
  629,909     

Arista Networks, Inc.(1)

    40,320,475   
  1,427,817     

CDW Corp. of Delaware

    54,713,947   
  669,176     

TE Connectivity Ltd.

    44,533,663   
   

 

 

 
      386,134,861   
   

 

 

 
      Transportation - 2.7%  
  393,249     

Genesee & Wyoming, Inc. Class A(1)

    36,552,495   
  365,443     

Kansas City Southern

    37,454,253   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 90.6% - (continued)  
      Transportation - 2.7% - (continued)  
  421,727     

United Parcel Service, Inc. Class B

  $ 42,396,215   
   

 

 

 
      116,402,963   
   

 

 

 
 

Total Common Stocks
(cost $3,317,671,883)

  $ 3,851,908,043   
   

 

 

 
PREFERRED STOCKS - 6.6%  
      Consumer Durables & Apparel - 0.3%  
  923,832     

One Kings Lane, Inc.(1)(2)(3)

  $ 13,099,938   
   

 

 

 
      Consumer Services - 0.1%  
  2,428,921     

Draftkings, Inc.(1)(2)(3)

    3,937,655   
   

 

 

 
      Real Estate - 0.4%  
  2,437,006     

Redfin Corp. Series G(1)(2)(3)

    7,232,863   
  404,267     

WeWork Companies, Inc. Class D-1(1)(2)(3)

    6,058,363   
  317,638     

WeWork Companies, Inc. Class D-2(1)(2)(3)

    4,760,137   
   

 

 

 
      18,051,363   
   

 

 

 
      Retailing - 1.2%  
  443,446     

Forward Ventures LLC(1)(2)(3)

    17,888,612   
  116,585     

Honest Co.(1)(2)(3)

    2,993,903   
  275,096     

JAND Inc. Series D(1)(2)(3)

    2,843,604   
  418,006     

Tory Burch LLC(1)(2)(3)

    28,018,931   
   

 

 

 
      51,745,050   
   

 

 

 
      Software & Services - 4.1%  
  454,126     

Apigee Corp. PIPE(1)(2)(3)

    5,935,987   
  1,526,069     

Birst, Inc. Series F(1)(2)(3)

    8,022,240   
  387,642     

Cloudera, Inc.(1)(2)(3)

    11,512,967   
  5,668,755     

Essence Holding Group(1)(2)(3)

    10,090,384   
  743,470     

Lookout, Inc. Series F(1)(2)(3)

    7,642,872   
  1,078,374     

MarkLogic Corp. Series F(1)(2)(3)

    11,272,006   
  158,587     

New Relic, Inc. PIPE Series A(1)(2)(3)

    5,035,129   
  610,175     

Nutanix, Inc.(1)(2)(3)

    10,855,013   
  282,178     

Pinterest, Inc. Series G(1)(2)(3)

    9,116,018   
  2,311,920     

Uber Technologies, Inc.(1)(2)(3)

    69,324,817   
  566,228     

Veracode, Inc.(1)(2)(3)

    16,126,173   
  3,194,823     

Zuora, Inc. Series F(1)(2)(3)

    10,924,282   
   

 

 

 
      175,857,888   
   

 

 

 
      Technology Hardware & Equipment - 0.3%  
  654,892     

Pure Storage, Inc.(1)(2)(3)

    10,805,718   
   

 

 

 
      Telecommunication Services - 0.2%  
  19,187     

DocuSign, Inc. Series B(1)(2)(3)

    366,339   
  5,747     

DocuSign, Inc. Series B-1(1)(2)(3)

    109,728   
  13,788     

DocuSign, Inc. Series D(1)(2)(3)

    263,256   
  356,583     

DocuSign, Inc. Series E(1)(2)(3)

    6,808,275   
  74,347     

DocuSign, Inc. Series F(1)(2)(3)

    1,419,515   
   

 

 

 
      8,967,113   
   

 

 

 
 

Total Preferred Stocks
(cost $243,957,797)

  $ 282,464,725   
   

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.2%  
      Retailing - 0.2%  
  272,032     

Honest Co. Series C(1)(2)(3)

  $ 6,985,782   
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $7,360,451)

  $ 6,985,782   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
WARRANTS - 0.1%  
      Diversified Financials - 0.1%      
  1,484,000     

Nomad Holdings Ltd.(1)(2)(3)

  $ 3,710,000   
   

 

 

 
 

Total Warrants
(cost $14,840)

  $ 3,710,000   
   

 

 

 
 

Total Long-Term Investments
(cost $3,569,004,971)

  $ 4,145,068,550   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.7%  
      Other Investment Pools & Funds - 2.7%  
  115,804,583     

Federated Prime Obligations Fund

  $ 115,804,583   
   

 

 

 
 

Total Short-Term Investments
(cost $115,804,583)

  $ 115,804,583   
   

 

 

 
 

Total Investments
(cost $3,684,809,554)^

    100.2    $ 4,260,873,133   
 

Other Assets and Liabilities

    (0.2 )%       (9,857,847
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     4,251,015,286   
   

 

 

    

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

65

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $3,685,798,886 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 642,572,166   

Unrealized Depreciation

     (67,497,919
  

 

 

 

Net Unrealized Appreciation

   $     575,074,247   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $343,545,868, which represents 8.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

04/2014

     454,126       Apigee Corp. PIPE Preferred    $ 9,689,753   

03/2015

     1,526,069       Birst, Inc. Series F Preferred      8,913,617   

02/2014

     387,642       Cloudera, Inc. Preferred      5,644,068   

02/2014

     19,187       DocuSign, Inc. Series B Preferred      251,971   

02/2014

     5,747       DocuSign, Inc. Series B-1 Preferred      75,472   

02/2014

     13,788       DocuSign, Inc. Series D Preferred      181,069   

02/2014

     356,583       DocuSign, Inc. Series E Preferred      4,682,791   

04/2015

     74,347       DocuSign, Inc. Series F Preferred      1,419,515   

02/2014

     2,428,921       Draftkings, Inc. Preferred      4,375,172   

05/2014

     5,668,755       Essence Holding Group Preferred      8,964,002   

11/2014

     443,446       Forward Ventures LLC Preferred      13,805,011   

08/2014

     116,585       Honest Co. Preferred      3,154,475   

08/2014

     272,032       Honest Co. Series C Convertible Preferred      7,360,451   

04/2015

     123,196       JAND Inc.      1,414,943   

04/2015

     275,096       JAND Inc. Series D Preferred      3,159,560   

08/2013

     4,106,956       Lithium Technology Corp.      20,017,304   

07/2014

     743,470       Lookout, Inc. Series F Preferred      8,492,732   

04/2015

     1,078,374       MarkLogic Corp. Series F Preferred      12,524,451   

04/2014

     158,587       New Relic, Inc. PIPE Series A Preferred      4,501,696   

04/2014

     1,478,828       Nomad Holdings Ltd.      14,773,492   

04/2014

     1,484,000       Nomad Holdings Ltd. Warrants      14,840   

08/2014

     610,175       Nutanix, Inc. Preferred      8,174,209   

01/2014

     923,832       One Kings Lane, Inc. Preferred      14,242,718   

03/2015

     282,178       Pinterest, Inc. Series G Preferred      10,128,909   

04/2014

     654,892       Pure Storage, Inc. Preferred      10,298,766   

12/2014

     2,437,006       Redfin Corp. Series G Preferred      8,036,515   

11/2013

     418,006       Tory Burch LLC Preferred      32,761,838   

06/2014

     2,311,920       Uber Technologies, Inc. Preferred      35,864,931   

08/2014

     566,228       Veracode, Inc. Preferred      10,455,910   

12/2014

     81,341       WeWork Companies, Inc.      1,354,422   

12/2014

     404,267       WeWork Companies, Inc. Class D-1 Preferred      6,731,514   

12/2014

     317,638       WeWork Companies, Inc. Class D-2 Preferred      5,289,041   

01/2015

     3,194,823       Zuora, Inc. Series F Preferred      12,138,091   
        

 

 

 
         $     288,893,249   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $343,545,868, which represents 8.0% of total net assets.

 

The accompanying notes are an integral part of these financial statements.

 

 

66

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market Value*      Unrealized
Appreciation/
(Depreciation)
 

JPY

   Sell      05/01/15       DEUT    $ 986,520       $ 984,688       $ 1,832   

JPY

   Sell      05/07/15       HSBC          1,530,342             1,526,075         4,267   
                 

 

 

 

Total

                  $     6,099   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

HSBC

   HSBC Bank USA
Currency Abbreviations:

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

PIPE

   Private Investment in Public Equity

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


The Hartford Growth Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 36,023,554       $ 36,023,554       $       $   

Capital Goods

     375,245,562         353,971,530                 21,274,032   

Commercial & Professional Services

     40,198,957         40,198,957                   

Consumer Durables & Apparel

     147,291,417         108,196,110         39,095,307           

Consumer Services

     227,606,413         227,606,413                   

Diversified Financials

     147,894,034         93,080,292         28,194,838         26,618,904   

Energy

     1,105,776         1,105,776                   

Food & Staples Retailing

     42,745,104         42,745,104                   

Food, Beverage & Tobacco

     43,317,848         43,317,848                   

Health Care Equipment & Services

     275,116,180         275,116,180                   

Insurance

     52,726,505         52,726,505                   

Materials

     79,417,391         79,417,391                   

Media

     53,062,117         53,062,117                   

Pharmaceuticals, Biotechnology & Life Sciences

     624,719,198         522,199,439         102,519,759           

Real Estate

     109,034,781         107,815,805                 1,218,976   

Retailing

     317,360,307         316,086,858                 1,273,449   

Semiconductors & Semiconductor Equipment

     47,313,916         47,313,916                   

Software & Services

     729,191,159         696,876,880         32,314,279           

Technology Hardware & Equipment

     386,134,861         386,134,861                   

Transportation

     116,402,963         116,402,963                   

Preferred Stocks

     282,464,725                         282,464,725   

Convertible Preferred Stocks

     6,985,782                         6,985,782   

Warrants

     3,710,000                         3,710,000   

Short-Term Investments

     115,804,583         115,804,583                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     4,260,873,133       $     3,715,203,082       $     202,124,183       $     343,545,868   
  

 

 

    

 

 

    

 

 

    

 

 

 

Foreign Currency Contracts(2)

   $ 6,099       $       $ 6,099       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,099       $       $ 6,099       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Convertible
Preferred Stock
     Preferred
Stock
    Warrants      Total  

Beginning balance

   $ 49,120,034      $     6,624,406       $     162,484,112      $       $     218,228,552   

Purchases

     7,439,903                86,521,396                93,961,299   

Sales

                    (24,404,568             (24,404,568

Accrued discounts/(premiums)

                                     

Total realized gain/(loss)

                    9,911,883                9,911,883   

Net change in unrealized appreciation/depreciation

     10,273,314        361,376         47,951,902        3,227,700         61,814,292   

Transfers into Level 3(1)

     15,165,372                       482,300         15,647,672   

Transfers out of Level 3(1)

     (31,613,262                            (31,613,262
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance

   $      50,385,361      $ 6,985,782       $ 282,464,725      $     3,710,000       $ 343,545,868   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $62,519,446.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  68  

 


The Hartford Healthcare Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Staples

     3.2

Health Care

     91.4   

Information Technology

     0.2   
  

 

 

 

Total

     94.8
  

 

 

 

Short-Term Investments

     6.4

Other Assets & Liabilities

     (1.2
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

69

 


The Hartford Healthcare Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.8%  
      Biotechnology - 25.3%  
  624,320     

Achillion Pharmaceuticals, Inc.(1)

  $ 5,462,800   
  111,030     

Acorda Therapeutics, Inc.(1)

    3,338,672   
  489,901     

Alkermes plc(1)

    27,125,818   
  162,160     

Alnylam Pharmaceuticals, Inc.(1)

    16,519,239   
  250,691     

Anacor Pharmaceuticals, Inc.(1)

    13,208,909   
  1,939,700     

Arena Pharmaceuticals, Inc.(1)

    8,457,092   
  728,296     

BioCryst Pharmaceuticals, Inc.(1)

    6,765,870   
  26,753     

Biogen, Inc.(1)

    10,003,749   
  11,900     

Blueprint Medicines Corp.(1)

    224,553   
  13,820     

Cellectis S.A. ADR(1)

    454,678   
  227,680     

Cepheid(1)

    12,772,848   
  468,843     

Dicerna Pharmaceuticals, Inc.(1)

    9,409,679   
  239,620     

Five Prime Therapeutics, Inc.(1)

    4,806,777   
  14,743     

Foundation Medicine, Inc.(1)

    670,954   
  369,384     

Galapagos N.V.(1)

    15,582,638   
  638,090     

Gilead Sciences, Inc.(1)

    64,134,426   
  386,096     

GlycoMimetics, Inc.(1)

    3,200,736   
  225,048     

Incyte Corp.(1)

    21,865,664   
  149,005     

Innate Pharma S.A.(1)

    2,608,461   
  14,120     

Invitae Corp.(1)

    154,614   
  347,610     

Ironwood Pharmaceuticals, Inc.(1)

    4,748,353   
  194,799     

Otonomy, Inc.(1)

    5,111,526   
  188,080     

Portola Pharmaceuticals, Inc.(1)

    6,712,575   
  86,030     

PTC Therapeutics, Inc.(1)

    5,054,262   
  88,502     

Regeneron Pharmaceuticals, Inc.(1)

    40,486,125   
  417,460     

Regulus Therapeutics, Inc.(1)

    5,239,123   
  754,190     

Rigel Pharmaceuticals, Inc.(1)

    3,212,849   
  71,284     

Seattle Genetics, Inc.(1)

    2,447,893   
  27,190     

Synageva BioPharma Corp.(1)

    2,500,392   
  175,290     

T2 Biosystems, Inc.(1)

    2,711,736   
  314,433     

TESARO, Inc.(1)

    17,127,166   
  397,972     

Trevana, Inc.(1)

    2,455,487   
  140,793     

Vertex Pharmaceuticals, Inc.(1)

    17,356,961   
   

 

 

 
      341,932,625   
   

 

 

 
      Drug Retail - 3.1%  
  247,690     

CVS Health Corp.

    24,593,140   
  39,630     

Diplomat Pharmacy, Inc.(1)

    1,419,547   
  196,750     

Walgreens Boots Alliance, Inc.

    16,316,477   
   

 

 

 
      42,329,164   
   

 

 

 
      Health Care Services - 1.1%  
  399,746     

Envision Healthcare Holdings, Inc.(1)

    15,174,358   
   

 

 

 
      Health Care Distributors - 5.1%  
  280,910     

Cardinal Health, Inc.

    23,691,949   
  202,570     

McKesson Corp.

    45,254,138   
   

 

 

 
      68,946,087   
   

 

 

 
      Health Care Equipment - 18.1%  
  438,130     

Abbott Laboratories

    20,337,995   
  288,550     

AtriCure, Inc.(1)

    6,350,985   
  82,890     

Becton Dickinson and Co.

    11,676,714   
  1,640,590     

Boston Scientific Corp.(1)

    29,235,314   
  278,585     

Globus Medical, Inc. Class A(1)

    6,655,396   
  86,525     

HeartWare International, Inc.(1)

    6,550,808   
  580,580     

K2M Group Holdings, Inc.(1)

    12,197,986   
  893,709     

Medtronic plc

    66,536,635   
  381,972     

St. Jude Medical, Inc.

    26,757,138   
  228,700     

Stryker Corp.

    21,095,288   
  80,932     

Teleflex, Inc.

    9,951,399   
  203,873     

Tornier N.V.(1)

    5,274,194   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.8% - (continued)  
      Health Care Equipment - 18.1% - (continued)  
  609,237     

TriVascular Techonologies, Inc.(1)

  $ 4,447,430   
  158,533     

Zimmer Holdings, Inc.

    17,413,265   
   

 

 

 
      244,480,547   
   

 

 

 
      Health Care Facilities - 5.6%  
  112,730     

Acadia Healthcare Co., Inc.(1)

    7,722,005   
  470,061     

Al Noor Hospitals Group plc

    6,479,460   
  424,220     

HCA Holdings, Inc.(1)

    31,396,522   
  587,058     

NMC Health plc

    6,866,639   
  2,751,930     

Phoenix Healthcare Group Co., Ltd.

    5,678,682   
  860,320     

Spire Healthcare Group plc(1)

    4,213,405   
  107,620     

Universal Health Services, Inc. Class B

    12,586,159   
   

 

 

 
      74,942,872   
   

 

 

 
      Health Care Supplies - 0.7%  
  117,206     

Dentsply International, Inc.

    5,977,506   
  199,610     

Endologix, Inc.(1)

    3,105,932   
   

 

 

 
      9,083,438   
   

 

 

 
      Health Care Technology - 1.7%  
  347,994     

Allscripts Healthcare Solutions, Inc.(1)

    4,628,320   
  74,090     

athenahealth, Inc.(1)

    9,087,879   
  203,750     

Castlight Health, Inc. Class B(1)

    1,534,238   
  271,240     

IMS Health Holdings, Inc.(1)

    7,483,512   
   

 

 

 
      22,733,949   
   

 

 

 
      Internet Software & Services - 0.2%  
  255,953     

Everyday Health, Inc.(1)

    3,137,984   
   

 

 

 
      Life Sciences Tools & Services - 3.4%  
  166,770     

Agilent Technologies, Inc.

    6,899,275   
  40,879     

MorphoSys AG(1)

    2,941,090   
  229,470     

PRA Health Sciences, Inc.(1)

    6,535,306   
  91,860     

Quintiles Transnational Holdings, Inc(1)

    6,051,737   
  126,680     

Thermo Fisher Scientific, Inc.

    15,921,142   
  188,850     

WuXi PharmaTech Cayman, Inc. ADR(1)

    8,152,654   
   

 

 

 
      46,501,204   
   

 

 

 
      Managed Health Care - 6.7%  
  382,360     

Aetna, Inc.

    40,862,813   
  239,520     

Cigna Corp.

    29,853,773   
  228,800     

Qualicorp S.A.(1)

    1,883,284   
  156,620     

UnitedHealth Group, Inc.

    17,447,468   
   

 

 

 
      90,047,338   
   

 

 

 
      Pharmaceuticals - 23.8%  
  191,500     

Actavis plc(1)

    54,167,690   
  398,657     

Aerie Pharmaceuticals, Inc.(1)

    3,843,053   
  121,645     

Almirall S.A.(1)

    2,293,574   
  292,510     

AstraZeneca plc ADR

    20,031,085   
  1,249,050     

Bristol-Myers Squibb Co.

    79,601,957   
  332,500     

Daiichi Sankyo Co., Ltd.

    5,775,088   
  163,800     

Eisai Co., Ltd.

    10,918,481   
  309,250     

Eli Lilly & Co.

    22,225,798   
  74,970     

Johnson & Johnson

    7,437,024   
  305,017     

Medicines Co.(1)

    7,811,485   
  285,140     

MediWound Ltd.(1)

    1,682,326   
  340,040     

Merck & Co., Inc.

    20,252,782   
  265,720     

Mylan N.V.(1)

    19,200,927   
  167,722     

Ocular Therapeutix, Inc.(1)

    3,681,498   
  47,500     

Ono Pharmaceutical Co., Ltd.

    5,148,008   
  630,000     

Shionogi & Co., Ltd.

    20,767,743   
  315,731     

Tetraphase Pharmaceuticals, Inc.(1)

    11,138,990   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  70  

 


The Hartford Healthcare Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.8% - (continued)  
      Pharmaceuticals - 23.8% - (continued)  
  201,186     

Teva Pharmaceutical Industries Ltd. ADR

  $ 12,155,658   
  143,314     

UCB S.A.

    10,323,315   
  415,531     

XenoPort, Inc.(1)

    2,464,099   
   

 

 

 
      320,920,581   
   

 

 

 
 

Total Common Stocks
(cost $904,494,087)

  $ 1,280,230,147   
   

 

 

 
 

Total Long-Term Investments
(cost $904,494,087)

  $ 1,280,230,147   
   

 

 

 
SHORT-TERM INVESTMENTS - 6.4%  
      Other Investment Pools & Funds - 5.1%      
  68,579,810     

Federated Prime Obligations Fund

  $     68,579,810   
   

 

 

 
      U.S. Government Agencies - 1.3%      
 

FHLB

 
  18,000,000     

0.18%, 05/22/2015

    17,999,676   
   

 

 

 
 

Total Short-Term Investments
(cost $86,579,023)

  $ 86,579,486   
   

 

 

 
 

Total Investments
(cost $991,073,110)^

    101.2    $ 1,366,809,633   
 

Other Assets and Liabilities

    (1.2 )%       (16,151,740
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,350,657,893   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

71

 


The Hartford Healthcare Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $995,468,205 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 390,083,452   

Unrealized Depreciation

     (18,742,024
  

 

 

 

Net Unrealized Appreciation

   $     371,341,428   
  

 

 

 

 

(1)  Non-income producing.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

     Delivery
Date
     Counterparty    Contract
Amount
     Market Value*      Unrealized
Appreciation/
(Depreciation)
 

BRL

     Buy         05/05/15       MSC    $ 29,690       $ 29,186       $ (504

EUR

     Buy         05/05/15       WEST      493,452         494,968             1,516   

EUR

     Buy         05/06/15       WEST      35,188         35,296         108   

GBP

     Buy         05/05/15       TDB      153,119         153,359         240   

HKD

     Buy         05/05/15       UBS      89,417         89,424         7   

JPY

     Buy         05/08/15       DEUT          672,501             669,849         (2,652
                 

 

 

 

Total

                  $ (1,285
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

MSC

   Morgan Stanley

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

BRL

   Brazilian Real

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

FHLB

   Federal Home Loan Bank
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  72  

 


The Hartford Healthcare Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Biotechnology

   $ 341,932,625      $ 339,324,164       $ 2,608,461      $   

Drug Retail

     42,329,164        42,329,164                  

Health Care Services

     15,174,358        15,174,358                  

Health Care Distributors

     68,946,087        68,946,087                  

Health Care Equipment

     244,480,547        244,480,547                  

Health Care Facilities

     74,942,872        65,050,785         9,892,087          

Health Care Supplies

     9,083,438        9,083,438                  

Health Care Technology

     22,733,949        22,733,949                  

Internet Software & Services

     3,137,984        3,137,984                  

Life Sciences Tools & Services

     46,501,204        43,560,114         2,941,090          

Managed Health Care

     90,047,338        90,047,338                  

Pharmaceuticals

     320,920,581        265,694,372         55,226,209          

Short-Term Investments

     86,579,486        68,579,810         17,999,676          
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     1,366,809,633      $     1,278,142,110       $     88,667,523      $     —   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 1,871      $       $ 1,871      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,871      $       $ 1,871      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (3,156   $       $ (3,156   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (3,156   $       $ (3,156   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $3,436,396 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

73

 


The Hartford MidCap Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     9.5

Consumer Staples

     2.4   

Energy

     7.1   

Financials

     13.8   

Health Care

     18.6   

Industrials

     21.5   

Information Technology

     21.9   

Materials

     3.0   

Utilities

     1.9   
  

 

 

 

Total

     99.7
  

 

 

 

Short-Term Investments

     0.4

Other Assets & Liabilities

     (0.1
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

74

 


The Hartford MidCap Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7%  
      Automobiles & Components - 1.3%  
  1,103,083     

Harley-Davidson, Inc.

  $ 62,004,295   
   

 

 

 
      Banks - 3.6%  
  223,197     

Cullen/Frost Bankers, Inc.

    16,279,989   
  469,902     

East West Bancorp, Inc.

    19,073,322   
  833,638     

First Republic Bank

    48,592,759   
  731,443     

M&T Bank Corp.

    87,531,784   
   

 

 

 
      171,477,854   
   

 

 

 
      Capital Goods - 8.0%  
  1,799,017     

Allison Transmission Holdings, Inc.

    55,193,842   
  505,333     

Colfax Corp.(1)

    25,059,463   
  628,929     

IDEX Corp.

    47,175,964   
  856,258     

Jacobs Engineering Group, Inc.(1)

    36,699,218   
  812,284     

Lennox International, Inc.

    86,069,613   
  663,484     

MSC Industrial Direct Co., Inc. Class A

    47,147,173   
  701,479     

PACCAR, Inc.

    45,841,653   
  369,729     

Pall Corp.

    35,982,026   
   

 

 

 
      379,168,952   
   

 

 

 
      Commercial & Professional Services - 9.8%  
  760,327     

Clean Harbors, Inc.(1)

    42,008,067   
  1,347,755     

Equifax, Inc.

    130,637,892   
  1,040,098     

ManpowerGroup, Inc.

    88,751,562   
  2,008,691     

Robert Half International, Inc.

    111,381,916   
  708,202     

TriNet Group, Inc.(1)

    24,801,234   
  1,477,833     

Waste Connections, Inc.

    70,064,063   
   

 

 

 
      467,644,734   
   

 

 

 
      Consumer Durables & Apparel - 2.5%  
  264,709     

Harman International Industries, Inc.

    34,512,760   
  63,170     

NVR, Inc.(1)

    83,794,373   
   

 

 

 
      118,307,133   
   

 

 

 
      Diversified Financials - 4.4%  
  620,471     

Invesco Ltd.

    25,699,909   
  370,468     

Moody’s Corp.

    39,832,719   
  685,396     

MSCI, Inc.

    41,939,381   
  707,383     

Northern Trust Corp.

    51,745,067   
  1,060,844     

SEI Investments Co.

    48,438,137   
   

 

 

 
      207,655,213   
   

 

 

 
      Energy - 7.1%  
  277,697     

Cimarex Energy Co.

    34,545,507   
  2,878,258     

Cobalt International Energy, Inc.(1)

    30,797,361   
  340,414     

Diamondback Energy, Inc.(1)

    28,107,984   
  584,271     

Energen Corp.

    41,582,567   
  579,699     

Gulfport Energy Corp.(1)

    28,370,469   
  1,281,333     

Laredo Petroleum, Inc.(1)

    20,245,061   
  1,661,939     

Memorial Resource Development Corp.(1)

    33,554,548   
  1,817,554     

Patterson-UTI Energy, Inc.

    40,622,332   
  155,287     

Pioneer Natural Resources Co.

    26,830,488   
  1,345,848     

QEP Resources, Inc.

    30,281,580   
  424,471     

World Fuel Services Corp.

    23,558,141   
   

 

 

 
      338,496,038   
   

 

 

 
      Food & Staples Retailing - 0.6%  
  378,146     

PriceSmart, Inc.

    30,425,627   
   

 

 

 
      Food, Beverage & Tobacco - 1.8%  
  611,244     

Monster Beverage Corp.(1)

    83,807,665   
   

 

 

 
      Health Care Equipment & Services - 9.3%  
  1,530,277     

Envision Healthcare Holdings, Inc.(1)

    58,089,315   
  1,509,281     

IMS Health Holdings, Inc.(1)

    41,641,063   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7% - (continued)  
      Health Care Equipment & Services - 9.3% - (continued)  
  559,205     

MEDNAX, Inc.(1)

  $ 39,580,530   
  652,028     

Omnicare, Inc.

    57,365,423   
  935,543     

Patterson Cos., Inc.

    43,928,422   
  563,705     

Sirona Dental Systems, Inc.(1)

    52,283,639   
  711,801     

Team Health Holdings, Inc.(1)

    42,401,986   
  647,633     

Universal Health Services, Inc. Class B

    75,740,679   
  358,665     

Varian Medical Systems, Inc.(1)

    31,867,385   
   

 

 

 
      442,898,442   
   

 

 

 
      Insurance - 5.8%  
  118,394     

Alleghany Corp.(1)

    56,061,927   
  94,315     

Fairfax Financial Holdings Ltd.

    51,515,612   
  133,983     

Markel Corp.(1)

    99,233,169   
  51,765     

White Mountains Insurance Group Ltd.

    34,991,587   
  671,079     

WR Berkley Corp.

    32,876,160   
   

 

 

 
      274,678,455   
   

 

 

 
      Materials - 3.0%  
  486,275     

Ball Corp.

    35,697,448   
  557,889     

Packaging Corp. of America

    38,600,340   
  117,381     

Sherwin-Williams Co.

    32,631,918   
  634,156     

Silgan Holdings, Inc.

    34,161,983   
   

 

 

 
      141,091,689   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 9.3%  
  247,141     

Agios Pharmaceuticals, Inc.(1)

    22,821,000   
  1,513,508     

Alkermes plc(1)

    83,802,938   
  405,771     

Alnylam Pharmaceuticals, Inc.(1)

    41,335,892   
  579,444     

Incyte Corp.(1)

    56,298,779   
  1,883,028     

Ironwood Pharmaceuticals, Inc.(1)

    25,722,162   
  265,082     

Jazz Pharmaceuticals plc(1)

    47,370,153   
  434,345     

Medivation, Inc.(1)

    52,442,815   
  139,171     

Mettler-Toledo International, Inc.(1)

    44,118,599   
  106,715     

Puma Biotechnology, Inc.(1)

    19,270,595   
  383,411     

Waters Corp.(1)

    47,999,223   
   

 

 

 
      441,182,156   
   

 

 

 
      Retailing - 5.7%  
  799,798     

Advance Auto Parts, Inc.

    114,371,114   
  1,283,650     

CarMax, Inc.(1)

    87,429,402   
  236,552     

Tiffany & Co.

    20,693,569   
  583,490     

TripAdvisor, Inc.(1)

    46,965,110   
   

 

 

 
      269,459,195   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 1.1%  
  456,528     

First Solar, Inc.(1)

    27,241,026   
  839,727     

SunPower Corp.(1)

    27,030,812   
   

 

 

 
      54,271,838   
   

 

 

 
      Software & Services - 14.0%  
  1,270,349     

Akamai Technologies, Inc.(1)

    93,726,349   
  452,438     

Factset Research Systems, Inc.

    71,209,217   
  5,671,182     

Genpact Ltd.(1)

    123,972,039   
  1,845,830     

HomeAway, Inc.(1)

    51,590,948   
  1,477,333     

Pandora Media, Inc.(1)

    26,355,621   
  772,093     

Solera Holdings, Inc.

    37,461,952   
  2,927,734     

Vantiv, Inc. Class A(1)

    114,474,399   
  720,672     

VeriSign, Inc.(1)

    45,769,879   
  535,034     

WEX, Inc.(1)

    60,303,682   
  901,788     

Yelp, Inc.(1)

    35,521,429   
  70,395     

Zillow Group, Inc. Class A(1)

    6,873,368   
   

 

 

 
      667,258,883   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

75

 


The Hartford MidCap Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7% - (continued)  
      Technology Hardware & Equipment - 6.8%  
  877,527     

Amphenol Corp. Class A

  $ 48,588,670   
  1,081,523     

CDW Corp. of Delaware

    41,443,961   
  395,934     

F5 Networks, Inc.(1)

    48,311,867   
  264,584     

FEI Co.

    19,965,509   
  2,291,224     

National Instruments Corp.

    65,529,006   
  1,580,436     

Nimble Storage, Inc.(1)

    38,657,464   
  2,290,539     

Trimble Navigation Ltd.(1)

    58,248,407   
   

 

 

 
      320,744,884   
   

 

 

 
      Transportation - 3.7%      
  81,494     

AMERCO

    26,244,328   
  672,334     

Genesee & Wyoming, Inc. Class A(1)

    62,493,445   
  636,387     

J.B. Hunt Transport Services, Inc.

    55,492,946   
  1,627,084     

JetBlue Airways Corp.(1)

    33,404,035   
   

 

 

 
      177,634,754   
   

 

 

 
      Utilities - 1.9%      
  331,069     

Eversource Energy

    16,142,924   
  1,594,515     

UGI Corp.

    55,505,067   
  411,015     

Wisconsin Energy Corp.

    20,189,057   
   

 

 

 
      91,837,048   
   

 

 

 
 

Total Common Stocks
(cost $3,570,914,045)

  $ 4,740,044,855   
   

 

 

 
 

Total Long-Term Investments
(cost $3,570,914,045)

  $ 4,740,044,855   
   

 

 

 
SHORT-TERM INVESTMENTS - 0.4%  
      Other Investment Pools & Funds - 0.4%  
  16,849,100     

BlackRock Liquidity Funds TempFund Portfolio

  $ 16,849,100   
   

 

 

 
 

Total Short-Term Investments
(cost $16,849,100)

  $ 16,849,100   
   

 

 

 
 

Total Investments
(cost $3,587,763,145)^

    100.1    $ 4,756,893,955   
 

Other Assets and Liabilities

    (0.1 )%       (4,851,431
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     4,752,042,524   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

76

 


The Hartford MidCap Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $3,594,472,967 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 1,256,977,910   

Unrealized Depreciation

     (94,556,922
  

 

 

 

Net Unrealized Appreciation

   $     1,162,420,988   
  

 

 

 

 

(1)  Non-income producing.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

77

 


The Hartford MidCap Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 62,004,295       $ 62,004,295       $       $   

Banks

     171,477,854         171,477,854                   

Capital Goods

     379,168,952         379,168,952                   

Commercial & Professional Services

     467,644,734         467,644,734                   

Consumer Durables & Apparel

     118,307,133         118,307,133                   

Diversified Financials

     207,655,213         207,655,213                   

Energy

     338,496,038         338,496,038                   

Food & Staples Retailing

     30,425,627         30,425,627                   

Food, Beverage & Tobacco

     83,807,665         83,807,665                   

Health Care Equipment & Services

     442,898,442         442,898,442                   

Insurance

     274,678,455         274,678,455                   

Materials

     141,091,689         141,091,689                   

Pharmaceuticals, Biotechnology & Life Sciences

     441,182,156         441,182,156                   

Retailing

     269,459,195         269,459,195                   

Semiconductors & Semiconductor Equipment

     54,271,838         54,271,838                   

Software & Services

     667,258,883         667,258,883                   

Technology Hardware & Equipment

     320,744,884         320,744,884                   

Transportation

     177,634,754         177,634,754                   

Utilities

     91,837,048         91,837,048                   

Short-Term Investments

     16,849,100         16,849,100                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     4,756,893,955       $     4,756,893,955       $         —       $         —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

78

 


The Hartford MidCap Value Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     14.3

Consumer Staples

     2.3   

Energy

     5.7   

Financials

     26.8   

Health Care

     7.8   

Industrials

     15.5   

Information Technology

     11.9   

Materials

     8.9   

Utilities

     5.3   
  

 

 

 

Total

     98.5
  

 

 

 

Short-Term Investments

     1.7

Other Assets & Liabilities

     (0.2
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

79

 


The Hartford MidCap Value Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.5%  
      Automobiles & Components - 1.1%  
  199,600     

Goodyear Tire & Rubber Co.

  $ 5,661,654   
   

 

 

 
      Banks - 8.1%  
  215,728     

BankUnited, Inc.

    7,088,822   
  114,100     

CIT Group, Inc.

    5,137,923   
  176,600     

Comerica, Inc.

    8,372,606   
  121,600     

EverBank Financial Corp.

    2,258,112   
  103,900     

IBERIABANK Corp.

    6,474,009   
  51,000     

South State Corp.

    3,453,720   
  316,000     

Zions Bancorporation

    8,953,860   
   

 

 

 
      41,739,052   
   

 

 

 
      Capital Goods - 15.5%  
  255,725     

Barnes Group, Inc.

    10,254,573   
  75,200     

Curtiss-Wright Corp.

    5,494,112   
  68,625     

Esterline Technologies Corp.(1)

    7,637,276   
  154,400     

Generac Holdings, Inc.(1)

    6,436,936   
  78,300     

Hubbell, Inc. Class B

    8,521,389   
  123,600     

Moog, Inc. Class A(1)

    8,637,168   
  106,721     

Orbital ATK, Inc.

    7,807,708   
  224,315     

Rexel S.A.

    4,227,583   
  419,300     

Sanwa Holdings Corp.

    3,164,614   
  130,400     

Sensata Technologies Holding N.V.(1)

    7,199,384   
  13,800     

Teledyne Technologies, Inc.(1)

    1,448,586   
  118,200     

WESCO International, Inc.(1)

    8,526,948   
   

 

 

 
      79,356,277   
   

 

 

 
      Consumer Durables & Apparel - 7.9%  
  175,700     

D.R. Horton, Inc.

    4,462,780   
  185,500     

Lennar Corp. Class A

    8,495,900   
  294,606     

Newell Rubbermaid, Inc.

    11,233,327   
  385,600     

Performance Sports Group Ltd.(1)

    7,827,680   
  585,000     

Samsonite International S.A.

    2,133,593   
  176,900     

Toll Brothers, Inc.(1)

    6,287,026   
   

 

 

 
      40,440,306   
   

 

 

 
      Consumer Services - 1.5%  
  161,100     

Norwegian Cruise Line Holdings Ltd.(1)

    7,814,961   
   

 

 

 
      Diversified Financials - 1.7%  
  71,900     

LPL Financial Holdings, Inc.

    2,909,793   
  90,900     

MSCI, Inc.

    5,562,171   
  182,200     

Solar Cayman Ltd.(1)(2)(3)(4)

    12,754   
   

 

 

 
      8,484,718   
   

 

 

 
      Energy - 5.7%  
  449,646     

Cobalt International Energy, Inc.(1)

    4,811,212   
  118,100     

Diamondback Energy, Inc.(1)

    9,751,517   
  86,800     

HollyFrontier Corp.

    3,366,104   
  218,843     

Laredo Petroleum, Inc.(1)

    3,457,720   
  57,600     

Newfield Exploration Co.(1)

    2,260,224   
  193,600     

QEP Resources, Inc.

    4,356,000   
  334,500     

Trican Well Service Ltd.

    1,413,966   
   

 

 

 
      29,416,743   
   

 

 

 
      Food, Beverage & Tobacco - 2.3%  
  96,682     

Ebro Foods S.A.

    1,875,452   
  81,300     

Ingredion, Inc.

    6,455,220   
  788,236     

Treasury Wine Estates Ltd.

    3,457,017   
   

 

 

 
      11,787,689   
   

 

 

 
      Health Care Equipment & Services - 2.7%  
  264,078     

Brookdale Senior Living, Inc.(1)

    9,567,546   
  53,200     

WellCare Health Plans, Inc.(1)

    4,119,276   
   

 

 

 
      13,686,822   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.5% - (continued)  
      Insurance - 8.2%  
  111,800     

Argo Group International Holdings Ltd.

  $ 5,477,082   
  116,100     

Hanover Insurance Group, Inc.

    7,960,977   
  111,442     

Reinsurance Group of America, Inc.

    10,210,316   
  1,600     

StanCorp Financial Group, Inc.

    115,328   
  298,577     

Unum Group

    10,199,390   
  213,300     

XL Group plc

    7,909,164   
   

 

 

 
      41,872,257   
   

 

 

 
      Materials - 8.9%  
  144,500     

Cabot Corp.

    6,175,930   
  117,400     

Celanese Corp. Series A

    7,790,664   
  242,600     

Huntsman Corp.

    5,591,930   
  470,800     

Louisiana-Pacific Corp.(1)

    7,174,992   
  227,984     

Methanex Corp.

    13,726,917   
  43,000     

Packaging Corp. of America

    2,975,170   
  36,800     

Reliance Steel & Aluminum Co.

    2,381,696   
   

 

 

 
      45,817,299   
   

 

 

 
      Media - 2.4%  
  35,800     

AMC Entertainment Holdings, Inc. Class A

    1,076,148   
  297,700     

Interpublic Group of Cos., Inc.

    6,204,068   
  175,700     

Quebecor, Inc. Class B

    4,831,932   
   

 

 

 
      12,112,148   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 5.1%  
  565,539     

Almirall S.A.(1)

    10,663,041   
  83,400     

Ono Pharmaceutical Co., Ltd.

    9,038,819   
  31,590     

UCB S.A.

    2,275,518   
  90,700     

WuXi PharmaTech Cayman, Inc. ADR(1)

    3,915,519   
   

 

 

 
      25,892,897   
   

 

 

 
      Real Estate - 8.8%  
  160,100     

American Assets Trust, Inc. REIT

    6,371,980   
  236,800     

Blackstone Mortgage Trust, Inc. Class A REIT

    7,276,864   
  171,800     

Equity LifeStyle Properties, Inc. REIT

    9,074,476   
  130,500     

Extra Space Storage, Inc. REIT

    8,603,865   
  281,200     

Forest City Enterprises, Inc. Class A(1)

    6,681,312   
  14,400     

Plum Creek Timber Co., Inc. REIT

    607,680   
  54,900     

SL Green Realty Corp. REIT

    6,717,564   
   

 

 

 
      45,333,741   
   

 

 

 
      Retailing - 1.4%  
  193,500     

DSW, Inc. Class A

    7,018,245   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 4.2%  
  295,600     

Microsemi Corp.(1)

    9,861,216   
  110,175     

Qorvo, Inc.(1)

    7,261,635   
  49,017     

Synaptics, Inc.(1)

    4,152,720   
   

 

 

 
      21,275,571   
   

 

 

 
      Software & Services - 4.0%  
  194,400     

Booz Allen Hamilton Holding Corp.

    5,346,000   
  60,000     

Check Point Software Technologies Ltd. ADR(1)

    5,008,800   
  162,352     

Verint Systems, Inc.(1)

    9,973,283   
   

 

 

 
      20,328,083   
   

 

 

 
      Technology Hardware & Equipment - 3.7%  
  258,000     

ARRIS Group, Inc.(1)

    8,688,150   
  176,371     

Arrow Electronics, Inc.(1)

    10,531,112   
   

 

 

 
      19,219,262   
   

 

 

 
      Utilities - 5.3%  
  47,700     

Alliant Energy Corp.

    2,884,419   
  168,500     

Great Plains Energy, Inc.

    4,411,330   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


The Hartford MidCap Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.5% - (continued)  
      Utilities - 5.3% - (continued)  
  193,000     

Portland General Electric Co.

  $ 6,785,880   
  230,102     

UGI Corp.

    8,009,851   
  131,200     

Westar Energy, Inc.

    4,939,680   
   

 

 

 
      27,031,160   
   

 

 

 
 

Total Common Stocks
(cost $407,155,886)

  $ 504,288,885   
   

 

 

 
 

Total Long-Term Investments
(cost $407,155,886)

  $ 504,288,885   
   

 

 

 
SHORT-TERM INVESTMENTS - 1.7%  
      Other Investment Pools & Funds - 1.7%  
  8,595,037     

Federated Prime Obligations Fund

  $ 8,595,037   
   

 

 

 
 

Total Short-Term Investments
(cost $8,595,037)

  $ 8,595,037   
   

 

 

 
 

Total Investments
(cost $415,750,923)^

    100.2    $ 512,883,922   
 

Other Assets and Liabilities

    (0.2 )%       (867,809
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     512,016,113   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

81

 


The Hartford MidCap Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $417,569,637 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     105,266,579   

Unrealized Depreciation

     (9,952,294
  

 

 

 

Net Unrealized Appreciation

   $ 95,314,285   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of this security was $12,754, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At April 30, 2015, the aggregate value of this security was $12,754, which represents 0.0% of total net assets.

 

(4)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
03/2007      182,200       Solar Cayman Ltd.    $     53,400   

At April 30, 2015, the aggregate value of this security was $12,754, which represents 0.0% of total net assets.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/05/15       DEUT    $ 6,591       $ 6,590       $ (1

CAD

   Buy      05/04/15       CBA          11,225             11,177         (48

EUR

   Buy      05/05/15       WEST      8,328         8,354         26   

EUR

   Buy      05/06/15       WEST      3,747         3,758         11   

HKD

   Buy      05/05/15       UBS      4,419         4,419           

JPY

   Buy      05/08/15       DEUT      6,036         6,012         (24
                 

 

 

 

Total

                  $     (36
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

CBA

   Commonwealth Bank of Australia

DEUT

   Deutsche Bank Securities, Inc.

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

AUD

   Australian Dollar

CAD

   Canadian Dollar

EUR

   Euro

HKD

   Hong Kong Dollar

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  82  

 


The Hartford MidCap Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Automobiles & Components

   $ 5,661,654      $ 5,661,654       $      $   

Banks

     41,739,052        41,739,052                  

Capital Goods

     79,356,277        71,964,080         7,392,197          

Consumer Durables & Apparel

     40,440,306        38,306,713         2,133,593          

Consumer Services

     7,814,961        7,814,961                  

Diversified Financials

     8,484,718        8,471,964                12,754   

Energy

     29,416,743        29,416,743                  

Food, Beverage & Tobacco

     11,787,689        6,455,220         5,332,469          

Health Care Equipment & Services

     13,686,822        13,686,822                  

Insurance

     41,872,257        41,872,257                  

Materials

     45,817,299        45,817,299                  

Media

     12,112,148        12,112,148                  

Pharmaceuticals, Biotechnology & Life Sciences

     25,892,897        3,915,519         21,977,378          

Real Estate

     45,333,741        45,333,741                  

Retailing

     7,018,245        7,018,245                  

Semiconductors & Semiconductor Equipment

     21,275,571        21,275,571                  

Software & Services

     20,328,083        20,328,083                  

Technology Hardware & Equipment

     19,219,262        19,219,262                  

Utilities

     27,031,160        27,031,160                  

Short-Term Investments

     8,595,037        8,595,037                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     512,883,922      $     476,035,531       $     36,835,637      $     12,754   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 37      $       $ 37      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 37      $       $ 37      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (73   $       $ (73   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (73   $       $ (73   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks      Total  

Beginning balance

   $ 12,754       $ 12,754   

Purchases

               

Sales

               

Accrued discounts/(premiums)

               

Total realized gain/(loss)

               

Net change in unrealized appreciation/(depreciation)

               

Transfers into Level 3(1)

               

Transfers out of Level 3(1)

               
  

 

 

    

 

 

 

Ending balance

   $     12,754       $     12,754   

The change in net unrealized appreciation/(depreciation) relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  83  

 


The Hartford Small Company Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     13.8

Consumer Staples

     1.2   

Energy

     2.8   

Financials

     10.4   

Health Care

     19.5   

Industrials

     19.4   

Information Technology

     27.7   

Materials

     4.5   

Utilities

     0.1   
  

 

 

 

Total

     99.4
  

 

 

 

Short-Term Investments

     0.6

Other Assets & Liabilities

     0.0   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

84

 


The Hartford Small Company Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1%  
      Automobiles & Components - 0.7%      
  23,954     

Dana Holding Corp.

  $ 516,688   
  79,935     

Gentherm, Inc.(1)

    4,214,972   
  5,296     

Standard Motor Products, Inc.

    200,189   
  15,676     

Tenneco Automotive, Inc.(1)

    916,262   
  559     

Tesla Motors, Inc.(1)

    126,362   
  12,500     

Winnebago Industries, Inc.

    258,875   
   

 

 

 
      6,233,348   
   

 

 

 
      Banks - 1.5%      
  5,268     

Bank of Marin Bancorp

    265,613   
  21,837     

Blue Hills Bancorp, Inc.(1)

    293,053   
  22,780     

Clifton Bancorp, Inc.

    310,947   
  48,243     

EverBank Financial Corp.

    895,872   
  25,550     

First Merchants Corp.

    576,663   
  23,435     

Flushing Financial Corp.

    449,015   
  12,900     

Great Western Bancorp, Inc.

    282,123   
  17,283     

Heritage Financial Corp. of Washington

    292,083   
  46,545     

MGIC Investment Corp.(1)

    484,999   
  205,845     

PacWest Bancorp

    9,283,609   
  9,470     

Sandy Spring Bancorp, Inc.

    246,788   
  13,132     

TriCo Bancshares

    306,238   
  15,355     

Wintrust Financial Corp.

    748,403   
  3,082     

WSFS Financial Corp.

    219,346   
   

 

 

 
      14,654,752   
   

 

 

 
      Capital Goods - 12.5%      
  9,463     

A.O. Smith Corp.

    604,686   
  20,319     

AAON, Inc.

    487,046   
  66,040     

Acuity Brands, Inc.

    11,025,378   
  275,879     

Advanced Drainage Systems, Inc.

    7,724,612   
  252,541     

AECOM(1)

    7,970,194   
  3,990     

Alamo Group, Inc.

    246,502   
  243,388     

Altra Industrial Motion Corp.

    6,418,142   
  113,005     

Applied Industrial Technologies, Inc.

    4,720,219   
  100,837     

Astronics Corp.(1)

    6,787,339   
  1,824     

Astronics Corp. Class B(1)

    125,582   
  11,229     

AZZ, Inc.

    520,913   
  11,431     

CAI International, Inc.(1)

    272,286   
  1,998     

Carlisle Cos., Inc.

    192,807   
  4,033     

Crane Co.

    246,457   
  323,635     

DigitalGlobe, Inc.(1)

    10,411,338   
  6,885     

EMCOR Group, Inc.

    307,278   
  4,155     

Esterline Technologies Corp.(1)

    462,410   
  266,219     

Generac Holdings, Inc.(1)

    11,098,670   
  10,938     

H & E Equipment Services, Inc.

    270,387   
  342,021     

HD Supply Holdings, Inc.(1)

    11,286,693   
  14,430     

Heico Corp. Class A

    661,904   
  15,033     

Insteel Industries, Inc.

    304,569   
  7,578     

Lennox International, Inc.

    802,965   
  18,606     

Luxfer Holdings plc ADR

    239,087   
  7,775     

Lydall, Inc.(1)

    208,681   
  206,396     

Masonite International Corp.(1)

    13,663,415   
  8,620     

Moog, Inc. Class A(1)

    602,366   
  14,126     

NN, Inc.

    355,410   
  217,096     

Owens Corning

    8,392,931   
  51,815     

Teledyne Technologies, Inc.(1)

    5,439,021   
  8,609     

Textainer Group Holdings Ltd.

    260,853   
  31,229     

Titan International, Inc.

    324,469   
  9,470     

Toro Co.

    634,869   
  119,917     

Watts Water Technologies, Inc. Class A

    6,541,472   
   

 

 

 
      119,610,951   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Commercial & Professional Services - 2.1%      
  21,500     

CECO Environmental Corp.

  $ 253,485   
  10,168     

Deluxe Corp.

    658,378   
  8,970     

Exponent, Inc.

    794,832   
  10,252     

Gategroup Holding AG

    359,334   
  16,250     

GP Strategies Corp.(1)

    529,588   
  18,586     

Heritage Crystal Clean, Inc.(1)

    217,828   
  15,910     

On Assignment, Inc.(1)

    535,371   
  311,215     

TriNet Group, Inc.(1)

    10,898,749   
  120,336     

WageWorks, Inc.(1)

    6,064,934   
   

 

 

 
      20,312,499   
   

 

 

 
      Consumer Durables & Apparel - 4.8%      
  13,020     

Arctic Cat, Inc.

    462,080   
  26,627     

Crocs, Inc.(1)

    351,476   
  151,700     

GoPro, Inc. Class A(1)

    7,597,136   
  9,495     

iRobot Corp.(1)

    307,828   
  318,927     

Kate Spade & Co.(1)

    10,428,913   
  11,191     

M/I Schottenstein Homes, Inc.(1)

    252,469   
  23,509     

New Home Co., Inc.(1)

    348,874   
  8,096     

Oxford Industries, Inc.

    643,227   
  1,628,070     

Samsonite International S.A.

    5,937,845   
  92,255     

Skechers USA, Inc. Class A(1)

    8,295,570   
  191,246     

Steven Madden Ltd.(1)

    7,462,419   
  17,095     

Taylor Morrison Home Corp. Class A(1)

    316,599   
  178,050     

Vince Holding Corp.(1)

    3,281,461   
  4,500     

William Lyon Homes Class A(1)

    97,425   
   

 

 

 
      45,783,322   
   

 

 

 
      Consumer Services - 3.8%      
  37,033     

Bloomin’ Brands, Inc.

    839,168   
  8,515     

Brinker International, Inc.

    471,476   
  26,729     

Buffalo Wild Wings, Inc.(1)

    4,257,930   
  42,896     

Del Frisco’s Restaurant Group, Inc.(1)

    865,212   
  530,360     

Diamond Resorts International, Inc.(1)

    16,976,824   
  37,899     

Jack in the Box, Inc.

    3,288,496   
  20,560     

La Quinta Holdings, Inc.(1)

    495,085   
  9,720     

Marriott Vacations Worldwide Corp.

    799,081   
  44,273     

Panera Bread Co. Class A(1)

    8,078,937   
  3,016     

Red Robin Gourmet Burgers, Inc.(1)

    226,471   
  16,500     

Ruth’s Hospitality Group, Inc.

    240,075   
   

 

 

 
      36,538,755   
   

 

 

 
      Diversified Financials - 2.8%      
  9,500     

Alaris Royalty Corp.

    273,622   
  10,495     

Evercore Partners, Inc. Class A

    506,279   
  82,355     

Financial Engines, Inc.

    3,472,911   
  244,441     

HFF, Inc. Class A

    9,579,643   
  64,198     

MarketAxess Holdings, Inc.

    5,511,398   
  83,466     

Platform Specialty Products Corp.(1)

    2,248,574   
  19,973     

Regional Management Corp.(1)

    322,564   
  249,081     

Wisdomtree Investments, Inc.

    4,742,502   
   

 

 

 
      26,657,493   
   

 

 

 
      Energy - 2.8%      
  51,838     

Abraxas Petroleum Corp.(1)

    196,984   
  15,500     

Bill Barrett Corp.(1)

    179,800   
  134,741     

Diamondback Energy, Inc.(1)

    11,125,564   
  12,567     

Forum Energy Technologies, Inc.(1)

    292,309   
  6,700     

Hornbeck Offshore Services, Inc.(1)

    153,095   
  7,095     

Jones Energy, Inc. Class A(1)

    72,795   
  101,680     

Karoon Gas Australia Ltd.(1)

    219,102   
  436,400     

Malakoff Corp. Bhd(1)

    220,559   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  85  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Energy - 2.8% - (continued)      
  6,530     

PBF Energy, Inc. Class A

  $ 185,321   
  15,905     

Rosetta Resources, Inc.(1)

    363,111   
  447,765     

RSP Permian, Inc.(1)

    12,994,140   
  65,190     

Superior Drilling Products I(1)

    237,357   
  13,322     

Synergy Resources Corp.(1)

    159,598   
   

 

 

 
      26,399,735   
   

 

 

 
      Food & Staples Retailing - 0.3%      
  12,950     

Casey’s General Stores, Inc.

    1,064,231   
  21,615     

Natural Grocers by Vitamin Cottage, Inc.(1)

    568,907   
  8,715     

PriceSmart, Inc.

    701,209   
   

 

 

 
      2,334,347   
   

 

 

 
      Food, Beverage & Tobacco - 0.9%      
  17,056     

Darling Ingredients, Inc.(1)

    232,985   
  126,395     

Freshpet, Inc.(1)

    2,740,244   
  8,750     

Post Holdings, Inc.(1)

    410,725   
  446,931     

SunOpta, Inc.(1)

    4,621,266   
  11,390     

TreeHouse Foods, Inc.(1)

    925,551   
   

 

 

 
      8,930,771   
   

 

 

 
      Health Care Equipment &
Services - 9.9%
 
  199,766     

Acadia Healthcare Co., Inc.(1)

    13,683,971   
  13,863     

Aceto Corp.

    268,665   
  7,677     

Anika Therapeutics, Inc.(1)

    261,939   
  1,460     

Atrion Corp.

    474,281   
  95,701     

Cardiovascular Systems, Inc.(1)

    2,995,441   
  7,316     

Cyberonics, Inc.(1)

    445,618   
  13,180     

Cynosure, Inc. Class A(1)

    440,476   
  212,705     

DexCom, Inc.(1)

    14,372,477   
  349,924     

Endologix, Inc.(1)

    5,444,817   
  8,026     

Ensign Group, Inc.

    337,975   
  260,181     

Envision Healthcare Holdings, Inc.(1)

    9,876,471   
  44,536     

Globus Medical, Inc. Class A(1)

    1,063,965   
  22,896     

HealthSouth Corp.

    1,035,357   
  127,187     

HeartWare International, Inc.(1)

    9,629,328   
  7,285     

ICU Medical, Inc.(1)

    614,635   
  401,103     

Insulet Corp.(1)

    11,972,924   
  183,072     

LDR Holding Corp.(1)

    6,196,987   
  3,141     

MEDNAX, Inc.(1)

    222,320   
  4,633     

Natus Medical, Inc.(1)

    174,710   
  18,745     

Omnicell, Inc.(1)

    666,010   
  14,405     

Team Health Holdings, Inc.(1)

    858,106   
  14,982     

U.S. Physical Therapy, Inc.

    706,551   
  22,382     

Vascular Solutions, Inc.(1)

    717,567   
  460,305     

Veeva Systems, Inc. Class A(1)

    12,221,098   
  7,716     

WellCare Health Plans, Inc.(1)

    597,450   
   

 

 

 
      95,279,139   
   

 

 

 
      Insurance - 0.9%      
  15,660     

AMERISAFE, Inc.

    707,676   
  267,794     

Assured Guaranty Ltd.

    6,959,966   
  25,984     

James River Group Holdings Ltd.

    614,262   
  2,558     

Phoenix Cos., Inc.(1)

    87,253   
   

 

 

 
      8,369,157   
   

 

 

 
      Materials - 4.5%      
  15,101     

Advanced Emissions Solutions, Inc.(1)

    217,605   
  16,518     

Boise Cascade Co.(1)

    573,175   
  9,035     

Cabot Corp.

    386,156   
  1,069,645     

Graphic Packaging Holding Co.

    15,081,994   
  1,859     

Haynes International, Inc.

    82,670   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Materials - 4.5% - (continued)      
  875,603     

Headwaters, Inc.(1)

  $ 15,393,101   
  240,469     

KapStone Paper & Packaging Corp.

    6,721,108   
  18,552     

Myers Industries, Inc.

    299,986   
  17,418     

New Gold, Inc.(1)

    58,873   
  51,240     

OMNOVA Solutions, Inc.(1)

    409,408   
  13,551     

Orion Engineered Carbons S.A.

    265,328   
  95,104     

Platform Specialty Products Corp.(1)

    2,562,102   
  20,685     

PolyOne Corp.

    807,749   
  11,102     

Silgan Holdings, Inc.

    598,065   
   

 

 

 
      43,457,320   
   

 

 

 
      Media - 2.1%      
  393,540     

IMAX Corp.(1)

    14,702,654   
  221,817     

Markit, Ltd.(1)

    5,689,606   
   

 

 

 
      20,392,260   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 9.6%  
  304,323     

Achillion Pharmaceuticals, Inc.(1)

    2,662,826   
  18,445     

Acorda Therapeutics, Inc.(1)

    554,641   
  147,025     

Aerie Pharmaceuticals, Inc.(1)

    1,417,321   
  55,538     

Agios Pharmaceuticals, Inc.(1)

    5,128,379   
  16,577     

Albany Molecular Research, Inc.(1)

    299,381   
  10,450     

Alkermes plc(1)

    578,617   
  36,208     

Alnylam Pharmaceuticals, Inc.(1)

    3,688,509   
  141,884     

Anacor Pharmaceuticals, Inc.(1)

    7,475,868   
  57,524     

Arena Pharmaceuticals, Inc.(1)

    250,805   
  5,320     

Avalanche Biotechnologies, Inc.(1)

    169,495   
  186     

Bellicum Pharmaceuticals, Inc.(1)

    4,460   
  379,062     

BioCryst Pharmaceuticals, Inc.(1)

    3,521,486   
  7,500     

Blueprint Medicines Corp.(1)

    141,525   
  22,836     

Cara Therapeutics, Inc.(1)

    245,487   
  78,083     

Cepheid(1)

    4,380,456   
  10,543     

Dicerna Pharmaceuticals, Inc.(1)

    211,598   
  14,200     

Five Prime Therapeutics, Inc.(1)

    284,852   
  13,200     

GlycoMimetics, Inc.(1)

    109,428   
  126,779     

Intersect ENT, Inc.(1)

    3,181,519   
  277,321     

Ironwood Pharmaceuticals, Inc.(1)

    3,788,205   
  56,509     

Isis Pharmaceuticals, Inc.(1)

    3,205,190   
  19,740     

KemPharm, Inc.(1)

    217,140   
  8,930     

KYTHERA Biopharmaceuticals, Inc.(1)

    390,152   
  19,455     

Medicines Co.(1)

    498,243   
  500,634     

Novavax, Inc.(1)

    3,869,901   
  135,963     

Otonomy, Inc.(1)

    3,567,669   
  12,562     

PAREXEL International Corp.(1)

    798,629   
  5,185     

Philbro Animal Health Corp. Class A

    164,676   
  229,871     

Portola Pharmaceuticals, Inc.(1)

    8,204,096   
  9,605     

Prestige Brands Holdings, Inc.(1)

    376,996   
  126,299     

PTC Therapeutics, Inc.(1)

    7,420,066   
  13,579     

Puma Biotechnology, Inc.(1)

    2,452,096   
  190,468     

Regulus Therapeutics, Inc.(1)

    2,390,373   
  113,776     

Relypsa, Inc.(1)

    3,291,540   
  44,002     

Synageva BioPharma Corp.(1)

    4,046,424   
  144,850     

TESARO, Inc.(1)

    7,889,979   
  104,039     

Tetraphase Pharmaceuticals, Inc.(1)

    3,670,496   
  41,926     

Trevana, Inc.(1)

    258,683   
  7,060     

Ultragenyx Pharmaceutical, Inc.(1)

    398,396   
  62,455     

XenoPort, Inc.(1)

    370,358   
  18,458     

Zafgen, Inc.(1)

    574,413   
   

 

 

 
      92,150,374   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

86

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Real Estate - 3.7%      
  36,741     

Arbor Realty Trust, Inc. REIT

  $ 252,043   
  23,248     

Armada Hoffler Properties, Inc. REIT

    238,757   
  22,055     

CareTrust, Inc. REIT

    275,467   
  12,816     

Coresite Realty Corp. REIT

    616,193   
  15,739     

Easterly Government Properties, Inc. REIT(1)

    247,889   
  192,800     

Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT

    3,663,200   
  386,597     

Kennedy-Wilson Holdings, Inc.

    9,579,873   
  4,207     

Marcus & Millichap, Inc.(1)

    148,844   
  20,611     

Medical Properties Trust, Inc. REIT

    288,142   
  595,962     

Paramount Group, Inc. REIT

    10,918,024   
  189,616     

Pebblebrook Hotel Trust REIT

    8,142,111   
  13,664     

STAG Industrial, Inc. REIT

    296,919   
  20,213     

Summit Hotel Properties, Inc. REIT

    266,205   
  40,191     

Sunstone Hotel Investors, Inc. REIT

    626,176   
   

 

 

 
      35,559,843   
   

 

 

 
      Retailing - 2.2%      
  3,136,600     

Allstar Co.(1)(2)(3)

    3,230,698   
  13,361     

Core-Mark Holding Co., Inc.

    704,258   
  180,886     

CST Brands, Inc.

    7,544,755   
  18,744     

DSW, Inc. Class A

    679,845   
  20,885     

Five Below, Inc.(1)

    704,242   
  13,605     

HSN, Inc.

    849,224   
  12,400     

Party City Holdco, Inc.(1)

    257,796   
  46,848     

Pier 1 Imports, Inc.

    592,627   
  11,597     

Shoe Carnival, Inc.

    302,798   
  325,618     

Tuesday Morning Corp.(1)

    5,151,277   
  31,120     

Wayfair, Inc. Class A(1)

    999,575   
  13,740     

zulily, Inc. Class A(1)

    171,269   
   

 

 

 
      21,188,364   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 5.3%  
  69,687     

Ambarella, Inc.(1)

    5,097,604   
  34,216     

Exar Corp.(1)

    337,712   
  19,365     

Inphi Corp.(1)

    415,379   
  198,924     

Mellanox Technologies Ltd.(1)

    9,247,977   
  134,064     

Power Integrations, Inc.

    6,634,827   
  11,524     

Qorvo, Inc.(1)

    759,547   
  20,865     

Rambus, Inc.(1)

    288,772   
  197,604     

SunEdison Semiconductor Ltd.(1)

    4,412,497   
  398,297     

SunEdison, Inc.(1)

    10,084,880   
  237,868     

SunPower Corp.(1)

    7,656,971   
  69,076     

Synaptics, Inc.(1)

    5,852,119   
   

 

 

 
      50,788,285   
   

 

 

 
      Software & Services - 18.0%  
  161,101     

Apigee Corp.(1)

    2,331,131   
  14,440     

Aspen Technology, Inc.(1)

    640,992   
  4,870     

CACI International, Inc. Class A(1)

    429,729   
  11,165     

Cass Information Systems, Inc.

    583,595   
  14,300     

comScore, Inc.(1)

    748,748   
  235,964     

Constant Contact, Inc.(1)

    8,223,345   
  77,519     

CoStar Group, Inc.(1)

    15,847,209   
  9,503     

CSG Systems International, Inc.

    276,727   
  61,884     

Demandware, Inc.(1)

    3,812,054   
  3,331     

Digimarc Corp.

    77,945   
  13,947     

Ellie Mae, Inc.(1)

    767,085   
  112,723     

Envestnet, Inc.(1)

    5,778,181   
  16,444     

ePlus, Inc.(1)

    1,364,194   
  29,972     

Everyday Health, Inc.(1)

    367,457   
  30,463     

Exlservice Holdings, Inc.(1)

    1,048,841   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Software & Services - 18.0% - (continued)  
  12,020     

Fair Isaac Corp.

  $ 1,063,289   
  55,835     

Five9, Inc.(1)

    303,184   
  242,553     

Fleetmatics Group Ltd.(1)

    11,055,566   
  51,207     

Global Cash Access, Inc.(1)

    378,932   
  13,400     

GoDaddy, Inc. Class A(1)

    335,938   
  122,496     

Heartland Payment Systems, Inc.

    6,235,046   
  217,375     

HubSpot, Inc.(1)

    8,414,586   
  15,220     

j2 Global, Inc.

    1,055,811   
  13,838     

Manhattan Associates, Inc.(1)

    727,325   
  55,628     

Marchex, Inc. Class B

    236,419   
  216,461     

Marketo, Inc.(1)

    6,158,315   
  121,578     

MAXIMUS, Inc.

    7,782,208   
  36,590     

Model N, Inc.(1)

    429,933   
  13,795     

NetScout Systems, Inc.(1)

    566,975   
  12,460     

Nuance Communications, Inc.(1)

    191,012   
  15,960     

Perficient, Inc.(1)

    329,255   
  23,380     

PTC, Inc.(1)

    896,389   
  13,580     

Q2 Holdings, Inc.(1)

    276,353   
  11,675     

Qualys, Inc.(1)

    578,146   
  29,452     

Sapiens International Corp. N.V.(1)

    257,116   
  157,089     

Shutterstock, Inc.(1)

    10,601,937   
  26,662     

Silver Spring Networks, Inc.(1)

    259,155   
  10,072     

Solera Holdings, Inc.

    488,693   
  26,676     

Tangoe, Inc.(1)

    364,928   
  667,714     

Telogis, Inc.(1)(2)(3)

    514,140   
  7,210     

Textura Corp.(1)

    188,686   
  152,194     

TrueCar, Inc.(1)

    2,346,832   
  113,976     

Tyler Technologies Corp.(1)

    13,899,373   
  192,638     

Verint Systems, Inc.(1)

    11,833,752   
  270,664     

Virtusa Corp.(1)

    10,772,427   
  12,630     

WebMD Health Corp.(1)

    557,615   
  77,446     

WEX, Inc.(1)

    8,728,939   
  493,798     

WNS Holdings Ltd. ADR(1)

    11,915,346   
  30,500     

Zendesk, Inc.(1)

    703,330   
  100,371     

Zillow Group, Inc. Class A(1)

    9,800,224   
  68,474     

Zix Corp.(1)

    291,699   
   

 

 

 
      172,836,107   
   

 

 

 
      Technology Hardware & Equipment - 2.1%  
  117,068     

Arista Networks, Inc.(1)

    7,493,523   
  16,176     

CalAmp Corp.(1)

    318,829   
  15,755     

CDW Corp. of Delaware

    603,732   
  19,320     

Ciena Corp.(1)

    411,516   
  127,141     

Cognex Corp.(1)

    5,707,359   
  10,000     

Control4 Corp.(1)

    117,200   
  4,305     

FEI Co.

    324,855   
  42,357     

Mitel Networks Corp.(1)

    393,496   
  10,800     

Newport Corp.(1)

    205,956   
  150,833     

Nimble Storage, Inc.(1)

    3,689,375   
  115,230     

ParkerVision, Inc.(1)

    78,356   
  13,515     

Radware Ltd.(1)

    319,900   
  21,892     

Sonus Networks, Inc.(1)

    173,385   
  84,493     

Speed Commerce, Inc.(1)

    25,492   
  10,445     

Ubiquiti Networks, Inc.

    298,414   
   

 

 

 
      20,161,388   
   

 

 

 
      Transportation - 4.5%  
  29,277     

Celadon Group, Inc.

    756,518   
  196,969     

Landstar System, Inc.

    12,273,138   
  14,452     

Marten Transport Ltd.

    321,702   
  110,233     

Old Dominion Freight Line, Inc.(1)

    7,840,873   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  87  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Transportation - 4.5% - (continued)  
  6,133     

Park-Ohio Holdings Corp.

  $ 284,142   
  87,293     

Spirit Airlines, Inc.(1)

    5,976,952   
  435,574     

Swift Transportation Co.(1)

    10,540,891   
  101,459     

XPO Logistics, Inc.(1)

    4,920,761   
   

 

 

 
      42,914,977   
   

 

 

 
      Utilities - 0.1%  
  4,899     

ALLETE, Inc.

    246,419   
  9,360     

Pattern Energy Group, Inc.

    271,253   
  18,700     

Spark Energy, Inc. Class A

    233,750   
   

 

 

 
      751,422   
   

 

 

 
 

Total Common Stocks
(cost $817,364,266)

  $ 911,304,609   
   

 

 

 
EXCHANGE TRADED FUNDS - 0.5%  
      Other Investment Pools & Funds - 0.5%  
  8,708     

iShares Russell 2000 ETF

  $ 1,055,061   
  24,090     

iShares Russell 2000 Growth ETF

    3,542,435   
   

 

 

 
 

Total Exchange Traded Funds
(cost $4,748,339)

  $ 4,597,496   
   

 

 

 
PREFERRED STOCKS - 2.8%  
      Pharmaceuticals, Biotechnology & Life Sciences - 0.0%  
  92,973     

Sancilio & Co., Inc.(1)(2)(3)

  $ 316,043   
   

 

 

 
      Retailing - 0.5%  
  65,552     

Tory Burch LLC(1)(2)(3)

    4,393,949   
   

 

 

 
      Software & Services - 1.9%  
  118,679     

Apigee Corp. PIPE(1)(2)(3)

    1,551,281   
  106,123     

Cloudera, Inc.(1)(2)(3)

    3,151,853   
  263,189     

MarkLogic Corp. Series F(1)(2)(3)

    2,751,056   
  129,162     

Nutanix, Inc.(1)(2)(3)

    2,297,792   
  909,316     

Telogis, Inc.(1)(2)(3)

    3,910,059   
  98,033     

Veracode, Inc.(1)(2)(3)

    2,791,980   
  658,164     

Zuora, Inc. Series F(1)(2)(3)

    2,250,506   
   

 

 

 
      18,704,527   
   

 

 

 
      Technology Hardware & Equipment - 0.2%      
  122,994     

Pure Storage, Inc.(1)(2)(3)

    2,029,401   
   

 

 

 
      Telecommunication Services - 0.2%      
  4,044     

DocuSign, Inc. Series B(1)(2)(3)

    77,213   
  1,211     

DocuSign, Inc. Series B-1(1)(2)(3)

    23,122   
  2,906     

DocuSign, Inc. Series D(1)(2)(3)

    55,485   
  75,160     

DocuSign, Inc. Series E(1)(2)(3)

    1,435,037   
  14,065     

DocuSign, Inc. Series F(1)(2)(3)

    268,544   
   

 

 

 
      1,859,401   
   

 

 

 
 

Total Preferred Stocks
(cost $23,962,748)

  $ 27,303,321   
   

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.0%  
      Capital Goods - 0.0%      
  2,268     

William Lyon Homes, Inc., 6.50%

  $ 255,830   
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $226,800)

  $ 255,830   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
WARRANTS - 1.0%  
      Diversified Financials - 1.0%      
  369,104     

Platform Specialty Products Corp.(1)

  $ 9,943,662   
   

 

 

 
 

Total Warrants
(cost $7,012,976)

  $ 9,943,662   
   

 

 

 
 

Total Long-Term Investments
(cost $853,315,129)

  $ 953,404,918   
   

 

 

 
SHORT-TERM INVESTMENTS - 0.6%  
      Other Investment Pools & Funds - 0.6%      
  5,634,666     

Federated Prime Obligations Fund

  $ 5,634,666   
   

 

 

 
 

Total Short-Term Investments
(cost $5,634,666)

  $ 5,634,666   
   

 

 

 
 

Total Investments
(cost $858,949,795)^

    100.0    $ 959,039,584   
 

Other Assets and Liabilities

    0.0      (279,002
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     958,760,582   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

88

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $861,605,017 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     133,220,825   

Unrealized Depreciation

     (35,786,258
  

 

 

 

Net Unrealized Appreciation

   $ 97,434,567   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $31,048,159, which represents 3.2% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

08/2011

     3,136,600       Allstar Co.    $     1,364,479   

04/2014

     118,679       Apigee Corp. PIPE Preferred      2,532,302   

02/2014

     106,123       Cloudera, Inc. Preferred      1,545,151   

02/2014

     4,044       DocuSign, Inc. Series B Preferred      53,108   

02/2014

     1,211       DocuSign, Inc. Series B-1 Preferred      15,903   

02/2014

     2,906       DocuSign, Inc. Series D Preferred      38,163   

02/2014

     75,160       DocuSign, Inc. Series E Preferred      987,031   

04/2015

     14,065       DocuSign, Inc. Series F Preferred      268,544   

04/2015

     263,189       MarkLogic Corp. Series F Preferred      3,056,730   

08/2014

     129,162       Nutanix, Inc. Preferred      1,730,319   

04/2014

     122,994       Pure Storage, Inc. Preferred      1,934,191   

05/2014

     92,973       Sancilio & Co., Inc. Preferred      351,155   

09/2013

     667,714       Telogis, Inc.      1,322,808   

09/2013

     909,316       Telogis, Inc. Preferred      2,001,586   

11/2013

     65,552       Tory Burch LLC Preferred      5,137,735   

08/2014

     98,033       Veracode, Inc. Preferred      1,810,268   

01/2015

     658,164       Zuora, Inc. Series F Preferred      2,500,562   
        

 

 

 
         $ 26,650,035   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $31,048,159, which represents 3.2% of total net assets.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange Traded Fund

PIPE

   Private Investment in Public Equity

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  89  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 6,233,348       $ 6,233,348       $       $   

Banksw

     14,654,752         14,654,752                   

Capital Goods

     119,610,951         119,610,951                   

Commercial & Professional Services

     20,312,499         20,312,499                   

Consumer Durables & Apparel

     45,783,322         39,845,477         5,937,845           

Consumer Services

     36,538,755         36,538,755                   

Diversified Financials

     26,657,493         24,408,919         2,248,574           

Energy

     26,399,735         26,180,633         219,102           

Food & Staples Retailing

     2,334,347         2,334,347                   

Food, Beverage & Tobacco

     8,930,771         8,930,771                   

Health Care Equipment & Services

     95,279,139         95,279,139                   

Insurance

     8,369,157         8,369,157                   

Materials

     43,457,320         43,457,320                   

Media

     20,392,260         20,392,260                   

Pharmaceuticals, Biotechnology & Life Sciences

     92,150,374         92,150,374                   

Real Estate

     35,559,843         35,559,843                   

Retailing

     21,188,364         17,957,666                 3,230,698   

Semiconductors & Semiconductor Equipment

     50,788,285         50,788,285                   

Software & Services

     172,836,107         172,321,967                 514,140   

Technology Hardware & Equipment

     20,161,388         20,161,388                   

Transportation

     42,914,977         42,914,977                   

Utilities

     751,422         751,422                   

Exchange Traded Funds

     4,597,496         4,597,496                   

Preferred Stocks

     27,303,321                         27,303,321   

Convertible Preferred Stocks

     255,830         255,830                   

Warrants

     9,943,662                 9,943,662           

Short-Term Investments

     5,634,666         5,634,666                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     959,039,584       $     909,642,242       $     18,349,183       $     31,048,159   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $9,596,704 were transferred from Level 1 to Level 2, and investments valued at $194,959 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Preferred Stock      Total  

Beginning balance

   $ 28,547,778        20,281,239       $ 48,829,017   

Purchases

            5,825,836         5,825,836   

Sales

                      

Accrued discounts/(premiums)

                      

Total realized gain/(loss)

                      

Net change in unrealized appreciation/depreciation

     541,643        1,196,246         1,737,889   

Transfers into Level 3(1)

                      

Transfers out of Level 3(1)

         (25,344,583                 (25,344,583
  

 

 

   

 

 

    

 

 

 

Ending balance

   $ 3,744,838      $     27,303,321       $ 31,048,159   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $1,737,889.

 

The accompanying notes are an integral part of these financial statements.

 

 

  90  

 


The Hartford Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

91

 


The Hartford Small/Mid Cap Equity Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     16.3

Consumer Staples

     1.6   

Energy

     4.6   

Financials

     22.7   

Health Care

     12.0   

Industrials

     14.9   

Information Technology

     16.6   

Materials

     5.4   

Telecommunication Services

     0.4   

Utilities

     4.1   
  

 

 

 

Total

     98.6
  

 

 

 

Short-Term Investments

     2.2

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

92

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6%  
      Automobiles & Components - 1.2%  
  6,360     

American Axle & Manufacturing Holdings, Inc.(1)

  $ 158,555   
  4,979     

Cooper Tire & Rubber Co.

    211,558   
  3,440     

Lear Corp.

    381,943   
  1,700     

Strattec Security Corp.

    127,619   
   

 

 

 
      879,675   
   

 

 

 
      Banks - 3.1%  
  4,500     

Banco Latinoamericano de Comercio Exterior S.A. ADR

    142,965   
  28,310     

Fifth Third Bancorp

    566,200   
  45,700     

Huntington Bancshares, Inc.

    496,302   
  9,971     

MainSource Financial Group, Inc.

    191,942   
  9,200     

OFG Bancorp

    129,628   
  16,536     

Popular, Inc.(1)

    536,262   
  13,400     

Walker & Dunlop, Inc.(1)

    256,476   
   

 

 

 
      2,319,775   
   

 

 

 
      Capital Goods - 8.3%  
  4,897     

AAON, Inc.

    117,381   
  6,169     

AGCO Corp.

    317,765   
  5,100     

American Woodmark Corp.(1)

    258,570   
  5,400     

Argan, Inc.

    174,474   
  2,023     

Astronics Corp.(1)

    136,168   
  6,600     

Douglas Dynamics, Inc.

    143,550   
  13,349     

Enphase Energy, Inc.(1)

    167,797   
  2,300     

Huntington Ingalls Industries, Inc.

    302,657   
  2,800     

Hyster-Yale Materials Handling, Inc.

    205,352   
  19,800     

Meritor, Inc.(1)

    259,776   
  2,200     

Moog, Inc. Class A(1)

    153,736   
  1,157     

Proto Labs, Inc.(1)

    80,990   
  6,133     

Regal-Beloit Corp.

    479,601   
  4,813     

Snap-on, Inc.

    719,784   
  6,270     

Spirit Aerosystems Holdings, Inc. Class A(1)

    319,080   
  10,884     

Taser International, Inc.(1)

    328,588   
  1,400     

Teledyne Technologies, Inc.(1)

    146,958   
  4,200     

Timken Co.

    165,018   
  8,400     

Trex Co., Inc.(1)

    394,128   
  2,500     

Triumph Group, Inc.

    148,100   
  2,502     

United Rentals, Inc.(1)

    241,643   
  6,790     

Wabco Holdings, Inc.(1)

    845,016   
  4,859     

Woodward, Inc.

    228,616   
   

 

 

 
      6,334,748   
   

 

 

 
      Commercial & Professional Services - 3.8%  
  8,100     

Brink’s Co.

    214,407   
  5,200     

Deluxe Corp.

    336,700   
  3,500     

Dun & Bradstreet Corp.

    446,845   
  3,300     

Insperity, Inc.

    158,928   
  4,800     

Korn/Ferry International

    151,344   
  2,234     

Multi-Color Corp.

    140,251   
  13,100     

Pitney Bowes, Inc.

    293,047   
  7,200     

Quad/Graphics, Inc.

    155,088   
  17,800     

R.R. Donnelley & Sons Co.

    331,436   
  2,500     

Robert Half International, Inc.

    138,625   
  8,700     

RPX Corp.(1)

    135,372   
  4,169     

TriNet Group, Inc.(1)

    145,998   
  2,400     

UniFirst Corp.

    271,752   
   

 

 

 
      2,919,793   
   

 

 

 
      Consumer Durables & Apparel - 2.9%  
  6,034     

CSS Industries, Inc.

    171,004   
  780     

Harman International Industries, Inc.

    101,696   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6% - (continued)  
      Consumer Durables & Apparel - 2.9% - (continued)  
  5,573     

Helen of Troy Ltd.(1)

  $ 488,251   
  13,100     

Nautilus, Inc.(1)

    220,211   
  4,021     

Polaris Industries, Inc.

    550,716   
  69,800     

Quiksilver, Inc.(1)

    115,868   
  4,300     

Skechers USA, Inc. Class A(1)

    386,656   
  2,600     

Universal Electronics, Inc.(1)

    140,244   
   

 

 

 
      2,174,646   
   

 

 

 
      Consumer Services - 4.3%  
  4,700     

American Public Education, Inc.(1)

    131,083   
  11,300     

Bridgepoint Education, Inc.(1)

    99,101   
  9,820     

Brinker International, Inc.

    543,734   
  1,150     

Buffalo Wild Wings, Inc.(1)

    183,195   
  2,498     

Capella Education Co.

    134,967   
  3,359     

Choice Hotels International, Inc.

    201,103   
  2,700     

DeVry Education Group, Inc.

    81,648   
  6,773     

Domino’s Pizza, Inc.

    730,468   
  13,700     

International Speedway Corp. Class A

    498,132   
  11,200     

LifeLock, Inc.(1)

    163,632   
  2,500     

Marriott Vacations Worldwide Corp.

    205,525   
  2,400     

Strayer Education, Inc.(1)

    121,728   
  20,460     

Weight Watchers International, Inc.(1)

    174,933   
   

 

 

 
      3,269,249   
   

 

 

 
      Diversified Financials - 3.2%  
  56,961     

Apollo Investment Corp.

    455,688   
  16,600     

BGC Partners, Inc. Class A

    166,581   
  12,077     

Ezcorp, Inc. Class A(1)

    111,108   
  4,892     

Investment Technology Group, Inc.(1)

    139,373   
  16,144     

Janus Capital Group, Inc.

    288,978   
  6,310     

Nelnet, Inc. Class A

    282,499   
  10,515     

Solar Capital Ltd.

    207,776   
  5,860     

Springleaf Holdings, Inc.(1)

    293,000   
  13,500     

Wisdomtree Investments, Inc.

    257,040   
  2,900     

World Acceptance Corp.(1)

    245,398   
   

 

 

 
      2,447,441   
   

 

 

 
      Energy - 4.6%  
  11,400     

Alon USA Energy, Inc.

    183,426   
  12,500     

Bill Barrett Corp.(1)

    145,000   
  4,081     

CVR Energy, Inc.

    163,403   
  4,100     

Delek US Holdings, Inc.

    151,372   
  66,944     

Frontline Ltd.(1)

    171,377   
  10,397     

Gulfmark Offshore, Inc. Class A

    156,059   
  24,120     

Kosmos Energy Ltd.(1)

    235,893   
  4,200     

Matrix Service Co.(1)

    92,274   
  5,600     

Oceaneering International, Inc.

    308,616   
  7,413     

Oil States International, Inc.(1)

    352,785   
  9,879     

Pacific Ethanol, Inc.(1)

    118,153   
  1,400     

REX American Resources Corp.(1)

    88,508   
  6,710     

Superior Energy Services, Inc.

    171,105   
  1,206     

Targa Resources Corp.

    126,594   
  4,400     

US Silica Holdings, Inc.

    164,340   
  11,324     

Valero Energy Corp.

    644,335   
  5,714     

Western Refining, Inc.

    251,702   
   

 

 

 
      3,524,942   
   

 

 

 
      Food & Staples Retailing - 0.4%  
  5,030     

Fresh Market, Inc.(1)

    176,754   
  17,500     

Rite Aid Corp.(1)

    134,925   
   

 

 

 
      311,679   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

93

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6% - (continued)  
      Food, Beverage & Tobacco - 0.9%  
  2,998     

Ingredion, Inc.

  $ 238,041   
  17,500     

Pilgrim’s Pride Corp.

    432,250   
   

 

 

 
      670,291   
   

 

 

 
      Health Care Equipment & Services - 3.8%  
  4,332     

ABIOMED, Inc.(1)

    273,869   
  2,158     

Aetna, Inc.

    230,625   
  7,400     

Centene Corp.(1)

    458,726   
  4,200     

Ensign Group, Inc.

    176,862   
  5,300     

Health Net, Inc.(1)

    279,045   
  7,100     

HealthEquity, Inc.(1)

    186,091   
  6,150     

Magellan Health, Inc.(1)

    389,295   
  4,400     

Orthofix International N.V.(1)

    142,164   
  25,008     

Quality Systems, Inc.

    390,000   
  6,351     

Triple-S Management Corp., Class B(1)

    118,891   
  5,400     

VCA, Inc.(1)

    275,238   
   

 

 

 
      2,920,806   
   

 

 

 
      Household & Personal Products - 0.3%  
  2,000     

Usana Health Sciences, Inc.(1)

    227,480   
   

 

 

 
      Insurance - 5.3%  
  6,055     

Ambac Financial Group, Inc.(1)

    139,325   
  3,400     

AmTrust Financial Services, Inc.

    202,198   
  1,430     

Argo Group International Holdings Ltd.

    70,056   
  6,900     

Assurant, Inc.

    424,074   
  2,964     

Axis Capital Holdings Ltd.

    154,306   
  5,600     

Endurance Specialty Holdings Ltd.

    338,128   
  1,000     

Enstar Group Ltd.(1)

    142,040   
  2,940     

Everest Re Group Ltd.

    525,995   
  10,900     

Greenlight Capital Re Ltd. Class A(1)

    331,251   
  3,277     

HCI Group, Inc.

    142,812   
  18,200     

MBIA, Inc.(1)

    159,250   
  2,300     

Phoenix Cos., Inc.(1)

    78,453   
  2,900     

Reinsurance Group of America, Inc.

    265,698   
  19,200     

Symetra Financial Corp.

    456,000   
  10,779     

Third Point Reinsurance Ltd.(1)

    145,301   
  9,200     

United Insurance Holdings Corp.

    152,996   
  5,962     

Universal Insurance Holdings, Inc.

    143,207   
  3,700     

Validus Holdings Ltd.

    154,771   
   

 

 

 
      4,025,861   
   

 

 

 
      Materials - 5.4%  
  6,000     

Boise Cascade Co.(1)

    208,200   
  9,187     

Century Aluminum Co.(1)

    118,420   
  4,940     

Clearwater Paper Corp.(1)

    316,012   
  4,535     

Commercial Metals Co.

    75,281   
  7,800     

Domtar Corp.

    337,116   
  25,700     

Gold Resource Corp.

    86,609   
  43,680     

Graphic Packaging Holding Co.

    615,888   
  7,530     

Innospec, Inc.

    329,061   
  10,723     

Kronos Worldwide, Inc.

    144,224   
  5,700     

PolyOne Corp.

    222,585   
  3,066     

Reliance Steel & Aluminum Co.

    198,432   
  17,500     

Resolute Forest Products, Inc.(1)

    269,850   
  4,000     

Rock-Tenn Co. Class A

    251,920   
  8,300     

Sonoco Products Co.

    370,927   
  2,800     

Stepan Co.

    142,604   
  15,800     

Stillwater Mining Co.(1)

    212,194   
  9,852     

United States Steel Corp.

    236,645   
   

 

 

 
      4,135,968   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6% - (continued)  
      Media - 0.3%  
  5,352     

Starz Class A(1)

  $ 210,494   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 8.2%  
  19,000     

Affymetrix, Inc.(1)

    230,470   
  9,300     

Anacor Pharmaceuticals, Inc.(1)

    490,017   
  3,100     

Bio-Rad Laboratories, Inc. Class A(1)

    416,795   
  3,803     

BioSpecifics Technologies Corp.(1)

    145,693   
  7,000     

Cambrex Corp.(1)

    269,430   
  1,621     

Charles River Laboratories International, Inc.(1)

    112,108   
  7,094     

Five Prime Therapeutics, Inc.(1)

    142,306   
  38,690     

Geron Corp.(1)

    140,058   
  4,209     

Impax Laboratories, Inc.(1)

    190,499   
  11,200     

Infinity Pharmaceuticals, Inc.(1)

    141,904   
  2,714     

Insys Therapeutics, Inc.(1)

    142,675   
  5,200     

Isis Pharmaceuticals, Inc.(1)

    294,944   
  3,800     

Lannett Co., Inc.(1)

    218,500   
  9,240     

Luminex Corp.(1)

    143,405   
  2,050     

Medivation, Inc.(1)

    247,517   
  20,700     

Merrimack Pharmaceuticals, Inc.(1)

    229,770   
  2,709     

NewLink Genetics Corp.(1)

    120,821   
  3,162     

Omeros Corp.(1)

    63,620   
  3,998     

Ophthotech Corp.(1)

    181,030   
  3,442     

OvaScience, Inc.(1)

    85,172   
  4,900     

PAREXEL International Corp.(1)

    311,518   
  60,951     

PDL Biopharma, Inc.

    406,543   
  700     

Puma Biotechnology, Inc.(1)

    126,406   
  6,155     

Quintiles Transnational Holdings, Inc(1)

    405,491   
  13,100     

Sciclone Pharmaceuticals, Inc.(1)

    107,027   
  9,800     

Sucampo Pharmaceuticals, Inc. Class A(1)

    174,048   
  4,200     

United Therapeutics Corp.(1)

    670,698   
   

 

 

 
      6,208,465   
   

 

 

 
      Real Estate - 11.1%  
  7,900     

AG Mortgage Investment Trust, Inc. REIT

    151,838   
  16,510     

American Capital Mortgage Investment Corp. REIT

    289,585   
  8,832     

Apollo Commercial Real Estate Finance, Inc. REIT

    150,939   
  24,000     

Brandywine Realty Trust REIT

    349,920   
  6,800     

Brixmor Property Group, Inc. REIT

    159,460   
  41,350     

Capstead Mortgage Corp. REIT

    481,728   
  7,300     

CBL & Associates Properties, Inc. REIT

    131,473   
  32,800     

Chambers Street Properties REIT

    246,000   
  5,600     

CyrusOne, Inc. REIT

    181,888   
  11,500     

Franklin Street Properties Corp. REIT

    135,815   
  11,400     

Government Properties Income Trust REIT

    237,576   
  14,290     

Hatteras Financial Corp. REIT

    258,077   
  9,900     

Hospitality Properties Trust REIT

    297,792   
  4,010     

Jones Lang LaSalle, Inc.

    665,901   
  29,660     

Mack-Cali Realty Corp. REIT

    532,397   
  4,700     

Marcus & Millichap, Inc.(1)

    166,286   
  17,800     

MFA Financial, Inc. REIT

    138,306   
  14,613     

New Residential Investment Corp. REIT

    249,006   
  20,640     

New York Mortgage Trust, Inc. REIT

    161,198   
  11,100     

Pennsylvania REIT

    250,971   
  6,820     

PennyMac Mortgage Investment Trust REIT

    142,879   
  46,900     

Piedmont Office Realty Trust, Inc. Class A, REIT

    819,812   
  9,200     

Ramco-Gershenson Properties Trust REIT

    160,816   
  9,800     

Redwood Trust, Inc. REIT

    168,462   
  50,400     

Resource Capital Corp. REIT

    222,264   
  51,200     

Retail Properties of America, Inc. Class A, REIT

    773,632   
  20,441     

Select Income REIT

    474,027   
  26,200     

Two Harbors Investment Corp. REIT

    275,100   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  94  

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6% - (continued)  
      Real Estate - 11.1% - (continued)  
  9,500     

Western Asset Mortgage Capital Corp. REIT

  $ 138,795   
   

 

 

 
      8,411,943   
   

 

 

 
      Retailing - 7.6%  
  8,854     

American Eagle Outfitters, Inc.

    140,867   
  3,950     

ANN, Inc.(1)

    149,547   
  7,000     

Big Lots, Inc.

    318,990   
  5,900     

Buckle, Inc.

    264,320   
  5,191     

Burlington Stores, Inc.(1)

    267,700   
  5,100     

Cato Corp. Class A

    200,634   
  7,800     

Chico’s FAS, Inc.

    131,508   
  3,200     

Dick’s Sporting Goods, Inc.

    173,632   
  4,400     

Dillard’s, Inc. Class A

    578,996   
  4,080     

DSW, Inc. Class A

    147,982   
  6,400     

Foot Locker, Inc.

    380,480   
  15,200     

Francescas Holding Corp.(1)

    257,336   
  4,106     

GNC Holdings, Inc. Class A

    176,763   
  19,300     

Nutrisystem, Inc.

    367,665   
  2,800     

Outerwall, Inc.

    186,004   
  14,300     

Overstock.com, Inc.(1)

    307,021   
  7,900     

Select Comfort Corp.(1)

    243,478   
  6,900     

Tilly’s, Inc. Class A(1)

    92,046   
  2,900     

Ulta Salon Cosmetics & Fragrance, Inc.(1)

    438,161   
  7,100     

Urban Outfitters, Inc.(1)

    284,284   
  4,851     

Williams-Sonoma, Inc.

    356,694   
  11,200     

zulily, Inc. Class A(1)

    139,608   
  5,239     

Zumiez, Inc.(1)

    166,129   
   

 

 

 
      5,769,845   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 2.5%  
  6,000     

Advanced Energy Industries, Inc.(1)

    146,760   
  3,300     

Ambarella, Inc.(1)

    241,395   
  26,900     

Amkor Technology, Inc.(1)

    189,107   
  11,657     

Cypress Semiconductor Corp.(1)

    155,271   
  10,200     

Integrated Device Technology, Inc.(1)

    185,538   
  10,792     

Kulicke & Soffa Industries, Inc.(1)

    163,067   
  7,500     

Skyworks Solutions, Inc.

    691,875   
  3,700     

Tessera Technologies, Inc.

    133,607   
   

 

 

 
      1,906,620   
   

 

 

 
      Software & Services - 10.1%  
  12,510     

Aspen Technology, Inc.(1)

    555,319   
  16,800     

AVG Technologies N.V.(1)

    401,856   
  3,714     

Barracuda Networks, Inc.(1)

    150,528   
  4,300     

Blackhawk Network Holdings, Inc.(1)

    158,111   
  2,630     

Cimpress N.V.(1)

    220,762   
  2,300     

Constant Contact, Inc.(1)

    80,155   
  14,500     

Convergys Corp.

    328,860   
  2,766     

CSG Systems International, Inc.

    80,546   
  2,400     

DST Systems, Inc.

    276,192   
  4,400     

EPAM Systems, Inc.(1)

    284,724   
  2,153     

ePlus, Inc.(1)

    178,613   
  6,000     

Fleetmatics Group Ltd.(1)

    273,480   
  6,415     

Global Sources Ltd.(1)

    35,539   
  8,900     

Guidewire Software, Inc.(1)

    444,555   
  9,800     

Liquidity Services, Inc.(1)

    91,728   
  5,500     

Logmein, Inc.(1)

    352,990   
  4,572     

Manhattan Associates, Inc.(1)

    240,304   
  4,900     

MAXIMUS, Inc.

    313,649   
  22,908     

Mentor Graphics Corp.

    548,189   
  1,882     

NetScout Systems, Inc.(1)

    77,350   
  5,254     

Paycom Software, Inc.(1)

    166,079   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.6% - (continued)  
      Software & Services - 10.1% - (continued)  
  3,498     

Pegasystems, Inc.

  $ 75,347   
  5,970     

Rackspace Hosting, Inc.(1)

    321,783   
  3,000     

Science Applications International Corp.

    150,300   
  8,158     

SolarWinds, Inc.(1)

    397,947   
  4,500     

SS&C Technologies Holdings, Inc.

    270,765   
  19,800     

Synopsys, Inc.(1)

    928,224   
  12,400     

VASCO Data Security International, Inc.(1)

    315,208   
   

 

 

 
      7,719,103   
   

 

 

 
      Technology Hardware & Equipment - 4.0%  
  8,054     

ADTRAN, Inc.

    133,777   
  8,432     

Alliance Fiber Optic Products, Inc.

    154,811   
  4,000     

Arrow Electronics, Inc.(1)

    238,840   
  6,900     

Avnet, Inc.

    294,147   
  3,100     

Benchmark Electronics, Inc.(1)

    72,943   
  47,497     

Brocade Communications Systems, Inc.

    536,716   
  3,318     

InterDigital, Inc.

    181,561   
  7,300     

Jabil Circuit, Inc.

    164,396   
  9,504     

Lexmark International, Inc. Class A

    421,883   
  4,000     

Methode Electronics, Inc.

    169,840   
  2,637     

Palo Alto Networks, Inc.(1)

    389,538   
  11,100     

Polycom, Inc.(1)

    144,855   
  7,725     

Sanmina Corp.(1)

    157,049   
   

 

 

 
      3,060,356   
   

 

 

 
      Telecommunication Services - 0.4%  
  6,900     

IDT Corp. Class B

    117,507   
  10,800     

Inteliquent, Inc.

    205,308   
   

 

 

 
      322,815   
   

 

 

 
      Transportation - 2.8%      
  15,642     

Alaska Air Group, Inc.

    1,002,027   
  3,500     

ArcBest Corp.

    124,950   
  7,800     

Avis Budget Group, Inc.(1)

    422,292   
  2,200     

Spirit Airlines, Inc.(1)

    150,634   
  11,700     

Swift Transportation Co.(1)

    283,140   
  5,900     

Werner Enterprises, Inc.

    158,533   
   

 

 

 
      2,141,576   
   

 

 

 
      Utilities - 4.1%      
  41,100     

Atlantic Power Corp.

    133,575   
  2,100     

El Paso Electric Co.

    78,141   
  19,500     

Great Plains Energy, Inc.

    510,510   
  13,640     

New Jersey Resources Corp.

    416,156   
  6,374     

ONE Gas, Inc.

    267,517   
  9,800     

Pinnacle West Capital Corp.

    599,760   
  8,230     

UGI Corp.

    286,486   
  22,760     

Westar Energy, Inc.

    856,914   
   

 

 

 
      3,149,059   
   

 

 

 
 

Total Common Stocks
(cost $65,226,215)

  $ 75,062,630   
   

 

 

 
 

Total Long-Term Investments
(cost $65,226,215)

  $ 75,062,630   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

95

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 2.2%  
      Other Investment Pools & Funds - 2.2%      
  1,657,286     

BlackRock Liquidity Funds TempFund Portfolio

  $ 1,657,286   
   

 

 

 
 

Total Short-Term Investments
(cost $1,657,286)

  $ 1,657,286   
   

 

 

 
 

Total Investments
(cost $66,883,501)^

    100.8    $ 76,719,916   
 

Other Assets and Liabilities

    (0.8 )%       (642,125
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     76,077,791   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

96

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $66,917,204 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     12,482,699   

Unrealized Depreciation

     (2,679,987
  

 

 

 

Net Unrealized Appreciation

   $ 9,802,712   
  

 

 

 

 

(1)  Non-income producing.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ADR

   American Depositary Receipt

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  97  

 


The Hartford Small/Mid Cap Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 879,675       $ 879,675       $       $   

Banks

     2,319,775         2,319,775                   

Capital Goods

     6,334,748         6,334,748                   

Commercial & Professional Services

     2,919,793         2,919,793                   

Consumer Durables & Apparel

     2,174,646         2,174,646                   

Consumer Services

     3,269,249         3,269,249                   

Diversified Financials

     2,447,441         2,447,441                   

Energy

     3,524,942         3,524,942                   

Food & Staples Retailing

     311,679         311,679                   

Food, Beverage & Tobacco

     670,291         670,291                   

Health Care Equipment & Services

     2,920,806         2,920,806                   

Household & Personal Products

     227,480         227,480                   

Insurance

     4,025,861         4,025,861                   

Materials

     4,135,968         4,135,968                   

Media

     210,494         210,494                   

Pharmaceuticals, Biotechnology & Life Sciences

     6,208,465         6,208,465                   

Real Estate

     8,411,943         8,411,943                   

Retailing

     5,769,845         5,769,845                   

Semiconductors & Semiconductor Equipment

     1,906,620         1,906,620                   

Software & Services

     7,719,103         7,719,103                   

Technology Hardware & Equipment

     3,060,356         3,060,356                   

Telecommunication Services

     322,815         322,815                   

Transportation

     2,141,576         2,141,576                   

Utilities

     3,149,059         3,149,059                   

Short-Term Investments

     1,657,286         1,657,286                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     76,719,916       $     76,719,916       $         —       $         —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

98

 


The Hartford SmallCap Growth Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     15.4

Consumer Staples

     3.9   

Energy

     2.9   

Financials

     8.9   

Health Care

     22.8   

Industrials

     13.8   

Information Technology

     26.1   

Materials

     5.3   

Telecommunication Services

     0.2   
  

 

 

 

Total

     99.3
  

 

 

 

Short-Term Investments

     1.0

Other Assets & Liabilities

     (0.3
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

99

 


The Hartford SmallCap Growth Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2%  
      Automobiles & Components - 1.6%  
  45,400     

American Axle & Manufacturing Holdings,
Inc.(1)

  $ 1,131,822   
  21,500     

Cooper Tire & Rubber Co.

    913,535   
  230,635     

Dana Holding Corp.

    4,974,797   
  150,895     

Tenneco Automotive, Inc.(1)

    8,819,813   
   

 

 

 
      15,839,967   
   

 

 

 
      Banks - 2.8%  
  311,935     

EverBank Financial Corp.

    5,792,633   
  253,405     

First Merchants Corp.

    5,719,351   
  128,770     

Flushing Financial Corp.

    2,467,233   
  126,120     

Great Western Bancorp, Inc.

    2,758,244   
  435,020     

MGIC Investment Corp.(1)

    4,532,908   
  94,010     

Sandy Spring Bancorp, Inc.

    2,449,901   
  105,265     

Wintrust Financial Corp.

    5,130,616   
   

 

 

 
      28,850,886   
   

 

 

 
      Capital Goods - 8.5%  
  91,000     

A.O. Smith Corp.

    5,814,900   
  219,155     

AAON, Inc.

    5,253,145   
  22,200     

Aegion Corp.(1)

    408,924   
  175,546     

Altra Industrial Motion Corp.

    4,629,148   
  14,742     

American Railcar Industries, Inc.

    781,916   
  7,750     

American Woodmark Corp.(1)

    392,925   
  9,300     

Argan, Inc.

    300,483   
  99,488     

Astronics Corp.(1)

    6,696,537   
  131,302     

AZZ, Inc.

    6,091,100   
  45,445     

Blount International, Inc.(1)

    602,601   
  22,100     

Douglas Dynamics, Inc.

    480,675   
  8,941     

Dycom Industries, Inc.(1)

    411,107   
  94,555     

Enphase Energy, Inc.(1)

    1,188,556   
  41,405     

Esterline Technologies Corp.(1)

    4,607,963   
  192,387     

Generac Holdings, Inc.(1)

    8,020,614   
  16,600     

Global Brass & Copper Holdings, Inc.

    252,984   
  130,410     

Heico Corp. Class A

    5,981,907   
  23,200     

Hillenbrand, Inc.

    681,848   
  24,600     

Hyster-Yale Materials Handling, Inc.

    1,804,164   
  70,270     

Lennox International, Inc.

    7,445,809   
  104,366     

Meritor, Inc.(1)

    1,369,282   
  83,380     

Moog, Inc. Class A(1)

    5,826,594   
  7,600     

Proto Labs, Inc.(1)

    532,000   
  54,595     

Taser International, Inc.(1)

    1,648,223   
  65,620     

Teledyne Technologies, Inc.(1)

    6,888,131   
  92,614     

Toro Co.

    6,208,843   
  25,600     

Trex Co., Inc.(1)

    1,201,152   
  10,085     

Woodward, Inc.

    474,499   
   

 

 

 
      85,996,030   
   

 

 

 
      Commercial & Professional Services - 3.3%  
  38,509     

Brink’s Co.

    1,019,333   
  8,007     

Corporate Executive Board Co.

    671,227   
  109,536     

Deluxe Corp.

    7,092,456   
  86,325     

Exponent, Inc.

    7,649,258   
  150,595     

GP Strategies Corp.(1)

    4,907,891   
  8,207     

Insperity, Inc.

    395,249   
  34,400     

Korn/Ferry International

    1,084,632   
  7,954     

Multi-Color Corp.

    499,352   
  145,585     

On Assignment, Inc.(1)

    4,898,935   
  20,783     

Performant Financial Corp.(1)

    61,726   
  59,623     

RPX Corp.(1)

    927,734   
  7,237     

UniFirst Corp.

    819,446   
  68,515     

WageWorks, Inc.(1)

    3,453,156   
   

 

 

 
      33,480,395   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Consumer Durables & Apparel - 4.2%  
  125,480     

Arctic Cat, Inc.

  $ 4,453,285   
  19,000     

Ethan Allen Interiors, Inc.

    460,180   
  22,679     

Helen of Troy Ltd.(1)

    1,986,907   
  240,823     

Kate Spade & Co.(1)

    7,874,912   
  52,211     

Nautilus, Inc.(1)

    877,667   
  74,058     

Oxford Industries, Inc.

    5,883,908   
  7,380     

Polaris Industries, Inc.

    1,010,765   
  223,700     

Quiksilver, Inc.(1)

    371,342   
  15,500     

Skechers USA, Inc. Class A(1)

    1,393,760   
  216,061     

Steven Madden Ltd.(1)

    8,430,700   
  170,455     

Taylor Morrison Home Corp. Class A(1)

    3,156,827   
  13,100     

Universal Electronics, Inc.(1)

    706,614   
  17,034     

Vera Bradley, Inc.(1)

    242,564   
  312,706     

Vince Holding Corp.(1)

    5,763,172   
   

 

 

 
      42,612,603   
   

 

 

 
      Consumer Services - 4.3%  
  23,700     

American Public Education, Inc.(1)

    660,993   
  346,044     

Bloomin’ Brands, Inc.

    7,841,357   
  82,281     

Brinker International, Inc.

    4,555,899   
  39,464     

Buffalo Wild Wings, Inc.(1)

    6,286,615   
  14,591     

Capella Education Co.

    788,352   
  242,860     

Del Frisco’s Restaurant Group, Inc.(1)

    4,898,486   
  17,600     

Domino’s Pizza, Inc.

    1,898,160   
  7,035     

Fiesta Restaurant Group, Inc.(1)

    355,619   
  9,500     

Grand Canyon Education, Inc.(1)

    430,160   
  29,176     

Jamba, Inc.(1)

    459,814   
  190,500     

La Quinta Holdings, Inc.(1)

    4,587,240   
  64,900     

LifeLock, Inc.(1)

    948,189   
  93,545     

Marriott Vacations Worldwide Corp.

    7,690,335   
  15,400     

Strayer Education, Inc.(1)

    781,088   
  30,600     

Texas Roadhouse, Inc.

    1,028,160   
  38,700     

Weight Watchers International, Inc.(1)

    330,885   
   

 

 

 
      43,541,352   
   

 

 

 
      Diversified Financials - 1.9%  
  96,637     

BGC Partners, Inc. Class A

    969,752   
  6,200     

Credit Acceptance Corp.(1)

    1,464,440   
  100,965     

Evercore Partners, Inc. Class A

    4,870,552   
  151,715     

HFF, Inc. Class A

    5,945,711   
  38,381     

MarketAxess Holdings, Inc.

    3,295,009   
  93,300     

Wisdomtree Investments, Inc.

    1,776,432   
  15,600     

World Acceptance Corp.(1)

    1,320,072   
   

 

 

 
      19,641,968   
   

 

 

 
      Energy - 2.9%  
  57,780     

Alon USA Energy, Inc.

    929,680   
  18,500     

CVR Energy, Inc.

    740,740   
  31,100     

Delek US Holdings, Inc.

    1,148,212   
  55,810     

Diamondback Energy, Inc.(1)

    4,608,232   
  115,310     

Forum Energy Technologies, Inc.(1)

    2,682,111   
  11,844     

Geospace Technologies Corp.(1)

    255,830   
  6,500     

Green Plains, Inc.

    202,410   
  62,000     

Hornbeck Offshore Services, Inc.(1)

    1,416,700   
  101,800     

ION Geophysical Corp.(1)

    232,104   
  43,797     

Jones Energy, Inc. Class A(1)

    449,357   
  11,805     

Matrix Service Co.(1)

    259,356   
  64,680     

Pacific Ethanol, Inc.(1)

    773,573   
  73,400     

PBF Energy, Inc. Class A

    2,083,092   
  15,429     

REX American Resources Corp.(1)

    975,421   
  158,631     

Rosetta Resources, Inc.(1)

    3,621,546   
  235,030     

RSP Permian, Inc.(1)

    6,820,571   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  100  

 


The Hartford SmallCap Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Energy - 2.9% - (continued)  
  17,115     

US Silica Holdings, Inc.

  $ 639,245   
  135,999     

Vaalco Energy, Inc.(1)

    335,918   
  30,007     

Western Refining, Inc.

    1,321,808   
   

 

 

 
      29,495,906   
   

 

 

 
      Food & Staples Retailing - 2.3%  
  126,640     

Casey’s General Stores, Inc.

    10,407,275   
  20,487     

Fresh Market, Inc.(1)

    719,913   
  201,020     

Natural Grocers by Vitamin Cottage, Inc.(1)

    5,290,846   
  82,740     

PriceSmart, Inc.

    6,657,261   
   

 

 

 
      23,075,295   
   

 

 

 
      Food, Beverage & Tobacco - 1.5%      
  19,626     

Cal-Maine Foods, Inc.

    877,479   
  34,800     

Pilgrim’s Pride Corp.

    859,560   
  85,500     

Post Holdings, Inc.(1)

    4,013,370   
  15,200     

Sanderson Farms, Inc.

    1,141,824   
  106,155     

TreeHouse Foods, Inc.(1)

    8,626,155   
   

 

 

 
      15,518,388   
   

 

 

 
      Health Care Equipment & Services - 10.5%  
  15,492     

ABIOMED, Inc.(1)

    979,404   
  93,761     

Acadia Healthcare Co., Inc.(1)

    6,422,628   
  5,620     

Align Technology, Inc.(1)

    330,681   
  17,632     

Anika Therapeutics, Inc.(1)

    601,604   
  14,535     

Atrion Corp.

    4,721,695   
  36,546     

Centene Corp.(1)

    2,265,487   
  15,400     

Computer Programs & Systems, Inc.

    805,882   
  91,183     

Cyberonics, Inc.(1)

    5,553,957   
  120,710     

Cynosure, Inc. Class A(1)

    4,034,128   
  167,635     

DexCom, Inc.(1)

    11,327,097   
  8,500     

Ensign Group, Inc.

    357,935   
  340,352     

Globus Medical, Inc. Class A(1)

    8,131,009   
  223,820     

HealthSouth Corp.

    10,121,140   
  37,425     

HeartWare International, Inc.(1)

    2,833,447   
  79,100     

ICU Medical, Inc.(1)

    6,673,667   
  28,500     

Magellan Health, Inc.(1)

    1,804,050   
  32,700     

Meridian Bioscience, Inc.

    579,444   
  23,107     

Molina Healthcare, Inc.(1)

    1,368,628   
  6,000     

Natus Medical, Inc.(1)

    226,260   
  174,525     

Omnicell, Inc.(1)

    6,200,873   
  29,900     

Orthofix International N.V.(1)

    966,069   
  82,700     

Quality Systems, Inc.

    1,289,706   
  30,049     

RadNet, Inc.(1)

    251,811   
  134,255     

Team Health Holdings, Inc.(1)

    7,997,570   
  37,500     

Triple-S Management Corp., Class B(1)

    702,000   
  146,435     

U.S. Physical Therapy, Inc.

    6,905,875   
  215,405     

Vascular Solutions, Inc.(1)

    6,905,884   
  75,470     

WellCare Health Plans, Inc.(1)

    5,843,642   
   

 

 

 
      106,201,573   
   

 

 

 
      Household & Personal Products - 0.1%      
  7,900     

Medifast, Inc.(1)

    237,000   
  6,400     

Usana Health Sciences, Inc.(1)

    727,936   
   

 

 

 
      964,936   
   

 

 

 
      Insurance - 1.5%      
  153,065     

AMERISAFE, Inc.

    6,917,007   
  12,980     

AmTrust Financial Services, Inc.

    771,921   
  26,600     

Greenlight Capital Re Ltd. Class A(1)

    808,374   
  9,356     

HCI Group, Inc.

    407,735   
  151,480     

James River Group Holdings Ltd.

    3,580,987   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Insurance - 1.5% - (continued)      
  70,374     

Maiden Holdings Ltd.

  $ 1,022,534   
  20,300     

United Insurance Holdings Corp.

    337,589   
  36,400     

Universal Insurance Holdings, Inc.

    874,328   
   

 

 

 
      14,720,475   
   

 

 

 
      Materials - 5.3%      
  184,212     

Boise Cascade Co.(1)

    6,392,156   
  82,680     

Cabot Corp.

    3,533,743   
  16,600     

Clearwater Paper Corp.(1)

    1,061,902   
  77,000     

Gold Resource Corp.

    259,490   
  832,900     

Graphic Packaging Holding Co.

    11,743,890   
  485,123     

Headwaters, Inc.(1)

    8,528,462   
  16,800     

Innospec, Inc.

    734,160   
  13,069     

KapStone Paper & Packaging Corp.

    365,279   
  508,200     

OMNOVA Solutions, Inc.(1)

    4,060,518   
  246,106     

PolyOne Corp.

    9,610,439   
  106,837     

Silgan Holdings, Inc.

    5,755,309   
  5,800     

Stepan Co.

    295,394   
  105,899     

Stillwater Mining Co.(1)

    1,422,224   
   

 

 

 
      53,762,966   
   

 

 

 
      Media - 0.0%      
  29,177     

McClatchy Co. Class A(1)

    40,556   
  31,396     

World Wrestling Entertainment, Inc. Class A

    421,334   
   

 

 

 
      461,890   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 12.3%  
  395,957     

Achillion Pharmaceuticals, Inc.(1)

    3,464,624   
  177,500     

Acorda Therapeutics, Inc.(1)

    5,337,425   
  129,310     

Aerie Pharmaceuticals, Inc.(1)

    1,246,548   
  92,121     

Affymetrix, Inc.(1)

    1,117,428   
  47,086     

Agios Pharmaceuticals, Inc.(1)

    4,347,921   
  115,750     

Alkermes plc(1)

    6,409,077   
  52,459     

Alnylam Pharmaceuticals, Inc.(1)

    5,343,998   
  145,552     

Anacor Pharmaceuticals, Inc.(1)

    7,669,135   
  4,775     

ANI Pharmaceuticals, Inc.(1)

    291,180   
  58,234     

Array BioPharma, Inc.(1)

    363,963   
  49,900     

Avalanche Biotechnologies, Inc.(1)

    1,589,814   
  283,302     

BioCryst Pharmaceuticals, Inc.(1)

    2,631,876   
  3,553     

Bluebird Bio, Inc.(1)

    473,224   
  16,900     

Cambrex Corp.(1)

    650,481   
  17,399     

Cempra, Inc.(1)

    547,895   
  64,277     

Dyax Corp.(1)

    1,536,863   
  29,500     

Emergent Biosolutions, Inc.(1)

    875,855   
  14,100     

Enanta Pharmaceuticals, Inc.(1)

    482,784   
  155,070     

Five Prime Therapeutics, Inc.(1)

    3,110,704   
  123,760     

GlycoMimetics, Inc.(1)

    1,025,970   
  36,233     

Impax Laboratories, Inc.(1)

    1,639,906   
  95,700     

Infinity Pharmaceuticals, Inc.(1)

    1,212,519   
  21,112     

Insys Therapeutics, Inc.(1)

    1,109,858   
  147,290     

Ironwood Pharmaceuticals, Inc.(1)

    2,011,981   
  41,000     

Isis Pharmaceuticals, Inc.(1)

    2,325,520   
  81,790     

KYTHERA Biopharmaceuticals, Inc.(1)

    3,573,405   
  20,300     

Lannett Co., Inc.(1)

    1,167,250   
  8,795     

Ligand Pharmaceuticals, Inc.(1)

    682,844   
  13,681     

MacroGenics, Inc.(1)

    391,413   
  184,760     

Medicines Co.(1)

    4,731,704   
  139,546     

Merrimack Pharmaceuticals, Inc.(1)

    1,548,961   
  62,700     

MiMedx Group, Inc.(1)

    589,380   
  28,447     

Omeros Corp.(1)

    572,354   
  33,206     

Ophthotech Corp.(1)

    1,503,568   
  87,975     

Orexigen Therapeutics, Inc.(1)

    577,996   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  101  

 


The Hartford SmallCap Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 12.3% -
(continued)
 
  88,650     

Otonomy, Inc.(1)

  $ 2,326,176   
  155,785     

PAREXEL International Corp.(1)

    9,904,031   
  279,735     

PDL Biopharma, Inc.

    1,865,832   
  144,060     

Portola Pharmaceuticals, Inc.(1)

    5,141,501   
  90,325     

Prestige Brands Holdings, Inc.(1)

    3,545,256   
  90,930     

PTC Therapeutics, Inc.(1)

    5,342,137   
  38,906     

Puma Biotechnology, Inc.(1)

    7,025,645   
  125,708     

Sciclone Pharmaceuticals, Inc.(1)

    1,027,034   
  63,100     

Sucampo Pharmaceuticals, Inc. Class A(1)

    1,120,656   
  107,565     

TESARO, Inc.(1)

    5,859,066   
  67,970     

Ultragenyx Pharmaceutical, Inc.(1)

    3,835,547   
  304,950     

XenoPort, Inc.(1)

    1,808,354   
  111,860     

Zafgen, Inc.(1)

    3,481,083   
   

 

 

 
      124,437,742   
   

 

 

 
      Real Estate - 1.6%      
  89,145     

Apollo Residential Mortgage, Inc. REIT

    1,413,840   
  123,335     

Coresite Realty Corp. REIT

    5,929,947   
  18,600     

Inland Real Estate Corp. REIT

    191,394   
  9,300     

Marcus & Millichap, Inc.(1)

    329,034   
  24,480     

Omega Healthcare Investors, Inc. REIT

    883,483   
  28,024     

Potlatch Corp. REIT

    1,034,366   
  392,846     

Sunstone Hotel Investors, Inc. REIT

    6,120,540   
   

 

 

 
      15,902,604   
   

 

 

 
      Retailing - 5.3%      
  32,209     

ANN, Inc.(1)

    1,219,433   
  35,800     

Buckle, Inc.

    1,603,840   
  37,457     

Build-A-Bear Workshop, Inc.(1)

    690,332   
  23,600     

Burlington Stores, Inc.(1)

    1,217,052   
  20,273     

Cato Corp. Class A

    797,540   
  125,094     

Core-Mark Holding Co., Inc.

    6,593,705   
  180,477     

DSW, Inc. Class A

    6,545,901   
  20,000     

Finish Line, Inc. Class A

    490,600   
  190,645     

Five Below, Inc.(1)

    6,428,549   
  85,300     

Francescas Holding Corp.(1)

    1,444,129   
  3,900     

Hibbett Sports, Inc.(1)

    182,520   
  130,930     

HSN, Inc.

    8,172,651   
  10,400     

Kirkland’s, Inc.(1)

    246,896   
  84,600     

Nutrisystem, Inc.

    1,611,630   
  21,300     

Outerwall, Inc.

    1,414,959   
  34,300     

Overstock.com, Inc.(1)

    736,421   
  10,900     

Party City Holdco, Inc.(1)

    226,611   
  450,964     

Pier 1 Imports, Inc.

    5,704,695   
  41,100     

Select Comfort Corp.(1)

    1,266,702   
  141,795     

Wayfair, Inc. Class A(1)

    4,554,455   
  142,475     

zulily, Inc. Class A(1)

    1,775,951   
  10,043     

Zumiez, Inc.(1)

    318,463   
   

 

 

 
      53,243,035   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 3.3%  
  15,800     

Advanced Energy Industries, Inc.(1)

    386,468   
  29,503     

Ambarella, Inc.(1)

    2,158,144   
  144,453     

Amkor Technology, Inc.(1)

    1,015,505   
  148,893     

Cypress Semiconductor Corp.(1)

    1,983,255   
  105,480     

Integrated Device Technology, Inc.(1)

    1,918,681   
  105,647     

Kulicke & Soffa Industries, Inc.(1)

    1,596,326   
  110,872     

Qorvo, Inc.(1)

    7,307,574   
  131,156     

SunEdison Semiconductor Ltd.(1)

    2,928,713   
  286,633     

SunEdison, Inc.(1)

    7,257,548   
  184,964     

SunPower Corp.(1)

    5,953,991   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Semiconductors & Semiconductor Equipment - 3.3% -
(continued)
 
  32,172     

Tessera Technologies, Inc.

  $ 1,161,731   
   

 

 

 
      33,667,936   
   

 

 

 
      Software & Services - 20.4%      
  199,142     

Aspen Technology, Inc.(1)

    8,839,913   
  74,339     

AVG Technologies N.V.(1)

    1,778,189   
  13,700     

Barracuda Networks, Inc.(1)

    555,261   
  23,598     

Blackhawk Network Holdings, Inc.(1)

    867,698   
  46,600     

CACI International, Inc. Class A(1)

    4,111,984   
  109,145     

Cass Information Systems, Inc.

    5,705,009   
  24,500     

Cimpress N.V.(1)

    2,056,530   
  132,900     

comScore, Inc.(1)

    6,958,644   
  13,840     

Constant Contact, Inc.(1)

    482,324   
  60,010     

CSG Systems International, Inc.

    1,747,491   
  50,040     

Demandware, Inc.(1)

    3,082,464   
  32,400     

DHI Group, Inc.(1)

    246,240   
  151,705     

Ellie Mae, Inc.(1)

    8,343,775   
  6,905     

Envestnet, Inc.(1)

    353,950   
  22,449     

EPAM Systems, Inc.(1)

    1,452,675   
  78,090     

ePlus, Inc.(1)

    6,478,346   
  5,900     

Euronet Worldwide, Inc.(1)

    345,032   
  294,823     

Everyday Health, Inc.(1)

    3,614,530   
  195,289     

Exlservice Holdings, Inc.(1)

    6,723,800   
  117,530     

Fair Isaac Corp.

    10,396,704   
  512,321     

Five9, Inc.(1)

    2,781,903   
  265,121     

Fleetmatics Group Ltd.(1)

    12,084,215   
  45,072     

Guidewire Software, Inc.(1)

    2,251,346   
  169,320     

Heartland Payment Systems, Inc.

    8,618,388   
  104,485     

HubSpot, Inc.(1)

    4,044,614   
  36,613     

Infoblox, Inc.(1)

    862,602   
  109,345     

j2 Global, Inc.

    7,585,263   
  26,800     

Logmein, Inc.(1)

    1,720,024   
  176,045     

Manhattan Associates, Inc.(1)

    9,252,925   
  122,550     

Marketo, Inc.(1)

    3,486,548   
  31,200     

MAXIMUS, Inc.

    1,997,112   
  362,902     

Model N, Inc.(1)

    4,264,099   
  155,921     

NetScout Systems, Inc.(1)

    6,408,353   
  42,525     

Pegasystems, Inc.

    915,989   
  224,985     

PTC, Inc.(1)

    8,625,925   
  132,790     

Q2 Holdings, Inc.(1)

    2,702,277   
  144,976     

Qualys, Inc.(1)

    7,179,212   
  20,700     

Science Applications International Corp.

    1,037,070   
  4,764     

Shutterstock, Inc.(1)

    321,522   
  32,000     

SolarWinds, Inc.(1)

    1,560,960   
  98,938     

Solera Holdings, Inc.

    4,800,472   
  47,116     

SS&C Technologies Holdings, Inc.

    2,834,970   
  11,500     

Stamps.com, Inc.(1)

    711,735   
  54,455     

Sykes Enterprises, Inc.(1)

    1,363,009   
  7,800     

Syntel, Inc.(1)

    351,156   
  110,035     

Tyler Technologies Corp.(1)

    13,418,768   
  65,100     

VASCO Data Security International, Inc.(1)

    1,654,842   
  106,880     

Verint Systems, Inc.(1)

    6,565,638   
  130,699     

WebMD Health Corp.(1)

    5,770,361   
  60,990     

WEX, Inc.(1)

    6,874,183   
  22,500     

Wix.com Ltd.(1)

    438,075   
   

 

 

 
      206,624,115   
   

 

 

 
      Technology Hardware & Equipment - 2.4%      
  52,563     

ADTRAN, Inc.

    873,071   
  22,500     

Alliance Fiber Optic Products, Inc.

    413,100   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  102  

 


The Hartford SmallCap Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.2% - (continued)  
      Technology Hardware & Equipment - 2.4% - (continued)  
  151,620     

CDW Corp. of Delaware

  $ 5,810,078   
  181,210     

Ciena Corp.(1)

    3,859,773   
  26,400     

DTS, Inc.(1)

    946,440   
  42,960     

FEI Co.

    3,241,762   
  22,700     

Infinera Corp.(1)

    426,760   
  27,600     

InterDigital, Inc.

    1,510,272   
  29,880     

Methode Electronics, Inc.

    1,268,705   
  29,300     

Polycom, Inc.(1)

    382,365   
  207,700     

Quantum Corp.(1)

    417,477   
  294,185     

Sonus Networks, Inc.(1)

    2,329,945   
  100,975     

Ubiquiti Networks, Inc.

    2,884,856   
   

 

 

 
      24,364,604   
   

 

 

 
      Telecommunication Services - 0.2%      
  117,400     

Cincinnati Bell, Inc.(1)

    402,682   
  21,900     

IDT Corp. Class B

    372,957   
  57,100     

Inteliquent, Inc.

    1,085,471   
   

 

 

 
      1,861,110   
   

 

 

 
      Transportation - 2.0%      
  8,000     

Alaska Air Group, Inc.

    512,480   
  4,700     

Allegiant Travel Co.

    722,672   
  20,215     

ArcBest Corp.

    721,676   
  182,723     

Celadon Group, Inc.

    4,721,562   
  43,000     

Hawaiian Holdings, Inc.(1)

    992,440   
  26,900     

JetBlue Airways Corp.(1)

    552,257   
  144,140     

Marten Transport Ltd.

    3,208,556   
  10,200     

Matson, Inc.

    413,100   
  19,100     

Spirit Airlines, Inc.(1)

    1,307,777   
  314,978     

Swift Transportation Co.(1)

    7,622,468   
   

 

 

 
      20,774,988   
   

 

 

 
 

Total Common Stocks
(cost $867,884,182)

  $ 995,040,764   
   

 

 

 
EXCHANGE TRADED FUNDS - 1.1%  
      Other Investment Pools & Funds - 1.1%      
  78,650     

iShares Russell 2000 Growth ETF

  $ 11,565,482   
   

 

 

 
 

Total Exchange Traded Funds
(cost $11,965,658)

  $ 11,565,482   
   

 

 

 
WARRANTS - 0.0%  
      Diversified Financials - 0.0%      
  1,613     

Imperial Holdings, Inc.(1)(2)

  $   
   

 

 

 
 

Total Warrants
(cost $—)

  $   
   

 

 

 
 

Total Long-Term Investments
(cost $879,849,840)

  $ 1,006,606,246   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 1.0%  
      Other Investment Pools & Funds - 1.0%      
  3,362,719     

BlackRock Liquidity Funds TempFund Portfolio

  $ 3,362,719   
  6,533,791     

Federated Prime Obligations Fund

    6,533,791   
   

 

 

 
 

Total Short-Term Investments
(cost $9,896,510)

  $ 9,896,510   
   

 

 

 
 

Total Investments
(cost $889,746,350)^

    100.3    $ 1,016,502,756   
 

Other Assets and Liabilities

    (0.3 )%       (2,613,924
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,013,888,832   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

103

 


The Hartford SmallCap Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $892,393,573 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 158,797,371   

Unrealized Depreciation

     (34,688,188
  

 

 

 

Net Unrealized Appreciation

   $     124,109,183   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

12/2015

     1,613       Imperial Holdings, Inc. Warrants    $     —   

At April 30, 2015, the aggregate value of these securities were $0, which represents 0.0% of total net assets.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ETF

   Exchange Traded Fund

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  104  

 


The Hartford SmallCap Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Common Stocks

           

Automobiles & Components

   $ 15,839,967       $ 15,839,967       $       $   

Banks

     28,850,886         28,850,886                   

Capital Goods

     85,996,030         85,996,030                   

Commercial & Professional Services

     33,480,395         33,480,395                   

Consumer Durables & Apparel

     42,612,603         42,612,603                   

Consumer Services

     43,541,352         43,541,352                   

Diversified Financials

     19,641,968         19,641,968                   

Energy

     29,495,906         29,495,906                   

Food & Staples Retailing

     23,075,295         23,075,295                   

Food, Beverage & Tobacco

     15,518,388         15,518,388                   

Health Care Equipment & Services

     106,201,573         106,201,573                   

Household & Personal Products

     964,936         964,936                   

Insurance

     14,720,475         14,720,475                   

Materials

     53,762,966         53,762,966                   

Media

     461,890         461,890                   

Pharmaceuticals, Biotechnology & Life Sciences

     124,437,742         124,437,742                   

Real Estate

     15,902,604         15,902,604                   

Retailing

     53,243,035         53,243,035                   

Semiconductors & Semiconductor Equipment

     33,667,936         33,667,936                   

Software & Services

     206,624,115         206,624,115                   

Technology Hardware & Equipment

     24,364,604         24,364,604                   

Telecommunication Services

     1,861,110         1,861,110                   

Transportation

     20,774,988         20,774,988                   

Exchange Traded Funds

     11,565,482         11,565,482                   

Warrants

                               

Short-Term Investments

     9,896,510         9,896,510                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,016,502,756       $     1,016,502,756       $     —       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

105

 


The Hartford Value Opportunities Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     7.5

Consumer Staples

     2.2   

Energy

     13.9   

Financials

     31.6   

Health Care

     10.1   

Industrials

     10.6   

Information Technology

     10.0   

Materials

     8.0   

Telecommunication Services

     1.5   

Utilities

     4.3   
  

 

 

 

Total

     99.7
  

 

 

 

Short-Term Investments

     0.2

Other Assets & Liabilities

     0.1   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

106

 


The Hartford Value Opportunities Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7%  
      Banks - 9.3%      
  174,708     

Citigroup, Inc.

  $ 9,315,431   
  170,279     

JP Morgan Chase & Co.

    10,771,849   
  80,906     

PNC Financial Services Group, Inc.

    7,421,507   
  30,500     

South State Corp.

    2,065,460   
   

 

 

 
      29,574,247   
   

 

 

 
      Capital Goods - 8.2%      
  59,400     

Eaton Corp. plc

    4,082,562   
  61,600     

Generac Holdings, Inc.(1)

    2,568,104   
  305,679     

General Electric Co.

    8,277,787   
  13,400     

Orbital ATK, Inc.

    980,344   
  17,500     

Raytheon Co.

    1,820,000   
  115,461     

Rexel S.A.

    2,176,051   
  16,303     

Sulzer AG

    1,819,221   
  58,320     

WESCO International, Inc.(1)

    4,207,205   
   

 

 

 
      25,931,274   
   

 

 

 
      Commercial & Professional Services - 1.2%      
  174,362     

Knoll, Inc.

    3,970,223   
   

 

 

 
      Consumer Durables & Apparel - 2.1%      
  62,400     

D.R. Horton, Inc.

    1,584,960   
  107,445     

Electrolux AB Series B

    3,217,185   
  135,380     

Vera Bradley, Inc.(1)

    1,927,811   
   

 

 

 
      6,729,956   
   

 

 

 
      Consumer Services - 2.5%      
  74,800     

Las Vegas Sands Corp.

    3,955,424   
  73,500     

Melco Crown Entertainment Ltd. ADR

    1,500,870   
  21,400     

Norwegian Cruise Line Holdings Ltd.(1)

    1,038,114   
  360,000     

Sands China Ltd.

    1,467,500   
   

 

 

 
      7,961,908   
   

 

 

 
      Diversified Financials - 4.0%      
  72,317     

Julius Baer Group Ltd.(1)

    3,785,125   
  59,710     

Northern Trust Corp.

    4,367,786   
  78,800     

Raymond James Financial, Inc.

    4,454,564   
  73,500     

Solar Cayman Ltd.(1)(2)(3)(4)

    5,145   
   

 

 

 
      12,612,620   
   

 

 

 
      Energy - 13.9%      
  36,400     

Baker Hughes, Inc.

    2,491,944   
  56,175     

Cabot Oil & Gas Corp.

    1,899,838   
  111,800     

Cameco Corp.

    1,966,346   
  137,695     

Canadian Natural Resources Ltd.

    4,578,359   
  237,570     

Cobalt International Energy, Inc.(1)

    2,541,999   
  19,100     

Diamondback Energy, Inc.(1)

    1,577,087   
  99,115     

Halliburton Co.

    4,851,679   
  22,500     

Helmerich & Payne, Inc.

    1,754,325   
  75,505     

HollyFrontier Corp.

    2,928,084   
  182,500     

Laredo Petroleum, Inc.(1)

    2,883,500   
  57,990     

National Oilwell Varco, Inc.

    3,155,236   
  18,220     

Pioneer Natural Resources Co.

    3,148,052   
  78,485     

QEP Resources, Inc.

    1,765,912   
  269,530     

Southwestern Energy Co.(1)

    7,554,926   
  265,600     

Trican Well Service Ltd.

    1,122,719   
   

 

 

 
      44,220,006   
   

 

 

 
      Food, Beverage & Tobacco - 2.2%      
  82,489     

Imperial Tobacco Group plc

    4,027,979   
  18,835     

Ingredion, Inc.

    1,495,499   
  310,148     

Treasury Wine Estates Ltd.

    1,360,236   
   

 

 

 
      6,883,714   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7% - (continued)  
      Health Care Equipment & Services - 0.5%      
  16,055     

Aetna, Inc.

  $ 1,715,798   
   

 

 

 
      Insurance - 12.1%      
  127,208     

American International Group, Inc.

    7,160,539   
  74,900     

Arthur J Gallagher & Co.

    3,582,467   
  242,832     

MetLife, Inc.

    12,454,853   
  152,742     

Principal Financial Group, Inc.

    7,808,171   
  74,200     

Torchmark Corp.

    4,163,362   
  93,200     

Unum Group

    3,183,712   
   

 

 

 
      38,353,104   
   

 

 

 
      Materials - 8.0%      
  52,320     

Cabot Corp.

    2,236,157   
  92,020     

Celanese Corp. Series A

    6,106,447   
  140,500     

Constellium N.V. Class A(1)

    2,580,985   
  106,500     

Huntsman Corp.

    2,454,825   
  100,200     

Norbord, Inc.

    2,021,440   
  112,605     

Reliance Steel & Aluminum Co.

    7,287,796   
  64,265     

Rio Tinto plc ADR

    2,878,429   
   

 

 

 
      25,566,079   
   

 

 

 
      Media - 2.0%      
  124,300     

Quebecor, Inc. Class B

    3,418,379   
  179,779     

Sky plc

    2,964,184   
   

 

 

 
      6,382,563   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 9.6%  
  33,900     

AstraZeneca plc ADR

    2,321,472   
  4,400     

Biogen, Inc.(1)

    1,645,292   
  109,297     

Bristol-Myers Squibb Co.

    6,965,498   
  209,229     

Merck & Co., Inc.

    12,461,679   
  76,000     

Mylan N.V.(1)

    5,491,760   
  28,197     

TESARO, Inc.(1)

    1,535,891   
   

 

 

 
      30,421,592   
   

 

 

 
      Real Estate - 6.2%      
  43,600     

American Tower Corp. REIT

    4,121,508   
  23,195     

AvalonBay Communities, Inc. REIT

    3,811,866   
  136,300     

Columbia Property Trust, Inc. REIT

    3,575,149   
  61,227     

Equity LifeStyle Properties, Inc. REIT

    3,234,010   
  9,300     

SL Green Realty Corp. REIT

    1,137,948   
  155,595     

Two Harbors Investment Corp. REIT

    1,633,748   
  66,040     

Weyerhaeuser Co. REIT

    2,080,920   
   

 

 

 
      19,595,149   
   

 

 

 
      Retailing - 1.1%      
  571,800     

Allstar Co.(1)(3)(4)

    588,954   
  65,750     

GNC Holdings, Inc. Class A

    2,830,537   
   

 

 

 
      3,419,491   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 1.2%  
  114,390     

Maxim Integrated Products, Inc.

    3,755,424   
   

 

 

 
      Software & Services - 2.7%  
  128,575     

Activision Blizzard, Inc.

    2,933,439   
  10,200     

Google, Inc. Class A(1)

    5,597,454   
   

 

 

 
      8,530,893   
   

 

 

 
      Technology Hardware & Equipment - 6.1%      
  175,500     

ARRIS Group, Inc.(1)

    5,909,963   
  340,924     

Cisco Systems, Inc.

    9,828,839   
  2,768     

Samsung Electronics Co., Ltd.

    3,631,211   
   

 

 

 
      19,370,013   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

107

 


The Hartford Value Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 99.7% - (continued)  
      Telecommunication Services - 1.5%      
  95,900     

Verizon Communications, Inc.

  $ 4,837,196   
   

 

 

 
      Transportation - 1.0%      
  32,405     

United Parcel Service, Inc. Class B

    3,257,675   
   

 

 

 
      Utilities - 4.3%      
  176,600     

Exelon Corp.

    6,007,932   
  62,485     

PG&E Corp.

    3,306,706   
  292,529     

Snam S.p.A.

    1,523,825   
  85,925     

Xcel Energy, Inc.

    2,913,717   
   

 

 

 
      13,752,180   
   

 

 

 
 

Total Common Stocks
(cost $299,207,426)

  $ 316,841,105   
   

 

 

 
 

Total Long-Term Investments
(cost $299,207,426)

  $ 316,841,105   
   

 

 

 
SHORT-TERM INVESTMENTS - 0.2%  
      Other Investment Pools & Funds - 0.2%  
  583,263     

Federated Prime Obligations Fund

  $ 583,263   
   

 

 

 
 

Total Short-Term Investments
(cost $583,263)

  $ 583,263   
   

 

 

 
 

Total Investments
(cost $299,790,689)^

    99.9    $ 317,424,368   
 

Other Assets and Liabilities

    0.1      384,470   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     317,808,838   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

108

 


The Hartford Value Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $300,799,389 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 31,040,186   

Unrealized Depreciation

         (14,415,207
  

 

 

 

Net Unrealized Appreciation

   $ 16,624,979   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At April 30, 2015, the aggregate value of this security was $5,145, which represents 0.0% of total net assets.

 

(3)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

08/2011

     571,800       Allstar Co.    $ 248,744   

03/2007

     73,500       Solar Cayman Ltd.      21,542   
        

 

 

 
         $     270,286   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $594,099, which represents 0.2% of total net assets.

 

(4)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $594,099, which represents 0.2% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

CHF

  

Sell

     05/04/15       MSC    $ 162,574       $ 163,506       $ (932

EUR

  

Buy

     06/17/15       RBS          2,684,114             2,749,352         65,238   

EUR

  

Sell

     06/17/15       NAB      5,133,661         5,425,673         (292,012

EUR

  

Sell

     06/17/15       RBS      5,118,402         5,425,674         (307,272

GBP

  

Sell

     06/17/15       BNP      843,707         865,446         (21,739

GBP

  

Sell

     06/17/15       BCLY      1,568,199         1,597,392         (29,193

GBP

  

Sell

     06/17/15       RBS      1,566,310         1,595,858         (29,548

JPY

  

Buy

     06/17/15       GSC      2,198,061         2,233,611         35,550   

JPY

  

Sell

     06/17/15       DEUT      1,100,846         1,116,805         (15,959

JPY

  

Sell

     06/17/15       JPM      1,100,737         1,116,805         (16,068
                 

 

 

 

Total

                  $     (611,935
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

109

 


The Hartford Value Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBS

   RBS Greenwich Capital
Currency Abbreviations:

CHF

   Swiss Franc

EUR

   Euro

GBP

   British Pound

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  110  

 


The Hartford Value Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Banks

   $ 29,574,247      $ 29,574,247       $      $   

Capital Goods

     25,931,274        21,936,002         3,995,272          

Commercial & Professional Services

     3,970,223        3,970,223                  

Consumer Durables & Apparel

     6,729,956        3,512,771         3,217,185          

Consumer Services

     7,961,908        6,494,408         1,467,500          

Diversified Financials

     12,612,620        8,822,350         3,785,125        5,145   

Energy

     44,220,006        44,220,006                  

Food, Beverage & Tobacco

     6,883,714        1,495,499         5,388,215          

Health Care Equipment & Services

     1,715,798        1,715,798                  

Insurance

     38,353,104        38,353,104                  

Materials

     25,566,079        25,566,079                  

Media

     6,382,563        3,418,379         2,964,184          

Pharmaceuticals, Biotechnology & Life Sciences

     30,421,592        30,421,592                  

Real Estate

     19,595,149        19,595,149                  

Retailing

     3,419,491        2,830,537                588,954   

Semiconductors & Semiconductor Equipment

     3,755,424        3,755,424                  

Software & Services

     8,530,893        8,530,893                  

Technology Hardware & Equipment

     19,370,013        15,738,802         3,631,211          

Telecommunication Services

     4,837,196        4,837,196                  

Transportation

     3,257,675        3,257,675                  

Utilities

     13,752,180        12,228,355         1,523,825          

Short-Term Investments

     583,263        583,263                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     317,424,368      $     290,857,752       $     25,972,517      $     594,099   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 100,788      $       $ 100,788      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 100,788      $       $ 100,788      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (712,723   $       $ (712,723   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (712,723   $       $ (712,723   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks      Total  

Beginning balance

   $ 490,489       $ 490,489   

Purchases

               

Sales

               

Accrued discounts/(premiums)

               

Total realized gain/(loss)

               

Net change in unrealized appreciation/depreciation

     103,610         103,610   

Transfers into Level 3(1)

               

Transfers out of Level 3(1)

               
  

 

 

    

 

 

 

Ending balance

   $     594,099       $     594,099   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $103,610.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  111  

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Capital
Appreciation
Fund
     Hartford
Core Equity
Fund
     The Hartford
Dividend and
Growth Fund
 

Assets:

        

Investments in securities, at market value

   $     11,457,060,640       $     240,226,198       $     8,159,696,065   

Cash

     137,765         1,876           

Cash collateral

             317,400           

Foreign currency on deposit with custodian

     610,305                   

Unrealized appreciation on foreign currency contracts

     308,208                   

Receivables:

        

Investment securities sold

     129,423,091         483,421         33,546,195   

Fund shares sold

     6,242,246         2,367,765         6,067,758   

Dividends and interest

     18,376,513         175,211         11,267,776   

Other assets

     98,882         122,000         89,830   
  

 

 

    

 

 

    

 

 

 

Total assets

     11,612,257,650         243,693,871         8,210,667,624   
  

 

 

    

 

 

    

 

 

 

Liabilities:

        

Unrealized depreciation on foreign currency contracts

     12,078,803                   

Bank overdraft

                       

Payables:

        

Investment securities purchased

     150,136,464         794,610         36,367,997   

Fund shares redeemed

     12,708,622         346,378         10,026,051   

Investment management fees

     6,238,523         83,003         4,062,935   

Variation margin on financial derivative instruments

             69,364           

Distribution fees

     3,073,954         62,845         1,309,729   

Distributions payable

     15                   

Accrued expenses

     1,764,253         29,981         1,099,877   
  

 

 

    

 

 

    

 

 

 

Total liabilities

     186,000,634         1,386,181         52,866,589   
  

 

 

    

 

 

    

 

 

 

Net assets

   $ 11,426,257,016       $ 242,307,690       $ 8,157,801,035   
  

 

 

    

 

 

    

 

 

 

Summary of Net Assets:

        

Capital stock and paid-in-capital

   $ 9,962,977,224       $ 199,471,874       $ 5,583,967,829   

Undistributed (distributions in excess of) net investment income

     12,540,315         369,139         12,468,525   

Accumulated net realized gain (loss)

     474,916,999         3,877,428         338,659,016   

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     975,822,478         38,589,249         2,222,705,665   
  

 

 

    

 

 

    

 

 

 

Net assets

   $ 11,426,257,016       $ 242,307,690       $ 8,157,801,035   
  

 

 

    

 

 

    

 

 

 

Shares authorized

     1,615,000,000         450,000,000         1,000,000,000   
  

 

 

    

 

 

    

 

 

 

Par value

   $ 0.001       $ 0.001       $ 0.001   
  

 

 

    

 

 

    

 

 

 

Class A:     Net asset value per share

   $ 38.69       $ 23.29       $ 25.53   
  

 

 

    

 

 

    

 

 

 

                 Maximum offering price per share

   $ 40.94       $ 24.65       $ 27.02   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     148,827,576         7,278,999         151,145,454   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 5,758,185,207       $ 169,527,754       $ 3,859,234,310   
  

 

 

    

 

 

    

 

 

 

Class B:     Net asset value per share

   $ 31.57       $ 21.71       $ 25.06   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     6,553,006         76,746         2,331,687   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 206,888,958       $ 1,665,938       $ 58,443,035   
  

 

 

    

 

 

    

 

 

 

Class C:     Net asset value per share

   $ 32.04       $ 21.65       $ 24.87   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     60,329,556         1,556,180         19,447,985   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,932,773,318       $ 33,694,070       $ 483,693,972   
  

 

 

    

 

 

    

 

 

 

Class I:      Net asset value per share

   $ 38.78       $ 23.30       $ 25.43   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     47,557,811         41,366         75,047,085   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,844,472,287       $ 963,726       $ 1,908,492,174   
  

 

 

    

 

 

    

 

 

 

Class R3:   Net asset value per share

   $ 41.70       $ 23.70       $ 25.78   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     3,195,048         27,087         3,597,625   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 133,248,183       $ 642,055       $ 92,763,155   
  

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

112

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Equity Income
Fund
    The Hartford
Growth
Opportunities
Fund
    The Hartford
Healthcare Fund
    The Hartford
MidCap Fund
    The Hartford
MidCap Value
Fund
    The Hartford
Small Company
Fund
    The Hartford
Small/Mid Cap
Equity Fund
 
           
$ 3,841,769,958      $ 4,260,873,133      $ 1,366,809,633      $ 4,756,893,955      $ 512,883,922      $ 959,039,584      $ 76,719,916   
         13,493                                      
                                              
         24        5                               
         6,099        1,871               37                 
           
         11,797,839        5,836,195        1,842,145        505,358        21,241,340          
  9,230,012        22,677,740        7,195,703        9,836,692        633,631        1,396,430        229,468   
  7,036,321        1,951,225        1,124,962        531,111        224,448        24,459        33,550   
  105,291        162,692        108,616        112,438        76,796        78,579        64,583   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  3,858,141,582        4,297,482,245        1,381,076,985        4,769,216,341        514,324,192        981,780,392        77,047,517   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
                3,156               73                 
  424                                    224,597          
           
  12,114,106        37,841,252        27,656,938        3,123,912        1,360,651        21,122,781        812,457   
  8,034,593        4,952,192        1,263,443        9,630,112        453,011        715,462        61,875   
  1,961,733        2,447,771        962,455        2,865,942        317,913        640,772        47,679   
                                              
  854,360        626,843        407,970        1,000,652        93,562        148,370        26,212   
                                              
  527,545        598,901        125,130        553,199        82,869        167,828        21,503   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  23,492,761        46,466,959        30,419,092        17,173,817        2,308,079        23,019,810        969,726   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 3,834,648,821      $ 4,251,015,286      $ 1,350,657,893      $ 4,752,042,524      $ 512,016,113      $ 958,760,582      $ 76,077,791   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
$ 2,931,410,900      $ 3,428,187,033      $ 909,879,262      $ 3,380,099,967      $ 398,532,449      $ 791,697,515      $ 70,218,712   
  5,772,225        (5,847,528     (8,152,403     (5,041,381     (706,364     (2,696,391     298,912   
  134,542,413        252,620,015        73,198,703        207,853,128        17,060,104        69,669,672        (4,276,248
 
 
    
762,923,283
 
  
    576,055,766        375,732,331        1,169,130,810        97,129,924        100,089,786        9,836,415   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     3,834,648,821      $ 4,251,015,286      $     1,350,657,893      $     4,752,042,524      $     512,016,113      $     958,760,582      $ 76,077,791   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  600,000,000            23,750,000,000        500,000,000        760,000,000        500,000,000        500,000,000            950,000,000   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.00      $ 39.96      $ 38.24      $ 26.25      $ 15.69      $ 21.37      $ 13.05   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 20.11      $ 42.29      $ 40.47      $ 27.78      $ 16.60      $ 22.61      $ 13.81   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  101,409,021        41,625,899        20,493,623        77,402,699        15,153,929        17,446,290        4,345,616   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 1,927,191,358      $ 1,663,573,791      $ 783,667,790      $ 2,032,107,581      $ 237,708,694      $ 372,855,956      $ 56,716,432   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.01      $ 28.70      $ 33.16      $ 20.06      $ 13.71      $ 16.72      $ 12.29   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  921,979        702,236        265,439        1,392,535        136,716        236,408        197,346   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 17,531,104      $ 20,152,326      $ 8,801,368      $ 27,931,580      $ 1,874,305      $ 3,951,845      $ 2,424,515   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 18.92      $ 28.96      $ 33.45      $ 20.64      $ 13.65      $ 16.68      $ 12.12   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  25,514,983        10,178,502        7,346,711        28,782,160        3,160,657        2,368,259        1,155,852   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 482,759,482      $ 294,725,944      $ 245,745,351      $ 594,013,426      $ 43,133,766      $ 39,511,250      $ 14,012,587   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 18.93      $ 41.20      $ 39.45      $ 26.70      $ 15.78      $ 22.10      $ 13.06   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  48,342,681        47,807,695        5,119,963        24,595,897        2,207,769        3,231,077        7,463   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 914,952,575      $ 1,969,532,572      $ 201,967,497      $ 656,813,093      $ 34,830,922      $ 71,400,056      $ 97,441   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.02      $ 40.45      $ 39.28      $ 29.01      $ 16.44      $ 22.96      $ 13.40   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  3,326,977        899,334        1,405,113        2,443,300        556,640        1,769,212        54,846   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 63,284,862      $ 36,378,442      $ 55,187,812      $ 70,881,435      $ 9,153,412      $ 40,616,290      $ 734,749   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

113

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Capital
Appreciation
Fund
     Hartford
Core Equity
Fund
     The Hartford
Dividend and
Growth Fund
 

Class R4:   Net asset value per share

   $ 42.66       $ 23.95       $ 25.92   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     4,342,650         131,978         6,087,298   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 185,254,064       $ 3,160,665       $ 157,781,824   
  

 

 

    

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 43.38       $ 23.45       $ 25.99   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     1,269,378         969,243         9,343,411   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 55,059,464       $ 22,733,161       $ 242,869,003   
  

 

 

    

 

 

    

 

 

 

Class R6:   Net asset value per share

   $ 43.57       $ 23.52       $ 26.01   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     242         425         396   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 10,546       $ 9,998       $ 10,294   
  

 

 

    

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 43.56       $ 23.53       $ 26.01   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     30,078,646         421,244         52,085,942   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,310,364,989       $ 9,910,323       $ 1,354,513,268   
  

 

 

    

 

 

    

 

 

 

Cost of investments

   $     10,469,087,956       $     201,608,869       $     5,936,990,400   

Cost of foreign currency on deposit with custodian

   $ 595,610       $       $   

 

The accompanying notes are an integral part of these financial statements.

 

 

  114  

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Equity Income
Fund
    The Hartford
Growth
Opportunities
Fund
    The Hartford
Healthcare Fund
    The Hartford
MidCap Fund
    The Hartford
MidCap Value
Fund
    The Hartford
Small Company
Fund
    The Hartford
Small/Mid Cap
Equity Fund
 
$ 19.05      $ 41.77      $ 40.52      $ 29.69      $ 16.60      $ 23.85      $ 13.43   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  4,132,911        1,421,770        1,048,878        4,462,395        739,334        2,895,171        39,731   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 78,711,715      $ 59,382,857      $ 42,499,013      $ 132,480,494      $ 12,272,682      $ 69,036,199      $ 533,590   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.12      $ 42.90      $ 41.66      $ 30.10      $ 16.74      $ 24.65      $ 13.48   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  5,036,331        2,640,334        114,850        4,809,165        454,910        448,535        17,048   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 96,291,510      $ 113,282,783      $ 4,784,436      $ 144,778,239      $ 7,614,760      $ 11,055,573      $ 229,801   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.15      $ 43.32      $      $ 30.27      $      $ 25.00      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,169        254               29,553               416          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 22,392      $ 11,004      $      $ 894,612      $      $ 10,402      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 19.15      $ 43.31      $ 41.95      $ 30.26      $ 16.77      $ 24.99      $ 13.47   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  13,256,341        2,169,959        190,798        36,089,979        9,865,323        14,018,515        98,664   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 253,903,823      $ 93,975,567      $ 8,004,626      $ 1,092,142,064      $ 165,427,572      $ 350,323,011      $ 1,328,676   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     3,078,844,450      $     3,684,809,554      $     991,073,110      $     3,587,763,145      $     415,750,923      $     858,949,795      $     66,883,501   
$      $ 23      $ 5      $      $      $      $   

 

The accompanying notes are an integral part of these financial statements.

 

 

  115  

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
SmallCap
Growth Fund
     The Hartford
Value
Opportunities
Fund
 

Assets:

     

Investments in securities, at market value

   $ 1,016,502,756       $ 317,424,368   

Cash

     18,543         38,974   

Unrealized appreciation on foreign currency contracts

             100,788   

Receivables:

     

Investment securities sold

     4,522,500         1,335,029   

Fund shares sold

     3,188,056         127,915   

Dividends and interest

     138,687         378,133   

Other assets

     106,188         65,373   
  

 

 

    

 

 

 

Total assets

     1,024,476,730         319,470,580   
  

 

 

    

 

 

 

Liabilities:

     

Unrealized depreciation on foreign currency contracts

             712,723   

Payables:

     

Investment securities purchased

     9,000,529         105,754   

Fund shares redeemed

     749,822         511,728   

Investment management fees

     614,578         182,570   

Distribution fees

     127,365         78,543   

Accrued expenses

     95,604         70,424   
  

 

 

    

 

 

 

Total liabilities

     10,587,898         1,661,742   
  

 

 

    

 

 

 

Net assets

   $ 1,013,888,832       $ 317,808,838   
  

 

 

    

 

 

 

Summary of Net Assets:

     

Capital stock and paid-in-capital

   $ 845,710,632       $ 291,876,823   

Undistributed (distributions in excess of) net investment income

     176,849         1,694,939   

Accumulated net realized gain (loss)

     41,244,945         7,215,830   

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     126,756,406         17,021,246   
  

 

 

    

 

 

 

Net assets

   $ 1,013,888,832       $ 317,808,838   
  

 

 

    

 

 

 

Shares authorized

         27,000,000,000             27,000,000,000   
  

 

 

    

 

 

 

Par value

   $ 0.001       $ 0.001   
  

 

 

    

 

 

 

Class A:     Net asset value per share

   $ 50.37       $ 19.87   
  

 

 

    

 

 

 

                 Maximum offering price per share

   $ 53.30       $ 21.03   
  

 

 

    

 

 

 

                 Shares outstanding

     5,244,491         11,525,302   
  

 

 

    

 

 

 

                 Net Assets

   $ 264,166,023       $ 229,000,133   
  

 

 

    

 

 

 

Class B:     Net asset value per share

   $ 40.97       $ 17.59   
  

 

 

    

 

 

 

                 Shares outstanding

     52,715         162,998   
  

 

 

    

 

 

 

                 Net Assets

   $ 2,159,969       $ 2,867,006   
  

 

 

    

 

 

 

Class C:     Net asset value per share

   $ 40.63       $ 17.47   
  

 

 

    

 

 

 

                 Shares outstanding

     1,294,035         1,710,991   
  

 

 

    

 

 

 

                 Net Assets

   $ 52,577,087       $ 29,890,424   
  

 

 

    

 

 

 

Class I:      Net asset value per share

   $ 51.45       $ 19.63   
  

 

 

    

 

 

 

                 Shares outstanding

     3,765,105         1,736,023   
  

 

 

    

 

 

 

                 Net Assets

   $ 193,715,940       $ 34,075,634   
  

 

 

    

 

 

 

Class R3:   Net asset value per share

   $ 50.42       $ 20.08   
  

 

 

    

 

 

 

                 Shares outstanding

     312,603         199,942   
  

 

 

    

 

 

 

                 Net Assets

   $ 15,761,105       $ 4,014,951   
  

 

 

    

 

 

 

Class R4:   Net asset value per share

   $ 51.72       $ 20.27   
  

 

 

    

 

 

 

                 Shares outstanding

     1,394,292         659,429   
  

 

 

    

 

 

 

                 Net Assets

   $ 72,109,788       $ 13,366,149   
  

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

116

 


Hartford Funds – Domestic Equity Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
SmallCap
Growth Fund
     The Hartford
Value
Opportunities
Fund
 

Class R5:   Net asset value per share

   $ 53.17       $ 20.40   
  

 

 

    

 

 

 

                 Shares outstanding

     1,938,195         133,317   
  

 

 

    

 

 

 

                 Net Assets

   $ 103,045,694       $ 2,719,659   
  

 

 

    

 

 

 

Class R6:   Net asset value per share

   $ 53.59       $   
  

 

 

    

 

 

 

                 Shares outstanding

     201           
  

 

 

    

 

 

 

                 Net Assets

   $ 10,786       $   
  

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 53.59       $ 20.45   
  

 

 

    

 

 

 

                 Shares outstanding

     5,791,455         91,689   
  

 

 

    

 

 

 

                 Net Assets

   $     310,342,440       $ 1,874,882   
  

 

 

    

 

 

 

Cost of investments

   $ 889,746,350       $     299,790,689   

 

The accompanying notes are an integral part of these financial statements.

 

 

  117  

 


Hartford Funds – Domestic Equity Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Capital
Appreciation
Fund
    Hartford
Core Equity
Fund
    The Hartford
Dividend and
Growth Fund
 

Investment Income:

      

Dividends

   $ 87,691,049      $ 1,448,451      $ 98,444,868   

Interest

     65,886        1,893        94,885   

Less: Foreign tax withheld

     (1,896,786     (1,922     (763,107
  

 

 

   

 

 

   

 

 

 

Total investment income, net

     85,860,149        1,448,422        97,776,646   
  

 

 

   

 

 

   

 

 

 

Expenses:

      

Investment management fees

     37,492,519        578,328        24,355,146   

Administrative services fees

      

Class R3

     132,858        598        91,480   

Class R4

     138,320        1,343        116,351   

Class R5

     27,871        1,094        116,289   

Transfer agent fees

      

Class A

     3,715,071        117,195        2,249,160   

Class B

     313,930        4,864        106,266   

Class C

     1,070,453        13,635        251,905   

Class I

     1,057,318        2        1,543,191   

Class R3

     5,906        156        3,111   

Class R4

     1,695        72        1,071   

Class R5

     390        64        543   

Class R6

                     

Class Y

     9,951        21        10,625   

Distribution fees

      

Class A

     7,095,462        182,313        4,742,385   

Class B

     1,182,184        9,044        335,168   

Class C

     9,641,013        130,524        2,367,507   

Class R3

     332,142        1,494        228,699   

Class R4

     230,533        2,239        193,917   

Custodian fees

     79,541        1,586        10,414   

Registration and filing fees

     175,865        60,117        173,332   

Accounting services fees

     867,828        14,661        531,114   

Board of Directors’ fees

     153,474        2,132        102,650   

Audit fees

     48,264        5,950        33,374   

Other expenses

     844,027        19,302        536,735   
  

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     64,616,615        1,146,734        38,100,433   

Expense waivers

            (13,750       

Management fee waivers

     (205     (50,364       

Transfer agent fee waivers

            (2,149     (5,578

Commission recapture

     (121,838     (1,188     (25,937

Custodian fee offset

     (163              
  

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (122,206     (67,451     (31,515
  

 

 

   

 

 

   

 

 

 

Total expenses, net

     64,494,409        1,079,283        38,068,918   
  

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     21,365,740        369,139        59,707,728   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net realized gain (loss) on investments

     446,247,698        4,157,694        389,740,467   

Net realized gain (loss) on futures contracts

            42,716          

Net realized gain (loss) on foreign currency contracts

     73,701,092               (989

Net realized gain (loss) on other foreign currency transactions

     (1,704,367            (16,159
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     518,244,423        4,200,410        389,723,319   
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net unrealized appreciation (depreciation) of investments

     123,670,056        7,206,298        (137,207,423

Net unrealized appreciation (depreciation) of future contracts

            (239,681       

Net unrealized appreciation (depreciation) of foreign currency contracts

     (38,069,909              

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     (236,181              
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     85,363,966        6,966,617        (137,207,423
  

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     603,608,389        11,167,027        252,515,896   
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     624,974,129      $     11,536,166      $      312,223,624   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

118

 


Hartford Funds – Domestic Equity Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

The Hartford
Equity Income
Fund
    The Hartford
Growth
Opportunities
Fund
    The Hartford
Healthcare Fund
    The Hartford
MidCap Fund
    The Hartford
MidCap Value
Fund
    The Hartford
Small Company
Fund
    The Hartford
Small/Mid Cap
Equity Fund
 
           
$ 56,303,403      $ 15,311,152      $ 4,570,165      $ 20,185,630      $ 3,209,925      $ 2,795,322      $ 864,157   
  6,028        15,998        16,430        6,926        1,560        4,869        315   
  (1,075,192     (401,530     (35,954     (143,722     (47,833     (4,632     (640

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  55,234,239        14,925,620        4,550,641        20,048,834        3,163,652        2,795,559        863,832   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
  11,784,991        13,847,407        5,072,082        16,412,822        1,859,867        3,689,148        275,665   
           
  60,046        32,294        48,074        62,747        9,626        46,632        681   
  57,716        41,474        27,195        86,736        7,765        50,764        398   
  46,925        54,003        1,714        64,231        2,914        4,684        106   
           
  1,109,095        963,681        392,550        1,267,285        208,790        459,736        50,756   
  24,527        31,480        13,131        39,435        4,676        9,497        4,860   
  204,265        144,072        104,189        301,388        32,862        35,439        12,741   
  525,778        1,430,248        85,897        454,718        23,758        89,439        2   
  1,568        1,541        879        2,607        624        1,303        140   
  912        497        307        1,653        216        567        40   
  771        403        174        739        177        891        7   
  1                      1                        
  1,858        543        49        8,455        1,277        2,615        5   
           
  2,396,821        1,949,306        864,896        2,428,340        284,656        452,175        68,510   
  24,501        106,919        52,967        142,864        10,083        21,886        14,177   
  2,362,885        1,326,855        1,048,966        2,815,758        209,464        193,789        68,604   
  150,113        80,734        120,185        156,867        24,066        116,580        1,702   
  96,193        69,123        45,325        144,560        12,942        84,607        664   
  11,951        12,059        4,810        10,116        3,422        2,381        446   
  145,722        94,189        77,914        120,423        54,120        66,154        40,216   
  228,363        235,274        82,258        272,879        34,771        65,398        5,146   
  44,630        38,680        11,175        51,573        6,446        12,398        1,488   
  21,088        19,194        9,249        22,092        10,910        8,448        5,702   
  256,243        332,838        66,090        286,761        36,494        90,161        10,633   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  19,556,963        20,812,814        8,130,076        25,155,050        2,839,926        5,504,692        562,689   
                                              
         (435                   (42     (529     (23,213
  (1                   (1     (1,646     (2,915     (600
  (7,380     (39,185     (2,939     (64,833     (1,834     (15,287       
         (46            (1                     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (7,381     (39,666     (2,939     (64,835     (3,522     (18,731     (23,813

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  19,549,582        20,773,148        8,127,137        25,090,215        2,836,404        5,485,961        538,876   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  35,684,657        (5,847,528     (3,576,496     (5,041,381     327,248        (2,690,402     324,956   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
  142,757,161        253,710,222        76,217,756        214,554,611        20,122,627        72,515,233        1,315,456   
                                              
  56,581        191,933        1,318,903        25,998        28,617        (2,312     (8
  (122,644     (286,827     70,878        (25,359     (42,444     3,021        (57

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  142,691,098        253,615,328        77,607,537        214,555,250        20,108,800        72,515,942        1,315,391   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
  (45,356,461     153,626,835        47,633,591        72,919,498        9,851,033        (37,591,241     1,405,388   
                                              
         6,099        (698,754            (3,142              
  47,411        12,146        38,208               3,254        3          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(45,309,050

    153,645,080        46,973,045        72,919,498        9,851,145        (37,591,238     1,405,388   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  97,382,048        407,260,408        124,580,582        287,474,748        29,959,945        34,924,704        2,720,779   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     133,066,705      $     401,412,880      $     121,004,086      $     282,433,367      $     30,287,193      $      32,234,302      $     3,045,735   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

119

 


Hartford Funds – Domestic Equity Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
SmallCap
Growth Fund
    The Hartford
Value
Opportunities
Fund
 

Investment Income:

    

Dividends

   $ 4,864,667      $ 3,766,842   

Interest

     4,992        280   

Less: Foreign tax withheld

     (12,057     (74,842
  

 

 

   

 

 

 

Total investment income, net

     4,857,602        3,692,280   
  

 

 

   

 

 

 

Expenses:

    

Investment management fees

     3,263,132        1,122,693   

Administrative services fees

    

Class R3

     12,834        4,160   

Class R4

     45,735        9,791   

Class R5

     39,250        1,338   

Transfer agent fees

    

Class A

     259,177        190,294   

Class B

     5,548        8,077   

Class C

     34,609        21,045   

Class I

     122,008        24,303   

Class R3

     1,321        628   

Class R4

     1,019        314   

Class R5

     639        115   

Class R6

              

Class Y

     1,875        14   

Distribution fees

    

Class A

     331,193        284,508   

Class B

     12,655        16,767   

Class C

     246,837        151,316   

Class R3

     32,085        10,400   

Class R4

     76,225        16,318   

Custodian fees

     1,473        2,132   

Registration and filing fees

     64,197        83,729   

Accounting services fees

     73,004        22,455   

Board of Directors’ fees

     8,211        3,447   

Audit fees

     8,305        6,291   

Other expenses

     46,013        28,658   
  

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     4,687,345        2,008,793   

Management fee waivers

            (6,198

Transfer agent fee waivers

     (1,747     (3,040

Commission Recapture

     (4,845     (2,163
  

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (6,592     (11,401
  

 

 

   

 

 

 

Total expenses, net

     4,680,753        1,997,392   
  

 

 

   

 

 

 

Net Investment Income (Loss)

     176,849        1,694,888   
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions:

    

Net realized gain (loss) on investments

     43,891,846        11,803,577   

Net realized gain (loss) on foreign currency contracts

            2,749,860   

Net realized gain (loss) on other foreign currency transactions

            9,743   
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions

     43,891,846        14,563,180   
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments and Foreign Currency Transactions:

    

Net unrealized appreciation (depreciation) of investments

     26,064,502        676,417   

Net unrealized appreciation (depreciation) of foreign currency contracts

            (804,586

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     1,000        6,292   
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments and Foreign Currency Transactions

     26,065,502        (121,877
  

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     69,957,348        14,441,303   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     70,134,197      $     16,136,191   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

120

 


 

 

[This page is intentionally left blank]

 

 

 

 

 

121

 


Hartford Funds – Domestic Equity Funds

Statements of Changes in Net Assets

 

 

 

     The Hartford Capital
Appreciation Fund
 
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

    

Net investment income (loss)

   $ 21,365,740      $ 50,868,498   

Net realized gain (loss) on investments and foreign currency transactions

     518,244,423        2,980,354,356   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     85,363,966        (1,614,403,702
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     624,974,129        1,416,819,152   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (19,537,281     (16,001,170

Class B

              

Class C

              

Class I

     (12,661,018     (10,300,170

Class R3

              

Class R4

     (519,713     (464,998

Class R5

     (315,576     (213,294

Class R6

     (67       

Class Y

     (8,488,733     (8,225,936
  

 

 

   

 

 

 

Total from net investment income

     (41,522,388     (35,205,568
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

     (1,455,382,995     (234,951,270

Class B

     (75,893,189     (17,286,916

Class C

     (574,029,617     (89,366,852

Class I

     (529,434,316     (80,991,091

Class R3

     (32,300,323     (5,105,467

Class R4

     (44,038,113     (6,898,026

Class R5

     (12,968,848     (5,136,346

Class R6

     (2,313       

Class Y

     (295,123,770     (49,495,789
  

 

 

   

 

 

 

Total from net realized gain on investments

     (3,019,173,484     (489,231,757
  

 

 

   

 

 

 

Total distributions

     (3,060,695,872     (524,437,325
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     559,981,656        1,335,640,072   

Issued in merger

              

Issued on reinvestment of distributions

     2,695,759,860        455,606,808   

Redeemed

     (1,311,997,243     (2,712,553,219
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     1,943,744,273        (921,306,339
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (491,977,470     (28,924,512
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     11,918,234,486        11,947,158,998   
  

 

 

   

 

 

 

End of period

   $     11,426,257,016      $     11,918,234,486   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 12,540,315      $ 32,696,963   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

122

 


Hartford Funds – Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

Hartford Core
Equity Fund
    The Hartford Dividend and
Growth Fund
    The Hartford Equity
Income Fund
    The Hartford Growth
Opportunities Fund
 
For the
Six-Month
Period
Ended
April 30,
2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30,
2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30,
2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30,
2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
             
$ 369,139      $ 90,399      $ 59,707,728      $ 116,110,624      $ 35,684,657      $ 64,988,401      $ (5,847,528   $ (8,384,153
  4,200,410        25,809,219        389,723,319        694,232,925        142,691,098        104,327,898        253,615,328        672,216,540   
  6,966,617        (3,975,293     (137,207,423     365,333,597        (45,309,050     236,186,569        153,645,080        (128,045,320

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  11,536,166        21,924,325        312,223,624        1,175,677,146        133,066,705        405,502,868        401,412,880        535,787,067   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
         (322,556     (26,273,245     (51,845,040     (16,903,154     (34,679,873              
                (134,973     (411,664     (154,981     (403,742              
                (1,666,623     (3,223,682     (2,552,931     (4,614,778              
                (14,980,354     (28,595,496     (9,371,478     (16,809,435              
         (653     (468,840     (961,226     (433,421     (800,283              
                (1,024,978     (2,078,620     (674,876     (1,339,427              
  (10,900     (1,455     (1,886,914     (3,612,657     (946,044     (1,654,891              
                (86            (112                     
  (79,362     (15,450     (11,403,306     (25,884,014     (2,565,305     (4,604,485              

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (90,262     (340,114     (57,839,319     (116,612,399     (33,602,302     (64,906,914              

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  (1,708,044            (319,566,759     (224,788,404     (52,367,058     (55,602,450     (263,434,988     (38,220,366
  (25,536            (6,141,424     (6,351,007     (571,688     (824,023     (4,960,981     (1,169,528
  (305,170            (40,699,299     (27,381,233     (12,820,307     (10,991,047     (57,331,100     (8,748,014
                (159,438,841     (103,448,364     (25,565,543     (20,986,994     (295,776,038     (49,465,635
  (6,893            (7,630,510     (5,497,739     (1,610,943     (1,526,759     (5,335,475     (960,410
  (20,981            (12,877,938     (9,020,385     (2,086,941     (2,091,645     (9,014,113     (1,636,154
  (4,732            (18,791,192     (12,871,286     (2,537,076     (2,344,450     (17,052,786     (761,916
                (825            (270            (1,642       
  (33,979            (110,478,069     (101,247,140     (6,421,509     (5,213,540     (11,356,544     (2,123,074

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (2,105,335            (675,624,857     (490,605,558     (103,981,335     (99,580,908     (664,263,667     (103,085,097

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (2,195,597     (340,114     (733,464,176     (607,217,957     (137,583,637     (164,487,822     (664,263,667     (103,085,097

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  98,477,908        25,912,117        487,373,162        964,760,686        403,865,370        1,156,827,678        642,234,483        668,932,406   
                                                   673,257,083   
  2,146,390        336,012        711,298,962        587,189,060        130,636,856        155,386,346        586,610,242        86,376,670   
  (19,891,012     (20,231,264     (643,942,718         (1,664,066,120     (493,882,189     (866,664,228     (472,747,335     (722,897,879

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  80,733,286        6,016,865        554,729,406        (112,116,374     40,620,037        445,549,796        756,097,390        705,668,280   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  90,073,855        27,601,076        133,488,854        456,342,815        36,103,105        686,564,842        493,246,603        1,138,370,250   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  152,233,835        124,632,759        8,024,312,181        7,567,969,366        3,798,545,716        3,111,980,874        3,757,768,683        2,619,398,433   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     242,307,690      $     152,233,835      $     8,157,801,035      $ 8,024,312,181      $     3,834,648,821      $     3,798,545,716      $     4,251,015,286      $     3,757,768,683   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 369,139      $ 90,262      $ 12,468,525      $ 10,600,116      $ 5,772,225      $ 3,689,870      $ (5,847,528   $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

123

 


Hartford Funds – Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford Healthcare
Fund
 
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

    

Net investment income (loss)

   $ (3,576,496   $ (4,292,877

Net realized gain (loss) on investments and foreign currency transactions

     77,607,537        84,118,699   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     46,973,045        136,776,461   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     121,004,086        216,602,283   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

              

Class B

              

Class C

              

Class I

              

Class R3

              

Class R4

              

Class R5

              

Class Y

              
  

 

 

   

 

 

 

Total from net investment income

              
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

     (41,859,286       

Class B

     (851,671       

Class C

     (14,037,691       

Class I

     (9,319,309       

Class R3

     (2,814,540       

Class R4

     (2,016,864       

Class R5

     (166,891       

Class R6

              

Class Y

     (387,225       
  

 

 

   

 

 

 

Total from net realized gain on investments

     (71,453,477       
  

 

 

   

 

 

 

Total distributions

     (71,453,477       
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     330,518,084        274,644,488   

Issued on reinvestment of distributions

     67,149,489          

Redeemed

     (99,320,481     (162,205,793
  

 

 

   

 

 

 

Net increase from capital share transactions

     298,347,092        112,438,695   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     347,897,701        329,040,978   
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     1,002,760,192        673,719,214   
  

 

 

   

 

 

 

End of period

   $     1,350,657,893      $     1,002,760,192   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (8,152,403   $ (4,575,907
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

124

 


Hartford Funds – Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford MidCap
Fund
    The Hartford MidCap
Value Fund
    The Hartford Small
Company Fund
    The Hartford Small/Mid Cap
Equity Fund
 
For the
Six-Month
Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
             
$ (5,041,381   $ (15,529,400   $ 327,248      $ 1,346,375      $ (2,690,402   $ (7,705,686   $ 324,956      $ 412,547   
  214,555,250        446,237,024        20,108,800        52,760,953        72,515,942        152,516,529        1,315,391        8,712,224   
  72,919,498        143,809,565        9,851,145        (1,011,084     (37,591,238     (30,164,247     1,405,388        (2,924,367

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  282,433,367        574,517,189        30,287,193        53,096,244        32,234,302        114,646,596        3,045,735        6,200,404   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
                (341,861                          (357,551     (566,365
                                                   (12,196
                                                   (67,266
                (187,954                                   
                                            (3,127     (6,845
                (23,807                          (4,294     (1,878
                (27,078                          (2,126     (2,398
                (899,001                          (8,040     (3,280

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                (1,479,701                          (375,138     (660,228

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  (184,194,904     (143,567,186     (25,023,718     (19,547,732     (58,246,001     (36,374,051     (4,979,568     (6,822,827
  (3,556,326     (3,118,365     (263,547     (286,591     (924,635     (767,167     (295,991     (585,834
  (65,661,987     (44,515,881     (5,248,502     (3,955,390     (7,686,853     (5,032,180     (1,353,083     (1,749,811
  (54,161,721     (21,758,465     (4,062,792     (1,835,803     (9,826,479     (4,446,788              
  (5,156,865     (3,447,459     (1,112,176     (483,560     (9,236,016     (6,038,821     (57,213     (76,759
  (8,609,977     (5,329,645     (997,104     (470,894     (9,918,854     (6,816,923     (47,142     (22,229
  (9,910,109     (6,407,783     (545,519     (124,254     (1,227,471     (866,941     (18,490     (21,741
  (858                          (1,449                     
  (93,055,770     (61,071,195     (17,186,601     (13,320,892     (48,355,024     (32,103,165     (66,839     (28,808

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (424,308,517     (289,215,979     (54,439,959     (40,025,116     (145,422,782     (92,446,036     (6,818,326     (9,308,009

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (424,308,517     (289,215,979     (55,919,660     (40,025,116     (145,422,782     (92,446,036     (7,193,464     (9,968,237

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  632,304,968        895,531,427        52,168,818        134,173,170        122,624,914        211,673,572        7,526,156        11,133,101   
  408,459,675        278,270,487        53,690,386        38,395,611        144,047,378        91,028,425        6,960,461        9,642,148   
  (501,935,974     (825,802,905     (61,281,253         (121,433,682         (125,280,173         (251,657,714     (7,259,245         (13,217,198

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  538,828,669        347,999,009        44,577,951        51,135,099        141,392,119        51,044,283        7,227,372        7,558,051   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  396,953,519        633,300,219        18,945,484        64,206,227        28,203,639        73,244,843        3,079,643        3,790,218   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  4,355,089,005        3,721,788,786        493,070,629        428,864,402        930,556,943        857,312,100        72,998,148        69,207,930   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     4,752,042,524      $     4,355,089,005      $     512,016,113      $ 493,070,629      $ 958,760,582      $ 930,556,943      $     76,077,791      $ 72,998,148   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ (5,041,381   $      $ (706,364   $ 446,089      $ (2,696,391   $ (5,988   $ 298,912      $ 349,094   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

125

 


Hartford Funds – Domestic Equity Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford SmallCap
Growth Fund
    The Hartford Value
Opportunities Fund
 
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

        

Net investment income (loss)

   $ 176,849      $ (2,525,339   $ 1,694,888      $ 2,312,930   

Net realized gain (loss) on investments and foreign currency transactions

     43,891,846        34,489,381        14,563,180        52,309,127   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     26,065,502        16,020,575        (121,877     (31,261,613
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     70,134,197        47,984,617        16,136,191        23,360,444   
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

From net investment income

        

Class A

                   (1,586,036     (539,189

Class C

                   (73,183       

Class I

                   (411,176     (62,002

Class R3

                   (17,676     (5,573

Class R4

                   (93,078     (37,182

Class R5

                   (22,409     (12,015

Class Y

                   (18,003     (9,555
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net investment income

                   (2,221,561     (665,516
  

 

 

   

 

 

   

 

 

   

 

 

 

From net realized gain on investments

        

Class A

     (10,378,573     (16,173,027     (16,110,192       

Class B

     (136,204     (370,441     (287,477       

Class C

     (2,398,611     (2,972,321     (2,411,601       

Class I

     (5,567,530     (5,150,957     (2,996,924       

Class R3

     (438,934     (614,561     (296,248       

Class R4

     (2,115,375     (1,380,290     (882,937       

Class R5

     (2,053,035     (539,105     (178,838       

Class R6

     (409                     

Class Y

     (9,827,589     (8,596,000     (125,553       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net realized gain on investments

     (32,916,260     (35,796,702     (23,289,770       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (32,916,260     (35,796,702     (25,511,331     (665,516
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

        

Sold

     387,650,602        374,600,255        16,524,328        113,944,029   

Issued in merger

                          171,919,133   

Issued on reinvestment of distributions

     30,936,318        34,386,103        24,146,676        654,118   

Redeemed

     (151,953,598         (197,615,600     (53,719,506         (121,783,239
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     266,633,322        211,370,758        (13,048,502     164,734,041   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     303,851,259        223,558,673        (22,423,642     187,428,969   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

        

Beginning of period

     710,037,573        486,478,900        340,232,480        152,803,511   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     1,013,888,832      $ 710,037,573      $     317,808,838      $ 340,232,480   
  

 

 

   

 

 

   

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 176,849      $      $ 1,694,939      $ 2,221,612   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

126

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements

April 30, 2015

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies” and each a “Company”) are each an open-end management investment company comprised of forty-two and four series, respectively, as of April 30, 2015. The financial statements for certain other series of the Companies are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Capital Appreciation Fund (the “Capital Appreciation Fund”)

Hartford Core Equity Fund (formerly The Hartford Disciplined Equity Fund) (the “Core Equity Fund”)

The Hartford Dividend and Growth Fund (the “Dividend and Growth Fund”)

The Hartford Equity Income Fund (the “Equity Income Fund”)

The Hartford Healthcare Fund (the “Healthcare Fund”)

The Hartford MidCap Fund (the “MidCap Fund”)

The Hartford MidCap Value Fund (the “MidCap Value Fund”)

The Hartford Small Company Fund (the “Small Company Fund”)

The Hartford Small/Mid Cap Equity Fund (the “Small/Mid Cap Equity Fund”)

The Hartford Mutual Funds II, Inc.:

The Hartford Growth Opportunities Fund (the “Growth Opportunities Fund”)

The Hartford SmallCap Growth Fund (the “SmallCap Growth Fund”)

The Hartford Value Opportunities Fund (the “Value Opportunities Fund”)

Each Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class B, Class C, Class I, Class R3, Class R4, Class R5 and Class Y shares. Effective November 7, 2014, Capital Appreciation Fund, Dividend and Growth Fund, Equity Income Fund, Growth Opportunities Fund, MidCap Fund, Small Company Fund and SmallCap Growth Fund began offering Class R6 shares. Effective March 31, 2015, Core Equity Fund began offering Class I and Class R6 shares and Small/Mid Cap Equity Fund began offering Class I shares. Class A shares are sold with a front-end sales charge of up to 5.50%. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4, R5 and R6 shares, which are offered to employer-sponsored retirement plans, and Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

 

2. Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in

 

 

127

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a) Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b) Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, each Fund will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of each Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Company’s Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Investments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign investments in which a Fund invests 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 NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio investment is primarily traded. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Fixed income investments (other than short-term obligations), non-exchange traded derivatives and centrally cleared swaps held by a Fund are normally valued on the basis of quotes obtained from independent pricing services or brokers and dealers in accordance with procedures established by each Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values through accepted market modeling, trading and pricing conventions. Inputs to the models may include, but are not limited to, prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models and the investment’s terms and conditions. Generally, the Funds may use fair valuation in regard to fixed income investments when the Funds hold defaulted or distressed investments or investments in a company in which a reorganization is pending. Short-term investments maturing in 60 days or less are generally valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days, which approximates fair value.

Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If the last trade price for exchange traded options does not fall between the bid and ask prices, the value will be the mean of the bid and ask prices as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of over-the-counter (“OTC”) options and such instruments that do not trade on an exchange, values may be supplied by a pricing service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of certain Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Funds.

 

 

128

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds are valued at the respective NAV of each open-end mutual fund on the Valuation Date.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.
    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.
    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors of the Company generally reviews and approves the “Procedures for Valuation of Portfolio Securities” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include the Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of the Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, the Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each Company then must consider for ratification all of the fair value determinations made during the previous quarter.

 

 

129

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, certain Funds will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

 

  d) Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The Funds do not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

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

 

  e) Joint Trading Account – Each Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  f) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of a Funds’ shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by each Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund, except Dividend and Growth Fund and Equity Income Fund, is to pay dividends from net investment income and realized gains, if any, at least once a year. The policy of Dividend and Growth Fund and Equity Income Fund is to pay dividends from net investment income, if any, quarterly and realized gains, if any, at least once a year.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts note).

 

 

130

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

3. Securities and Other Investments:

 

  a) Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk – that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a 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, which approximates fair value. Repurchase agreements have master netting arrangements which allow the Funds to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of April 30, 2015.

 

  b) Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of its net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Certain Funds may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by each Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  c) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Foreign Currency Contracts – Each Fund may enter into foreign currency contracts that obligate the Funds to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

 

 

131

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of April 30, 2015.

 

  b) Futures Contracts – Each Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

  c) Options Contracts – An option contract is a contract sold by one party to another party that offers the buyer the right, but not the obligation, to buy (call) or sell (put) an investment or other financial asset at an agreed-upon price during a specific period of time or on a specific date. Option contracts are either privately negotiated in the over-the-counter market (“OTC options”) or executed in a registered exchange (“exchange traded options”). A Fund may write (sell) covered call and put options on futures, swaps (“swaptions”), securities, commodities or currencies. “Covered” means that so long as a Fund is obligated as the writer of an option, it will own either the underlying investments or currency or an option to purchase the same underlying investments or currency having an expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will pledge cash or other liquid investments having a value equal to or greater than the fluctuating market value of the option investment or currency. Writing put options increases a Fund’s exposure to the underlying instrument. Writing call options decreases a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset amounts paid on the underlying futures, swap, investment or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. A Fund may also purchase put and call options. Purchasing call options increases a Fund’s exposure to the underlying instrument. Purchasing put options decreases a Fund’s exposure to the underlying instrument. Each Fund pays a premium, which is included on the Fund’s Statements of Assets and Liabilities as an investment and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is generally limited to the premium paid. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss. Entering into over-the-counter options also exposes a Fund to counterparty risk. Counterparty risk is the possibility that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements.

See each Fund’s Schedule of Investments, if applicable, for outstanding purchased option contracts as of April 30, 2015. The Funds had no outstanding written option contracts as of April 30, 2015. There were no transactions involving written option contracts during the six-month period ended April 30, 2015.

 

 

132

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

  d) Additional Derivative Instrument Information:

Capital Appreciation Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $     —       $     308,208       $     —       $     —       $     —       $     —       $     308,208   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 308,208       $       $       $       $       $ 308,208   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 12,078,803       $       $       $       $       $ 12,078,803   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $     12,078,803       $       $       $       $       $     12,078,803   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $ 73,701,092      $     —       $     —       $     —       $     —       $ 73,701,092   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 73,701,092      $       $       $       $       $ 73,701,092   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

  

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $     (38,069,909   $       $       $       $       $     (38,069,909
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (38,069,909   $       $       $       $       $ (38,069,909
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Core Equity Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Liabilities:

                    

Unrealized depreciation on futures contracts(1)

   $       $       $       $ 28,080       $       $       $ 28,080   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     —       $     —       $     28,080       $     —       $     —       $     28,080   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1) Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities.

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

 

 

133

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

       

Net realized gain (loss) on futures

   $     —       $     —       $     —       $     42,716      $     —       $     —       $     42,716   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $       $       $       $ 42,716      $       $       $ 42,716   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

       

Net change in unrealized appreciation (depreciation) of futures

   $       $       $       $ (239,681   $       $       $ (239,681
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $       $       $       $     (239,681   $       $       $     (239,681
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Dividend and Growth Fund

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $     (989   $     —       $     —       $     —       $     —       $ (989
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (989   $       $       $       $       $     (989
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Equity Income Fund

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $       $ 56,581       $       $       $       $       $ 56,581   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     56,581       $     —       $     —       $     —       $     —       $     56,581   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Growth Opportunities Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 6,099       $       $       $       $       $ 6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     6,099       $     —       $     —       $     —       $     —       $     6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

 

 

134

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ 191,933       $       $       $       $       $ 191,933   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $     191,933       $       $       $       $       $     191,933   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ 6,099       $       $       $       $       $ 6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     6,099       $     —       $     —       $     —       $     —       $ 6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Healthcare Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

Unrealized appreciation on foreign currency contracts

   $       $ 1,871       $       $       $       $       $ 1,871   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 1,871       $       $       $       $       $ 1,871   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

Unrealized depreciation on foreign currency contracts

   $       $ 3,156       $       $       $       $       $ 3,156   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     3,156       $     —       $     —       $     —       $     —       $     3,156   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ 1,318,903      $       $       $       $       $ 1,318,903   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     1,318,903      $     —       $     —       $     —       $     —       $     1,318,903   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (698,754   $       $       $       $       $ (698,754
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (698,754   $       $       $       $       $ (698,754
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

MidCap Fund

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ 25,998       $       $       $       $       $ 25,998   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     25,998       $     —       $     —       $     —       $     —       $     25,998   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

135

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

MidCap Value Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

Unrealized appreciation on foreign currency contracts

   $       $ 37       $       $       $       $       $ 37   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     37       $     —       $     —       $     —       $     —       $     37   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

Unrealized depreciation on foreign currency contracts

   $       $ 73       $       $       $       $       $ 73   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 73       $       $       $       $       $ 73   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ 28,617      $       $       $       $       $ 28,617   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     28,617      $     —       $     —       $     —       $     —       $     28,617   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (3,142   $       $       $       $       $ (3,142
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (3,142   $       $       $       $       $ (3,142
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Small Company Fund

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ (2,312   $       $       $       $       $ (2,312
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     (2,312   $     —       $     —       $     —       $     —       $     (2,312
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Small/Mid Cap Equity Fund

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ (8   $       $       $       $       $ (8
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     (8   $     —       $     —       $     —       $     —       $     (8
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

136

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Value Opportunities Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

Unrealized appreciation on foreign currency contracts

   $       $ 100,788       $       $       $       $       $ 100,788   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 100,788       $       $       $       $       $ 100,788   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

Unrealized depreciation on foreign currency contracts

   $       $ 712,723       $       $       $       $       $ 712,723   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     712,723       $     —       $     —       $     —       $     —       $     712,723   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on foreign currency contracts

   $       $ 2,749,860      $       $       $       $       $ 2,749,860   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     2,749,860      $     —       $     —       $     —       $     —       $     2,749,860   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (804,586   $       $       $       $       $ (804,586
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (804,586   $       $       $       $       $ (804,586
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  e) Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Capital Appreciation Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     308,208         (12,078,803
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     308,208         (12,078,803
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     308,208         (12,078,803
  

 

 

    

 

 

 

 

 

137

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Capital Appreciation Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Deutsche Bank Securities, Inc.

     55,516        (55,516         —             —           

Goldman Sachs & Co.

     91,041        (23,138                     67,903   

HSBC Bank USA

     5,903        (2,697                     3,206   

RBS Greenwich Capital

     152,898        (152,898                       

Toronto-Dominion Bank

     206                               206   

Westpac International

     2,644        (2,644                       
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     308,208        (236,893                     71,315   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Barclays

     (74,735                —             —         (74,735

BNP Paribas Securities Services

     (60,206                            (60,206

Deutsche Bank Securities, Inc.

     (1,430,237     55,516                        (1,374,721

Goldman Sachs & Co.

     (23,138     23,138                          

HSBC Bank USA

     (2,697     2,697                          

JP Morgan Chase & Co.

     (1,432,340                            (1,432,340

National Australia Bank Limited

     (4,372,743                            (4,372,743

RBS Greenwich Capital

     (4,676,873     152,898                        (4,523,975

Westpac International

     (5,834     2,644                        (3,190
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     (12,078,803     236,893                        (11,841,910
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Core Equity Fund

 

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Futures contracts

         —         (28,080
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

             (28,080
  

 

 

    

 

 

 

Derivatives not subject to a MNA

             28,080   
  

 

 

    

 

 

 

 

Healthcare Fund

 

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     1,871         (3,156
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     1,871         (3,156
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     1,871         (3,156
  

 

 

    

 

 

 

 

Healthcare Fund

 

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Toronto-Dominion Bank

     240             —             —             —         240   

UBS AG

     7                                 7   

Westpac International

     1,624                                 1,624   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,871                                 1,871   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

138

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Deutsche Bank Securities, Inc.

     (2,652         —             —             —         (2,652

Morgan Stanley

     (504                             (504
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (3,156                             (3,156
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

MidCap Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Derivatives not subject to a master netting agreement or similar agreements (“MNA”)

         —             —   
  

 

 

    

 

 

 
MidCap Value Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     37         (73
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     37         (73
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     37         (73
  

 

 

    

 

 

 

 

MidCap Value Fund  

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Westpac International

         37            —             —             —             37   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Commonwealth Bank of Australia

     (48                             (48

Deutsche Bank Securities, Inc.

     (25                             (25
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

         (73                                 (73
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Growth Opportunities Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     6,099             —   
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     6,099           
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     6,099           
  

 

 

    

 

 

 

 

Growth Opportunities Fund  

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Deutsche Bank Securities, Inc.

     1,832                                 1,832   

HSBC Bank USA

     4,267                                 4,267   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     6,099             —             —             —         6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

139

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Value Opportunities Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     100,788         (712,723
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     100,788         (712,723
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     100,788         (712,723
  

 

 

    

 

 

 

 

Value Opportunities Fund  

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Goldman Sachs & Co.

     35,550                                35,550   

RBS Greenwich Capital

     65,238         (65,238                       
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     100,788         (65,238         —             —         35,550   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Barclays

     (29,193                             (29,193

BNP Paribas Securities Services

     (21,739                             (21,739

Deutsche Bank Securities, Inc.

     (15,959                             (15,959

JP Morgan Chase & Co.

     (16,068                             (16,068

Morgan Stanley

     (932                             (932

National Australia Bank Limited

     (292,012                             (292,012

RBS Greenwich Capital

     (336,820     65,238                         (271,582
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (712,723     65,238             —             —         (647,485
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

Certain derivatives held by Capital Appreciation Fund, as of April 30, 2015, are not subject to a master netting arrangement and are excluded from the table above.

 

5. Principal Risks:

Certain Funds may be exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default.

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Each Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension, foreign currency and equity risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. 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 and extension risk are major risks of mortgage backed securities and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

 

 

140

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns, if applicable, of the Fund. The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.

 

6. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Ordinary
Income
for the
Year Ended
October 31, 2014
  Long-Term
Capital Gains
for the
Year Ended
October 31,  2014(1)
  Ordinary
Income
for the
Year Ended
October 31, 2013
  Long-Term
Capital Gains
for the
Year Ended
October 31,  2013(1)
 

Capital Appreciation Fund

$ 35,205,562    $     489,231,763    $ 82,638,906    $   

Core Equity Fund

$ 340,114    $    $ 919,901    $   

Dividend and Growth Fund

$     151,445,736    $ 455,772,221    $     115,132,105    $ 109,603,028   

Equity Income Fund

$ 70,154,139    $ 94,333,683    $ 44,364,421    $ 26,528,316   

Growth Opportunities Fund

$    $ 103,085,097    $    $   

Healthcare Fund

$    $    $    $   

MidCap Fund

$ 35,485,555    $ 253,730,424    $ 4,331,069    $     185,811,232   

MidCap Value Fund

$    $ 40,025,116    $ 3,467,610    $ 465,392   

Small Company Fund

$ 33,923,886    $ 58,522,150    $    $ 44,886,137   

Small/Mid Cap Equity Fund

$ 4,287,299    $ 5,680,937    $ 854,994    $   

SmallCap Growth Fund

$ 11,810,397    $ 23,986,308    $    $   

Value Opportunities Fund

$ 665,516    $    $ 1,625,003    $   

 

  (1)  The Funds designate these distributions as long-term capital gain dividends pursuant to IRC Sec 852(b)(3)(c).

 

 

141

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

  Undistributed
Ordinary
Income
  Undistributed
Long-Term
Capital Gain
  Accumulated
Capital and
Other
Losses
  Unrealized
Appreciation
(Depreciation)
on
Investments(2)
  Total
Accumulated
Earnings
(Deficit)
 

Capital Appreciation Fund

$     815,315,618      2,237,414,555    $      846,271,362      3,899,001,535   

Core Equity Fund

$ 90,262      2,104,992    $      31,299,993      33,495,247   

Dividend and Growth Fund

$ 56,737,509      629,491,691    $     (32,946,759 )(1)    2,341,791,317      2,995,073,758   

Equity Income Fund

$ 15,727,003      91,942,841    $      800,085,009      907,754,853   

Growth Opportunities Fund

$ 160,898,945      503,358,741    $      421,421,354      1,085,679,040   

Healthcare Fund

$      71,459,607    $ (3,935,656 )(1)    323,704,071      391,228,022   

MidCap Fund

$ 51,668,231      372,647,986    $      1,089,501,490      1,513,817,707   

MidCap Value Fund

$ 5,050,090      50,443,794    $ (1,837,818 )(1)    85,460,065      139,116,131   

Small Company Fund

$ 31,734,983      113,490,762    $      135,025,802      280,251,547   

Small/Mid Cap Equity Fund

$ 765,225      6,427,770    $ (5,583,511 )(1)    8,397,324      10,006,808   

SmallCap Growth Fund

$ 1,325,751      31,590,831    $      98,043,681      130,960,263   

Value Opportunities Fund

$ 2,221,612      23,291,387    $ (6,147,616 )(1)    15,941,772      35,307,155   

 

  (1)  The Fund has capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

  Capital Stock and
Paid-in-Capital
  Undistributed Net
Investment Income
(Loss)
  Accumulated Net
Realized Gain
(Loss)
 

Capital Appreciation Fund

       (6,232,616   6,232,616   

Core Equity Fund

       2,611      (2,611

Dividend and Growth Fund

       (180,938   180,938   

Equity Income Fund

       (98,934   98,934   

Growth Opportunities Fund

  (396   13,740,959      (13,740,563

Healthcare Fund

  (2,117,503   1,957,614      159,889   

MidCap Fund

  82,950      19,613,657      (19,696,607

MidCap Value Fund

       (201,923   201,923   

Small Company Fund

       7,812,001      (7,812,001

Small/Mid Cap Equity Fund

       25,061      (25,061

SmallCap Growth Fund

       2,586,828      (2,586,828

Value Opportunities Fund

       (91,119   91,119   

 

  e)

Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire

 

 

142

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

  Year of Expiration  

Fund

2015   2016   2017  

Capital Appreciation Fund

$    $    $   

Core Equity Fund

$    $    $   

Dividend and Growth Fund

$     13,936,043    $     19,010,716    $   

Equity Income Fund

$    $    $   

Growth Opportunities Fund

$    $    $   

Healthcare Fund

$    $    $   

MidCap Fund

$    $    $   

MidCap Value Fund

$ 918,909    $ 918,909    $   

Small Company Fund

$    $    $   

Small/Mid Cap Equity Fund

$    $    $     5,583,511   

SmallCap Growth Fund

$    $    $   

Value Opportunities Fund

$    $    $ 6,147,616   

As a result of mergers involving the Dividend and Growth Fund, MidCap Value Fund, Small/Mid Cap Equity Fund and Value Opportunities Fund, certain provisions in the IRC may limit the future utilization of capital losses. During the year ended October 31, 2014, the Core Equity Fund, Dividend and Growth Fund, Healthcare Fund, MidCap Value Fund, Small/Mid Cap Equity Fund and Value Opportunities Fund utilized $23,914,523, $19,010,716, $12,171,885, $918,908, $1,861,170, $28,343,797 of prior year capital loss carryforwards.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with each Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Capital Appreciation Fund

0.8000% on first $500 million and;
0.7000% on next $500 million and;
0.6500% on next $4 billion and;
0.6475% on next $5 billion and;
0.6450% over $10 billion

 

 

143

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Management Fee Rates

Core Equity Fund

0.4500% on first $500 million and;
0.3500% on next $500 million and;
0.3300% on next $1.5 billion and;
0.3250% on next $2.5 billion and;
0.3225% over $5 billion

Dividend and Growth Fund

0.7500% on first $500 million and;
0.6500% on next $500 million and;
0.6000% on next $1.5 billion and;
0.5950% on next $2.5 billion and;
0.5900% on next $5 billion and;
0.5850% over $10 billion

Equity Income Fund

0.7500% on first $250 million and;
0.7000% on next $250 million and;
0.6500% on next $500 million and;
0.6000% on next $1.5 billion and;
0.5900% on next $2.5 billion and;
0.5875% over $5 billion

Growth Opportunities Fund

0.8000% on first $250 million and;
0.7000% on next $4.75 billion and;
0.6975% on next $5 billion and;
0.6950% over $10 billion

Healthcare Fund

0.9000% on first $500 million and;
0.8500% on next $500 million and;
0.8000% on next $4 billion and;
0.7975% on next $5 billion and;
0.7950% over $10 billion

Midcap Fund

0.8500% on first $500 million and;
0.7500% on next $500 million and;
0.7000% on next $4 billion and;
0.6975% on next $5 billion and;
0.6950% over $10 billion

MidCap Value Fund

0.7500% on first $500 million and;
0.6500% on next $500 million and;
0.6000% on next $1.5 billion and;
0.5950% on next $2.5 billion and;
0.5900% on next $5 billion and;
0.5850% over $10 billion

Small Company Fund

0.8500% on first $250 million and;
0.8000% on next $250 million and;
0.7500% on next $500 million and;
0.7000% on next $500 million and;
0.6500% on next $3.5 billion and;
0.6300% on next $5 billion and;
0.6200% over $10 billion

Small/Mid Cap Equity Fund

0.7500% on first $500 million and;
0.7000% on next $500 million and;
0.6500% on next $2 billion and;
0.6400% on next $2 billion and;
0.6300% on next $5 billion and;
0.6200% over $10 billion

 

 

144

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Management Fee Rates

SmallCap Growth Fund

0.9000% on first $100 million and;
0.8000% on next $150 million and;
0.7000% on next $250 million and;
0.6500% on next $4.5 billion and;
0.6300% on next $5 billion and;
0.6200% over $10 billion

Value Opportunities Fund

0.7000% on first $500 million and;
0.6000% on next $500 million and;
0.5900% on next $1.5 billion and;
0.5850% on next $2.5 billion and;
0.5800% on next $5 billion and;
0.5750% on over $10 billion

Prior to March 1, 2015, the Core Equity Fund paid the following rates to the investment manager for investment management services rendered:

 

 

Management Fee Rates

Core Equity Fund

0.7500% on first $500 million and;
0.6750% on next $500 million and;
0.6250% on next $4 billion and;
0.6225% on next $5 billion and;
0.6200% over $10 billion

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and each Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fee Rates

Capital Appreciation Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

Core Equity Fund

0.016% on first $5 billion and;
0.013% on next $5 billion and;
0.010% over $10 billion

Dividend and Growth Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Equity Income Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Growth Opportunities Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Healthcare Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Midcap Fund

0.012% on first $5 billion and;
0.010% over $5 billion

MidCap Value Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

 

 

145

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

Accounting Services Fee Rates

Small Company Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Small/Mid Cap Equity Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

SmallCap Growth Fund

0.016% on first $5 billion and;
0.013% on next $5 billion and;
0.010% over $10 billion

Value Opportunities Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  c) Operating Expenses – Allocable expenses incurred by each Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Capital Appreciation Fund

  1.29   NA      NA      1.04   1.40   1.10   0.80   0.75   NA   

Core Equity Fund

  0.79   1.54   1.54   0.54   1.09   0.79   0.49   0.45   0.49

Dividend and Growth Fund

  1.25   NA      NA      1.00   1.35   1.05   0.75   0.70   NA   

Equity Income Fund

  1.25   2.00 %*    2.00   1.00   1.50   1.20   0.90   0.85   0.85

Growth Opportunities Fund

  1.36   2.11   2.11   1.11   1.45   1.15   0.85   0.85   0.85

Healthcare Fund

  1.60   2.35   2.35   1.35   1.65   1.35   1.05   NA      1.00

MidCap Fund

  1.37   NA      NA      1.12   1.50   1.20   0.90   0.85   NA   

MidCap Value Fund

  1.35   2.10   2.10   1.10   1.55   1.25   0.95   NA      0.90

Small Company Fund

  1.40   2.15   2.15   1.15   1.55   1.25   0.95   0.90   0.90

Small/Mid Cap Equity Fund

  1.30   2.05   2.05   1.05   1.50   1.20   0.90   NA      0.85

SmallCap Growth Fund

  1.40   2.15   2.15   1.15   1.60   1.30   1.00   0.95   0.95

Value Opportunities Fund

  1.35   2.10   2.10   1.10   1.55   1.25   0.95   NA      0.90

 

  * The reduction in amounts charged in connection with the Equity Income Fund’s Class B Distribution and Service Plan (12b-1) fees that took effect July 1, 2013, in order to comply with applicable FINRA rules, caused the limit on net operating expenses attributable to the Equity Income Fund’s Class B shares to be, effectively, 1.25%.

From November 1, 2014 through February 28, 2015, the investment manager contractually limited the total operating expenses of the following funds, exclusive of taxes, interest expense, brokerage commissions, acquired fund fees and expenses and extraordinary expenses as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Core Equity Fund

  1.35   2.10   2.10   NA      1.50   1.20   0.90   NA      0.85

Growth Opportunities Fund

  1.19   2.05   2.05   0.92   1.45   1.15   0.85   NA      0.85

Value Opportunities Fund

  1.22   1.92   1.92   1.00   1.45   1.15   0.85   NA      0.80

 

 

146

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

  d) Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. 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 a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended April 30, 2015, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Capital Appreciation Fund

  1.07   1.95   1.80   0.80   1.40   1.09   0.79   0.71   0.69

Core Equity Fund

  1.09   1.91   1.79   0.54   1.35   1.01   0.54   0.45   0.64

Dividend and Growth Fund

  1.01   1.94   1.75   0.80   1.35   1.04   0.74   0.64   0.64

Equity Income Fund

  1.02   1.15   1.74   0.77   1.36   1.06   0.76   0.68   0.66

Growth Opportunities Fund

  1.11   2.03   1.85   0.90   1.45   1.14   0.84   0.75   0.74

Healthcare Fund

  1.27   2.15   2.00   1.01   1.61   1.31   1.02        0.91

MidCap Fund

  1.13   2.03   1.86   0.90   1.46   1.16   0.85   0.76   0.75

MidCap Value Fund

  1.24   2.10   1.96   0.94   1.52   1.21   0.92        0.81

Small Company Fund

  1.34   2.13   2.02   1.12   1.53   1.24   0.95   0.84   0.84

Small/Mid Cap Equity Fund

  1.30   2.05   2.05   0.93   1.50   1.20   0.90        0.85

SmallCap Growth Fund

  1.20   2.06   1.90   0.90   1.48   1.16   0.86   0.76   0.76

Value Opportunities Fund

  1.21   1.97   1.92   0.92   1.47   1.16   0.87        0.79

 

  e) Distribution and Service Plan for Class A, B, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect wholly owned subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end
Sales Charges
  Contingent Deferred
Sales Charges
 

Capital Appreciation Fund

$     3,110,093    $     44,705   

Core Equity Fund

  352,940      941   

Dividend and Growth Fund

  3,685,623      30,363   

Equity Income Fund

  2,588,820      52,645   

Growth Opportunities Fund

  1,819,922      12,609   

Healthcare Fund

  3,622,147      12,387   

MidCap Fund

  2,406,752      20,594   

MidCap Value Fund

  339,493      1,794   

Small Company Fund

  430,930      801   

Small/Mid Cap Equity Fund

  41,812      736   

SmallCap Growth Fund

  190,516      7,348   

Value Opportunities Fund

  182,404      50,057   

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, B, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class B Plan, each 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 services provided to existing shareholders 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

 

 

147

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

distribution and/or shareholder account services. 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, each 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 R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as each Company’s Board of Directors may determine.

 

  f) Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

8. Affiliate Holdings:

As of April 30, 2015, affiliates of The Hartford had ownership of shares in each Fund as follows:

Percentage of Class:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Capital Appreciation Fund

                                     100     

Core Equity Fund

                 12        7   1   100     

Dividend and Growth Fund

                                     100     

Equity Income Fund

                                            

Growth Opportunities Fund

                                            

Healthcare Fund

                                            

MidCap Fund

                                     1     

MidCap Value Fund

                                            

Small Company Fund

                                     100     

Small/Mid Cap Equity Fund

                 100        36   84        19

SmallCap Growth Fund

                                     100     

Value Opportunities Fund

                                6        12

 

 

148

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Percentage of Fund:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Capital Appreciation Fund

                                     %*      

Core Equity Fund

                 %*         %*    %*    %*      

Dividend and Growth Fund

                                     %*      

Equity Income Fund

                                            

Growth Opportunities Fund

                                            

Healthcare Fund

                                            

MidCap Fund

                                     %*      

MidCap Value Fund

                                            

Small Company Fund

                                     %*      

Small/Mid Cap Equity Fund

                 %*         %*    %*         %* 

SmallCap Growth Fund

                                     %*      

Value Opportunities Fund

                                %*         %* 

 

  * Percentage rounds to zero.

As of April 30, 2015, the following Fund’s shares were owned in aggregate by affiliated fund of funds. Therefore, the following Funds may experience relatively large purchases or redemptions of its shares from these affiliated fund of funds. Affiliated fund of funds owned shares in the following Funds as follows:

 

Capital Appreciation Fund

  6

Dividend and Growth Fund

  9

MidCap Fund

  1

MidCap Value Fund

  16

Small Company Fund

  8

 

9. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Government
Obligations
 

Capital Appreciation Fund

$     4,692,395,522    $     5,596,215,655   

Core Equity Fund

$ 99,208,717    $ 24,864,395   

Dividend and Growth Fund

$ 1,014,564,162    $ 1,153,479,893   

Equity Income Fund

$ 438,834,459    $ 495,053,152   

Growth Opportunities Fund

$ 2,156,779,901    $ 2,039,938,403   

Healthcare Fund

$ 392,520,587    $ 206,247,283   

MidCap Fund

$ 944,725,612    $ 753,396,356   

MidCap Value Fund

$ 77,690,522    $ 88,488,346   

Small Company Fund

$ 476,734,014    $ 471,933,266   

Small/Mid Cap Equity Fund

$ 31,905,495    $ 31,557,114   

SmallCap Growth Fund

$ 618,557,446    $ 373,332,449   

Value Opportunities Fund

$ 93,006,244    $ 125,226,142   

 

 

149

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

  Cost of Purchases
Including U.S.
Government
Obligations
  Sales Proceeds
Including U.S.
Government
Obligations
 

Capital Appreciation Fund

$     —    $     —   

Core Equity Fund

$    $   

Dividend and Growth Fund

$    $   

Equity Income Fund

$    $   

Growth Opportunities Fund

$    $   

Healthcare Fund

$    $   

MidCap Fund

$    $   

MidCap Value Fund

$    $   

Small Company Fund

$    $   

Small/Mid Cap Equity Fund

$    $   

SmallCap Growth Fund

$    $   

Value Opportunities Fund

$    $   

 

  Total Cost of
Purchases
  Total Sales
Proceeds
 

Capital Appreciation Fund

$     4,692,395,522    $     5,596,215,655   

Core Equity Fund

$ 99,208,717    $ 24,864,395   

Dividend and Growth Fund

$ 1,014,564,162    $ 1,153,479,893   

Equity Income Fund

$ 438,834,459    $ 495,053,152   

Growth Opportunities Fund

$ 2,156,779,901    $ 2,039,938,403   

Healthcare Fund

$ 392,520,587    $ 206,247,283   

MidCap Fund

$ 944,725,612    $ 753,396,356   

MidCap Value Fund

$ 77,690,522    $ 88,488,346   

Small Company Fund

$ 476,734,014    $ 471,933,266   

Small/Mid Cap Equity Fund

$ 31,905,495    $ 31,557,114   

SmallCap Growth Fund

$ 618,557,446    $ 373,332,449   

Value Opportunities Fund

$ 93,006,244    $ 125,226,142   

For the six-month period ended April 30, 2015, the The Hartford MidCap Fund engaged in security transactions with other affiliated portfolios. These amounted to $750,98,511 in sales of investments, which are included above.

 

10. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Capital Appreciation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  5,094,183    $ 199,829,333      8,625,883    $ 407,298,740   

Shares Issued for Reinvested Dividends

  39,450,052      1,435,297,948      5,419,060      244,199,527   

Shares Redeemed

  (13,109,554   (516,286,738   (23,671,036       (1,128,909,609

Shares converted (from) Class B into Class A

  282,431      11,097,278      476,968      22,595,607   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  31,717,112          1,129,937,821      (9,149,125   (454,815,735
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

150

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class B

Shares Sold

  119,641    $ 3,610,581      67,480    $ 2,714,689   

Shares Issued for Reinvested Dividends

  2,401,841      71,262,614      411,879      16,080,318   

Shares Redeemed

  (1,950,603   (63,341,576   (3,167,837   (127,305,402

Shares converted (from) Class B into Class A

  (343,719   (11,097,278   (476,968   (22,595,607
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  227,160      434,341      (3,165,446   (131,106,002
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  3,377,773    $ 106,298,202      2,904,865    $ 119,458,040   

Shares Issued for Reinvested Dividends

  16,774,258      504,737,911      1,984,107      78,117,581   

Shares Redeemed

  (6,013,783   (196,339,893   (6,659,166   (276,322,772
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  14,138,248      414,696,220      (1,770,194   (78,747,151
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  4,705,104    $ 180,259,612      10,755,217    $ 517,315,617   

Shares Issued for Reinvested Dividends

  8,069,183      295,017,658      942,914      42,645,036   

Shares Redeemed

  (9,463,954   (387,787,065   (11,342,911   (538,919,836
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,310,333      87,490,205      355,220      21,040,817   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  190,595    $ 8,174,852      330,192    $ 16,496,943   

Shares Issued for Reinvested Dividends

  817,356      31,974,965      105,440      5,009,680   

Shares Redeemed

  (427,536   (18,287,736   (590,090   (29,498,175
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  580,415      21,862,081      (154,458   (7,991,552
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  392,673    $ 16,942,854      845,553    $ 43,086,686   

Shares Issued for Reinvested Dividends

  1,055,199      42,295,276      144,022      6,980,690   

Shares Redeemed

  (702,456   (31,013,161   (1,141,910   (57,952,155
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  745,416      28,224,969      (152,335   (7,884,779
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  62,874    $ 2,740,245      126,977    $ 6,505,471   

Shares Issued for Reinvested Dividends

  325,251      13,284,424      107,339      5,261,279   

Shares Redeemed

  (218,306   (10,163,836   (2,001,544   (98,821,720
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  169,819      5,860,833      (1,767,228   (87,054,970
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  184    $ 10,000         $   

Shares Issued for Reinvested Dividends

  58      2,380             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  242      12,380             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  934,202    $ 42,115,977      4,352,059    $ 222,763,886   

Shares Issued for Reinvested Dividends

  7,354,682      301,886,684      1,159,968      57,312,697   

Shares Redeemed

  (1,945,871   (88,777,238   (8,712,112   (454,823,550
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,343,013      255,225,423      (3,200,085       (174,746,967
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  57,231,758    $     1,943,744,273      (19,003,651 $ (921,306,339
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

 

 

151

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Core Equity Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,160,770    $ 49,589,700      982,895    $ 20,161,845   

Shares Issued for Reinvested Dividends

  76,842      1,686,680      16,164      318,454   

Shares Redeemed

  (713,727       (16,403,792   (775,246       (15,793,999

Shares converted (from) Class B into Class A

  12,812      294,202      24,457      497,507   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,536,697      35,166,790      248,270      5,183,807   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  6,850    $ 145,618      7,453    $ 141,185   

Shares Issued for Reinvested Dividends

  1,228      25,192             

Shares Redeemed

  (9,745   (208,293   (31,246   (568,169

Shares converted (from) Class B into Class A

  (13,722   (294,202   (24,457   (497,507
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (15,389   (331,685   (48,250   (924,491
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  671,564    $ 14,321,846      210,063    $ 4,009,321   

Shares Issued for Reinvested Dividends

  13,706      280,427             

Shares Redeemed

  (92,964   (1,983,437   (117,258   (2,232,449
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  592,306      12,618,836      92,805      1,776,872   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I(1)

Shares Sold

  41,366    $ 971,569         $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  41,366      971,569             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  10,033    $ 228,979      18,552    $ 386,145   

Shares Issued for Reinvested Dividends

  185      4,137      32      653   

Shares Redeemed

  (4,584   (105,709   (14,370   (292,115
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,634      127,407      4,214      94,683   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  104,993    $ 2,492,832      28,984    $ 609,067   

Shares Issued for Reinvested Dividends

  930      20,981             

Shares Redeemed

  (13,282   (315,333   (53,546   (1,031,391
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  92,641      2,198,480      (24,562   (422,324
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  967,121    $ 22,962,403      5,933    $ 124,589   

Shares Issued for Reinvested Dividends

  684      15,632      72      1,455   

Shares Redeemed

  (15,022   (356,266   (59   (1,274
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  952,783      22,621,769      5,946      124,770   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  425    $ 10,000         $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  425      10,000             
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

152

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class Y

Shares Sold

  329,166    $ 7,754,961      22,795    $ 479,965   

Shares Issued for Reinvested Dividends

  4,947      113,341      760      15,450   

Shares Redeemed

  (21,947   (518,182   (15,458   (311,867
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  312,166      7,350,120      8,097      183,548   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  3,518,629    $     80,733,286      286,520    $     6,016,865   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on March 31, 2015.

Dividend and Growth Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  6,480,221    $ 166,019,891      11,659,648    $ 299,298,199   

Shares Issued for Reinvested Dividends

  13,839,260      341,642,546      11,232,653      273,099,349   

Shares Redeemed

  (9,144,028       (234,474,945   (20,080,459       (516,963,184

Shares converted (from) Class B into Class A

  196,191      5,027,352      348,407      8,953,647   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  11,371,644      278,214,844      3,160,249      64,388,011   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  29,974    $ 745,348      52,264    $ 1,307,336   

Shares Issued for Reinvested Dividends

  252,949      6,110,640      277,714      6,571,439   

Shares Redeemed

  (538,796   (13,594,503   (1,140,277   (28,670,060

Shares converted (from) Class B into Class A

  (199,946   (5,027,352   (348,407   (8,953,647
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (455,819   (11,765,867   (1,158,706   (29,744,932
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  1,302,353    $ 32,454,099      2,088,970    $ 52,440,698   

Shares Issued for Reinvested Dividends

  1,684,735      40,434,158      1,228,157      29,000,306   

Shares Redeemed

  (1,252,375   (31,210,739   (2,228,882   (56,060,830
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,734,713      41,677,518      1,088,245      25,380,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  5,538,389    $ 141,575,203      14,965,376    $ 385,018,785   

Shares Issued for Reinvested Dividends

  6,955,432      171,059,651      5,322,790      129,253,156   

Shares Redeemed

  (7,331,895   (187,466,835   (13,146,355   (336,832,150
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,161,926      125,168,019      7,141,811      177,439,791   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  382,660    $ 9,899,000      562,610    $ 14,514,768   

Shares Issued for Reinvested Dividends

  310,488      7,732,641      247,647      6,057,950   

Shares Redeemed

  (460,632   (11,967,522   (873,525   (22,741,441
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  232,516      5,664,119      (63,268   (2,168,723
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  860,570    $ 22,177,659      1,403,665    $ 36,330,043   

Shares Issued for Reinvested Dividends

  386,759      9,687,486      305,081      7,517,565   

Shares Redeemed

  (960,160   (25,257,887   (1,369,876   (35,617,573
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  287,169      6,607,258      338,870      8,230,035   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

153

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R5

Shares Sold

  1,735,296    $ 44,606,892      2,250,986    $ 57,855,856   

Shares Issued for Reinvested Dividends

  550,127      13,829,912      423,595      10,492,495   

Shares Redeemed

  (1,172,803   (30,570,090   (2,215,279   (58,005,512
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,112,620      27,866,714      459,302      10,342,839   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  360    $ 10,000         $   

Shares Issued for Reinvested Dividends

  36      911             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  396      10,911             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  2,711,523    $ 69,885,070      4,534,013    $ 117,995,001   

Shares Issued for Reinvested Dividends

  4,801,853      120,801,017      5,064,102      125,196,800   

Shares Redeemed

  (4,186,210   (109,400,197   (23,032,840   (609,175,370
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,327,166      81,285,890      (13,434,725   (365,983,569
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  22,772,331    $      554,729,406      (2,468,222 $     (112,116,374
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

Equity Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  6,721,394    $ 127,133,805      23,238,515    $ 423,849,390   

Shares Issued for Reinvested Dividends

  3,676,561      68,134,549      4,983,809      88,779,589   

Shares Redeemed

  (11,506,962       (218,184,483   (23,748,917       (438,157,374

Shares converted (from) Class B into Class A

  23,685      450,597      53,280      977,733   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,085,322   (22,465,532   4,526,687      75,449,338   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  16,089    $ 302,170      58,251    $ 1,063,946   

Shares Issued for Reinvested Dividends

  37,153      688,019      65,589      1,163,587   

Shares Redeemed

  (242,489   (4,595,324   (457,814   (8,395,917

Shares converted (from) Class B into Class A

  (23,674   (450,597   (53,277   (977,733
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (212,921   (4,055,732   (387,251   (7,146,117
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,695,295    $ 50,725,811      7,414,073    $ 134,841,474   

Shares Issued for Reinvested Dividends

  745,637      13,716,130      786,133      13,876,238   

Shares Redeemed

  (2,112,499   (39,752,064   (2,939,088   (53,666,780
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,328,433      24,689,877      5,261,118      95,050,932   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  7,949,201    $ 149,896,699      23,321,858    $ 426,332,366   

Shares Issued for Reinvested Dividends

  1,732,519      32,006,232      1,901,806      33,880,207   

Shares Redeemed

  (8,949,168       (168,465,907   (14,128,755       (258,879,321
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  732,552      13,437,024      11,094,909      201,333,252   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

154

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R3

Shares Sold

  518,999    $ 9,796,429      1,013,431    $ 18,524,621   

Shares Issued for Reinvested Dividends

  102,910      1,906,639      121,119      2,155,113   

Shares Redeemed

  (356,046   (6,733,328   (758,718   (13,899,908
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  265,863      4,969,740      375,832      6,779,826   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  630,821    $ 12,001,737      1,317,623    $ 23,994,485   

Shares Issued for Reinvested Dividends

  125,278      2,326,709      164,095      2,930,535   

Shares Redeemed

  (644,941   (12,293,466   (1,114,276   (20,669,404
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  111,158      2,034,980      367,442      6,255,616   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  966,974    $ 18,467,109      2,276,360    $ 42,019,455   

Shares Issued for Reinvested Dividends

  168,304      3,140,160      195,011      3,501,393   

Shares Redeemed

  (893,107   (17,035,274   (1,708,762   (31,262,501
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  242,171      4,571,995      762,609      14,258,347   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6

Shares Sold

  1,169    $ 22,330         $   

Shares Issued for Reinvested Dividends

  21      381             

Shares Redeemed

  (21   (397          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,169      22,314             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  1,864,984    $ 35,519,280      4,719,873    $ 86,201,941   

Shares Issued for Reinvested Dividends

  466,452      8,718,037      504,532      9,099,684   

Shares Redeemed

  (1,401,770   (26,821,946   (2,248,974   (41,733,023
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  929,666      17,415,371      2,975,431      53,568,602   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  2,312,769    $      40,620,037      24,976,777    $     445,549,796   
  

 

 

   

 

 

   

 

 

   

 

 

 

Growth Opportunities Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  3,341,668    $ 131,160,346      2,906,970    $ 117,825,129   

Issued in Merger

            9,619,769      380,973,648   

Shares Issued for Reinvested Dividends

  7,036,742      255,996,603      980,734      37,199,254   

Shares Redeemed

  (2,997,445       (118,069,275   (4,766,831       (194,247,986

Shares converted (from) Class B into Class A

  30,994      1,227,286      68,080      2,766,967   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  7,411,959      270,314,960      8,808,722      344,517,012   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  32,793    $ 897,455      16,334    $ 2,017,943   

Issued in Merger

            145,287      4,455,206   

Shares Issued for Reinvested Dividends

  167,713      4,395,762      35,380      1,041,600   

Shares Redeemed

  (116,462   (3,359,408   (267,607   (7,801,880

Shares converted (from) Class B into Class A

  (42,747   (1,227,286   (68,080   (2,766,967
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  41,297      706,523      (138,686   (3,054,098
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

155

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  1,850,193    $ 52,463,187      1,147,608    $ 39,602,224   

Issued in Merger

            1,244,047      38,336,418   

Shares Issued for Reinvested Dividends

  1,801,666      47,618,034      241,727      7,150,297   

Shares Redeemed

  (893,834   (25,753,581   (993,424   (31,429,150
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,758,025      74,327,640      1,639,958      53,659,789   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  10,181,962    $ 409,576,089      9,661,043    $ 398,434,498   

Issued in Merger

            5,900,903           239,063,272   

Shares Issued for Reinvested Dividends

  6,332,967           237,296,256      922,669      35,771,876   

Shares Redeemed

  (7,382,965   (300,807,913   (10,441,007   (434,021,508
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  9,131,964      346,064,432      6,043,608      239,248,138   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  189,733    $ 7,589,914      192,558    $ 7,907,601   

Issued in Merger

            28,006      1,123,623   

Shares Issued for Reinvested Dividends

  133,408      4,918,740      23,145      890,165   

Shares Redeemed

  (100,682   (3,955,956   (202,397   (8,362,311
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  222,459      8,552,698      41,312      1,559,078   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  189,121    $ 7,800,330      249,812    $ 10,659,171   

Issued in Merger

            87,171      3,580,566   

Shares Issued for Reinvested Dividends

  215,215      8,182,472      37,995      1,494,710   

Shares Redeemed

  (139,283   (5,739,641   (325,362   (13,752,273
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  265,053      10,243,161      49,616      1,982,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  230,192    $ 9,679,149      2,186,606    $ 88,505,755   

Issued in Merger

            1,474      61,745   

Shares Issued for Reinvested Dividends

  437,027      17,052,786      19,015      761,916   

Shares Redeemed

  (245,383   (10,530,910   (485,186   (20,905,043
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  421,836      16,201,025      1,721,909      68,424,373   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  212    $ 10,000         $   

Shares Issued for Reinvested Dividends

  42      1,642             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  254      11,642             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  536,655    $ 23,058,013      154,439    $ 3,980,085   

Issued in Merger

            134,279      5,662,605   

Shares Issued for Reinvested Dividends

  283,158      11,147,947      51,249      2,066,852   

Shares Redeemed

  (105,947   (4,530,651   (290,656   (12,377,728
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  713,866      29,675,309      49,311      (668,186
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  20,966,713    $     756,097,390      18,215,750    $     705,668,280   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

 

 

156

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Healthcare Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  4,341,440    $     164,810,744      4,246,090    $     138,256,714   

Shares Issued for Reinvested Dividends

  1,147,667      40,592,988             

Shares Redeemed

  (1,387,279   (52,148,370   (2,729,598   (87,391,866

Shares converted (from) Class B into Class A

  24,138      931,638      43,286      1,398,567   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,125,966      154,187,000      1,559,778      52,263,415   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  20,253    $ 662,143      14,050    $ 397,992   

Shares Issued for Reinvested Dividends

  23,436      721,123             

Shares Redeemed

  (101,704   (3,366,503   (210,249   (5,915,820

Shares converted (from) Class B into Class A

  (27,758   (931,638   (43,286   (1,398,567
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (85,773   (2,914,875   (239,485   (6,916,395
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  1,869,241    $ 62,311,885      1,431,513    $ 41,553,037   

Shares Issued for Reinvested Dividends

  398,445      12,359,998             

Shares Redeemed

  (367,006   (12,201,395   (645,576   (18,640,173
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,900,680      62,470,488      785,937      22,912,864   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  1,717,010    $ 67,007,577      1,778,835    $ 59,336,290   

Shares Issued for Reinvested Dividends

  224,482      8,182,379             

Shares Redeemed

  (474,348   (18,356,021   (873,492   (29,299,650
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,467,144      56,833,935      905,343      30,036,640   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  456,745    $ 17,700,601      533,680    $ 17,903,759   

Shares Issued for Reinvested Dividends

  76,789      2,793,593             

Shares Redeemed

  (205,528   (7,835,595   (318,871   (10,684,655
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  328,006      12,658,599      214,809      7,219,104   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  322,628    $ 12,907,618      350,389    $ 11,950,638   

Shares Issued for Reinvested Dividends

  51,929      1,946,281             

Shares Redeemed

  (89,897   (3,593,373   (187,783   (6,312,601
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  284,660      11,260,526      162,606      5,638,037   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  80,384    $ 3,312,747      55,603    $ 1,951,139   

Shares Issued for Reinvested Dividends

  4,336      166,891             

Shares Redeemed

  (28,525   (1,170,626   (38,798   (1,337,288
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  56,195      2,309,012      16,805      613,851   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  44,205    $ 1,804,769      93,800    $ 3,294,919   

Shares Issued for Reinvested Dividends

  9,967      386,236             

Shares Redeemed

  (15,960   (648,598   (74,555   (2,623,740
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  38,212      1,542,407      19,245      671,179   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  8,115,090    $     298,347,092      3,425,038    $     112,438,695   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

157

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

MidCap Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  5,430,259    $ 141,993,024      7,669,202    $ 201,602,782   

Shares Issued for Reinvested Dividends

  7,470,845      181,840,371      5,885,537      141,547,169   

Shares Redeemed

  (4,593,701       (119,372,981   (16,536,000       (435,627,486

Shares converted (from) Class B into Class A

  38,605      1,008,552      81,927      2,154,024   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  8,346,008      205,468,966      (2,899,334   (90,323,511
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  17,754    $ 352,348      49,069    $ 1,025,291   

Shares Issued for Reinvested Dividends

  187,726      3,502,970      159,556      3,057,100   

Shares Redeemed

  (122,999   (2,471,273   (358,234   (7,023,548

Shares converted (from) Class B into Class A

  (50,204   (1,008,552   (81,927   (2,154,024
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  32,277      375,493      (231,536   (5,095,181
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,838,653    $ 58,568,910      3,285,184    $ 70,121,656   

Shares Issued for Reinvested Dividends

  3,259,674      62,553,351      2,159,468      42,325,578   

Shares Redeemed

  (1,853,311   (38,210,027   (3,187,180   (67,841,246
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,245,016      82,912,234      2,257,472      44,605,988   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  4,910,104    $ 129,592,967      11,260,304    $ 303,600,378   

Shares Issued for Reinvested Dividends

  2,049,424      50,702,742      820,991      19,982,925   

Shares Redeemed

  (2,189,821   (57,807,414   (2,967,374   (78,600,420
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,769,707      122,488,295      9,113,921      244,982,883   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  560,892    $ 16,107,988      511,275    $ 14,734,623   

Shares Issued for Reinvested Dividends

  186,911      5,033,512      128,964      3,409,817   

Shares Redeemed

  (183,318   (5,259,938   (467,889   (13,425,866
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  564,485      15,881,562      172,350      4,718,574   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  1,724,751    $ 50,035,431      1,098,044    $ 32,080,748   

Shares Issued for Reinvested Dividends

  291,617      8,028,220      196,029      5,271,207   

Shares Redeemed

  (631,986   (18,722,995   (942,212   (27,487,836
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,384,382      39,340,656      351,861      9,864,119   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  1,348,606    $ 39,742,410      838,230    $ 24,802,356   

Shares Issued for Reinvested Dividends

  351,572      9,801,832      236,276      6,407,782   

Shares Redeemed

  (455,235   (13,622,568   (688,020   (20,093,064
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,244,943      35,921,674      386,486      11,117,074   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  30,174    $ 902,347         $   

Shares Issued for Reinvested Dividends

  31      858             

Shares Redeemed

  (652   (20,060          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  29,553      883,145             
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

158

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class Y

Shares Sold

  6,561,632    $ 195,009,543      8,285,332    $ 247,563,593   

Shares Issued for Reinvested Dividends

  3,104,776      86,995,819      2,067,950      56,268,909   

Shares Redeemed

  (8,265,104   (246,448,718   (5,979,371   (175,703,439
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  1,401,304      35,556,644      4,373,911      128,129,063   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  22,017,675    $      538,828,669      13,525,131    $      347,999,009   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

MidCap Value Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  1,204,742    $ 18,827,021      2,200,511    $ 35,906,259   

Shares Issued for Reinvested Dividends

  1,747,300      25,055,811      1,280,591      19,132,034   

Shares Redeemed

  (1,132,272       (17,594,986   (2,809,819       (46,076,422

Shares converted (from) Class B into Class A

  14,147      220,800      25,938      422,340   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,833,917      26,508,646      697,221      9,384,211   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  4,945    $ 67,105      5,453    $ 80,432   

Shares Issued for Reinvested Dividends

  20,894      262,016      20,950      280,934   

Shares Redeemed

  (17,645   (240,003   (44,641   (602,391

Shares converted (from) Class B into Class A

  (16,122   (220,800   (25,938   (422,340
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (7,928   (131,682   (44,176   (663,365
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  290,635    $ 3,923,648      420,359    $ 6,066,244   

Shares Issued for Reinvested Dividends

  371,518      4,636,545      257,808      3,436,582   

Shares Redeemed

  (290,717   (3,935,574   (452,135   (6,603,527
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  371,436      4,624,619      226,032      2,899,299   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  539,691    $ 8,295,992      1,555,731    $ 25,797,606   

Shares Issued for Reinvested Dividends

  232,153      3,359,439      81,259      1,218,068   

Shares Redeemed

  (784,834   (12,140,200   (555,709   (9,147,262
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (12,990   (484,769   1,081,281      17,868,412   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  134,616    $ 2,214,199      353,372    $ 5,996,958   

Shares Issued for Reinvested Dividends

  70,619      1,059,988      27,857      434,856   

Shares Redeemed

  (232,450   (3,734,514   (94,647   (1,592,846
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (27,215   (460,327   286,582      4,838,968   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  217,612    $ 3,541,153      301,832    $ 5,225,012   

Shares Issued for Reinvested Dividends

  60,130      913,209      28,516      447,991   

Shares Redeemed

  (76,546   (1,265,491   (77,051   (1,326,268
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  201,196      3,188,871      253,297      4,346,735   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

159

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R5

Shares Sold

  331,087    $ 5,600,181      116,642    $ 2,004,805   

Shares Issued for Reinvested Dividends

  20,697      317,777      7,864      124,254   

Shares Redeemed

  (57,493   (950,038   (39,591   (673,078
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  294,291      4,967,920      84,915      1,455,981   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  595,644    $ 9,699,519      3,017,935    $ 53,095,854   

Shares Issued for Reinvested Dividends

  1,175,452      18,085,601      842,561      13,320,892   

Shares Redeemed

  (1,281,792   (21,420,447   (3,170,911   (55,411,888
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  489,304      6,364,673      689,585      11,004,858   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  3,142,011    $      44,577,951      3,274,737    $      51,135,099   
  

 

 

   

 

 

   

 

 

   

 

 

 

Small Company Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,415,068    $ 52,510,179      2,541,227    $ 60,828,563   

Shares Issued for Reinvested Dividends

  2,859,231      57,642,102      1,601,959      35,947,971   

Shares Redeemed

  (2,139,591       (46,454,325   (2,911,289       (69,115,332

Shares converted (from) Class B into Class A

  14,558      314,336      21,279      510,055   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,149,266      64,012,292      1,253,176      28,171,257   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  4,777    $ 79,043      11,055    $ 215,565   

Shares Issued for Reinvested Dividends

  55,903      884,387      38,825      720,600   

Shares Redeemed

  (37,573   (648,837   (87,870   (1,659,952

Shares converted (from) Class B into Class A

  (18,534   (314,336   (21,279   (510,055
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,573      257      (59,269   (1,233,842
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  182,449    $ 3,136,296      171,050    $ 3,365,868   

Shares Issued for Reinvested Dividends

  462,372      7,296,225      256,524      4,748,255   

Shares Redeemed

  (160,147   (2,756,317   (394,247   (7,788,859
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  484,674      7,676,204      33,327      325,264   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  818,885    $ 18,413,538      1,148,787    $ 28,254,416   

Shares Issued for Reinvested Dividends

  459,818      9,578,007      185,871      4,275,036   

Shares Redeemed

  (416,320   (9,243,131   (508,644   (12,311,239
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  862,383      18,748,414      826,014      20,218,213   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  181,270    $ 4,336,645      471,390    $ 11,862,900   

Shares Issued for Reinvested Dividends

  425,197      9,218,261      251,977      6,019,720   

Shares Redeemed

  (1,115,388   (25,389,788   (662,425   (16,758,413
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (508,921   (11,834,882   60,942      1,124,207   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

160

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R4

Shares Sold

  341,944    $ 8,282,694      512,639    $ 13,324,559   

Shares Issued for Reinvested Dividends

  437,726      9,844,453      276,453      6,789,685   

Shares Redeemed

  (322,714   (7,903,685   (882,136   (22,955,392
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  456,956      10,223,462      (93,044   (2,841,148
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  180,374    $ 4,544,018      62,309    $ 1,670,794   

Shares Issued for Reinvested Dividends

  52,863      1,227,471      34,457      866,941   

Shares Redeemed

  (56,086   (1,395,951   (130,979   (3,470,808
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  177,151      4,375,538      (34,213   (933,073
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  354    $ 10,000         $   

Shares Issued for Reinvested Dividends

  62      1,449             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  416      11,449             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  1,225,026    $ 31,312,501      3,389,614    $ 92,150,907   

Shares Issued for Reinvested Dividends

  2,055,037      48,355,023      1,244,995      31,660,217   

Shares Redeemed

  (1,216,476   (31,488,139   (4,324,824       (117,597,719
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  2,063,587      48,179,385      309,785      6,213,405   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  6,690,085    $     141,392,119      2,296,718    $ 51,044,283   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

Small/Mid Cap Equity Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  382,447    $ 5,034,345      589,635    $ 8,024,210   

Shares Issued for Reinvested Dividends

  420,436      5,202,022      549,748      7,186,719   

Shares Redeemed

  (423,000   (5,549,306   (719,229   (9,768,583

Shares converted (from) Class B into Class A

  25,544      338,015      40,877      561,616   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  405,427      5,025,076      461,031      6,003,962   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  1,013    $ 12,096      4,027    $ 52,801   

Shares Issued for Reinvested Dividends

  24,551      284,304      46,566      573,681   

Shares Redeemed

  (38,900   (480,161   (80,402   (1,013,846

Shares converted (from) Class B into Class A

  (27,114   (338,015   (40,877   (561,616
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (40,450   (521,776   (70,686   (948,980
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  81,506    $ 1,004,288      193,068    $ 2,481,316   

Shares Issued for Reinvested Dividends

  112,859      1,288,848      140,831      1,719,096   

Shares Redeemed

  (88,022       (1,068,684   (167,676       (2,148,060
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  106,343      1,224,452      166,223      2,052,352   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

161

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class I(1)

Shares Sold

  7,463    $ 100,000         $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  7,463      100,000             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  12,154    $ 163,549      16,147    $ 226,328   

Shares Issued for Reinvested Dividends

  4,189      53,140      6,140      82,317   

Shares Redeemed

  (2,784   (37,458   (20,605   (276,545
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  13,559      179,231      1,682      32,100   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  3,510    $ 47,144      23,726    $ 329,293   

Shares Issued for Reinvested Dividends

  2,874      36,652      1,797      24,107   

Shares Redeemed

  (2,834   (38,790   (725   (10,164
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,550      45,006      24,798      343,236   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  1,203    $ 16,717      1,290    $ 17,772   

Shares Issued for Reinvested Dividends

  1,608      20,616      1,791      24,140   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,811      37,333      3,081      41,912   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  81,831    $ 1,148,017      101    $ 1,381   

Shares Issued for Reinvested Dividends

  5,845      74,879      2,382      32,088   

Shares Redeemed

  (6,277   (84,846          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  81,399      1,138,050      2,483      33,469   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  580,102    $     7,227,372      588,612    $     7,558,051   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on March 31, 2015.

SmallCap Growth Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  875,995    $ 43,055,709      932,647    $ 44,158,010   

Shares Issued for Reinvested Dividends

  219,479           10,280,405      351,327      16,009,966   

Shares Redeemed

  (785,478   (40,170,073   (1,104,634       (52,507,554

Shares converted (from) Class B into Class A

  5,780      291,094      20,515      976,851   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  315,776      13,457,135      199,855      8,637,273   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  241    $ 9,307      4,950    $ 199,323   

Shares Issued for Reinvested Dividends

  3,349      128,001      9,307      352,381   

Shares Redeemed

  (10,975   (453,849   (39,089   (1,377,937

Shares converted (from) Class B into Class A

  (7,084   (291,094   (20,515   (976,851
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (14,469   (607,635   (45,347   (1,803,084
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

162

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  224,939    $ 9,034,228      382,352    $ 14,891,568   

Shares Issued for Reinvested Dividends

  60,618      2,296,226      75,636      2,835,586   

Shares Redeemed

  (102,645   (4,128,537   (176,563   (6,825,650
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  182,912      7,201,917      281,425      10,901,504   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  2,341,163    $     118,169,784      1,745,122    $ 84,480,622   

Shares Issued for Reinvested Dividends

  98,145      4,689,390      101,805      4,714,582   

Shares Redeemed

  (983,767   (51,304,924   (1,008,656   (48,341,679
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,455,541      71,554,250      838,271      40,853,525   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  167,720    $ 8,278,418      172,834    $ 8,220,121   

Shares Issued for Reinvested Dividends

  6,988      327,938      12,268      561,517   

Shares Redeemed

  (41,520   (2,065,164   (177,582   (8,135,678
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  133,188      6,541,192      7,520      645,960   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  648,446    $ 33,012,594      734,819    $ 35,982,533   

Shares Issued for Reinvested Dividends

  35,955      1,728,699      23,939      1,117,967   

Shares Redeemed

  (233,287   (11,956,471   (170,537   (8,206,082
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  451,114      22,784,822      588,221      28,894,418   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  1,244,415    $ 64,498,005      814,540    $ 40,296,385   

Shares Issued for Reinvested Dividends

  37,778      1,865,099      10,732      512,463   

Shares Redeemed

  (123,567   (6,529,958   (117,183   (5,806,300
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,158,626      59,833,146      708,089      35,002,548   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  193    $ 10,000         $   

Shares Issued for Reinvested Dividends

  8      409             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  201      10,409             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  2,122,466    $ 111,582,557      2,927,951    $ 146,371,693   

Shares Issued for Reinvested Dividends

  193,409      9,620,151      172,355      8,281,641   

Shares Redeemed

  (668,330   (35,344,622   (1,359,190   (66,414,720
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  1,647,545      85,858,086      1,741,116      88,238,614   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  5,330,434    $     266,633,322      4,319,150    $     211,370,758   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

 

 

163

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

Value Opportunities Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  483,932    $ 9,382,813      1,855,718    $ 36,368,099   

Issued in Merger

            5,068,560          101,052,895   

Shares Issued for Reinvested Dividends

  945,072           17,480,234      28,344      535,986   

Shares Redeemed

  (1,548,203   (29,898,474   (1,825,565   (36,590,641

Shares converted (from) Class B into Class A

  26,567      518,830      35,931      712,192   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (92,632   (2,516,597   5,162,988          102,078,531   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  1,833    $ 30,533      6,907    $ 55,902   

Issued in Merger

            99,401      1,772,987   

Shares Issued for Reinvested Dividends

  16,686      271,313             

Shares Redeemed

  (41,180   (702,065   (88,477   (1,498,211

Shares converted (from) Class B into Class A

  (29,977   (518,830   (35,931   (712,192
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (52,638   (919,049   (18,100   (381,514
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  104,510    $ 1,758,645      216,378    $ 3,944,942   

Issued in Merger

            1,136,845      20,188,547   

Shares Issued for Reinvested Dividends

  126,635      2,052,542             

Shares Redeemed

  (269,778   (4,616,005   (282,459   (5,021,009
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (38,633   (804,818   1,070,764      19,112,480   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  167,783    $ 3,177,201      2,028,716    $ 40,625,577   

Issued in Merger

            496,445      9,781,014   

Shares Issued for Reinvested Dividends

  162,322      2,974,924      2,990      55,830   

Shares Redeemed

  (781,936   (14,725,142   (776,654   (15,265,915
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (451,831   (8,573,017   1,751,497      35,196,506   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  22,815    $ 445,723      98,970    $ 1,986,629   

Issued in Merger

            161,178      3,246,366   

Shares Issued for Reinvested Dividends

  16,813      313,532      227      4,335   

Shares Redeemed

  (59,266   (1,160,004   (120,782   (2,486,351
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (19,638   (400,749   139,593      2,750,979   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  70,795    $ 1,382,010      270,983    $ 5,477,900   

Issued in Merger

            489,772      9,940,224   

Shares Issued for Reinvested Dividends

  37,586      709,328      1,892      36,397   

Shares Redeemed

  (103,342   (2,051,946   (498,254   (10,220,618
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,039      39,392      264,393      5,233,903   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  11,851    $ 234,941      94,216    $ 2,417,503   

Issued in Merger

            1,251,688      25,515,291   

Shares Issued for Reinvested Dividends

  10,587      201,247      622      12,015   

Shares Redeemed

  (19,694       (395,741   (1,317,750       (27,523,222
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,744      40,447      28,776      421,587   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

164

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class Y

Shares Sold

  5,460    $ 112,462      14,941    $ 23,067,477   

Issued in Merger

            20,622      421,809   

Shares Issued for Reinvested Dividends

  7,522      143,556      493      9,555   

Shares Redeemed

  (8,863   (170,129   (9,545   (23,177,272
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  4,119      85,889      26,511      321,569   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (643,470 $     (13,048,502   8,426,422    $     164,734,041   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

11. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

12. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

13. Indemnifications:

Under the Company’s organizational documents, each Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and the federal securities laws. In addition, each Company, on behalf of each Fund, may enter into contracts that contain a variety of indemnifications. Each Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, each Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

 

165

 


Hartford Funds – Domestic Equity Funds

Notes to Financial Statements – (continued)

April 30, 2015

 

 

 

 

14. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

 

166

 


Hartford Funds – Domestic Equity Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Capital Appreciation Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   49.44      $    0.09      $ 1.85      $ 1.94      $ (0.13   $   (12.56   $   —      $   (12.69   $ 38.69        5.65 %(4)    $   5,758,185        1.07 %(5)      1.07 %(5)      0.43 %(5)      41

B

    42.72        (0.08     1.49        1.41               (12.56            (12.56     31.57        5.19 (4)      206,889        1.95 (5)      1.95 (5)      (0.46 )(5)      41   

C

    43.13        (0.05     1.52        1.47               (12.56            (12.56     32.04        5.31 (4)      1,932,773        1.80 (5)      1.80 (5)      (0.30 )(5)      41   

I

    49.60        0.14        1.85        1.99        (0.25     (12.56            (12.81     38.78        5.78 (4)      1,844,472        0.80 (5)      0.80 (5)      0.70 (5)      41   

R3

    52.24        0.02        2.00        2.02               (12.56            (12.56     41.70        5.46 (4)      133,248        1.40 (5)      1.40 (5)      0.10 (5)      41   

R4

    53.19        0.09        2.05        2.14        (0.11     (12.56            (12.67     42.66        5.64 (4)      185,254        1.09 (5)      1.09 (5)      0.41 (5)      41   

R5

    53.92        0.16        2.09        2.25        (0.23     (12.56            (12.79     43.38        5.80 (4)      55,059        0.79 (5)      0.79 (5)      0.71 (5)      41   

R6(6)

    54.32        0.17        1.92        2.09        (0.28     (12.56            (12.84     43.57        5.47 (4)      11        0.71 (5)      0.71 (5)      0.79 (5)      41   

Y

           0.18        2.10        2.28        (0.28     (12.56            (12.84       (10.56     5.84 (4)      1,310,365        0.69 (5)      0.69 (5)      0.81 (5)      41   

For the Year Ended October 31, 2014

  

                     

A

  $ 45.91      $ 0.22      $ 5.31      $ 5.53      $ (0.12   $ (1.88   $      $ (2.00   $ 49.44        12.49   $ 5,789,682        1.10     1.10     0.46     111

B

    40.14        (0.16     4.62        4.46               (1.88            (1.88     42.72        11.55        270,227        1.95        1.95        (0.39     111   

C

    40.46        (0.11     4.66        4.55               (1.88            (1.88     43.13        11.69        1,992,142        1.81        1.81        (0.26     111   

I

    46.01        0.37        5.34        5.71        (0.24     (1.88            (2.12     49.60        12.87        2,194,464        0.76        0.76        0.79        111   

R3

    48.42        0.08        5.62        5.70               (1.88            (1.88     52.24        12.16        136,576        1.40        1.40        0.16        111   

R4

    49.24        0.23        5.72        5.95        (0.12     (1.88            (2.00     53.19        12.50        191,319        1.10        1.10        0.46        111   

R5

    49.80        0.37        5.81        6.18        (0.18     (1.88            (2.06     53.92        12.82        59,285        0.80        0.80        0.72        111   

Y

    50.05        0.46        5.79        6.25        (0.30     (1.88            (2.18            12.94        1,284,539        0.70        0.70        0.88        111   

For the Year Ended October 31, 2013

  

A

  $ 32.65      $ 0.18      $   13.31      $   13.49      $   (0.23   $      $      $ (0.23   $ 45.91        41.56   $ 5,796,609        1.14     1.14     0.46     91

B

    28.60        (0.13     11.67        11.54                                    40.14        40.35        381,022        1.99        1.99        (0.37     91   

C

    28.80        (0.09     11.76        11.67        (0.01                   (0.01     40.46        40.55        1,940,617        1.85        1.85        (0.25     91   

I

    32.72        0.31        13.33        13.64        (0.35                   (0.35     46.01        45.02        2,019,281        0.84        0.84        0.82        91   

R3

    34.41        0.08        14.06        14.14        (0.13                   (0.13     48.42        41.20        134,084        1.41        1.40        0.21        91   

R4

    34.98        0.21        14.28        14.49        (0.23                   (0.23     49.24        41.63        184,618        1.10        1.10        0.51        91   

R5

    35.40        0.35        14.41        14.76        (0.36                   (0.36     49.80        42.04        142,768        0.80        0.80        0.84        91   

Y

    35.58        0.39        14.48        14.87        (0.40                   (0.40     50.05        42.17        1,348,160        0.70        0.70        0.91        91   

For the Year Ended October 31, 2012(7)

  

                     

A

  $ 30.55      $ 0.25      $ 2.38      $ 2.63      $ (0.53   $      $      $ (0.53   $ 32.65        8.84   $ 4,859,760        1.16     1.16     0.63     74

B

    26.76        (0.31     2.40        2.09        (0.25                   (0.25     28.60        7.93        391,388        2.01        2.00        (0.23     74   

C

    26.94        (0.16     2.31        2.15        (0.29                   (0.29     28.80        8.11        1,642,578        1.87        1.87        (0.09     74   

I

    30.61        0.36        2.37        2.73        (0.62                   (0.62     32.72        9.19        3,024,465        0.86        0.86        0.93        74   

R3

    32.17        0.10        2.61        2.71        (0.47                   (0.47     34.41        8.59        122,235        1.41        1.40        0.39        74   

R4

    32.68        0.28        2.57        2.85        (0.55                   (0.55     34.98        8.92        168,689        1.11        1.10        0.68        74   

R5

    33.09        0.40        2.58        2.98        (0.67                   (0.67     35.40        9.25        185,705        0.80        0.80        1.00        74   

Y

    33.26        0.55        2.47        3.02        (0.70                   (0.70     35.58        9.36        1,304,963        0.70        0.70        1.09        74   

For the Year Ended October 31, 2011

  

A

  $ 32.40      $ 0.19      $ (2.04   $ (1.85   $      $      $      $      $ 30.55        (5.71 )%    $ 5,859,434        1.12     1.12     0.55     75

B

    28.62        (0.08     (1.78     (1.86                                 26.76        (6.50     559,856        1.95        1.95        (0.28     75   

C

    28.79        (0.05     (1.80     (1.85                                 26.94        (6.43     2,096,461        1.84        1.84        (0.16     75   

I

    32.39        0.27        (2.05     (1.78                                 30.61        (5.50     3,254,198        0.87        0.87        0.81        75   

R3

    34.22        0.10        (2.15     (2.05                                 32.17        (5.99     137,767        1.41        1.41        0.30        75   

R4

    34.66        0.21        (2.19     (1.98                                 32.68        (5.71     224,653        1.10        1.10        0.59        75   

R5

    34.99        0.32        (2.22     (1.90                                 33.09        (5.43     204,417        0.80        0.80        0.89        75   

Y

    35.13        0.36        (2.23     (1.87                                 33.26        (5.32     1,460,367        0.70        0.70        0.98        75   

For the Year Ended October 31, 2010

  

                     

A

  $ 28.02      $ 0.14      $ 4.24      $ 4.38      $      $      $      $      $ 32.40        15.63   $ 8,535,338        1.15     1.15     0.45     70

B

    24.95        (0.10     3.77        3.67                                    28.62        14.71        828,754        1.95        1.95        (0.36     70   

C

    25.07        (0.07     3.79        3.72                                    28.79        14.84        3,001,079        1.85        1.85        (0.25     70   

I

    27.94        0.21        4.24        4.45                                    32.39        15.93        4,781,187        0.88        0.88        0.70        70   

R3

    29.67        0.05        4.50        4.55                                    34.22        15.34        126,972        1.42        1.41        0.17        70   

R4

    29.96        0.16        4.54        4.70                                    34.66        15.69        270,804        1.10        1.10        0.49        70   

R5

    30.15        0.26        4.58        4.84                                    34.99        16.05        215,999        0.80        0.80        0.79        70   

Y

    30.24        0.29        4.60        4.89                                    35.13        16.17        2,196,541        0.70        0.70        0.89        70   

 

The accompanying notes are an integral part of these financial statements.

 

 

  167  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Core Equity Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   22.00      $    0.06      $    1.52      $    1.58      $      $   (0.29   $   —      $   (0.29   $   23.29        7.25 %(4)    $   169,528        1.16 %(5)      1.09 %(5)      0.50 %(5)      14

B

    20.60        (0.03     1.43        1.40               (0.29            (0.29     21.71        6.87 (4)      1,666        2.30 (5)      1.91 (5)      (0.30 )(5)      14   

C

    20.54        (0.02     1.42        1.40               (0.29            (0.29     21.65        6.89 (4)      33,694        1.85 (5)      1.80 (5)      (0.21 )(5)      14   

I(8)

    23.30        0.01        (0.01                                        23.30        (0.85 )(4)      964        0.57 (5)      0.54 (5)      0.62 (5)      14   

R3

    22.41        0.03        1.55        1.58               (0.29            (0.29     23.70        7.12 (4)      642        1.51 (5)      1.35 (5)      0.26 (5)      14   

R4

    22.60        0.06        1.58        1.64               (0.29            (0.29     23.95        7.32 (4)      3,161        1.13 (5)      1.01 (5)      0.51 (5)      14   

R5

    22.72        0.05        1.61        1.66        (0.64     (0.29            (0.93     23.45        7.43 (4)      22,733        0.71 (5)      0.54 (5)      0.42 (5)      14   

R6(8)

    23.53        0.02        (0.03     (0.01                                 23.52        (0.88 )(4)      10        0.57 (5)      0.45 (5)      0.74 (5)      14   

Y

    22.79        0.10        1.58        1.68        (0.65     (0.29            (0.94     23.53        7.50 (4)      9,910        0.69 (5)      0.64 (5)      0.88 (5)      14   

For the Year Ended October 31, 2014

  

                     

A

  $ 18.77      $ 0.03      $ 3.26      $ 3.29      $ (0.06   $      $      $ (0.06   $ 22.00        17.56   $ 126,308        1.37     1.31     0.16     60

B

    17.66        (0.12     3.06        2.94                                    20.60        16.65        1,898        2.49        2.10        (0.62     60   

C

    17.59        (0.10     3.05        2.95                                    20.54        16.77        19,798        2.06        2.00        (0.53     60   

R3

    19.14        (0.01     3.32        3.31        (0.04                   (0.04     22.41        17.30        481        1.70        1.50        (0.05     60   

R4

    19.20        0.05        3.35        3.40                                    22.60        17.71        889        1.34        1.20        0.21        60   

R5

    19.38        0.12        3.36        3.48        (0.14                   (0.14     22.72        18.03        374        1.04        0.90        0.56        60   

Y

    19.44        0.13        3.37        3.50        (0.15                   (0.15     22.79        18.07        2,486        0.91        0.85        0.62        60   

For the Year Ended October 31, 2013

  

                     

A

  $ 14.57      $ 0.11      $ 4.24      $ 4.35      $   (0.15   $      $      $ (0.15   $ 18.77        30.12   $ 103,104        1.40     1.35     0.68     28

B

    13.70        (0.01     3.99        3.98        (0.02                   (0.02     17.66        29.10        2,480        2.50        2.10        (0.04     28   

C

    13.66               3.98        3.98        (0.05                   (0.05     17.59        29.19        15,324        2.07        2.04        (0.01     28   

R3

    14.86        0.09        4.32        4.41        (0.13                   (0.13     19.14        29.88        330        1.69        1.50        0.51        28   

R4

    14.91        0.12        4.34        4.46        (0.17                   (0.17     19.20        30.24        1,227        1.29        1.20        0.69        28   

R5

    15.04        0.19        4.37        4.56        (0.22                   (0.22     19.38        30.68        204        1.00        0.90        1.12        28   

Y

    15.05        0.20        4.38        4.58        (0.19                   (0.19     19.44        30.73        1,963        0.88        0.85        1.19        28   

For the Year Ended October 31, 2012

  

                     

A

  $ 12.77      $ 0.09      $ 1.74      $ 1.83      $ (0.03   $      $      $ (0.03   $ 14.57        14.39   $ 83,534        1.44     1.35     0.69     46

B

    12.07        (0.01     1.64        1.63                                    13.70        13.50        2,761        2.50        2.10        (0.08     46   

C

    12.03        (0.01     1.64        1.63                                    13.66        13.55        11,913        2.09        2.09        (0.06     46   

R3

    13.05        0.08        1.77        1.85        (0.04                   (0.04     14.86        14.22        209        1.70        1.50        0.53        46   

R4

    13.07        0.12        1.78        1.90        (0.06                   (0.06     14.91        14.57        167        1.31        1.20        0.85        46   

R5

    13.18        0.16        1.79        1.95        (0.09                   (0.09     15.04        14.93        144        1.01        0.90        1.14        46   

Y

    13.20        0.15        1.80        1.95        (0.10                   (0.10     15.05        14.90        1,594        0.85        0.85        1.04        46   

For the Year Ended October 31, 2011

  

                     

A

  $ 11.90      $ 0.07      $ 0.82      $ 0.89      $ (0.02   $      $      $ (0.02   $ 12.77        7.50   $ 80,470        1.44     1.35     0.51     56

B

    11.32        (0.03     0.79        0.76        (0.01                   (0.01     12.07        6.69        4,020        2.42        2.10        (0.21     56   

C

    11.28        (0.03     0.79        0.76        (0.01                   (0.01     12.03        6.72        11,221        2.10        2.09        (0.23     56   

R3

    12.18        0.04        0.85        0.89        (0.02                   (0.02     13.05        7.30        165        1.65        1.50        0.34        56   

R4

    12.16        0.08        0.86        0.94        (0.03                   (0.03     13.07        7.70        134        1.28        1.20        0.64        56   

R5

    12.24        0.13        0.84        0.97        (0.03                   (0.03     13.18        7.94        117        0.96        0.90        0.96        56   

Y

    12.25        0.13        0.85        0.98        (0.03                   (0.03     13.20        8.03        72,307        0.86        0.85        0.98        56   

For the Year Ended October 31, 2010

  

                     

A

  $ 10.44      $ 0.08      $ 1.58      $ 1.66      $ (0.20   $      $      $ (0.20   $ 11.90        16.00   $ 81,949        1.47     1.35     0.71     41

B

    9.89               1.50        1.50        (0.07                   (0.07     11.32        15.18        5,770        2.46        2.10        (0.04     41   

C

    9.84               1.49        1.49        (0.05                   (0.05     11.28        15.18        11,519        2.12        2.10        (0.04     41   

R3

    10.71        0.05        1.63        1.68        (0.21                   (0.21     12.18        15.77        113        1.66        1.55        0.47        41   

R4

    10.68        0.09        1.61        1.70        (0.22                   (0.22     12.16        16.01        105        1.25        1.23        0.82        41   

R5

    10.75        0.12        1.65        1.77        (0.28                   (0.28     12.24        16.55        105        0.95        0.92        1.09        41   

Y

    10.76        0.14        1.64        1.78        (0.29                   (0.29     12.25        16.63        45,376        0.85        0.85        1.21        41   

 

The accompanying notes are an integral part of these financial statements.

 

 

  168  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Dividend and Growth Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 27.05      $ 0.18      $ 0.77      $ 0.95      $ (0.17   $ (2.30   $      $ (2.47   $ 25.53        3.88 %(4)    $ 3,859,234        1.01 %(5)      1.01 %(5)      1.43 %(5)      13

B

    26.59        0.06        0.76        0.82        (0.05     (2.30            (2.35     25.06        3.41 (4)      58,443        1.96 (5)      1.94 (5)      0.52 (5)      13   

C

    26.42        0.09        0.75        0.84        (0.09     (2.30            (2.39     24.87        3.50 (4)      483,694        1.75 (5)      1.75 (5)      0.69 (5)      13   

I

    26.95        0.21        0.77        0.98        (0.20     (2.30            (2.50     25.43        4.00 (4)      1,908,492        0.81 (5)      0.81 (5)      1.63 (5)      13   

R3

    27.29        0.14        0.78        0.92        (0.13     (2.30            (2.43     25.78        3.71 (4)      92,763        1.35 (5)      1.35 (5)      1.09 (5)      13   

R4

    27.42        0.18        0.79        0.97        (0.17     (2.30            (2.47     25.92        3.89 (4)      157,782        1.04 (5)      1.04 (5)      1.40 (5)      13   

R5

    27.49        0.22        0.79        1.01        (0.21     (2.30            (2.51     25.99        4.03 (4)      242,869        0.74 (5)      0.74 (5)      1.69 (5)      13   

R6(6)

    27.81        0.21        0.51        0.72        (0.22     (2.30            (2.52     26.01        2.95 (4)      10        0.64 (5)      0.64 (5)      1.71 (5)      13   

Y

    27.50        0.23        0.80        1.03        (0.22     (2.30            (2.52     26.01        4.07 (4)      1,354,513        0.64 (5)      0.64 (5)      1.79 (5)      13   

For the Year Ended October 31, 2014

  

                     

A

  $ 25.28      $ 0.36      $ 3.43      $ 3.79      $ (0.36   $ (1.66   $      $ (2.02   $ 27.05        16.01   $ 3,780,786        1.02     1.02     1.40     23

B

    24.88        0.13        3.35        3.48        (0.11     (1.66            (1.77     26.59        14.91        74,126        1.96        1.94        0.50        23   

C

    24.75        0.16        3.35        3.51        (0.18     (1.66            (1.84     26.42        15.12        467,932        1.77        1.77        0.65        23   

I

    25.20        0.41        3.42        3.83        (0.42     (1.66            (2.08     26.95        16.22        1,883,434        0.81        0.81        1.60        23   

R3

    25.49        0.28        3.45        3.73        (0.27     (1.66            (1.93     27.29        15.61        91,839        1.35        1.35        1.07        23   

R4

    25.60        0.36        3.47        3.83        (0.35     (1.66            (2.01     27.42        15.98        159,018        1.04        1.04        1.37        23   

R5

    25.66        0.44        3.48        3.92        (0.43     (1.66            (2.09     27.49        16.32        226,236        0.74        0.74        1.68        23   

R6

                                                            27.81                                        

Y

    25.67        0.47        3.48        3.95        (0.46     (1.66            (2.12     27.50        16.42        1,340,941        0.64        0.64        1.81        23   

For the Year Ended October 31, 2013

  

                     

A

  $   20.87      $   0.36      $   4.75      $   5.11      $   (0.35   $   (0.35   $   —      $   (0.70   $   25.28        25.17   $   3,454,165        1.05     1.05     1.57     30

B

    20.54        0.16        4.68        4.84        (0.15     (0.35            (0.50     24.88        24.08        98,179        2.00        1.95        0.71        30   

C

    20.45        0.19        4.65        4.84        (0.19     (0.35            (0.54     24.75        24.26        411,405        1.79        1.79        0.83        30   

I

    20.80        0.41        4.74        5.15        (0.40     (0.35            (0.75     25.20        25.48        1,581,081        0.83        0.83        1.79        30   

R3

    21.04        0.29        4.80        5.09        (0.29     (0.35            (0.64     25.49        24.79        87,399        1.35        1.35        1.27        30   

R4

    21.12        0.37        4.82        5.19        (0.36     (0.35            (0.71     25.60        25.21        139,811        1.05        1.05        1.58        30   

R5

    21.17        0.43        4.83        5.26        (0.42     (0.35            (0.77     25.66        25.57        199,409        0.75        0.75        1.85        30   

Y

    21.18        0.46        4.83        5.29        (0.45     (0.35            (0.80     25.67        25.68        1,596,519        0.65        0.65        1.99        30   

For the Year Ended October 31, 2012(7)

  

                     

A

  $ 18.61      $ 0.34      $ 2.26      $ 2.60      $ (0.34   $      $      $ (0.34   $ 20.87        14.07   $ 2,942,844        1.08     1.08     1.69     28

B

    18.32        0.17        2.21        2.38        (0.16                   (0.16     20.54        13.03        108,710        2.02        1.95        0.84        28   

C

    18.25        0.18        2.22        2.40        (0.20                   (0.20     20.45        13.20        340,069        1.82        1.82        0.94        28   

I

    18.56        0.40        2.23        2.63        (0.39                   (0.39     20.80        14.30        1,341,707        0.81        0.81        1.96        28   

R3

    18.76        0.28        2.29        2.57        (0.29                   (0.29     21.04        13.77        72,926        1.36        1.35        1.40        28   

R4

    18.84        0.34        2.29        2.63        (0.35                   (0.35     21.12        14.04        122,160        1.05        1.05        1.68        28   

R5

    18.88        0.39        2.30        2.69        (0.40                   (0.40     21.17        14.39        142,940        0.75        0.75        1.99        28   

Y

    18.88        0.41        2.31        2.72        (0.42                   (0.42     21.18        14.55        1,556,898        0.65        0.65        2.08        28   

For the Year Ended October 31, 2011

  

                     

A

  $ 17.93      $ 0.27      $ 0.67      $ 0.94      $ (0.26   $      $      $ (0.26   $ 18.61        5.22   $ 2,791,444        1.08     1.08     1.42     30

B

    17.64        0.10        0.66        0.76        (0.08                   (0.08     18.32        4.32        137,071        2.01        1.96        0.55        30   

C

    17.58        0.13        0.66        0.79        (0.12                   (0.12     18.25        4.49        309,846        1.83        1.83        0.68        30   

I

    17.87        0.32        0.68        1.00        (0.31                   (0.31     18.56        5.60        1,428,333        0.80        0.80        1.69        30   

R3

    18.08        0.22        0.67        0.89        (0.21                   (0.21     18.76        4.94        57,684        1.37        1.35        1.14        30   

R4

    18.14        0.28        0.69        0.97        (0.27                   (0.27     18.84        5.32        79,535        1.06        1.05        1.43        30   

R5

    18.18        0.34        0.68        1.02        (0.32                   (0.32     18.88        5.62        101,281        0.76        0.75        1.75        30   

Y

    18.18        0.36        0.68        1.04        (0.34                   (0.34     18.88        5.71        1,111,199        0.66        0.66        1.84        30   

For the Year Ended October 31, 2010(7)

  

                     

A

  $ 16.03      $ 0.25      $ 1.90      $ 2.15      $ (0.25   $      $      $ (0.25   $ 17.93        13.46   $ 2,850,636        1.11     1.11     1.46     33

B

    15.76        0.11        1.86        1.97        (0.09                   (0.09     17.64        12.54        182,506        2.02        1.97        0.63        33   

C

    15.72        0.12        1.86        1.98        (0.12                   (0.12     17.58        12.65        314,729        1.85        1.85        0.71        33   

I

    15.98        0.29        1.90        2.19        (0.30                   (0.30     17.87        13.78        1,129,059        0.82        0.82        1.71        33   

R3

    16.18        0.19        1.93        2.12        (0.22                   (0.22     18.08        13.15        33,933        1.39        1.38        1.06        33   

R4

    16.22        0.25        1.93        2.18        (0.26                   (0.26     18.14        13.51        57,684        1.07        1.06        1.46        33   

R5

    16.24        0.29        1.96        2.25        (0.31                   (0.31     18.18        13.93        65,379        0.78        0.78        0.81        33   

Y

    16.25        0.32        1.93        2.25        (0.32                   (0.32     18.18        13.96        1,018,263        0.67        0.67        1.88        33   

 

The accompanying notes are an integral part of these financial statements.

 

 

  169  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Equity Income Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   19.04      $   0.18      $   0.46      $   0.64      $   (0.16   $   (0.52   $   —      $   (0.68   $   19.00        3.53 %(4)    $   1,927,191        1.02 %(5)      1.02 %(5)      1.88 %(5)      12

B

    19.05        0.17        0.46        0.63        (0.15     (0.52            (0.67     19.01        3.45 (4)      17,531        1.16 (5)      1.16 (5)      1.77 (5)      12   

C

    18.96        0.11        0.47        0.58        (0.10     (0.52            (0.62     18.92        3.19 (4)      482,759        1.74 (5)      1.74 (5)      1.15 (5)      12   

I

    18.97        0.20        0.47        0.67        (0.19     (0.52            (0.71     18.93        3.67 (4)      914,953        0.77 (5)      0.77 (5)      2.13 (5)      12   

R3

    19.06        0.14        0.47        0.61        (0.13     (0.52            (0.65     19.02        3.36 (4)      63,285        1.36 (5)      1.36 (5)      1.54 (5)      12   

R4

    19.08        0.17        0.48        0.65        (0.16     (0.52            (0.68     19.05        3.56 (4)      78,712        1.06 (5)      1.06 (5)      1.84 (5)      12   

R5

    19.15        0.20        0.48        0.68        (0.19     (0.52            (0.71     19.12        3.70 (4)      96,292        0.76 (5)      0.76 (5)      2.14 (5)      12   

R6(6)

    19.39        0.18        0.30        0.48        (0.20     (0.52            (0.72     19.15        2.62 (4)      22        0.68 (5)      0.68 (5)      2.02 (5)      12   

Y

    19.19        0.21        0.47        0.68        (0.20     (0.52            (0.72     19.15        3.68 (4)      253,904        0.66 (5)      0.66 (5)      2.24 (5)      12   

For the Year Ended October 31, 2014

  

A

  $ 17.83      $ 0.34      $ 1.76      $ 2.10      $ (0.33   $ (0.56   $      $ (0.89   $ 19.04        12.19   $ 1,951,760        1.03     1.03     1.83     13

B

    17.82        0.32        1.77        2.09        (0.30     (0.56            (0.86     19.05        12.15        21,619        1.16        1.16        1.72        13   

C

    17.77        0.20        1.75        1.95        (0.20     (0.56            (0.76     18.96        11.36        458,695        1.76        1.76        1.08        13   

I

    17.76        0.38        1.77        2.15        (0.38     (0.56            (0.94     18.97        12.54        903,048        0.76        0.76        2.07        13   

R3

    17.85        0.27        1.77        2.04        (0.27     (0.56            (0.83     19.06        11.81        58,349        1.37        1.37        1.47        13   

R4

    17.87        0.33        1.76        2.09        (0.32     (0.56            (0.88     19.08        12.13        76,746        1.06        1.06        1.78        13   

R5

    17.93        0.38        1.78        2.16        (0.38     (0.56            (0.94     19.15        12.47        91,827        0.76        0.76        2.08        13   

R6

                                                            19.39                                        

Y

    17.96        0.40        1.79        2.19        (0.40     (0.56            (0.96     19.19        12.61        236,502        0.66        0.66        2.17        13   

For the Year Ended October 31, 2013

  

A

  $ 14.81      $ 0.32      $ 3.23      $ 3.55      $ (0.31   $ (0.22   $      $ (0.53   $ 17.83        24.56   $ 1,746,629        1.06     1.06     1.98     17

B

    14.78        0.23        3.22        3.45        (0.19     (0.22            (0.41     17.82        23.87        27,131        1.65        1.65        1.44        17   

C

    14.77        0.20        3.22        3.42        (0.20     (0.22            (0.42     17.77        23.67        336,264        1.79        1.79        1.20        17   

I

    14.75        0.36        3.22        3.58        (0.35     (0.22            (0.57     17.76        24.93        648,568        0.78        0.78        2.18        17   

R3

    14.83        0.27        3.23        3.50        (0.26     (0.22            (0.48     17.85        24.17        47,928        1.38        1.38        1.62        17   

R4

    14.84        0.31        3.25        3.56        (0.31     (0.22            (0.53     17.87        24.58        65,286        1.08        1.08        1.89        17   

R5

    14.88        0.35        3.27        3.62        (0.35     (0.22            (0.57     17.93        24.99        72,270        0.77        0.77        2.06        17   

Y

    14.90        0.39        3.26        3.65        (0.37     (0.22            (0.59     17.96        25.13        167,906        0.67        0.67        2.35        17   

For the Year Ended October 31, 2012

  

                     

A

  $ 12.93      $ 0.29      $ 1.89      $ 2.18      $ (0.30   $      $      $ (0.30   $ 14.81        17.00   $ 1,195,106        1.11     1.11     2.12     27

B

    12.91        0.18        1.86        2.04        (0.14                   (0.14     14.78        15.90        27,731        2.00        2.00        1.27        27   

C

    12.91        0.19        1.88        2.07        (0.21                   (0.21     14.77        16.13        160,153        1.84        1.84        1.35        27   

I

    12.89        0.31        1.89        2.20        (0.34                   (0.34     14.75        17.25        244,794        0.81        0.81        2.31        27   

R3

    12.96        0.24        1.90        2.14        (0.27                   (0.27     14.83        16.63        23,077        1.42        1.42        1.72        27   

R4

    12.97        0.28        1.89        2.17        (0.30                   (0.30     14.84        16.90        24,672        1.11        1.11        2.01        27   

R5

    12.99        0.32        1.91        2.23        (0.34                   (0.34     14.88        17.33        8,931        0.82        0.82        2.48        27   

Y

    13.01        0.55        1.69        2.24        (0.35                   (0.35     14.90        17.41        74,613        0.72        0.72        2.68        27   

For the Year Ended October 31, 2011

  

A

  $ 11.99      $ 0.25      $ 0.93      $ 1.18      $ (0.24   $      $      $ (0.24   $ 12.93        9.87   $ 826,555        1.17     1.17     1.93     18

B

    11.97        0.14        0.93        1.07        (0.13                   (0.13     12.91        8.94        29,071        2.05        2.00        1.11        18   

C

    11.97        0.15        0.94        1.09        (0.12                   (0.12     12.91        9.13        78,710        1.89        1.89        1.20        18   

I

    11.95        0.28        0.94        1.22        (0.28                   (0.28     12.89        10.24        52,965        0.88        0.88        2.21        18   

R3

    12.03        0.20        0.94        1.14        (0.21                   (0.21     12.96        9.49        6,694        1.50        1.50        1.57        18   

R4

    12.03        0.25        0.93        1.18        (0.24                   (0.24     12.97        9.87        5,651        1.18        1.18        1.92        18   

R5

    12.05        0.27        0.95        1.22        (0.28                   (0.28     12.99        10.16        2,597        0.88        0.88        2.11        18   

Y

    12.06        0.29        0.95        1.24        (0.29                   (0.29     13.01        10.33        178,516        0.77        0.77        2.28        18   

For the Year Ended October 31, 2010

  

                     

A

  $ 10.74      $ 0.21      $ 1.24      $ 1.45      $ (0.20   $      $      $ (0.20   $ 11.99        13.63   $ 716,700        1.20     1.20     1.86     27

B

    10.72        0.13        1.23        1.36        (0.11                   (0.11     11.97        12.73        31,038        2.08        2.00        1.07        27   

C

    10.73        0.13        1.23        1.36        (0.12                   (0.12     11.97        12.75        57,416        1.92        1.92        1.13        27   

I

    10.72        0.23        1.23        1.46        (0.23                   (0.23     11.95        13.76        16,462        0.93        0.93        2.06        27   

R3

    10.78        0.15        1.27        1.42        (0.17                   (0.17     12.03        13.28        1,719        1.55        1.55        1.37        27   

R4

    10.78        0.21        1.24        1.45        (0.20                   (0.20     12.03        13.59        2,926        1.20        1.20        1.80        27   

R5

    10.79        0.21        1.29        1.50        (0.24                   (0.24     12.05        14.06        694        0.87        0.87        1.70        27   

Y

    10.81        0.26        1.24        1.50        (0.25                   (0.25     12.06        14.01        71,899        0.79        0.79        2.27        27   

 

The accompanying notes are an integral part of these financial statements.

 

 

  170  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Growth Opportunities Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 43.76      $ (0.07   $ 4.00      $ 3.93      $      $   (7.73   $   —      $   (7.73   $   39.96        10.76 %(4)    $   1,663,574        1.12 %(5)      1.12 %(5)      (0.35 )%(5)      52

B

    33.71        (0.18     2.90        2.72               (7.73            (7.73     28.70        10.26 (4)      20,152        2.03 (5)      2.03 (5)      (1.27 )(5)      52   

C

    33.91        (0.16     2.94        2.78               (7.73            (7.73     28.96        10.39 (4)      294,726        1.85 (5)      1.85 (5)      (1.09 )(5)      52   

I

    44.82        (0.03     4.14        4.11               (7.73            (7.73     41.20        10.90 (4)      1,969,533        0.90 (5)      0.90 (5)      (0.14 )(5)      52   

R3

    44.25        (0.14     4.07        3.93               (7.73            (7.73     40.45        10.59 (4)      36,378        1.45 (5)      1.45 (5)      (0.69 )(5)      52   

R4

    45.39        (0.08     4.19        4.11               (7.73            (7.73     41.77        10.74 (4)      59,383        1.14 (5)      1.14 (5)      (0.38 )(5)      52   

R5

    46.36        (0.02     4.29        4.27               (7.73            (7.73     42.90        10.90 (4)      113,283        0.84 (5)      0.84 (5)      (0.08 )(5)      52   

R6(6)

    47.09               3.96        3.96               (7.73            (7.73     43.32        10.05 (4)      11        0.75 (5)      0.75 (5)      (0.02 )(5)      52   

Y

    46.70               4.34        4.34               (7.73            (7.73     43.31        10.96 (4)      93,976        0.74 (5)      0.74 (5)      0.02 (5)      52   

For the Year Ended October 31, 2014

  

                     

A

  $ 38.68      $ (0.13   $ 6.72      $ 6.59      $      $ (1.51   $      $ (1.51   $ 43.76        17.63   $ 1,497,082        1.15     1.15     (0.33 )%      136 %(9) 

B

    30.38        (0.37     5.21        4.84               (1.51            (1.51     33.71        16.65        22,277        2.07        2.02        (1.18     136 (9) 

C

    30.51        (0.33     5.24        4.91               (1.51            (1.51     33.91        16.81        251,628        1.88        1.88        (1.05     136 (9) 

I

    39.49        (0.04     6.88        6.84               (1.51            (1.51     44.82        17.92        1,733,488        0.91        0.91        (0.09     136 (9) 

R3

    39.21        (0.26     6.81        6.55               (1.51            (1.51     44.25        17.28        29,954        1.46        1.45        (0.62     136 (9) 

R4

    40.06        (0.14     6.98        6.84               (1.51            (1.51     45.39        17.65        52,498        1.15        1.15        (0.32     136 (9) 

R5

    40.76        (0.02     7.13        7.11               (1.51            (1.51     46.36        18.02        102,841        0.85        0.85        (0.05     136 (9) 

R6

                                                            47.09                                      (9) 

Y

    41.02        0.03        7.16        7.19               (1.51            (1.51     46.70        18.11        68,001        0.75        0.75        0.08        136 (9) 

For the Year Ended October 31, 2013

  

                     

A

  $ 29.60      $ (0.10   $ 9.18      $ 9.08      $      $      $      $      $ 38.68        30.68   $ 982,699        1.19     1.19     (0.30 )%      120 %(10) 

B

    23.43        (0.28     7.23        6.95                                    30.38        29.66        24,296        2.11        1.96        (1.05     120 (10) 

C

    23.52        (0.27     7.26        6.99                                    30.51        29.72        176,392        1.90        1.90        (1.01     120 (10) 

I

    30.14        (0.01     9.36        9.35                                    39.49        31.02        1,288,778        0.92        0.92        (0.03     120 (10) 

R3

    30.09        (0.19     9.31        9.12                                    39.21        30.31        24,924        1.46        1.45        (0.56     120 (10) 

R4

    30.64        (0.09     9.51        9.42                                    40.06        30.74        44,353        1.15        1.15        (0.25     120 (10) 

R5

    31.09        0.01        9.66        9.67                                    40.76        31.10        20,243        0.85        0.85        0.04        120 (10) 

Y

    31.25        0.05        9.72        9.77                                    41.02        31.26        57,712        0.75        0.75        0.14        120 (10) 

For the Year Ended October 31, 2012

  

                     

A

  $ 25.98      $ (0.15   $ 3.77      $ 3.62      $      $      $      $      $ 29.60        13.93   $ 748,795        1.23     1.21     (0.54 )%      116

B

    20.72        (0.28     2.99        2.71                                    23.43        13.08        23,529        2.15        1.96        (1.29     116   

C

    20.80        (0.28     3.00        2.72                                    23.52        13.08        123,174        1.93        1.93        (1.26     116   

I

    26.39        (0.08     3.83        3.75                                    30.14        14.21        893,563        0.95        0.95        (0.28     116   

R3

    26.48        (0.22     3.83        3.61                                    30.09        13.63        17,259        1.48        1.45        (0.78     116   

R4

    26.89        (0.14     3.89        3.75                                    30.64        13.95        38,458        1.16        1.15        (0.47     116   

R5

    27.20        (0.05     3.94        3.89                                    31.09        14.30        14,935        0.86        0.85        (0.17     116   

Y

    27.32        (0.03     3.96        3.93                                    31.25        14.39        46,782        0.76        0.76        (0.09     116   

For the Year Ended October 31, 2011

  

                     

A(11)

  $ 24.78      $ 0.02      $ 1.18      $ 1.20      $      $      $      $      $ 25.98        4.84   $ 754,532        1.22     1.22     0.06     121

B

    19.93        (0.29     1.08        0.79                                    20.72        3.96        27,884        2.13        2.04        (1.32     121   

C

    19.98        (0.26     1.08        0.82                                    20.80        4.10        128,016        1.92        1.92        (1.20     121   

I

    25.10        (0.06     1.35        1.29                                    26.39        5.14        791,091        0.92        0.92        (0.22     121   

R3

    25.31        (0.20     1.37        1.17                                    26.48        4.62        13,444        1.48        1.45        (0.74     121   

R4

    25.63        (0.12     1.38        1.26                                    26.89        4.92        36,249        1.16        1.15        (0.43     121   

R5

    25.85        (0.04     1.39        1.35                                    27.20        5.22        14,132        0.86        0.85        (0.15     121   

Y

    25.94        (0.01     1.39        1.38                                    27.32        5.32        98,278        0.76        0.76        (0.04     121   

For the Year Ended October 31, 2010

  

                     

A

  $   20.69      $   (0.13   $   4.22      $   4.09      $      $      $      $      $ 24.78        19.77   $ 431,465        1.35     1.32     (0.57 )%      115

B

    16.77        (0.25     3.41        3.16                                    19.93        18.84        34,559        2.18        2.07        (1.33     115   

C

    16.78        (0.23     3.43        3.20                                    19.98        19.07        156,903        1.95        1.95        (1.21     115   

I

    20.91        (0.05     4.28        4.23          (0.04                   (0.04     25.10        20.23        495,439        0.93        0.93        (0.22     115   

R3

    21.17        (0.18     4.32        4.14                                    25.31        19.56        10,772        1.49        1.49        (0.77     115   

R4

    21.37        (0.10     4.36        4.26                                    25.63        19.93        42,770        1.17        1.17        (0.44     115   

R5

    21.52        (0.03     4.40        4.37        (0.04                   (0.04     25.85        20.34        14,203        0.87        0.87        (0.14     115   

Y

    21.59        (0.01     4.42        4.41        (0.06                   (0.06     25.94        20.44        136,662        0.77        0.77        (0.04     115   

 

The accompanying notes are an integral part of these financial statements.

 

 

  171  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Healthcare Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   36.60      $   (0.09   $   4.22      $   4.13      $   —      $   (2.49   $   —      $   (2.49   $   38.24        11.84 %(4)    $   783,668        1.27 %(5)      1.27 %(5)      (0.50 )%(5)      18

B

    32.18        (0.23     3.70        3.47               (2.49            (2.49     33.16        11.39 (4)      8,801        2.15 (5)      2.15 (5)      (1.39 )(5)      18   

C

    32.42        (0.20     3.72        3.52               (2.49            (2.49     33.45        11.46 (4)      245,745        2.01 (5)      2.01 (5)      (1.23 )(5)      18   

I

    37.63        (0.04     4.35        4.31               (2.49            (2.49     39.45        12.00 (4)      201,967        1.01 (5)      1.01 (5)      (0.23 )(5)      18   

R3

    37.58        (0.16     4.35        4.19               (2.49            (2.49     39.28        11.68 (4)      55,188        1.61 (5)      1.61 (5)      (0.84 )(5)      18   

R4

    38.64        (0.11     4.48        4.37               (2.49            (2.49     40.52        11.84 (4)      42,499        1.31 (5)      1.31 (5)      (0.54 )(5)      18   

R5

    39.60        (0.05     4.60        4.55               (2.49            (2.49     41.66        12.01 (4)      4,784        1.02 (5)      1.02 (5)      (0.25 )(5)      18   

Y

    39.85        (0.03     4.62        4.59               (2.49            (2.49     41.95        12.04 (4)      8,005        0.91 (5)      0.91 (5)      (0.13 )(5)      18   

For the Year Ended October 31, 2014

  

                     

A

  $ 28.05      $ (0.13   $ 8.68      $ 8.55      $      $      $      $      $ 36.60        30.48   $ 599,010        1.33     1.33     (0.40 )%      28

B

    24.88        (0.36     7.66        7.30                                    32.18        29.34        11,303        2.20        2.20        (1.27     28   

C

    25.03        (0.32     7.71        7.39                                    32.42        29.52        176,581        2.06        2.06        (1.13     28   

I

    28.76        (0.04     8.91        8.87                                    37.63        30.84        137,450        1.05        1.05        (0.12     28   

R3

    28.89        (0.24     8.93        8.69                                    37.58        30.08        40,482        1.64        1.64        (0.71     28   

R4

    29.62        (0.14     9.16        9.02                                    38.64        30.45        29,530        1.34        1.34        (0.41     28   

R5

    30.27        (0.04     9.37        9.33                                    39.60        30.82        2,323        1.05        1.05        (0.12     28   

Y

    30.42               9.43        9.43                                    39.85        31.00        6,081        0.94        0.94               28   

For the Year Ended October 31, 2013

  

A

  $ 20.11      $ (0.06   $ 8.00      $ 7.94      $      $      $      $      $ 28.05        39.48   $ 415,323        1.40     1.40     (0.24 )%      32

B

    17.99        (0.23     7.12        6.89                                    24.88        38.30        14,697        2.29        2.26        (1.08     32   

C

    18.07        (0.21     7.17        6.96                                    25.03        38.52        116,641        2.11        2.11        (0.95     32   

I

    20.55        0.01        8.20        8.21                                    28.76        39.95        79,005        1.08        1.08        0.06        32   

R3

    20.77        (0.13     8.25        8.12                                    28.89        39.09        24,914        1.66        1.65        (0.51     32   

R4

    21.22        (0.05     8.45        8.40                                    29.62        39.59        17,817        1.36        1.35        (0.20     32   

R5

    21.62        0.05        8.60        8.65                                    30.27        40.01        1,267        1.08        1.05        0.19        32   

Y

    21.71        0.05        8.66        8.71                                    30.42        40.12        4,056        0.96        0.96        0.20        32   

For the Year Ended October 31, 2012(7)

  

                     

A

  $ 16.80      $      $ 3.31      $ 3.31      $      $      $      $      $ 20.11        19.70   $ 276,741        1.47     1.47         46

B

    15.15        (0.17     3.01        2.84                                    17.99        18.75        14,015        2.38        2.28        (0.84     46   

C

    15.20        (0.12     2.99        2.87                                    18.07        18.88        73,728        2.17        2.17        (0.71     46   

I

    17.10        0.07        3.38        3.45                                    20.55        20.18        38,199        1.11        1.11        0.35        46   

R3

    17.38        (0.02     3.41        3.39                                    20.77        19.51        12,521        1.69        1.65        (0.15     46   

R4

    17.70        0.02        3.50        3.52                                    21.22        19.89        12,363        1.38        1.35        0.11        46   

R5

    17.98        0.08        3.56        3.64                                    21.62        20.24        2,489        1.09        1.05        0.43        46   

Y

    18.05        0.10        3.56        3.66                                    21.71        20.28        3,252        0.98        0.98        0.48        46   

For the Year Ended October 31, 2011

  

A

  $ 15.21      $ (0.04   $ 1.63      $ 1.59      $      $      $      $      $ 16.80        10.45   $ 224,294        1.49     1.49     (0.24 )%      44

B

    13.83        (0.16     1.48        1.32                                    15.15        9.54        17,208        2.38        2.28        (1.04     44   

C

    13.86        (0.14     1.48        1.34                                    15.20        9.67        65,692        2.18        2.18        (0.93     44   

I

    15.44        0.02        1.64        1.66                                    17.10        10.75        32,213        1.18        1.18        0.09        44   

R3

    15.76        (0.07     1.69        1.62                                    17.38        10.28        5,905        1.71        1.65        (0.39     44   

R4

    16.01        (0.02     1.71        1.69                                    17.70        10.56        9,241        1.39        1.35        (0.09     44   

R5

    16.21        0.04        1.73        1.77                                    17.98        10.92        1,403        1.09        1.05        0.21        44   

Y

    16.26        0.05        1.74        1.79                                    18.05        11.01        2,555        0.99        0.99        0.27        44   

For the Year Ended October 31, 2010(7)

  

                     

A

  $ 13.07      $      $ 2.14      $ 2.14      $      $      $      $      $ 15.21        16.37   $ 236,781        1.49     1.49     (0.03 )%      36

B

    11.98        (0.14     1.99        1.85                                    13.83        15.44        23,023        2.39        2.28        (0.84     36   

C

    11.99        (0.11     1.98        1.87                                    13.86        15.60        71,124        2.18        2.18        (0.72     36   

I

    13.23        0.04        2.17        2.21                                    15.44        16.70        14,176        1.22        1.22        0.24        36   

R3

    13.57        (0.02     2.21        2.19                                    15.76        16.14        3,549        1.70        1.70        (0.17     36   

R4

    13.74        0.02        2.25        2.27                                    16.01        16.52        7,939        1.37        1.37        0.11        36   

R5

    13.87        0.06        2.28        2.34                                    16.21        16.87        1,895        1.08        1.08        0.38        36   

Y

    13.90        0.08        2.28        2.36                                    16.26        16.98        2,294        0.97        0.97        0.50        36   

 

The accompanying notes are an integral part of these financial statements.

 

 

  172  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford MidCap Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   27.38      $   (0.03   $   1.57      $   1.54      $      $   (2.67   $   —      $   (2.67   $   26.25        6.38 %(4)    $   2,032,108        1.13 %(5)      1.13 %(5)      (0.25 )%(5)      17

B

    21.65        (0.11     1.19        1.08               (2.67            (2.67     20.06        5.91 (4)      27,932        2.03 (5)      2.03 (5)      (1.13 )(5)      17   

C

    22.18        (0.10     1.23        1.13               (2.67            (2.67     20.64        6.00 (4)      594,013        1.86 (5)      1.86 (5)      (0.98 )(5)      17   

I

    27.78               1.59        1.59               (2.67            (2.67     26.70        6.48 (4)      656,813        0.91 (5)      0.91 (5)      (0.03 )(5)      17   

R3

    30.02        (0.09     1.75        1.66               (2.67            (2.67     29.01        6.21 (4)      70,881        1.46 (5)      1.46 (5)      (0.59 )(5)      17   

R4

    30.61        (0.04     1.79        1.75               (2.67            (2.67     29.69        6.40 (4)      132,480        1.16 (5)      1.16 (5)      (0.30 )(5)      17   

R5

    30.96               1.81        1.81               (2.67            (2.67     30.10        6.53 (4)      144,778        0.86 (5)      0.86 (5)      (5)      17   

R6(6)

    31.11        (0.05     1.88        1.83               (2.67            (2.67     30.27        6.56 (4)      895        0.77 (5)      0.76 (5)      (0.36 )(5)      17   

Y

    31.10        0.02        1.81        1.83               (2.67            (2.67     30.26        6.57 (4)      1,092,142        0.76 (5)      0.76 (5)      0.14 (5)      17   

For the Year Ended October 31, 2014

  

                     

A

  $ 25.67      $ (0.10   $ 3.82      $ 3.72      $      $ (2.01   $      $ (2.01   $ 27.38        15.57   $ 1,891,075        1.15     1.15     (0.40 )%      34

B

    20.88        (0.27     3.05        2.78               (2.01            (2.01     21.65        14.56        29,446        2.05        2.05        (1.29     34   

C

    21.30        (0.24     3.13        2.89               (2.01            (2.01     22.18        14.81        544,154        1.88        1.88        (1.13     34   

I

    25.95        (0.04     3.88        3.84               (2.01            (2.01     27.78        15.89        550,720        0.90        0.90        (0.17     34   

R3

    28.03        (0.21     4.21        4.00               (2.01            (2.01     30.02        15.24        56,403        1.47        1.47        (0.72     34   

R4

    28.47        (0.12     4.27        4.15               (2.01            (2.01     30.61        15.55        94,232        1.16        1.16        (0.41     34   

R5

    28.69        (0.03     4.31        4.28               (2.01            (2.01     30.96        15.91        110,364        0.86        0.86        (0.11     34   

R6

                                                            31.11                                        

Y

    28.77        (0.01     4.35        4.34               (2.01            (2.01     31.10        16.08        1,078,695        0.76        0.76        (0.02     34   

For the Year Ended October 31, 2013

  

                     

A

  $ 20.44      $ (0.03   $ 6.56      $ 6.53      $      $ (1.30   $      $ (1.30   $ 25.67        34.17   $ 1,847,041        1.20     1.20     (0.14 )%      38

B

    17.00        (0.18     5.36        5.18               (1.30            (1.30     20.88        33.01        33,232        2.11        2.07        (1.00     38   

C

    17.29        (0.16     5.47        5.31               (1.30            (1.30     21.30        33.21        474,663        1.91        1.91        (0.85     38   

I

    20.65        0.02        6.63        6.65          (0.05     (1.30            (1.35     25.95        34.48        277,953        0.96        0.96        0.09        38   

R3

    22.25        (0.10     7.18        7.08               (1.30            (1.30     28.03        33.80        47,837        1.48        1.48        (0.43     38   

R4

    22.51        (0.03     7.29        7.26               (1.30            (1.30     28.47        34.24        77,603        1.17        1.17        (0.13     38   

R5

    22.69        0.04        7.33        7.37        (0.07     (1.30            (1.37     28.69        34.60        91,163        0.87        0.87        0.17        38   

Y

    22.75        0.07        7.34        7.41        (0.09     (1.30            (1.39     28.77        34.73        872,297        0.77        0.77        0.28        38   

For the Year Ended October 31, 2012

  

                     

A

  $ 20.67      $ 0.05      $ 2.22      $ 2.27      $      $ (2.50   $      $ (2.50   $ 20.44        13.47   $ 1,536,203        1.23     1.23     0.25     45

B

    17.77        (0.10     1.83        1.73               (2.50            (2.50     17.00        12.50        30,803        2.16        2.08        (0.62     45   

C

    18.01        (0.08     1.86        1.78               (2.50            (2.50     17.29        12.63        380,413        1.93        1.93        (0.45     45   

I

    20.85        0.09        2.25        2.34        (0.04     (2.50            (2.54     20.65        13.78        213,875        0.99        0.99        0.48        45   

R3

    22.32               2.43        2.43               (2.50            (2.50     22.25        13.16        37,776        1.49        1.49        (0.01     45   

R4

    22.49        0.06        2.46        2.52               (2.50            (2.50     22.51        13.50        57,799        1.18        1.18        0.29        45   

R5

    22.66        0.13        2.47        2.60        (0.07     (2.50            (2.57     22.69        13.85        66,039        0.88        0.88        0.59        45   

Y

    22.71        0.15        2.48        2.63        (0.09     (2.50            (2.59     22.75        13.98        642,084        0.78        0.78        0.70        45   

For the Year Ended October 31, 2011

  

                     

A

  $ 20.16      $ 0.02      $ 0.49      $ 0.51      $      $      $      $      $ 20.67        2.53   $ 1,754,028        1.21     1.21     0.09     70

B

    17.48        (0.14     0.43        0.29                                    17.77        1.66        44,266        2.06        2.06        (0.72     70   

C

    17.68        (0.12     0.45        0.33                                    18.01        1.87        422,515        1.91        1.91        (0.63     70   

I

    20.28        0.09        0.48        0.57                                    20.85        2.81        324,002        0.92        0.92        0.40        70   

R3

    21.82        (0.05     0.55        0.50                                    22.32        2.29        40,311        1.48        1.48        (0.23     70   

R4

    21.92        0.02        0.55        0.57                                    22.49        2.60        65,550        1.18        1.18        0.07        70   

R5

    22.02        0.09        0.55        0.64                                    22.66        2.91        73,192        0.87        0.87        0.38        70   

Y

    22.05        0.12        0.54        0.66                                    22.71        2.99        678,566        0.77        0.77        0.50        70   

For the Year Ended October 31, 2010

  

                     

A

  $ 16.20      $ (0.04   $ 4.00      $ 3.96      $      $      $      $      $ 20.16        24.44   $ 2,275,785        1.25     1.25     (0.24 )%      56

B

    14.16        (0.17     3.49        3.32                                    17.48        23.45        108,330        2.05        2.05        (1.03     56   

C

    14.30        (0.15     3.53        3.38                                    17.68        23.64        448,592        1.93        1.93        (0.92     56   

I

    16.25               4.03        4.03                                    20.28        24.80        541,255        0.96        0.96        0.01        56   

R3

    17.58        (0.11     4.35        4.24                                    21.82        24.12        22,038        1.49        1.49        (0.57     56   

R4

    17.60        (0.04     4.36        4.32                                    21.92        24.55        41,422        1.18        1.18        (0.23     56   

R5

    17.62        0.01        4.39        4.40                                    22.02        24.97        47,915        0.88        0.88        0.05        56   

Y

    17.63        0.05        4.37        4.42                                    22.05        25.07        556,046        0.78        0.78        0.23        56   

 

The accompanying notes are an integral part of these financial statements.

 

 

  173  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford MidCap Value Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 16.73      $      $ 0.85      $ 0.85      $ (0.02   $ (1.87   $      $ (1.89   $ 15.69        6.20 %(4)    $ 237,709        1.24 %(5)      1.24 %(5)      0.03 %(5)      16

B

    14.91        (0.06     0.73        0.67               (1.87            (1.87     13.71        5.69 (4)      1,874        2.27 (5)      2.10 (5)      (0.83 )(5)      16   

C

    14.84        (0.05     0.73        0.68               (1.87            (1.87     13.65        5.79 (4)      43,134        1.96 (5)      1.96 (5)      (0.69 )(5)      16   

I

    16.85        0.03        0.85        0.88        (0.08     (1.87            (1.95     15.78        6.34 (4)      34,831        0.94 (5)      0.94 (5)      0.33 (5)      16   

R3

    17.45        (0.02     0.88        0.86               (1.87            (1.87     16.44        5.97 (4)      9,153        1.52 (5)      1.52 (5)      (0.26 )(5)      16   

R4

    17.61               0.90        0.90        (0.04     (1.87            (1.91     16.60        6.16 (4)      12,273        1.21 (5)      1.21 (5)      0.06 (5)      16   

R5

    17.75        0.03        0.91        0.94        (0.08     (1.87            (1.95     16.74        6.37 (4)      7,615        0.92 (5)      0.92 (5)      0.35 (5)      16   

Y

    17.78        0.04        0.91        0.95        (0.09     (1.87            (1.96     16.77        6.41 (4)      165,428        0.81 (5)      0.81 (5)      0.46 (5)      16   

For the Year Ended October 31, 2014

  

                     

A

  $ 16.44      $ 0.03      $ 1.81      $ 1.84      $      $   (1.55   $   —      $   (1.55   $   16.73        12.32   $   222,876        1.27     1.27     0.19     43

B

    14.93        (0.09     1.62        1.53               (1.55            (1.55     14.91        11.41        2,156        2.28        2.10        (0.63     43   

C

    14.85        (0.08     1.62        1.54               (1.55            (1.55     14.84        11.56        41,382        1.99        1.99        (0.53     43   

I

    16.49        0.09        1.82        1.91               (1.55            (1.55     16.85        12.75        37,414        0.92        0.92        0.53        43   

R3

    17.12        (0.01     1.89        1.88               (1.55            (1.55     17.45        12.05        10,187        1.53        1.53        (0.08     43   

R4

    17.21        0.04        1.91        1.95               (1.55            (1.55     17.61        12.42        9,476        1.22        1.22        0.22        43   

R5

    17.29        0.09        1.92        2.01               (1.55            (1.55     17.75        12.73        2,851        0.93        0.93        0.52        43   

Y

    17.31        0.11        1.91        2.02               (1.55            (1.55     17.78        12.79        166,729        0.82        0.82        0.63        43   

For the Year Ended October 31, 2013

  

A

  $   12.58      $ 0.02      $ 3.97      $ 3.99      $ (0.13   $      $      $ (0.13   $ 16.44        32.01   $ 207,552        1.31     1.31     0.11     59

B

    11.40          (0.09       3.62        3.53                                    14.93        30.96        2,819        2.33        2.10        (0.68     59   

C

    11.38        (0.08     3.60        3.52        (0.05                   (0.05     14.85        31.07        38,067        2.01        2.01        (0.60     59   

I

    12.62        0.06        3.99        4.05        (0.18                   (0.18     16.49        32.49        18,791        0.96        0.96        0.43        59   

R3

    13.12        (0.02     4.15        4.13        (0.13                   (0.13     17.12        31.68        5,089        1.53        1.53        (0.12     59   

R4

    13.17        0.03        4.16        4.19        (0.15                   (0.15     17.21        32.11        4,903        1.22        1.22        0.18        59   

R5

    13.23        0.06        4.19        4.25        (0.19                   (0.19     17.29        32.46        1,309        0.93        0.93        0.38        59   

Y

    13.24        0.09        4.18        4.27        (0.20                   (0.20     17.31        32.64        150,335        0.82        0.82        0.60        59   

For the Year Ended October 31, 2012

  

                     

A

  $ 10.75      $ 0.08      $ 1.80      $ 1.88      $ (0.05   $      $      $ (0.05   $ 12.58        17.55   $ 159,104        1.38     1.35     0.67     59

B

    9.77        (0.02     1.65        1.63                                    11.40        16.88        2,813        2.38        2.10        (0.21     59   

C

    9.74               1.64        1.64                                    11.38        16.84        28,522        2.06        2.06        (0.05     59   

I

    10.79        0.12        1.81        1.93        (0.10                   (0.10     12.62        18.02        5,296        1.00        1.00        1.06        59   

R3

    11.23        0.06        1.88        1.94        (0.05                   (0.05     13.12        17.41        3,514        1.55        1.55        0.50        59   

R4

    11.28        0.10        1.88        1.98        (0.09                   (0.09     13.17        17.70        2,735        1.25        1.25        0.79        59   

R5

    11.31        0.14        1.88        2.02        (0.10                   (0.10     13.23        18.07        311        0.96        0.95        1.14        59   

Y

    11.31        0.15        1.89        2.04        (0.11                   (0.11     13.24        18.22        136,388        0.84        0.84        1.24        59   

For the Year Ended October 31, 2011

  

A

  $ 10.69      $ 0.01      $ 0.05      $ 0.06      $      $      $      $      $ 10.75        0.56   $ 147,222        1.38     1.35     0.05     54

B

    9.79        (0.07     0.05          (0.02                                 9.77        (0.20     8,100        2.32        2.10        (0.69     54   

C

    9.77        (0.07     0.04        (0.03                                 9.74        (0.31     28,939        2.09        2.09        (0.70     54   

I

    10.72        0.04        0.05        0.09          (0.02                   (0.02     10.79        0.81        3,459        1.04        1.04        0.34        54   

R3

    11.20        (0.03     0.06        0.03                                    11.23        0.27        1,584        1.60        1.55        (0.23     54   

R4

    11.21        (0.01     0.08        0.07                                    11.28        0.62        1,523        1.29        1.25        (0.05     54   

R5

    11.22        0.05        0.06        0.11        (0.02                   (0.02     11.31        0.96        136        0.99        0.95        0.43        54   

Y

    11.22        0.06        0.06        0.12        (0.03                   (0.03     11.31        1.01        109,944        0.88        0.88        0.51        54   

For the Year Ended October 31, 2010

  

                     

A

  $ 8.37      $      $ 2.33      $ 2.33      $ (0.01   $      $      $ (0.01   $ 10.69        27.83   $ 176,359        1.44     1.35     0.01     48

B

    7.72        (0.06     2.13        2.07                                    9.79        26.81        14,305        2.32        2.10        (0.70     48   

C

    7.70        (0.07     2.14        2.07                                    9.77        26.88        30,467        2.13        2.10        (0.74     48   

I

    9.71               1.01        1.01                                    10.72        10.40        254        0.95        0.95        0.06        48   

R3

    10.17        (0.02     1.05        1.03                                    11.20        10.13        110        1.60        1.55        (0.40     48   

R4

    10.17               1.04        1.04                                    11.21        10.23        110        1.30        1.25        (0.10     48   

R5

    10.17        0.01        1.04        1.05                                    11.22        10.32        111        1.00        0.96        0.20        48   

Y

    8.77        0.04        2.44        2.48        (0.03                   (0.03     11.22        28.39        96,621        0.90        0.90        0.39        48   

 

The accompanying notes are an integral part of these financial statements.

 

 

  174  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Small Company Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 24.83      $ (0.08   $ 0.71      $ 0.63      $   —      $ (4.09   $      $ (4.09   $ 21.37        3.51 %(4)    $ 372,856        1.34 %(5)      1.34 %(5)      (0.74 )%(5)      51

B

    20.40        (0.13     0.54        0.41               (4.09            (4.09     16.72        3.13 (4)      3,952        2.27 (5)      2.14 (5)      (1.53 )(5)      51   

C

    20.36        (0.12     0.53        0.41               (4.09            (4.09     16.68        3.14 (4)      39,511        2.02 (5)      2.02 (5)      (1.42 )(5)      51   

I

    25.51        (0.06     0.74        0.68               (4.09            (4.09     22.10        3.63 (4)      71,400        1.12 (5)      1.12 (5)      (0.52 )(5)      51   

R3

    26.39        (0.11     0.77        0.66               (4.09            (4.09     22.96        3.40 (4)      40,616        1.54 (5)      1.54 (5)      (0.95 )(5)      51   

R4

    27.21        (0.08     0.81        0.73               (4.09            (4.09     23.85        3.54 (4)      69,036        1.24 (5)      1.24 (5)      (0.64 )(5)      51   

R5

    27.95        (0.04     0.83        0.79               (4.09            (4.09     24.65        3.72 (4)      11,056        0.96 (5)      0.95 (5)      (0.34 )(5)      51   

R6(6)

    28.20        (0.03     0.92        0.89               (4.09            (4.09     25.00        4.05 (4)      10        0.84 (5)      0.84 (5)      (0.23 )(5)      51   

Y

    28.27        (0.03     0.84        0.81               (4.09            (4.09     24.99        3.75 (4)      350,323        0.84 (5)      0.84 (5)      (0.24 )(5)      51   

For the Year Ended October 31, 2014

  

                     

A

  $ 24.58      $ (0.24   $ 3.26      $ 3.02      $      $ (2.77   $      $ (2.77   $ 24.83        13.49   $ 355,056        1.34     1.34     (1.01 )%      92

B

    20.82        (0.36     2.71        2.35               (2.77            (2.77     20.40        12.61        4,730        2.29        2.15        (1.80     92   

C

    20.77        (0.34     2.70        2.36               (2.77            (2.77     20.36        12.70        38,351        2.05        2.05        (1.71     92   

I

    25.12        (0.19     3.35        3.16               (2.77            (2.77     25.51        13.78        60,425        1.10        1.10        (0.77     92   

R3

    26.00        (0.31     3.47        3.16               (2.77            (2.77     26.39        13.27        60,124        1.55        1.55        (1.21     92   

R4

    26.65        (0.24     3.57        3.33               (2.77            (2.77     27.21        13.62        66,353        1.25        1.25        (0.91     92   

R5

    27.23        (0.16     3.65        3.49               (2.77            (2.77     27.95        13.95        7,585        0.97        0.95        (0.61     92   

R6

                                                            28.20                                        

Y

    27.48        (0.14     3.70        3.56               (2.77            (2.77     28.27        14.08        337,933        0.85        0.85        (0.51     92   

For the Year Ended October 31, 2013

  

                     

A

  $ 19.52      $ (0.16   $ 6.56      $ 6.40      $      $ (1.34   $      $ (1.34   $ 24.58        35.44   $ 320,630        1.39     1.39     (0.73 )%      106

B

    16.87        (0.27     5.56        5.29               (1.34            (1.34     20.82        34.34        6,062        2.35        2.15        (1.47     106   

C

    16.82        (0.26     5.55        5.29               (1.34            (1.34     20.77        34.45        38,428        2.09        2.09        (1.43     106   

I

    19.87        (0.11     6.70        6.59               (1.34            (1.34     25.12        35.79        38,749        1.14        1.14        (0.52     106   

R3

    20.61        (0.20     6.93        6.73               (1.34            (1.34     26.00        35.15        57,652        1.56        1.55        (0.88     106   

R4

    21.03        (0.14     7.10        6.96               (1.34            (1.34     26.65        35.56        67,467        1.26        1.25        (0.59     106   

R5

    21.39        (0.06     7.24        7.18               (1.34            (1.34     27.23        36.02        8,321        0.99        0.95        (0.25     106   

Y

    21.56        (0.05     7.31        7.26               (1.34            (1.34     27.48        36.12        320,003        0.86        0.86        (0.20     106   

For the Year Ended October 31, 2012

  

                     

A

  $ 19.23      $ (0.18   $ 1.46      $ 1.28      $      $   (0.99   $   —      $   (0.99   $   19.52        7.44   $   268,501        1.41     1.40     (0.85 )%      124

B

    16.88        (0.35     1.33        0.98               (0.99            (0.99     16.87        6.65        5,972        2.37        2.15        (1.60     124   

C

    16.83        (0.29     1.27        0.98               (0.99            (0.99     16.82        6.67        32,182        2.12        2.12        (1.57     124   

I

    19.51        (0.11     1.46        1.35               (0.99            (0.99     19.87        7.70        24,366        1.14        1.14        (0.58     124   

R3

    20.27        (0.20     1.53        1.33               (0.99            (0.99     20.61        7.30        48,148        1.58        1.55        (0.99     124   

R4

    20.60        (0.13     1.55        1.42               (0.99            (0.99     21.03        7.63        56,217        1.27        1.25        (0.68     124   

R5

    20.88        (0.11     1.61        1.50               (0.99            (0.99     21.39        7.93        8,859        1.00        0.95        (0.41     124   

Y

    21.02        (0.06     1.59        1.53               (0.99            (0.99     21.56        8.02        243,219        0.87        0.87        (0.30     124   

For the Year Ended October 31, 2011

  

                     

A

  $ 17.48      $ (0.15   $ 1.90      $ 1.75      $      $      $      $      $ 19.23        10.01   $ 296,062        1.37     1.37     (0.77 )%      111

B

    15.46        (0.27     1.69        1.42                                    16.88        9.18        9,192        2.30        2.15        (1.55     111   

C

    15.41        (0.26     1.68        1.42                                    16.83        9.21        36,465        2.10        2.10        (1.50     111   

I

    17.68        (0.10     1.93        1.83                                    19.51        10.35        19,056        1.08        1.08        (0.49     111   

R3

    18.45        (0.20     2.02        1.82                                    20.27        9.86        46,392        1.57        1.55        (0.96     111   

R4

    18.70        (0.14     2.04        1.90                                    20.60        10.16        51,387        1.26        1.25        (0.66     111   

R5

    18.90        (0.08     2.06        1.98                                    20.88        10.48        9,867        0.99        0.95        (0.35     111   

Y

    19.01        (0.06     2.07        2.01                                    21.02        10.57        235,036        0.86        0.86        (0.26     111   

For the Year Ended October 31, 2010

  

                     

A

  $   13.90      $   (0.13   $   3.71      $   3.58      $      $      $      $      $ 17.48        25.76   $ 289,558        1.41     1.40     (0.80 )%      181

B

    12.39        (0.22     3.29        3.07                                    15.46        24.78        12,384        2.36        2.15        (1.54     181   

C

    12.34        (0.22     3.29        3.07                                    15.41        24.88        40,018        2.16        2.15        (1.55     181   

I

    14.03        (0.09     3.74        3.65                                    17.68        26.02        13,283        1.17        1.15        (0.54     181   

R3

    14.70        (0.16     3.91        3.75                                    18.45        25.51        35,873        1.59        1.57        (1.00     181   

R4

    14.85        (0.11     3.96        3.85                                    18.70        25.93        45,096        1.28        1.26        (0.67     181   

R5

    14.97        (0.07     4.00        3.93                                    18.90        26.25        11,706        1.02        1.02        (0.41     181   

Y

    15.03        (0.05     4.03        3.98                                    19.01        26.48        273,558        0.87        0.87        (0.28     181   

 

The accompanying notes are an integral part of these financial statements.

 

 

  175  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Small/Mid Cap Equity Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 13.89      $ 0.07      $ 0.46      $ 0.53      $ (0.08   $ (1.29   $      $ (1.37   $ 13.05        4.44 %(4)    $   56,716        1.36 %(5)      1.30 %(5)      1.05 %(5)      43

B

    13.12        0.02        0.44        0.46               (1.29            (1.29     12.29        4.09 (4)      2,425        2.26 (5)      2.05 (5)      0.30 (5)      43   

C

    12.96        0.02        0.43        0.45               (1.29            (1.29     12.12        4.07 (4)      14,013        2.11 (5)      2.05 (5)      0.30 (5)      43   

I(8)

    13.40                 (0.34       (0.34                                 13.06        (2.90 )(4)      97        0.93 (5)      0.93 (5)      (0.02 )(5)      43   

R3

    14.21        0.06        0.48        0.54          (0.06       (1.29       —          (1.35       13.40        4.39 (4)      735        1.66 (5)      1.50 (5)      0.85 (5)      43   

R4

    14.26        0.08        0.49        0.57        (0.11     (1.29            (1.40     13.43        4.55 (4)      534        1.34 (5)      1.20 (5)      1.16 (5)      43   

R5

    14.32        0.10        0.48        0.58        (0.13     (1.29            (1.42     13.48        4.68 (4)      230        1.03 (5)      0.90 (5)      1.44 (5)      43   

Y

    14.31        0.10        0.49        0.59        (0.14     (1.29            (1.43     13.47        4.73 (4)      1,329        0.93 (5)      0.85 (5)      1.50 (5)      43   

For the Year Ended October 31, 2014

  

                     

A

  $   14.77      $ 0.10      $ 1.11      $ 1.21      $ (0.14   $ (1.95   $      $ (2.09   $ 13.89        9.22   $ 54,722        1.41     1.30     0.75     116

B

    14.06               1.05        1.05        (0.04     (1.95            (1.99     13.12        8.39        3,119        2.32        2.05        0.01        116   

C

    13.94               1.03        1.03        (0.06     (1.95            (2.01     12.96        8.39        13,603        2.16        2.05               116   

I

                                                            13.40                                        

R3

    15.10        0.07        1.14        1.21        (0.15     (1.95            (2.10     14.21        8.99        587        1.70        1.50        0.53        116   

R4

    15.10        0.11        1.14        1.25        (0.14     (1.95            (2.09     14.26        9.31        516        1.37        1.20        0.81        116   

R5

    15.16        0.16        1.14        1.30        (0.19     (1.95            (2.14     14.32        9.62        204        1.05        0.90        1.14        116   

Y

    15.14        0.17        1.14        1.31        (0.19     (1.95            (2.14     14.31        9.75        247        0.96        0.85        1.20        116   

For the Year Ended October 31, 2013

  

A

  $ 11.21      $ 0.19      $ 3.50      $ 3.69      $ (0.13   $      $      $ (0.13   $ 14.77        33.23   $ 51,393        1.43     1.30     1.48     140

B

    10.68        0.09        3.34        3.43        (0.05                   (0.05     14.06        32.21        4,337        2.35        2.05        0.77        140   

C

    10.60        0.09        3.30        3.39        (0.05                   (0.05     13.94        32.12        12,315        2.18        2.05        0.73        140   

R3

    11.47        0.14        3.61        3.75        (0.12                   (0.12     15.10        32.93        598        1.68        1.50        1.05        140   

R4

    11.48        0.23        3.55        3.78        (0.16                   (0.16     15.10        33.25        172        1.34        1.20        1.75        140   

R5

    11.51        0.25        3.58        3.83        (0.18                   (0.18     15.16        33.71        169        1.04        0.90        1.87        140   

Y

    11.51        0.29        3.53        3.82        (0.19                   (0.19     15.14        33.59        224        0.93        0.85        2.33        140   

For the Year Ended October 31, 2012(7)

  

A

  $ 10.10      $ 0.08      $ 1.03      $ 1.11      $      $      $      $      $ 11.21        10.99   $ 41,266        1.44     1.30     0.69     121

B

    9.69          (0.01     1.00        0.99                                    10.68        10.22        4,391        2.38        2.05        (0.06     121   

C

    9.62        (0.01     0.99        0.98                                    10.60        10.19        9,624        2.21        2.05        (0.06     121   

R3

    10.35        0.05        1.07        1.12                                    11.47        10.82        144        1.65        1.50        0.52        121   

R4

    10.36        0.09        1.06        1.15        (0.03                   (0.03     11.48        11.11        262        1.35        1.20        0.90        121   

R5

    10.36        0.12        1.07        1.19        (0.04                   (0.04     11.51        11.48        127        1.03        0.90        1.11        121   

Y

    10.36        0.23        0.96        1.19        (0.04                   (0.04     11.51        11.49        20,243        0.90        0.85        1.01        121   

For the Year Ended October 31, 2011

  

A

  $ 9.37      $ 0.03      $ 0.73      $ 0.76      $ (0.03   $      $      $ (0.03   $ 10.10        8.09   $ 44,655        1.36     1.30     0.27     202

B

    9.04        (0.05     0.70        0.65                                    9.69        7.19        4,821        2.31        2.05        (0.47     202   

C

    8.97        (0.05     0.70        0.65                                    9.62        7.25        9,702        2.13        2.05        (0.48     202   

R3(12)

    9.13               1.22        1.22                                    10.35        13.36 (4)      113        1.61 (5)      1.50 (5)      (0.40 )(5)      202   

R4(12)

    9.13               1.23        1.23                                    10.36        13.47 (4)      113        1.31 (5)      1.20 (5)      (0.12 )(5)      202   

R5(12)

    9.13               1.23        1.23                                    10.36        13.47 (4)      114        1.01 (5)      0.90 (5)      0.17 (5)      202   

Y

    9.60        0.07        0.76        0.83        (0.07                   (0.07     10.36        8.61        88,130        0.87        0.85        0.68        202   

For the Year Ended October 31, 2010

  

A

  $ 7.49      $ 0.02      $ 1.86      $ 1.88      $      $      $      $      $ 9.37        25.10   $ 46,068        1.45     1.31     0.19     399 %(13) 

B

    7.27        (0.05     1.82        1.77                                    9.04        24.35        5,420        2.39        2.06        (0.55     399 (13) 

C

    7.21        (0.04     1.80        1.76                                    8.97        24.41        10,025        2.22        2.06        (0.56     399 (13) 

Y

    7.64        0.05        1.91        1.96                                    9.60        25.65        42,540        0.89        0.87        0.65        399 (13) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  176  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford SmallCap Growth Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   48.63      $   (0.03   $ 3.89      $ 3.86      $      $ (2.12   $      $ (2.12   $   50.37        8.26 %(4)    $   264,166        1.20 %(5)      1.20 %(5)      (0.14 )%(5)      42

B

    40.12        (0.20     3.17        2.97               (2.12            (2.12     40.97        7.77 (4)      2,160        2.20 (5)      2.06 (5)      (0.99 )(5)      42   

C

    39.77        (0.17     3.15        2.98               (2.12            (2.12     40.63        7.87 (4)      52,577        1.90 (5)      1.90 (5)      (0.84 )(5)      42   

I

    49.55        0.05        3.97        4.02               (2.12            (2.12     51.45        8.43 (4)      193,716        0.90 (5)      0.90 (5)      0.18 (5)      42   

R3

    48.74        (0.10     3.90        3.80               (2.12            (2.12     50.42        8.09 (4)      15,761        1.48 (5)      1.48 (5)      (0.42 )(5)      42   

R4

    49.86        (0.03     4.01        3.98               (2.12            (2.12     51.72        8.28 (4)      72,110        1.16 (5)      1.16 (5)      (0.11 )(5)      42   

R5

    51.13        0.06        4.10        4.16               (2.12            (2.12     53.17        8.43 (4)      103,046        0.86 (5)      0.86 (5)      0.21 (5)      42   

R6(6)

    51.80        0.08        3.83        3.91               (2.12            (2.12     53.59        7.86 (4)      11        0.76 (5)      0.76 (5)      0.33 (5)      42   

Y

    51.49        0.08        4.14        4.22               (2.12            (2.12     53.59        8.49 (4)      310,342        0.76 (5)      0.76 (5)      0.29 (5)      42   

For the Year Ended October 31, 2014

  

                     

A

  $ 47.96      $ (0.26   $ 4.36      $ 4.10      $      $ (3.43   $      $ (3.43   $ 48.63        9.02   $ 239,697        1.28     1.28     (0.55 )%      61

B

    40.45        (0.54     3.64        3.10               (3.43            (3.43     40.12        8.16        2,695        2.26        2.11        (1.36     61   

C

    40.08        (0.49     3.61        3.12               (3.43            (3.43     39.77        8.30        44,184        1.97        1.97        (1.24     61   

I

    48.67        (0.12     4.43        4.31               (3.43            (3.43     49.55        9.34        114,450        0.97        0.97        (0.25     61   

R3

    48.17        (0.38     4.38        4.00               (3.43            (3.43     48.74        8.76        8,744        1.53        1.53        (0.81     61   

R4

    49.06        (0.25     4.48        4.23               (3.43            (3.43     49.86        9.09        47,028        1.22        1.22        (0.52     61   

R5

    50.07        (0.11     4.60        4.49               (3.43            (3.43     51.13        9.45        39,856        0.91        0.91        (0.22     61   

Y

    50.36        (0.05     4.61        4.56                 (3.43       —          (3.43     51.49        9.54        213,384        0.81        0.81        (0.10     61   

For the Year Ended October 31, 2013

  

                     

A

  $ 34.72      $ (0.15   $   13.39      $   13.24      $   —      $      $      $      $ 47.96        38.13   $ 226,795        1.40     1.40     (0.37 )%      90

B

    29.50        (0.36     11.31        10.95                                    40.45        37.12        4,552        2.40        2.15        (1.05     90   

C

    29.21        (0.40     11.27        10.87                                    40.08        37.21        33,255        2.08        2.08        (1.13     90   

I

    35.10        (0.05     13.62        13.57                                    48.67        38.66        71,601        1.04        1.04        (0.13     90   

R3

    34.93        (0.26     13.50        13.24                                    48.17        37.90        8,280        1.59        1.59        (0.62     90   

R4

    35.47        (0.19     13.78        13.59                                    49.06        38.31        17,412        1.27        1.27        (0.44     90   

R5

    36.10        (0.10     14.07        13.97                                    50.07        38.70        3,579        0.97        0.97        (0.22     90   

Y

    36.27        0.03        14.06        14.09                                    50.36        38.85        121,003        0.87        0.87        0.07        90   

For the Year Ended October 31, 2012

  

                     

A

  $ 31.27      $ (0.22   $ 3.67      $ 3.45      $      $      $      $      $ 34.72        11.03   $ 154,415        1.48     1.40     (0.65 )%      73

B

    26.77        (0.40     3.13        2.73                                    29.50        10.20        4,747        2.44        2.15        (1.41     73   

C

    26.51        (0.40     3.10        2.70                                    29.21        10.18        13,343        2.17        2.15        (1.40     73   

I

    31.52        (0.11     3.69        3.58                                    35.10        11.36        20,730        1.11        1.11        (0.33     73   

R3

    31.53        (0.27     3.67        3.40                                    34.93        11.78        3,672        1.67        1.60        (0.80     73   

R4

    31.91        (0.19     3.75        3.56                                    35.47        11.16        4,053        1.32        1.30        (0.54     73   

R5

    32.38        (0.08     3.80        3.72                                    36.10        11.49        345        1.05        1.00        (0.24     73   

Y

    32.51        (0.06     3.82        3.76                                    36.27        11.57        41,745        0.89        0.89        (0.18     73   

For the Year Ended October 31, 2011

  

                     

A(11)

  $ 27.59      $ (0.29   $ 3.97      $ 3.68      $      $      $      $      $ 31.27        13.34   $ 154,303        1.48     1.40     (0.93 )%      70

B

    23.80        (0.40     3.37        2.97                                    26.77        12.48        7,018        2.39        2.15        (1.46     70   

C

    23.57        (0.40     3.34        2.94                                    26.51        12.47        12,285        2.18        2.15        (1.47     70   

I

    27.73        (0.14     3.93        3.79                                    31.52        13.67        9,312        1.10        1.10        (0.43     70   

R3

    27.87        (0.30     3.96        3.66                                    31.53        13.13        763        1.69        1.60        (0.93     70   

R4

    28.13        (0.20     3.98        3.78                                    31.91        13.44        3,059        1.30        1.30        (0.62     70   

R5

    28.46        (0.11     4.03        3.92                                    32.38        13.77        227        1.03        1.00        (0.33     70   

Y

    28.54        (0.07     4.04        3.97                                    32.51        13.91        134,508        0.89        0.89        (0.22     70   

For the Year Ended October 31, 2010

  

                     

A

  $ 20.45      $ (0.15 )(14)    $ 7.27      $ 7.14      $      $      $      $      $ 27.59        34.91 %(15)    $ 53,548        1.62     1.40     (0.64 )%      137

B

    17.78        (0.29 )(14)      6.29        6.02                                    23.80        33.86 (15)      8,398        2.59        2.15        (1.39     137   

C

    17.60        (0.29 )(14)      6.24        5.97                                    23.57        33.92 (15)      11,084        2.34        2.15        (1.39     137   

I

    20.50        (0.09 )(14)      7.30        7.23                                    27.73        35.27 (15)      5,384        1.23        1.15        (0.39     137   

R3

    20.71        (0.22 )(14)      7.35        7.16                                    27.87        34.57 (15)      367        1.77        1.63        (0.90     137   

R4

    20.84        (0.14 )(14)      7.40        7.29                                    28.13        34.98 (15)      2,831        1.38        1.33        (0.58     137   

R5

    21.02        (0.06 )(14)      7.47        7.44                                    28.46        35.39 (15)      132        1.09        1.05        (0.26     137   

Y

    21.06        (0.04 )(14)      7.49        7.48                                    28.54        35.52 (15)      93,908        0.95        0.95        (0.18     137   

 

The accompanying notes are an integral part of these financial statements.

 

 

  177  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Value Opportunities Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 20.45      $ 0.11      $ 0.84      $ 0.95      $ (0.13   $   (1.40   $   —      $   (1.53   $   19.87        5.26 %(4)    $   229,000        1.21 %(5)      1.21 %(5)      1.11 %(5)      29

B

    18.22        0.01        0.76        0.77               (1.40            (1.40     17.59        4.86 (4)      2,867        2.27 (5)      1.98 (5)      0.08 (5)      29   

C

    18.14        0.03        0.74        0.77        (0.04     (1.40            (1.44     17.47        4.88 (4)      29,890        1.93 (5)      1.92 (5)      0.36 (5)      29   

I

    20.25        0.13        0.85        0.98        (0.20     (1.40            (1.60     19.63        5.45 (4)      34,076        0.92 (5)      0.92 (5)      1.36 (5)      29   

R3

    20.62        0.08        0.86        0.94        (0.08     (1.40            (1.48     20.08        5.14 (4)      4,015        1.52 (5)      1.47 (5)      0.77 (5)      29   

R4

    20.82        0.11        0.88        0.99        (0.14     (1.40            (1.54     20.27        5.33 (4)      13,366        1.19 (5)      1.17 (5)      1.10 (5)      29   

R5

    20.95        0.14        0.87        1.01        (0.16     (1.40            (1.56     20.40        5.44 (4)      2,720        0.90 (5)      0.87 (5)      1.40 (5)      29   

Y

    21.03        0.15        0.87        1.02        (0.20     (1.40            (1.60     20.45        5.48 (4)      1,875        0.79 (5)      0.79 (5)      1.49 (5)      29   

For the Year Ended October 31, 2014

  

                     

A

  $ 18.31      $ 0.17      $ 2.05      $ 2.22      $ (0.08   $      $      $ (0.08   $ 20.45        12.18   $ 237,539        1.25     1.25     0.87     74 %(16) 

B

    16.36        0.03        1.83        1.86                                    18.22        11.37        3,928        2.27        1.97        0.19        74 (16) 

C

    16.29        0.02        1.83        1.85                                    18.14        11.36        31,729        1.95        1.95        0.12        74 (16) 

I

    18.12        0.23        2.03        2.26        (0.13                   (0.13     20.25        12.56        44,306        0.87        0.87        1.17        74 (16) 

R3

    18.50        0.13        2.05        2.18        (0.06                   (0.06     20.62        11.84        4,528        1.53        1.47        0.63        74 (16) 

R4

    18.64        0.18        2.09        2.27        (0.09                   (0.09     20.82        12.24        13,626        1.21        1.17        0.91        74 (16) 

R5

    18.76        0.24        2.10        2.34        (0.15                   (0.15     20.95        12.52        2,735        0.88        0.85        1.15        74 (16) 

Y

    18.82        0.21        2.16        2.37        (0.16                   (0.16     21.03        12.64        1,841        0.83        0.83        1.07        74 (16) 

For the Year Ended October 31, 2013

  

                     

A

  $ 14.02      $ 0.11      $ 4.40      $ 4.51      $ (0.22   $      $      $ (0.22   $ 18.31        32.53   $ 118,203        1.44     1.35     0.67     81

B

    12.54               3.93        3.93        (0.11                   (0.11     16.36        31.50        3,825        2.39        2.10        (0.03     81   

C

    12.49        (0.01     3.93        3.92        (0.12                   (0.12     16.29        31.59        11,059        2.13        2.10        (0.07     81   

I

    13.87        0.16        4.34        4.50        (0.25                   (0.25     18.12        32.93        7,908        1.07        1.06        0.95        81   

R3

    14.16        0.08        4.45        4.53        (0.19                   (0.19     18.50        32.31        1,480        1.68        1.55        0.49        81   

R4

    14.27        0.13        4.47        4.60        (0.23                   (0.23     18.64        32.62        7,271        1.32        1.25        0.78        81   

R5

    14.36        0.18        4.50        4.68        (0.28                   (0.28     18.76        33.06        1,909        1.02        0.95        1.08        81   

Y

    14.41        0.19        4.50        4.69        (0.28                   (0.28     18.82        33.06        1,149        0.91        0.90        1.17        81   

For the Year Ended October 31, 2012

  

                     

A

  $ 12.68      $ 0.19      $ 1.27      $ 1.46      $ (0.12   $      $      $ (0.12   $ 14.02        11.60   $ 86,261        1.50     1.35     1.44     56

B

    11.33        0.08        1.15        1.23        (0.02                   (0.02     12.54        10.85        4,388        2.44        2.10        0.65        56   

C

    11.31        0.08        1.13        1.21        (0.03                   (0.03     12.49        10.74        8,880        2.17        2.10        0.67        56   

I

    12.57        0.22        1.25        1.47        (0.17                   (0.17     13.87        11.87        3,995        1.11        1.09        1.70        56   

R3

    12.81        0.18        1.27        1.45        (0.10                   (0.10     14.16        11.38        1,443        1.70        1.55        1.31        56   

R4

    12.90        0.21        1.30        1.51        (0.14                   (0.14     14.27        11.81        6,015        1.33        1.25        1.55        56   

R5

    12.99        0.31        1.24        1.55        (0.18                   (0.18     14.36        12.08        1,296        1.05        0.95        2.25        56   

Y

    13.05        0.24        1.30        1.54        (0.18                   (0.18     14.41        12.00        1,076        0.92        0.90        1.77        56   

For the Year Ended October 31, 2011(7)

  

                     

A(11)

  $   12.15      $ 0.09      $ 0.45      $ 0.54      $ (0.01   $      $      $ (0.01   $ 12.68        4.41   $ 86,456        1.46     1.35     0.81     70

B

    10.94          (0.02       0.41          0.39                                    11.33        3.56        5,838        2.39        2.10        (0.10     70   

C

    10.91        (0.01     0.41        0.40                                    11.31        3.67        10,227        2.15        2.10        (0.09     70   

I

    12.04        0.14        0.44        0.58          (0.05                   (0.05     12.57        4.80        2,535        1.03        1.01        1.06        70   

R3

    12.30        0.07        0.44        0.51                                    12.81        4.15        934        1.68        1.55        0.45        70   

R4

    12.37        0.10        0.45        0.55        (0.02                   (0.02     12.90        4.47        5,865        1.31        1.25        0.75        70   

R5

    12.45        0.13        0.47        0.60        (0.06                   (0.06     12.99        4.81        221        1.05        0.95        1.04        70   

Y

    12.51        0.14        0.47        0.61        (0.07                   (0.07     13.05        4.82        34,210        0.91        0.90        1.08        70   

For the Year Ended October 31, 2010

  

                     

A

  $ 10.19      $ 0.04      $ 1.97      $ 2.01      $ (0.05   $      $      $ (0.05   $ 12.15        19.78   $ 69,397        1.46     1.35     0.34     87

B

    9.21        (0.04     1.78        1.74        (0.01                   (0.01     10.94        18.89        7,069        2.42        2.10        (0.40     87   

C

    9.18        (0.04     1.77        1.73                                    10.91        18.85        10,954        2.18        2.10        (0.41     87   

I

    10.09        0.07        1.94        2.01        (0.06                   (0.06     12.04        20.00        1,494        1.05        1.05        0.64        87   

R3

    10.30        0.01        2.00        2.01        (0.01                   (0.01     12.30        19.56        1,021        1.67        1.58        0.10        87   

R4

    10.37        0.05        2.00        2.05        (0.05                   (0.05     12.37        19.79        5,147        1.31        1.28        0.39        87   

R5

    10.43        0.07        2.03        2.10        (0.08                   (0.08     12.45        20.17        154        1.07        0.98        0.65        87   

Y

    10.47        0.08        2.04        2.12        (0.08                   (0.08     12.51        20.28        29,098        0.91        0.91        0.73        87   

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.

 

The accompanying notes are an integral part of these financial statements.

 

 

  178  

 


Hartford Funds – Domestic Equity Funds

Financial Highlights – (continued)

 

 

 

(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable.
(4)  Not annualized.
(5)  Annualized.
(6)  Commenced operations on November 7, 2014.
(7)  Net investment income (loss) per share amounts have been calculated using the SEC method.
(8)  Commenced operations on March 31, 2015.
(9)  During the year ended October 31, 2014, the Fund incurred $415.5 million in sales of securities held associated with the transition of assets from The Hartford Growth Fund, which merged into the Fund on April 7, 2014. These sales are excluded from the portfolio turnover rate calculation
(10)  During the year ended October 31, 2013, the Fund incurred $2.8 million in sales of securities held associated with the transition of assets from The Hartford Fundamental Growth Fund, which merged into the Fund on February 22, 2013. These sales are excluded from the portfolio turnover rate calculation.
(11)  Class L was merged into Class A on August 5, 2011.
(12)  Commenced operations on September 30, 2011.
(13)  During the year ended October 31, 2010, the Fund incurred $45.6 million in purchases associated with the transition of assets from The Hartford Select MidCap Value Fund, which merged into the Fund on February 19, 2010. These purchases are excluded from the portfolio turnover calculation.
(14)  The impact of the Payment from Affiliate per share was $0.02 for Class A, Class B, Class C and Class I and $0.03 for Class R3, Class R4, Class R5 and Class Y.
(15)  Total return without the inclusion of the Payments from (to) Affiliate, can be found in Expenses in the accompanying Notes to Financial Statements.
(16)  During the year ended October 31, 2014, the Fund incurred $121.7 million in sales of securities held associated with the transition of assets from The Hartford Value Fund, which merged into the Fund on April 7, 2014. These sales are excluded from the portfolio turnover rate calculation.

 

The accompanying notes are an integral part of these financial statements.

 

 

179

 


Hartford Funds – Domestic Equity Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by The Board of Directors of the Companies (the “Directors”). Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

180

 


Hartford Funds – Domestic Equity Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

181

 


Hartford Funds – Domestic Equity Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds’ Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

182

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

The Hartford Capital Appreciation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,056.50    $ 5.46    $ 1,000.00    $ 1,019.49    $ 5.36      1.07   181      365   

Class B

$ 1,000.00    $ 1,051.90    $ 9.92    $ 1,000.00    $ 1,015.13    $ 9.74      1.95   181      365   

Class C

$ 1,000.00    $ 1,053.10    $ 9.16    $ 1,000.00    $ 1,015.87    $ 9.00      1.80   181      365   

Class I

$ 1,000.00    $ 1,057.80    $ 4.08    $ 1,000.00    $ 1,020.83    $ 4.01      0.80   181      365   

Class R3

$ 1,000.00    $ 1,054.60    $ 7.13    $ 1,000.00    $ 1,017.85    $ 7.00      1.40   181      365   

Class R4

$ 1,000.00    $ 1,056.40    $ 5.56    $ 1,000.00    $ 1,019.39    $ 5.46      1.09   181      365   

Class R5

$ 1,000.00    $ 1,058.00    $ 4.03    $ 1,000.00    $ 1,020.88    $ 3.96      0.79   181      365   

Class R6(1)

$ 1,000.00    $ 1,054.70    $ 3.44    $ 1,000.00    $ 1,020.22    $ 3.38      0.71   172      365   

Class Y

$ 1,000.00    $ 1,058.40    $ 3.52    $ 1,000.00    $ 1,021.37    $ 3.46      0.69   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

183

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

Hartford Core Equity Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,072.50    $ 5.60    $ 1,000.00    $ 1,019.39    $ 5.46      1.09   181      365   

Class B

$ 1,000.00    $ 1,068.70    $ 9.80    $ 1,000.00    $ 1,015.32    $ 9.54      1.91   181      365   

Class C

$ 1,000.00    $ 1,068.90    $ 9.23    $ 1,000.00    $ 1,015.87    $ 9.00      1.80   181      365   

Class I(1)

$ 1,000.00    $ 991.50    $ 0.44    $ 1,000.00    $ 1,003.67    $ 0.44      0.54   30      365   

Class R3

$ 1,000.00    $ 1,071.20    $ 6.93    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,073.20    $ 5.19    $ 1,000.00    $ 1,019.79    $ 5.06      1.01   181      365   

Class R5

$ 1,000.00    $ 1,074.30    $ 2.78    $ 1,000.00    $ 1,022.12    $ 2.71      0.54   181      365   

Class R6(1)

$ 1,000.00    $ 991.20    $ 0.37    $ 1,000.00    $ 1,003.74    $ 0.37      0.45   30      365   

Class Y

$ 1,000.00    $ 1,075.00    $ 3.29    $ 1,000.00    $ 1,021.62    $ 3.21      0.64   181      365   

 

(1)  Commenced operations on March 31, 2015.

The Hartford Dividend and Growth Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,038.80    $ 5.11    $ 1,000.00    $ 1,019.79    $ 5.06      1.01   181      365   

Class B

$ 1,000.00    $ 1,034.10    $ 9.78    $ 1,000.00    $ 1,015.17    $ 9.69      1.94   181      365   

Class C

$ 1,000.00    $ 1,035.00    $ 8.83    $ 1,000.00    $ 1,016.12    $ 8.75      1.75   181      365   

Class I

$ 1,000.00    $ 1,040.00    $ 4.10    $ 1,000.00    $ 1,020.78    $ 4.06      0.81   181      365   

Class R3

$ 1,000.00    $ 1,037.10    $ 6.82    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,038.90    $ 5.26    $ 1,000.00    $ 1,019.64    $ 5.21      1.04   181      365   

Class R5

$ 1,000.00    $ 1,040.30    $ 3.74    $ 1,000.00    $ 1,021.13    $ 3.71      0.74   181      365   

Class R6(1)

$ 1,000.00    $ 1,029.50    $ 3.04    $ 1,000.00    $ 1,020.43    $ 3.03      0.64   171      365   

Class Y

$ 1,000.00    $ 1,040.70    $ 3.24    $ 1,000.00    $ 1,021.62    $ 3.21      0.64   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

184

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

The Hartford Equity Income Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,035.30    $ 5.15    $ 1,000.00    $ 1,019.74    $ 5.11      1.02   181      365   

Class B

$ 1,000.00    $ 1,034.50    $ 5.85    $ 1,000.00    $ 1,019.04    $ 5.81      1.16   181      365   

Class C

$ 1,000.00    $ 1,031.90    $ 8.77    $ 1,000.00    $ 1,016.17    $ 8.70      1.74   181      365   

Class I

$ 1,000.00    $ 1,036.70    $ 3.89    $ 1,000.00    $ 1,020.98    $ 3.86      0.77   181      365   

Class R3

$ 1,000.00    $ 1,033.60    $ 6.86    $ 1,000.00    $ 1,018.05    $ 6.81      1.36   181      365   

Class R4

$ 1,000.00    $ 1,035.60    $ 5.35    $ 1,000.00    $ 1,019.54    $ 5.31      1.06   181      365   

Class R5

$ 1,000.00    $ 1,037.00    $ 3.84    $ 1,000.00    $ 1,021.03    $ 3.81      0.76   181      365   

Class R6(1)

$ 1,000.00    $ 1,026.20    $ 3.25    $ 1,000.00    $ 1,020.36    $ 3.24      0.68   172      365   

Class Y

$ 1,000.00    $ 1,036.80    $ 3.33    $ 1,000.00    $ 1,021.52    $ 3.31      0.66   181      365   

 

(1)  Commenced operations on November 7, 2014.

The Hartford Growth Opportunities Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,107.60    $ 5.85    $ 1,000.00    $ 1,019.24    $ 5.61      1.12   181      365   

Class B

$ 1,000.00    $ 1,102.60    $ 10.58    $ 1,000.00    $ 1,014.73    $ 10.14      2.03   181      365   

Class C

$ 1,000.00    $ 1,103.90    $ 9.65    $ 1,000.00    $ 1,015.62    $ 9.25      1.85   181      365   

Class I

$ 1,000.00    $ 1,109.00    $ 4.71    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

Class R3

$ 1,000.00    $ 1,105.90    $ 7.57    $ 1,000.00    $ 1,017.60    $ 7.25      1.45   181      365   

Class R4

$ 1,000.00    $ 1,107.40    $ 5.96    $ 1,000.00    $ 1,019.14    $ 5.71      1.14   181      365   

Class R5

$ 1,000.00    $ 1,100.90    $ 4.38    $ 1,000.00    $ 1,020.63    $ 4.21      0.84   181      365   

Class R6(1)

$ 1,000.00    $ 1,100.50    $ 3.71    $ 1,000.00    $ 1,020.03    $ 3.57      0.75   172      365   

Class Y

$ 1,000.00    $ 1,109.60    $ 3.87    $ 1,000.00    $ 1,021.13    $ 3.71      0.74   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

185

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

The Hartford Healthcare Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,118.40    $ 6.67    $ 1,000.00    $ 1,018.50    $ 6.36      1.27   181      365   

Class B

$ 1,000.00    $ 1,113.90    $ 11.27    $ 1,000.00    $ 1,014.13    $ 10.74      2.15   181      365   

Class C

$ 1,000.00    $ 1,114.60    $ 10.54    $ 1,000.00    $ 1,014.83    $ 10.04      2.01   181      365   

Class I

$ 1,000.00    $ 1,120.00    $ 5.31    $ 1,000.00    $ 1,019.79    $ 5.06      1.01   181      365   

Class R3

$ 1,000.00    $ 1,116.80    $ 8.45    $ 1,000.00    $ 1,016.81    $ 8.05      1.61   181      365   

Class R4

$ 1,000.00    $ 1,118.40    $ 6.88    $ 1,000.00    $ 1,018.30    $ 6.56      1.31   181      365   

Class R5

$ 1,000.00    $ 1,120.10    $ 5.36    $ 1,000.00    $ 1,019.74    $ 5.11      1.02   181      365   

Class Y

$ 1,000.00    $ 1,120.40    $ 4.78    $ 1,000.00    $ 1,020.28    $ 4.56      0.91   181      365   

The Hartford MidCap Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,063.80    $ 5.78    $ 1,000.00    $ 1,019.19    $ 5.66      1.13   181      365   

Class B

$ 1,000.00    $ 1,059.10    $ 10.36    $ 1,000.00    $ 1,014.73    $ 10.14      2.03   181      365   

Class C

$ 1,000.00    $ 1,060.00    $ 9.50    $ 1,000.00    $ 1,015.57    $ 9.30      1.86   181      365   

Class I

$ 1,000.00    $ 1,064.80    $ 4.66    $ 1,000.00    $ 1,020.28    $ 4.56      0.91   181      365   

Class R3

$ 1,000.00    $ 1,062.10    $ 7.46    $ 1,000.00    $ 1,017.56    $ 7.30      1.46   181      365   

Class R4

$ 1,000.00    $ 1,064.00    $ 5.94    $ 1,000.00    $ 1,019.04    $ 5.81      1.16   181      365   

Class R5

$ 1,000.00    $ 1,065.30    $ 4.40    $ 1,000.00    $ 1,020.53    $ 4.31      0.86   181      365   

Class R6(1)

$ 1,000.00    $ 1,065.60    $ 3.70    $ 1,000.00    $ 1,019.98    $ 3.62      0.76   172      365   

Class Y

$ 1,000.00    $ 1,065.70    $ 3.89    $ 1,000.00    $ 1,021.03    $ 3.81      0.76   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

186

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

The Hartford MidCap Value Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,062.00    $ 6.34    $ 1,000.00    $ 1,018.65    $ 6.21      1.24   181      365   

Class B

$ 1,000.00    $ 1,056.90    $ 10.71    $ 1,000.00    $ 1,014.38    $ 10.49      2.10   181      365   

Class C

$ 1,000.00    $ 1,057.90    $ 10.00    $ 1,000.00    $ 1,015.08    $ 9.79      1.96   181      365   

Class I

$ 1,000.00    $ 1,063.40    $ 4.81    $ 1,000.00    $ 1,020.13    $ 4.71      0.94   181      365   

Class R3

$ 1,000.00    $ 1,059.70    $ 7.76    $ 1,000.00    $ 1,017.26    $ 7.60      1.52   181      365   

Class R4

$ 1,000.00    $ 1,061.60    $ 6.19    $ 1,000.00    $ 1,018.79    $ 6.06      1.21   181      365   

Class R5

$ 1,000.00    $ 1,063.70    $ 4.71    $ 1,000.00    $ 1,020.23    $ 4.61      0.92   181      365   

Class Y

$ 1,000.00    $ 1,064.10    $ 4.15    $ 1,000.00    $ 1,020.78    $ 4.06      0.81   181      365   

The Hartford Small Company Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,035.10    $ 6.76    $ 1,000.00    $ 1,018.15    $ 6.71      1.34   181      365   

Class B

$ 1,000.00    $ 1,031.30    $ 10.78    $ 1,000.00    $ 1,014.18    $ 10.69      2.14   181      365   

Class C

$ 1,000.00    $ 1,031.40    $ 10.17    $ 1,000.00    $ 1,014.78    $ 10.09      2.02   181      365   

Class I

$ 1,000.00    $ 1,036.30    $ 5.65    $ 1,000.00    $ 1,019.24    $ 5.61      1.12   181      365   

Class R3

$ 1,000.00    $ 1,034.00    $ 7.77    $ 1,000.00    $ 1,017.16    $ 7.70      1.54   181      365   

Class R4

$ 1,000.00    $ 1,035.40    $ 6.26    $ 1,000.00    $ 1,018.65    $ 6.21      1.24   181      365   

Class R5

$ 1,000.00    $ 1,037.20    $ 4.80    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class R6(1)

$ 1,000.00    $ 1,040.50    $ 4.04    $ 1,000.00    $ 1,019.60    $ 4.00      0.84   172      365   

Class Y

$ 1,000.00    $ 1,037.50    $ 4.24    $ 1,000.00    $ 1,020.63    $ 4.21      0.84   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

187

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

The Hartford Small/Mid Cap Equity Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,044.40    $ 6.59    $ 1,000.00    $ 1,018.35    $ 6.51      1.30   181      365   

Class B

$ 1,000.00    $ 1,040.90    $ 10.37    $ 1,000.00    $ 1,014.63    $ 10.24      2.05   181      365   

Class C

$ 1,000.00    $ 1,040.70    $ 10.37    $ 1,000.00    $ 1,014.63    $ 10.24      2.05   181      365   

Class I(1)

$ 1,000.00    $ 971.00    $ 0.75    $ 1,000.00    $ 1,003.35    $ 0.77      0.93   30      365   

Class R3

$ 1,000.00    $ 1,043.90    $ 7.60    $ 1,000.00    $ 1,017.36    $ 7.50      1.50   181      365   

Class R4

$ 1,000.00    $ 1,045.50    $ 6.09    $ 1,000.00    $ 1,018.84    $ 6.01      1.20   181      365   

Class R5

$ 1,000.00    $ 1,046.80    $ 4.57    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

Class Y

$ 1,000.00    $ 1,047.30    $ 4.31    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

 

(1)  Commenced operations on March 31, 2015.

The Hartford SmallCap Growth Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,082.60    $ 6.20    $ 1,000.00    $ 1,018.84    $ 6.01      1.20   181      365   

Class B

$ 1,000.00    $ 1,077.70    $ 10.61    $ 1,000.00    $ 1,014.58    $ 10.29      2.06   181      365   

Class C

$ 1,000.00    $ 1,078.70    $ 9.79    $ 1,000.00    $ 1,015.37    $ 9.49      1.90   181      365   

Class I

$ 1,000.00    $ 1,084.30    $ 4.65    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

Class R3

$ 1,000.00    $ 1,080.90    $ 7.64    $ 1,000.00    $ 1,017.46    $ 7.40      1.48   181      365   

Class R4

$ 1,000.00    $ 1,082.80    $ 5.99    $ 1,000.00    $ 1,019.04    $ 5.81      1.16   181      365   

Class R5

$ 1,000.00    $ 1,084.30    $ 4.44    $ 1,000.00    $ 1,020.53    $ 4.31      0.86   181      365   

Class R6(1)

$ 1,000.00    $ 1,078.60    $ 3.72    $ 1,000.00    $ 1,019.98    $ 3.62      0.76   172      365   

Class Y

$ 1,000.00    $ 1,084.90    $ 3.93    $ 1,000.00    $ 1,021.03    $ 3.81      0.76   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

188

 


Hartford Funds – Domestic Equity Funds

Expense Examples (Unaudited) – (continued)

 

 

 

The Hartford Value Opportunities Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,052.60    $ 6.16    $ 1,000.00    $ 1,018.79    $ 6.06      1.21   181      365   

Class B

$ 1,000.00    $ 1,048.60    $ 10.06    $ 1,000.00    $ 1,014.98    $ 9.89      1.98   181      365   

Class C

$ 1,000.00    $ 1,048.80    $ 9.75    $ 1,000.00    $ 1,015.27    $ 9.59      1.92   181      365   

Class I

$ 1,000.00    $ 1,054.50    $ 4.69    $ 1,000.00    $ 1,020.23    $ 4.61      0.92   181      365   

Class R3

$ 1,000.00    $ 1,051.40    $ 7.48    $ 1,000.00    $ 1,017.51    $ 7.35      1.47   181      365   

Class R4

$ 1,000.00    $ 1,053.30    $ 5.96    $ 1,000.00    $ 1,018.99    $ 5.86      1.17   181      365   

Class R5

$ 1,000.00    $ 1,054.40    $ 4.43    $ 1,000.00    $ 1,020.48    $ 4.36      0.87   181      365   

Class Y

$ 1,000.00    $ 1,054.80    $ 4.02    $ 1,000.00    $ 1,020.88    $ 3.96      0.79   181      365   

 

 

189

 


Hartford Funds – Domestic Equity Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: (All Funds except Dividend and Growth Fund, Equity Income Fund, Healthcare Fund, MidCap Fund, MidCap Value Fund and Value Opportunities Fund) Actively trading investments may result in higher costs and higher taxable income.

Asset Allocation Strategy Risk: (Capital Appreciation Fund only) The portfolio managers’ asset allocation strategy may not always work as intended, and asset allocation does not guarantee better performance or reduce the risk of investment loss.

Dividend Paying Security Investment Risk: (Dividend and Growth Fund and Equity Income Fund only) Dividends are not guaranteed and are subject to change. Dividend paying securities as a group can fall out of favor with the market, causing a Fund to underperform.

Foreign Investment Risk: Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions.

Foreign Investment and Emerging Markets Risk: Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets.

Growth Investing Risk: (Growth Opportunities Fund, Small Company Fund and SmallCap Growth Fund only) Growth investments can be volatile, and may fail to increase earnings or grow as quickly as anticipated. Growth-style investing falls in and out of favor, which may result in periods of underperformance.

Health Sector Risk: (Healthcare Fund only) Risks of focusing investments on the health care sector include regulatory and legal developments, patent considerations, intense competitive pressures, rapid technological changes and potential product obsolescence, and liquidity risk.

Market, Selection and Strategy Risk: A Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, a Fund could underperform its peers or lose money. There is no guarantee a Fund will achieve its stated objective.

Mid-Cap Stock Risk: (Capital Appreciation Fund, Growth Opportunities Fund, MidCap Fund and MidCap Value Fund only) Mid-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Quantitative Analysis Risk: (Core Equity Fund and Small/Mid Cap Fund only) Certain Funds use quantitative analysis in its securities selection; securities selected by this method may perform differently from the broader stock market.

Small-Cap Stock Risk: (Small Company Fund and SmallCap Growth Fund) Small-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Small/Mid-Cap Stock Risk: (Healthcare Fund, Small/Mid Cap Equity Fund and Value Opportunities Fund only) Small- and mid-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Value Investing Risk: (Equity Income Fund, MidCap Value Fund and Value Opportunities Fund only) Value investments are considered to be undervalued, but they may never attain their potential value. Value-style investing falls in and out of favor, which may result in periods of underperformance.

 

 

190

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-DE15     6/15    117962    Printed in U.S.A.

hartfordfunds.com


LOGO


LOGO

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

 

 

LOGO

James Davey

President

Hartford Funds

 

1 The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


International/Global Equity Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

Hartford Emerging Markets Equity Fund(1)

  26   

Hartford Global Capital Appreciation Fund

  33   

Hartford Global Equity Income Fund(2)

  45   

Hartford International Capital Appreciation Fund

  51   

The Hartford International Growth Fund

  61   

The Hartford International Opportunities Fund

  66   

The Hartford International Small Company Fund

  71   

The Hartford International Value Fund

  76   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  84   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  88   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  90   

Notes to Financial Statements (Unaudited)

  94   

Financial Highlights (Unaudited)

  129   

Directors and Officers (Unaudited)

  138   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  140   

Quarterly Portfolio Holdings Information (Unaudited)

  140   

Expense Examples (Unaudited)

  141   

Main Risks (Unaudited)

  145   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of that Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.

 

(1)  Prior to May 29, 2015, Hartford Emerging Markets Equity Fund was known as The Hartford Emerging Markets Research Fund.
(2)  Prior to May 30, 2014, Hartford Global Equity Income Fund was known as The Hartford Global Research Fund.


Hartford Emerging Markets Equity Fund* inception 05/31/2011

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Emerging Markets Equity A3

     5.31%         6.91%         -0.72%   

Emerging Markets Equity A4

     -0.49%         1.03%         -2.15%   

Emerging Markets Equity C3

     4.88%         6.07%         -1.45%   

Emerging Markets Equity C4

     3.92%         5.09%         -1.45%   

Emerging Markets Equity I3

     5.52%         7.36%         -0.35%   

Emerging Markets Equity R33

     5.22%         6.71%         -0.96%   

Emerging Markets Equity R43

     5.41%         7.01%         -0.67%   

Emerging Markets Equity R53

     5.48%         7.32%         -0.38%   

Emerging Markets Equity Y3

     5.55%         7.39%         -0.31%   

MSCI Emerging Markets Index

     4.04%         8.17%         0.01%   

 

1  Not Annualized
2  Inception: 05/31/2011
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

* Effective May 29, 2015, The Hartford Emerging Markets Research Fund changed its name to Hartford Emerging Markets Equity Fund.

 

 

 

  2  

 


Hartford Emerging Markets Equity Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Emerging Markets Equity Class A

     1.75%         1.86%   

Emerging Markets Equity Class C

     2.50%         2.50%   

Emerging Markets Equity Class I

     1.37%         1.37%   

Emerging Markets Equity Class R3

     1.95%         2.05%   

Emerging Markets Equity Class R4

     1.65%         1.75%   

Emerging Markets Equity Class R5

     1.35%         1.45%   

Emerging Markets Equity Class Y

     1.30%         1.34%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015, as supplemented May 29, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

The Fund filed an updated prospectus, dated May 29, 2015, with the U.S. Securities and Exchange Commission that became effective on that date. However, the information in this semiannual report is as of April 30, 2015 and does not reflect any changes made to the total annual fund operating expense table in the May 29, 2015 prospectus. The net expense ratios shown in the May 29, 2015 prospectus are 1.75%, 2.40%, 1.27%, 1.95%, 1.65%, 1.35% and 1.24% for Class A, Class C, Class I, Class R3, Class R4, Class R5 and Class Y, respectively, and reflect contractual expense reimbursements in place until February 29, 2016. The gross expense ratios shown in the May 29, 2015 prospectus are 1.76%, 2.40%, 1.27%, 1.95%, 1.65%, 1.35% and 1.24% for Class A, Class C, Class I, Class R3, Class R4, Class R5 and Class Y, respectively.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Cheryl M. Duckworth, CFA

Managing Director and Associate Director, Global Industry Research

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Emerging Markets Equity Fund returned 5.31%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the MSCI Emerging Markets Index, which returned 4.04% for the same period. The Fund also outperformed the 0.21% average return of the Lipper Emerging Markets Equity Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports,

and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Five of ten sectors of the MSCI Emerging Markets Index rose during the period. Information Technology (+10%), Financials (+8%) and Industrials (+8%) rose the most, while Energy (-5%), Utilities (-2%), and Consumer Staples (-2%) underperformed the most relative to the MSCI Emerging Markets Index.

 

 

Effective May 7, 2015, David J. Elliott serves as the Fund’s Portfolio Manager and Ms. Duckworth is no longer a portfolio manager for the Fund.

 

 

  3  

 


Hartford Emerging Markets Equity Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Security selection drove outperformance relative to the MSCI Emerging Markets Index during the period. Strong selection within Materials and Information Technology more than offset weaker selection within the Financials and Telecommunications sectors. Sector allocation, a result of our bottom-up security selection process, detracted from performance relative to the MSCI Emerging Markets Index. Overweights in the Materials and Energy sectors and an underweight in Industrials negatively impacted results over the period. A modest cash position also detracted in an uptrending market. From a country perspective, positive security selection in Taiwan and India contributed to relative results while selection in China detracted from returns.

Fosun International (Materials), Sberbank (Financials), and Discovery Limited (Financials) were top relative contributors during the period. Chinese conglomerate Fosun International performed well as the market viewed its long term migration to a more asset-light business (such as health care, asset management and insurance) positively. Sberbank, a leading commercial bank and lending institution in Russia, also performed well during the period. The company experienced a difficult 2014 due to overall market volatility in Russia; however, Sberbank has had a positive start to 2015, bolstered by positive market reaction to recent bills passed by the Russian parliament that aim to add capital to the banking sector and improve the country’s liquidity situation. Shares of insurance company Discovery Limited, the dominant health administrator and life insurer in South Africa, outperformed during the period, driven by higher profitability and earnings growth. Tencent Holdings (Information Technology) and China Construction Bank (Financials) contributed to absolute returns over the period.

Greece-based financials holdings Alpha Bank and Bank of Piraeus were the top detractors from absolute and benchmark-relative performance during the period. Hellenic Telecom (Telecommunications Services) also detracted from performance relative to the MSCI Emerging Markets Index. Shares of Alpha Bank, a banking institution with segments in retail banking, corporate banking, asset management, insurance, investment banking, and treasury, underperformed after the anti-austerity party Syriza claimed victory in national elections, raising concern over instability in the Eurozone. Rising political tensions and uncertainty about Greece’s bailout extension prompted bank deposit outflows, squeezing liquidity levels. Similarly, shares of Bank of Piraeus underperformed due to the uncertain Greek political environment and amid concerns that Greece will not be able to successfully negotiate with the country’s creditors. Shares of Hellenic Telecom, the dominant telecommunications services operator in Greece, underperformed alongside the slide in the Greek equity market. Petrobras (Energy) detracted from absolute performance.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

Over the period we modestly increased our overweight in Russia and increased the underweight in South Korea. We added to Russian energy producer Gazprom as we believe that the ruble devaluation is positive for Russia’s oil sector and the stock is attractively valued in our view. We also added to Russian financials holding Sberbank, a play on what we see as a medium term recovery in the financial system. Although we believe that the politico-regulatory outlook will improve in South Korea, we eliminated our position in Hana Financial as we believe that there are more attractive ideas elsewhere.

At the end of the period, the Fund was most overweight India, Greece and China, and underweight South Korea, South Africa and Mexico relative to the MSCI Emerging Markets Index.

 

 

 

4

 


Hartford Global Capital Appreciation Fund inception 04/29/2005

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Global Capital Appreciation A2

     6.76%         8.95%         11.72%         9.49%   

Global Capital Appreciation A3

     0.89%         2.96%         10.46%         8.87%   

Global Capital Appreciation B2

     6.42%         8.18%         10.85%         8.80% 4 

Global Capital Appreciation B3

     2.02%         3.71%         10.58%         8.80% 4 

Global Capital Appreciation C2

     6.43%         8.25%         10.93%         8.71%   

Global Capital Appreciation C3

     5.55%         7.35%         10.93%         8.71%   

Global Capital Appreciation I2

     7.00%         9.36%         12.07%         9.80%   

Global Capital Appreciation R32

     6.74%         8.91%         11.55%         9.35%   

Global Capital Appreciation R42

     6.90%         9.23%         11.88%         9.65%   

Global Capital Appreciation R52

     6.95%         9.30%         12.08%         9.84%   

Global Capital Appreciation Y2

     7.04%         9.49%         12.19%         9.95%   

MSCI All Country World Index

     5.24%         8.01%         10.16%         7.54%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

The Fund has changed its benchmark from the Russell 3000 Index to the MSCI All Country World Index. Hartford Funds Management Company, LLC believes that the MSCI All Country World Index better reflects the Fund’s revised investment strategy.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  5  

 


Hartford Global Capital Appreciation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Global Capital Appreciation Class A

     1.25%         1.26%   

Global Capital Appreciation Class B

     2.00%         2.09%   

Global Capital Appreciation Class C

     1.96%         1.96%   

Global Capital Appreciation Class I

     0.93%         0.93%   

Global Capital Appreciation Class R3

     1.35%         1.55%   

Global Capital Appreciation Class R4

     1.05%         1.24%   

Global Capital Appreciation Class R5

     0.95%         0.95%   

Global Capital Appreciation Class Y

     0.84%         0.84%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Kent M. Stahl, CFA

Senior Managing Director and Director, Investments and Risk Management

Wellington Management Company LLP

Gregg R. Thomas, CFA

Senior Managing Director and Director, Risk Management

Wellington Management Company LLP

Michael T. Carmen, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

David W. Palmer, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Frank D. Catrickes, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Nicolas M. Choumenkovitch

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Saul J. Pannell, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Global Capital Appreciation Fund returned 6.76%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the MSCI All Country World Index, which returned 5.24% for the same period. The Fund also outperformed the 4.97% average return of the Lipper Global 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 rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S.

 

 

 

  6  

 


Hartford Global Capital Appreciation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight of ten sectors in the MSCI All Country World Index posted positive returns during the period. Strong performing sectors included Consumer Discretionary (+12%), Healthcare (+9%) and Information Technology (+8%), while the Energy (-5%), Utilities (-2%) and Telecommunication Services (+4%) sectors lagged on a relative basis.

Strong security selection was the primary driver of the Fund’s outperformance relative to the MSCI All Country World Index during the period. Strong stock selection within the Utilities, Financials, and Information Technology sectors more than offset weaker selection in the Telecommunication Services sector. Sector allocation, a result of the bottom-up stock selection process, also contributed to relative returns over the period driven by an underweight to the Energy sector and an overweight to the Information Technology sector.

The top contributors to performance relative to the MSCI All Country World Index during the period included NXP Semiconductors (Information Technology), Uber Technologies (Information Technology), and Exxon Mobil (Energy). The share price of NXP Semiconductors, a Netherlands-based semiconductor company, moved higher as it continues to maintain its status as a well-positioned semiconductor manufacturer. The stock outperformed over the period following the announcement of a merger with semiconductor company Freescale, which would make the combined company one of the largest firms in the industry. Shares of Uber Technologies, a U.S.-based ride-sharing service, increased over the period due to an increase in bookings that came in ahead of projections. Additionally, Baidu, a leading search engine in China, announced that it intends to invest $600 million in Uber and connect its mapping and search features with Uber in China. Not holding the MSCI All Country World Index constituent Exxon Mobil, a U.S.-based integrated oil and gas company, contributed to relative returns over the period as the stock underperformed due to the continued

fall in oil prices. Apple (Information Technology) and Amazon.com (Consumer Discretionary) also contributed to performance on an absolute basis.

Top detractors from performance relative to the MSCI All Country World Index included Bank of Piraeus (Financials), Trican Well Services (Energy), and Baidu (Information Technology). Shares of Bank of Piraeus, a domestic Greek bank, fell alongside the slide in the Greek equity market as the election of a government with a majority held by the left-leaning anti-austerity Syriza party generated concerns about whether this new government will be able to negotiate successfully with the country’s creditors. Shares of Trican Well Services, a North American supplier of pressure pumping services to the oil and gas industry, declined along with the broader energy sector as oil prices continued to fall over the period. Baidu underperformed as the company reported fourth quarter earnings that were lower than consensus estimates driven by higher than expected selling, general, and administrative expenses, and issued revenue guidance below expectations.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We believe the U.S. economic outlook is solid, and should continue to improve. We believe that domestic demand in Europe and Japan is recovering, while proactive monetary easing and a variety of policy initiatives in China should help to provide a soft landing. Given this backdrop, we expect the overall growth environment to remain generally stable throughout the year as the global economy gradually works its way through the cycle of currency weakness, falling commodity prices, and deflationary fears.

While global equity valuations remain elevated, global earnings growth expectations are somewhat conservative in our view as they are at the low end of the pre-crisis range. When viewed together, and given our stable-to-positive view on global growth, this gives us reason to believe that equity markets have the potential to provide attractive returns in the aggregate.

At the end of the period, Information Technology was our top overweight while Financials remained our largest underweight relative to the MSCI All-Country World Index.

 

 

 

7

 


Hartford Global Equity Income Fund inception 02/29/2008

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks a high level of current income consistent with growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      Since
Inception2
 

Global Equity Income A3

     4.92%         5.55%         10.56%         5.83%   

Global Equity Income A4

     -0.85%         -0.25%         9.31%         5.00%   

Global Equity Income B3

     4.50%         4.78%         9.76%         5.05% 5 

Global Equity Income B4

     -0.47%         -0.21%         9.48%         5.05% 5 

Global Equity Income C3

     4.48%         4.75%         9.74%         5.05%   

Global Equity Income C4

     3.48%         3.76%         9.74%         5.05%   

Global Equity Income I3

     5.05%         5.90%         10.89%         6.13%   

Global Equity Income R33

     4.82%         5.35%         10.35%         5.59%   

Global Equity Income R43

     4.96%         5.65%         10.68%         5.88%   

Global Equity Income R53

     5.10%         5.94%         11.02%         6.19%   

Global Equity Income Y3

     5.04%         6.02%         11.07%         6.24%   

MSCI All Country World Index

     5.24%         8.01%         10.16%         5.17%   

 

1  Not Annualized
2  Inception: 02/29/2008
3  Without sales charge
4  With sales charge
5  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  8  

 


Hartford Global Equity Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Global Equity Income Class A

     1.25%         1.53%   

Global Equity Income Class B

     2.00%         2.48%   

Global Equity Income Class C

     2.00%         2.27%   

Global Equity Income Class I

     1.00%         1.13%   

Global Equity Income Class R3

     1.45%         1.73%   

Global Equity Income Class R4

     1.15%         1.41%   

Global Equity Income Class R5

     0.85%         1.09%   

Global Equity Income Class Y

     0.80%         0.83%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Ian R. Link, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

John R. Ryan, CFA*

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

W. Michael Reckmeyer, III, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of Hartford Global Equity Income Fund returned 4.92%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the MSCI All Country World Index, which returned 5.24% for the same period. The Fund outperformed the 2.94% average return of the Lipper Global Equity Income 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 during the period, notwithstanding bouts of significant volatility. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and

encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight of the ten sectors in the MSCI All Country World Index rose during the period. Consumer Discretionary (+12%), Healthcare (+9%), and Information Technology (+8%) rose the most while returns in Energy (-5%), Utilities (-2%), Telecommunication Services (+4%), lagged on a relative basis.

 

 

* Effective June 30, 2015, John R. Ryan will retire from Wellington Management and will no longer serve as the Fund’s portfolio manager.

 

 

  9  

 


Hartford Global Equity Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Sector allocation, a result of bottom-up stock selection, detracted from performance relative to the MSCI All Country World Index over the period driven by an underweight to Consumer Discretionary and an overweight to Utilities; this more than offset the benefit of an underweight to Energy. Security selection contributed to relative results; selection was strongest within Financials, Telecommunication Services, and Materials, which was slightly offset by weaker selection within Healthcare.

The largest detractors from returns relative to the MSCI All Country World Index were Delta Lloyd (Financials), Intel (Information Technology), and HSBC (Financials). Delta Lloyd is a Netherlands-based financial services provider offering life insurance and pensions, general insurance, fund management and banking products and services. Company shares fell on negative news flow including the dismissal of the CFO and a fine by the Dutch regulator. Intel, a U.S.-based manufacturer of semiconductor chips, underperformed over the period as revenue in the first quarter of 2015 fell well below expectations and some investors expressed concern over news Intel would acquire Altera, a U.S. based semiconductor company. UK-based global bank HSBC saw its shares fall after news surfaced of tax evasion by executives. Royal Dutch Shell (energy) was also a top detractor from absolute performance.

Top contributors to performance relative to the MSCI All Country World Index during the period included, Eisai (Healthcare), Kraft Foods (Consumer Staples), and Nippon Telegraph & Telephone (Telecommunication Services). Eisai, a Japan-based pharmaceutical company, saw shares rally over positive sentiment surrounding a new drug for Alzheimer’s treatment. Shares in Kraft Foods, a U.S.-based food manufacturer and processor, rose on the back of news that Heinz will take over the company in a deal that will create one of North America’s biggest food companies bringing together some of the biggest household brands in the U.S., ranging from Heinz ketchup to Jell-O desserts. Nippon Telegraph and Telephone provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services within Japan. The company saw shares outperform as they are beginning to see progress in their new pricing plan with an increasing number of users moving to higher data packages along with an uptick in the amount they are paying as they make this switch. Maxim Integrated (Information Technology) was also a top contributor to absolute performance.

While derivatives are typically not used in a significant manner in this Fund, we had a currency euro hedge in the portfolio that had a positive impact on performance during the period.

What is the outlook?

We believe that a supply-side induced drop in energy prices should be favorable for the world economy, but the strength of the U.S. dollar is currently undermining some of these windfall gains as it

weighs on China and other emerging economies. The U.S. outlook appears to be mixed, with generally stronger consumption but moderating manufacturing output. Domestic demand conditions in Europe and Japan appear to be improving, while proactive monetary easing and a variety of policy initiatives in China should help provide a soft landing.

The Fund ended the period most overweight the Financials, Telecommunication Services, and Materials sectors and most underweight the Consumer Discretionary, Consumer Staples, and Industrials sectors relative to the MSCI All Country World Index.

 

 

 

10

 


Hartford International Capital Appreciation Fund inception 06/30/2008

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

     6 Months1     1 Year     5 Years     Since
Inception2
 

International Capital Appreciation A3

    6.08%        2.56%        7.46%        1.57%   

International Capital Appreciation A4

    0.25%        -3.08%        6.25%        0.74%   

International Capital Appreciation B3

    5.80%        1.97%        6.73%        0.87% 5 

International Capital Appreciation B4

    0.80%        -2.99%        6.42%        0.87% 5 

International Capital Appreciation C3

    5.81%        1.86%        6.68%        0.84%   

International Capital Appreciation C4

    4.81%        0.87%        6.68%        0.84%   

International Capital Appreciation I3

    6.31%        3.01%        7.89%        1.97%   

International Capital Appreciation R33

    6.08%        2.36%        7.24%        1.35%   

International Capital Appreciation R43

    6.20%        2.79%        7.56%        1.64%   

International Capital Appreciation R53

    6.41%        3.11%        7.91%        1.94%   

International Capital Appreciation Y3

    6.47%        3.16%        7.94%        2.00%   

MSCI All Country World ex USA Index

    5.78%        3.08%        6.52%        2.62%   

 

1  Not Annualized
2  Inception: 06/30/2008
3  Without sales charge
4  With sales charge
5  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

MSCI All Country World ex USA 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. 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 chart and table do not reflect the deductions 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.

 

 

 

  11  

 


Hartford International Capital Appreciation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

International Capital Appreciation Class A

     1.45%         1.84%   

International Capital Appreciation Class B

     2.20%         2.53%   

International Capital Appreciation Class C

     2.20%         2.59%   

International Capital Appreciation Class I

     1.20%         1.44%   

International Capital Appreciation Class R3

     1.65%         2.12%   

International Capital Appreciation Class R4

     1.35%         1.81%   

International Capital Appreciation Class R5

     1.05%         1.50%   

International Capital Appreciation Class Y

     1.00%         1.40%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Kent M. Stahl, CFA

Senior Managing Director and Director of Investments and Risk Management

Wellington Management Company LLP

Gregg R. Thomas, CFA

Senior Managing Director and Director, Risk Management

Wellington Management Company LLP

Jean-Marc Berteaux

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

James H. Shakin, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Tara Connolly Stilwell, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford International Capital Appreciation Fund returned 6.08%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the MSCI All Country World ex USA Index, which returned 5.78% for the same period. The Fund underperformed the 6.33% average return of the Lipper International Multi-Cap Growth peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and

questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair

 

 

 

  12  

 


Hartford International Capital Appreciation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, non-U.S. equities outperformed U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight of the ten sectors within the MSCI All Country World ex-USA Index posted positive returns for the period. The Consumer Discretionary (+13%), Healthcare (+11%), and Information Technology (+11%) sectors posted the largest gains while the Energy (-6%), Utilities (-3%), and Materials (+3%) sectors lagged on a relative basis.

Both security selection and sector allocation, a result of our bottom-up stock selection, contributed to the Fund’s outperformance relative to the MSCI All Country World ex USA Index during the period. Stock selection was strongest within the Information Technology and Financials sectors. This was partially offset by weaker selection in the Energy and Healthcare sectors. An underweight to the Energy sector and an overweight to the Consumer Discretionary sector contributed to results relative to the MSCI All Country World ex USA Index. On a regional basis, an overweight to and selection within Japan were major contributors to performance relative to the MSCI All Country World ex USA Index. Security selection within Europe also contributed while selection within emerging markets detracted.

Top contributors to performance relative to the MSCI All Country World ex USA Index during the period included Renault (Consumer Discretionary), Royal Dutch Shell (Energy), and Valeo (Consumer Discretionary). Shares of Renault, an automobile manufacturer based in France, rose as European car sales improved at the end of 2014 and boosted profits. Royal Dutch Shell, a U.K.-based global integrated oil and gas company, saw its shares fall as earnings were below expectations due to lower oil prices and upstream weakness. Not owning the poor performing MSCI All Country World ex USA Index component contributed to results relative to the MSCI All Country World ex USA Index. Valeo is a France-based industrial company focused on the design, production and sale of components, integrated systems and modules for the automotive industry. The company benefitted from the improving European auto market and new product launches from manufacturers such as Chrysler, Ford and Renault, sending its share price higher during the period. Top contributors to absolute performance also included MUFG (Financials).

The largest detractors from absolute and relative performance were Trican Well Services (Energy), AirAsia (Industrials), and Vallourec (Industrials). Shares of Trican, a Canada-based supplier of pressure-pumping services to the oil and gas industry, declined during the period despite beating consensus earnings and revenue estimates. Trican’s stock price fell along with the broader Energy sector, which performed poorly over the period, and we eliminated our position during the period. Shares of AirAsia, a low-cost airline based in Malaysia, fell driven by the negative news flow regarding

the crash of their plane in December 2014 and worries that overall demand in Asia would be soft, or that overcapacity in the industry might become a problem. Shares of Vallourec, an industrial machinery company based in France that specializes in serving the energy and power generation market, underperformed after its largest single customer, Petrobras, changed its focus from exploration to production resulting in a significant destocking of Vallourec tubes. Alpha Bank (Financials) was also amongst the top absolute detractors during the period.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We believe the U.S. economic outlook is solid and should continue to improve. Domestic demand in Europe and Japan appears to be recovering, while proactive monetary easing and a variety of policy initiatives in China should help to ensure that the Chinese economy maintains a rate of economic growth high enough to avoid a recession, but slow enough to avoid high inflation. Given this backdrop, we expect the overall growth environment to remain generally stable throughout the year as the global economy gradually works its way through the cycle of currency weakness, falling commodity prices, and deflationary fears.

While global equity valuations remain elevated, we believe that global earnings growth expectations are somewhat conservative as they are at the low end of the pre-crisis range. When viewed together, and given our stable-to-positive view on global growth, this gives us reason to believe that equity markets have the potential to provide attractive returns in aggregate.

At the end of the period, Information Technology was our top overweight while Financials remained our largest underweight relative to the MSCI All-Country World ex USA Index. On a regional basis, the Fund was most overweight Japan and most underweight North America.

 

 

 

13

 


The Hartford International Growth Fund inception 04/30/2001

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

International Growth A2

     6.67%         5.08%         10.00%         4.55%   

International Growth A3

     0.80%         -0.70%         8.77%         3.96%   

International Growth B2

     6.27%         4.38%         9.19%         3.97% 4 

International Growth B3

     1.27%         -0.62%         8.90%         3.97% 4 

International Growth C2

     6.36%         4.39%         9.20%         3.78%   

International Growth C3

     5.36%         3.39%         9.20%         3.78%   

International Growth I2

     6.83%         5.48%         10.37%         4.87%   

International Growth R32

     6.62%         4.97%         9.89%         4.45%   

International Growth R42

     6.84%         5.37%         10.24%         4.75%   

International Growth R52

     6.99%         5.69%         10.58%         5.02%   

International Growth Y2

     6.92%         5.71%         10.61%         5.10%   

MSCI All Country World ex USA Growth Index

     7.47%         5.82%         7.17%         7.01%   

MSIC EAFE Growth Index

     8.51%         4.51%         8.51%         6.57%   

 

1  Not Annualized
2 Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses.

MSCI All Country World ex USA Growth Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of both developed and emerging stock markets, excluding the U.S., of the growth securities within the MSCI All Country World ex USA Index.

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.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  14  

 


The Hartford International Growth Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

International Growth Class A

     1.55%         1.58%   

International Growth Class B

     2.30%         2.64%   

International Growth Class C

     2.30%         2.30%   

International Growth Class I

     1.18%         1.18%   

International Growth Class R3

     1.60%         1.83%   

International Growth Class R4

     1.30%         1.44%   

International Growth Class R5

     1.00%         1.13%   

International Growth Class Y

     0.95%         1.01%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Jean-Marc Berteaux

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

John A. Boselli, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford International Growth Fund returned 6.67%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmarks, the MSCI All Country World ex USA Growth Index, and the MSCI EAFE Growth Index, which returned 7.47% and 8.51%, respectively, for the same period. The Fund outperformed the 6.33% average return of the Lipper 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?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate

cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight of the ten sectors in the MSCI All Country World ex USA Growth Index rose during the period. Consumer Discretionary (+12%), Information Technology (+11%) and Healthcare (+11%) sectors gained the most during the period. Energy (-2%), Telecommunication Services (-1%), and Materials (+4%) lagged on a relative basis.

Security selection detracted from performance relative to the MSCI All Country World ex USA Growth Index. Positive stock selection within Consumer Discretionary, Information Technology, and Financials was more than offset by weaker security selection within Industrials, Materials, and Energy. Sector allocation, a residual of bottom-up stock selection, contributed positively to performance relative to the MSCI All Country World ex USA Growth Index over the period. The Fund’s underweight exposure to the Energy, Telecommunication Services, and Consumer Staples sectors contributed to relative results.

 

 

 

  15  

 


The Hartford International Growth Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Top detractors from both absolute performance and performance relative to the MSCI All Country World ex U.S.A. Growth Index during the period were Trican Well Service (Energy), Vallourec (Industrials), and AirAsia (Industrials). Shares of Trican, a Canada-based supplier of pressure-pumping services to the oil and gas industry, declined during the period despite beating consensus earnings and revenue estimates. The stock price fell along with the broader energy sector, which performed poorly over the period, and we eliminated our position in Trican. Shares of Vallourec, an industrial machinery company based in France that specializes in serving the energy and power generation market, underperformed after its largest single customer, Petrobras, changed its focus from exploration to production resulting in a significant destocking of Vallourec tubes. Shares of AirAsia, a low-cost airline based in Malaysia, fell driven by the negative news flow of their plane crash and worries that overall demand in Asia would be soft, or that overcapacity in the industry might become a problem. Methanex (Materials) was a top detractor from absolute performance during the period as well.

Catcher Technology (Information Technology), Renault (Consumer Discretionary), and Valeo (Consumer Discretionary) were the top contributors to performance relative to the MSCI All Country World ex U.S.A. Growth Index and absolute performance during the period. Shares of Catcher Technology, a Taiwan-based manufacturer of casings for mobile devices, including the iPhone 6, rose during the period as the company reported stronger than expected earnings per share for fourth quarter 2014 and management guidance indicated that sales in 2015 would be stronger driven by market share gains and organic growth in the smartphone industry. Shares of Renault, an automobile manufacturer based in France, rose as European car sales improved at the end of 2014 and boosted profits. Valeo is a France-based industrial company focused on the design, production and sale of components, integrated systems and modules for the automotive industry. The company also benefitted from the improving European auto market and new product launches from manufacturers such as Chrysler, Ford and Renault, sending its share price higher during the period.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period,

What is the outlook?

The macroeconomic indicators that we follow continue to point to slower economic growth globally. We believe that the economy of the United States remains strong and offers the best opportunities for finding companies returning capital to shareholders. Europe’s economic growth remains tepid overall and rates have declined significantly. Employment growth in Europe has remained sluggish without regulatory and labor changes. Additionally, because stocks in Japan and Europe outperformed U.S. equities in U.S. dollar terms, we believe their stock valuations are relatively less attractive than in the U.S. Although the portfolio is overweight in its exposure

to Europe, the vast majority of our holdings are in the UK, France, and Switzerland where our investments include health care companies that we view as leaders in developing immuno-oncology treatments or innovative drugs for other diseases with broad global market demand. We also own several insurance and consumer stocks. Within emerging markets, Latin America, particularly Brazil, has deteriorated economically. On the other hand, even though its economic growth is slowing, China appears to remain relatively healthy with what we consider to be attractive valuations. We believe that India’s improving economy provides growth opportunities for financial services companies that have high returns on assets and growth rates. We continue to favor direct and indirect consumer plays, such as auto component or electronics component makers, along with exporting firms exposed to solid growth that we expect to benefit from the recent fall in currencies relative to the U.S. dollar.

We select stocks individually based on their merits. As a result of bottom-up stock selection, Consumer Discretionary was the Fund’s largest overweight exposure relative to the MSCI All Country World ex U.S.A. Growth Index at the end of the period. Other sectors where we ended the period with overweights included Information Technology and Healthcare. The largest underweights relative to the MSCI All Country World ex U.S.A. Growth Index were the Consumer Staples, Energy, and Materials sectors.

 

 

 

16

 


The Hartford International Opportunities Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

International Opportunities A2

     6.36%         3.91%         7.62%         7.39%   

International Opportunities A3

     0.51%         -1.80%         6.41%         6.79%   

International Opportunities B2

     5.94%         3.02%         6.78%         6.82% 4 

International Opportunities B3

     1.31%         -1.48%         6.47%         6.82% 4 

International Opportunities C2

     6.05%         3.20%         6.84%         6.60%   

International Opportunities C3

     5.13%         2.30%         6.84%         6.60%   

International Opportunities I2

     6.63%         4.35%         8.01%         7.67%   

International Opportunities R32

     6.26%         3.66%         7.39%         7.26%   

International Opportunities R42

     6.44%         3.99%         7.72%         7.58%   

International Opportunities R52

     6.54%         4.28%         8.05%         7.82%   

International Opportunities R62,5

     6.61%         4.42%         8.15%         7.93%   

International Opportunities Y2

     6.61%         4.42%         8.15%         7.93%   

MSCI All Country World ex USA Index

     5.78%         3.08%         6.52%         6.73%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/30/08. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses. Class R6 shares commenced operations on November 7, 2014. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

MSCI All Country World ex USA 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. 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 chart and table do not reflect the deductions 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.

 

 

 

  17  

 


The Hartford International Opportunities Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

International Opportunities Class A

     1.20%         1.20%   

International Opportunities Class B

     2.04%         2.30%   

International Opportunities Class C

     1.93%         1.93%   

International Opportunities Class I

     0.84%         0.84%   

International Opportunities Class R3

     1.44%         1.44%   

International Opportunities Class R4

     1.14%         1.14%   

International Opportunities Class R5

     0.84%         0.84%   

International Opportunities Class R6

     0.74%         0.74%   

International Opportunities Class Y

     0.74%         0.74%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Nicolas M. Choumenkovitch

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Tara C. Stilwell, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford International Opportunities Fund returned 6.36%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the MSCI All Country World ex–USA Index, which returned 5.78% for the same period. The Fund also modestly outperformed the 6.33% average return of the Lipper 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?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Europe’s economy remained near stall speed, oil prices plunged, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty

surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Within the MSCI All Country World ex–U.S.A. Index, eight of the ten sectors rose during the period. Consumer Discretionary (+13%), Healthcare (+11%) and Information Technology (+11%) gained the most. Energy (-6%), Utilities (-3%) and Materials (+3%), lagged on a relative basis.

Security selection was the primary driver of the Fund’s outperformance relative to the MSCI All Country World ex–USA Index over the period. Strong stock selection in the Financials, Consumer Discretionary, and Industrials sectors more than offset weaker stock selection in Information Technology, Energy, and Healthcare. Sector allocation, a result of the bottom-up stock selection process, contributed positively to returns relative to the MSCI All Country World ex–USA Index as well, largely due to an overweight in Healthcare and an underweight in Materials. A modest cash position detracted in an upward trending market environment.

Top contributors to performance relative to the MSCI All Country World ex–USA Index during the period included Hong Kong Exchanges (Financials), Eisai (Healthcare), and CRH (Materials). Shares of Hong Kong Exchanges, the only stock exchange and

 

 

 

  18  

 


The Hartford International Opportunities Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

futures exchange in Hong Kong, rose as the company benefited from government initiatives to liberalize China’s financial markets. The company has also benefited from increased trading volume generated by the new Hong Kong-Shanghai Connect program, which facilitates trading between the Hong Kong Exchange and the Shanghai Exchange. Shares of Eisai, a Japan-based global pharmaceutical company, rose following positive clinical data for an Alzheimer’s disease treatment, which it is developing in partnership with Biogen Idec. Shares of CRH, an Ireland-based building materials company, rose as an improving U.S. and European construction sector contributed to margin expansion. Novartis (Healthcare) was also a top contributor to absolute performance.

The largest detractors from returns relative to the MSCI All Country World ex–USA Index included Baidu (Information Technology), Alibaba (Information Technology), and Imperial Oil (Energy). Shares of China-based internet search provider Baidu underperformed as the company reported 2014 fourth quarter earnings that were lower than consensus estimates. Lower earnings were driven by higher than expected selling, general, and administrative expenses. Revenue guidance was also below expectations. Shares of Alibaba, a China-based internet company that facilitates the vast majority of ecommerce in China, underperformed during the period due to concerns over the company’s ability to monetize the ongoing shift to mobile transactions. Shares of Imperial Oil, a Canada-based integrated oil and gas company, underperformed as the low oil price environment continued to impact energy stocks. BG Group (Energy) was also a top detractor on an absolute basis over the period.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We believe global economic growth will likely continue to be moderate and we expect we will begin to see productivity gains contribute more to growth. We also believe future returns on assets will improve as recent advances in technology gain traction and capital shifts towards business models that require less of it. Additionally, we believe lower commodity prices, which should help the consumer, also may contribute to global productivity by stemming the flow of capital to resource-driven economies and allow it to remain in more efficient and productive ones.

At the end of the period, the Fund was most overweight the Healthcare, Consumer Discretionary and Financials sectors and most underweight the Materials, Energy and Industrials sectors relative to the MSCI All Country World ex–USA Index. On a country basis, the Fund ended the period with overweights in France, Italy, and Japan and underweights in Australia, the United Kingdom, and Canada.

 

 

 

19

 


The Hartford International Small Company Fund inception 04/30/2001

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

International Small Company A2

     7.98%         0.80%         10.50%         8.13%   

International Small Company A3

     2.04%         -4.74%         9.25%         7.52%   

International Small Company B2

     7.58%         0.03%         9.65%         7.55% 4 

International Small Company B3

     3.28%         -3.98%         9.37%         7.55% 4 

International Small Company C2

     7.69%         0.19%         9.69%         7.33%   

International Small Company C3

     6.84%         -0.61%         9.69%         7.33%   

International Small Company I2

     8.28%         1.22%         10.97%         8.47%   

International Small Company R32

     8.00%         0.69%         10.39%         8.32%   

International Small Company R42

     8.16%         1.04%         10.72%         8.49%   

International Small Company R52

     8.20%         1.28%         11.02%         8.63%   

International Small Company Y2

     8.31%         1.32%         11.09%         8.67%   

S&P EPAC SmallCap Index

     11.05%         3.96%         10.13%         7.98%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4 Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/31/07. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 5/28/10. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses.

S&P EPAC SmallCap Index is a global equity index comprised of the smallest 15% of each country’s market capitalization in the S&P BMI (Broad Market Index) World. (The S&P BMI World Index captures all companies in developed markets with free float market capitalization of at least $100 million as of the annual index reconstitution.) All developed market countries are included in the S&P EPAC SmallCap except the U.S. and Canada.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  20  

 


The Hartford International Small Company Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

International Small Company Class A

     1.49%         1.49%   

International Small Company Class B

     2.29%         2.52%   

International Small Company Class C

     2.19%         2.19%   

International Small Company Class I

     1.19%         1.19%   

International Small Company Class R3

     1.65%         1.70%   

International Small Company Class R4

     1.35%         1.40%   

International Small Company Class R5

     1.05%         1.10%   

International Small Company Class Y

     0.99%         0.99%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Simon H. Thomas

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Daniel Maguire, CFA

Senior Managing Director and Equity Research Analyst

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford International Small Company Fund returned 7.98%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the S&P EPAC SmallCap Index, which returned 11.05% for the same period. The Fund outperformed the 7.45% average return of the Lipper International Small/Mid-Cap Growth peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a

1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Nine of the ten sectors within the S&P EPAC SmallCap Index posted positive returns. Financials (+14%), Healthcare (+13%) and Materials (+13%) gained the most during the period. Energy (-12%), Utilities (+1%), and Consumer Staples (+8%) lagged on a relative basis.

The Fund underperformed the S&P EPAC SmallCap Index primarily due to weak stock selection within the Consumer Discretionary, Financials and Energy sectors; this was partially offset by stronger stock selection within the Industrials sector. Sector allocation, a result of the bottom-up stock selection process, also detracted from the Fund’s relative performance, in part due to overweight allocations to Energy and Industrials. On a regional basis, exposure to emerging market names was the primary detractor from performance relative to the S&P EPAC SmallCap Index, which was only partially offset by positive contributions from security selection within Europe and an underweight to Asia ex-Japan.

 

 

 

  21  

 


The Hartford International Small Company Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

The largest detractors from absolute and relative performance during the period were Zuiko (Industrials), Yamato Kogyo (Materials) and Pacific Rubiales Energy (Energy). Shares of Zuiko, a Japan-based supplier of diaper making machines, declined following a period of weak execution with a series of production delays. However, the company recently completed an expansion of its Chinese facility to increase capacity by at least 50%. We modestly reduced our position during the period. Shares of Yamato Kogyo, a steel company with manufacturing facilities in Japan, Korea, U.S., Thailand and Bahrain underperformed after weaker than expected near-term fundamentals. We trimmed our holdings, but maintained our position as of the end of the period. Shares of Pacific Rubiales Energy, a Toronto-listed producer of natural gas and crude oil with assets primarily in Colombia, fell along with the broader energy sector, which performed poorly over the period.

Top contributors to relative returns during the period were Gategroup (Industrials), Anima Holding (Financials), and USG People (Industrials). Shares of Gategroup, a Switzerland-based company that provides catering and logistical services to the airline and travel industry, outperformed during the period as lower oil prices were seen as beneficial to the travel business. Anima Holding is an Italy-based company created to buy the asset management divisions of regional Italian banks that are selling these divisions to repair their balance sheets following the financial crisis. The company has benefited from continued inflows as Italy undergoes a secular shift away from a low savings rate. Shares of USG People, a Netherlands-based temporary employment company, rose as the recovery of the employment market in Europe began to pick up pace. Top contributors to absolute returns during the period included Asahi Intecc (Healthcare).

Derivatives were not used in this Fund and thus did not have a material impact on performance during the period.

What is the outlook?

We continue to focus on what we believe are high quality companies with strong balance sheets and good business models that we believe are attractively valued relative to their global industry. Further, we buy companies whose results we think will exceed consensus expectations over the next two to three years. We think a disciplined approach to valuation and a quality orientation leads to better results in down markets and better overall performance over time.

At the end of the period, we remained most overweight the industrials, materials, and health care sectors relative to the S&P EPAC SmallCap Index. Our largest underweights were to the Consumer Staples, Information Technology, and Consumer Discretionary sectors relative to the S&P EPAC SmallCap Index. On a regional basis, we were most overweight Japan where we

continue to find what we believe are the most attractive opportunities, while developed Asia ex-Japan remains our largest underweight.

 

 

 

22

 


The Hartford International Value Fund inception 05/28/2010

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1     1 Year     Since
Inception2
 

International Value A3

     9.03     2.27     12.16

International Value A4

     3.04     -3.35     10.88

International Value C3

     8.70     1.53     11.40

International Value C4

     7.70     0.53     11.40

International Value I3

     9.28     2.62     12.57

International Value R33

     8.94     1.97     11.90

International Value R43

     9.07     2.32     12.24

International Value R53

     9.22     2.57     12.57

International Value Y3

     9.29     2.68     13.04

MSCI EAFE Index

     7.06     2.10     10.65

MSCI EAFE Value Index

     5.59     -0.28     10.04

 

1  Not Annualized
2  Inception: 05/28/2010
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015,

which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

MSCI EAFE Value Index is a free float-adjusted market capitalization-weighted index that is designed to measure developed market equity performance (excluding the U.S. and Canada) of the value securities within the MSCI EAFE Index.

MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

* Effective on the close of business on November 28, 2014, the Fund is closed to new investors until further notice. For more information, please see the Fund’s prospectus.

 

 

 

  23  

 


The Hartford International Value Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

International Value Class A

     1.37%         1.37%   

International Value Class C

     2.05%         2.05%   

International Value Class I

     1.02%         1.02%   

International Value Class R3

     1.60%         1.70%   

International Value Class R4

     1.30%         1.39%   

International Value Class R5

     1.00%         1.08%   

International Value Class Y

     0.95%         0.96%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

James H. Shakin, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Andrew M. Corry, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford International Value Fund returned 9.03%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmarks, the MSCI EAFE Value Index and the MSCI EAFE Index, which returned 5.59% and 7.06%, respectively, for the same period. The Fund also outperformed the 5.62% average return of the Lipper International Multi Cap Value Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central

Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight out of ten sectors in the MSCI EAFE Value Index rose during the period. Within the MSCI EAFE Value Index, Consumer Discretionary (+19%), Information Technology (+16%), and Consumer Staples (+11%) gained on a relative basis. The Energy (-6%), Utilities (-5%), and Financials (+5) sectors lagged on a relative basis.

Security selection was the primary driver of outperformance relative to the MSCI EAFE Value Index during the period. Strong selection within the Industrials, Information Technology, and Materials sectors offset weaker selection within Utilities, Consumer Discretionary, and Telecommunication Services.

Sector allocation, a result of bottom-up stock selection decisions, also contributed to outperformance relative to the MSCI EAFE Value Index during the period. The Fund’s overweights in Information Technology and Consumer Discretionary, and an underweight in

 

 

 

  24  

 


The Hartford International Value Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Utilities offset underweights in Telecommunication Services and Consumer Staples which detracted from performance relative to the MSCI EAFE Value Index. On a regional basis, an overweight to and selection within Japan contributed to performance while an out-of-benchmark allocation to emerging markets detracted on a relative basis.

Over the period, Royal Dutch Shell (Energy), Eisai (Healthcare), and Peugeot (Consumer Discretionary) were top contributors to performance relative to the MSCI EAFE Value Index. Shares of Royal Dutch Shell, a U.K.-based global independent oil and gas company, underperformed as the company missed earnings due to upstream weakness caused in part by a depreciating Australian dollar. The company has also decided not to cut capital expenditure in the face of low oil prices creating concerns about lack of flexibility; not owning this benchmark constituent contributed to relative results. Shares of Eisai, a Japan-based global pharmaceutical company, rose following positive clinical data for Eisa’s Alzheimer’s disease treatment, a partnership with Biogen Idec. Shares of Peugeot, a France-based automobile manufacturer, rose on increased car sales in Asia despite middling performance in its home country. Nintendo (Information Technology) was a top absolute contributor over the period.

The largest detractors from returns relative to the MSCI EAFE Value Index over the period were Bank of Piraeus (Financials), Daphne International (Consumer Discretionary), and Toyota Motor (Consumer Discretionary). Shares of Bank of Piraeus, a Greek bank, underperformed due to the uncertain Greek political environment and concerns that Greece will not be able to successfully negotiate with the country’s creditors. Shares of Daphne International, a China-based manufacturer and distributor of its own and licensed brands of women’s footwear and apparel, underperformed due to weak same-store-sales growth and low overall consumption sentiment. Shares of

Toyota Motor, a Japanese auto company, rose on expectations for U.S. car sales to increase and for Toyota to benefit from investments in two China-based plants to increase production; not owning this benchmark constituent detracted from relative results. GDF Utilities (Utilities) was a top absolute detractor over the period.

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

From a regional perspective, we maintain our sizable overweight in Japan. We believe reasonable valuations coupled with a renewed focus on increasing shareholder value should provide a supportive backdrop for Japanese equities. On the European front, we favor the Eurozone to the United Kingdom. Within the Eurozone, our investment process has led us to what we believe are more cyclically sensitive businesses poised to benefit from a positive change in the region’s economic growth prospects. The U.K. remains the portfolio’s largest underweight, as many companies have been bid up and are no longer offered at what we believe are attractive valuations, despite

having one of the stronger macro environments in the region. We continue to take modest active positions in companies with what we consider to be low prices, low valuations and low expectations that provide a base for significant upside.

As a result of bottom-up stock selection, the Fund ended the period most overweight the Information Technology, Materials and Industrials sectors and most underweight the Financials, Utilities and Telecommunication Services sectors relative to the MSCI EAFE Value Index. On a country basis, the Fund ended the period with the largest overweights to Japan and Canada and the largest underweights to the United Kingdom and Australia.

 

 

 

25

 


Hartford Emerging Markets Equity Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     5.6

Consumer Staples

     9.0   

Energy

     10.4   

Financials

     30.3   

Health Care

     2.0   

Industrials

     3.6   

Information Technology

     17.2   

Materials

     10.9   

Telecommunication Services

     6.7   

Utilities

     3.5   
  

 

 

 

Total

     99.2
  

 

 

 

Purchased Options

     0.2   

Other Assets & Liabilities

     0.6   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Currency Concentration of Securities

as of April 30, 2015 (Unaudited)

 

Description    Percentage of
Net Assets
 

Brazilian Real

     7.2

British Pound

     0.2   

Canadian Dollar

     0.2   

Czech Koruna

     0.7   

Euro

     4.6   

Hong Kong Dollar

     29.1   

Indian Rupee

     9.0   

Indonesian Rupiah

     2.6   

Kenyan Shilling

     0.9   

Malaysian Ringgit

     2.0   

Mexican Peso

     0.8   

Nigerian Naira

     0.4   

Philippine Peso

     2.9   

Singapore Dollar

     0.2   

South African Rand

     4.6   

South Korea Won

     4.7   

Sri Lankan Rupee

     0.1   

Taiwanese Dollar

     10.2   

Thai Baht

     3.9   

Turkish Lira

     0.4   

United States Dollar

     14.5   

Purchased Options

     0.2   

Other Assets & Liabilities

     0.6   
  

 

 

 

Total

     100.0
  

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

26

 


Hartford Emerging Markets Equity Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.3%  
      Australia - 0.3%  
  1,348,200     

MMG Ltd.

  $ 578,938   
   

 

 

 
      Brazil - 7.2%  
  312,100     

Ambev S.A.

    1,961,922   
  302,900     

BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros

    1,247,611   
  371,200     

Braskem S.A. Class A, (Preference Shares)

    1,552,339   
  84,162     

CETIP S.A. - Mercados Organizados

    965,100   
  107,400     

Cia de Saneamento de Minas Gerais-COPASA

    646,977   
  91,600     

Hypermarcas S.A.(1)

    604,394   
  96,003     

Itau Unibanco Holding S.A. (Preference Shares)

    1,227,699   
  25,550     

Localiza Rent a Car S.A.

    297,820   
  961,900     

Petroleo Brasileiro S.A. (Preference Shares)(1)

    4,166,280   
  74,500     

Raia Drogasil S.A.

    845,649   
  86,000     

Telefonica Brasil S.A. (Preference Shares)

    1,427,173   
   

 

 

 
      14,942,964   
   

 

 

 
      Canada - 0.2%  
  359,500     

Ivanhoe Mines Ltd. Class A(1)

    345,644   
   

 

 

 
      China - 24.1%  
  35,451     

21Vianet Group, Inc. ADR(1)

    729,227   
  138,180     

AAC Technologies Holdings, Inc.

    729,411   
  11,105     

Alibaba Group Holding Ltd. ADR(1)

    902,725   
  309,000     

ANTA Sports Products Ltd.

    680,948   
  3,447     

Baidu, Inc. ADR(1)

    690,365   
  5,344,260     

China Construction Bank Class H

    5,187,857   
  597,000     

China Life Insurance Co., Ltd. Class H

    2,897,410   
  444,555     

China Mengniu Dairy Co., Ltd.

    2,251,296   
  492,500     

China Pacific Insurance Group Co., Ltd. Class H

    2,669,478   
  1,914,000     

China Shipping Development Co., Ltd. Class H(1)

    1,601,215   
  4,397,000     

China Suntien Green Energy Corp. Ltd. Class H

    1,181,600   
  2,163,800     

CNOOC Ltd.

    3,689,738   
  332,580     

ENN Energy Holdings Ltd.

    2,393,705   
  1,305,500     

Fosun International Ltd.

    3,253,920   
  4,252,000     

Greatview Aseptic Packaging Co., Ltd.

    2,562,116   
  64,500     

Hengan International Group Co., Ltd.

    795,732   
  5,398,570     

Industrial & Commercial Bank of China Ltd. Class H

    4,683,048   
  411,130     

Lenovo Group Ltd.

    706,967   
  353,000     

Longfor Properties Co., Ltd.

    612,683   
  380,000     

Shandong Weigao Group Medical Polymer Co., Ltd. Class H

    351,182   
  232,400     

Sinopharm Group Co., Ltd. Class H

    1,103,853   
  937,389     

Sunny Optical Technology Group Co., Ltd.

    2,085,978   
  363,400     

Tencent Holdings Ltd.

    7,500,166   
  12,393     

Vipshop Holdings Ltd. ADR(1)

    350,598   
  1,047,000     

Yashili International Holdings Ltd.

    358,510   
   

 

 

 
      49,969,728   
   

 

 

 
      Czech Republic - 0.7%  
  6,832     

Komercni banka AS

    1,523,583   
   

 

 

 
      Greece - 4.5%  
  5,674,334     

Alpha Bank A.E.(1)

    1,988,318   
  143,821     

Hellenic Exchanges - Athens Stock Exchange S.A. Holding(1)

    936,639   
  361,285     

Hellenic Telecommunications Organization S.A.(1)

    3,284,054   
  276,644     

Motor Oil Hellas Corinth Refineries S.A.

    2,422,417   
  1,678,682     

Piraeus Bank S.A.(1)

    749,192   
   

 

 

 
      9,380,620   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.3% - (continued)  
      Hong Kong - 5.9%  
  351,400     

AIA Group Ltd.

  $ 2,336,977   
  3,332,000     

AMVIG Holdings Ltd.

    1,822,797   
  110,500     

China Mobile Ltd.

    1,578,303   
  668,000     

China Overseas Land & Investment Ltd.

    2,782,474   
  1,066,000     

Guangdong Investment Ltd.

    1,589,580   
  631,000     

PAX Global Technology Ltd.(1)

    916,715   
  744,267     

Towngas China Co., Ltd.

    798,157   
  1,506,000     

Trinity Ltd.

    329,624   
   

 

 

 
      12,154,627   
   

 

 

 
      India - 11.0%  
  61,330     

Alstom T&D India Ltd.

    500,008   
  270,610     

Bharti Infratel Ltd.

    1,709,766   
  22,751     

Dr. Reddy’s Laboratories Ltd. ADR

    1,182,597   
  7,054     

Grasim Industries Ltd. GDR(1)

    398,629   
  75,721     

HCL Technologies Ltd.

    1,049,770   
  17,200     

HDFC Bank Ltd. ADR

    977,648   
  516,272     

ICICI Bank Ltd.

    2,697,183   
  91,585     

ICICI Bank Ltd. ADR

    1,001,024   
  387,484     

Idea Cellular Ltd.

    1,065,307   
  517,817     

IDFC Ltd.

    1,365,191   
  471,233     

JK Lakshmi Cement Ltd.

    2,666,097   
  257,356     

Marico Ltd.

    1,625,627   
  488,806     

Power Grid Corp. of India Ltd.

    1,093,524   
  162,035     

Reliance Industries Ltd.

    2,197,633   
  14,770     

Reliance Industries Ltd. GDR(2)

    397,313   
  116,566     

State Bank of India

    494,081   
  65,245     

Sun Pharmaceutical Industries Ltd.

    962,995   
  34,209     

Tata Consultancy Services Ltd.

    1,326,942   
   

 

 

 
      22,711,335   
   

 

 

 
      Indonesia - 2.6%  
  4,835,000     

Bank Tabungan Pensiunan Nasional Tbk PT(1)

    1,473,346   
  618,300     

Matahari Department Store Tbk PT

    831,557   
  15,435,800     

Nirvana Development Tbk PT(1)

    214,717   
  12,588,400     

Pakuwon Jati Tbk PT

    423,840   
  9,241,500     

Sumber Alfaria Trijaya Tbk PT

    377,859   
  6,713,800     

Telekomunikasi Indonesia Persero Tbk PT

    1,350,288   
  2,928,600     

Vale Indonesia Tbk PT

    629,190   
   

 

 

 
      5,300,797   
   

 

 

 
      Kenya - 0.9%  
  954,800     

Equity Group Holdings Ltd.

    497,081   
  7,025,690     

Safaricom Ltd.

    1,292,252   
   

 

 

 
      1,789,333   
   

 

 

 
      Malaysia - 2.0%  
  1,357,600     

7-Eleven Malaysia Holdings Bhd Class B

    632,772   
  1,339,300     

AMMB Holdings Bhd

    2,432,414   
  30,200     

British American Tobacco Malaysia Bhd

    566,912   
  118,500     

Guinness Anchor Bhd

    485,853   
   

 

 

 
      4,117,951   
   

 

 

 
      Mexico - 1.8%  
  440,500     

Corp. Inmobiliaria Vesta S.A.B. de C.V.

    826,907   
  201,830     

Grupo Financiero Santander Mexico S.A.B. de C.V. Class B, ADR

    2,052,611   
  394,400     

Wal-Mart de Mexico S.A.B. de C.V.

    928,030   
   

 

 

 
      3,807,548   
   

 

 

 
      Netherlands - 0.3%  
  101,571     

Cnova N.V.(1)

    573,876   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

27

 


Hartford Emerging Markets Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.3% - (continued)  
      Nigeria - 0.4%  
  6,974,316     

Zenith Bank plc

  $ 736,803   
   

 

 

 
      Philippines - 2.9%  
  1,796,700     

LT Group, Inc.

    599,833   
  1,171,459     

Metropolitan Bank & Trust Co.

    2,442,025   
  319,600     

Puregold Price Club, Inc.

    284,462   
  1,315,300     

Robinsons Land Corp.

    883,188   
  360,400     

Universal Robina Corp.

    1,757,524   
   

 

 

 
      5,967,032   
   

 

 

 
      Romania - 0.3%  
  58,919     

Electrica, S.A. GDR(1)(2)

    707,028   
   

 

 

 
      Russia - 5.0%  
  29,600     

Gazprom Neft OAO ADR

    417,981   
  517,272     

Gazprom OAO ADR

    3,030,672   
  56,800     

Lukoil OAO ADR

    2,905,633   
  50,727     

MMC Norilsk Nickel OJSC ADR

    952,653   
  513,800     

Sberbank of Russia ADR

    3,063,104   
   

 

 

 
      10,370,043   
   

 

 

 
      Singapore - 0.2%  
  362,600     

Super Group Ltd.

    407,364   
   

 

 

 
      South Africa - 4.6%  
  72,863     

Adcock Ingram Holdings Ltd.(1)

    324,679   
  148,941     

Discovery Ltd.

    1,652,877   
  299,100     

Growthpoint Properties Ltd. REIT

    701,562   
  68,606     

Hyprop Investments Ltd.

    706,461   
  22,653     

Imperial Holdings Ltd.

    379,355   
  27,440     

Naspers Ltd. Class N

    4,304,946   
  77,749     

Pick n Pay Stores Ltd.

    372,257   
  146,518     

Woolworths Holdings Ltd.

    1,102,218   
   

 

 

 
      9,544,355   
   

 

 

 
      South Korea - 4.7%  
  3,192     

BGF retail Co., Ltd.

    349,378   
  14,323     

Doosan Corp.

    1,658,982   
  18,329     

GS Holdings Corp.

    855,015   
  5,835     

Hyundai Mobis Co., Ltd.

    1,282,988   
  3,931     

Hyundai Motor Co.

    616,935   
  6,909     

LG Chem Ltd.

    1,745,271   
  1,213     

LG Household & Health Care Ltd.

    891,646   
  56,495     

Shinhan Financial Group Co., Ltd.

    2,338,223   
   

 

 

 
      9,738,438   
   

 

 

 
      Sri Lanka - 0.1%  
  39,207     

Ceylon Tobacco Co. plc

    295,008   
   

 

 

 
      Switzerland - 0.2%  
  17,925     

Coca-Cola HBC AG(1)

    378,159   
   

 

 

 
      Taiwan - 10.2%  
  51,000     

Advantech Co., Ltd.

    420,126   
  215,000     

Airtac International Group

    1,757,522   
  88,600     

Catcher Technology Co., Ltd.

    1,036,784   
  119,680     

Delta Electronics, Inc.

    720,170   
  16,000     

Eclat Textile Co., Ltd.

    214,213   
  38,300     

eMemory Technology, Inc.

    432,482   
  986,860     

Globalwafers Co., Ltd.(1)

    3,060,858   
  18,000     

Hermes Microvision, Inc.

    1,265,719   
  104,000     

King Yuan Electronics Co., Ltd.

    94,538   
  13,906     

Largan Precision Co., Ltd.

    1,393,465   
  86,060     

PChome Online, Inc.

    1,455,737   
  21,740     

Poya International Co., Ltd.

    232,202   
  99,300     

President Chain Store Corp.

    734,836   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.3% - (continued)  
      Taiwan - 10.2% - (continued)  
  28,760     

Silergy Corp.

  $ 284,525   
  1,548,000     

Taiwan Semiconductor Manufacturing Co., Ltd.

    7,452,492   
  381,000     

Vanguard International Semiconductor Corp.

    585,111   
   

 

 

 
      21,140,780   
   

 

 

 
      Thailand - 3.9%  
  41,400     

Big C Supercenter PCL NVDR

    277,571   
  234,700     

Delta Electronics Thailand PCL

    594,493   
  414,700     

Hana Microelectronics PCL

    559,810   
  265,700     

KCE Electronics PCL

    435,244   
  3,818,300     

Precious Shipping PCL

    1,575,273   
  986,412     

PTT Global Chemical PCL

    1,907,592   
  469,500     

Robinson Department Store PCL

    665,831   
  795,300     

Total Access Communication PCL NVDR

    2,089,169   
   

 

 

 
      8,104,983   
   

 

 

 
      Turkey - 0.4%  
  25,846     

Coca-Cola Icecek AS

    437,810   
  54,883     

Ulker Biskuvi Sanayi AS

    419,375   
   

 

 

 
      857,185   
   

 

 

 
      United States - 1.9%  
  119,168     

Southern Copper Corp.

    3,882,494   
   

 

 

 
 

Total Common Stocks
(cost $178,476,375)

  $ 199,326,616   
   

 

 

 
EXCHANGE TRADED FUNDS - 1.2%  
      Other Investment Pools & Funds - 1.2%  
  47,305     

iShares Core MSCI Emerging Markets ETF

  $ 2,452,291   
   

 

 

 
 

Total Exchange Traded Funds
(cost $2,473,609)

  $ 2,452,291   
   

 

 

 
WARRANTS - 1.7%  
      Germany - 1.6%      
  1,762,040     

Deutsche Bank AG London Deutsche(1)

  $ 2,633,995   
  16,711     

Deutsche Bank AG London Deutsche(1)

    668,268   
   

 

 

 
      3,302,263   
   

 

 

 
      Greece - 0.1%  
  412,200     

Alpha Bank A.E.(1)

    240,676   
   

 

 

 
 

Total Warrants
(cost $3,780,353)

  $ 3,542,939   
   

 

 

 
 

Total Long-Term Investments
(cost $184,730,337)

  $ 205,321,846   
   

 

 

 
 

Total Investments Excluding Purchased Options
(cost $184,730,337)

    99.2    $ 205,321,846   
 

Total Purchased Options
(cost $417,603)

    0.2    $ 437,355   
   

 

 

    

 

 

 
 

Total Investments
(cost $185,147,940)^

    99.4    $ 205,759,201   
 

Other Assets and Liabilities

    0.6      1,316,809   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     207,076,010   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

28

 


Hartford Emerging Markets Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $187,373,389 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $      30,897,391   

Unrealized Depreciation

     (12,511,579
  

 

 

 

Net Unrealized Appreciation

   $ 18,385,812   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $1,104,341, which represents 0.5% of total net assets.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
     Market
Value*
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

  

                 

Calls

                       

United Bank Ltd.

   JPM      0.000001 USD         06/28/19         USD         250,295       $     437,355       $     417,603       $     19,752   
              

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased option contracts

                 250,295       $ 437,355       $ 417,603       $ 19,752   
              

 

 

    

 

 

    

 

 

    

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

GBP

   Buy      05/01/15       HSBC    $     391,865       $     388,976       $ (2,889

HKD

   Buy      05/04/15       GSC      21,189         21,189           

HKD

   Buy      05/05/15       UBS      260,657         260,676         19   

HKD

   Sell      05/04/15       GSC      210,748         210,747         1   

IDR

   Buy      05/05/15       SSG      93,928         93,837         (91

MYR

   Sell      05/05/15       SSG      108,902         109,015         (113

MYR

   Sell      05/06/15       SSG      477,351         477,029         322   

PHP

   Sell      05/05/15       SSG      806,822         806,693         129   
                 

 

 

 

Total

                  $     (2,622
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

SSG

   State Street Global Markets LLC

UBS

   UBS AG
Currency Abbreviations:

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

MYR

   Malaysian Ringgit

PHP

   Philippine Peso
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  29  

 


Hartford Emerging Markets Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments) -
continued
Index Abbreviations:

MSCI

   Morgan Stanley Capital International
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange Traded Fund

GDR

   Global Depositary Receipt

NVDR

   Non-Voting Depositary Receipt

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  30  

 


Hartford Emerging Markets Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Australia

   $ 578,938      $       $ 578,938      $   

Brazil

     14,942,964        14,942,964                  

Canada

     345,644        345,644                  

China

     49,969,728        5,605,159         44,364,569          

Czech Republic

     1,523,583        1,523,583                  

Greece

     9,380,620        936,639         8,443,981          

Hong Kong

     12,154,627        1,822,797         10,331,830          

India

     22,711,335        8,043,689         14,667,646          

Indonesia

     5,300,797        1,851,205         3,449,592          

Kenya

     1,789,333        1,789,333                  

Malaysia

     4,117,951        632,772         3,485,179          

Mexico

     3,807,548        3,807,548                  

Netherlands

     573,876        573,876                  

Nigeria

     736,803                736,803          

Philippines

     5,967,032                5,967,032          

Romania

     707,028                707,028          

Russia

     10,370,043        2,152,814         8,217,229          

Singapore

     407,364                407,364          

South Africa

     9,544,355        1,031,140         8,513,215          

South Korea

     9,738,438        891,646         8,846,792          

Sri Lanka

     295,008        295,008                  

Switzerland

     378,159                378,159          

Taiwan

     21,140,780        3,060,858         18,079,922          

Thailand

     8,104,983        5,738,243         2,366,740          

Turkey

     857,185                857,185          

United States

     3,882,494        3,882,494                  

Exchange Traded Funds

     2,452,291        2,452,291                  

Warrants

     3,542,939        240,676         3,302,263          

Purchased Options

     437,355                437,355          
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     205,759,201      $     61,620,379       $     144,138,822      $     —   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 471      $       $ 471      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 471      $       $ 471      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (3,093   $       $ (3,093   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (3,093   $       $ (3,093   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $86,467,790 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

31

 


Hartford Emerging Markets Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary – (continued)

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Warrants     Total  

Beginning balance

   $      816,910      $      816,910   

Purchases

              

Sales

              

Accrued discounts/(premiums)

              

Total realized gain/(loss)

              

Net change in unrealized appreciation/depreciation

              

Transfers into Level 3(1)

              

Transfers out of Level 3(1)

     (816,910     (816,910
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  32  

 


Hartford Global Capital Appreciation Fund

 

 

 

Diversification by Country

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Australia

     0.4

Austria

     0.1   

Belgium

     1.1   

Brazil

     0.2   

Canada

     2.8   

Chile

     0.1   

China

     6.1   

Denmark

     0.3   

Finland

     0.3   

France

     1.8   

Germany

     1.6   

Greece

     0.8   

Hong Kong

     1.4   

India

     1.2   

Ireland

     1.2   

Italy

     1.2   

Japan

     8.0   

Jersey

     0.1   

Luxembourg

     0.4   

Malaysia

     0.2   

Netherlands

     1.4   

Norway

     0.6   

Philippines

     0.1   

Poland

     0.1   

Russia

     0.1   

Singapore

     0.1   

South Korea

     0.6   

Spain

     0.3   

Sweden

     1.3   

Switzerland

     3.6   

Taiwan

     0.9   

Thailand

     0.3   

United Kingdom

     6.3   

United States

     55.8   

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     12.7

Consumer Staples

     6.4   

Energy

     6.2   

Financials

     17.8   

Health Care

     15.4   

Industrials

     10.4   

Information Technology

     19.7   

Materials

     4.3   

Telecommunication Services

     2.2   

Utilities

     3.5   
  

 

 

 

Total

     98.6
  

 

 

 

Short-Term Investments

     2.2

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

33

 


Hartford Global Capital Appreciation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8%  
      Automobiles & Components - 1.3%  
  747,660     

Chongqing Changan Automobile Co., Ltd. Class B

  $ 2,453,181   
  84,954     

Delphi Automotive plc

    7,051,182   
  15,100     

Denso Corp.

    749,651   
  441,400     

Dongfeng Motor Group Co., Ltd. Class H

    733,323   
  152,673     

Fiat Chrysler Automobiles N.V.(1)

    2,273,519   
  15,165     

Harley-Davidson, Inc.

    852,425   
  74,700     

Honda Motor Co., Ltd.

    2,504,344   
  69,800     

Musashi Seimitsu Industry Co., Ltd.

    1,477,414   
  12,300     

Toyota Industries Corp.

    696,602   
  485,000     

Xingda International Holdings Ltd.

    157,529   
   

 

 

 
      18,949,170   
   

 

 

 
      Banks - 5.8%  
  5,410,609     

Alpha Bank A.E.(1)

    1,895,907   
  931,134     

Axis Bank Ltd.

    8,312,023   
  217,891     

Banca Popolare dell-Emilia Romagna
Scrl(1)

    1,792,334   
  100,213     

Banco Santander S.A.

    757,667   
  232,300     

Bangkok Bank PCL NVDR

    1,300,255   
  5,437,255     

Bank of Ireland(1)

    2,101,899   
  69,785     

Bank of Nova Scotia

    3,850,038   
  27,151     

BNP Paribas S.A.

    1,714,620   
  340,893     

CaixaBank S.A.

    1,709,766   
  2,704,000     

China Construction Bank Class H

    2,624,866   
  146,645     

Citigroup, Inc.

    7,819,111   
  19,800     

Citizens Financial Group, Inc.

    515,790   
  3,187,400     

Eurobank Ergasias S.A.(1)

    485,219   
  24,065     

Grupo Financiero Galicia S.A. ADR

    530,393   
  175,600     

HSBC Holdings plc

    1,754,156   
  891,870     

ICICI Bank Ltd.

    4,659,436   
  12,400     

ICICI Bank Ltd. ADR

    135,532   
  2,860,000     

Industrial & Commercial Bank of China Ltd. Class H

    2,480,938   
  72,250     

JP Morgan Chase & Co.

    4,570,535   
  742,500     

Mitsubishi UFJ Financial Group, Inc.

    5,274,980   
  4,115,600     

Mizuho Financial Group, Inc.

    7,845,484   
  219,616     

Nordea Bank AB

    2,790,253   
  80,766     

Permanent TSB Group Holdings plc(1)

    453,440   
  5,180,933     

Piraeus Bank S.A.(1)

    2,312,240   
  63,908     

PNC Financial Services Group, Inc.

    5,862,281   
  158,200     

Sberbank of Russia ADR

    938,960   
  61,156     

Standard Chartered plc

    1,001,258   
  77,600     

Sumitomo Mitsui Financial Group, Inc.

    3,388,372   
  33,830     

Svenska Handelsbanken AB Class A

    1,561,557   
  71,488     

Wells Fargo & Co.

    3,938,989   
   

 

 

 
      84,378,299   
   

 

 

 
      Capital Goods - 6.7%  
  471,659     

Abengoa S.A. Class B

    1,524,468   
  16,101     

Acuity Brands, Inc.

    2,688,062   
  189,439     

AECOM(1)

    5,978,695   
  32,345     

Airbus Group N.V.

    2,241,576   
  106,098     

Arcam AB(1)

    1,652,914   
  31,508     

Assa Abloy AB Class B

    1,827,898   
  133,608     

Atlas Copco AB Class A

    4,170,305   
  550,542     

Balfour Beatty plc

    2,050,168   
  1,772,016     

Capstone Turbine Corp.(1)

    1,113,181   
  507,000     

China Lesso Group Holdings Ltd.

    372,521   
  76,848     

Cie de Saint-Gobain

    3,492,518   
  44,898     

Danaher Corp.

    3,676,248   
  76,700     

Denyo Co., Ltd.

    1,159,169   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Capital Goods - 6.7% - (continued)  
  120,543     

DigitalGlobe, Inc.(1)

  $ 3,877,868   
  11,243     

Doosan Corp.

    1,302,237   
  11,400     

Eaton Corp. plc

    783,522   
  164,376     

Ellaktor S.A.(1)

    369,011   
  63,275     

Fortune Brands Home & Security, Inc.

    2,822,065   
  36,800     

Generac Holdings, Inc.(1)

    1,534,192   
  149,800     

General Electric Co.

    4,056,584   
  2,240,480     

Jain Irrigation Systems Ltd.

    2,005,927   
  86,408     

Kone Oyj Class B

    3,717,411   
  198,151     

Lithium Technology Corp.(1)(2)(3)

    1,026,422   
  29,153     

Lockheed Martin Corp.

    5,439,950   
  115,305     

Masco Corp.

    3,054,430   
  33,100     

Mitsubishi Corp.

    714,189   
  46,796     

Owens Corning

    1,809,133   
  412,956     

QinetiQ Group plc

    1,278,094   
  15,300     

Raytheon Co.

    1,591,200   
  141,023     

Rexel S.A.

    2,657,809   
  17,284     

Rheinmetall AG

    884,903   
  13,768     

Safran S.A.

    1,005,991   
  468,500     

Sanwa Holdings Corp.

    3,535,945   
  95,635     

Schneider Electric S.A.

    7,148,561   
  20,289     

Siemens AG

    2,207,076   
  20,386     

Sulzer AG

    2,274,835   
  15,629     

Teledyne Technologies, Inc.(1)

    1,640,576   
  6,774     

TransDigm Group, Inc.

    1,436,969   
  45,183     

United Technologies Corp.

    5,139,566   
  39,066     

Wienerberger AG

    635,827   
  53,092     

Zumtobel Group AG

    1,457,273   
   

 

 

 
      97,355,289   
   

 

 

 
      Commercial & Professional Services - 0.5%  
  38,600     

ACCO Brands Corp.(1)

    303,782   
  15,138     

Clean Harbors, Inc.(1)

    836,374   
  157,104     

Experian plc

    2,805,920   
  75,535     

Knoll, Inc.

    1,719,932   
  29,895     

Robert Half International, Inc.

    1,657,678   
   

 

 

 
      7,323,686   
   

 

 

 
      Consumer Durables & Apparel - 2.7%  
  70,100     

Asics Corp.

    1,798,786   
  70,350     

Brunello Cucinelli S.p.A.

    1,304,956   
  2,561,000     

Cosmo Lady China Holdings Co., Ltd.(1)(4)

    2,145,362   
  169,710     

Crocs, Inc.(1)

    2,240,172   
  162,886     

Electrolux AB Series B

    4,877,233   
  40,244     

GoPro, Inc. Class A(1)

    2,015,420   
  34,365     

iRobot Corp.(1)

    1,114,113   
  23,368     

Kate Spade & Co.(1)

    764,134   
  224,300     

Lao Feng Xiang Co., Ltd. Class B

    1,417,127   
  47,630     

Luxottica Group S.p.A.

    3,136,763   
  9,282     

Michael Kors Holdings Ltd.(1)

    574,185   
  18,252     

Persimmon plc(1)

    473,901   
  72,515     

PulteGroup, Inc.

    1,399,540   
  1,396,880     

Samsonite International S.A.

    5,094,656   
  257,740     

Sony Corp.(1)

    7,791,928   
  44,200     

Vera Bradley, Inc.(1)

    629,408   
  12,624     

Whirlpool Corp.

    2,216,775   
   

 

 

 
      38,994,459   
   

 

 

 
      Consumer Services - 1.8%  
  220,648     

Compass Group plc

    3,900,552   
  98,730     

Hilton Worldwide Holdings, Inc.(1)

    2,859,221   
  425,836     

Kroton Educacional S.A.

    1,554,688   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  34  

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Consumer Services - 1.8% - (continued)  
  37,000     

Las Vegas Sands Corp.

  $ 1,956,560   
  41,475     

LifeLock, Inc.(1)

    605,950   
  1,055,000     

Mandarin Oriental International Ltd.

    1,710,566   
  53,104     

McDonald’s Corp.

    5,127,191   
  42,200     

Melco Crown Entertainment Ltd. ADR

    861,724   
  108,939     

New Oriental Education & Technology Group, Inc. ADR(1)

    2,787,749   
  114,619     

OPAP S.A.

    1,025,436   
  519,600     

Sands China Ltd.

    2,118,092   
  8,343     

Wyndham Worldwide Corp.

    712,492   
   

 

 

 
      25,220,221   
   

 

 

 
      Diversified Financials - 4.0%  
  245,419     

Anima Holding S.p.A.(1)(4)

    2,185,108   
  65,880     

Banca Generali S.p.A.

    2,211,080   
  14,776     

BlackRock, Inc.

    5,377,577   
  182,900     

Blackstone Group L.P.

    7,491,584   
  319,000     

BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros

    1,313,925   
  147,450     

EFG International AG(1)

    2,164,268   
  612,027     

Henderson Group plc

    2,611,519   
  51,100     

Hong Kong Exchanges and Clearing Ltd.

    1,947,944   
  215,300     

Ichiyoshi Securities Co., Ltd.

    2,311,511   
  166,320     

Julius Baer Group Ltd.(1)

    8,705,311   
  56,732     

Legg Mason, Inc.

    2,986,940   
  82,400     

Matsui Securities Co., Ltd.

    765,600   
  18,373     

McGraw Hill Financial, Inc.

    1,916,304   
  177,800     

Mitsubishi UFJ Lease & Finance Co., Ltd.

    953,769   
  19,268     

MSCI, Inc.

    1,179,009   
  64,000     

Nomad Holdings Ltd.(1)(2)(3)

    1,152,000   
  77,985     

Platform Specialty Products Corp.(1)

    2,100,916   
  58,500     

Solar Cayman Ltd.(1)(2)(3)(4)

    4,095   
  145,090     

Springleaf Holdings, Inc.(1)

    7,254,500   
  131,148     

UBS Group AG(1)

    2,619,987   
   

 

 

 
      57,252,947   
   

 

 

 
      Energy - 6.2%  
  23,345     

Anadarko Petroleum Corp.

    2,196,764   
  17,666     

Baker Hughes, Inc.

    1,209,414   
  115,008     

BG Group plc

    2,083,202   
  125,870     

Cameco Corp.

    2,213,289   
  115,630     

Canadian Natural Resources Ltd.

    3,844,112   
  68,407     

Chevron Corp.

    7,597,281   
  6,286,200     

China Suntien Green Energy Corp. Ltd. Class H

    1,689,282   
  469,004     

Cobalt International Energy, Inc.(1)

    5,018,343   
  12,000     

Diamondback Energy, Inc.(1)

    990,840   
  38,202     

Enbridge, Inc.

    1,999,111   
  214,645     

Halliburton Co.

    10,506,873   
  13,300     

Helmerich & Payne, Inc.

    1,037,001   
  4,961,000     

Hilong Holding Ltd.

    1,868,851   
  27,545     

HollyFrontier Corp.

    1,068,195   
  119,800     

Imperial Oil Ltd.

    5,280,534   
  699,983     

Karoon Gas Australia Ltd.(1)

    1,508,339   
  269,687     

Laredo Petroleum, Inc.(1)

    4,261,055   
  294,800     

Malakoff Corp. Bhd(1)

    150,483   
  46,000     

Marathon Oil Corp.

    1,430,600   
  227,534     

McDermott International, Inc.(1)

    1,194,554   
  32,285     

National Oilwell Varco, Inc.

    1,756,627   
  68,011     

Patterson-UTI Energy, Inc.

    1,520,046   
  2,000,000     

PetroChina Co., Ltd. Class H

    2,579,526   
  104,281     

Petroleum Geo-Services ASA

    692,400   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Energy - 6.2% - (continued)  
  42,423     

Pioneer Natural Resources Co.

  $ 7,329,846   
  58,666     

Rice Energy, Inc.(1)

    1,444,944   
  65,000     

Royal Dutch Shell plc Class B

    2,081,026   
  212,481     

Southwestern Energy Co.(1)

    5,955,842   
  40,069     

Total S.A.

    2,169,734   
  681,690     

Trican Well Service Ltd.

    2,881,574   
  347,959     

Tsakos Energy Navigation Ltd.

    3,194,264   
  35,927     

Whiting Petroleum Corp.(1)

    1,361,993   
   

 

 

 
      90,115,945   
   

 

 

 
      Food & Staples Retailing - 1.1%  
  29,600     

Alimentation Couche-Tard, Inc. Class B

    1,132,970   
  8,400     

CVS Health Corp.

    834,036   
  6,412     

E-Mart Co., Ltd.

    1,320,968   
  75,510     

Seven & I Holdings Co., Ltd.

    3,245,746   
  62,407     

Wal-Mart Stores, Inc.

    4,870,866   
  56,846     

Walgreens Boots Alliance, Inc.

    4,714,239   
   

 

 

 
      16,118,825   
   

 

 

 
      Food, Beverage & Tobacco - 4.8%  
  79,983     

Anheuser-Busch InBev N.V.

    9,737,792   
  114,606     

British American Tobacco plc

    6,296,864   
  886,584     

C&C Group plc

    3,592,504   
  177,558     

Coca-Cola Co.

    7,201,753   
  180,387     

Diageo plc

    5,007,969   
  331,572     

Greencore Group plc

    1,799,301   
  51,550     

Imperial Tobacco Group plc

    2,517,212   
  17,363     

Kraft Foods Group, Inc.

    1,471,514   
  2,887,600     

LT Group, Inc.

    964,034   
  175,237     

Mondelez International, Inc. Class A

    6,723,844   
  39,737     

Monster Beverage Corp.(1)

    5,448,340   
  65,780     

Nestle S.A.

    5,103,490   
  61,765     

Post Holdings, Inc.(1)

    2,899,249   
  185,546     

Treasury Wine Estates Ltd.

    813,761   
  9,284     

TreeHouse Foods, Inc.(1)

    754,418   
  103,694     

Unilever N.V.

    4,508,615   
  30,990     

Unilever N.V.(2)

    1,351,802   
  535,323     

Vina Concha y Toro S.A.

    1,091,651   
  338,200     

Yantai Changyu Pioneer Wine Co., Ltd. Class B

    1,562,155   
   

 

 

 
      68,846,268   
   

 

 

 
      Health Care Equipment & Services - 1.8%  
  27,933     

Aetna, Inc.

    2,985,200   
  35,913     

Becton Dickinson and Co.

    5,059,064   
  50,011     

Cardinal Health, Inc.

    4,217,928   
  1,847,640     

CareView Communications, Inc.(1)

    720,395   
  59,931     

Envision Healthcare Holdings, Inc.(1)

    2,274,981   
  53,759     

Medtronic plc

    4,002,357   
  17,400     

Olympus Corp.(1)

    626,573   
  40,500     

Paramount Bed Holdings Co., Ltd.

    1,097,355   
  47,227     

UnitedHealth Group, Inc.

    5,261,088   
   

 

 

 
      26,244,941   
   

 

 

 
      Household & Personal Products - 0.5%  
  16,870     

Estee Lauder Cos., Inc. Class A

    1,371,362   
  62,052     

Procter & Gamble Co.

    4,933,755   
  28,746     

Svenska Cellulosa AB SCA Class B

    727,129   
   

 

 

 
      7,032,246   
   

 

 

 
      Insurance - 4.8%  
  49,170     

ACE Ltd.

    5,260,698   
  37,301     

Ageas

    1,401,481   
  383,400     

AIA Group Ltd.

    2,549,792   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  35  

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Insurance - 4.8% - (continued)  
  293,688     

American International Group, Inc.

  $ 16,531,697   
  264,852     

Assicurazioni Generali S.p.A.

    5,174,988   
  130,249     

Delta Lloyd N.V.

    2,466,507   
  339,369     

Direct Line Insurance Group plc

    1,656,816   
  77,974     

FBD Holdings plc

    842,699   
  33,700     

Marsh & McLennan Cos., Inc.

    1,892,592   
  109,895     

MetLife, Inc.

    5,636,515   
  45,605     

Principal Financial Group, Inc.

    2,331,328   
  93,700     

Prudential Financial, Inc.

    7,645,920   
  324,000     

T&D Holdings, Inc.

    4,675,247   
  78,400     

Tokio Marine Holdings, Inc.

    3,196,030   
  45,100     

Torchmark Corp.

    2,530,561   
  46,600     

Unum Group

    1,591,856   
  12,294     

Zurich Insurance Group AG

    3,794,582   
   

 

 

 
      69,179,309   
   

 

 

 
      Materials - 4.3%  
  31,707     

Akzo Nobel N.V.(2)

    2,426,020   
  50,600     

Barrick Gold Corp.

    657,611   
  20,288     

BASF SE

    2,015,573   
  50,969     

BHP Billiton plc

    1,225,114   
  29,761     

BRAAS Monier Building Group S.A.(1)

    817,099   
  40,100     

Cabot Corp.

    1,713,874   
  41,740     

Celanese Corp. Series A

    2,769,866   
  85,393     

Constellium N.V. Class A(1)

    1,568,669   
  105,245     

CRH plc

    2,940,907   
  29,200     

Crown Holdings, Inc.(1)

    1,584,392   
  53,000     

E.I. DuPont de Nemours & Co.

    3,879,600   
  327,283     

Glencore plc(1)

    1,554,780   
  38,239     

Holcim Ltd.(1)

    3,071,757   
  78,000     

Huabao International Holdings Ltd.

    87,613   
  112,740     

International Paper Co.

    6,056,393   
  850,401     

Ivanhoe Mines Ltd. Class A(1)

    817,626   
  56,916     

Louisiana-Pacific Corp.(1)

    867,400   
  6,171     

Martin Marietta Materials, Inc.

    880,293   
  73,553     

Methanex Corp.

    4,428,626   
  223,640     

Norbord, Inc.

    4,511,726   
  23,928     

Packaging Corp. of America

    1,655,578   
  46,064     

Praxair, Inc.

    5,616,584   
  449,300     

PTT Global Chemical PCL

    868,888   
  50,265     

Reliance Steel & Aluminum Co.

    3,253,151   
  50,985     

Rio Tinto plc ADR

    2,283,618   
  61,632     

Smurfit Kappa Group plc

    1,886,954   
  532,000     

Sumitomo Osaka Cement Co., Ltd.

    1,732,698   
  12,882     

Wacker Chemie AG

    1,597,732   
   

 

 

 
      62,770,142   
   

 

 

 
      Media - 2.1%  
  10,800     

Comcast Corp. Class A

    623,808   
  23,754     

DISH Network Corp. Class A(1)

    1,607,196   
  11,269     

Loral Space & Communications, Inc.(1)

    777,561   
  51,577     

ProSiebenSat.1 Media AG

    2,636,985   
  69,400     

Quebecor, Inc. Class B

    1,908,572   
  117,492     

SES S.A.

    4,117,650   
  627,763     

Sky plc

    10,350,516   
  1,021,793     

Solocal Group(1)

    571,059   
  17,409     

Tribune Media Co. Class A

    976,123   
  180,544     

TVN S.A.(1)

    852,604   
  127,974     

Twenty-First Century Fox, Inc. Class A

    4,361,354   
  49,795     

Wolters Kluwer N.V.(2)

    1,613,236   
   

 

 

 
      30,396,664   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Pharmaceuticals, Biotechnology & Life Sciences - 13.6%  
  75,794     

Actavis plc(1)

  $ 21,439,091   
  5,017     

Agios Pharmaceuticals, Inc.(1)

    463,270   
  23,800     

Alkermes plc(1)

    1,317,806   
  11,850     

Alnylam Pharmaceuticals, Inc.(1)

    1,207,159   
  410,358     

Arena Pharmaceuticals, Inc.(1)

    1,789,161   
  182,246     

AstraZeneca plc

    12,506,921   
  137,264     

AstraZeneca plc ADR

    9,399,839   
  700     

Avalanche Biotechnologies, Inc.(1)

    22,302   
  26,079     

Biogen, Inc.(1)

    9,751,720   
  1,800     

Blueprint Medicines Corp.(1)

    33,966   
  518,948     

Bristol-Myers Squibb Co.

    33,072,556   
  11,124     

Celgene Corp.(1)

    1,202,059   
  226,865     

Eisai Co., Ltd.

    15,122,229   
  22,460     

Eli Lilly & Co.

    1,614,200   
  14,726     

Five Prime Therapeutics, Inc.(1)

    295,404   
  6,862     

Illumina, Inc.(1)

    1,264,323   
  13,497     

Incyte Corp.(1)

    1,311,369   
  51,043     

Johnson & Johnson

    5,063,466   
  429,911     

Merck & Co., Inc.

    25,605,499   
  193,520     

Mylan N.V.(1)

    13,983,755   
  27,574     

Novartis AG

    2,814,537   
  56,730     

Ono Pharmaceutical Co., Ltd.

    6,148,348   
  32,883     

Portola Pharmaceuticals, Inc.(1)

    1,173,594   
  11,626     

PTC Therapeutics, Inc.(1)

    683,028   
  3,556     

Puma Biotechnology, Inc.(1)

    642,142   
  4,493     

Receptos, Inc.(1)

    661,999   
  10,289     

Regeneron Pharmaceuticals, Inc.(1)

    4,706,806   
  23,314     

Regulus Therapeutics, Inc.(1)

    292,591   
  36,813     

Roche Holding AG

    10,534,227   
  17,525     

TESARO, Inc.(1)

    954,587   
  976,499     

TherapeuticsMD, Inc.(1)

    6,327,714   
  55,771     

UCB S.A.

    4,017,344   
  11,205     

Vertex Pharmaceuticals, Inc.(1)

    1,381,352   
   

 

 

 
      196,804,364   
   

 

 

 
      Real Estate - 2.9%  
  39,446     

American Tower Corp. REIT

    3,728,830   
  11,240     

AvalonBay Communities, Inc. REIT

    1,847,182   
  115,020     

Castellum AB

    1,793,424   
  71,680     

CBRE Group, Inc. Class A(1)

    2,748,211   
  171,200     

City Developments Ltd.

    1,377,466   
  47,400     

Columbia Property Trust, Inc. REIT

    1,243,302   
  255,581     

Deutsche Annington Immobilien SE

    8,578,605   
  66,372     

Deutsche Wohnen AG

    1,740,916   
  89,960     

E-House China Holdings Ltd. ADR

    611,728   
  129,152     

Grivalia Properties REIC

    1,026,475   
  529,209     

Hibernia plc REIT

    736,836   
  16,609     

ICADE REIT

    1,444,580   
  499,600     

Leopalace21 Corp.(1)

    2,881,420   
  186,920     

Mitsui Fudosan Co., Ltd.

    5,541,112   
  1,440,664     

New South Resources Ltd.(1)

    1,833,490   
  78,585     

Realogy Holdings Corp.(1)

    3,725,715   
  111,371     

UNITE Group plc

    1,024,017   
  4,081     

WeWork Companies, Inc. Class A(1)(2)(3)

    61,158   
   

 

 

 
      41,944,467   
   

 

 

 
      Retailing - 4.5%  
  63,081     

Advance Auto Parts, Inc.

    9,020,583   
  727,000     

Allstar Co.(1)(2)(3)

    748,810   
  31,761     

Amazon.com, Inc.(1)

    13,396,155   
  22,115     

CST Brands, Inc.

    922,417   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  36  

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Retailing - 4.5% - (continued)  
  35,595     

GNC Holdings, Inc. Class A

  $ 1,532,365   
  391,935     

Groupon, Inc.(1)

    2,712,190   
  15,687     

HSN, Inc.

    979,183   
  4,893     

Hyundai Home Shopping Network Corp.

    615,194   
  1,439,500     

Intime Retail Group Co., Ltd.

    1,609,559   
  5,907     

JAND Inc. Class A(1)(2)(3)

    61,059   
  11,715     

L Brands, Inc.

    1,046,852   
  40,139     

Lowe’s Cos., Inc.

    2,763,972   
  475,000     

Luk Fook Holdings International Ltd.

    1,485,215   
  2,900,000     

Maoye International Holdings Ltd.

    642,524   
  116,526     

Marks & Spencer Group plc

    986,800   
  7,222     

Netflix, Inc.(1)

    4,019,043   
  39,400     

Rakuten, Inc.

    688,336   
  76,675     

Rent-A-Center, Inc.

    2,269,580   
  7,799     

Signet Jewelers Ltd.

    1,046,080   
  82,374     

TJX Cos., Inc.

    5,316,418   
  46,855     

Urban Outfitters, Inc.(1)

    1,876,074   
  297,334     

Vipshop Holdings Ltd. ADR(1)

    8,411,579   
  62,452     

Zalando SE(1)(4)

    1,912,287   
  544,555     

Zhongsheng Group Holdings Ltd.

    496,989   
   

 

 

 
      64,559,264   
   

 

 

 
      Semiconductors & Semiconductor Equipment - 4.4%  
  111,217     

Applied Materials, Inc.

    2,200,984   
  157,671     

Cypress Semiconductor Corp.(1)

    2,100,182   
  9,523,035     

GCL-Poly Energy Holdings Ltd.(1)

    2,880,070   
  330,806     

Globalwafers Co., Ltd.(1)

    1,026,032   
  216,840     

Intel Corp.

    7,058,142   
  247,976     

Maxim Integrated Products, Inc.

    8,141,052   
  93,071     

Micron Technology, Inc.(1)

    2,618,087   
  99,748     

NXP Semiconductors N.V.(1)

    9,587,778   
  106,850     

SK Hynix, Inc.

    4,571,583   
  574,070     

Sumco Corp.

    8,661,671   
  66,705     

SunEdison Semiconductor Ltd.(1)

    1,489,523   
  190,352     

SunEdison, Inc.(1)

    4,819,713   
  194,043     

SunPower Corp.(1)

    6,246,244   
  91,200     

Taiwan Semiconductor Manufacturing Co., Ltd. ADR

    2,228,928   
   

 

 

 
      63,629,989   
   

 

 

 
      Software & Services - 10.8%  
  112,316     

21Vianet Group, Inc. ADR(1)

    2,310,340   
  112,285     

Accenture plc Class A

    10,403,205   
  447,417     

Activision Blizzard, Inc.

    10,207,819   
  19,515     

Adobe Systems, Inc.(1)

    1,484,311   
  63,812     

Akamai Technologies, Inc.(1)

    4,708,049   
  123,075     

Alibaba Group Holding Ltd. ADR(1)

    10,004,767   
  35,622     

AOL, Inc.(1)

    1,421,318   
  6,200     

Apigee Corp.(1)

    89,714   
  48,051     

Automatic Data Processing, Inc.

    4,062,231   
  46,644     

Baidu, Inc. ADR(1)

    9,341,860   
  32,200     

ChinaCache International Holdings Ltd. ADR(1)

    453,698   
  98,400     

Comverse, Inc.(1)

    2,410,800   
  24,421     

CoStar Group, Inc.(1)

    4,992,385   
  236,511     

Coupons.com, Inc.(1)

    2,963,483   
  183,138     

Enernoc, Inc.(1)

    2,023,675   
  26,100     

Envestnet, Inc.(1)

    1,337,886   
  111,292     

Facebook, Inc. Class A(1)

    8,766,471   
  320,000     

Fujitsu Ltd.

    2,121,074   
  3,100     

GoDaddy, Inc. Class A(1)

    77,717   
  171,078     

Gogo, Inc.(1)

    3,616,589   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Software & Services - 10.8% - (continued)  
  12,536     

Google, Inc. Class A(1)

  $ 6,879,381   
  28,280     

Google, Inc. Class C(1)

    15,196,199   
  169,900     

Kakaku.com, Inc.

    2,634,804   
  5,253     

Leju Holdings Ltd. ADR

    55,314   
  18,060     

LendingClub Corp. PIPE(1)(2)(3)

    308,281   
  306,939     

Microsoft Corp.

    14,929,513   
  459,569     

Monster Worldwide, Inc.(1)

    2,706,861   
  7,203     

NetEase, Inc. ADR

    923,353   
  693,706     

Optimal Payments plc(1)

    3,152,431   
  103,997     

Oracle Corp.

    4,536,349   
  74,186     

Pandora Media, Inc.(1)

    1,323,478   
  33,850     

Qihoo 360 Technology Co., Ltd. ADR(1)

    2,041,155   
  32,960     

Salesforce.com, Inc.(1)

    2,400,147   
  81,198     

Tangoe, Inc.(1)

    1,110,789   
  184,070     

Tencent Holdings Ltd.

    3,798,997   
  18,770     

Verint Systems, Inc.(1)

    1,153,041   
  53,162     

Workday, Inc. Class A(1)

    4,848,906   
  32,918     

Yelp, Inc.(1)

    1,296,640   
  45,577     

Zillow Group, Inc. Class A(1)

    4,450,138   
   

 

 

 
      156,543,169   
   

 

 

 
      Technology Hardware & Equipment - 3.5%  
  130,819     

Apple, Inc.

    16,371,998   
  105,060     

ARRIS Group, Inc.(1)

    3,537,895   
  5,565     

Belden, Inc.

    467,182   
  178,000     

Catcher Technology Co., Ltd.

    2,082,928   
  319,349     

Cisco Systems, Inc.

    9,206,832   
  43,820     

Hewlett-Packard Co.

    1,444,745   
  44,665     

Largan Precision Co., Ltd.

    4,475,701   
  1,106,751     

ParkerVision, Inc.(1)

    752,591   
  1,539     

Samsung Electronics Co., Ltd.

    2,018,943   
  34,050     

Stratasys Ltd.(1)

    1,275,172   
  63,275     

TE Connectivity Ltd.

    4,210,951   
  24,921     

Western Digital Corp.

    2,435,779   
  1,777,000     

WPG Holdings Ltd.

    2,223,175   
   

 

 

 
      50,503,892   
   

 

 

 
      Telecommunication Services - 2.2%  
  153,943     

Hellenic Telecommunications Organization S.A.(1)

    1,399,331   
  23,300     

Level 3 Communications, Inc.(1)

    1,303,402   
  134,600     

Nippon Telegraph & Telephone Corp.

    9,088,860   
  239,200     

NTT DoCoMo, Inc.

    4,236,825   
  108,713     

Orange S.A.

    1,790,646   
  25,205     

SoftBank Corp.

    1,575,572   
  1,086,665     

Telecom Italia S.p.A.(1)

    1,282,555   
  344,350     

Telenor ASA

    7,777,202   
  475,300     

Total Access Communication PCL NVDR

    1,248,563   
  33,200     

Verizon Communications, Inc.

    1,674,608   
   

 

 

 
      31,377,564   
   

 

 

 
      Transportation - 3.1%      
  4,521,030     

AirAsia Bhd

    2,881,577   
  47,180     

American Airlines Group, Inc.

    2,278,086   
  78,685     

Canadian National Railway Co.

    5,080,449   
  175,083     

CSX Corp.

    6,318,745   
  94,298     

Deutsche Lufthansa AG(1)

    1,312,943   
  43,720     

Deutsche Post AG

    1,439,623   
  106,225     

DSV A/S

    3,684,909   
  108,689     

Groupe Eurotunnel S.A.

    1,742,562   
  246,594     

Hertz Global Holdings, Inc.(1)

    5,139,019   
  111,600     

Hitachi Transport System Ltd.

    1,799,810   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  37  

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 96.8% - (continued)  
      Transportation - 3.1% - (continued)  
  2,498,000     

Jiangsu Expressway Co., Ltd. Class H

  $ 3,429,821   
  13,851     

Kuehne + Nagel International AG

    2,077,434   
  61,233     

United Parcel Service, Inc. Class B

    6,155,754   
  95,635     

UTi Worldwide, Inc.(1)

    863,584   
   

 

 

 
      44,204,316   
   

 

 

 
      Utilities - 3.4%      
  544,777     

Centrica plc

    2,127,074   
  241,325     

Cheung Kong Infrastructure Holdings Ltd.

    2,044,356   
  8,528,560     

China Longyuan Power Group Corp. Ltd. Class H

    10,569,380   
  352,000     

China Resources Gas Group Ltd.

    1,222,443   
  20,400     

Duke Energy Corp.

    1,582,428   
  27,200     

Edison International

    1,657,568   
  16,700     

Empresa Distribuidora Y Comercializadora Norte ADR(1)

    237,808   
  1,297,030     

ENN Energy Holdings Ltd.

    9,335,221   
  1,912,825     

Guangdong Investment Ltd.

    2,852,335   
  282,200     

Hokkaido Electric Power Co., Inc.(1)

    2,602,616   
  2,504,000     

Huadian Fuxin Energy Corp. Ltd. Class H

    1,346,809   
  4,464,000     

Huaneng Renewables Corp. Ltd. Class H

    1,948,979   
  186,600     

Kyushu Electric Power Co., Inc.(1)

    1,990,116   
  115,059     

National Grid plc

    1,547,928   
  1,331,421     

NTPC Ltd.

    3,145,657   
  12,750     

Pampa Energia S.A. ADR(1)

    207,570   
  321,986     

Snam S.p.A.

    1,677,271   
  19,100     

Southern Co.

    846,130   
  1,331,000     

Towngas China Co., Ltd.

    1,427,373   
  27,500     

Xcel Energy, Inc.

    932,525   
   

 

 

 
      49,301,587   
   

 

 

 
 

Total Common Stocks
(cost $1,331,297,940)

  $ 1,399,047,023   
   

 

 

 
CORPORATE BONDS - 0.0%  
      Electric - 0.0%      
  INR 10,357,488     

NTPC Ltd.
8.49%, 03/25/2025

  $ 20,824   
   

 

 

 
 

Total Corporate Bonds
(cost $169,013)

  $ 20,824   
   

 

 

 
PREFERRED STOCKS - 1.5%  
      Consumer Durables & Apparel - 0.1%  
  46,766     

One Kings Lane, Inc.(1)(2)(3)

  $ 663,142   
   

 

 

 
      Consumer Services - 0.0%      
  121,867     

Draftkings, Inc.(1)(2)(3)

    197,565   
   

 

 

 
      Health Care Equipment & Services - 0.1%      
  472,556     

Corindus Vascular Robotics, Inc.(3)

    2,003,637   
   

 

 

 
      Real Estate - 0.1%      
  123,147     

Redfin Corp. Series G(1)(2)(3)

    365,492   
  20,282     

WeWork Companies, Inc. Class D-1(1)(2)(3)

    303,947   
  15,935     

WeWork Companies, Inc. Class D-2(1)(2)(3)

    238,802   
   

 

 

 
      908,241   
   

 

 

 
      Retailing - 0.3%  
  22,505     

Forward Ventures LLC(1)(2)(3)

    907,852   
  5,968     

Honest Co.(1)(2)(3)

    153,258   
  13,190     

JAND Inc. Series D(1)(2)(3)

    136,342   

Shares or Principal Amount

 

Market Value*

 
PREFERRED STOCKS - 1.5% - (continued)  
      Retailing - 0.3% - (continued)  
  39,437     

Tory Burch LLC(1)(2)(3)

  $ 2,643,457   
   

 

 

 
      3,840,909   
   

 

 

 
      Software & Services - 0.8%  
  19,507     

Apigee Corp. PIPE(1)(2)(3)

    254,980   
  75,898     

Birst, Inc. Series F(1)(2)(3)

    398,981   
  14,984     

Cloudera, Inc.(1)(2)(3)

    445,025   
  10,669     

Dropbox, Inc. Series C(1)(2)(3)

    183,412   
  243,469     

Essence Holding Group(1)(2)(3)

    433,375   
  38,688     

Lookout, Inc. Series F(1)(2)(3)

    397,713   
  51,890     

MarkLogic Corp. Series F(1)(2)(3)

    542,395   
  10,966     

New Relic, Inc. PIPE Series A(1)(2)(3)

    348,170   
  46,333     

Nutanix, Inc.(1)(2)(3)

    824,264   
  49,947     

Pinterest, Inc. Series G(1)(2)(3)

    1,613,583   
  168,432     

Uber Technologies, Inc.(1)(2)(3)

    5,050,572   
  28,813     

Veracode, Inc.(1)(2)(3)

    820,594   
  160,709     

Zuora, Inc. Series F(1)(2)(3)

    549,523   
   

 

 

 
      11,862,587   
   

 

 

 
      Technology Hardware & Equipment - 0.1%  
  59,775     

Pure Storage, Inc.(1)(2)(3)

    986,288   
   

 

 

 
      Telecommunication Services - 0.0%  
  943     

DocuSign, Inc. Series B(1)(2)(3)

    18,005   
  283     

DocuSign, Inc. Series B-1(1)(2)(3)

    5,403   
  677     

DocuSign, Inc. Series D(1)(2)(3)

    12,926   
  17,536     

DocuSign, Inc. Series E(1)(2)(3)

    334,817   
  3,559     

DocuSign, Inc. Series F(1)(2)(3)

    67,952   
   

 

 

 
      439,103   
   

 

 

 
 

Total Preferred Stocks
(cost $17,690,352)

  $ 20,901,472   
   

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.0%  
      Retailing - 0.0%  
  13,926     

Honest Co. Series C(1)(2)(3)

  $ 357,620   
   

 

 

 
 

Total Convertible Preferred Stocks
(cost $376,800)

  $ 357,620   
   

 

 

 
WARRANTS - 0.2%  
      Banks - 0.0%  
  175,200     

Alpha Bank A.E.(1)

  $ 102,296   
   

 

 

 
      Diversified Financials - 0.2%      
  64,000     

Nomad Holdings Ltd.(1)(2)(3)

    160,000   
  105,165     

Platform Specialty Products Corp.(1)

    2,833,145   
   

 

 

 
      2,993,145   
   

 

 

 
 

Total Warrants
(cost $2,350,966)

  $ 3,095,441   
   

 

 

 
RIGHTS - 0.1%  
      Banks - 0.0%  
  100,213     

Banco Santander S.A.(1)

  $ 16,527   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

38

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
RIGHTS - 0.1% - (continued)  
      Software & Services - 0.1%  
  635,897     

Optimal Payments plc(1)

  $ 1,356,781   
   

 

 

 
 

Total Rights
(cost $862,374)

  $ 1,373,308   
   

 

 

 
 

Total Long-Term Investments
(cost $1,352,747,445)

  $ 1,424,795,688   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.2%  
      Other Investment Pools & Funds - 2.2%  
  32,261,981     

BlackRock Liquidity Funds TempFund Portfolio

  $ 32,261,981   
   

 

 

 
 

Total Short-Term Investments
(cost $32,261,981)

  $ 32,261,981   
   

 

 

 
 

Total Investments
(cost $1,385,009,426)^

    100.8    $ 1,457,057,669   
 

Other Assets and Liabilities

    (0.8 )%       (11,359,345
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,445,698,324   
   

 

 

    

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

39

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $1,394,072,616 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     125,282,716   

Unrealized Depreciation

     (62,297,663
  

 

 

 

Net Unrealized Appreciation

   $ 62,985,053   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

04/2014

     31,707       Akzo Nobel N.V.    $ 2,545,304   

08/2011

     727,000       Allstar Co.      316,259   

04/2014

     19,507       Apigee Corp. PIPE Preferred      416,243   

03/2015

     75,898       Birst, Inc. Series F Preferred      443,313   

02/2014

     14,984       Cloudera, Inc. Preferred      218,167   

02/2014

     943       DocuSign, Inc. Series B Preferred      12,384   

02/2014

     283       DocuSign, Inc. Series B-1 Preferred      3,716   

02/2014

     677       DocuSign, Inc. Series D Preferred      8,891   

02/2014

     17,536       DocuSign, Inc. Series E Preferred      230,290   

04/2015

     3,559       DocuSign, Inc. Series F Preferred      67,952   

12/2014

     121,867       Draftkings, Inc. Preferred      219,517   

01/2014

     10,669       Dropbox, Inc. Series C Preferred      203,791   

05/2014

     243,469       Essence Holding Group Preferred      384,997   

11/2014

     22,505       Forward Ventures LLC Preferred      700,608   

08/2014

     5,968       Honest Co. Preferred      161,478   

08/2014

     13,926       Honest Co. Series C Convertible Preferred      376,800   

04/2015

     5,907       JAND Inc.      67,844   

04/2015

     13,190       JAND Inc. Series D Preferred      151,491   

04/2014

     18,060       LendingClub Corp.      183,693   

08/2014

     198,151       Lithium Technology Corp.      965,788   

07/2014

     38,688       Lookout, Inc. Series F Preferred      441,937   

04/2015

     51,890       MarkLogic Corp. Series F Preferred      602,661   

04/2014

     10,966       New Relic, Inc. PIPE Series A Preferred      311,330   

04/2014

     64,000       Nomad Holdings Ltd.      639,360   

04/2014

     64,000       Nomad Holdings Ltd. Warrants      640   

08/2014

     46,333       Nutanix, Inc. Preferred      620,700   

01/2014

     46,766       One Kings Lane, Inc. Preferred      720,991   

03/2015

     49,947       Pinterest, Inc. Series G Preferred      1,792,870   

04/2014

     59,775       Pure Storage, Inc. Preferred      940,016   

12/2014

     123,147       Redfin Corp. Series G Preferred      406,102   

03/2007

     58,500       Solar Cayman Ltd.      17,145   

11/2013

     39,437       Tory Burch LLC Preferred      3,090,928   

06/2014

     168,432       Uber Technologies, Inc. Preferred      2,612,894   

02/2014

     30,990       Unilever N.V.      1,236,109   

08/2014

     28,813       Veracode, Inc. Preferred      532,058   

12/2014

     4,081       WeWork Companies, Inc.      67,953   

12/2014

     20,282       WeWork Companies, Inc. Class D-1 Preferred      337,719   

12/2014

     15,935       WeWork Companies, Inc. Class D-2 Preferred      265,336   

04/2014

     49,795       Wolters Kluwer N.V.      1,442,107   

01/2015

     160,709       Zuora, Inc. Series F Preferred      610,582   
        

 

 

 
         $     24,367,964   
        

 

 

 

 

   At April 30, 2015, the aggregate value of these securities were $28,168,338, which represents 1.9% of total net assets.

 

The accompanying notes are an integral part of these financial statements.

 

 

40

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $24,712,965, which represents 1.7% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $6,246,852, which represents 0.4% of total net assets.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market Value*      Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/04/15       MSC    $ 80,671       $ 78,739       $ (1,932

CAD

   Sell      05/04/15       CBA      149,964         149,320         644   

CHF

   Buy      05/04/15       MSC      140,775         141,582         807   

EUR

   Buy      05/04/15       DEUT      3,076,014         3,093,231         17,217   

EUR

   Buy      05/05/15       UBS      592,594         606,304         13,710   

EUR

   Buy      05/05/15       WEST      674,831         676,905         2,074   

EUR

   Buy      06/17/15       NAB      7,047,003         7,288,537         241,534   

EUR

   Buy      06/17/15       NAB      901,450         923,566         22,116   

EUR

   Buy      06/17/15       RBS      901,833         923,567         21,734   

EUR

   Sell      05/04/15       DEUT      172,714         173,681         (967

EUR

   Sell      05/05/15       DEUT      25,693         25,837         (144

EUR

   Sell      05/05/15       WEST      951,729         954,654         (2,925

EUR

   Sell      05/07/15       WEST      95,680         95,972         (292

EUR

   Sell      05/07/15       DEUT      122,341         123,022         (681

EUR

   Sell      06/17/15       NAB      5,758,759         6,086,328         (327,569

EUR

   Sell      06/17/15       RBS      5,740,581         6,085,204         (344,623

GBP

   Buy      05/01/15       GSC      1,629,091         1,620,329         (8,762

GBP

   Buy      05/01/15       HSBC      3,235,581         3,211,727         (23,854

GBP

   Buy      05/05/15       TDB      28,424         28,469         45   

GBP

   Sell      05/01/15       HSBC      303,241         301,005         2,236   

GBP

   Sell      06/17/15       BCLY      1,373,869         1,399,444         (25,575

GBP

   Sell      06/17/15       RBS      1,372,027         1,397,910         (25,883

HKD

   Sell      05/04/15       GSC      1,664,574         1,664,563         11   

HKD

   Sell      05/05/15       UBS      58,445         58,449         (4

JPY

   Buy      05/08/15       DEUT      260,475         259,448         (1,027

JPY

   Buy      06/17/15       BCLY      1,977,714         1,982,052         4,338   

JPY

   Buy      06/17/15       CBK      1,558,855         1,557,024         (1,831

JPY

   Buy      06/17/15       DEUT      1,780,619         1,773,473         (7,146

JPY

   Sell      05/01/15       DEUT      32,169         32,109         60   

JPY

   Sell      05/07/15       HSBC      43,230         43,109         121   

JPY

   Sell      05/08/15       DEUT      212,494         211,656         838   

JPY

   Sell      06/17/15       DEUT      11,099,549         11,260,464         (160,915

JPY

   Sell      06/17/15       JPM          11,098,449             11,260,464         (162,015

NOK

   Sell      05/04/15       MSC      321,772         320,075         1,697   

SEK

   Buy      05/04/15       MSC      487,441         486,982         (459

SEK

   Sell      05/04/15       MSC      3,821         3,817         4   
                 

 

 

 

Total

                  $     (767,418
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

41

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBS

   RBS Greenwich Capital

TDB

   Toronto Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

INR

   Indian Rupee

JPY

   Japanese Yen

NOK

   Norwegian Krone

SEK

   Swedish Krona
Other Abbreviations:

ADR

   American Depositary Receipt

NVDR

   Non-Voting Depositary Receipt

PIPE

   Private Investment in Public Equity

REIC

   Real Estate Investment Company

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  42  

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Automobiles & Components

   $ 18,949,170      $ 7,903,607       $ 11,045,563      $   

Banks

     84,378,299        27,676,109         56,702,190          

Capital Goods

     97,355,289        50,785,509         45,543,358        1,026,422   

Commercial & Professional Services

     7,323,686        4,517,766         2,805,920          

Consumer Durables & Apparel

     38,994,459        13,675,830         25,318,629          

Consumer Services

     25,220,221        16,465,575         8,754,646          

Diversified Financials

     57,252,947        27,519,839         28,577,013        1,156,095   

Energy

     90,115,945        75,443,585         14,672,360          

Food & Staples Retailing

     16,118,825        11,552,111         4,566,714          

Food, Beverage & Tobacco

     68,846,268        31,661,539         37,184,729          

Health Care Equipment & Services

     26,244,941        24,521,013         1,723,928          

Household & Personal Products

     7,032,246        6,305,117         727,129          

Insurance

     69,179,309        46,730,373         22,448,936          

Materials

     62,770,142        43,413,895         19,356,247          

Media

     30,396,664        11,107,218         19,289,446          

Pharmaceuticals, Biotechnology & Life Sciences

     196,804,364        145,660,758         51,143,606          

Real Estate

     41,944,467        15,665,821         26,217,488        61,158   

Retailing

     64,559,264        57,224,778         6,524,617        809,869   

Semiconductors & Semiconductor Equipment

     63,629,989        47,516,665         16,113,324          

Software & Services

     156,543,169        144,527,582         11,707,306        308,281   

Technology Hardware & Equipment

     50,503,892        39,703,145         10,800,747          

Telecommunication Services

     31,377,564        2,978,010         28,399,554          

Transportation

     44,204,316        28,717,214         15,487,102          

Utilities

     49,301,587        5,464,029         43,837,558          

Corporate Bonds

     20,824                20,824          

Preferred Stocks

     20,901,472                       20,901,472   

Convertible Preferred Stocks

     357,620                       357,620   

Warrants

     3,095,441        102,296         2,833,145        160,000   

Rights

     1,373,308        1,373,308                  

Short-Term Investments

     32,261,981        32,261,981                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     1,457,057,669      $     920,474,673       $     511,802,079      $     24,780,917   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 329,186      $       $ 329,186      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 329,186      $       $ 329,186      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (1,096,604   $       $ (1,096,604   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (1,096,604   $       $ (1,096,604   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $4,359,320 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

43

 


Hartford Global Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary – (continued)

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Convertible Preferred Stocks      Preferred Stocks     Warrants      Total  

Beginning balance

   $ 3,504,119      $ 339,120       $ 12,374,269      $       $ 16,217,508   

Purchases

     457,174                5,598,151                6,055,325   

Sales

                        (1,061,270             (1,061,270

Accrued discounts/(premiums)

                                     

Total realized gain/(loss)

                    431,030                431,030   

Net change in unrealized appreciation/depreciation

     726,725        18,500         3,559,292        139,200         4,443,717   

Transfers into Level 3(1)

     656,320                       20,800         677,120   

Transfers out of Level 3(1)

         (1,982,513                                (1,982,513 )
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance

   $ 3,361,825      $     357,620       $ 20,901,472      $     160,000       $ 24,780,917   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $4,782,077.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


Hartford Global Equity Income Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     1.4

Consumer Staples

     6.7   

Energy

     6.5   

Financials

     27.3   

Health Care

     11.9   

Industrials

     8.1   

Information Technology

     12.9   

Materials

     7.7   

Telecommunication Services

     7.8   

Utilities

     5.5   
  

 

 

 

Total

     95.8
  

 

 

 

Short-Term Investments

     4.0

Other Assets & Liabilities

     0.2   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

45

 


Hartford Global Equity Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8%      
      Australia - 0.7%      
  86,533     

BHP Billiton plc

  $ 2,079,947   
   

 

 

 
      China - 4.9%  
  5,087,000     

China Construction Bank Class H

    4,938,126   
  4,214,000     

Jiangsu Expressway Co., Ltd. Class H

    5,785,935   
  3,346,000     

PetroChina Co., Ltd. Class H

    4,315,547   
   

 

 

 
      15,039,608   
   

 

 

 
      France - 4.5%  
  28,541     

ICADE REIT

    2,482,374   
  88,901     

Schneider Electric S.A.

    6,645,206   
  84,909     

Total S.A.

    4,597,818   
   

 

 

 
      13,725,398   
   

 

 

 
      Germany - 6.5%  
  185,889     

Deutsche Annington Immobilien SE

    6,239,385   
  75,134     

Deutsche Post AG

    2,474,030   
  114,166     

Deutsche Wohnen AG

    2,994,536   
  87,387     

ProSiebenSat.1 Media AG

    4,467,849   
  35,495     

Siemens AG

    3,861,214   
   

 

 

 
      20,037,014   
   

 

 

 
      Italy - 1.3%  
  200,519     

Assicurazioni Generali S.p.A.

    3,917,975   
   

 

 

 
      Japan - 8.8%  
  72,492     

Eisai Co., Ltd.

    4,832,128   
  56,900     

Mitsubishi Corp.

    1,227,714   
  748,800     

Mitsubishi UFJ Financial Group, Inc.

    5,319,737   
  161,500     

Nippon Telegraph & Telephone Corp.

    10,905,281   
  267,400     

NTT DoCoMo, Inc.

    4,736,317   
   

 

 

 
      27,021,177   
   

 

 

 
      Netherlands - 3.5%  
  41,885     

Akzo Nobel N.V.(1)

    3,204,777   
  185,930     

Delta Lloyd N.V.

    3,520,931   
  127,786     

Royal Dutch Shell plc Class B

    4,091,169   
   

 

 

 
      10,816,877   
   

 

 

 
      Norway - 1.7%  
  232,984     

Telenor ASA

    5,261,983   
   

 

 

 
      Spain - 1.1%  
  649,896     

CaixaBank S.A.

    3,259,586   
   

 

 

 
      Sweden - 3.5%  
  197,673     

Castellum AB

    3,082,173   
  404,421     

Nordea Bank AB

    5,138,227   
  58,139     

Svenska Handelsbanken AB Class A

    2,683,634   
   

 

 

 
      10,904,034   
   

 

 

 
      Switzerland - 6.2%  
  32,542     

Roche Holding AG

    9,312,059   
  31,367     

Zurich Insurance Group AG

    9,681,524   
   

 

 

 
      18,993,583   
   

 

 

 
      Taiwan - 1.4%  
  877,083     

Taiwan Semiconductor Manufacturing Co., Ltd.

    4,222,516   
   

 

 

 
      Thailand - 0.5%  
  835,200     

PTT Global Chemical PCL

    1,615,168   
   

 

 

 
      United Kingdom - 11.6%  
  72,912     

AstraZeneca plc

    5,003,702   
  16,991     

AstraZeneca plc ADR

    1,163,544   
  201,546     

British American Tobacco plc

    11,073,658   
  1,012,848     

Centrica plc

    3,954,651   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.8% - (continued)      
      United Kingdom - 11.6% - (continued)  
  1,033,913     

Henderson Group plc

  $ 4,411,706   
  323,386     

HSBC Holdings plc

    3,230,464   
  197,738     

National Grid plc

    2,660,237   
  50,349     

Unilever N.V.(1)

    2,196,253   
  210,386     

UNITE Group plc

    1,934,425   
   

 

 

 
      35,628,640   
   

 

 

 
      United States - 39.6%  
  21,825     

Apple, Inc.

    2,731,399   
  7,500     

BlackRock, Inc.

    2,729,550   
  63,076     

Bristol-Myers Squibb Co.

    4,019,833   
  35,095     

Chevron Corp.

    3,897,651   
  114,500     

Cisco Systems, Inc.

    3,301,035   
  66,500     

Coca-Cola Co.

    2,697,240   
  6,269     

Dropbox, Inc. Class B(1)(2)(3)

    107,771   
  52,000     

Duke Energy Corp.

    4,033,640   
  80,700     

E.I. DuPont de Nemours & Co.

    5,907,240   
  20,500     

Eaton Corp. plc

    1,408,965   
  49,500     

Edison International

    3,016,530   
  114,340     

General Electric Co.

    3,096,327   
  335,830     

Intel Corp.

    10,931,267   
  204,971     

International Paper Co.

    11,011,042   
  81,900     

JP Morgan Chase & Co.

    5,180,994   
  32,655     

Kraft Foods Group, Inc.

    2,767,511   
  93,500     

Marathon Oil Corp.

    2,907,850   
  56,600     

Marsh & McLennan Cos., Inc.

    3,178,656   
  271,170     

Maxim Integrated Products, Inc.

    8,902,511   
  207,766     

Merck & Co., Inc.

    12,374,543   
  49,700     

MetLife, Inc.

    2,549,113   
  190,600     

Microsoft Corp.

    9,270,784   
  79,300     

PNC Financial Services Group, Inc.

    7,274,189   
  24,600     

Procter & Gamble Co.

    1,955,946   
  32,900     

Southern Co.

    1,457,470   
  62,351     

Verizon Communications, Inc.

    3,144,984   
  47,200     

Xcel Energy, Inc.

    1,600,552   
   

 

 

 
      121,454,593   
   

 

 

 
 

Total Common Stocks
(cost $285,967,153)

  $ 293,978,099   
   

 

 

 
PREFERRED STOCKS - 0.0%  
      United States - 0.0%  
  2,478     

Pure Storage, Inc.(1)(2)(3)

  $ 40,887   
   

 

 

 
 

Total Preferred Stocks
(cost $38,969)

  $ 40,887   
   

 

 

 
WARRANTS - 0.0%  
      United States - 0.0%  
  1,471     

Imperial Holdings, Inc.(1)(2)

  $   
   

 

 

 
 

Total Warrants
(cost $—)

  $   
   

 

 

 
 

Total Long-Term Investments
(cost $286,006,122)

  $ 294,018,986   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

46

 


Hartford Global Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 4.0%  
      Other Investment Pools & Funds - 4.0%  
  12,400,311     

BlackRock Liquidity Funds TempFund Portfolio

  $ 12,400,311   
   

 

 

 
 

Total Short-Term Investments
(cost $12,400,311)

  $ 12,400,311   
   

 

 

 
 

Total Investments
(cost $298,406,433)^

    99.8    $ 306,419,297   
 

Other Assets and Liabilities

    0.2      662,448   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     307,081,745   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

47

 


Hartford Global Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $298,424,120 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 19,943,847   

Unrealized Depreciation

         (11,948,670)   
  

 

 

 

Net Unrealized Appreciation

   $ 7,995,177   
  

 

 

 

 

(1)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
04/2015        41,885      

Akzo Nobel N.V.

     $ 3,077,646   
05/2012        6,269      

Dropbox, Inc.

       56,745   
04/2014        1,471      

Imperial Holdings, Inc. Warrants

         
04/2014        2,478      

Pure Storage, Inc. Preferred

       38,969   
04/2015        50,349      

Unilever N.V.

       2,204,511   
            

 

 

 
             $     5,377,871   
            

 

 

 

At April 30, 2015, the aggregate value of these securities were $5,549,688, which represents 1.7% of total net assets.

 

(2)  Non-income producing.

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $148,658, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

Foreign Currency Contracts Outstanding at April 30, 2015

 

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Buy      06/17/15       NAB    $     12,910,997       $     13,353,517       $ 442,520   

EUR

   Sell      06/17/15       NAB      6,317,944         6,677,320         (359,376

EUR

   Sell      06/17/15       RBS      6,298,104         6,676,197         (378,093

SEK

   Buy      05/04/15       MSC      931,398         930,521         (877
                 

 

 

 

Total

                  $     (295,826)   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBS

   RBS Greenwich Capital
Currency Abbreviations:

EUR

   Euro

SEK

   Swedish Krona
Other Abbreviations:

ADR

   American Depositary Receipt

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  48  

 


Hartford Global Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Australia

   $ 2,079,947      $       $ 2,079,947      $   

China

     15,039,608                15,039,608          

France

     13,725,398                13,725,398          

Germany

     20,037,014                20,037,014          

Italy

     3,917,975                3,917,975          

Japan

     27,021,177                27,021,177          

Netherlands

     10,816,877        3,520,931         7,295,946          

Norway

     5,261,983                5,261,983          

Spain

     3,259,586                3,259,586          

Sweden

     10,904,034                10,904,034          

Switzerland

     18,993,583                18,993,583          

Taiwan

     4,222,516                4,222,516          

Thailand

     1,615,168        1,615,168                  

United Kingdom

     35,628,640        3,097,969         32,530,671          

United States

     121,454,593        121,346,822                107,771   

Preferred Stocks

     40,887                       40,887   

Warrants

                             

Short-Term Investments

     12,400,311        12,400,311                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     306,419,297      $     141,981,201       $     164,289,438      $     148,658   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 442,520      $       $ 442,520      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 442,520      $       $ 442,520      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (738,346   $       $ (738,346   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (738,346   $       $ (738,346   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $2,270,790 were transferred from Level 1 to Level 2, and investments valued at $7,501,496 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

49

 


Hartford Global Equity Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary – (continued)

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Preferred Stocks      Total  

Beginning balance

   $ 97,132      $ 35,072       $ 132,204   

Purchases

                      

Sales

     (15,050             (15,050

Accrued discounts/(premiums)

                      

Total realized gain/(loss)

     7,899                7,899   

Net change in unrealized appreciation/depreciation

     17,790        5,815         23,605   

Transfers into Level 3(1)

                      

Transfers out of Level 3(1)

                      
  

 

 

   

 

 

    

 

 

 

Ending balance

   $     107,771      $     40,887       $     148,658   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $11,055.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  50  

 


Hartford International Capital Appreciation Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     15.8

Consumer Staples

     8.0   

Energy

     2.5   

Financials

     19.2   

Health Care

     9.7   

Industrials

     14.1   

Information Technology

     13.2   

Materials

     6.7   

Telecommunication Services

     3.9   

Utilities

     3.2   
  

 

 

 

Total

     96.3
  

 

 

 

Short-Term Investments

     3.2

Other Assets & Liabilities

     0.5   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

51

 


The Hartford International Capital Appreciation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1%  
      Argentina - 0.5%  
  701     

Banco Macro S.A. ADR

  $ 38,730   
  3,090     

Empresa Distribuidora Y Comercializadora Norte ADR(1)

    44,002   
  1,767     

Grupo Financiero Galicia S.A. ADR

    38,945   
  1,665     

Pampa Energia S.A. ADR(1)

    27,106   
  821     

YPF Sociedad Anonima ADR

    25,073   
   

 

 

 
      173,856   
   

 

 

 
      Australia - 2.4%  
  13,690     

ALE Property Group REIT

    41,029   
  32,605     

Alumina Ltd.

    39,564   
  36,125     

Aquarius Platinum Ltd.(1)

    4,919   
  6,645     

Austbrokers Holdings Ltd.

    44,897   
  26,533     

Dick Smith Holdings Ltd.

    43,738   
  1,360     

Domino’s Pizza Enterprises Ltd.

    39,142   
  8,221     

Energy Resources of Australia Ltd.(1)

    8,718   
  16,471     

Federation Centres REIT

    38,267   
  22,743     

Karoon Gas Australia Ltd.(1)

    49,007   
  270,238     

Mirabela Nickel Ltd.(1)

    28,356   
  35,254     

New South Resources Ltd.(1)

    44,867   
  8,185     

Nufarm Ltd.

    46,911   
  22,226     

Orora Ltd.

    38,670   
  12,135     

Qantas Airways Ltd.(1)

    32,436   
  34,797     

Resolute Mining Ltd.(1)

    9,387   
  106,224     

Spotless Group Holdings Ltd.

    190,877   
  33,713     

Surfstitch Group Ltd.(1)

    44,820   
  8,723     

Treasury Wine Estates Ltd.

    38,257   
  17,405     

Western Areas Ltd.

    50,521   
   

 

 

 
      834,383   
   

 

 

 
      Austria - 0.0%  
  470     

Zumtobel Group AG

    12,901   
   

 

 

 
      Belgium - 1.7%  
  1,574     

Ageas

    59,139   
  5,286     

AGFA-Gevaert N.V.(1)

    13,283   
  2,932     

Anheuser-Busch InBev N.V.

    356,966   
  879     

Mobistar S.A.(1)

    16,779   
  934     

N.V. Bekaert S.A.

    27,135   
  1,448     

UCB S.A.

    104,303   
   

 

 

 
      577,605   
   

 

 

 
      Brazil - 1.0%  
  10,440     

BR Malls Participacoes S.A.

    56,827   
  6,413     

Cia Energetica de Minas Gerais ADR

    31,552   
  3,300     

Cielo S.A.

    45,936   
  400     

HRT Participacoes em Petroleo S.A.(1)

    617   
  2,889     

Itau Unibanco Holding S.A. ADR

    37,037   
  4,116     

Petroleo Brasileiro S.A. ADR(1)

    39,102   
  4,400     

Raia Drogasil S.A.

    49,944   
  2,100     

Smiles S.A.

    35,477   
  2,000     

Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A

    31,099   
   

 

 

 
      327,591   
   

 

 

 
      Canada - 1.4%  
  6,670     

Alimentation Couche-Tard, Inc. Class B

    255,301   
  2,260     

Barrick Gold Corp.

    29,371   
  5,150     

Centerra Gold, Inc.

    26,636   
  5,983     

Eldorado Gold Corp.

    29,676   
  1,609     

EnCana Corp.

    22,845   
  18,300     

Ivanhoe Mines Ltd. Class A(1)

    17,595   
  12,864     

Kinross Gold Corp.(1)

    31,259   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Canada - 1.4% - (continued)  
  4,750     

Legacy Oil + Gas, Inc.(1)

  $ 11,378   
  1,781     

Northern Dynasty Minerals Ltd.(1)

    694   
  1,847     

Painted Pony Petroleum Ltd.(1)

    11,436   
  5,250     

Uranium Participation Corp.(1)

    24,324   
   

 

 

 
      460,515   
   

 

 

 
      Chile - 0.1%  
  63,180     

Colbun S.A.

    19,115   
   

 

 

 
      China - 7.3%      
  7,415     

21Vianet Group, Inc. ADR(1)

    152,526   
  5,420     

AAC Technologies Holdings, Inc.

    28,611   
  1,120     

Alibaba Group Holding Ltd. ADR(1)

    91,045   
  709     

Baidu, Inc. ADR(1)

    141,998   
  147,000     

China Construction Bank Class H

    142,698   
  95,000     

China Lesso Group Holdings Ltd.

    69,802   
  5,000     

China Mengniu Dairy Co., Ltd.

    25,321   
  6,840     

ChinaCache International Holdings Ltd.

    96,376   
  800     

ChinaCache International Holdings Ltd. ADR(1)

    11,272   
  62,000     

Daphne International Holdings Ltd.

    17,279   
  51,730     

Dongfeng Motor Group Co., Ltd. Class H

    85,942   
  9,111     

E-House China Holdings Ltd. ADR

    61,955   
  13,400     

ENN Energy Holdings Ltd.

    96,445   
  445,765     

Greatview Aseptic Packaging Co., Ltd.

    268,603   
  3,040     

Hollysys Automation Technologies Ltd.

    66,789   
  231,000     

Huadian Fuxin Energy Corp. Ltd. Class H

    124,246   
  165,690     

Industrial & Commercial Bank of China Ltd. Class H

    143,730   
  1,383     

Leju Holdings Ltd. ADR

    14,563   
  209,500     

Maoye International Holdings Ltd.

    46,417   
  483     

NetEase, Inc. ADR

    61,916   
  7,480     

New Oriental Education & Technology Group, Inc. ADR(1)

    191,413   
  3,698     

Phoenix New Media Ltd. ADR(1)

    26,663   
  1,706     

Qihoo 360 Technology Co., Ltd. ADR(1)

    102,872   
  3,328     

Sinovac Biotech Ltd.(1)

    16,440   
  16,640     

Sunny Optical Technology Group Co., Ltd.

    37,029   
  4,000     

Tencent Holdings Ltd.

    82,555   
  6,347     

WuXi PharmaTech Cayman, Inc. ADR(1)

    274,000   
  83,600     

Xingda International Holdings Ltd.

    27,153   
   

 

 

 
      2,505,659   
   

 

 

 
      Denmark - 2.0%  
  1,319     

D/S Norden A/S(1)

    26,464   
  12,712     

DSV A/S

    440,975   
  8,997     

H. Lundbeck A/S(1)

    175,000   
  117     

Royal Unibrew A/S

    22,398   
  3,174     

Spar Nord Bank AS

    34,297   
   

 

 

 
      699,134   
   

 

 

 
      Finland - 0.9%  
  5,086     

Kone Oyj Class B

    218,808   
  2,051     

Sampo Oyj Class A

    99,380   
   

 

 

 
      318,188   
   

 

 

 
      France - 9.9%  
  558     

Alten S.A.

    27,237   
  1,160     

BNP Paribas S.A.

    73,256   
  512     

Cap Gemini S.A.

    45,617   
  1,827     

Cie de Saint-Gobain

    83,032   
  13,239     

Credit Agricole S.A.

    205,977   
  293     

Devoteam S.A.

    7,831   
  9,168     

Edenred

    245,788   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  52  

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      France - 9.9% - (continued)  
  2,731     

Essilor International S.A.

  $ 332,718   
  3,117     

GDF Suez

    63,420   
  569     

GFI Informatique S.A.

    3,885   
  4,564     

JCDecaux S.A.

    180,296   
  984     

L’Oreal S.A.

    187,787   
  493     

Lafarge S.A.

    35,972   
  3,538     

Legrand S.A.

    204,577   
  1,525     

Metropole Television S.A.

    31,828   
  9,999     

Orange S.A.

    164,697   
  1,361     

Pernod Ricard S.A.

    169,150   
  2,476     

Peugeot S.A.(1)

    46,810   
  3,099     

Renault S.A.

    326,070   
  1,601     

Sanofi

    162,966   
  1,538     

Schneider Electric S.A.

    114,963   
  1,311     

Societe Generale S.A.

    65,543   
  593     

Sopra Steria Group

    52,374   
  847     

Thales S.A.

    51,562   
  2,150     

Total S.A.

    116,422   
  1,650     

Valeo S.A.

    264,527   
  5,056     

Vallourec S.A.

    119,225   
   

 

 

 
      3,383,530   
   

 

 

 
      Germany - 3.9%  
  1,240     

Bayer AG

    178,476   
  1,593     

Beiersdorf AG

    138,568   
  3,837     

Deutsche Annington Immobilien SE

    128,789   
  3,872     

Deutsche Lufthansa AG(1)

    53,401   
  2,570     

E.ON SE

    40,010   
  836     

Hamburger Hafen und Logistik AG

    18,439   
  365     

HUGO BOSS AG

    44,913   
  10,386     

Infineon Technologies AG

    122,106   
  2,132     

Kontron AG(1)

    12,033   
  774     

Norma Group SE

    41,113   
  428     

OSRAM Licht AG

    22,549   
  2,604     

ProSiebenSat.1 Media AG

    133,135   
  1,218     

Rheinmetall AG

    62,359   
  1,296     

RWE AG

    32,205   
  942     

Salzgitter AG

    32,132   
  2,219     

Suedzucker AG

    33,445   
  5,733     

Tom Tailor Holding AG(1)

    70,865   
  1,443     

United Internet AG

    64,515   
  405     

Volkswagen AG (Preference Shares)

    104,266   
   

 

 

 
      1,333,319   
   

 

 

 
      Greece - 0.4%  
  40,218     

Alpha Bank A.E.(1)

    14,092   
  12,289     

Hellenic Telecommunications Organization
S.A.(1)

    111,706   
  34,575     

Piraeus Bank S.A.(1)

    15,431   
   

 

 

 
      141,229   
   

 

 

 
      Hong Kong - 3.5%  
  6,985     

AIA Group Ltd.

    46,453   
  110,175     

AMVIG Holdings Ltd.

    60,272   
  12,700     

Brilliance China Automotive Holdings Ltd.

    23,834   
  10,200     

Cafe de Coral Holdings Ltd.

    38,245   
  80,000     

China High Precision Automation Group
Ltd.(1)(2)(3)

      
  6,372     

China Merchants Holdings International Co., Ltd.

    28,908   
  16,500     

China Overseas Land & Investment Ltd.

    68,729   
  34,400     

China Resources Gas Group Ltd.

    119,466   
  48,800     

China Unicom Hong Kong Ltd.

    91,653   
  504,000     

CST Mining Group Ltd.(1)

    6,423   
  2,500     

Dah Sing Financial Holdings Ltd.

    17,551   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Hong Kong - 3.5% - (continued)  
  636,000     

G-Resources Group Ltd.(1)

  $ 20,952   
  178,890     

Global Brands Group Holding Ltd.(1)

    36,593   
  37,220     

Guangdong Investment Ltd.

    55,501   
  3,000     

Hong Kong Exchanges and Clearing Ltd.

    114,361   
  47,200     

Huabao International Holdings Ltd.

    53,017   
  54,500     

Kingboard Laminates Holdings Ltd.

    27,943   
  28,000     

New World Department Store China Ltd.

    8,056   
  144,530     

Pacific Basin Shipping Ltd.

    53,523   
  27,130     

PAX Global Technology Ltd.(1)

    39,414   
  18,700     

Sands China Ltd.

    76,228   
  12,130     

Techtronic Industries Co., Ltd.

    42,927   
  203,245     

Tongda Group Holdings Ltd.

    36,308   
  37,363     

Towngas China Co., Ltd.

    40,068   
  152,150     

Trinity Ltd.

    33,302   
  101,000     

Xinyi Glass Holdings Ltd.

    67,305   
   

 

 

 
      1,207,032   
   

 

 

 
      Hungary - 0.2%  
  18,754     

Magyar Telekom Telecommunications plc(1)

    28,071   
  1,499     

OTP Bank plc

    33,146   
   

 

 

 
      61,217   
   

 

 

 
      India - 0.6%  
  6,570     

Allahabad Bank(1)

    10,658   
  2,471     

Canara Bank

    14,696   
  9,040     

Corp. Bank

    8,092   
  11,910     

ICICI Bank Ltd. ADR

    130,176   
  35,686     

Manappuram Finance Ltd.

    19,424   
  7,427     

NTPC Ltd.

    17,547   
   

 

 

 
      200,593   
   

 

 

 
      Ireland - 0.6%  
  194,603     

Bank of Ireland(1)

    75,228   
  4,791     

CRH plc

    133,877   
   

 

 

 
      209,105   
   

 

 

 
      Italy - 2.1%  
  2,191     

Banca Generali S.p.A.

    73,535   
  19,478     

Banca Popolare dell-Emilia Romagna Scrl(1)

    160,223   
  3,230     

Buzzi Unicem S.p.A.

    51,987   
  1,070     

DiaSorin S.p.A.

    48,923   
  4,269     

Eni S.p.A.

    81,904   
  34,606     

Intesa Sanpaolo S.p.A.

    116,259   
  2,021     

Luxottica Group S.p.A.

    133,097   
  6,426     

UniCredit S.p.A.

    46,126   
   

 

 

 
      712,054   
   

 

 

 
      Japan - 19.9%  
  1,450     

Adastria Holdings Co., Ltd.

    43,988   
  800     

Aeon Delight Co., Ltd.

    21,186   
  4,725     

Aeon Mall Co., Ltd.

    88,140   
  4,000     

Aichi Steel Corp.

    19,229   
  2,100     

Aisan Industry Co., Ltd.

    19,768   
  300     

Alpha Systems, Inc.

    4,438   
  750     

Asahi Group Holdings Ltd.

    24,118   
  1,400     

Avex Group Holdings, Inc.

    21,607   
  1,750     

Bandai Namco Holdings, Inc.

    35,951   
  6,835     

Bridgestone Corp.

    286,275   
  2,000     

Canon, Inc.

    71,309   
  1,100     

Cawachi Ltd.

    17,659   
  1,470     

Chubu Steel Plate Co., Ltd.

    6,227   
  1,000     

CMIC Holdings Co., Ltd.

    14,853   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  53  

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Japan - 19.9% - (continued)  
  2,900     

Dai-ichi Life Insurance Co., Ltd.

  $ 47,664   
  1,650     

Daiichi Sankyo Co., Ltd.

    28,658   
  2,300     

Dena Co., Ltd.

    45,945   
  1,715     

Denso Corp.

    85,142   
  300     

East Japan Railway Co.

    26,516   
  3,000     

Eighteenth Bank Ltd.

    9,820   
  2,350     

Eisai Co., Ltd.

    156,645   
  1,400     

en-japan, Inc.

    20,799   
  1,300     

Exedy Corp.

    31,927   
  700     

Fuji Machine Manufacturing Co., Ltd.

    8,638   
  700     

Fujimi, Inc.

    11,837   
  35,020     

Fujitsu Ltd.

    232,125   
  2,500     

Funai Electric Co., Ltd.(1)

    29,534   
  700     

Gendai Agency, Inc.

    4,033   
  4,000     

Gree, Inc.

    25,826   
  1,400     

Hisaka Works Ltd.

    12,845   
  1,400     

Hitachi Chemical Co., Ltd.

    27,098   
  1,749     

Hitachi Metals Ltd.

    27,353   
  2,400     

Honda Motor Co., Ltd.

    80,461   
  1,920     

Honeys Co., Ltd.

    17,331   
  4,300     

Hosiden Corp.

    25,156   
  8,500     

Inpex Corp.

    106,678   
  1,800     

Itochu Techno-Solutions Corp.

    40,993   
  500     

Japan Digital Laboratory Co., Ltd.

    7,615   
  1,000     

Japan Petroleum Exploration Co., Ltd.

    38,495   
  9,000     

Japan Steel Works Ltd.

    41,534   
  2,200     

JSR Corp.

    37,526   
  9,500     

KDDI Corp.

    224,792   
  2,400     

Keihin Corp.

    39,311   
  1,700     

Kuroda Electric Co., Ltd.

    30,561   
  1,100     

Kyoei Steel Ltd.

    18,018   
  8,900     

Kyushu Electric Power Co., Inc.(1)

    94,920   
  4,480     

Leopalace21 Corp.(1)

    25,838   
  1,100     

Maruichi Steel Tube Ltd.

    27,783   
  1,300     

Melco Holdings, Inc.

    26,820   
  1,200     

Mimasu Semiconductor Industry Co., Ltd.

    13,750   
  1,000     

Miraial Co., Ltd.

    12,123   
  6,340     

Mitsubishi Electric Corp.

    82,799   
  2,175     

Mitsubishi Estate Co., Ltd.

    51,194   
  12,300     

Mitsubishi Gas Chemical Co., Inc.

    68,730   
  7,910     

Mitsubishi Materials Corp.

    28,476   
  53,710     

Mitsubishi UFJ Financial Group, Inc.

    381,575   
  18,100     

Mitsubishi UFJ Lease & Finance Co., Ltd.

    97,093   
  23,090     

Mitsui Chemicals, Inc.

    76,335   
  900     

Mitsumi Electric Co., Ltd.

    6,741   
  36,600     

Mizuho Financial Group, Inc.

    69,770   
  1,500     

Moshi Moshi Hotline, Inc.

    16,205   
  29,200     

NEC Corp.

    97,149   
  3,500     

NET One Systems Co., Ltd.

    25,137   
  800     

Neturen Co., Ltd.

    5,956   
  2,880     

NGK Insulators Ltd.

    64,696   
  1,150     

NGK Spark Plug Co., Ltd.

    32,204   
  4,300     

Nichicon Corp.

    39,669   
  3,400     

Nikon Corp.

    48,343   
  840     

Nintendo Co., Ltd.

    141,036   
  2,520     

Nippon Telegraph & Telephone Corp.

    170,163   
  6,200     

Nippon Television Holdings, Inc.

    106,912   
  3,000     

Nishimatsuya Chain Co., Ltd.

    27,879   
  1,100     

Nissin Kogyo Co., Ltd.

    18,131   
  500     

Nitto Denko Corp.

    32,043   
  2,000     

Oita Bank Ltd.

    7,822   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Japan - 19.9% - (continued)  
  3,485     

Ono Pharmaceutical Co., Ltd.

  $ 377,701   
  938     

Pal Co., Ltd.

    30,149   
  800     

Proto Corp.

    11,668   
  2,800     

Rakuten, Inc.

    48,917   
  2,250     

Ricoh Co., Ltd.

    23,253   
  700     

Rohm Co., Ltd.

    48,555   
  6,000     

SCREEN Holdings Co., Ltd.

    40,732   
  583     

Seven & I Holdings Co., Ltd.

    25,060   
  300     

Shimamura Co., Ltd.

    29,902   
  2,200     

Shinkawa Ltd.(1)

    14,336   
  5,500     

Shinko Electric Industries Co., Ltd.

    43,951   
  33,600     

Shinsei Bank Ltd.

    68,756   
  630     

SoftBank Corp.

    39,381   
  4,910     

Sony Financial Holdings, Inc.

    88,147   
  1,600     

Sumco Corp.

    24,141   
  8,000     

Sumitomo Bakelite Co., Ltd.

    36,472   
  4,590     

Sumitomo Electric Industries Ltd.

    64,848   
  5,590     

Sumitomo Mitsui Financial Group, Inc.

    244,085   
  660     

Sumitomo Realty & Development Co., Ltd.

    25,473   
  2,800     

Sumitomo Riko Co., Ltd.

    24,221   
  700     

Suzuken Co. Ltd/Aichi Japan

    21,905   
  20,590     

T&D Holdings, Inc.

    297,109   
  61,385     

Taiheiyo Cement Corp.

    193,440   
  1,700     

Takata Corp.

    21,018   
  4,990     

Takeda Pharmaceutical Co., Ltd.

    256,192   
  3,000     

Tochigi Bank Ltd.

    16,115   
  1,500     

Tokai Rika Co., Ltd.

    36,649   
  2,725     

Tokio Marine Holdings, Inc.

    111,086   
  1,700     

Tokyo Seimitsu Co., Ltd.

    36,642   
  4,200     

Tokyo Steel Manufacturing Co., Ltd.

    28,995   
  400     

Topre Corp.

    6,454   
  7,000     

Toshiba Machine Co., Ltd.

    31,084   
  1,300     

Toyo Tire & Rubber Co., Ltd.

    24,902   
  2,100     

Toyoda Gosei Co., Ltd.

    48,587   
  2,980     

Toyota Boshoku Corp.

    44,244   
  1,515     

Toyota Industries Corp.

    85,801   
  2,700     

Ushio, Inc.

    35,407   
  1,500     

Xebio Co., Ltd.

    26,476   
  3,000     

Yamanashi Chuo Bank Ltd.

    13,933   
  1,100     

Yamato Kogyo Co., Ltd.

    25,881   
  5,000     

Yodogawa Steel Works Ltd.

    20,246   
   

 

 

 
      6,804,830   
   

 

 

 
      Luxembourg - 0.1%  
  1,546     

Oriflame Cosmetics S.A.

    26,697   
   

 

 

 
      Malaysia - 0.8%  
  406,010     

AirAsia Bhd

    258,779   
   

 

 

 
      Mexico - 1.3%  
  1,387     

America Movil S.A.B. de C.V. Class L, ADR

    28,975   
  22,400     

Corp. Inmobiliaria Vesta S.A.B. de C.V.

    42,049   
  13,172     

Credito Real S.A.B. de C.V.

    32,436   
  596     

Fomento Economico Mexicano S.A.B. de C.V. ADR(1)

    53,932   
  21,566     

Gentera S.A.B. de C.V.(1)

    36,913   
  3,700     

Gruma S.A.B. de C.V. Class B

    44,573   
  241     

Grupo Aeroportuario del Sureste S.A.B. de C.V. ADR(1)

    34,841   
  8,692     

Grupo Financiero Banorte S.A.B. de C.V.

    49,307   
  1,609     

Grupo Televisa S.A.B. ADR(1)

    58,584   
  24,139     

Hoteles City Express S.A.B. de C.V.(1)

    36,817   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  54  

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Mexico - 1.3% - (continued)  
  2,200     

Promotora y Operadora de Infraestructura S.A.B. de C.V.(1)

  $ 25,238   
   

 

 

 
      443,665   
   

 

 

 
      Netherlands - 2.5%  
  1,061     

ASML Holding N.V.

    114,177   
  2,585     

Delta Lloyd N.V.

    48,952   
  1,879     

Heineken N.V.

    148,024   
  13,363     

ING Groep N.V.(1)

    205,009   
  32,085     

Koninklijke KPN N.V.

    118,963   
  1,204     

Koninklijke Philips N.V.

    34,488   
  778     

NXP Semiconductors N.V.(1)

    74,782   
  12,585     

PostNL N.V.(1)

    62,498   
  3,401     

TNT Express N.V.(2)

    29,031   
  1,600     

USG People N.V.

    21,728   
   

 

 

 
      857,652   
   

 

 

 
      Norway - 0.1%  
  10,127     

Storebrand ASA(1)

    35,806   
   

 

 

 
      Panama - 0.6%  
  1,792     

Copa Holdings S.A. Class A

    198,715   
   

 

 

 
      Portugal - 0.2%  
  6,064     

Galp Energia SGPS S.A.

    82,832   
   

 

 

 
      Russia - 0.2%  
  6,787     

Gazprom OAO ADR

    39,765   
  730     

Lukoil OAO ADR

    37,343   
   

 

 

 
      77,108   
   

 

 

 
      Singapore - 0.6%  
  37,685     

Fortune Real Estate Investment Trust REIT

    38,460   
  55,055     

Keppel DC REIT(1)

    42,856   
  13,310     

Singapore Exchange Ltd.

    85,554   
  37,850     

Super Group Ltd.

    42,523   
   

 

 

 
      209,393   
   

 

 

 
      South Africa - 0.8%  
  818     

Anglo American Platinum Ltd.(1)

    22,593   
  4,825     

Impala Platinum Holdings Ltd.(1)

    26,854   
  9,530     

Lonmin plc(1)

    21,066   
  1,135     

Naspers Ltd. Class N

    178,065   
  8,816     

Raubex Group Ltd.

    13,265   
   

 

 

 
      261,843   
   

 

 

 
      South Korea - 2.7%  
  2,292     

Daewoo International Corp.

    66,864   
  447     

Doosan Corp.

    51,774   
  1,525     

Doosan Heavy Industries & Construction Co., Ltd.

    43,267   
  725     

Hyundai Home Shopping Network Corp.

    91,154   
  906     

KB Financial Group, Inc.

    34,550   
  1,741     

Korea Electric Power Corp.

    75,705   
  1,881     

KT Corp.(1)

    55,602   
  167     

LG Chem Ltd.

    42,186   
  685     

LG Corp.

    42,504   
  6,827     

LG Uplus Corp.

    68,298   
  79     

NAVER Corp.

    47,770   
  841     

Samsung Card Co., Ltd.

    32,181   
  75     

Samsung Electronics Co., Ltd.

    98,389   
  505     

Shinhan Financial Group Co., Ltd.

    20,901   
  2,333     

SK Hynix, Inc.

    99,818   
  1,654     

Suprema, Inc.(1)

    35,859   
  1,486     

Tongyang Life Insurance

    20,434   
   

 

 

 
      927,256   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      Spain - 0.4%  
  2,025     

Almirall S.A.(1)

  $ 38,181   
  4,426     

Telefonica S.A.

    67,365   
  549     

Viscofan S.A.

    34,894   
   

 

 

 
      140,440   
   

 

 

 
      Sweden - 2.9%  
  4,259     

Alfa Laval AB

    79,498   
  4,281     

Assa Abloy AB Class B

    248,357   
  6,192     

Atlas Copco AB Class A

    193,271   
  8,322     

Electrolux AB Series B

    249,182   
  7,698     

Nordea Bank AB

    97,804   
  6,210     

Trelleborg AB Class B

    121,699   
   

 

 

 
      989,811   
   

 

 

 
      Switzerland - 6.4%  
  689     

Adecco S.A.(1)

    56,151   
  16     

Belimo Holding AG

    38,844   
  6     

Chocoladefabriken Lindt & Sprungli AG

    32,787   
  1,636     

Cie Financiere Richemont S.A.

    145,821   
  153     

Daetwyler Holding AG

    21,716   
  380     

Geberit AG

    134,586   
  22     

Givaudan S.A.(1)

    41,166   
  504     

Holcim Ltd.(1)

    40,487   
  67     

Inficon Holding AG(1)

    25,441   
  6,748     

Julius Baer Group Ltd.(1)

    353,195   
  758     

Kuehne + Nagel International AG

    113,688   
  25     

LEM Holding S.A.

    22,174   
  2,346     

Micronas Semiconductor Holding AG(1)

    14,358   
  2,742     

Novartis AG

    279,882   
  959     

Roche Holding AG

    274,423   
  415     

Schindler Holding AG

    70,205   
  486     

Tecan Group AG

    64,590   
  22,325     

UBS Group AG(1)

    445,994   
   

 

 

 
      2,175,508   
   

 

 

 
      Taiwan - 3.5%  
  5,282     

Advantech Co., Ltd.

    43,512   
  5,950     

Airtac International Group

    48,638   
  17,600     

Catcher Technology Co., Ltd.

    205,952   
  21,000     

Compal Electronics, Inc.

    19,119   
  3,610     

eMemory Technology, Inc.

    40,764   
  14,367     

Globalwafers Co., Ltd.(1)

    44,561   
  650     

Hermes Microvision, Inc.

    45,707   
  6,500     

Hon Hai Precision Industry Co., Ltd.

    19,477   
  12,915     

Hota Industrial Manufacturing Co., Ltd.

    32,518   
  38,895     

King Yuan Electronics Co., Ltd.

    35,356   
  2,957     

PChome Online, Inc.

    50,019   
  25,940     

Primax Electronics Ltd.

    34,152   
  4,496     

Silergy Corp.

    44,479   
  28,250     

Sino-American Silicon Products, Inc.(1)

    41,558   
  7,863     

Superalloy Industrial Co., Ltd.

    33,120   
  92,890     

Taiwan Semiconductor Manufacturing Co., Ltd.

    447,198   
   

 

 

 
      1,186,130   
   

 

 

 
      Thailand - 0.6%  
  37,100     

Charoen Pokphand Foods PCL

    25,097   
  26,185     

Hana Microelectronics PCL

    35,348   
  22,050     

KCE Electronics PCL

    36,120   
  96,900     

Precious Shipping PCL

    39,977   
  13,835     

Total Access Communication PCL

    35,254   
  10,635     

Total Access Communication PCL NVDR

    27,937   
   

 

 

 
      199,733   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

55

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.1% - (continued)  
      United Kingdom - 12.5%  
  3,169     

Anglo American plc

  $ 53,691   
  15,343     

ARM Holdings plc

    260,699   
  4,821     

AstraZeneca plc

    330,849   
  3,113     

Berendsen plc

    49,489   
  6,604     

BG Group plc

    119,622   
  41,484     

Booker Group plc

    91,839   
  19,551     

BP plc

    141,010   
  6,600     

British American Tobacco plc

    362,628   
  9,580     

Burberry Group plc

    255,393   
  8,853     

Compass Group plc

    156,501   
  6,336     

Diageo plc

    175,902   
  3,746     

Essentra plc

    54,989   
  5,157     

Halma plc

    56,164   
  13,419     

Hays plc

    31,539   
  7,799     

Home Retail Group plc

    19,929   
  16,126     

HSBC Holdings plc

    161,091   
  9,746     

International Consolidated Airlines Group S.A.(1)

    80,830   
  11,110     

J Sainsbury plc

    46,196   
  3,164     

Jardine Lloyd Thompson Group plc

    51,527   
  3,710     

Markit, Ltd.(1)

    95,161   
  14,120     

National Grid plc

    189,961   
  8,473     

Prudential plc

    210,957   
  2,527     

Reckitt Benckiser Group plc

    224,914   
  17,722     

Saga plc(1)

    52,529   
  7,246     

SIG plc

    21,534   
  8,054     

Sky plc

    132,794   
  10,526     

Smith & Nephew plc

    179,146   
  3,790     

Spectris plc

    124,561   
  2,054     

Spirax-Sarco Engineering plc

    106,321   
  2,298     

SSP Group plc(1)

    10,522   
  4,500     

Standard Chartered plc

    73,675   
  2,525     

SuperGroup plc(1)

    39,922   
  1,123     

Victrex plc

    33,989   
  3,525     

WH Smith plc

    77,339   
  661     

Whitbread plc

    53,078   
  5,784     

WPP plc

    134,891   
   

 

 

 
      4,261,182   
   

 

 

 
      United States - 0.5%  
  11,840     

Samsonite International S.A.

    43,182   
  3,799     

XL Group plc

    140,867   
   

 

 

 
      184,049   
   

 

 

 
 

Total Common Stocks
(cost $29,501,557)

  $ 32,498,455   
   

 

 

 
EXCHANGE TRADED FUNDS - 1.0%  
      Other Investment Pools & Funds - 1.0%  
  4,904     

iShares MSCI EAFE ETF

  $ 326,165   
   

 

 

 
 

Total Exchange Traded Funds
(cost $325,136)

  $ 326,165   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
PREFERRED STOCKS - 0.2%  
      Brazil - 0.2%  
  5,700     

Itausa - Investimentos Itau S.A.

  $ 20,072   
  9,900     

Suzano Papel e Celulose S.A. Class A

    49,616   
   

 

 

 
 

Total Preferred Stocks
(cost $61,087)

  $ 69,688   
   

 

 

 
 

Total Long-Term Investments
(cost $29,887,780)

  $ 32,894,308   
   

 

 

 
SHORT-TERM INVESTMENTS - 3.2%  
      Other Investment Pools & Funds - 3.2%  
  1,084,665     

BlackRock Liquidity Funds TempFund Portfolio

  $ 1,084,665   
   

 

 

 
 

Total Short-Term Investments
(cost $1,084,665)

  $ 1,084,665   
   

 

 

 
 

Total Investments
(cost $30,972,445)^

    99.5    $ 33,978,973   
 

Other Assets and Liabilities

    0.5      186,349   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     34,165,322   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

56

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $31,199,528 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 3,802,062   

Unrealized Depreciation

         (1,022,617
  

 

 

 

Net Unrealized Appreciation

   $ 2,779,445   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
09/2011 - 10/2011      80,000       China High Precision Automation Group Ltd.    $ 30,522   
03/2015      3,401       TNT Express N.V.      21,062   
        

 

 

 
         $     51,584   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $29,031, which represents 0.1% of total net assets.

 

(3)  This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of this security was $0, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/04/15       MSC    $ 48,916       $ 47,745       $ (1,171

BRL

   Buy      05/05/15       MSC      12,281         12,072         (209

BRL

   Sell      05/04/15       MSC      28,379         27,700         679   

EUR

   Buy      05/04/15       DEUT      891         896         5   

EUR

   Buy      05/05/15       WEST      354         355         1   

GBP

   Buy      05/05/15       TDB      13,116         13,137         21   

HKD

   Buy      05/05/15       UBS      22,705         22,707         2   

JPY

   Buy      05/01/15       DEUT      7,491         7,477         (14

JPY

   Buy      05/08/15       DEUT      3,368         3,355         (13

MYR

   Sell      05/06/15       SSG      35,323         35,299         24   

NOK

   Buy      05/04/15       MSC      5,440         5,411         (29

SEK

   Sell      05/04/15       MSC      3,394         3,391         3   

SEK

   Sell      05/05/15       UBS      6,497         6,506         (9

SGD

   Sell      05/04/15       CBA      88,136         88,256         (120

SGD

   Sell      05/05/15       DEUT      34,887         34,812         75   

SGD

   Sell      05/06/15       SSG      35,969         35,916         53   

THB

   Buy      05/06/15       SSG      6,112         6,044         (68

THB

   Buy      05/06/15       SSG      6,214         6,145         (69

THB

   Sell      05/07/15       SSG      82,128         81,997         131   

ZAR

   Buy      05/06/15       SSG          124,031             123,467         (564
                 

 

 

 

Total

                  $     (1,272)   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

57

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

CBA

   Commonwealth Bank of Australia

DEUT

   Deutsche Bank Securities, Inc.

MSC

   Morgan Stanley

SSG

   State Street Global Markets LLC

TDB

   Toronto Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

BRL

   Brazilian Real

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

JPY

   Japanese Yen

MYR

   Malaysian Ringgit

NOK

   Norwegian Krone

SEK

   Swedish Krona

SGD

   Singapore Dollar

THB

   Thai Baht

ZAR

   South African Rand
Index Abbreviations:

EAFE

   Europe, Australasia and Far East

MSCI

   Morgan Stanley Capital International
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange Traded Fund

NVDR

   Non-Voting Depositary Receipt

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  58  

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Argentina

   $ 173,856      $ 173,856       $      $   

Australia

     834,383        58,457         775,926          

Austria

     12,901        12,901                  

Belgium

     577,605        30,062         547,543          

Brazil

     327,591        327,591                  

Canada

     460,515        460,515                  

Chile

     19,115        19,115                  

China

     2,505,659        1,256,052         1,249,607          

Denmark

     699,134                699,134          

Finland

     318,188                318,188          

France

     3,383,530        3,885         3,379,645          

Germany

     1,333,319                1,333,319          

Greece

     141,229                141,229          

Hong Kong

     1,207,032        68,328         1,138,704          

Hungary

     61,217        28,071         33,146          

India

     200,593        130,176         70,417          

Ireland

     209,105                209,105          

Italy

     712,054        48,923         663,131          

Japan

     6,804,830                6,804,830          

Luxembourg

     26,697                26,697          

Malaysia

     258,779        258,779                  

Mexico

     443,665        443,665                  

Netherlands

     857,652        123,734         733,918          

Norway

     35,806                35,806          

Panama

     198,715        198,715                  

Portugal

     82,832                82,832          

Russia

     77,108                77,108          

Singapore

     209,393        81,316         128,077          

South Africa

     261,843        13,265         248,578          

South Korea

     927,256                927,256          

Spain

     140,440                140,440          

Sweden

     989,811                989,811          

Switzerland

     2,175,508        100,817         2,074,691          

Taiwan

     1,186,130        77,681         1,108,449          

Thailand

     199,733        171,796         27,937          

United Kingdom

     4,261,182        198,134         4,063,048          

United States

     184,049        140,867         43,182          

Exchange Traded Funds

     326,165        326,165                  

Preferred Stocks

     69,688        69,688                  

Short-Term Investments

     1,084,665        1,084,665                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     33,978,973      $     5,907,219       $     28,071,754      $     —   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 994      $       $ 994      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 994      $       $ 994      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (2,266   $       $ (2,266   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (2,266   $       $ (2,266   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $515,654 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

 

The accompanying notes are an integral part of these financial statements.

 

 

59

 


The Hartford International Capital Appreciation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary – (continued)

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Total  

Beginning balance

   $ 212      $ 212   

Purchases

              

Sales

     (1     (1

Accrued discounts/(premiums)

              

Total realized gain/(loss)

         (10,753         (10,753

Net change in unrealized appreciation/depreciation

     10,542        10,542   

Transfers into Level 3(1)

              

Transfers out of Level 3(1)

              
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  60  

 


The Hartford International Growth Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     22.1

Consumer Staples

     6.6   

Financials

     17.2   

Health Care

     15.4   

Industrials

     12.1   

Information Technology

     17.1   

Materials

     4.2   

Utilities

     0.5   
  

 

 

 

Total

     95.2
  

 

 

 

Short-Term Investments

     2.0

Other Assets & Liabilities

     2.8   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

61

 


The Hartford International Growth Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.2%  
      Australia - 1.3%  
  1,630,758     

Spotless Group Holdings Ltd.

  $ 2,930,357   
   

 

 

 
      Belgium - 1.0%  
  17,602     

Anheuser-Busch InBev N.V.

    2,143,013   
   

 

 

 
      Canada - 3.0%  
  127,850     

Alimentation Couche-Tard, Inc. Class B

    4,893,587   
  33,870     

Magna International, Inc.

    1,706,835   
   

 

 

 
      6,600,422   
   

 

 

 
      China - 9.3%  
  225,000     

AAC Technologies Holdings, Inc.

    1,187,708   
  5,934     

Baidu, Inc. ADR(1)

    1,188,461   
  1,485,000     

China Construction Bank Class H

    1,441,541   
  7,009,930     

Greatview Aseptic Packaging Co., Ltd.

    4,223,955   
  794,000     

Lenovo Group Ltd.

    1,365,339   
  750,820     

PICC Property & Casualty Co., Ltd. Class H

    1,663,464   
  126,425     

Tencent Holdings Ltd.

    2,609,269   
  55,147     

Vipshop Holdings Ltd. ADR(1)

    1,560,109   
  118,214     

WuXi PharmaTech Cayman, Inc. ADR(1)

    5,103,298   
   

 

 

 
      20,343,144   
   

 

 

 
      Denmark - 4.7%  
  162,053     

DSV A/S

    5,621,564   
  50,524     

Novo Nordisk A/S Class B

    2,836,451   
  17,655     

Pandora A/S

    1,824,847   
   

 

 

 
      10,282,862   
   

 

 

 
      Finland - 0.6%  
  27,092     

Sampo Oyj Class A

    1,312,722   
   

 

 

 
      France - 14.1%  
  251,157     

Credit Agricole S.A.

    3,907,588   
  115,130     

Edenred

    3,086,561   
  36,103     

Essilor International S.A.

    4,398,430   
  86,976     

JCDecaux S.A.

    3,435,903   
  9,654     

L’Oreal S.A.

    1,842,378   
  50,328     

Renault S.A.

    5,295,395   
  21,970     

Safran S.A.

    1,605,289   
  31,114     

Valeo S.A.

    4,988,186   
  100,187     

Vallourec S.A.

    2,362,491   
   

 

 

 
      30,922,221   
   

 

 

 
      Germany - 1.7%  
  28,349     

ProSiebenSat.1 Media AG

    1,449,404   
  91,948     

Tom Tailor Holding AG(1)

    1,136,555   
  23,521     

United Internet AG

    1,051,601   
   

 

 

 
      3,637,560   
   

 

 

 
      Hong Kong - 2.6%  
  365,400     

AIA Group Ltd.

    2,430,083   
  790,000     

Guangdong Investment Ltd.

    1,178,019   
  56,300     

Hong Kong Exchanges and Clearing Ltd.

    2,146,169   
   

 

 

 
      5,754,271   
   

 

 

 
      India - 2.8%  
  144,311     

Axis Bank Ltd.

    1,288,232   
  100,824     

HCL Technologies Ltd.

    1,397,789   
  62,724     

HDFC Bank Ltd.

    977,023   
  130,876     

ICICI Bank Ltd. ADR

    1,430,475   
  219,016     

ITC Ltd.

    1,111,545   
   

 

 

 
      6,205,064   
   

 

 

 
      Ireland - 0.5%  
  15,722     

ICON plc(1)

    1,011,553   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.2% - (continued)  
      Israel - 0.7%  
  17,365     

Check Point Software Technologies Ltd. ADR(1)

  $ 1,449,630   
   

 

 

 
      Italy - 1.1%  
  294,331     

Banca Popolare dell-Emilia Romagna Scrl(1)

    2,421,116   
   

 

 

 
      Japan - 8.9%  
  84,100     

Astellas Pharma, Inc.

    1,309,496   
  130,445     

Bridgestone Corp.

    5,463,516   
  11,800     

Daito Trust Construction Co., Ltd.

    1,374,117   
  35,900     

Fuji Heavy Industries Ltd.

    1,200,496   
  59,850     

Ono Pharmaceutical Co., Ltd.

    6,486,490   
  1,158,375     

Taiheiyo Cement Corp.

    3,650,330   
   

 

 

 
      19,484,445   
   

 

 

 
      Malaysia - 1.7%  
  5,925,695     

AirAsia Bhd

    3,776,871   
   

 

 

 
      Netherlands - 2.0%  
  17,028     

ASML Holding N.V.

    1,832,433   
  15,199     

NXP Semiconductors N.V.(1)

    1,460,928   
  17,422     

Sensata Technologies Holding N.V.(1)

    961,869   
   

 

 

 
      4,255,230   
   

 

 

 
      Panama - 1.7%  
  33,013     

Copa Holdings S.A. Class A

    3,660,812   
   

 

 

 
      Singapore - 0.7%  
  242,200     

Singapore Exchange Ltd.

    1,556,822   
   

 

 

 
      South Africa - 1.5%  
  21,071     

Naspers Ltd. Class N

    3,305,740   
   

 

 

 
      Sweden - 2.6%  
  192,870     

Electrolux AB Series B

    5,775,033   
   

 

 

 
      Switzerland - 7.0%  
  678     

Givaudan S.A.

    1,268,656   
  22,181     

Julius Baer Group Ltd.(1)

    1,160,970   
  39,695     

Novartis AG

    4,051,752   
  5,011     

Partners Group Holding AG

    1,570,627   
  13,016     

Roche Holding AG

    3,724,595   
  109,970     

UBS Group AG(1)

    2,196,907   
  4,339     

Zurich Insurance Group AG

    1,339,246   
   

 

 

 
      15,312,753   
   

 

 

 
      Taiwan - 7.3%  
  458,000     

Catcher Technology Co., Ltd.

    5,359,445   
  250,000     

Delta Electronics, Inc.

    1,504,366   
  17,600     

Largan Precision Co., Ltd.

    1,763,626   
  1,536,170     

Taiwan Semiconductor Manufacturing Co., Ltd.

    7,395,540   
   

 

 

 
      16,022,977   
   

 

 

 
      Thailand - 0.5%  
  185,600     

Kasikornbank PCL

    1,178,305   
   

 

 

 
      United Kingdom - 14.3%  
  14,631     

Aon plc

    1,407,941   
  287,900     

ARM Holdings plc

    4,891,818   
  134,011     

BAE Systems plc

    1,038,210   
  474,186     

Booker Group plc

    1,049,772   
  180,573     

Burberry Group plc

    4,813,895   
  101,693     

Compass Group plc

    1,797,700   
  263,836     

Direct Line Insurance Group plc

    1,288,060   
  33,236     

Hikma Pharmaceuticals plc

    1,039,361   
  137,014     

IG Group Holdings plc

    1,544,852   
  30,296     

Imperial Tobacco Group plc

    1,479,369   
  14,708     

Next plc

    1,653,626   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  62  

 


The Hartford International Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.2% - (continued)  
      United Kingdom - 14.3% - (continued)  
  53,116     

Persimmon plc(1)

  $ 1,379,122   
  20,968     

Reckitt Benckiser Group plc

    1,866,244   
  209,258     

Sage Group plc

    1,555,876   
  106,580     

Sky plc

    1,757,284   
  70,514     

Smith & Nephew plc

    1,200,106   
  114,662     

St James’s Place plc

    1,564,070   
   

 

 

 
      31,327,306   
   

 

 

 
      United States - 3.6%  
  3,620     

Actavis plc(1)

    1,023,953   
  25,033     

Amdocs Ltd.

    1,378,567   
  18,467     

Medtronic plc

    1,374,868   
  10,906     

Wabco Holdings, Inc.(1)

    1,357,252   
  71,848     

XL Group plc

    2,664,124   
   

 

 

 
      7,798,764   
   

 

 

 
 

Total Common Stocks
(cost $186,444,825)

  $ 208,468,993   
   

 

 

 
 

Total Long-Term Investments
(cost $186,444,825)

  $ 208,468,993   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.0%  
      Other Investment Pools & Funds - 2.0%  
  4,422,302     

Federated Prime Obligations Fund

  $ 4,422,302   
   

 

 

 
 

Total Short-Term Investments
(cost $4,422,302)

  $ 4,422,302   
   

 

 

 
 

Total Investments
(cost $190,867,127)^

    97.2    $ 212,891,295   
 

Other Assets and Liabilities

    2.8      6,145,005   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     219,036,300   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

63

 


The Hartford International Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $191,242,560 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 27,099,519   

Unrealized Depreciation

     (5,450,784
  

 

 

 

Net Unrealized Appreciation

   $     21,648,735   
  

 

 

 

 

(1)  Non-income producing.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

EUR

  

Buy

     05/05/15       WEST    $ 1,607,621       $ 1,612,561       $ 4,940   

EUR

  

Buy

     05/05/15       WEST      60,677         60,863         186   

GBP

  

Buy

     05/05/15       TDB      102,856         103,018         162   

SGD

  

Sell

     05/04/15       CBA      823,055         824,176         (1,121

SGD

  

Sell

     05/05/15       DEUT      641,293         639,910         1,383   

SGD

  

Sell

     05/06/15       SSG      655,799         654,825         974   

ZAR

  

Buy

     05/05/15       CSFB      92,302         94,193         1,891   

ZAR

  

Buy

     05/06/15       SSG          2,244,029             2,233,818             (10,211
                 

 

 

 

Total

                  $ (1,796
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

CBA

   Commonwealth Bank of Australia

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

SSG

   State Street Global Markets LLC

TDB

   Toronto Dominion Bank

WEST

   Westpac International
Currency Abbreviations:

EUR

   Euro

GBP

   British Pound

SGD

   Singapore Dollar

ZAR

   South African Rand
Other Abbreviations:

ADR

   American Depositary Receipt
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


The Hartford International Growth Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Australia

   $ 2,930,357      $       $ 2,930,357      $     —   

Belgium

     2,143,013                2,143,013          

Canada

     6,600,422        6,600,422                  

China

     20,343,144            7,851,868         12,491,276          

Denmark

     10,282,862                10,282,862          

Finland

     1,312,722                1,312,722          

France

         30,922,221                30,922,221          

Germany

     3,637,560                3,637,560          

Hong Kong

     5,754,271                5,754,271          

India

     6,205,064        3,939,809         2,265,255          

Ireland

     1,011,553        1,011,553                  

Israel

     1,449,630        1,449,630                  

Italy

     2,421,116                2,421,116          

Japan

     19,484,445                    19,484,445          

Malaysia

     3,776,871        3,776,871                  

Netherlands

     4,255,230        2,422,797         1,832,433          

Panama

     3,660,812        3,660,812                  

Singapore

     1,556,822                1,556,822          

South Africa

     3,305,740                3,305,740          

Sweden

     5,775,033                5,775,033          

Switzerland

     15,312,753                15,312,753          

Taiwan

     16,022,977                16,022,977          

Thailand

     1,178,305                1,178,305          

United Kingdom

     31,327,306        1,407,941         29,919,365          

United States

     7,798,764        7,798,764                  

Short-Term Investments

     4,422,302        4,422,302                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     212,891,295      $     44,342,769       $     168,548,526      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 9,536      $       $ 9,536      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 9,536      $       $ 9,536      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (11,332   $       $ (11,332   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (11,332   $       $ (11,332   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $3,318,430 were transferred from Level 1 to Level 2, and investments valued at $4,022,398 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

65

 


The Hartford International Opportunities Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     13.8

Consumer Staples

     7.5   

Energy

     4.4   

Financials

     27.3   

Health Care

     15.3   

Industrials

     9.0   

Information Technology

     8.4   

Materials

     3.1   

Telecommunication Services

     3.3   

Utilities

     3.4   
  

 

 

 

Total

     95.5
  

 

 

 

Short-Term Investments

     4.3

Other Assets & Liabilities

     0.2   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Currency Concentration of Securities

as of April 30, 2015 (Unaudited)

 

Description    Percentage of
Net Assets
 

Brazilian Real

     0.5

British Pound

     11.5   

Canadian Dollar

     4.0   

Danish Krone

     0.2   

Euro

     30.9   

Hong Kong Dollar

     5.0   

Indian Rupee

     4.1   

Japanese Yen

     19.1   

Mexican Peso

     0.2   

South Korea Won

     1.6   

Swedish Krona

     3.5   

Swiss Franc

     8.7   

Taiwanese Dollar

     1.8   

United States Dollar

     8.7   

Other Assets & Liabilities

     0.2   
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

66

 


The Hartford International Opportunities Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.5%  
      Belgium - 3.3%  
  429,306     

Anheuser-Busch InBev N.V.

  $ 52,267,265   
   

 

 

 
      Brazil - 0.9%  
  412,660     

BB Seguridade Participacoes S.A.

    4,827,915   
  562,300     

BR Malls Participacoes S.A.

    3,060,695   
  695,569     

Petroleo Brasileiro S.A. ADR(1)

    6,607,905   
   

 

 

 
      14,496,515   
   

 

 

 
      Canada - 4.0%  
  312,500     

Canadian National Railway Co.

    20,177,165   
  535,710     

Imperial Oil Ltd.

    23,612,978   
  416,420     

TransCanada Corp.

    19,328,239   
   

 

 

 
      63,118,382   
   

 

 

 
      China - 6.4%  
  260,256     

Alibaba Group Holding Ltd. ADR(1)

    21,156,210   
  91,938     

Baidu, Inc. ADR(1)

    18,413,343   
  19,375,000     

China Construction Bank Class H

    18,807,980   
  2,896,000     

China Life Insurance Co., Ltd. Class H

    14,055,107   
  2,278,000     

ENN Energy Holdings Ltd.

    16,395,637   
  85,510     

Hollysys Automation Technologies Ltd.

    1,878,655   
  4,882,000     

PICC Property & Casualty Co., Ltd. Class H

    10,816,216   
   

 

 

 
      101,523,148   
   

 

 

 
      Denmark - 0.2%  
  166,736     

H. Lundbeck A/S(1)

    3,243,181   
   

 

 

 
      Finland - 0.4%  
  132,724     

Kone Oyj Class B

    5,710,000   
   

 

 

 
      France - 12.0%  
  159,448     

Air Liquide

    20,852,663   
  343,083     

Airbus Group N.V.

    23,776,371   
  396,390     

BNP Paribas S.A.

    25,032,532   
  203,526     

Essilor International S.A.

    24,795,582   
  286,763     

Groupe Eurotunnel S.A.

    4,597,543   
  271,574     

Legrand S.A.

    15,703,146   
  1,070,343     

Orange S.A.

    17,629,954   
  187,387     

Schneider Electric S.A.

    14,006,874   
  380,348     

Total S.A.

    20,595,826   
  87,600     

Unibail-Rodamco SE REIT

    24,187,277   
   

 

 

 
      191,177,768   
   

 

 

 
      Germany - 5.4%  
  220,583     

Beiersdorf AG

    19,187,551   
  161,181     

Brenntag AG

    9,670,968   
  95,732     

Continental AG

    22,435,237   
  781,501     

Deutsche Annington Immobilien SE

    26,231,169   
  33,373     

Volkswagen AG (Preference Shares)

    8,591,733   
   

 

 

 
      86,116,658   
   

 

 

 
      Hong Kong - 1.2%  
  504,300     

Hong Kong Exchanges and Clearing Ltd.

    19,224,032   
   

 

 

 
      India - 4.4%  
  956,299     

Bharti Infratel Ltd.

    6,042,081   
  231,674     

Container Corp. Of India Ltd.

    5,974,869   
  153,061     

Divi’s Laboratories Ltd.

    4,146,835   
  93,720     

HDFC Bank Ltd. ADR

    5,327,045   
  4,940,375     

ICICI Bank Ltd.

    25,810,219   
  970,293     

Power Grid Corp. of India Ltd.

    2,170,675   
  844,618     

Punjab National Bank(1)

    2,119,016   
  2,213,935     

State Bank of India

    9,384,074   
  220,811     

Tata Consultancy Services Ltd.

    8,565,096   
   

 

 

 
      69,539,910   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.5% - (continued)  
      Ireland - 2.2%  
  17,099,966     

Bank of Ireland(1)

  $ 6,610,396   
  1,042,652     

CRH plc

    29,135,283   
   

 

 

 
      35,745,679   
   

 

 

 
      Italy - 6.0%  
  483,335     

Assicurazioni Generali S.p.A.

    9,443,965   
  302,362     

Banca Generali S.p.A.

    10,147,944   
  1,108,271     

FinecoBank Banca Fineco S.p.A.(1)

    8,366,620   
  3,749,659     

Intesa Sanpaolo S.p.A.

    12,596,981   
  454,003     

Luxottica Group S.p.A.

    29,899,222   
  4,772,964     

Snam S.p.A.

    24,863,047   
   

 

 

 
      95,317,779   
   

 

 

 
      Japan - 19.1%  
  236,345     

Asahi Group Holdings Ltd.

    7,600,154   
  406,865     

Asics Corp.

    10,440,274   
  176,260     

Daito Trust Construction Co., Ltd.

    20,525,584   
  426,130     

Daiwa House Industry Co., Ltd.

    9,513,357   
  255,405     

Eisai Co., Ltd.

    17,024,632   
  692,300     

Honda Motor Co., Ltd.

    23,209,606   
  490,992     

Isuzu Motors Ltd.

    6,507,514   
  260,900     

Kansai Electric Power Co., Inc.(1)

    2,622,014   
  280,500     

Kyushu Electric Power Co., Inc.(1)

    2,991,573   
  408,060     

M3, Inc.

    7,710,489   
  195,000     

Mitsubishi Estate Co., Ltd.

    4,589,768   
  1,098,870     

Mitsubishi UFJ Financial Group, Inc.

    7,806,757   
  657,700     

Mitsui Fudosan Co., Ltd.

    19,497,054   
  3,232,000     

NEC Corp.

    10,752,900   
  238,920     

Nippon Telegraph & Telephone Corp.

    16,133,064   
  322,435     

Olympus Corp.(1)

    11,610,874   
  250,620     

Ono Pharmaceutical Co., Ltd.

    27,161,976   
  86,655     

Rakuten, Inc.

    1,513,902   
  492,820     

Seven & I Holdings Co., Ltd.

    21,183,529   
  184,800     

Shikoku Electric Power Co., Inc.(1)

    2,502,559   
  307,900     

Sumco Corp.

    4,645,651   
  392,900     

Sumitomo Mitsui Financial Group, Inc.

    17,155,816   
  580,140     

T&D Holdings, Inc.

    8,371,290   
  406,970     

Takeda Pharmaceutical Co., Ltd.

    20,894,258   
  558,700     

Tokio Marine Holdings, Inc.

    22,775,790   
   

 

 

 
      304,740,385   
   

 

 

 
      Luxembourg - 0.3%  
  53,208     

Altice S.A.(1)

    5,638,695   
   

 

 

 
      Mexico - 0.2%  
  1,657,000     

Corp. Inmobiliaria Vesta S.A.B. de C.V.

    3,110,520   
   

 

 

 
      Netherlands - 3.1%  
  1,381,667     

ING Groep N.V.(1)

    21,196,899   
  3,523,428     

Koninklijke KPN N.V.

    13,064,011   
  159,019     

NXP Semiconductors N.V.(1)

    15,284,906   
   

 

 

 
      49,545,816   
   

 

 

 
      South Korea - 1.6%  
  85,192     

Korea Electric Power Corp.

    3,704,483   
  497,434     

SK Hynix, Inc.

    21,282,740   
   

 

 

 
      24,987,223   
   

 

 

 
      Spain - 1.0%  
  473,891     

Inditex S.A.

    15,206,713   
   

 

 

 
      Sweden - 3.5%  
  306,134     

Assa Abloy AB Class B

    17,759,992   
  698,006     

Electrolux AB Series B

    20,900,127   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


The Hartford International Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 95.5% - (continued)  
      Sweden - 3.5% - (continued)  
  320,730     

Hennes & Mauritz AB Class B

  $ 12,751,177   
  147,326     

SKF AB Class B

    3,598,444   
   

 

 

 
      55,009,740   
   

 

 

 
      Switzerland - 8.7%  
  147,826     

Adecco S.A.(1)

    12,047,328   
  94,735     

Cie Financiere Richemont S.A.

    8,444,006   
  491,632     

Julius Baer Group Ltd.(1)

    25,732,380   
  464,788     

Novartis AG

    47,441,895   
  80,344     

Roche Holding AG

    22,990,845   
  1,054,701     

UBS Group AG(1)

    21,070,108   
   

 

 

 
      137,726,562   
   

 

 

 
      Taiwan - 1.8%  
  6,012,255     

Taiwan Semiconductor Manufacturing Co., Ltd.

    28,944,629   
   

 

 

 
      United Kingdom - 9.8%  
  581,281     

AstraZeneca plc

    39,891,333   
  65,227     

Derwent London plc REIT

    3,433,255   
  700,852     

Diageo plc

    19,457,305   
  1,361,735     

Direct Line Insurance Group plc

    6,648,055   
  128,823     

Hikma Pharmaceuticals plc

    4,028,573   
  736,352     

International Consolidated Airlines Group S.A.(1)

    6,107,053   
  63,225     

Markit, Ltd.(1)

    1,621,721   
  127,659     

Schroders plc

    6,331,670   
  2,123,875     

Sky plc

    35,018,316   
  642,706     

Smith & Nephew plc

    10,938,475   
  186,055     

Standard Chartered plc

    3,046,129   
  852,119     

WPP plc

    19,872,668   
   

 

 

 
      156,394,553   
   

 

 

 
 

Total Common Stocks
(cost $1,382,955,141)

  $ 1,518,785,153   
   

 

 

 
 

Total Long-Term Investments
(cost $1,382,955,141)

  $ 1,518,785,153   
   

 

 

 
SHORT-TERM INVESTMENTS - 4.3%  
      Other Investment Pools & Funds - 3.7%  
  59,590,665     

Fidelity Money Market Class 1

  $ 59,590,665   
   

 

 

 
      U.S. Government Agencies - 0.6%  
  9,000,000     

FHLB
0.04%, 05/22/2015(2)

    8,999,838   
   

 

 

 
 

Total Short-Term Investments
(cost $68,590,272)

  $ 68,590,503   
   

 

 

 
 

Total Investments
(cost $1,451,545,413)^

    99.8    $ 1,587,375,656   
 

Other Assets and Liabilities

    0.2      3,648,542   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,591,024,198   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

68

 


The Hartford International Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $1,456,265,068 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 150,729,853   

Unrealized Depreciation

     (19,619,265
  

 

 

 

Net Unrealized Appreciation

   $     131,110,588   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The interest rate disclosed for this holding is the effective yield on the date of the acquisition.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

BRL

  

Buy

     05/04/15       MSC    $     1,211,426       $     1,182,417       $ (29,009

BRL

  

Buy

     05/05/15       MSC      1,159,271         1,139,590         (19,681

BRL

  

Buy

     05/06/15       MSC      865,016         865,748         732   

EUR

  

Buy

     05/04/15       DEUT      2,475,460         2,489,316         13,856   

EUR

  

Buy

     05/05/15       WEST      1,632,638         1,637,655         5,017   

GBP

  

Sell

     05/01/15       HSBC      518,692         514,868         3,824   

GBP

  

Sell

     05/05/15       TDB      3,321,313         3,326,528         (5,215

HKD

  

Buy

     05/04/15       GSC      2,450,782         2,450,766         (16

JPY

  

Sell

     05/08/15       DEUT      359,446         358,029         1,417   
                 

 

 

 

Total

                  $     (29,075
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

MSC

   Morgan Stanley

TDB

   Toronto Dominion Bank

WEST

   Westpac International
Currency Abbreviations:

BRL

   Brazilian Real

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

FHLB

   Federal Home Loan Bank

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  69  

 


The Hartford International Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Belgium

   $ 52,267,265      $       $ 52,267,265      $     —   

Brazil

     14,496,515        14,496,515                  

Canada

     63,118,382        63,118,382                  

China

     101,523,148        41,448,208         60,074,940          

Denmark

     3,243,181                3,243,181          

Finland

     5,710,000                5,710,000          

France

     191,177,768                191,177,768          

Germany

     86,116,658                86,116,658          

Hong Kong

     19,224,032                19,224,032          

India

     69,539,910        19,934,222         49,605,688          

Ireland

     35,745,679                35,745,679          

Italy

     95,317,779                95,317,779          

Japan

     304,740,385                304,740,385          

Luxembourg

     5,638,695        5,638,695                  

Mexico

     3,110,520        3,110,520                  

Netherlands

     49,545,816        15,284,906         34,260,910          

South Korea

     24,987,223                24,987,223          

Spain

     15,206,713                15,206,713          

Sweden

     55,009,740                55,009,740          

Switzerland

     137,726,562                137,726,562          

Taiwan

     28,944,629                28,944,629          

United Kingdom

     156,394,553        1,621,721         154,772,832          

Short-Term Investments

     68,590,503        59,590,665         8,999,838          
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     1,587,375,656      $     224,243,834       $     1,363,131,822      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 24,846      $       $ 24,846      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 24,846      $       $ 24,846      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (53,921   $       $ (53,921   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (53,921   $       $ (53,921   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

70

 


The Hartford International Small Company Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     15.0

Consumer Staples

     2.3   

Energy

     2.0   

Financials

     22.2   

Health Care

     10.3   

Industrials

     29.3   

Information Technology

     5.3   

Materials

     12.3   
  

 

 

 

Total

     98.7
  

 

 

 

Short-Term Investments

     2.1

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Currency Concentration of Securities

as of April 30, 2015 (Unaudited)

 

Description    Percentage of
Net Assets
 

Australian Dollar

     5.1

Brazilian Real

     0.2   

British Pound

     16.8   

Canadian Dollar

     0.1   

Danish Krone

     2.4   

Euro

     23.7   

Hong Kong Dollar

     0.8   

Indonesian Rupiah

     0.2   

Japanese Yen

     35.1   

Norwegian Krone

     1.3   

South African Rand

     0.6   

South Korea Won

     2.4   

Swedish Krona

     1.8   

Swiss Franc

     5.7   

United States Dollar

     4.6   

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

71

 


The Hartford International Small Company Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.7%  
      Australia - 5.1%  
  599,786     

Karoon Gas Australia Ltd.(1)

  $ 1,292,433   
  403,057     

Nufarm Ltd.

    2,310,066   
  546,658     

SAI Global Ltd.

    1,700,619   
  2,252,754     

Spotless Group Holdings Ltd.

    4,048,040   
  408,206     

Super Retail Group Ltd.

    3,177,650   
  954,959     

Tox Free Solutions Ltd.

    2,280,361   
  2,447,887     

Transpacific Industries Group Ltd.

    1,481,909   
   

 

 

 
      16,291,078   
   

 

 

 
      Austria - 2.1%  
  50,380     

Andritz AG

    2,949,583   
  67,498     

Buwog AG

    1,364,735   
  50,252     

CA Immobilien Anlagen AG

    911,969   
  21,481     

Schoeller-Bleckmann Oilfield Equipment AG

    1,514,344   
   

 

 

 
      6,740,631   
   

 

 

 
      Belgium - 2.5%  
  20,371     

Ackermans & van Haaren N.V.

    2,489,642   
  29,800     

Cie d’Entreprises CFE

    3,224,321   
  59,655     

D’ieteren S.A.

    2,332,034   
   

 

 

 
      8,045,997   
   

 

 

 
      Brazil - 0.2%  
  415,800     

Magazine Luiza S.A.

    691,401   
   

 

 

 
      China - 2.2%  
  2,056,000     

Cosmo Lady China Holdings Co., Ltd.(1)

    1,722,321   
  3,414,000     

Daphne International Holdings Ltd.

    951,447   
  100,214     

WuXi PharmaTech Cayman, Inc. ADR(1)

    4,326,239   
   

 

 

 
      7,000,007   
   

 

 

 
      Colombia - 0.1%  
  90,800     

Pacific Rubiales Energy Corp.

    307,057   
   

 

 

 
      Denmark - 2.4%  
  95,921     

DSV A/S

    3,327,467   
  151,801     

H. Lundbeck A/S(1)

    2,952,680   
  62,998     

Matas AS

    1,490,048   
   

 

 

 
      7,770,195   
   

 

 

 
      Finland - 0.3%  
  41,273     

Tikkurila Oyj

    850,067   
   

 

 

 
      France - 3.5%  
  131,226     

Air France-KLM(1)

    1,136,046   
  31,801     

Eurazeo S.A.

    2,276,304   
  42,700     

Imerys S.A.

    3,250,014   
  7,975     

Virbac S.A.

    2,078,392   
  19,037     

Wendel S.A.

    2,338,184   
   

 

 

 
      11,078,940   
   

 

 

 
      Germany - 3.7%  
  50,724     

ElringKlinger AG

    1,396,401   
  26,248     

Grenkeleasing AG

    3,498,071   
  16,133     

LEG Immobilien AG(1)

    1,251,715   
  52,042     

Rheinmetall AG

    2,664,436   
  81,636     

SAF-Holland S.A.

    1,235,971   
  39,304     

STRATEC Biomedical AG

    1,970,516   
   

 

 

 
      12,017,110   
   

 

 

 
      Indonesia - 0.2%  
  8,822,200     

Gajah Tunggal Tbk PT

    746,714   
   

 

 

 
      Italy - 8.4%  
  319,304     

Anima Holding S.p.A.(1)

    2,842,949   
  226,333     

Autogrill S.p.A.(1)

    2,164,708   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.7% - (continued)  
      Italy - 8.4% - (continued)  
  61,789     

Banca Generali S.p.A.

  $ 2,073,777   
  2,790,311     

Beni Stabili S.p.A. SIIQ REIT

    2,300,814   
  149,844     

Brunello Cucinelli S.p.A.

    2,779,528   
  153,684     

Cerved Information Solutions S.p.A.(1)

    1,115,024   
  62,154     

DiaSorin S.p.A.

    2,841,833   
  39,128     

Ei Towers S.p.A.(1)

    2,376,876   
  1,182,150     

Immobiliare Grande Distribuzione SIIQ S.p.A. REIT

    1,163,191   
  146,859     

Moncler S.p.A.

    2,615,268   
  459,131     

OVS S.p.A.(1)

    2,216,801   
  206,184     

RAI Way S.p.A.(1)

    1,011,715   
  48,517     

Salvatore Ferragamo S.p.A.

    1,508,715   
   

 

 

 
      27,011,199   
   

 

 

 
      Japan - 35.1%  
  64,900     

Asahi Intecc Co., Ltd.

    3,996,750   
  39,200     

CyberAgent, Inc.

    1,886,331   
  251     

Daiwa Office Investment Corp. REIT

    1,321,154   
  46,900     

Dena Co., Ltd.

    936,876   
  174,000     

Denyo Co., Ltd.

    2,629,667   
  218,100     

DMG Mori Seiki Co., Ltd.

    3,557,004   
  342,300     

Ferrotec Corp.

    1,988,612   
  1,128     

GLP J REIT

    1,159,785   
  73,800     

Hitachi Transport System Ltd.

    1,190,197   
  64,600     

Hoshizaki Electric Co., Ltd.

    3,800,544   
  82,300     

IBJ Leasing Co., Ltd.

    1,840,342   
  102,700     

Ichiyoshi Securities Co., Ltd.

    1,102,611   
  786,000     

IHI Corp.

    3,603,518   
  117,600     

Iida Group Holdings Co., Ltd.

    1,578,392   
  86,200     

Jamco Corp.

    2,462,421   
  156,000     

kabu.com Securities Co., Ltd.

    1,138,532   
  691,000     

Kawasaki Heavy Industries Ltd.

    3,561,315   
  437,400     

Kenedix, Inc.

    1,741,791   
  1,618,000     

Kobe Steel Ltd.

    2,940,859   
  253,000     

Makino Milling Machine Co., Ltd.

    2,310,808   
  98,000     

Message Co., Ltd.

    3,038,215   
  445,000     

Mitsubishi Gas Chemical Co., Inc.

    2,486,563   
  521,000     

Mitsubishi Materials Corp.

    1,875,587   
  846,200     

Mitsubishi UFJ Lease & Finance Co., Ltd.

    4,539,252   
  115,000     

Nippon Shinyaku Co., Ltd.

    3,844,859   
  220,000     

Nippon Shokubai Co., Ltd.

    3,037,464   
  112,200     

NTT Urban Development Corp.

    1,181,201   
  317,300     

Sanwa Holdings Corp.

    2,394,782   
  94,900     

SCSK Corp.

    2,771,152   
  92,000     

Shimadzu Corp.

    1,076,108   
  2,103,000     

Shinsei Bank Ltd.

    4,303,394   
  1,495,000     

Showa Denko KK

    2,043,643   
  113,400     

Sumco Corp.

    1,711,000   
  44,400     

TDK Corp.

    3,198,229   
  81,700     

TechnoPro Holdings, Inc.(1)

    2,270,588   
  795,000     

Teijin Ltd.

    2,700,586   
  136,100     

Tenma Corp.

    2,202,163   
  524,200     

Tokyo Steel Manufacturing Co., Ltd.

    3,618,823   
  69,642     

Tokyo TY Financial Group, Inc.

    1,990,991   
  34,200     

Tsuruha Holdings, Inc.

    2,480,482   
  66,800     

Welcia Holdings Co., Ltd.

    2,920,981   
  81,100     

Yamato Kogyo Co., Ltd.

    1,908,113   
  242,500     

Yaskawa Electric Corp.

    3,331,829   
  135,200     

Zenkoku Hosho Co., Ltd.

    4,991,540   
  52,100     

Zuiko Corp.

    1,721,005   
   

 

 

 
      112,386,059   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

72

 


The Hartford International Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.7% - (continued)  
      Luxembourg - 2.8%  
  178,202     

BRAAS Monier Building Group S.A.(1)

  $ 4,892,599   
  66,681     

Grand City Properties S.A.(1)

    1,263,907   
  157,678     

O’Key Group SA GDR(2)

    473,034   
  105,427     

Reinet Investments SCA

    2,274,055   
   

 

 

 
      8,903,595   
   

 

 

 
      Netherlands - 1.0%  
  78,013     

Constellium N.V. Class A(1)

    1,433,099   
  129,222     

USG People N.V.

    1,754,839   
   

 

 

 
      3,187,938   
   

 

 

 
      Norway - 1.3%  
  187,993     

Kongsberg Gruppen ASA

    4,039,617   
   

 

 

 
      Panama - 0.5%  
  15,013     

Copa Holdings S.A. Class A

    1,664,791   
   

 

 

 
      South Africa - 0.6%  
  397,293     

Gold Fields Ltd.

    1,834,268   
   

 

 

 
      South Korea - 2.4%  
  7,475     

CJ O Shopping Co., Ltd.

    1,672,179   
  19,657     

Green Cross Corp.

    3,238,728   
  105,259     

Nexen Tire Corp.

    1,276,920   
  23,505     

Samsung Securities Co., Ltd.

    1,428,268   
   

 

 

 
      7,616,095   
   

 

 

 
      Sweden - 1.0%  
  291,648     

Bufab Holding AB(1)

    1,872,376   
  85,514     

Haldex AB

    1,277,867   
   

 

 

 
      3,150,243   
   

 

 

 
      Switzerland - 5.7%  
  18,526     

Dufry AG(1)

    2,724,005   
  165,501     

Gategroup Holding AG

    5,800,828   
  10,328     

Kuoni Reisen Holding AG

    3,476,062   
  163,783     

OC Oerlikon Corp. AG

    2,142,531   
  7,604     

Partners Group Holding AG

    2,383,366   
  13,559     

Tecan Group AG

    1,801,996   
   

 

 

 
      18,328,788   
   

 

 

 
      United Kingdom - 17.6%  
  787,797     

B&M European Value Retail S.A.

    3,646,375   
  38,935     

Berkeley Group Holdings plc

    1,499,101   
  243,778     

Big Yellow Group plc REIT

    2,499,650   
  627,955     

Booker Group plc

    1,390,191   
  192,397     

Chemring Group plc

    632,181   
  171,709     

Concentric AB

    2,429,666   
  86,027     

Consort Medical plc

    1,241,283   
  399,845     

Crest Nicholson Holdings plc

    2,745,227   
  175,506     

De La Rue plc

    1,474,905   
  323,378     

Direct Line Insurance Group plc

    1,578,747   
  468,651     

Elementis plc

    2,180,893   
  939,234     

Hansteen Holdings plc REIT

    1,698,351   
  1,430,609     

Hays plc

    3,362,436   
  32,064     

Hikma Pharmaceuticals plc

    1,002,710   
  66,841     

Hunting plc

    600,728   
  186,603     

IG Group Holdings plc

    2,103,975   
  66,985     

James Fisher & Sons plc

    1,188,622   
  139,835     

Keller Group plc

    2,138,909   
  112,692     

Kennedy Wilson Europe Real Estate plc

    1,933,941   
  79,139     

Kier Group plc

    1,963,150   
  466,772     

Mears Group plc

    3,066,598   
  355,228     

Michael Page International plc

    2,894,001   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 98.7% - (continued)  
      United Kingdom - 17.6% - (continued)  
  347,142     

N Brown Group plc

  $ 1,822,433   
  530,086     

Ophir Energy plc(1)

    1,155,557   
  400,038     

Polypipe Group plc

    1,697,871   
  147,736     

Savills plc

    1,871,010   
  732,871     

Tyman plc

    3,352,371   
  370,354     

UNITE Group plc

    3,405,274   
   

 

 

 
      56,576,156   
   

 

 

 
 

Total Common Stocks
(cost $297,434,689)

  $ 316,237,946   
   

 

 

 
 

Total Long-Term Investments
(cost $297,434,689)

  $ 316,237,946   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.1%  
      Other Investment Pools & Funds - 2.1%  
  6,894,409     

Federated Prime Obligations Fund

  $ 6,894,409   
   

 

 

 
 

Total Short-Term Investments
(cost $6,894,409)

  $ 6,894,409   
   

 

 

 
 

Total Investments
(cost $304,329,098)^

    100.8    $ 323,132,355   
 

Other Assets and Liabilities

    (0.8 )%       (2,606,918
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     320,525,437   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

73

 


The Hartford International Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $308,743,000 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 32,458,222   

Unrealized Depreciation

         (18,068,867
  

 

 

 

Net Unrealized Appreciation

   $ 14,389,355   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $473,034, which represents 0.1% of total net assets.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

CHF

   Buy      05/04/15       MSC    $ 495,972       $ 498,816       $ 2,844   

CHF

   Buy      05/05/15       UBS      49,465         49,738         273   

EUR

   Buy      05/04/15       DEUT      406,407         408,682         2,275   

EUR

   Buy      05/05/15       WEST          1,967,696             1,973,743         6,047   

GBP

   Buy      05/01/15       HSBC      161,750         160,558         (1,192

GBP

   Buy      05/05/15       TDB      186,151         186,443         292   

JPY

   Buy      05/08/15       DEUT      621,714         619,262             (2,452
                 

 

 

 

Total

                  $ 8,087   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

HSBC

   HSBC Bank USA

MSC

   Morgan Stanley

TDB

   Toronto Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

CHF

   Swiss Franc

EUR

   Euro

GBP

   British Pound

JPY

   Japanese Yen
Other Abbreviations:

ADR

   American Depositary Receipt

GDR

   Global Depositary Receipt

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  74  

 


The Hartford International Small Company Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Common Stocks

         

Australia

   $ 16,291,078      $ 1,481,909       $ 14,809,169      $   

Austria

     6,740,631                6,740,631          

Belgium

     8,045,997        2,332,034         5,713,963          

Brazil

     691,401        691,401                  

China

     7,000,007        5,277,686         1,722,321          

Colombia

     307,057        307,057                  

Denmark

     7,770,195                7,770,195          

Finland

     850,067                850,067          

France

     11,078,940        2,078,392         9,000,548          

Germany

     12,017,110        1,970,516         10,046,594          

Indonesia

     746,714                746,714          

Italy

     27,011,199        11,226,753         15,784,446          

Japan

     112,386,059        1,181,201         111,204,858          

Luxembourg

     8,903,595        2,274,055         6,629,540          

Netherlands

     3,187,938        1,433,099         1,754,839          

Norway

     4,039,617                4,039,617          

Panama

     1,664,791        1,664,791                  

South Africa

     1,834,268                1,834,268          

South Korea

     7,616,095                7,616,095          

Sweden

     3,150,243        1,872,376         1,277,867          

Switzerland

     18,328,788        9,276,890         9,051,898          

United Kingdom

     56,576,156        20,684,689         35,891,467          

Short-Term Investments

     6,894,409        6,894,409                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     323,132,355      $     70,647,258       $     252,485,097      $     —   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 11,731      $       $ 11,731      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 11,731      $       $ 11,731      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts(2)

   $ (3,644   $       $ (3,644   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (3,644   $       $ (3,644   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $10,539,681 were transferred from Level 1 to Level 2, and investments valued at $18,379,491 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

75

 


The Hartford International Value Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     12.3

Consumer Staples

     1.9   

Energy

     8.6   

Financials

     20.9   

Health Care

     6.2   

Industrials

     12.8   

Information Technology

     12.8   

Materials

     12.8   

Telecommunication Services

     3.9   

Utilities

     2.3   
  

 

 

 

Total

     94.5
  

 

 

 

Short-Term Investments

     4.4

Other Assets & Liabilities

     1.1   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Currency Concentration of Securities

as of April 30, 2015 (Unaudited)

 

Description    Percentage of
Net Assets
 

Australian Dollar

     0.7

British Pound

     10.5   

Canadian Dollar

     2.1   

Danish Krone

     1.0   

Euro

     27.7   

Hong Kong Dollar

     2.1   

Hungarian Forint

     1.0   

Indian Rupee

     1.0   

Japanese Yen

     37.9   

Norwegian Krone

     0.5   

South African Rand

     1.0   

South Korea Won

     2.0   

Swedish Krona

     0.4   

Swiss Franc

     3.5   

Taiwanese Dollar

     0.3   

United States Dollar

     7.2   

Other Assets & Liabilities

     1.1   
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

76

 


The Hartford International Value Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.5%  
      Australia - 0.8%  
  5,955,304     

Aquarius Platinum Ltd.(1)

  $ 810,841   
  1,234,039     

Energy Resources of Australia Ltd.(1)

    1,308,586   
  1,882,940     

Qantas Airways Ltd.(1)

    5,032,984   
  5,610,190     

Resolute Mining Ltd.(1)

    1,513,375   
   

 

 

 
      8,665,786   
   

 

 

 
      Austria - 0.2%  
  70,853     

Zumtobel Group AG

    1,944,778   
   

 

 

 
      Belgium - 1.7%  
  231,257     

Ageas

    8,688,837   
  850,696     

AGFA-Gevaert N.V.(1)

    2,137,746   
  135,677     

Mobistar S.A.(1)

    2,589,863   
  142,467     

N.V. Bekaert S.A.

    4,138,967   
   

 

 

 
      17,555,413   
   

 

 

 
      Brazil - 0.6%  
  63,930     

HRT Participacoes em Petroleo S.A.(1)

    98,666   
  628,768     

Petroleo Brasileiro S.A. ADR(1)

    5,973,296   
   

 

 

 
      6,071,962   
   

 

 

 
      Canada - 3.0%  
  346,860     

Barrick Gold Corp.

    4,507,886   
  738,400     

Centerra Gold, Inc.

    3,818,994   
  906,298     

Eldorado Gold Corp.

    4,495,238   
  241,420     

EnCana Corp.

    3,427,704   
  2,740,500     

Ivanhoe Mines Ltd. Class A(1)

    2,634,878   
  1,860,496     

Kinross Gold Corp.(1)

    4,521,005   
  789,200     

Legacy Oil + Gas, Inc.(1)

    1,890,417   
  168,000     

Northern Dynasty Minerals Ltd.(1)

    65,445   
  297,740     

Painted Pony Petroleum Ltd.(1)

    1,843,446   
  751,739     

Uranium Participation Corp.(1)

    3,482,985   
   

 

 

 
      30,687,998   
   

 

 

 
      China - 0.5%  
  9,747,390     

Daphne International Holdings Ltd.

    2,716,499   
  547,425     

Sinovac Biotech Ltd.(1)

    2,704,280   
   

 

 

 
      5,420,779   
   

 

 

 
      Denmark - 1.0%  
  203,042     

D/S Norden A/S(1)

    4,073,727   
  310,212     

H. Lundbeck A/S(1)

    6,033,932   
   

 

 

 
      10,107,659   
   

 

 

 
      France - 11.8%  
  87,172     

Alten S.A.

    4,255,097   
  175,551     

BNP Paribas S.A.

    11,086,268   
  78,734     

Cap Gemini S.A.

    7,014,848   
  268,112     

Cie de Saint-Gobain

    12,184,909   
  38,831     

Devoteam S.A.

    1,037,846   
  455,919     

GDF Suez

    9,276,305   
  89,390     

GFI Informatique S.A.

    610,259   
  71,472     

Lafarge S.A.

    5,214,945   
  239,014     

Metropole Television S.A.

    4,988,420   
  479,489     

Orange S.A.

    7,897,813   
  376,367     

Peugeot S.A.(1)

    7,115,447   
  74,782     

Renault S.A.

    7,868,388   
  192,281     

Societe Generale S.A.

    9,613,023   
  86,016     

Sopra Steria Group

    7,596,959   
  128,800     

Thales S.A.

    7,840,801   
  328,458     

Total S.A.

    17,785,985   
   

 

 

 
      121,387,313   
   

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.5% - (continued)  
      Germany - 4.6%  
  607,382     

Deutsche Lufthansa AG(1)

  $ 8,376,792   
  385,776     

E.ON SE

    6,005,762   
  134,153     

Hamburger Hafen und Logistik AG

    2,958,864   
  350,172     

Kontron AG(1)

    1,976,347   
  64,794     

OSRAM Licht AG

    3,413,598   
  178,559     

Rheinmetall AG

    9,141,830   
  194,678     

RWE AG

    4,837,636   
  147,832     

Salzgitter AG

    5,042,658   
  345,745     

Suedzucker AG

    5,211,113   
   

 

 

 
      46,964,600   
   

 

 

 
      Greece - 0.9%  
  6,318,313     

Alpha Bank A.E.(1)

    2,213,972   
  552,956     

Hellenic Telecommunications Organization S.A.(1)

    5,026,329   
  5,457,263     

Piraeus Bank S.A.(1)

    2,435,566   
   

 

 

 
      9,675,867   
   

 

 

 
      Hong Kong - 1.8%  
  5,717,250     

AMVIG Holdings Ltd.

    3,127,667   
  86,800,000     

CST Mining Group Ltd.(1)

    1,106,112   
  382,740     

Dah Sing Financial Holdings Ltd.

    2,687,062   
  101,863,680     

G-Resources Group Ltd.(1)

    3,355,690   
  8,045,660     

Kingboard Laminates Holdings Ltd.

    4,125,136   
  4,571,050     

New World Department Store China Ltd.

    1,315,190   
  8,362,000     

Pacific Basin Shipping Ltd.

    3,096,632   
   

 

 

 
      18,813,489   
   

 

 

 
      Hungary - 1.0%  
  3,007,091     

Magyar Telekom Telecommunications
plc(1)

    4,500,979   
  240,503     

OTP Bank plc

    5,318,051   
   

 

 

 
      9,819,030   
   

 

 

 
      India - 1.0%  
  1,067,956     

Allahabad Bank(1)

    1,732,479   
  318,379     

Canara Bank

    1,893,550   
  1,512,033     

Corp. Bank

    1,353,459   
  5,474,534     

Manappuram Finance Ltd.

    2,979,706   
  1,213,069     

NTPC Ltd.

    2,866,035   
   

 

 

 
      10,825,229   
   

 

 

 
      Ireland - 0.2%  
  69,510     

CRH plc

    1,942,348   
   

 

 

 
      Italy - 3.0%  
  484,157     

Banca Popolare dell-Emilia Romagna Scrl(1)

    3,982,592   
  478,410     

Buzzi Unicem S.p.A.

    7,700,059   
  666,641     

Eni S.p.A.

    12,790,075   
  931,214     

UniCredit S.p.A.

    6,684,372   
   

 

 

 
      31,157,098   
   

 

 

 
      Japan - 37.9%  
  219,680     

Adastria Holdings Co., Ltd.

    6,664,398   
  110,480     

Aeon Delight Co., Ltd.

    2,925,787   
  509,730     

Aichi Steel Corp.

    2,450,454   
  335,660     

Aisan Industry Co., Ltd.

    3,159,682   
  34,840     

Alpha Systems, Inc.

    515,359   
  185,020     

Avex Group Holdings, Inc.

    2,855,540   
  293,380     

Canon, Inc.

    10,460,382   
  176,700     

Cawachi Ltd.

    2,836,724   
  208,800     

Chubu Steel Plate Co., Ltd.

    884,431   
  158,060     

CMIC Holdings Co., Ltd.

    2,347,666   
  415,450     

Dai-ichi Life Insurance Co., Ltd.

    6,828,294   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  77  

 


The Hartford International Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.5% - (continued)  
      Japan - 37.9% - (continued)  
  260,320     

Daiichi Sankyo Co., Ltd.

  $ 4,521,417   
  357,910     

Dena Co., Ltd.

    7,149,619   
  448,000     

Eighteenth Bank Ltd.

    1,466,502   
  142,750     

Eisai Co., Ltd.

    9,515,343   
  175,960     

en-japan, Inc.

    2,614,161   
  188,350     

Exedy Corp.

    4,625,782   
  103,110     

Fuji Machine Manufacturing Co., Ltd.

    1,272,349   
  112,520     

Fujimi, Inc.

    1,902,784   
  1,645,830     

Fujitsu Ltd.

    10,909,146   
  370,350     

Funai Electric Co., Ltd.(1)

    4,375,168   
  103,690     

Gendai Agency, Inc.

    597,402   
  610,430     

Gree, Inc.

    3,941,225   
  223,530     

Hisaka Works Ltd.

    2,050,931   
  211,220     

Hitachi Chemical Co., Ltd.

    4,088,361   
  342,980     

Honda Motor Co., Ltd.

    11,498,528   
  311,170     

Honeys Co., Ltd.

    2,808,840   
  672,450     

Hosiden Corp.

    3,933,983   
  496,910     

Inpex Corp.

    6,236,382   
  253,200     

Itochu Techno-Solutions Corp.

    5,766,367   
  86,200     

Japan Digital Laboratory Co., Ltd.

    1,312,778   
  141,930     

Japan Petroleum Exploration Co., Ltd.

    5,463,647   
  1,328,900     

Japan Steel Works Ltd.

    6,132,742   
  334,080     

JSR Corp.

    5,698,547   
  350,560     

Keihin Corp.

    5,742,030   
  269,740     

Kuroda Electric Co., Ltd.

    4,849,074   
  174,800     

Kyoei Steel Ltd.

    2,863,250   
  177,800     

Maruichi Steel Tube Ltd.

    4,490,794   
  195,960     

Melco Holdings, Inc.

    4,042,758   
  176,300     

Mimasu Semiconductor Industry Co., Ltd.

    2,020,141   
  160,900     

Miraial Co., Ltd.

    1,950,526   
  1,891,540     

Mitsubishi UFJ Financial Group, Inc.

    13,438,162   
  2,204,250     

Mitsui Chemicals, Inc.

    7,287,227   
  217,390     

Mitsumi Electric Co., Ltd.

    1,628,195   
  5,673,800     

Mizuho Financial Group, Inc.

    10,815,849   
  239,770     

Moshi Moshi Hotline, Inc.

    2,590,293   
  511,810     

NET One Systems Co., Ltd.

    3,675,768   
  130,520     

Neturen Co., Ltd.

    971,702   
  629,390     

Nichicon Corp.

    5,806,380   
  508,300     

Nikon Corp.

    7,227,249   
  52,210     

Nintendo Co., Ltd.

    8,766,061   
  434,260     

Nishimatsuya Chain Co., Ltd.

    4,035,608   
  161,500     

Nissin Kogyo Co., Ltd.

    2,661,892   
  79,170     

Nitto Denko Corp.

    5,073,651   
  389,020     

Oita Bank Ltd.

    1,521,516   
  130,310     

Pal Co., Ltd.

    4,188,355   
  115,740     

Proto Corp.

    1,688,004   
  102,730     

Rohm Co., Ltd.

    7,125,843   
  959,890     

SCREEN Holdings Co., Ltd.

    6,516,323   
  50,020     

Shimamura Co., Ltd.

    4,985,738   
  365,650     

Shinkawa Ltd.(1)

    2,382,696   
  816,210     

Shinko Electric Industries Co., Ltd.

    6,522,439   
  1,163,580     

Sumitomo Bakelite Co., Ltd.

    5,304,700   
  277,630     

Sumitomo Mitsui Financial Group, Inc.

    12,122,599   
  439,450     

Sumitomo Riko Co., Ltd.

    3,801,367   
  60,300     

Suzuken Co. Ltd/Aichi Japan

    1,886,931   
  768,440     

T&D Holdings, Inc.

    11,088,417   
  272,150     

Takata Corp.

    3,364,733   
  262,170     

Takeda Pharmaceutical Co., Ltd.

    13,460,077   
  395,570     

Tochigi Bank Ltd.

    2,124,921   
  228,530     

Tokai Rika Co., Ltd.

    5,583,588   
  257,580     

Tokyo Seimitsu Co., Ltd.

    5,551,955   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.5% - (continued)  
      Japan - 37.9% - (continued)  
  646,770     

Tokyo Steel Manufacturing Co., Ltd.

  $ 4,464,987   
  54,330     

Topre Corp.

    876,652   
  1,008,630     

Toshiba Machine Co., Ltd.

    4,478,926   
  322,780     

Toyoda Gosei Co., Ltd.

    7,468,014   
  441,810     

Toyota Boshoku Corp.

    6,559,556   
  427,580     

Ushio, Inc.

    5,607,079   
  233,090     

Xebio Co., Ltd.

    4,114,175   
  410,870     

Yamanashi Chuo Bank Ltd.

    1,908,210   
  161,660     

Yamato Kogyo Co., Ltd.

    3,803,522   
  662,150     

Yodogawa Steel Works Ltd.

    2,681,209   
   

 

 

 
      390,929,863   
   

 

 

 
      Luxembourg - 0.4%  
  247,917     

Oriflame Cosmetics S.A.

    4,281,069   
   

 

 

 
      Netherlands - 4.0%  
  393,771     

Delta Lloyd N.V.

    7,456,788   
  723,382     

ING Groep N.V.(1)

    11,097,793   
  183,916     

Koninklijke Philips N.V.

    5,268,135   
  1,983,091     

PostNL N.V.(1)

    9,848,215   
  523,040     

TNT Express N.V.(2)

    4,464,705   
  256,826     

USG People N.V.

    3,487,706   
   

 

 

 
      41,623,342   
   

 

 

 
      Norway - 0.5%  
  1,571,644     

Storebrand ASA(1)

    5,556,861   
   

 

 

 
      Russia - 1.1%  
  1,028,069     

Gazprom OAO ADR

    6,023,407   
  111,400     

Lukoil OAO ADR

    5,700,311   
   

 

 

 
      11,723,718   
   

 

 

 
      South Africa - 1.3%  
  126,201     

Anglo American Platinum Ltd.(1)

    3,485,644   
  756,680     

Impala Platinum Holdings Ltd.(1)

    4,211,297   
  1,482,390     

Lonmin plc(1)

    3,276,879   
  1,466,972     

Raubex Group Ltd.

    2,207,317   
   

 

 

 
      13,181,137   
   

 

 

 
      South Korea - 2.0%  
  141,146     

KB Financial Group, Inc.

    5,382,505   
  282,134     

KT Corp.(1)

    8,339,867   
  78,332     

Shinhan Financial Group Co., Ltd.

    3,242,016   
  244,291     

Tongyang Life Insurance

    3,359,283   
   

 

 

 
      20,323,671   
   

 

 

 
      Spain - 1.5%  
  294,912     

Almirall S.A.(1)

    5,560,463   
  644,515     

Telefonica S.A.

    9,809,801   
   

 

 

 
      15,370,264   
   

 

 

 
      Switzerland - 3.5%  
  100,697     

Adecco S.A.(1)

    8,206,471   
  73,279     

Holcim Ltd.(1)

    5,886,537   
  103,326     

Julius Baer Group Ltd.(1)

    5,408,159   
  368,019     

Micronas Semiconductor Holding AG(1)

    2,252,413   
  733,317     

UBS Group AG(1)

    14,649,714   
   

 

 

 
      36,403,294   
   

 

 

 
      Taiwan - 0.3%  
  3,540,900     

Compal Electronics, Inc.

    3,223,718   
   

 

 

 
      United Kingdom - 9.9%  
  486,426     

Anglo American plc

    8,241,277   
  258,612     

AstraZeneca plc

    17,747,660   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  78  

 


The Hartford International Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 94.5% - (continued)  
      United Kingdom - 9.9% - (continued)  
  2,961,569     

BP plc

  $ 21,360,005   
  2,128,888     

Hays plc

    5,003,638   
  1,226,687     

Home Retail Group plc

    3,134,598   
  2,506,242     

HSBC Holdings plc

    25,036,098   
  1,696,967     

J Sainsbury plc

    7,056,118   
  1,172,742     

SIG plc

    3,485,159   
  685,311     

Standard Chartered plc

    11,220,048   
   

 

 

 
      102,284,601   
   

 

 

 
 

Total Common Stocks
(cost $958,969,508)

  $ 975,940,887   
   

 

 

 
 

Total Long-Term Investments
(cost $958,969,508)

  $ 975,940,887   
   

 

 

 
SHORT-TERM INVESTMENTS - 4.4%      
      Other Investment Pools & Funds - 4.4%  
  44,833,243     

Fidelity Money Market Class 1

  $ 44,833,243   
   

 

 

 
 

Total Short-Term Investments
(cost $44,833,243)

  $ 44,833,243   
   

 

 

 
 

Total Investments
(cost $1,003,802,751)^

    98.9    $ 1,020,774,130   
 

Other Assets and Liabilities

    1.1      11,723,022   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,032,497,152   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

79

 


The Hartford International Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $1,005,548,575 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 69,186,247   

Unrealized Depreciation

         (53,960,692
  

 

 

 

Net Unrealized Appreciation

   $ 15,225,555   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
03/2015      523,040       TNT Express N.V.    $     3,343,378   

At April 30, 2015, the aggregate value of these securities were $4,464,705, which represents 0.4% of total net assets.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

EAFE (mini MSCI) Index Future

     224         06/19/2015       $     21,256,638       $     21,215,040       $ (41,598
              

 

 

 

Total futures contracts

               $     (41,598
              

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

DKK

   Buy      05/04/15       MSC    $     287,398       $     289,401       $ 2,003   

EUR

   Buy      05/04/15       DEUT      95,022         95,554         532   

EUR

   Buy      05/05/15       WEST      563,949         565,682         1,733   

EUR

   Sell      05/04/15       DEUT      834,357         839,027         (4,670

JPY

   Buy      05/01/15       DEUT      38,996         38,923         (73

JPY

   Buy      05/08/15       DEUT      59,811         59,575         (236

NOK

   Buy      05/04/15       MSC      834,170         829,772         (4,398
                 

 

 

 

Total

                  $     (5,109
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

MSC

   Morgan Stanley

WEST

   Westpac International
Currency Abbreviations:

DKK

   Danish Krone

EUR

   Euro

JPY

   Japanese Yen

NOK

   Norwegian Krone
Other Abbreviations:

ADR

   American Depositary Receipt
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


The Hartford International Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)     Level 2(1)     Level 3  

Assets

        

Common Stocks

        

Australia

   $ 8,665,786      $ 2,119,427      $ 6,546,359      $   

Austria

     1,944,778        1,944,778                 

Belgium

     17,555,413        4,727,609        12,827,804          

Brazil

     6,071,962        6,071,962                 

Canada

     30,687,998        30,687,998                 

China

     5,420,779        5,420,779                 

Denmark

     10,107,659               10,107,659          

France

     121,387,313        610,259        120,777,054          

Germany

     46,964,600               46,964,600          

Greece

     9,675,867               9,675,867          

Hong Kong

     18,813,489        4,442,857        14,370,632          

Hungary

     9,819,030        4,500,979        5,318,051          

India

     10,825,229               10,825,229          

Ireland

     1,942,348               1,942,348          

Italy

     31,157,098               31,157,098          

Japan

     390,929,863               390,929,863          

Luxembourg

     4,281,069               4,281,069          

Netherlands

     41,623,342        7,456,788        34,166,554          

Norway

     5,556,861               5,556,861          

Russia

     11,723,718        861,000        10,862,718          

South Africa

     13,181,137        2,207,317        10,973,820          

South Korea

     20,323,671               20,323,671          

Spain

     15,370,264               15,370,264          

Switzerland

     36,403,294        2,252,413        34,150,881          

Taiwan

     3,223,718               3,223,718          

United Kingdom

     102,284,601               102,284,601          

Short-Term Investments

     44,833,243        44,833,243                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     1,020,774,130      $     118,137,409      $     902,636,721      $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts(2)

   $ 4,268      $      $ 4,268      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 4,268      $      $ 4,268      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts(2)

   $ (9,377   $      $ (9,377   $   

Futures Contracts(2)

     (41,598     (41,598              
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (50,975   $ (41,598   $ (9,377   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $6,616,886 were transferred from Level 1 to Level 2, and investments valued at $15,747,014 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

81

 


The Hartford International Value Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary – (continued)

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six month period ended April 30, 2015:

 

     Common Stocks     Total  

Beginning balance

   $ 20,515      $ 20,515   

Purchases

              

Sales

     (2,807,719     (2,807,719

Accrued discounts/(premiums)

              

Total realized gain/(loss)

         (1,057,413         (1,057,413

Net change in unrealized appreciation/depreciation

     1,677,239        1,677,239   

Transfers into Level 3(1)

     2,167,378        2,167,378   

Transfers out of Level 3(1)

              
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  82  

 


 

 

[This page is intentionally left blank]

 

 

 

 

 

83

 


Hartford Funds – International/Global Equity

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     Hartford
Emerging
Markets
Equity Fund
     Hartford
Global Capital
Appreciation
Fund
     Hartford
Global Equity
Income Fund
 

Assets:

        

Investments in securities, at market value

   $ 205,759,201       $ 1,457,057,669       $ 306,419,297   

Cash

             95,037           

Cash collateral

                       

Foreign currency on deposit with custodian

     314,411         274,711         66,508   

Unrealized appreciation on foreign currency contracts

     471         329,186         442,520   

Receivables:

        

Investment securities sold

     3,911,239         19,805,508           

Fund shares sold

     67,227         2,045,548         748,066   

Dividends and interest

     329,962         3,261,610         1,304,385   

Other assets

     67,044         89,180         86,048   
  

 

 

    

 

 

    

 

 

 

Total assets

     210,449,555         1,482,958,449         309,066,824   
  

 

 

    

 

 

    

 

 

 

Liabilities:

        

Unrealized depreciation on foreign currency contracts

     3,093         1,096,604         738,346   

Bank overdraft

     961,126                   

Payables:

        

Investment securities purchased

     1,846,016         33,335,363         930,521   

Fund shares redeemed

     214,487         1,220,131         53,098   

Investment management fees

     204,228         912,201         185,646   

Variation margin on financial derivative instruments

                       

Foreign taxes

     98,739                   

Distribution fees

     5,632         435,129         30,830   

Accrued expenses

     40,224         260,697         46,638   
  

 

 

    

 

 

    

 

 

 

Total liabilities

     3,373,545         37,260,125         1,985,079   
  

 

 

    

 

 

    

 

 

 

Net assets

   $ 207,076,010       $ 1,445,698,324       $ 307,081,745   
  

 

 

    

 

 

    

 

 

 

Summary of Net Assets:

        

Capital stock and paid-in-capital

   $ 184,289,783       $ 1,340,193,391       $ 305,296,365   

Undistributed (distributions in excess of) net investment income

     258,609         3,035,267         1,435,752   

Accumulated net realized gain (loss)

     2,021,532         31,215,634         (7,381,652

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     20,506,086         71,254,032         7,731,280   
  

 

 

    

 

 

    

 

 

 

Net assets

   $     207,076,010       $     1,445,698,324       $     307,081,745   
  

 

 

    

 

 

    

 

 

 

Shares authorized

     600,000,000         1,000,000,000         900,000,000   
  

 

 

    

 

 

    

 

 

 

Par value

   $ 0.001       $ 0.001       $ 0.001   
  

 

 

    

 

 

    

 

 

 

Class A:     Net asset value per share

   $ 8.80       $ 17.94       $ 11.67   
  

 

 

    

 

 

    

 

 

 

                 Maximum offering price per share

   $ 9.31       $ 18.98       $ 12.35   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     1,305,020         41,894,915         8,390,053   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 11,482,126       $ 751,652,486       $ 97,905,285   
  

 

 

    

 

 

    

 

 

 

Class B:     Net asset value per share

   $       $ 16.40       $ 11.43   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

             2,106,822         163,214   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $       $ 34,549,400       $ 1,865,217   
  

 

 

    

 

 

    

 

 

 

Class C:     Net asset value per share

   $ 8.65       $ 16.54       $ 11.40   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     308,664         17,345,117         1,055,655   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 2,668,401       $ 286,850,816       $ 12,036,354   
  

 

 

    

 

 

    

 

 

 

Class I:      Net asset value per share

   $ 8.78       $ 18.44       $ 11.69   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     391,263         6,301,127         195,462   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 3,434,482       $ 116,222,476       $ 2,284,069   
  

 

 

    

 

 

    

 

 

 

Class R3:   Net asset value per share

   $ 8.74       $ 17.69       $ 11.64   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     226,938         1,856,247         38,622   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,982,802       $ 32,832,907       $ 449,545   
  

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

84

 


Hartford Funds – International/Global Equity

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

Hartford
International
Capital
Appreciation Fund
    The Hartford
International
Growth Fund
    The Hartford
International
Opportunities
Fund
    The Hartford
International
Small Company
Fund
    The Hartford
International
Value Fund
 
       
$ 33,978,973      $ 212,891,295      $ 1,587,375,656      $ 323,132,355      $ 1,020,774,130   
  5,854               79,750        11,987        115,261   
                              739,200   
  19,554        68,157        378,391        2        660,769   
  994        9,536        24,846        11,731        4,268   
       
  352,522        3,229,402        11,198,252        978,747        3,464,143   
  63,292        6,930,058        3,922,152        486,754        9,204,795   
  135,628        524,920        6,067,010        1,291,502        4,203,157   
  60,192        75,534        76,496        76,170        104,898   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  34,617,009        223,728,902        1,609,122,553        325,989,248        1,039,270,621   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
       
  2,266        11,332        53,921        3,644        9,377   
                                
       
  392,061        4,243,388        14,581,823        4,875,989        4,504,024   
  3,929        190,013        2,128,550        248,620        1,104,415   
  24,810        145,012        874,985        234,585        666,734   
                              286,859   
                              49,503   
  6,205        40,309        205,031        34,584        110,936   
  22,416        62,548        254,045        66,389        41,621   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  451,687        4,692,602        18,098,355        5,463,811        6,773,469   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 34,165,322      $ 219,036,300      $ 1,591,024,198      $ 320,525,437      $ 1,032,497,152   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
       
$ 31,185,309      $ 435,487,736      $ 1,451,756,844      $ 306,877,392      $ 1,009,516,881   
  3,137        260,851        4,257,722        (2,705,754     2,345,673   
  (28,353     (238,731,397     (713,873     (2,433,306     3,747,135   
 
 
    
3,005,229
 
  
    22,019,110        135,723,505        18,787,105        16,887,463   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 34,165,322      $ 219,036,300      $     1,591,024,198      $     320,525,437      $     1,032,497,152   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
      525,000,000            500,000,000        650,000,000        500,000,000        500,000,000   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.15      $ 13.37      $ 15.82      $ 14.59      $ 15.59   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.74      $ 14.15      $ 16.74      $ 15.44      $ 16.50   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,264,003        8,691,162        33,595,643        4,926,012        20,761,140   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 12,834,293      $ 116,218,701      $ 531,426,987      $ 71,878,197      $ 323,591,580   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.13      $ 12.38      $ 14.39      $ 13.68      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  91,488        270,034        397,909        128,539          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 926,762      $ 3,342,161      $ 5,727,438      $ 1,758,891      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.07      $ 12.37      $ 14.00      $ 13.32      $ 15.37   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  264,830        1,393,279        4,210,816        1,161,961        3,817,486   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 2,666,265      $ 17,228,945      $ 58,943,925      $ 15,476,193      $ 58,680,647   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.20      $ 13.27      $ 15.75      $ 14.49      $ 15.72   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  255,364        2,748,086        6,095,503        3,471,064        34,313,471   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 2,605,856      $ 36,466,982      $ 95,980,800      $ 50,281,904      $ 539,339,750   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.18      $ 13.52      $ 16.07      $ 14.70      $ 15.58   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  129,131        60,076        3,066,192        703,000        90,948   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 1,313,910      $ 812,314      $ 49,283,948      $ 10,331,024      $ 1,416,778   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

85

 


Hartford Funds – International/Global Equity

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     Hartford
Emerging
Markets
Equity Fund
     Hartford
Global Capital
Appreciation
Fund
     Hartford
Global Equity
Income Fund
 

Class R4:   Net asset value per share

   $ 8.77       $ 18.20       $ 11.68   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     222,342         678,254         50,331   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,949,442       $ 12,340,947       $ 587,896   
  

 

 

    

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 8.78       $ 18.54       $ 11.70   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     224,415         24,938         52,015   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,970,522       $ 462,293       $ 608,478   
  

 

 

    

 

 

    

 

 

 

Class R6:   Net asset value per share

   $       $       $   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

                       
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $       $       $   
  

 

 

    

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 8.77       $ 18.73       $ 11.68   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     20,934,347         11,255,558         16,376,299   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 183,588,235       $ 210,786,999       $ 191,344,901   
  

 

 

    

 

 

    

 

 

 

Cost of investments

   $     185,147,940       $     1,385,009,426       $     298,406,433   

Cost of foreign currency on deposit with custodian

   $ 314,652       $ 273,350       $ 66,010   

 

The accompanying notes are an integral part of these financial statements.

 

 

  86  

 


Hartford Funds – International/Global Equity

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

Hartford
International
Capital
Appreciation Fund
    The Hartford
International
Growth Fund
    The Hartford
International
Opportunities
Fund
    The Hartford
International
Small Company
Fund
    The Hartford
International
Value Fund
 
$ 10.19      $ 13.74      $ 16.32      $ 14.76      $ 15.65   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  120,761        162,137        7,407,494        514,253        167,858   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 1,230,785      $ 2,227,265      $ 120,893,356      $ 7,588,771      $ 2,626,551   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.21      $ 13.82      $ 16.45      $ 14.83      $ 15.73   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  111,664        277,912        5,866,545        30,345        82,165   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 1,139,788      $ 3,840,656      $ 96,513,572      $ 450,147      $ 1,292,515   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $      $ 16.53      $      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                654                 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $      $ 10,808      $      $   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.21      $ 13.86      $ 16.53      $ 14.84      $ 16.00   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,121,387        2,805,886        38,249,300        10,970,752        6,597,673   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 11,447,663      $ 38,899,276      $ 632,243,364      $ 162,760,310      $ 105,549,331   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     30,972,445      $     190,867,127      $     1,451,545,413      $     304,329,098      $     1,003,802,751   
$ 19,357      $ 68,033      $ 372,238      $ 2      $ 652,179   

 

The accompanying notes are an integral part of these financial statements.

 

 

  87  

 


Hartford Funds – International/Global Equity

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     Hartford
Emerging
Markets
Equity Fund
    Hartford
Global Capital
Appreciation
Fund
    Hartford
Global Equity
Income Fund
 

Investment Income:

      

Dividends

   $ 1,990,520      $ 12,950,942      $ 4,948,993   

Interest

     2,170        9,885        1,847   

Less: Foreign tax withheld

     (179,725     (649,124     (245,859
  

 

 

   

 

 

   

 

 

 

Total investment income, net

     1,812,965        12,311,703        4,704,981   
  

 

 

   

 

 

   

 

 

 

Expenses:

      

Investment management fees

     1,193,653        5,392,225        1,070,424   

Administrative services fees

      

Class R3

     1,832        31,758        443   

Class R4

     1,338        7,800        410   

Class R5

     901        599        311   

Transfer agent fees

      

Class A

     11,376        645,247        97,914   

Class B

            56,251        4,363   

Class C

     2,134        171,415        12,856   

Class I

     487        65,883        1,342   

Class R3

     22        2,101        56   

Class R4

     7        481        52   

Class R5

            108        15   

Class R6

                     

Class Y

     1,396        1,592        1,450   

Distribution fees

      

Class A

     13,187        898,393        104,051   

Class B

            202,495        10,078   

Class C

     12,547        1,386,757        54,070   

Class R3

     4,580        79,395        1,108   

Class R4

     2,230        13,000        683   

Custodian fees

     29,363        33,318        10,910   

Registration and filing fees

     42,993        91,057        47,049   

Accounting services fees

     24,867        97,933        25,692   

Board of Directors’ fees

     3,719        14,629        2,642   

Audit fees

     16,514        18,348        17,356   

Other expenses

     16,115        114,595        19,293   
  

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     1,379,261        9,325,380        1,482,568   

Expense waivers

     (505            (190

Management fee waivers

     (35,887     (62,882     (70,307

Transfer agent fee waivers

                   (1,337

Commission Recapture

     (1,352     (11,922     (889

Custodian fee offset

            (1       
  

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (37,744     (74,805     (72,723
  

 

 

   

 

 

   

 

 

 

Total expenses, net

     1,341,517        9,250,575        1,409,845   
  

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     471,448        3,061,128        3,295,136   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net realized gain (loss) on investments

     4,344,918        36,097,023        (1,377,775

Less: Foreign taxes paid on realized capital gains.

            (650       

Net realized gain (loss) on futures contracts

                     

Net realized gain (loss) on foreign currency contracts

     (144,984     7,073,024        1,395,372   

Net realized gain (loss) on other foreign currency transactions

     25,271        (469,097     (133,931
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     4,225,205        42,700,300        (116,334
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net unrealized appreciation (depreciation) of investments

     6,803,534        49,516,673        11,437,319   

Net unrealized appreciation (depreciation) of purchased options contracts

     19,752                 

Net unrealized appreciation (depreciation) of future contracts

                     

Net unrealized appreciation (depreciation) of foreign currency contracts

     (5,068     (3,257,117     (320,770

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     (884     57,020        42,617   
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     6,817,334        46,316,576        11,159,166   
  

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     11,042,539        89,016,876        11,042,832   
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     11,513,987      $     92,078,004      $     14,337,968   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

88

 


Hartford Funds – International/Global Equity

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

Hartford
International
Capital
Appreciation Fund
    The Hartford
International
Growth Fund
    The Hartford
International
Opportunities
Fund
    The Hartford
International
Small Company
Fund
    The Hartford
International
Value Fund
 
       
$ 312,267      $ 1,708,329      $ 14,184,646      $ 2,343,850      $ 8,843,720   
  636        1,171        12,403        1,336        8,348   
  (28,827     (166,206     (1,522,763     (183,022     (854,728

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  284,076        1,543,294        12,674,286        2,162,164        7,997,340   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
       
  140,692        766,750        4,930,922        1,247,819        3,421,412   
       
  1,221        576        43,922        9,583        1,252   
  851        1,340        82,445        5,187        1,485   
  529        1,111        43,316        183        593   
       
  13,905        147,602        474,846        85,252        155,402   
  595        12,722        17,030        6,835          
  2,075        17,247        48,448        16,171        30,364   
  438        11,474        53,135        29,378        247,747   
  127        269        1,390        130        83   
  74        111        1,651        117        68   
         34        1,339        68        34   
                                
  83        290        4,532        999        441   
       
  15,090        127,098        593,777        83,932        207,938   
  4,361        19,063        30,533        10,574          
  10,679        71,833        269,800        75,052        273,079   
  3,053        1,439        109,804        23,958        3,129   
  1,418        2,233        137,408        8,645        2,475   
  5,189        9,670        68,433        12,329        31,722   
  46,300        46,119        79,826        46,683        88,247   
  3,126        18,040        130,323        24,958        74,202   
  843        2,132        20,480        4,810        7,346   
  13,885        10,513        14,877        9,422        11,771   
  7,008        22,683        102,207        28,885        27,822   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  271,542        1,290,349        7,260,444        1,730,970        4,586,612   
  (950     (10,950                     
  (61,589     (6,149            (3,554     (41
         (7,000     (7,854     (3,653       
  (175            (8,698     (204     (2,241
                (1            (12

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (62,714     (24,099     (16,553     (7,411     (2,294

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  208,828        1,266,250        7,243,891        1,723,559        4,584,318   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  75,248        277,044        5,430,395        438,605        3,413,022   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
       
  133,523        2,421,696        3,633,668        (1,099,207     3,928,464   
                              (8,562
                              2,273,926   
  (3,873     10,667        305,992        126,697        1,983,104   
  9,277        (67,209     (854,848     (142,526     (1,521

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  138,927        2,365,154        3,084,812        (1,115,036     8,175,411   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
       
  1,849,943        10,308,924        85,338,934        24,228,857        71,284,138   
                                
                              (156,849
  (8,162     22,930        (8,049     (62,770     (1,087,823
  1,601        (10,093     49,655        68,165        30,117   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

1,843,382

  

    10,321,761        85,380,540        24,234,252        70,069,583   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,982,309        12,686,915        88,465,352        23,119,216        78,244,994   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     2,057,557      $     12,963,959      $     93,895,747      $     23,557,821      $     81,658,016   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

89

 


Hartford Funds – International/Global Equity

Statements of Changes in Net Assets

 

 

 

     Hartford Emerging Markets
Equity Fund
 
     For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
 

Operations:

    

Net investment income (loss)

   $ 471,448      $ 2,458,967   

Net realized gain (loss) on investments and foreign currency transactions

     4,225,205        13,526,700   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     6,817,334        (11,823,546
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     11,513,987        4,162,121   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (62,853     (47,026

Class B

              

Class C

              

Class I

     (31,683     (20,399

Class R3

     (6,929     (4,928

Class R4

     (12,078     (9,888

Class R5

     (17,728     (15,197

Class Y

     (1,908,998     (2,080,771
  

 

 

   

 

 

 

Total from net investment income

     (2,040,269     (2,178,209
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

     (768,362     (75,774

Class B

              

Class C

     (187,327     (25,182

Class I

     (219,132     (21,064

Class R3

     (135,221     (17,168

Class R4

     (129,196     (16,349

Class R5

     (130,052     (16,419

Class Y

     (12,927,458     (2,144,724
  

 

 

   

 

 

 

Total from net realized gain on investments

     (14,496,748     (2,316,680
  

 

 

   

 

 

 

Total distributions

     (16,537,017     (4,494,889
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     15,878,476        48,841,425   

Issued in merger

              

Issued on reinvestment of distributions

     16,522,971        4,494,462   

Redeemed

     (23,213,107     (105,321,986
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     9,188,340        (51,986,099
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     4,165,310        (52,318,867
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     202,910,700        255,229,567   
  

 

 

   

 

 

 

End of period

   $     207,076,010      $     202,910,700   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 258,609      $ 1,827,430   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

90

 


Hartford Funds – International/Global Equity

Statements of Changes in Net Assets – (continued)

 

 

 

Hartford Global Capital
Appreciation Fund
    Hartford Global Equity
Income Fund
    Hartford International Capital
Appreciation Fund
    The Hartford International
Growth Fund
 
For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
             
$ 3,061,128      $ 6,112,462      $ 3,295,136      $ 1,989,252      $ 75,248      $ 219,011      $ 277,044      $ 676,664   
  42,700,300        249,253,448        (116,334     16,005,035        138,927        2,796,311        2,365,154        14,980,522   
  46,316,576        (163,032,000     11,159,166        (15,545,482     1,843,382        (2,934,633     10,321,761        (10,523,293

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  92,078,004        92,333,910        14,337,968        2,448,805        2,057,557        80,689        12,963,959        5,133,893   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
  (2,519,821            (599,576     (459,507     (110,098     (102,438     (198,241     (665,589
                (5,608                   (1,434              
                (38,916            (3,823     (4,350              
  (730,443            (16,523     (13,226     (22,053     (17,062     (108,250     (56,016
  (76,256            (2,597     (1,617     (7,164     (6,873            (1,856
  (51,833            (4,146     (3,848     (10,312     (9,305     (6,043     (8,612
  (9,371            (5,436     (7,001     (12,812     (11,584     (1,795     (1,752
  (1,489,622     (139,504     (1,682,794     (1,311,674     (134,079     (121,195     (275,565     (45,196

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (4,877,346     (139,504     (2,355,596     (1,796,873     (300,341     (274,241     (589,894     (779,021

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  (113,435,449     (13,469,470     (3,433,336     (5,061,732     (306,590                     
  (7,540,897     (1,572,923     (94,968     (255,131     (23,073                     
  (47,257,647     (7,293,427     (474,995     (846,333     (50,320                     
  (18,073,143     (3,052,168     (82,785     (52,931     (46,507                     
  (5,040,876     (832,065     (20,323     (43,220     (31,538                     
  (1,641,373     (287,535     (24,044     (36,337     (29,439                     
  (230,793     (30,873     (28,736     (34,535     (27,284                     
  (31,496,913     (369,679     (8,163,878     (334,114     (273,857                     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (224,717,091     (26,908,140     (12,323,065     (6,664,333     (788,608                     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (229,594,437     (27,047,644     (14,678,661     (8,461,206     (1,088,949     (274,241     (589,894     (779,021

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  82,617,709        354,134,510        28,731,638        225,884,748        5,116,701        4,098,611        70,682,102        66,378,857   
         224,754,075                                             
  221,568,919        25,725,052        14,476,560        8,158,232        1,086,823        273,736        583,377        766,845   
  (153,258,308     (229,462,140     (19,546,629     (23,125,203     (2,706,094     (6,244,831     (26,916,085     (32,882,701

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  150,928,320        375,151,497        23,661,569        210,917,777        3,497,430        (1,872,484     44,349,394        34,263,001   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  13,411,887        440,437,763        23,320,876        204,905,376        4,466,038        (2,066,036     56,723,459        38,617,873   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  1,432,286,437        991,848,674        283,760,869        78,855,493        29,699,284        31,765,320        162,312,841        123,694,968   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     1,445,698,324      $     1,432,286,437      $     307,081,745      $     283,760,869      $     34,165,322      $     29,699,284      $     219,036,300      $     162,312,841   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 3,035,267      $ 4,851,485      $ 1,435,752      $ 496,212      $ 3,137      $ 228,230      $ 260,851      $ 573,701   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

91

 


Hartford Funds – International/Global Equity

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford International
Opportunities Fund
 
     For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
 

Operations:

    

Net investment income (loss)

   $ 5,430,395      $ 16,685,052   

Net realized gain (loss) on investments and foreign currency transactions

     3,084,812        157,601,100   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     85,380,540        (138,198,035
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     93,895,747        36,088,117   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (5,100,628     (4,724,239

Class B

     (8,189     (30,439

Class C

     (319,183     (338,533

Class I

     (1,385,495     (972,338

Class R3

     (381,545     (327,072

Class R4

     (1,235,881     (1,024,459

Class R5

     (1,202,064     (1,108,226

Class R6

     (151       

Class Y

     (8,623,569     (11,427,608
  

 

 

   

 

 

 

Total from net investment income

     (18,256,705     (19,952,914
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

     (51,155,959     (12,861,098

Class B

     (782,407     (303,338

Class C

     (6,707,324     (1,602,409

Class I

     (10,765,665     (2,078,813

Class R3

     (4,598,752     (1,087,525

Class R4

     (11,507,792     (2,675,344

Class R5

     (9,223,287     (2,378,331

Class R6

     (1,071       

Class Y

     (61,038,744     (23,480,517
  

 

 

   

 

 

 

Total from net realized gain on investments

     (155,781,001     (46,467,375
  

 

 

   

 

 

 

Total distributions

     (174,037,706     (66,420,289
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     219,790,819        595,715,934   

Issued on reinvestment of distributions

     170,180,982        65,168,310   

Redeemed

     (158,295,043     (659,647,344
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     231,676,758        1,236,900   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     151,534,799        (29,095,272
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     1,439,489,399        1,468,584,671   
  

 

 

   

 

 

 

End of period

   $     1,591,024,198      $     1,439,489,399   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 4,257,722      $ 17,084,032   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

92

 


Hartford Funds – International/Global Equity

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford International
Small Company Fund
    The Hartford International
Value Fund
 
For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
 
     
$ 438,605      $ 2,046,175      $ 3,413,022      $ 3,040,111   
  (1,115,036     50,885,510        8,175,411        9,438,476   
  24,234,252        (56,847,077     70,069,583        (56,062,986

 

 

   

 

 

   

 

 

   

 

 

 
  23,557,821        (3,915,392     81,658,016        (43,584,399

 

 

   

 

 

   

 

 

   

 

 

 
     
     
  (1,191,693     (122,034     (612,185       
  (11,993                     
  (174,013            (78,837       
  (591,151     (56,267     (3,864,949       
  (161,595     (8,289     (2,421       
  (138,637     (16,786     (6,946       
  (7,459     (3,914     (7,803       
                         
  (2,946,175     (1,304,591     (591,692       

 

 

   

 

 

   

 

 

   

 

 

 
  (5,222,716     (1,511,881     (5,164,833       

 

 

   

 

 

   

 

 

   

 

 

 
     
  (11,919,848                     
  (450,477                     
  (2,942,481                     
  (5,927,600                     
  (1,676,644                     
  (1,218,383                     
  (59,122                     
                         
  (21,896,588                     

 

 

   

 

 

   

 

 

   

 

 

 
  (46,091,143                     

 

 

   

 

 

   

 

 

   

 

 

 
  (51,313,859     (1,511,881     (5,164,833       

 

 

   

 

 

   

 

 

   

 

 

 
     
  91,853,595        149,312,236        527,031,809        894,044,011   
  48,585,966        1,497,442        3,774,301          
  (51,464,766         (200,164,079     (310,235,863         (146,661,044

 

 

   

 

 

   

 

 

   

 

 

 
  88,974,795        (49,354,401     220,570,247        747,382,967   

 

 

   

 

 

   

 

 

   

 

 

 
  61,218,757        (54,781,674     297,063,430        703,798,568   

 

 

   

 

 

   

 

 

   

 

 

 
     
  259,306,680        314,088,354        735,433,722        31,635,154   

 

 

   

 

 

   

 

 

   

 

 

 
$     320,525,437      $ 259,306,680      $     1,032,497,152      $ 735,433,722   

 

 

   

 

 

   

 

 

   

 

 

 
$ (2,705,754   $ 2,078,357      $ 2,345,673      $ 4,097,484   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

93

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited)

April 30, 2015

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. (the “Company”) is an open-end management investment company comprised of forty-six series as of April 30, 2015. The financial statements for certain other series of the Company are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

Hartford Emerging Markets Equity Fund (the “Emerging Markets Equity Fund”)

Hartford Global Capital Appreciation Fund (the “Global Capital Appreciation Fund”)

Hartford Global Equity Income Fund (the “Global Equity Income Fund”)

Hartford International Capital Appreciation Fund (the “International Capital Appreciation Fund”)

The Hartford International Growth Fund (the “International Growth Fund”)

The Hartford International Opportunities Fund (the “International Opportunities Fund”)

The Hartford International Small Company Fund (the “International Small Company Fund”)

The Hartford International Value Fund (the “International Value Fund”)

The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). The International Growth Fund’s portfolio managers are John A. Boselli (50%) and Jean-Marc Berteaux (50%). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class C, Class I, Class R3, Class R4, Class R5 and Class Y shares. In addition, each Fund, except for Emerging Markets Equity Fund and International Value Fund, offers Class B shares. Effective November 7, 2014, International Opportunities Fund began offering Class R6 shares. Class A shares of each Fund are sold with a front-end sales charge of up to 5.50%. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4, R5 and R6 shares, which are offered to employer-sponsored retirement plans, and Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

 

2. Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a) Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

 

94

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

  b) Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, each Fund will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of each Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Company’s Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Investments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign investments in which a Fund invests 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 NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio investment is primarily traded. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If the last trade price for exchange traded options does not fall between the bid and ask prices, the value will be the mean of the bid and ask prices as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of over-the-counter (“OTC”) options and such instruments that do not trade on an exchange, values may be supplied by a pricing service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of certain Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Funds.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds are valued at the respective NAV of each open-end mutual fund on the Valuation Date.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

 

   

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include

 

 

95

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors of the Company generally reviews and approves the “Procedures for Valuation of Portfolio Securities” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include the Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of the Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, the Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each Company then must consider for ratification all of the fair value determinations made during the previous quarter.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Investment Valuation Hierarchy Level Summary and the Level 3 roll-forward reconciliation, if applicable, which follow the Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, certain Funds will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

 

  d) Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which a Fund invests. The amount of foreign tax expense is included on the accompanying Statements of Operations as a reduction to net realized gain on investments in these securities.

 

 

96

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

  e) Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The Funds do not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

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

 

  f) Joint Trading Account – Each Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  g) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by each Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund is to pay dividends from net investment income and realized gains, if any, at least once a year except Hartford Global Equity Income Fund pays dividends from net investment income quarterly.

Income, dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts).

 

3. Securities and Other Investments:

 

  a) Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk – that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a 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, which approximates fair value. Repurchase agreements have master netting arrangements which allow the Funds to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of April 30, 2015.

 

 

97

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

  b) Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of its net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Each Fund may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by The Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  c) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Foreign Currency Contracts – Each Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of April 30, 2015.

 

  b) Futures Contracts – Each Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

 

98

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

  c) Additional Derivative Instrument Information:

Emerging Markets Equity Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $     —       $       $     —       $ 437,355       $     —       $     —       $ 437,355   

Unrealized appreciation on foreign currency contracts

             471                                         471   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $     471       $       $     437,355       $       $       $     437,826   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 3,093       $       $       $       $       $ 3,093   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 3,093       $       $       $       $       $ 3,093   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

             

Net realized gain (loss) on foreign currency contracts

   $       $     (144,984   $     —       $     —       $     —       $     —       $     (144,984
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (144,984   $       $       $       $       $ (144,984
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (5,068   $       $ 19,752       $       $       $ 14,684   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $ (5,068   $       $     19,752       $       $       $ 14,684   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Global Capital Appreciation Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $     —       $ 329,186       $     —       $     —       $     —       $     —       $ 329,186   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 329,186       $       $       $       $       $ 329,186   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

        

Unrealized depreciation on foreign currency contracts

   $       $ 1,096,604       $       $       $       $       $     1,096,604   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $     1,096,604       $       $       $       $       $ 1,096,604   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

99

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

             

Net realized gain (loss) on foreign currency contracts

   $     —       $ 7,073,024      $     —       $     —       $     —       $     —       $ 7,073,024   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 7,073,024      $       $       $       $       $ 7,073,024   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $     (3,257,117   $       $       $       $       $     (3,257,117
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (3,257,117   $       $       $       $       $ (3,257,117
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Global Equity Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $     —       $     442,520       $     —       $     —       $     —       $     —       $     442,520   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 442,520       $       $       $       $       $ 442,520   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 738,346       $       $       $       $       $ 738,346   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 738,346       $       $       $       $       $ 738,346   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $     1,395,372      $     —       $     —       $     —       $     —       $     1,395,372   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 1,395,372      $       $       $       $       $ 1,395,372   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (320,770   $       $       $       $       $ (320,770
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (320,770   $       $       $       $       $ (320,770
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

100

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

International Capital Appreciation Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $     —       $     994       $     —       $     —       $     —       $     —       $     994   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 994       $       $       $       $       $ 994   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 2,266       $       $       $       $       $ 2,266   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 2,266       $       $       $       $       $ 2,266   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $     (3,873   $     —       $     —       $     —       $     —       $     (3,873
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (3,873   $       $       $       $       $ (3,873
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (8,162   $       $       $       $       $ (8,162
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (8,162   $       $       $       $       $ (8,162
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

International Growth Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

        

Unrealized appreciation on foreign currency contracts

   $     —       $ 9,536       $     —       $     —       $     —       $     —       $ 9,536   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 9,536       $       $       $       $       $ 9,536   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

        

Unrealized depreciation on foreign currency contracts

   $       $     11,332       $       $       $       $       $     11,332   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 11,332       $       $       $       $       $ 11,332   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

101

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $     10,667       $     —       $     —       $     —       $     —       $     10,667   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 10,667       $       $       $       $       $ 10,667   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ 24,726       $       $       $       $       $ 24,726   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 24,726       $       $       $       $       $ 24,726   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

International Opportunities Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

        

Unrealized appreciation on foreign currency contracts

   $     —       $     24,846       $     —       $     —       $     —       $     —       $     24,846   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 24,846       $       $       $       $       $ 24,846   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

  

        

Unrealized depreciation on foreign currency contracts

   $       $ 53,921       $       $       $       $       $ 53,921   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 53,921       $       $       $       $       $ 53,921   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $     —       $     305,992      $     —       $     —       $     —       $     —       $     305,992   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 305,992      $       $       $       $       $ 305,992   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (8,049   $       $       $       $       $ (8,049
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (8,049   $       $       $       $       $ (8,049
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

102

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

International Small Company Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 11,731       $       $       $       $       $ 11,731   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     11,731       $     —       $     —       $     —       $     —       $     11,731   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 3,644       $       $       $       $       $ 3,644   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 3,644       $       $       $       $       $ 3,644   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on foreign currency contracts

   $       $ 126,697      $       $       $       $       $ 126,697   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     126,697      $     —       $     —       $     —       $     —       $     126,697   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (62,770   $       $       $       $       $ (62,770
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (62,770   $       $       $       $       $ (62,770
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

International Value Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 4,268       $       $       $       $       $ 4,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 4,268       $       $       $       $       $ 4,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 9,377       $       $       $       $       $ 9,377   

Unrealized depreciation on futures contracts(1)

                             41,598                         41,598   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     9,377       $     —       $     41,598       $     —       $     —       $     50,975   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)  Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current days variation margin, if any, are reported within the Statements of Assets and Liabilities.

 

 

103

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

       

Net realized gain (loss) on futures

   $       $      $       $ 2,273,926      $       $       $ 2,273,926   

Net realized gain (loss) on foreign currency contracts

             1,983,104                                       1,983,104   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $     —       $     1,983,104      $     —       $     2,273,926      $     —       $     —       $     4,257,030   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

       

Net change in unrealized appreciation (depreciation) of futures

   $       $      $       $ (156,849   $       $       $ (156,849

Net change in unrealized appreciation (depreciation) of foreign currency

             (1,087,823                                    (1,087,823
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $       $ (1,087,823   $       $ (156,849   $       $       $ (1,244,672
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

  d) Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreements (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Emerging Markets Equity Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     471         (3,093

Purchased options and swaptions

     437,355           
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  437,826      (3,093

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  437,826      (3,093
  

 

 

    

 

 

 

 

Emerging Markets Equity Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Goldman Sachs & Co.

  1                     1   

JP Morgan Chase & Co.

  437,355                     437,355   

State Street Global Markets LLC

  451      (204             247   

UBS AG

  19                     19   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

  437,826      (204           —              —      437,622   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

104

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

HSBC Bank USA

  (2,889                  (2,889

State Street Global Markets LLC

  (204   204                  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (3,093   204              —              —      (2,889
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Global Capital Appreciation Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  329,186      (1,096,604
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  329,186      (1,096,604

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  329,186      (1,096,604
  

 

 

    

 

 

 

 

Global Capital Appreciation Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Barclays

  4,338      (4,338               

Commonwealth Bank of Australia

  644                     644   

Deutsche Bank Securities, Inc.

  18,115      (18,115               

Goldman Sachs & Co.

  11      (11               

HSBC Bank USA

  2,357      (2,357               

Morgan Stanley

  2,508      (2,391             117   

National Australia Bank Limited

  263,650      (263,650               

RBS Greenwich Capital

  21,734      (21,734               

Toronto-Dominion Bank

  45                     45   

UBS AG

  13,710      (4             13,706   

Westpac International

  2,074      (2,074               
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

  329,186      (314,674           —              —      14,512   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

105

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Barclays

  (25,575   4,338                (21,237

Citibank NA

  (1,831                  (1,831

Deutsche Bank Securities, Inc.

  (170,880   18,115                (152,765

Goldman Sachs & Co.

  (8,762   11                (8,751

HSBC Bank USA

  (23,854   2,357                (21,497

JP Morgan Chase & Co.

  (162,015                  (162,015

Morgan Stanley

  (2,391   2,391                  

National Australia Bank Limited

  (327,569   263,650                (63,919

RBS Greenwich Capital

  (370,506   21,734                (348,772

UBS AG

  (4   4                  

Westpac International

  (3,217   2,074                (1,143
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (1,096,604   314,674              —              —      (781,930
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Global Equity Income Fund

 

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  442,520      (738,346
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  442,520      (738,346

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  442,520      (738,346
  

 

 

    

 

 

 

 

Global Equity Income Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and
Derivatives

Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount
of
Assets ($)
 

National Australia Bank Limited

     442,520        (359,376             —                 —         83,144   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Morgan Stanley

  (877                  (877

National Australia Bank Limited

  (359,376   359,376                  

RBS Greenwich Capital

  (378,093                  (378,093
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (738,346   359,376              —              —      (378,970
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

106

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

International Capital Appreciation Fund

 

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  994      (2,266
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  994      (2,266

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  994      (2,266
  

 

 

    

 

 

 

 

International Capital Appreciation Fund

 

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Deutsche Bank Securities, Inc.

  80      (27             53   

Morgan Stanley

  682      (682               

State Street Global Markets LLC

  208      (208               

Toronto-Dominion Bank

  21                     21   

UBS AG

  2      (2               

Westpac International

  1                     1   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  994      (919           —              —      75   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives

Available for
Offset ($)
  Non-cash
Collateral

Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Commonwealth Bank of Australia

  (120                  (120

Deutsche Bank Securities, Inc.

  (27   27                  

Morgan Stanley

  (1,409   682                (727

State Street Global Markets LLC

  (701   208                (493

UBS AG

  (9   2                (7
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (2,266   919              —              —      (1,347
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

International Growth Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  9,536      (11,332
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  9,536      (11,332

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  9,536      (11,332
  

 

 

    

 

 

 

 

 

107

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

International Growth Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Credit Suisse First Boston Corp.

  1,891                     1,891   

Deutsche Bank Securities, Inc.

  1,383                     1,383   

State Street Global Markets LLC

  974      (974               

Toronto-Dominion Bank

  162                     162   

Westpac International

  5,126                     5,126   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  9,536      (974           —              —      8,562   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Commonwealth Bank of Australia

  (1,121                  (1,121

State Street Global Markets LLC

  (10,211   974                (9,237
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (11,332   974                (10,358
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

International Opportunities Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  24,846      (53,921
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  24,846      (53,921

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  24,846      (53,921
  

 

 

    

 

 

 

 

International Opportunities Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Deutsche Bank Securities, Inc.

  15,273                     15,273   

HSBC Bank USA

  3,824                     3,824   

Morgan Stanley

  732      (732               

Westpac International

  5,017                     5,017   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

  24,846      (732           —              —      24,114   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

108

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Goldman Sachs & Co.

  (16                  (16

Morgan Stanley

  (48,690   732                (47,958

Toronto-Dominion Bank

  (5,215                  (5,215
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (53,921   732              —              —      (53,189
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

International Small Company Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  11,731      (3,644
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  11,731      (3,644

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  11,731      (3,644
  

 

 

    

 

 

 

 

International Small Company Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Deutsche Bank Securities, Inc.

  2,275      (2,275               

Morgan Stanley

  2,844                     2,844   

Toronto-Dominion Bank

  292                     292   

UBS AG

  273                     273   

Westpac International

  6,047                     6,047   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  11,731      (2,275           —              —      9,456   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Deutsche Bank Securities, Inc.

  (2,452   2,275                (177

HSBC Bank USA

  (1,192                  (1,192
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (3,644   2,275                (1,369
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

109

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

International Value Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  4,268      (9,377

Futures contracts

       (41,598
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  4,268      (50,975

Derivatives not subject to a MNA

       41,598   
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  4,268      (9,377
  

 

 

    

 

 

 

 

International Value Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Deutsche Bank Securities, Inc.

  532      (532               

Morgan Stanley

  2,003      (2,003               

Westpac International

  1,733                     1,733   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  4,268      (2,535             1,733   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Deutsche Bank Securities, Inc.

  (4,979   532                (4,447

Morgan Stanley

  (4,398   2,003                (2,395
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (9,377   2,535              —              —      (6,842
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

5. Principal Risks:

Certain Funds may be exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default.

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Each Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension, foreign currency and equity risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. 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 and extension risk are major risks of mortgage

 

 

110

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

backed securities and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.

 

6. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Ordinary
Income
For the
Year Ended
October 31, 2014
  Long-Term
Capital Gains(1)
For the
Year Ended
October 31,  2014
  Ordinary
Income
For the
Year Ended
October 31, 2013
  Long-Term
Capital Gains(1)
For  the
Year Ended
October 31, 2013
  Prior Year - Tax
return of capital
For the
Year Ended
October 31, 2013
 

Emerging Markets Equity Fund

$ 2,737,522    $ 1,757,367    $ 1,819,991    $    $   

Global Capital Appreciation Fund

$ 139,504    $ 26,908,140    $ 2,097,580    $     222,433    $   

Global Equity Income Fund

$ 3,214,632    $ 5,246,574    $ 1,597,001    $    $   

International Capital Appreciation Fund

$ 274,241    $    $ 477,000    $    $   

International Growth Fund

$ 779,020    $    $ 854,997    $    $   

International Opportunities Fund

$     31,415,500    $     35,004,788    $     13,048,212    $    $   

International Small Company Fund

$ 1,511,881    $    $ 4,745,000    $    $   

International Value Fund

$    $    $ 2,834,843    $    $     305,157   

 

  (1)  The Funds designate these distributions as long-term capital gain dividends pursuant to IRC Sec 852(b)(3)(c).

 

 

111

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

    Undistributed
Ordinary
Income
    Undistributed
Long-Term
Capital Gain
    Accumulated
Capital and
Other
Losses(1)
    Unrealized
Appreciation
(Depreciation)
on
Investments(2)
    Unrealized
Appreciation
(Depreciation)
on Other
Financial
Instruments
and Foreign
Currency
Transactions
    Total
Accumulated
Earnings
(Deficit)
 

Emerging Markets Equity Fund

  $ 8,227,029      $ 8,118,925      $      $ 11,463,303      $      $ 27,809,257   

Global Capital Appreciation Fund

  $     83,107,332      $     146,487,439      $      $     13,426,595      $     —      $     243,021,366   

Global Equity Income Fund

  $ 3,988,060      $ 8,833,250      $ (7,249,664   $ (3,445,573   $      $ 2,126,073   

International Capital Appreciation Fund

  $ 298,333      $ 786,146      $      $ 926,926      $      $ 2,011,405   

International Growth Fund

  $ 590,100      $      $     (240,737,515   $ 11,321,916      $      $ (228,825,499

International Opportunities Fund

  $ 53,997,709      $ 119,788,294      $      $ 45,623,310      $      $ 219,409,313   

International Small Company Fund

  $ 11,202,685      $ 40,062,447      $      $ (9,861,049   $      $ 41,404,083   

International Value Fund

  $ 5,164,818      $      $ (2,490,856   $ (56,186,874   $      $ (53,512,912

 

  (1)  The Funds have capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

     Undistributed Net
Investment Income
(Loss)
    Accumulated Net
Realized Gain
(Loss)
 

Emerging Markets Equity Fund

     (453,365     453,365   

Global Capital Appreciation Fund

     (992,277     992,277   

Global Equity Income Fund

     113,634        (113,634

International Capital Appreciation Fund

     98,577        (98,577

International Growth Fund

     (80,062     80,062   

International Opportunities Fund

     3,449,596        (3,449,596

International Small Company Fund

     1,256,299        (1,256,299

International Value Fund

     1,227,026        (1,227,026

 

  e) Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

 

 

  112  

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

At October 31, 2014 (tax year end), the pre-enactment capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

     Year of Expiration      Unlimited
Short-Term
Capital Loss
Carryforward
     Unlimited
Long-Term
Capital Loss
Carryforward
 

Fund

   2015      2016      2017      2018      2019        

Emerging Markets Equity Fund

   $       $       $       $       $       $       $   

Global Capital Appreciation Fund

   $       $       $       $       $       $       $   

Global Equity Income Fund

   $     887,136       $ 3,459,659       $ 169,331       $     2,733,538       $       $     —       $     —   

International Capital Appreciation Fund

   $       $       $       $       $       $       $   

International Growth Fund

   $       $     130,192,219       $     110,545,296       $       $       $       $   

International Opportunities Fund

   $       $       $       $       $       $       $   

International Small Company Fund

   $       $       $       $       $       $       $   

International Value Fund

   $       $       $       $       $     2,490,856       $       $   

The Emerging Markets Equity Fund, Global Capital Appreciation Fund, International Capital Appreciation Fund, International Opportunities Fund and International Small Company Fund had no capital loss carryforward for U.S. federal income tax purposes as of October 31, 2014.

As a result of mergers in the Hartford Global Equity Income Fund certain provisions in the IRC may limit the future utilization of capital losses. During the year ended October 31, 2014, the Global Capital Appreciation Fund, Global Equity Income Fund, International Capital Appreciation Fund, International Growth Fund, International Small Company Fund and International Value Fund utilized prior year capital loss rollforwards of $27,381,225, $2,627,312, $1,830,723, $15,343,888, $2,971,977 and $6,178,176, respectively.

During the year ended October 31, 2014, the International Value Fund utilized $3,950,806 of Post-Regulated Investment Company Modernization capital loss carryforwards.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with each Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

    

Management Fee Rates

Emerging Markets Equity Fund

   1.2000% on first $250 million and;
   1.1500% on next $250 million and;
   1.1000% on next $500 million and;
   1.0750% on next $4 billion and;
   1.0725% on next $5 billion and;
   1.0700% over $10 billion

 

 

  113  

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

Management Fee Rates

Global Capital Appreciation Fund

0.8500% on first $500 million and;
0.7500% on next $500 million and;
0.7000% on next $4 billion and;
0.6800% on next $5 billion and;
0.6750% over $10 billion

Global Equity Income Fund

0.7500% on first $500 million and;
0.7000% on next $500 million and;
0.6900% on next $4 billion and;
0.6850% on next $5 billion and;
0.6700% over $10 billion

International Capital Appreciation Fund

0.9000% on first $500 million and;
0.8500% on next $4.5 billion and;
0.8475% on next $5 billion and;
0.8450% over $10 billion

International Growth Fund

0.8500% on first $500 million and;
0.8000% on next $500 million and;
0.7500% on next $4 billion and;
0.7475% on next $5 billion and;
0.7450% over $10 billion

International Opportunities Fund

0.7500% on first $500 million and;
0.6500% on next $500 million and;
0.6400% on next $1.5 billion and;
0.6350% on next $2.5 billion and;
0.6300% on next $5 billion and;
0.6250% over $10 billion

International Small Company Fund

0.9000% on first $500 million and;
0.8500% on next $500 million and;
0.8000% on next $4 billion and;
0.7975% on next $5 billion and;
0.7950% over $10 billion

International Value Fund

0.8500% on first $500 million and;
0.8000% on next $500 million and;
0.7500% on next $4 billion and;
0.7475% on next $5 billion and;
0.7450% over $10 billion

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and the Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fee Rates

Emerging Markets Equity Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Global Capital Appreciation Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

 

 

114

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

Accounting Services Fee Rates

Global Equity Income Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

International Capital Appreciation Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

International Growth Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

International Opportunities Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

International Small Company Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

International Value Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  c) Operating Expenses – Allocable expenses incurred by the Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Emerging Markets Equity Fund

  1.75%      NA      2.50%      1.50%      1.95%      1.65%      1.35%      NA      1.30%   

Global Capital Appreciation Fund

  1.25%      2.00%      2.00%      1.00%      1.35%      1.05%      0.95%      NA      0.90%   

Global Equity Income Fund

  1.25%      2.00%      2.00%      1.00%      1.45%      1.15%      0.85%      NA      0.80%   

International Capital Appreciation Fund

  1.45%      2.20%      2.20%      1.20%      1.65%      1.35%      1.05%      NA      1.00%   

International Growth Fund

  1.55%      2.30%      2.30%      1.30%      1.60%      1.30%      1.00%      NA      0.95%   

International Opportunities Fund

  1.30%      2.05%      2.05%      1.05%      1.50%      1.20%      0.90%      0.85%      0.85%   

International Small Company Fund

  1.60%      2.35%      2.35%      1.35%      1.65%      1.35%      1.05%      NA      1.00%   

International Value Fund

  1.40%      NA      2.15%      1.15%      1.60%      1.30%      1.00%      NA      0.95%   

 

  d) Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. 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 a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended April 30, 2015, these amounts, if any, are included in the Statements of Operations.

 

 

115

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Emerging Markets Equity Fund

  1.75%           2.49%      1.34%      1.95%      1.65%      1.35%           1.30%   

Global Capital Appreciation Fund

  1.25%      2.00%      1.94%      0.94%      1.35%      1.05%      0.93%           0.82%   

Global Equity Income Fund

  1.25%      2.00%      2.00%      0.96%      1.45%      1.15%      0.85%           0.80%   

International Capital Appreciation Fund

  1.45%      2.17%      2.20%      1.12%      1.65%      1.35%      1.05%           1.00%   

International Growth Fund

  1.49%      2.25%      2.20%      1.09%      1.60%      1.30%      1.00%           0.95%   

International Opportunities Fund

  1.19%      2.03%      1.91%      0.85%      1.44%      1.14%      0.84%      0.73%      0.74%   

International Small Company Fund

  1.49%      2.28%      2.20%      1.15%      1.65%      1.35%      1.05%           0.99%   

International Value Fund

  1.33%           2.00%      0.98%      1.60%      1.30%      0.99%           0.89%   

 

  e) Distribution and Service Plan for Class A, B, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect wholly owned subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end
Sales Charges
  Contingent Deferred
Sales Charges
 

Emerging Markets Equity Fund

$ 16,698    $

Global Capital Appreciation Fund

  632,988      8,808   

Global Equity Income Fund

  463,104      380   

International Capital Appreciation Fund

  21,139      564   

International Growth Fund

  305,243      1,442   

International Opportunities Fund

      1,356,628      5,643   

International Small Company Fund

  56,993      3,708   

International Value Fund

  239,408          25,795   

 

  * Total CDSC includes Underwriter adjustment credits which may cause negative dollar amounts.

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, B, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class B Plan, each 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 services provided to existing shareholders 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. 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, each 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 R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as each Company’s Board of Directors may determine.

 

  f)

Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Any transfer agency fee reimbursement is determined

 

 

116

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  before considering the contractual operating expense limitation. For providing such services, HASCO is compensated on a per account basis that varies by account type, except with respect to Class Y, for which it is compensated based on average daily net assets. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

8. Affiliate Holdings:

As of April 30, 2015, affiliates of The Hartford had ownership of shares in the Fund as follows:

Percentage of Class:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Emerging Markets Equity Fund

            45   57   97   100   100          

Global Capital Appreciation Fund

                           1   34       

Global Equity Income Fund

                      73   77   76          

International Capital Appreciation Fund

  9   67        44   83   91   100        100

International Growth Fund

                                4          

International Opportunities Fund

                                     100     

International Value Fund

                      61   34   69       

Percentage of Fund:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Emerging Markets Equity Fund

            1   1   1   1   1          

Global Capital Appreciation Fund

                                   

Global Equity Income Fund

                                   

International Capital Appreciation Fund

  3   2        3   3   3   3        34

International Growth Fund

                                         

International Opportunities Fund

                                         

International Value Fund

                                

 

* Percentage rounds to zero.

As of April 30, 2015, the Funds shares were owned in aggregate by affiliated fund of funds. Therefore, the Funds may experience relatively large purchases or redemptions of its shares from these affiliated fund of funds. Affiliated fund of funds owned shares in the Funds as follows:

 

  Class Y  

Emerging Markets Equity Fund

  65%   

Global Capital Appreciation Fund

  14%   

Global Equity Income Fund

  61%   

International Growth Fund

  12%   

International Opportunities Fund

  3%   

International Small Company Fund

  11%   

International Value Fund

  2%   

 

 

117

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

9. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Government
Obligations
 

Emerging Markets Equity Fund

$ 111,756,033    $ 118,456,905   

Global Capital Appreciation Fund

$ 650,071,231    $ 704,917,637   

Global Equity Income Fund

$ 32,805,995    $ 27,283,590   

International Capital Appreciation Fund

$ 15,493,600    $ 13,159,655   

International Growth Fund

$ 103,731,723    $ 66,656,631   

International Opportunities Fund

$     673,163,968    $     626,325,670   

International Small Company Fund

$ 99,938,820    $ 59,573,064   

International Value Fund

$ 337,378,731    $ 142,408,765   

 

  Cost of Purchases
Including U.S.
Government
Obligations
  Sales Proceeds
Including U.S.
Government
Obligations
 

Emerging Markets Equity Fund

$    $   

Global Capital Appreciation Fund

$    $   

Global Equity Income Fund

$    $   

International Capital Appreciation Fund

$    $   

International Growth Fund

$    $   

International Opportunities Fund

$    $   

International Small Company Fund

$    $   

International Value Fund

$     —    $     —   

 

  Total Cost of
Purchases
  Total Sales
Proceeds
 

Emerging Markets Equity Fund

$ 111,756,033    $ 118,456,905   

Global Capital Appreciation Fund

$ 650,071,231    $ 704,917,637   

Global Equity Income Fund

$ 32,805,995    $ 27,283,590   

International Capital Appreciation Fund

$ 15,493,600    $ 13,159,655   

International Growth Fund

$ 103,731,723    $ 66,656,631   

International Opportunities Fund

$ 673,163,968    $ 626,325,670   

International Small Company Fund

$ 99,938,820    $ 59,573,064   

International Value Fund

$     337,378,731    $     142,408,765   

 

10. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Emerging Markets Equity Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  191,128    $ 1,563,974      886,519    $ 8,176,809   

Shares Issued for Reinvested Dividends

  104,636      817,519      13,912      122,508   

Shares Redeemed

  (201,794       (1,645,416   (577,971       (5,102,766
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  93,970      736,077      322,460      3,196,551   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

118

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  21,269    $ 174,766      83,030    $ 743,779   

Shares Issued for Reinvested Dividends

  24,474      186,978      2,926      25,047   

Shares Redeemed

  (30,348   (246,024   (93,688   (777,986
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  15,395      115,720      (7,732   (9,160
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  48,265    $ 406,536      157,964    $ 1,413,109   

Shares Issued for Reinvested Dividends

  32,109      250,814      4,711      41,463   

Shares Redeemed

  (24,110   (195,979   (77,859   (686,994
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  56,264      461,371      84,816      767,578   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  120    $ 967      1,179    $ 11,161   

Shares Issued for Reinvested Dividends

  18,360      142,150      2,536      22,097   

Shares Redeemed

  (5,199   (40,732   (1,174   (10,095
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  13,281      102,385      2,541      23,163   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  62    $ 520      111    $ 1,000   

Shares Issued for Reinvested Dividends

  18,150      141,274      2,992      26,237   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  18,212      141,794      3,103      27,237   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      5    $ 50   

Shares Issued for Reinvested Dividends

  18,919      147,780      3,591      31,616   

Shares Redeemed

            (5   (49
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  18,919      147,780      3,591      31,617   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  1,681,654    $ 13,731,713      4,315,564    $ 38,495,517   

Shares Issued for Reinvested Dividends

  1,901,797      14,836,456      480,754      4,225,495   

Shares Redeemed

  (2,534,537       (21,084,956   (10,770,311       (98,744,097
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,048,914      7,483,213      (5,973,993   (56,023,085
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  1,264,955    $ 9,188,340      (5,565,214 $ (51,986,099
  

 

 

   

 

 

   

 

 

   

 

 

 

Global Capital Appreciation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,102,618    $ 37,228,261      3,570,276    $ 69,704,386   

Issued in Merger

            10,036,979      197,410,305   

Shares Issued for Reinvested Dividends

  6,902,770          113,948,606      704,849      13,202,897   

Shares Redeemed

  (3,745,660   (67,162,317   (4,725,825   (93,733,804

Shares converted (from) Class B into Class A

  166,243      2,943,082      179,236      3,556,275   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,425,971      86,957,632      9,765,515          190,140,059   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

119

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class B

Shares Sold

  30,529    $ 465,795      28,685    $ 2,911,478   

Issued in Merger

            243,910      4,471,267   

Shares Issued for Reinvested Dividends

  471,587      7,106,814      83,570      1,461,833   

Shares Redeemed

  (698,014   (11,284,861   (903,687   (16,425,976

Shares converted (from) Class B into Class A

  (181,469   (2,943,082   (179,236   (3,556,275
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (377,367   (6,655,334   (726,758   (11,137,673
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  790,958    $ 12,748,460      989,249    $ 20,944,897   

Issued in Merger

            1,197,663      22,099,514   

Shares Issued for Reinvested Dividends

  2,877,159      43,704,053      378,688      6,666,767   

Shares Redeemed

  (1,377,449   (22,466,937   (2,050,318   (38,035,735
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,290,668      33,985,576      515,282      11,675,443   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  975,214    $ 18,208,356      1,995,124    $ 40,296,229   

Shares Issued for Reinvested Dividends

  994,179      16,903,606      144,252      2,760,013   

Shares Redeemed

  (1,381,247   (25,185,731   (2,519,570   (50,376,203
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  588,146      9,926,231      (380,195   (7,319,961
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  155,163    $ 2,712,874      242,039    $ 4,695,140   

Issued in Merger

            7,396      148,751   

Shares Issued for Reinvested Dividends

  313,245      5,091,973      44,312      820,429   

Shares Redeemed

  (210,894   (3,706,132   (340,838   (6,660,875
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  257,514      4,098,715      (47,091   (996,553
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  193,711    $ 3,503,989      115,013    $ 2,274,852   

Issued in Merger

            12,852      249,784   

Shares Issued for Reinvested Dividends

  94,753      1,587,167      14,428      273,057   

Shares Redeemed

  (104,431   (1,827,000   (204,517   (4,118,686
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  184,033      3,264,156      (62,224   (1,320,994
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  8,309    $ 148,724      11,231    $ 227,860   

Issued in Merger

            8,812      175,238   

Shares Issued for Reinvested Dividends

  14,059      240,165      1,606      30,873   

Shares Redeemed

  (72,330   (1,305,556   (10,999   (220,671
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (49,962   (916,667   10,650      213,299   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  412,632    $ 7,601,250      10,291,128    $ 213,079,668   

Issued in Merger

            9,862      199,216   

Shares Issued for Reinvested Dividends

  1,909,632      32,986,535      25,436      509,183   

Shares Redeemed

  (1,101,001   (20,319,774   (956,252   (19,890,190
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,221,263      20,268,011      9,370,173      193,897,877   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  9,540,266    $     150,928,320      18,445,353    $     375,151,497   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

120

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

Global Equity Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,010,161    $ 23,033,670      1,927,604    $ 22,679,759   

Shares Issued for Reinvested Dividends

  355,258      3,921,537      486,191      5,332,829   

Shares Redeemed

  (458,514   (5,253,454   (933,894   (10,875,179

Shares converted (from) Class B into Class A

  12,196      140,621      27,824      324,826   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,919,101      21,842,374      1,507,725      17,462,235   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  7,090    $ 79,482      10,459    $ 119,493   

Shares Issued for Reinvested Dividends

  8,924      96,113      21,450      229,510   

Shares Redeemed

  (32,535   (363,528   (72,100   (814,788

Shares converted (from) Class B into Class A

  (12,462   (140,621   (27,824   (324,826
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (28,983   (328,554   (68,015   (790,611
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  194,875    $ 2,187,813      145,307    $ 1,671,698   

Shares Issued for Reinvested Dividends

  43,389      466,796      72,618      775,556   

Shares Redeemed

  (85,507   (946,928   (170,854   (1,950,584
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  152,757      1,707,681      47,071      496,670   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  101,842    $ 1,181,197      98,870    $ 1,158,921   

Shares Issued for Reinvested Dividends

  5,439      60,158      4,332      47,990   

Shares Redeemed

  (29,175   (326,749   (73,518   (868,264
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  78,106      914,606      29,684      338,647   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  552    $ 6,913      1,653    $ 19,629   

Shares Issued for Reinvested Dividends

  2,084      22,921      4,117      44,838   

Shares Redeemed

  (3,805   (41,954   (9,326   (101,193
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,169   (12,120   (3,556   (36,726
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  4,783    $ 55,841      5,600    $ 65,916   

Shares Issued for Reinvested Dividends

  2,552      28,191      3,658      40,186   

Shares Redeemed

  (282   (3,250   (2,423   (27,934
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  7,053      80,782      6,835      78,168   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  1,037    $ 11,894      19,971    $ 234,644   

Shares Issued for Reinvested Dividends

  3,088      34,172      3,753      41,535   

Shares Redeemed

  (8,173   (90,723   (2,305   (27,161
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (4,048   (44,657   21,419      249,018   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  195,652    $ 2,174,828      16,613,925    $ 199,934,688   

Shares Issued for Reinvested Dividends

  890,203      9,846,672      142,403      1,645,788   

Shares Redeemed

  (1,096,747       (12,520,043   (700,402   (8,460,100
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (10,892   (498,543   16,055,926      193,120,376   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  2,111,925    $ 23,661,569      17,597,089    $     210,917,777   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

121

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

International Capital Appreciation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  349,549    $ 3,373,328      251,391    $ 2,531,258   

Shares Issued for Reinvested Dividends

  44,818      414,564      10,072      101,933   

Shares Redeemed

  (221,247       (2,129,911   (420,964   (4,088,812

Shares converted (from) Class B into Class A

  690      6,553      3,911      39,264   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  173,810      1,664,534      (155,590   (1,416,357
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  239    $ 2,423      2,689    $ 27,056   

Shares Issued for Reinvested Dividends

  2,519      23,073      142      1,434   

Shares Redeemed

  (2,885   (27,733   (49,358   (474,385

Shares converted (from) Class B into Class A

  (693   (6,553   (3,911   (39,264
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (820   (8,790   (50,438   (485,159
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  96,764    $ 921,720      69,184    $ 698,058   

Shares Issued for Reinvested Dividends

  5,928      54,143      432      4,350   

Shares Redeemed

  (32,763   (314,185   (130,947   (1,260,854
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  69,929      661,678      (61,331   (558,446
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  83,885    $ 788,839      72,926    $ 754,454   

Shares Issued for Reinvested Dividends

  7,369      68,560      1,681      17,062   

Shares Redeemed

  (19,742   (193,301   (37,861   (376,776
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  71,512      664,098      36,746      394,740   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  1,026    $ 9,743      6,186    $ 61,671   

Shares Issued for Reinvested Dividends

  4,185      38,702      678      6,873   

Shares Redeemed

  (2,922   (28,641   (3,666   (36,589
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,289      19,804      3,198      31,955   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  2,106    $ 20,648      2,623    $ 26,114   

Shares Issued for Reinvested Dividends

  4,283      39,750      918      9,305   

Shares Redeemed

  (1,358   (12,323   (730   (7,415
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,031      48,075      2,811      28,004   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Issued for Reinvested Dividends

  4,310      40,096      1,141      11,584   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,310      40,096      1,141      11,584   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Issued for Reinvested Dividends

  43,848      407,935      11,940      121,195   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  43,848      407,935      11,940      121,195   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  369,909    $     3,497,430      (211,523 $     (1,872,484
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

122

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

International Growth Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  1,476,649    $ 18,845,228      1,172,705    $ 14,732,434   

Shares Issued for Reinvested Dividends

  15,947      195,671      52,769      658,030   

Shares Redeemed

  (614,505   (7,733,800   (1,184,960   (14,884,043

Shares converted (from) Class B into Class A

  31,750      402,107      53,551      671,751   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  909,841      11,709,206      94,065      1,178,172   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  1,015    $ 12,004      5,979    $ 70,188   

Shares Redeemed

  (73,159   (861,472   (182,822   (2,087,522

Shares converted (from) Class B into Class A

  (34,264   (402,107   (53,551   (671,751
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (106,408   (1,251,575   (230,394   (2,689,085
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  526,566    $ 6,185,033      111,939    $ 1,301,701   

Shares Redeemed

  (249,051   (2,893,500   (174,262   (2,024,341
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  277,515      3,291,533      (62,323   (722,640
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  2,924,212    $     36,946,679      170,436    $ 2,144,571   

Shares Issued for Reinvested Dividends

  8,645      105,216      4,152      51,398   

Shares Redeemed

  (724,233   (8,884,364   (95,871       (1,184,052)   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,208,624      28,167,531      78,717      1,011,917   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  40,282    $ 523,476      9,225    $ 116,520   

Shares Issued for Reinvested Dividends

            147      1,856   

Shares Redeemed

  (16,355   (212,539   (13,017   (166,297
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  23,927      310,937      (3,645   (47,921
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  74,482    $ 930,912      30,385    $ 375,860   

Shares Issued for Reinvested Dividends

  407      5,130      672      8,612   

Shares Redeemed

  (12,781   (167,415   (3,697   (47,835
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  62,108      768,627      27,360      336,637   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  287,239    $ 3,656,074      1,878    $ 24,933   

Shares Issued for Reinvested Dividends

  141      1,795      136      1,752   

Shares Redeemed

  (23,486   (313,033   (104   (1,382
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  263,894      3,344,836      1,910      25,303   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  275,972    $ 3,582,696      3,600,209    $ 47,612,649   

Shares Issued for Reinvested Dividends

  21,699      275,565      3,504      45,196   

Shares Redeemed

  (443,433   (5,849,962   (932,376   (12,487,227
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase ( Decrease)

  (145,762   (1,991,701   2,671,337      35,170,618   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  3,493,739    $ 44,349,394      2,577,027    $ 34,263,001   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

123

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

International Opportunities Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  5,139,756    $ 79,069,950      8,017,143    $ 138,134,182   

Shares Issued for Reinvested Dividends

  3,820,202      55,886,076      1,032,509      17,464,397   

Shares Redeemed

  (2,865,934   (44,404,943   (4,242,998   (73,019,693

Shares converted (from) Class B into Class A

  26,042      402,672      44,657      766,664   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,120,066      90,953,755      4,851,311      83,345,550   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  5,503    $ 75,818      37,461    $ 593,541   

Shares Issued for Reinvested Dividends

  57,739      763,386      20,976      322,985   

Shares Redeemed

  (76,363   (1,078,987   (132,668   (2,036,679

Shares converted (from) Class B into Class A

  (28,598   (402,672   (44,657   (766,664
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (41,719   (642,455   (118,888   (1,886,817
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  648,498    $ 8,838,494      1,292,888    $ 20,056,773   

Shares Issued for Reinvested Dividends

  509,830      6,583,049      121,012      1,835,533   

Shares Redeemed

  (573,249   (7,752,103   (548,150   (8,447,191
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  585,079      7,669,440      865,750      13,445,115   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  1,203,312    $ 18,498,093      3,820,916    $ 65,455,969   

Shares Issued for Reinvested Dividends

  755,139      11,018,986      152,995      2,583,901   

Shares Redeemed

  (1,741,511   (26,562,007   (1,615,858   (27,445,038
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  216,940      2,955,072      2,358,053      40,594,832   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  821,881    $ 12,889,333      810,563    $ 14,207,765   

Shares Issued for Reinvested Dividends

  303,402      4,505,754      74,350      1,273,738   

Shares Redeemed

  (435,322   (6,816,530   (409,843   (7,131,316
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  689,961      10,578,557      475,070      8,350,187   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  1,505,187    $ 23,886,564      2,057,397    $ 36,384,799   

Shares Issued for Reinvested Dividends

  758,042      11,444,954      189,368      3,293,469   

Shares Redeemed

  (877,935       (13,960,898   (1,030,344       (18,213,214
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,385,294      21,370,620      1,216,421      21,465,054   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  893,360    $ 14,502,040      1,435,221    $ 25,666,785   

Shares Issued for Reinvested Dividends

  684,313      10,424,195      198,719      3,486,363   

Shares Redeemed

  (571,188   (9,056,378   (633,765   (11,261,980
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,006,485      15,869,857      1,000,175      17,891,168   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  574    $ 10,000         $   

Shares Issued for Reinvested Dividends

  80      1,222             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  654      11,222             
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

124

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class Y

Shares Sold

  3,843,022    $ 62,020,527      16,553,553    $ 295,216,120   

Shares Issued for Reinvested Dividends

  4,542,617      69,553,360      1,980,444      34,907,924   

Shares Redeemed

  (3,042,466   (48,663,197   (28,109,568       (512,092,233
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,343,173      82,910,690      (9,575,571   (181,968,189
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  15,305,933    $     231,676,758      1,072,321    $ 1,236,900   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 7, 2014.

International Small Company Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  622,413    $ 8,735,770      1,880,134    $ 33,805,958   

Shares Issued for Reinvested Dividends

  932,249      12,467,541      6,526      118,513   

Shares Redeemed

  (757,991   (10,940,558   (1,492,843   (27,003,455

Shares converted (from) Class B into Class A

  28,809      409,871      45,424      809,418   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  825,480      10,672,624      439,241      7,730,434   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  987    $ 12,559      5,751    $ 98,074   

Shares Issued for Reinvested Dividends

  36,669      455,872             

Shares Redeemed

  (37,315   (502,373   (73,273   (1,195,391

Shares converted (from) Class B into Class A

  (30,727   (409,871   (45,424   (809,418
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (30,386   (443,813   (112,946   (1,906,735
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  131,165    $ 1,662,522      513,354    $ 8,539,098   

Shares Issued for Reinvested Dividends

  208,701      2,537,923             

Shares Redeemed

  (251,110   (3,442,244   (173,937   (2,849,606
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  88,756      758,201      339,417      5,689,492   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  2,220,404    $ 30,865,879      3,241,532    $ 57,930,681   

Shares Issued for Reinvested Dividends

  407,523      5,419,937      2,572      46,339   

Shares Redeemed

  (1,394,161       (20,165,550   (1,325,798       (22,899,623
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,233,766      16,120,266      1,918,306      35,077,397   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  96,161    $ 1,358,278      256,489    $ 4,641,746   

Shares Issued for Reinvested Dividends

  132,257      1,780,798      438      8,002   

Shares Redeemed

  (80,138   (1,130,211   (118,573   (2,124,536
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  148,280      2,008,865      138,354      2,525,212   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  93,462    $ 1,343,453      255,009    $ 4,657,008   

Shares Issued for Reinvested Dividends

  74,932      1,014,551      878      16,083   

Shares Redeemed

  (51,047   (727,984   (66,518   (1,191,601
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  117,347      1,630,020      189,369      3,481,490   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

125

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R5

Shares Sold

  8,622    $ 128,323      17,008    $ 308,748   

Shares Issued for Reinvested Dividends

  4,887      66,581      213      3,914   

Shares Redeemed

  (3,203   (51,870   (32,263   (568,058
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  10,306      143,034      (15,042   (255,396
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  3,333,127    $ 47,746,811      2,158,141    $ 39,330,923   

Shares Issued for Reinvested Dividends

  1,822,219      24,842,763      70,979      1,304,591   

Shares Redeemed

  (1,017,429       (14,503,976   (7,610,979   (142,331,809
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,137,917      58,085,598      (5,381,859       (101,696,295
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  6,531,466    $ 88,974,795      (2,485,160 $ (49,354,401
  

 

 

   

 

 

   

 

 

   

 

 

 

International Value Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  14,844,421    $ 217,067,382      10,989,291    $ 167,817,139   

Shares Issued for Reinvested Dividends

  42,611      594,855             

Shares Redeemed

  (2,217,357   (31,971,238   (3,834,090   (58,633,379
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,669,675      185,690,999      7,155,201      109,183,760   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  654,895    $ 9,252,985      3,771,181    $ 57,071,673   

Shares Issued for Reinvested Dividends

  4,703      64,897             

Shares Redeemed

  (568,132   (7,991,983   (229,639   (3,340,886
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  91,466      1,325,899      3,541,542      53,730,787   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  16,680,867    $ 241,195,282      40,177,209    $     615,369,015   

Shares Issued for Reinvested Dividends

  178,998      2,516,718             

Shares Redeemed

  (18,117,588       (260,375,561   (4,785,010   (70,596,847
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,257,723   (16,663,561   35,392,199      544,772,168   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  7,776    $ 111,426      28,922    $ 423,836   

Shares Issued for Reinvested Dividends

  160      2,233             

Shares Redeemed

  (2,285   (32,526   (1,484   (21,774
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,651      81,133      27,438      402,062   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  103,748    $ 1,458,738      22,298    $ 330,781   

Shares Issued for Reinvested Dividends

  488      6,843             

Shares Redeemed

  (13,459   (197,459   (1,415   (21,025
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  90,777      1,268,122      20,883      309,756   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

126

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R5

Shares Sold

  1,201    $ 18,804      41,156    $ 620,316   

Shares Issued for Reinvested Dividends

  555      7,803             

Shares Redeemed

  (1,282   (18,786   (16,015   (241,196
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  474      7,821      25,141      379,120   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  4,002,705    $ 57,927,192      3,333,597    $ 52,411,251   

Shares Issued for Reinvested Dividends

  40,598      580,952             

Shares Redeemed

  (650,043   (9,648,310   (866,911   (13,805,937
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,393,260      48,859,834      2,466,686      38,605,314   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  14,993,580    $     220,570,247      48,629,090    $     747,382,967   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

11. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

12. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. HIFSCO disputes the allegations and intends to defend vigorously. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

 

127

 


Hartford Funds – International/Global Equity

Notes to Financial Statements (Unaudited) – (continued)

April 30, 2015

 

 

 

 

13. Indemnifications:

Under the Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent legalized or permitted under Maryland General Corporation Law and the federal securities laws. In addition, the Company may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

14. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

15. Subsequent Event:

Effective May 7, 2015, The Hartford Emerging Markets Research Fund modified its principal investment strategy and related risks, and changed its portfolio management team, and reduced the Fund’s management fee rate. Additionally, effective May 29, 2015, the Fund changed its name to Hartford Emerging Markets Equity Fund.

 

 

128

 


Hartford Funds – International/Global Equity

Financial Highlights

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Emerging Markets Equity Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 9.09      $      $ 0.39      $ 0.39      $   (0.05   $   (0.63   $   —      $   (0.68   $   8.80        5.31 %(4)    $ 11,482        1.80 %(5)      1.75 %(5)      0.07 %(5)      55

C

    8.92        (0.03     0.39        0.36               (0.63            (0.63     8.65        4.88 (4)      2,668        2.50 (5)      2.49 (5)      (0.68 )(5)      55   

I

    9.09        0.02        0.38        0.40        (0.08     (0.63            (0.71     8.78        5.52 (4)      3,434        1.37 (5)      1.34 (5)      0.48 (5)      55   

R3

    9.02        (0.01     0.39        0.38        (0.03     (0.63            (0.66     8.74        5.22 (4)      1,983        2.04 (5)      1.95 (5)      (0.13 )(5)      55   

R4

    9.06        0.01        0.38        0.39        (0.05     (0.63            (0.68     8.77        5.41 (4)      1,949        1.73 (5)      1.65 (5)      0.17 (5)      55   

R5

    9.09        0.02        0.38        0.40        (0.08     (0.63            (0.71     8.78        5.48 (4)      1,971        1.43 (5)      1.35 (5)      0.47 (5)      55   

Y

    9.08        0.02        0.38        0.40        (0.08     (0.63            (0.71     8.77        5.55 (4)      183,588        1.33 (5)      1.30 (5)      0.52 (5)      55   

For the Year Ended October 31, 2014

  

                     

A

  $ 9.16      $ 0.06      $      $ 0.06      $ (0.05   $ (0.08   $      $ (0.13   $ 9.09        0.70   $ 11,009        1.86     1.72     0.64     106

C

    9.01        (0.01            (0.01            (0.08            (0.08     8.92        (0.06     2,617        2.50        2.42        (0.12     106   

I

    9.15        0.10               0.10        (0.08     (0.08            (0.16     9.09        1.14        3,045        1.37        1.29        1.08        106   

R3

    9.09        0.04        (0.01     0.03        (0.02     (0.08            (0.10     9.02        0.42        1,927        2.05        1.92        0.45        106   

R4

    9.13        0.07        (0.01     0.06        (0.05     (0.08            (0.13     9.06        0.71        1,850        1.75        1.62        0.76        106   

R5

    9.15        0.10               0.10        (0.08     (0.08            (0.16     9.09        1.11        1,868        1.45        1.32        1.06        106   

Y

    9.15        0.10        (0.01     0.09        (0.08     (0.08            (0.16     9.08        1.05        180,595        1.34        1.26        1.08        106   

For the Year Ended October 31, 2013

  

                     

A

  $ 8.43      $ 0.06      $ 0.67      $ 0.73      $      $      $      $      $ 9.16        8.69   $ 8,141        1.83     1.65     0.68     112

C

    8.34        0.01        0.66        0.67                                    9.01        8.03        2,712        2.43        2.29        0.06        112   

I

    8.45        0.10        0.67        0.77        (0.07                   (0.07     9.15        9.14        2,290        1.35        1.21        1.11        112   

R3

    8.39        0.04        0.68        0.72        (0.02                   (0.02     9.09        8.59        1,918        2.04        1.85        0.47        112   

R4

    8.43        0.07        0.67        0.74        (0.04                   (0.04     9.13        8.84        1,835        1.74        1.55        0.76        112   

R5

    8.45        0.09        0.68        0.77        (0.07                   (0.07     9.15        9.13        1,848        1.44        1.25        1.06        112   

Y

    8.46        0.11        0.67        0.78        (0.09                   (0.09     9.15        9.28          236,487        1.34        1.20        1.25        112   

For the Year Ended October 31, 2012

  

                     

A

  $ 8.22      $ 0.09      $ 0.12      $ 0.21      $      $      $      $      $ 8.43        2.59   $ 8,104        2.05     1.58     1.09     128

C

    8.20        0.02        0.12        0.14                                    8.34        1.71        2,102        2.78        2.31        0.30        128   

I

    8.23        0.11        0.13        0.24        (0.02                   (0.02     8.45        2.88        1,975        1.73        1.26        1.37        128   

R3

    8.21        0.06        0.12        0.18                                    8.39        2.19        1,747        2.42        1.85        0.75        128   

R4

    8.22        0.09        0.12        0.21                                    8.43        2.55        1,686        2.12        1.55        1.05        128   

R5

    8.23        0.11        0.12        0.23        (0.01                   (0.01     8.45        2.85        1,693        1.82        1.25        1.35        128   

Y

    8.23        0.16        0.09        0.25        (0.02                   (0.02     8.46        3.01        170,292        1.38        0.91        1.97        128   

For the Year Ended October 31, 2011(6)

  

                     

A(7)

  $   10.00      $   (0.01   $   (1.77   $   (1.78   $      $      $      $      $ 8.22        (17.80 )%(4)    $ 5,931        1.97 %(5)      1.48 %(5)      (0.19 )%(5)      39 %(4) 

C(7)

    10.00        (0.03     (1.77     (1.80                                 8.20        (18.00 )(4)      1,909        2.71 (5)      2.22 (5)      (0.93 )(5)      39 (4) 

I(7)

    10.00               (1.77     (1.77                                 8.23        (17.70 )(4)      1,708        1.69 (5)      1.20 (5)      0.06 (5)      39 (4) 

R3(7)

    10.00        (0.02     (1.77     (1.79                                 8.21        (17.90 )(4)      1,642        2.38 (5)      1.85 (5)      (0.59 )(5)      39 (4) 

R4(7)

    10.00        (0.01     (1.77     (1.78                                 8.22        (17.80 )(4)      1,644        2.08 (5)      1.55 (5)      (0.29 )(5)      39 (4) 

R5(7)

    10.00               (1.77     (1.77                                 8.23        (17.70 )(4)      1,646        1.78 (5)      1.25 (5)      (5)      39 (4) 

Y(7)

    10.00               (1.77     (1.77                                 8.23        (17.70 )(4)      7,409        1.69 (5)      1.20 (5)      0.05 (5)      39 (4) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  129  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Global Capital Appreciation Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 20.10      $ 0.05      $ 1.02      $ 1.07      $   (0.06   $   (3.17   $   —      $   (3.23   $   17.94        6.76 %(4)    $ 751,652        1.25 %(5)      1.25 %(5)      0.51 %(5)      47

B

    18.65        (0.02     0.94        0.92               (3.17            (3.17     16.40        6.42 (4)      34,549        2.10 (5)      2.00 (5)      (0.29 )(5)      47   

C

    18.78        (0.02     0.95        0.93               (3.17            (3.17     16.54        6.43 (4)      286,851        1.94 (5)      1.94 (5)      (0.18 )(5)      47   

I

    20.59        0.07        1.06        1.13        (0.11     (3.17            (3.28     18.44        7.00 (4)      116,222        0.94 (5)      0.94 (5)      0.81 (5)      47   

R3

    19.85        0.04        1.01        1.05        (0.04     (3.17            (3.21     17.69        6.74 (4)      32,833        1.53 (5)      1.35 (5)      0.41 (5)      47   

R4

    20.35        0.06        1.05        1.11        (0.09     (3.17            (3.26     18.20        6.90 (4)      12,341        1.23 (5)      1.05 (5)      0.72 (5)      47   

R5

    20.68        0.05        1.09        1.14        (0.11     (3.17            (3.28     18.54        6.95 (4)      462        0.93 (5)      0.93 (5)      0.58 (5)      47   

Y

    20.86        0.09        1.08        1.17        (0.13     (3.17            (3.30     18.73        7.04 (4)      210,787        0.82 (5)      0.82 (5)      0.93 (5)      47   

For the Year Ended October 31, 2014

  

                     

A

  $ 18.87      $ 0.13      $ 1.60      $ 1.73      $      $ (0.50   $      $ (0.50   $ 20.10        9.39   $ 732,928        1.28     1.25     0.67     144 %(8) 

B

    17.67        (0.02     1.50        1.48               (0.50            (0.50     18.65        8.59        46,336        2.11        2.00        (0.08     144 (8) 

C

    17.78        (0.01     1.51        1.50               (0.50            (0.50     18.78        8.65        282,703        1.98        1.95        (0.03     144 (8) 

I

    19.26        0.20        1.63        1.83               (0.50            (0.50     20.59        9.72        117,640        0.95        0.92        0.98        144 (8) 

R3

    18.66        0.11        1.58        1.69               (0.50            (0.50     19.85        9.27        31,735        1.57        1.35        0.57        144 (8) 

R4

    19.06        0.18        1.61        1.79               (0.50            (0.50     20.35        9.61        10,055        1.26        1.05        0.88        144 (8) 

R5

    19.34        0.20        1.64        1.84               (0.50            (0.50     20.68        9.73        1,549        0.97        0.94        0.98        144 (8) 

Y

    19.50        0.12        1.76        1.88        (0.02     (0.50            (0.52     20.86        9.83        209,340        0.86        0.83        0.58        144 (8) 

For the Year Ended October 31, 2013

  

                     

A

  $ 13.93      $ 0.07      $ 4.93      $ 5.00      $ (0.06   $      $      $ (0.06   $ 18.87        35.97   $ 503,765        1.36     1.25     0.42     128

B

    13.10        (0.05     4.62        4.57                                    17.67        34.89        56,743        2.20        2.00        (0.32     128   

C

    13.18        (0.05     4.65        4.60                                    17.78        34.90        258,520        2.07        2.00        (0.33     128   

I

    14.22        0.11        5.02        5.13        (0.09                   (0.09     19.26        36.29        117,325        1.04        1.00        0.66        128   

R3

    13.79        0.05        4.87        4.92        (0.05                   (0.05     18.66        35.75        30,704        1.64        1.35        0.31        128   

R4

    14.07        0.11        4.96        5.07        (0.08                   (0.08     19.06        36.18        10,603        1.33        1.05        0.63        128   

R5

    14.28        0.12        5.04        5.16        (0.10                   (0.10     19.34        36.36        1,242        1.05        0.95        0.74        128   

Y

    14.40        0.13        5.08        5.21        (0.11                   (0.11     19.50        36.40        12,947        0.93        0.90        0.76        128   

For the Year Ended October 31, 2012(6)

  

                     

A

  $ 12.80      $ 0.03      $ 1.10      $ 1.13      $      $      $      $      $ 13.93        8.83   $   411,923        1.41     1.32     0.23     135

B

    12.14        (0.08     1.04        0.96                                    13.10        7.91        51,815        2.26        2.10        (0.55     135   

C

    12.21        (0.07     1.04        0.97                                    13.18        7.94        222,460        2.12        2.06        (0.51     135   

I

    13.04        0.08        1.10        1.18                                    14.22        9.05        87,227        1.10        1.05        0.49        135   

R3

    12.69        0.01        1.09        1.10                                    13.79        8.67        24,232        1.69        1.45        0.11        135   

R4

    12.91        0.06        1.10        1.16                                    14.07        8.99        10,362        1.37        1.18        0.37        135   

R5

    13.09        0.08        1.11        1.19                                    14.28        9.09        1,276        1.09        1.00        0.57        135   

Y

    13.18        0.19        1.03        1.22                                    14.40        9.26        12,189        0.97        0.95        0.63        135   

For the Year Ended October 31, 2011(6)

  

                     

A

  $ 12.94      $ (0.03   $   (0.11   $   (0.14   $      $      $      $      $ 12.80        (1.08 )%    $ 467,407        1.41     1.41     (0.19 )%      140

B

    12.37        (0.14     (0.09     (0.23                                 12.14        (1.86     61,934        2.25        2.25        (1.03     140   

C

    12.42        (0.12     (0.09     (0.21                                 12.21        (1.69     266,634        2.13        2.13        (0.91     140   

I

    13.13        0.02        (0.11     (0.09                                 13.04        (0.69     112,597        1.11        1.11        0.12        140   

R3

    12.86        (0.06     (0.11     (0.17                                 12.69        (1.32     20,237        1.72        1.70        (0.48     140   

R4

    13.04        (0.02     (0.11     (0.13                                 12.91        (1.00     12,333        1.40        1.40        (0.17     140   

R5

    13.18        0.02        (0.11     (0.09                                 13.09        (0.68     1,255        1.11        1.10        0.13        140   

Y

    13.25        0.03        (0.10     (0.07                                 13.18        (0.53     33,723        0.99        0.99        0.23        140   

For the Year Ended October 31, 2010(6)

  

                     

A

  $   10.74      $   (0.03   $ 2.23      $ 2.20      $      $      $      $      $ 12.94        20.48   $ 516,406        1.44     1.44     (0.20 )%      155

B

    10.35        (0.14     2.16        2.02                                    12.37        19.52        73,313        2.28        2.28        (1.04     155   

C

    10.39        (0.12     2.15        2.03                                    12.42        19.54        310,899        2.15        2.15        (0.91     155   

I

    10.86        0.02        2.25        2.27                                    13.13        20.90        107,796        1.11        1.11        0.13        155   

R3

    10.71        (0.05     2.20        2.15                                    12.86        20.07        13,520        1.74        1.73        (0.50     155   

R4

    10.82        (0.02     2.24        2.22                                    13.04        20.52        8,486        1.40        1.40        (0.18     155   

R5

    10.91        0.02        2.25        2.27                                    13.18        20.81        777        1.12        1.11        0.12        155   

Y

    10.96        0.04        2.25        2.29                                    13.25        20.89        46,353        1.00        1.00        0.25        155   

 

The accompanying notes are an integral part of these financial statements.

 

 

  130  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Global Equity Income Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   11.72      $   0.12      $ 0.42      $ 0.54      $ (0.08   $   (0.51   $   —      $   (0.59   $   11.67        4.92 %(4)    $ 97,905        1.32 %(5)      1.25 %(5)      2.12 %(5)      10

B

    11.49        0.07        0.41        0.48        (0.03     (0.51            (0.54     11.43        4.50 (4)      1,865        2.27 (5)      2.00 (5)      1.17 (5)      10   

C

    11.47        0.07        0.41        0.48        (0.04     (0.51            (0.55     11.40        4.48 (4)      12,036        2.07 (5)      2.00 (5)      1.32 (5)      10   

I

    11.74        0.14        0.41        0.55        (0.09     (0.51            (0.60     11.69        5.05 (4)      2,284        0.98 (5)      0.96 (5)      2.43 (5)      10   

R3

    11.69        0.10        0.43        0.53        (0.07     (0.51            (0.58     11.64        4.82 (4)      450        1.56 (5)      1.45 (5)      1.79 (5)      10   

R4

    11.73        0.12        0.42        0.54        (0.08     (0.51            (0.59     11.68        4.96 (4)      588        1.26 (5)      1.15 (5)      2.16 (5)      10   

R5

    11.75        0.13        0.43        0.56        (0.10     (0.51            (0.61     11.70        5.10 (4)      608        0.94 (5)      0.85 (5)      2.32 (5)      10   

Y

    11.74        0.14        0.41        0.55        (0.10     (0.51            (0.61     11.68        5.04 (4)        191,345        0.84 (5)      0.80 (5)      2.46 (5)      10   

For the Year Ended October 31, 2014

  

                   

A

  $ 11.96      $ 0.13      $ 0.71      $ 0.84      $ (0.08   $ (1.00   $      $ (1.08   $ 11.72        7.66   $ 75,862        1.57     1.36     1.08     90

B

    11.75        0.03        0.71        0.74               (1.00            (1.00     11.49        6.90        2,208        2.52        2.12        0.26        90   

C

    11.73        0.04        0.70        0.74               (1.00            (1.00     11.47        6.91        10,356        2.31        2.11        0.32        90   

I

    12.00        0.16        0.70        0.86        (0.12     (1.00            (1.12     11.74        7.89        1,377        1.17        1.10        1.35        90   

R3

    11.92        0.10        0.70        0.80        (0.03     (1.00            (1.03     11.69        7.41        465        1.77        1.57        0.81        90   

R4

    11.97        0.14        0.71        0.85        (0.09     (1.00            (1.09     11.73        7.80        508        1.45        1.26        1.19        90   

R5

    12.01        0.18        0.71        0.89        (0.15     (1.00            (1.15     11.75        8.12        659        1.13        0.95        1.53        90   

Y

    12.00        0.18        0.72        0.90        (0.16     (1.00            (1.16     11.74        8.22        192,326        0.87        0.80        1.54        90   

For the Year Ended October 31, 2013

  

                   

A

  $ 9.50      $ 0.07      $ 2.57      $ 2.64      $ (0.18   $      $      $ (0.18   $ 11.96        28.25   $ 59,361        1.73     1.45     0.65     100

B

    9.32        (0.01     2.53        2.52        (0.09                   (0.09     11.75        27.22        3,057        2.66        2.20        (0.07     100   

C

    9.32        (0.01     2.53        2.52        (0.11                   (0.11     11.73        27.27        10,041        2.43        2.20        (0.09     100   

I

    9.54        0.09        2.58        2.67        (0.21                   (0.21     12.00        28.50        1,052        1.38        1.20        0.88        100   

R3

    9.47        0.05        2.57        2.62        (0.17                   (0.17     11.92        28.03        517        1.85        1.65        0.43        100   

R4

    9.52        0.08        2.56        2.64        (0.19                   (0.19     11.97        28.24        436        1.54        1.35        0.75        100   

R5

    9.54        0.11        2.58        2.69        (0.22                   (0.22     12.01        28.75        416        1.23        1.05        1.05        100   

Y

    9.53        0.10        2.60        2.70        (0.23                   (0.23     12.00        28.84        3,975        1.14        1.00        1.02        100   

For the Year Ended October 31, 2012

  

                   

A

  $ 9.30      $ 0.07      $ 0.71      $ 0.78      $ (0.02   $ (0.56   $      $ (0.58   $ 9.50        9.52   $ 46,551        1.78     1.45     0.82     107

B

    9.17               0.71        0.71               (0.56            (0.56     9.32        8.78        3,542        2.69        2.20        0.05        107   

C

    9.17        0.01        0.70        0.71               (0.56            (0.56     9.32        8.78        8,994        2.47        2.20        0.06        107   

I

    9.33        0.09        0.73        0.82        (0.05     (0.56            (0.61     9.54        9.91        708        1.35        1.20        1.03        107   

R3

    9.26        0.06        0.71        0.77               (0.56            (0.56     9.47        9.38        371        1.86        1.65        0.63        107   

R4

    9.31        0.08        0.72        0.80        (0.03     (0.56            (0.59     9.52        9.72        334        1.55        1.35        0.91        107   

R5

    9.33        0.11        0.72        0.83        (0.06     (0.56            (0.62     9.54        10.04        322        1.24        1.05        1.21        107   

Y

    9.32        0.13        0.70        0.83        (0.06     (0.56            (0.62     9.53        10.12        22,849        1.10        1.00        1.48        107   

For the Year Ended October 31, 2011

  

                   

A

  $ 9.56      $ 0.06      $   (0.27   $   (0.21   $   (0.05   $      $      $ (0.05   $ 9.30        (2.22 )%    $ 44,414        1.74     1.45     0.58     102

B

    9.45          (0.02     (0.26     (0.28                                 9.17        (2.96     5,101        2.59        2.20        (0.17     102   

C

    9.45        (0.02     (0.26     (0.28                                 9.17        (2.96     10,009        2.41        2.20        (0.17     102   

I

    9.60        0.10        (0.28     (0.18     (0.09                   (0.09     9.33        (1.93     526        1.21        1.10        1.05        102   

R3

    9.53        0.04        (0.27     (0.23     (0.04                   (0.04     9.26        (2.42     294        1.81        1.65        0.38        102   

R4

    9.57        0.07        (0.27     (0.20     (0.06                   (0.06     9.31        (2.09     299        1.51        1.35        0.68        102   

R5

    9.59        0.10        (0.27     (0.17     (0.09                   (0.09     9.33        (1.81     292        1.20        1.05        0.98        102   

Y

    9.58        0.10        (0.26     (0.16     (0.10                   (0.10     9.32        (1.77     67,387        1.10        1.00        1.00        102   

For the Year Ended October 31, 2010

  

                   

A

  $ 8.01      $ 0.04      $ 1.52      $ 1.56      $ (0.01   $      $      $ (0.01   $ 9.56        19.48   $ 47,429        1.85     1.48     0.48     100

B

    7.97        (0.03     1.51        1.48                                    9.45        18.57        7,209        2.72        2.24        (0.30     100   

C

    7.97        (0.03     1.51        1.48                                    9.45        18.57        12,910        2.52        2.23        (0.30     100   

I

    8.02        0.07        1.53        1.60        (0.02                   (0.02     9.60        20.00        517        1.26        1.12        0.87        100   

R3

    8.00        0.02        1.51        1.53                                    9.53        19.13        313        1.90        1.72        0.22        100   

R4

    8.01        0.04        1.52        1.56                                    9.57        19.48        299        1.60        1.45        0.49        100   

R5

    8.02        0.07        1.51        1.58        (0.01                   (0.01     9.59        19.77        297        1.29        1.14        0.81        100   

Y

    8.01        0.07        1.52        1.59        (0.02                   (0.02     9.58        19.92        47,067        1.21        1.07        0.91        100   

 

The accompanying notes are an integral part of these financial statements.

 

 

  131  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment

Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses

to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford International Capital Appreciation Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   9.92      $ 0.02      $   0.54      $   0.56      $   (0.08   $   (0.25   $   —      $   (0.33   $   10.15        6.08 %(4)    $   12,834        1.87 %(5)      1.45 %(5)      0.37 %(5)      43

B

    9.84        (0.02     0.56        0.54               (0.25            (0.25     10.13        5.80 (4)      927        2.52 (5)      2.17 (5)      (0.39 )(5)      43   

C

    9.80        (0.02     0.56        0.54        (0.02     (0.25            (0.27     10.07        5.81 (4)      2,666        2.58 (5)      2.20 (5)      (0.32 )(5)      43   

I

    9.98        0.04        0.55        0.59        (0.12     (0.25            (0.37     10.20        6.31 (4)      2,606        1.43 (5)      1.12 (5)      0.78 (5)      43   

R3

    9.91        0.01        0.57        0.58        (0.06     (0.25            (0.31     10.18        6.08 (4)      1,314        2.11 (5)      1.65 (5)      0.15 (5)      43   

R4

    9.95        0.02        0.56        0.58        (0.09     (0.25            (0.34     10.19        6.20 (4)      1,231        1.80 (5)      1.35 (5)      0.45 (5)      43   

R5

    9.98        0.04        0.56        0.60        (0.12     (0.25            (0.37     10.21        6.41 (4)      1,140        1.49 (5)      1.05 (5)      0.75 (5)      43   

Y

    9.98        0.04        0.56        0.60        (0.12     (0.25            (0.37     10.21        6.47 (4)      11,448        1.39 (5)      1.00 (5)      0.80 (5)      43   

For the Year Ended October 31, 2014

  

                   

A

  $ 9.91      $ 0.06      $ 0.03      $ 0.09      $ (0.08   $      $      $ (0.08   $ 9.92        0.89   $ 10,810        1.84     1.44     0.57     69

B

    9.84          (0.02     0.03        0.01        (0.01                   (0.01     9.84        0.10        908        2.53        2.13        (0.18     69   

C

    9.81        (0.03     0.04        0.01        (0.02                   (0.02     9.80        0.06        1,910        2.59        2.19        (0.26     69   

I

    9.97        0.10        0.02        0.12        (0.11                   (0.11     9.98        1.19        1,835        1.44        1.04        1.03        69   

R3

    9.91        0.05        0.01        0.06        (0.06                   (0.06     9.91        0.54        1,258        2.12        1.65        0.44        69   

R4

    9.94        0.08        0.01        0.09        (0.08                   (0.08     9.95        0.90        1,151        1.81        1.35        0.74        69   

R5

    9.97        0.11        0.01        0.12        (0.11                   (0.11     9.98        1.18        1,071        1.50        1.05        1.04        69   

Y

    9.97        0.11        0.01        0.12        (0.11                   (0.11     9.98        1.22        10,756        1.40        1.00        1.09        69   

For the Year Ended October 31, 2013

  

                   

A

  $ 8.31      $ 0.10      $ 1.66      $ 1.76      $ (0.16   $      $      $ (0.16   $ 9.91        21.43   $ 12,351        1.95     1.41     1.12     106

B

    8.25        0.04        1.65        1.69        (0.10                   (0.10     9.84        20.63        1,404        2.64        2.11        0.44        106   

C

    8.23        0.04        1.64        1.68        (0.10                   (0.10     9.81        20.64        2,514        2.68        2.15        0.39        106   

I

    8.36        0.14        1.66        1.80        (0.19                   (0.19     9.97        21.90        1,467        1.56        1.03        1.50        106   

R3

    8.31        0.08        1.66        1.74        (0.14                   (0.14     9.91        21.22        1,225        2.25        1.65        0.91        106   

R4

    8.33        0.11        1.67        1.78        (0.17                   (0.17     9.94        21.62        1,122        1.94        1.35        1.21        106   

R5

    8.35        0.14        1.67        1.81        (0.19                   (0.19     9.97        22.02        1,059        1.63        1.05        1.50        106   

Y

    8.36        0.14        1.66        1.80        (0.19                   (0.19     9.97        21.93        10,623        1.53        1.00        1.55        106   

For the Year Ended October 31, 2012

  

                     

A

  $ 7.98      $ 0.10      $ 0.29      $ 0.39      $ (0.06   $      $      $ (0.06   $ 8.31        4.94   $ 8,397        2.11     1.44     1.26     85

B

    7.92        0.04        0.29        0.33                                    8.25        4.17        1,111        2.80        2.13        0.57        85   

C

    7.90        0.04        0.29        0.33                                    8.23        4.18        1,753        2.83        2.16        0.53        85   

I

    8.03        0.13        0.29        0.42        (0.09                   (0.09     8.36        5.39        1,119        1.69        1.02        1.67        85   

R3

    7.98        0.08        0.29        0.37        (0.04                   (0.04     8.31        4.68        963        2.39        1.65        1.05        85   

R4

    8.00        0.11        0.28        0.39        (0.06                   (0.06     8.33        5.02        924        2.08        1.35        1.34        85   

R5

    8.03        0.13        0.28        0.41        (0.09                   (0.09     8.35        5.23        868        1.77        1.05        1.64        85   

Y

    8.03        0.14        0.28        0.42        (0.09                   (0.09     8.36        5.42        8,708        1.67        1.00        1.69        85   

For the Year Ended October 31, 2011

  

                     

A

  $ 8.46      $ 0.07      $   (0.48   $   (0.41   $ (0.07   $      $      $ (0.07   $ 7.98        (4.87 )%    $ 8,137        2.01     1.41     0.84     89

B

    8.39        0.01        (0.47     (0.46     (0.01                   (0.01     7.92        (5.47     1,141        2.72        2.12        0.14        89   

C

    8.39        0.01        (0.48     (0.47     (0.02                   (0.02     7.90        (5.67     1,513        2.75        2.15        0.13        89   

I

    8.50        0.11        (0.48     (0.37     (0.10                   (0.10     8.03        (4.43     941        1.61        1.01        1.26        89   

R3

    8.46        0.05        (0.48     (0.43     (0.05                   (0.05     7.98        (5.10     890        2.31        1.65        0.60        89   

R4

    8.48        0.08        (0.49     (0.41     (0.07                   (0.07     8.00        (4.87     859        2.01        1.35        0.91        89   

R5

    8.49        0.10        (0.47     (0.37     (0.09                   (0.09     8.03        (4.40     824        1.70        1.05        1.21        89   

Y

    8.50        0.11        (0.48     (0.37     (0.10                   (0.10     8.03        (4.44     8,264        1.60        1.00        1.26        89   

For the Year Ended October 31, 2010

  

                     

A

  $ 7.35      $ 0.05      $ 1.14      $ 1.19      $ (0.08   $      $      $ (0.08   $ 8.46        16.31   $ 8,005        2.29     1.58     0.58     155

B

    7.31        (0.01     1.13        1.12        (0.04                   (0.04     8.39        15.36        1,177        3.01        2.32        (0.18     155   

C

    7.31        (0.01     1.13        1.12        (0.04                   (0.04     8.39        15.43        1,452        3.05        2.33        (0.20     155   

I

    7.38        0.07        1.15        1.22        (0.10                   (0.10     8.50        16.69        880        1.90        1.21        0.90        155   

R3

    7.35        0.02        1.15        1.17        (0.06                   (0.06     8.46        16.02        906        2.59        1.81        0.30        155   

R4

    7.36        0.04        1.16        1.20        (0.08                   (0.08     8.48        16.38        877        2.29        1.55        0.57        155   

R5

    7.37        0.06        1.15        1.21        (0.09                   (0.09     8.49        16.61        863        1.99        1.28        0.83        155   

Y

    7.38        0.07        1.15        1.22        (0.10                   (0.10     8.50        16.69        8,650        1.89        1.20        0.92        155   

 

The accompanying notes are an integral part of these financial statements.

 

 

  132  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment

Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford International Growth Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

A

  $   12.56      $ 0.01      $   0.82      $ 0.83      $   (0.02   $   —      $   —      $   (0.02   $   13.37        6.67 %(4)    $   116,219        1.51 %(5)      1.49 %(5)      0.18 %(5)      38

B

    11.65        (0.04     0.77        0.73                                    12.38        6.27 (4)      3,342        2.64 (5)      2.25 (5)      (0.70 )(5)      38   

C

    11.63          (0.03     0.77        0.74                                    12.37        6.36 (4)      17,229        2.21 (5)      2.20 (5)      (0.49 )(5)      38   

I

    12.51        0.06        0.79        0.85        (0.09                   (0.09     13.27        6.83 (4)      36,467        1.10 (5)      1.09 (5)      0.95 (5)      38   

R3

    12.68        0.02        0.82        0.84                                    13.52        6.62 (4)      812        1.76 (5)      1.60 (5)      0.35 (5)      38   

R4

    12.92        0.03        0.85        0.88        (0.06                   (0.06     13.74        6.84 (4)      2,227        1.38 (5)      1.30 (5)      0.51 (5)      38   

R5

    13.01        0.07        0.83        0.90        (0.09                   (0.09     13.82        6.99 (4)      3,841        1.08 (5)      1.00 (5)      1.13 (5)      38   

Y

    13.06        0.05        0.84        0.89        (0.09                   (0.09     13.86        6.92 (4)      38,899        0.97 (5)      0.95 (5)      0.69 (5)      38   

For the Year Ended October 31, 2014

  

A

  $ 12.10      $ 0.07      $ 0.48      $ 0.55      $ (0.09   $      $      $ (0.09   $ 12.56        4.52   $ 97,732        1.58     1.50     0.55     84

B

    11.23        (0.03     0.45        0.42                                    11.65        3.74        4,384        2.64        2.25        (0.25     84   

C

    11.22        (0.02     0.43        0.41                                    11.63        3.65        12,978        2.30        2.24        (0.19     84   

I

    12.04        0.12        0.47        0.59        (0.12                   (0.12     12.51        4.94        6,748        1.18        1.12        0.92        84   

R3

    12.19        0.06        0.48        0.54        (0.05                   (0.05     12.68        4.40        458        1.83        1.60        0.48        84   

R4

    12.45        0.10        0.48        0.58        (0.11                   (0.11     12.92        4.68        1,293        1.44        1.30        0.77        84   

R5

    12.53        0.13        0.49        0.62        (0.14                   (0.14     13.01        4.99        182        1.13        1.00        1.03        84   

Y

    12.57        0.11        0.53        0.64        (0.15                   (0.15     13.06        5.10        38,538        1.01        0.95        0.87        84   

For the Year Ended October 31, 2013

  

A

  $ 9.75      $ 0.10      $ 2.34      $ 2.44      $ (0.09   $      $      $ (0.09   $ 12.10        25.15   $ 93,051        1.65     1.50     0.88     99

B

    9.04        0.02        2.17        2.19                                    11.23        24.27        6,816        2.66        2.25        0.16        99   

C

    9.04        0.01        2.19        2.20        (0.02                   (0.02     11.22        24.32        13,213        2.35        2.25        0.14        99   

I

    9.70        0.14        2.32        2.46        (0.12                   (0.12     12.04        25.58        5,549        1.24        1.16        1.25        99   

R3

    9.82        0.09        2.36        2.45        (0.08                   (0.08     12.19        25.03        485        1.83        1.60        0.81        99   

R4

    10.03        0.12        2.41        2.53        (0.11                   (0.11     12.45        25.42        905        1.45        1.30        1.08        99   

R5

    10.09        0.16        2.42        2.58        (0.14                   (0.14     12.53        25.83        152        1.15        1.00        1.37        99   

Y

    10.12        0.16        2.44        2.60        (0.15                   (0.15     12.57        25.91        3,524        1.02        0.95        1.41        99   

For the Year Ended October 31, 2012

  

A

  $ 9.25      $ 0.07      $ 0.51      $ 0.58      $ (0.08   $      $      $ (0.08   $ 9.75        6.33   $ 83,324        1.68     1.50     0.72     106

B

    8.57               0.47        0.47                                    9.04        5.48        8,974        2.67        2.25        (0.03     106   

C

    8.57               0.47        0.47                                    9.04        5.50        12,465        2.39        2.25        (0.02     106   

I

    9.21        0.10        0.50        0.60        (0.11                   (0.11     9.70        6.63        5,585        1.28        1.21        1.08        106   

R3

    9.33        0.06        0.51        0.57        (0.08                   (0.08     9.82        6.23        700        1.83        1.60        0.65        106   

R4

    9.45        0.09        0.53        0.62        (0.04                   (0.04     10.03        6.61        718        1.46        1.30        0.98        106   

R5

    9.58        0.12        0.52        0.64        (0.13                   (0.13     10.09        6.87        117        1.16        1.00        1.21        106   

Y

    9.61        0.12        0.53        0.65        (0.14                   (0.14     10.12        6.93        2,834        1.02        0.95        1.29        106   

For the Year Ended October 31, 2011

  

A

  $ 9.61      $ 0.06      $   (0.42   $   (0.36   $      $      $      $      $ 9.25        (3.75 )%    $ 101,400        1.58     1.50     0.58     88

B

    8.96        (0.02     (0.37     (0.39                                 8.57        (4.35     12,013        2.54        2.25        (0.17     88   

C

    8.97        (0.02     (0.38     (0.40                                 8.57        (4.46     14,806        2.31        2.25        (0.17     88   

I

    9.53        0.11        (0.43     (0.32                                 9.21        (3.36     5,354        1.21        1.17        1.06        88   

R3

    9.70        0.05        (0.42     (0.37                                 9.33        (3.81     777        1.79        1.60        0.47        88   

R4

    9.79        0.09        (0.43     (0.34                                 9.45        (3.47     1,335        1.39        1.30        0.88        88   

R5

    9.90        0.12        (0.44     (0.32                                 9.58        (3.23     139        1.09        1.00        1.14        88   

Y

    9.93        0.12        (0.44     (0.32                                 9.61        (3.22     3,237        0.98        0.95        1.13        88   

For the Year Ended October 31, 2010

  

A

  $ 8.00      $ 0.05      $ 1.71      $ 1.76      $ (0.15   $      $      $ (0.15   $ 9.61        22.29   $ 134,685        1.67     1.55     0.58     110

B

    7.50        (0.01     1.59        1.58        (0.12                   (0.12     8.96        21.30        16,390        2.63        2.30        (0.17     110   

C

    7.48        (0.01     1.60        1.59        (0.10                   (0.10     8.97        21.41        19,892        2.38        2.30        (0.17     110   

I

    7.95        0.08        1.69        1.77        (0.19                   (0.19     9.53        22.65        6,674        1.21        1.21        0.88        110   

R3

    8.08        0.03        1.73        1.76        (0.14                   (0.14     9.70        22.05        583        1.84        1.76        0.40        110   

R4

    8.14        0.06        1.75        1.81        (0.16                   (0.16     9.79        22.52        400        1.46        1.44        0.67        110   

R5

    8.21        0.09        1.77        1.86        (0.17                   (0.17     9.90        22.99        110        1.08        1.08        1.08        110   

Y

    8.24        0.12        1.76        1.88        (0.19                   (0.19     9.93        23.17        3,491        1.05        1.05        1.36        110   

 

The accompanying notes are an integral part of these financial statements.

 

 

  133  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford International Opportunities Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   16.96      $   0.04      $   0.86      $ 0.90      $   (0.17   $   (1.87   $   —      $   (2.04   $   15.82        6.36 %(4)    $   531,427        1.19 %(5)      1.19 %(5)      0.59 %(5)      44

B

    15.52        (0.03     0.79        0.76        (0.02     (1.87            (1.89     14.39        5.94 (4)      5,727        2.29 (5)      2.03 (5)      (0.37 )(5)      44   

C

    15.20        (0.01     0.76        0.75        (0.08     (1.87            (1.95     14.00        6.05 (4)      58,944        1.92 (5)      1.92 (5)      (0.18 )(5)      44   

I

    16.91        0.06        0.87        0.93        (0.22     (1.87            (2.09     15.75        6.63 (4)      95,981        0.85 (5)      0.85 (5)      0.85 (5)      44   

R3

    17.18        0.03        0.87        0.90        (0.14     (1.87            (2.01     16.07        6.26 (4)      49,284        1.44 (5)      1.44 (5)      0.34 (5)      44   

R4

    17.43        0.05        0.89        0.94        (0.18     (1.87            (2.05     16.32        6.44 (4)      120,893        1.14 (5)      1.14 (5)      0.62 (5)      44   

R5

    17.58        0.07        0.89        0.96        (0.22     (1.87            (2.09     16.45        6.54 (4)      96,514        0.84 (5)      0.84 (5)      0.90 (5)      44   

R6(9)

    17.42        0.09        1.12        1.21        (0.23     (1.87            (2.10     16.53        8.08 (4)      11        0.73 (5)      0.73 (5)      1.10 (5)      44   

Y

    17.66        0.08        0.89        0.97        (0.23     (1.87            (2.10     16.53        6.61 (4)      632,243        0.74 (5)      0.74 (5)      1.00 (5)      44   

For the Year Ended October 31, 2014

  

                     

A

  $ 17.46      $ 0.14      $ 0.11      $ 0.25      $ (0.20   $ (0.55   $      $ (0.75   $ 16.96        1.45   $ 465,854        1.20     1.20     0.80     104

B

    16.04        (0.01     0.10        0.09        (0.06     (0.55            (0.61     15.52        0.58        6,825        2.30        2.04        (0.07     104   

C

    15.76        0.01        0.09        0.10        (0.11     (0.55            (0.66     15.20        0.68        55,122        1.93        1.93        0.07        104   

I

    17.41        0.20        0.10        0.30        (0.25     (0.55            (0.80     16.91        1.76        99,430        0.84        0.84        1.15        104   

R3

    17.69        0.09        0.11        0.20        (0.16     (0.55            (0.71     17.18        1.19        40,827        1.44        1.44        0.54        104   

R4

    17.93        0.15        0.11        0.26        (0.21     (0.55            (0.76     17.43        1.47        104,977        1.14        1.14        0.83        104   

R5

    18.06        0.21        0.11        0.32        (0.25     (0.55            (0.80     17.58        1.83        85,424        0.84        0.84        1.16        104   

Y

    18.14        0.25        0.09        0.34        (0.27     (0.55            (0.82     17.66        1.90        581,030        0.74        0.74        1.38        104   

For the Year Ended October 31, 2013

  

                     

A

  $ 14.49      $ 0.22      $ 2.92      $ 3.14      $ (0.17   $      $      $ (0.17   $ 17.46        21.87   $ 394,928        1.26     1.26     1.36     107

B

    13.32        0.08        2.69        2.77        (0.05                   (0.05     16.04        20.89        8,960        2.35        2.05        0.56        107   

C

    13.10        0.09        2.65        2.74        (0.08                   (0.08     15.76        20.99        43,495        1.98        1.98        0.66        107   

I

    14.45        0.28        2.91        3.19        (0.23                   (0.23     17.41        22.30        61,280        0.90        0.90        1.77        107   

R3

    14.70        0.19        2.96        3.15        (0.16                   (0.16     17.69        21.63        33,633        1.46        1.46        1.20        107   

R4

    14.89        0.25        3.00        3.25        (0.21                   (0.21     17.93        22.02        86,150        1.15        1.15        1.51        107   

R5

    14.98        0.29        3.02        3.31        (0.23                   (0.23     18.06        22.37        69,712        0.85        0.85        1.79        107   

Y

    15.04        0.32        3.03        3.35        (0.25                   (0.25     18.14        22.51        770,427        0.75        0.75        1.97        107   

For the Year Ended October 31, 2012

  

                     

A

  $ 13.67      $ 0.18      $ 0.79      $ 0.97      $ (0.15   $      $      $ (0.15   $ 14.49        7.28   $ 264,957        1.36     1.30     1.30     98

B

    12.56        0.07        0.74        0.81        (0.05                   (0.05     13.32        6.46        9,358        2.44        2.05        0.55        98   

C

    12.37        0.07        0.72        0.79        (0.06                   (0.06     13.10        6.48        32,044        2.06        2.05        0.56        98   

I

    13.65        0.22        0.80        1.02        (0.22                   (0.22     14.45        7.68        31,190        0.97        0.97        1.60        98   

R3

    13.90        0.15        0.81        0.96        (0.16                   (0.16     14.70        7.05        18,786        1.52        1.50        1.10        98   

R4

    14.07        0.21        0.80        1.01        (0.19                   (0.19     14.89        7.40        42,803        1.20        1.20        1.45        98   

R5

    14.16        0.25        0.80        1.05        (0.23                   (0.23     14.98        7.67        35,803        0.91        0.90        1.73        98   

Y

    14.20        0.19        0.89        1.08        (0.24                   (0.24     15.04        7.83        467,786        0.79        0.79        1.34        98   

For the Year Ended October 31, 2011

  

                     

A

  $ 14.68      $ 0.14      $   (1.14   $   (1.00   $ (0.01   $      $      $ (0.01   $ 13.67        (6.80 )%    $ 261,920        1.34     1.30     0.96     122

B

    13.58        0.02        (1.04     (1.02                                 12.56        (7.51     11,877        2.33        2.05        0.16        122   

C

    13.37        0.03        (1.03     (1.00                                 12.37        (7.48     33,621        2.04        2.04        0.19        122   

I

    14.62        0.20        (1.15     (0.95     (0.02                   (0.02     13.65        (6.49     18,801        0.97        0.97        1.39        122   

R3

    14.95        0.13        (1.17     (1.04     (0.01                   (0.01     13.90        (6.97     10,727        1.54        1.50        0.89        122   

R4

    15.10        0.17        (1.18     (1.01     (0.02                   (0.02     14.07        (6.73     11,406        1.23        1.20        1.12        122   

R5

    15.15        0.18        (1.15     (0.97     (0.02                   (0.02     14.16        (6.40     21,285        0.94        0.90        1.22        122   

Y

    15.19        0.21        (1.17     (0.96     (0.03                   (0.03     14.20        (6.37     114,791        0.82        0.82        1.38        122   

For the Year Ended October 31, 2010

  

                     

A

  $ 12.62      $ 0.07      $ 2.14      $ 2.21      $ (0.15   $      $      $ (0.15   $ 14.68        17.56   $ 310,049        1.47     1.42     0.54     106

B

    11.65          (0.03     1.97        1.94        (0.01                   (0.01     13.58        16.70        16,434        2.44        2.19        (0.24     106   

C

    11.46        (0.02     1.94        1.92        (0.01                   (0.01     13.37        16.72        37,671        2.16        2.15        (0.19     106   

I

    12.59        0.13        2.12        2.25        (0.22                   (0.22     14.62        18.01        10,933        1.08        1.08        1.02        106   

R3

    12.88        0.05        2.17        2.22        (0.15                   (0.15     14.95        17.28        4,413        1.63        1.59        0.38        106   

R4

    12.98        0.08        2.22        2.30        (0.18                   (0.18     15.10        17.76        7,066        1.29        1.27        0.63        106   

R5

    13.04        0.14        2.21        2.35        (0.24                   (0.24     15.15        18.12        2,704        0.99        0.97        1.04        106   

Y

    13.07        0.14        2.22        2.36        (0.24                   (0.24     15.19        18.20        189,576        0.90        0.90        1.05        106   

 

The accompanying notes are an integral part of these financial statements.

 

 

  134  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment

Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford International Small Company Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

A

  $ 16.85      $      $   0.99      $   0.99      $   (0.24   $   (3.01   $   —      $   (3.25   $   14.59        7.98 %(4)    $ 71,878        1.49 %(5)      1.49 %(5)      (0.01 )%(5)      22

B

    15.88        (0.06     0.94        0.88        (0.07     (3.01            (3.08     13.68        7.58 (4)      1,759        2.63 (5)      2.28 (5)      (0.95 )(5)      22   

C

    15.61        (0.05     0.91        0.86        (0.14     (3.01            (3.15     13.32        7.69 (4)      15,476        2.20 (5)      2.20 (5)      (0.76 )(5)      22   

I

    16.76        0.04        0.98        1.02        (0.28     (3.01            (3.29     14.49        8.28 (4)      50,282        1.15 (5)      1.15 (5)      0.53 (5)      22   

R3

    16.94        (0.01     1.01        1.00        (0.23     (3.01            (3.24     14.70        8.00 (4)      10,331        1.69 (5)      1.65 (5)      (0.15 )(5)      22   

R4

    17.02        0.01        1.02        1.03        (0.28     (3.01            (3.29     14.76        8.16 (4)      7,589        1.39 (5)      1.35 (5)      0.15 (5)      22   

R5

    17.11        0.04        1.00        1.04        (0.31     (3.01            (3.32     14.83        8.20 (4)      450        1.13 (5)      1.05 (5)      0.51 (5)      22   

Y

    17.12        0.04        1.01        1.05        (0.32     (3.01            (3.33     14.84        8.31 (4)      162,760        0.99 (5)      0.99 (5)      0.59 (5)      22   

For the Year Ended October 31, 2014

  

A

  $   17.46      $   0.07      $ (0.65   $ (0.58   $ (0.03   $      $      $ (0.03   $ 16.85        (3.33 )%    $ 69,074        1.49     1.49     0.37     66

B

    16.57        (0.10     (0.59     (0.69                                 15.88        (4.16     2,524        2.52        2.29        (0.58     66   

C

    16.27        (0.05     (0.61     (0.66                                 15.61        (4.06     16,752        2.19        2.19        (0.32     66   

I

    17.39        0.15        (0.68     (0.53     (0.10                   (0.10     16.76        (3.08     37,503        1.19        1.19        0.86        66   

R3

    17.58        0.04        (0.66     (0.62     (0.02                   (0.02     16.94        (3.54     9,399        1.70        1.65        0.20        66   

R4

    17.65        0.09        (0.65     (0.56     (0.07                   (0.07     17.02        (3.22     6,754        1.40        1.35        0.50        66   

R5

    17.72        0.13        (0.64     (0.51     (0.10                   (0.10     17.11        (2.90     343        1.10        1.05        0.70        66   

Y

    17.73        0.15        (0.65     (0.50     (0.11                   (0.11     17.12        (2.88     116,958        0.99        0.99        0.84        66   

For the Year Ended October 31, 2013

  

A

  $ 13.14      $ 0.05      $ 4.51      $ 4.56      $ (0.24   $      $      $ (0.24   $ 17.46        35.16   $ 63,926        1.54     1.54     0.34     78

B

    12.47        (0.06     4.28        4.22        (0.12                   (0.12     16.57        34.12        4,504        2.55        2.29        (0.43     78   

C

    12.26        (0.05     4.20        4.15        (0.14                   (0.14     16.27        34.19        11,936        2.28        2.28        (0.39     78   

I

    13.09        0.10        4.49        4.59        (0.29                   (0.29     17.39        35.66        5,546        1.11        1.11        0.64        78   

R3

    13.24        0.04        4.53        4.57        (0.23                   (0.23     17.58        35.02        7,319        1.69        1.65        0.24        78   

R4

    13.29        0.08        4.55        4.63        (0.27                   (0.27     17.65        35.44        3,662        1.39        1.35        0.53        78   

R5

    13.34        0.14        4.54        4.68        (0.30                   (0.30     17.72        35.74        622        1.11        1.05        0.93        78   

Y

    13.34        0.14        4.56        4.70        (0.31                   (0.31     17.73        35.86          216,574        0.99        0.99        0.94        78   

For the Year Ended October 31, 2012(6)

  

A

  $ 12.03      $ 0.08      $ 1.06      $ 1.14      $ (0.03   $      $      $ (0.03   $ 13.14        9.56   $ 47,109        1.61     1.55     0.59     61

B

    11.47        (0.03     1.03        1.00                                    12.47        8.72        4,973        2.62        2.30        (0.20     61   

C

    11.28        (0.02     1.00        0.98                                    12.26        8.69        8,647        2.37        2.30        (0.17     61   

I

    12.00        0.13        1.06        1.19        (0.10                   (0.10     13.09        10.08        8,781        1.06        1.05        1.12        61   

R3

    12.16        0.08        1.06        1.14        (0.06                   (0.06     13.24        9.44        4,297        1.71        1.65        0.62        61   

R4

    12.20        0.12        1.06        1.18        (0.09                   (0.09     13.29        9.81        1,802        1.41        1.35        0.95        61   

R5

    12.22        0.14        1.08        1.22        (0.10                   (0.10     13.34        10.17        164        1.15        1.05        1.15        61   

Y

    12.23        0.13        1.09        1.22        (0.11                   (0.11     13.34        10.14        162,036        1.01        1.00        1.11        61   

For the Year Ended October 31, 2011

  

A

  $ 12.56      $ 0.07      $   (0.47   $   (0.40   $ (0.13   $      $      $ (0.13   $ 12.03        (3.28 )%    $ 50,854        1.59     1.55     0.51     69

B

    11.97          (0.04     (0.43     (0.47     (0.03                   (0.03     11.47        (3.91     6,188        2.55        2.30        (0.29     69   

C

    11.78        (0.03     (0.43     (0.46     (0.04                   (0.04     11.28        (3.93     9,420        2.34        2.30        (0.27     69   

I

    12.53        0.12        (0.46     (0.34     (0.19                   (0.19     12.00        (2.82     7,309        1.09        1.07        0.94        69   

R3

    12.72        0.09        (0.50     (0.41     (0.15                   (0.15     12.16        (3.31     2,065        1.71        1.65        0.73        69   

R4

    12.74        0.12        (0.50     (0.38     (0.16                   (0.16     12.20        (3.10     356        1.44        1.35        0.90        69   

R5

    12.75        0.13        (0.47     (0.34     (0.19                   (0.19     12.22        (2.77     126        1.12        1.05        0.99        69   

Y

    12.76        0.14        (0.48     (0.34     (0.19                   (0.19     12.23        (2.72     105,329        1.02        1.00        1.03        69   

For the Year Ended October 31, 2010

  

A

  $ 10.74      $ 0.02      $ 1.92      $ 1.94      $ (0.12   $      $      $ (0.12   $ 12.56        18.22   $ 53,514        1.63     1.57     0.14     97

B

    10.28        (0.07     1.84        1.77        (0.08                   (0.08     11.97        17.28        7,850        2.60        2.32        (0.63     97   

C

    10.10        (0.07     1.80        1.73        (0.05                   (0.05     11.78        17.23        11,103        2.37        2.32        (0.62     97   

I

    10.70        0.07        1.91        1.98        (0.15                   (0.15     12.53        19.76        7,698        1.08        1.08        0.63        97   

R3(10)

    10.20               2.52        2.52                                    12.74        24.71 (4)      125        1.73 (5)      1.65 (5)      0.08 (5)      97   

R4(10)

    10.20        0.02        2.52        2.54                                    12.74        24.90 (4)      125        1.43 (5)      1.36 (5)      0.38 (5)      97   

R5(10)

    10.20        0.04        2.51        2.55                                    12.75        25.00 (4)      125        1.12 (5)      1.06 (5)      0.68 (5)      97   

Y

    10.89        0.07        1.96        2.03        (0.16                   (0.16     12.76        18.83        111,493        1.02        1.02        0.68        97   

 

The accompanying notes are an integral part of these financial statements.

 

 

  135  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment

Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford International Value Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

A

  $   14.37      $   0.07      $   1.22      $   1.29      $   (0.07   $      $      $ (0.07   $ 15.59        9.03 %(4)    $   323,592        1.33 %(5)      1.33 %(5)      0.93 %(5)      18

C

    14.16        (0.01     1.24        1.23        (0.02                   (0.02     15.37        8.70 (4)      58,681        2.00 (5)      2.00 (5)      (0.11 )(5)      18   

I

    14.49        0.06        1.27        1.33        (0.10                   (0.10     15.72        9.28 (4)      539,340        0.98 (5)      0.98 (5)      0.84 (5)      18   

R3

    14.33        0.02        1.26        1.28        (0.03                   (0.03     15.58        8.94 (4)      1,417        1.60 (5)      1.60 (5)      0.32 (5)      18   

R4

    14.42        0.06        1.24        1.30        (0.07                   (0.07     15.65        9.07 (4)      2,627        1.30 (5)      1.30 (5)      0.79 (5)      18   

R5

    14.50        0.06        1.27        1.33        (0.10                   (0.10     15.73        9.22 (4)      1,293        0.99 (5)      0.99 (5)      0.89 (5)      18   

Y

    14.75        0.09        1.27        1.36        (0.11                   (0.11     16.00        9.29 (4)      105,549        0.89 (5)      0.89 (5)      1.17 (5)      18   

For the Year Ended October 31, 2014

  

A

  $ 14.22      $ 0.14      $ 0.01      $ 0.15      $      $      $   —      $      $ 14.37        1.05   $ 116,268        1.37     1.36     0.94     31

C

    14.11        0.03        0.02        0.05                                    14.16        0.35        52,779        2.05        2.04        0.19        31   

I

    14.29        0.18        0.02        0.20                                    14.49        1.40        515,604        1.02        1.01        1.20        31   

R3

    14.22        0.10        0.01        0.11                                    14.33        0.77        1,223        1.70        1.60        0.66        31   

R4

    14.26        0.15        0.01        0.16                                    14.42        1.12        1,111        1.39        1.30        0.96        31   

R5

    14.30        0.21        (0.01     0.20                                    14.50        1.40        1,185        1.08        1.00        1.37        31   

Y

    14.54        0.19        0.02        0.21                                    14.75        1.44        47,264        0.96        0.95        1.26        31   

For the Year Ended October 31, 2013

  

A

  $ 11.83      $ 0.21      $ 3.22      $ 3.43      $ (1.04 )(11)    $      $      $ (1.04   $ 14.22        30.95   $ 13,315        1.91     1.40     1.67     253

C

    11.75        0.12        3.20        3.32        (0.96 )(12)                    (0.96     14.11        30.00        2,604        2.57        2.11        0.91        253   

I

    11.89        0.25        3.24        3.49        (1.09 )(13)                    (1.09     14.29        31.36        2,558        1.48        1.02        1.93        253   

R3

    11.83        0.21        3.20        3.41        (1.02 )(11)                    (1.02     14.22        30.67        823        2.17        1.60        1.63        253   

R4

    11.86        0.24        3.21        3.45        (1.05 )(11)                    (1.05     14.26        31.06        801        1.86        1.30        1.93        253   

R5

    11.89        0.28        3.22        3.50        (1.09 )(13)                    (1.09     14.30        31.44        809        1.56        1.00        2.23        253   

Y

    11.91        0.23        3.50        3.73        (1.10 )(13)                    (1.10     14.54        33.53        10,725        1.27        0.81        1.86        253   

For the Year Ended October 31, 2012

  

A

  $ 11.28      $ 0.18      $ 0.45      $ 0.63      $ (0.08   $      $      $ (0.08   $ 11.83        5.68   $ 4,126        1.57     1.40     1.64     137

C

    11.19        0.10        0.46        0.56                                    11.75        5.00        901        2.18        2.09        0.94        137   

I

    11.32        0.23        0.45        0.68        (0.11                   (0.11     11.89        6.14        615        1.09        1.00        2.02        137   

R3

    11.26        0.16        0.45        0.61        (0.04                   (0.04     11.83        5.47        641        1.80        1.60        1.41        137   

R4

    11.29        0.19        0.46        0.65        (0.08                   (0.08     11.86        5.80        611        1.49        1.30        1.72        137   

R5

    11.32        0.23        0.45        0.68        (0.11                   (0.11     11.89        6.15        615        1.19        1.00        2.02        137   

Y

    11.34        0.28        0.42        0.70        (0.13                   (0.13     11.91        6.32        27,906        1.01        0.92        2.50        137   

For the Year Ended October 31, 2011

  

A

  $ 11.82      $ 0.18      $   (0.45   $   (0.27   $ (0.02   $   (0.25   $      $   (0.27   $   11.28        (2.37 )%    $ 3,629        1.69     1.34     1.50     112

C

    11.79        0.09        (0.44     (0.35            (0.25            (0.25     11.19        (3.10     859        2.37        2.02        0.74        112   

I

    11.84        0.22        (0.45     (0.23     (0.04     (0.25            (0.29     11.32        (2.07     621        1.34        1.00        1.85        112   

R3

    11.81        0.15        (0.45     (0.30            (0.25            (0.25     11.26        (2.67     597        2.05        1.60        1.22        112   

R4

    11.82        0.18        (0.45     (0.27     (0.01     (0.25            (0.26     11.29        (2.34     577        1.74        1.30        1.52        112   

R5

    11.84        0.22        (0.46     (0.24     (0.03     (0.25            (0.28     11.32        (2.09     580        1.44        1.00        1.82        112   

Y

    11.84        0.20        (0.41     (0.21     (0.04     (0.25            (0.29     11.34        (1.90     130,450        1.10        0.76        1.70        112   

For the Year Ended October 31, 2010(6)

  

A(10)

  $ 10.00      $ 0.02      $ 1.80      $ 1.82      $      $      $      $      $ 11.82        18.20 %(4)    $ 1,765        3.05 %(5)      1.27 %(5)      0.50 %(5)      47 %(4) 

C(10)

    10.00          (0.01     1.80        1.79                                    11.79        17.90 (4)      695        3.76 (5)      1.98 (5)      (0.28 )(5)      47 (4) 

I(10)

    10.00        0.03        1.81        1.84                                    11.84        18.40 (4)      601        2.75 (5)      0.97 (5)      0.67 (5)      47 (4) 

R3(10)

    10.00               1.81        1.81                                    11.81        18.10 (4)      609        3.45 (5)      1.62 (5)      0.02 (5)      47 (4) 

R4(10)

    10.00        0.01        1.81        1.82                                    11.82        18.20 (4)      591        3.15 (5)      1.32 (5)      0.33 (5)      47 (4) 

R5(10)

    10.00        0.03        1.81        1.84                                    11.84        18.40 (4)      592        2.85 (5)      1.02 (5)      0.63 (5)      47 (4) 

Y(10)

    10.00        0.03        1.81        1.84                                    11.84        18.40 (4)      1,777        2.75 (5)      0.97 (5)      0.68 (5)      47 (4) 

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements).
(4)  Not annualized.

 

The accompanying notes are an integral part of these financial statements.

 

 

  136  

 


Hartford Funds – International/Global Equity

Financial Highlights – (continued)

 

 

 

(5)  Annualized.
(6)  Net investment income (loss) per share amounts have been calculated using the SEC method.
(7)  Commenced operations on May 31, 2011.
(8)  During the year ended October 31, 2014, the Fund incurred $165.7 million in sales of securities held associated with the transition of assets from The Hartford Global Growth Fund, which merged into the Fund on April 7, 2014. These sales are excluded from the portfolio turnover rate calculation.
(9)  Commenced operations on November 7, 2014.
(10)  Commenced operations on May 28, 2010.
(11)  Included in this amount are tax distributions from capital of ($0.10).
(12)  Included in the amount are tax distributions from capital of ($0.09).
(13)  Included in the amount are tax distributions from capital of ($0.11).

 

The accompanying notes are an integral part of these financial statements.

 

 

137

 


Hartford Funds – International/Global Equity

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by The Board of Directors of the Companies (the “Directors”). Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014. Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

138

 


Hartford Funds – International/Global Equity

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

139

 


Hartford Funds – International/Global Equity

Directors and Officers (Unaudited) – (continued)

 

 

 

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds’ Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

140

 


Hartford Funds – International/Global Equity

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

Hartford Emerging Markets Equity Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through
April 30,
2015
  Annualized
expense
ratio
  Days
in
the
current
1/2 year
  Days in
the
full
year
 

Class A

$ 1,000.00    $ 1,053.10    $ 8.91    $ 1,000.00    $ 1,016.12    $ 8.75      1.75   181      365   

Class C

$ 1,000.00    $ 1,048.80    $ 12.65    $ 1,000.00    $ 1,012.45    $ 12.42      2.49   181      365   

Class I

$ 1,000.00    $ 1,055.20    $ 6.83    $ 1,000.00    $ 1,018.15    $ 6.71      1.34   181      365   

Class R3

$ 1,000.00    $ 1,052.20    $ 9.92    $ 1,000.00    $ 1,015.13    $ 9.74      1.95   181      365   

Class R4

$ 1,000.00    $ 1,054.10    $ 8.40    $ 1,000.00    $ 1,016.61    $ 8.25      1.65   181      365   

Class R5

$ 1,000.00    $ 1,054.80    $ 6.88    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class Y

$ 1,000.00    $ 1,055.50    $ 6.63    $ 1,000.00    $ 1,018.35    $ 6.51      1.30   181      365   

 

 

141

 


Hartford Funds – International/Global Equity

Expense Example (Unaudited) – (continued)

 

 

 

Hartford Global Capital Appreciation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,067.60    $ 6.41    $ 1,000.00    $ 1,018.60    $ 6.26      1.25   181      365   

Class B

$ 1,000.00    $ 1,064.20    $ 10.24    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class C

$ 1,000.00    $ 1,064.30    $ 9.93    $ 1,000.00    $ 1,015.17    $ 9.69      1.94   181      365   

Class I

$ 1,000.00    $ 1,070.00    $ 4.82    $ 1,000.00    $ 1,020.13    $ 4.71      0.94   181      365   

Class R3

$ 1,000.00    $ 1,067.40    $ 6.92    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,069.00    $ 5.39    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class R5

$ 1,000.00    $ 1,069.50    $ 4.77    $ 1,000.00    $ 1,020.18    $ 4.66      0.93   181      365   

Class Y

$ 1,000.00    $ 1,070.40    $ 4.21    $ 1,000.00    $ 1,020.73    $ 4.11      0.82   181      365   

Hartford Global Equity Income Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,049.20    $ 6.35    $ 1,000.00    $ 1,018.60    $ 6.26      1.25   181      365   

Class B

$ 1,000.00    $ 1,045.00    $ 10.14    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class C

$ 1,000.00    $ 1,044.80    $ 10.14    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class I

$ 1,000.00    $ 1,050.50    $ 4.88    $ 1,000.00    $ 1,020.03    $ 4.81      0.96   181      365   

Class R3

$ 1,000.00    $ 1,048.20    $ 7.36    $ 1,000.00    $ 1,017.60    $ 7.25      1.45   181      365   

Class R4

$ 1,000.00    $ 1,049.60    $ 5.84    $ 1,000.00    $ 1,019.09    $ 5.76      1.15   181      365   

Class R5

$ 1,000.00    $ 1,051.00    $ 4.32    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class Y

$ 1,000.00    $ 1,050.40    $ 4.07    $ 1,000.00    $ 1,020.83    $ 4.01      0.80   181      365   

Hartford International Capital Appreciation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,060.80    $ 7.41    $ 1,000.00    $ 1,017.60    $ 7.25      1.45   181      365   

Class B

$ 1,000.00    $ 1,058.00    $ 11.07    $ 1,000.00    $ 1,014.03    $ 10.84      2.17   181      365   

Class C

$ 1,000.00    $ 1,058.10    $ 11.23    $ 1,000.00    $ 1,013.89    $ 10.99      2.20   181      365   

Class I

$ 1,000.00    $ 1,063.10    $ 5.73    $ 1,000.00    $ 1,019.24    $ 5.61      1.12   181      365   

Class R3

$ 1,000.00    $ 1,060.80    $ 8.43    $ 1,000.00    $ 1,016.61    $ 8.25      1.65   181      365   

Class R4

$ 1,000.00    $ 1,062.00    $ 6.90    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R5

$ 1,000.00    $ 1,064.10    $ 5.37    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class Y

$ 1,000.00    $ 1,064.70    $ 5.12    $ 1,000.00    $ 1,019.84    $ 5.01      1.00   181      365   

 

 

142

 


Hartford Funds – International/Global Equity

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford International Growth Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,066.70    $ 7.64    $ 1,000.00    $ 1,017.41    $ 7.45      1.49   181      365   

Class B

$ 1,000.00    $ 1,062.70    $ 11.51    $ 1,000.00    $ 1,013.64    $ 11.23      2.25   181      365   

Class C

$ 1,000.00    $ 1,063.60    $ 11.26    $ 1,000.00    $ 1,013.89    $ 10.99      2.20   181      365   

Class I

$ 1,000.00    $ 1,068.30    $ 5.59    $ 1,000.00    $ 1,019.39    $ 5.46      1.09   181      365   

Class R3

$ 1,000.00    $ 1,066.20    $ 8.20    $ 1,000.00    $ 1,016.86    $ 8.00      1.60   181      365   

Class R4

$ 1,000.00    $ 1,068.40    $ 6.67    $ 1,000.00    $ 1,018.35    $ 6.51      1.30   181      365   

Class R5

$ 1,000.00    $ 1,069.90    $ 5.13    $ 1,000.00    $ 1,019.84    $ 5.01      1.00   181      365   

Class Y

$ 1,000.00    $ 1,069.20    $ 4.87    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

The Hartford International Opportunities Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,063.60    $ 6.09    $ 1,000.00    $ 1,018.89    $ 5.96      1.19   181      365   

Class B

$ 1,000.00    $ 1,059.40    $ 10.37    $ 1,000.00    $ 1,014.73    $ 10.14      2.03   181      365   

Class C

$ 1,000.00    $ 1,060.50    $ 9.81    $ 1,000.00    $ 1,015.27    $ 9.59      1.92   181      365   

Class I

$ 1,000.00    $ 1,066.30    $ 4.35    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class R3

$ 1,000.00    $ 1,062.60    $ 7.36    $ 1,000.00    $ 1,017.65    $ 7.20      1.44   181      365   

Class R4

$ 1,000.00    $ 1,064.40    $ 5.84    $ 1,000.00    $ 1,019.14    $ 5.71      1.14   181      365   

Class R5

$ 1,000.00    $ 1,065.40    $ 4.30    $ 1,000.00    $ 1,020.63    $ 4.21      0.84   181      365   

Class R6(1)

$ 1,000.00    $ 1,080.80    $ 3.58    $ 1,000.00    $ 1,020.12    $ 3.47      0.73   172      365   

Class Y

$ 1,000.00    $ 1,066.10    $ 3.79    $ 1,000.00    $ 1,021.13    $ 3.71      0.74   181      365   

 

(1)  Commenced operations on November 7, 2014.

The Hartford International Small Company Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,079.80    $ 7.68    $ 1,000.00    $ 1,017.41    $ 7.45      1.49   181      365   

Class B

$ 1,000.00    $ 1,075.80    $ 11.73    $ 1,000.00    $ 1,013.49    $ 11.38      2.28   181      365   

Class C

$ 1,000.00    $ 1,076.90    $ 11.33    $ 1,000.00    $ 1,013.89    $ 10.99      2.20   181      365   

Class I

$ 1,000.00    $ 1,082.80    $ 5.94    $ 1,000.00    $ 1,019.09    $ 5.76      1.15   181      365   

Class R3

$ 1,000.00    $ 1,080.00    $ 8.51    $ 1,000.00    $ 1,016.61    $ 8.25      1.65   181      365   

Class R4

$ 1,000.00    $ 1,081.60    $ 6.97    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R5

$ 1,000.00    $ 1,082.00    $ 5.42    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class Y

$ 1,000.00    $ 1,083.10    $ 5.11    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

 

 

143

 


Hartford Funds – International/Global Equity

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford International Value Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,090.30    $ 6.89    $ 1,000.00    $ 1,018.20    $ 6.66      1.33   181      365   

Class C

$ 1,000.00    $ 1,087.00    $ 10.35    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class I

$ 1,000.00    $ 1,092.80    $ 5.09    $ 1,000.00    $ 1,019.94    $ 4.91      0.98   181      365   

Class R3

$ 1,000.00    $ 1,089.40    $ 8.29    $ 1,000.00    $ 1,016.86    $ 8.00      1.60   181      365   

Class R4

$ 1,000.00    $ 1,090.70    $ 6.74    $ 1,000.00    $ 1,018.35    $ 6.51      1.30   181      365   

Class R5

$ 1,000.00    $ 1,092.20    $ 5.14    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

Class Y

$ 1,000.00    $ 1,092.90    $ 4.62    $ 1,000.00    $ 1,020.38    $ 4.46      0.89   181      365   

 

 

144

 


Hartford Funds – International/Global Equity

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: Actively trading investments may result in higher costs and higher taxable income.

Asset Allocation Strategy Risk: (Global Capital Appreciation Fund and International Capital Appreciation Fund only) The portfolio managers’ asset allocation strategy may not always work as intended, and asset allocation does not guarantee better performance or reduce the risk of investment loss.

Dividend Paying Security Investment Risk: (Global Equity Income Fund only) Dividends are not guaranteed and are subject to change. Dividend paying securities as a group can fall out of favor with the market, causing the Fund to underperform.

Growth Investing Risk: (International Growth Fund only) Growth investments can be volatile, and may fail to increase earnings or grow as quickly as anticipated. Growth-style investing falls in and out of favor, which may result in periods of underperformance.

Foreign Investment Risk: Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions.

Foreign Investment and Emerging Markets Risk: Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets.

Market, Selection and Strategy Risk: The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Mid-Cap Stock Risk: (International Opportunities Fund only) Mid-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Quantitative Investing Risk: (Emerging Markets Equity Fund only) The value of securities selected using quantitative analysis can react differently to issuer, political, market, and economic developments from the market as a whole or securities selected using only fundamental analysis. The factors used in quantitative analysis and the weight placed on those factors may not be predictive of a security’s value. In addition, factors that affect a security’s value can change over time and these changes may not be reflected in the quantitative model.

Small-Cap Stock Risk: (International Small Company Fund only) Small-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Small/Mid-Cap Stock Risk: (All Funds but Global Equity Income Fund, International Opportunities Fund and International Small Company Fund) Small- and mid-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Value Investing Risk: (Global Equity Income Fund and International Value Fund only) Value investments are considered to be undervalued, but they may never attain their potential value. Value-style investing falls in and out of favor, which may result in periods of underperformance.

 

 

145

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

 

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-GE15     6/15     117964     Printed in U.S.A.

hartfordfunds.com


LOGO


LOGO

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

 

 

LOGO

James Davey

President

Hartford Funds

 

1 The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Mixed-Asset Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

The Hartford Balanced Fund

  19   

The Hartford Balanced Income Fund

  32   

The Hartford Checks and Balances Fund

  58   

The Hartford Global All-Asset Fund

  62   

Hartford Multi-Asset Income Fund

  90   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  114   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  118   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  120   

Notes to Financial Statements (Unaudited)

  122   

Financial Highlights (Unaudited)

  152   

Directors and Officers (Unaudited)

  157   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  159   

Quarterly Portfolio Holdings Information (Unaudited)

  159   

Expense Examples (Unaudited)

  160   

Main Risks (Unaudited)

  163   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.


The Hartford Balanced Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

     6 Months1     1 Year     5 Years     10 Years  

Balanced A2

    3.89%        9.48%        9.91%        6.69%   

Balanced A3

    -1.82%        3.46%        8.67%        6.08%   

Balanced B2

    3.42%        8.55%        8.97%        5.98% 4 

Balanced B3

    -1.58%        3.55%        8.68%        5.98% 4 

Balanced C2

    3.51%        8.72%        9.13%        5.92%   

Balanced C3

    2.51%        7.72%        9.13%        5.92%   

Balanced I2,5

    3.94%        9.53%        9.92%        6.69%   

Balanced R32

    3.78%        9.23%        9.66%        6.56%   

Balanced R42

    3.91%        9.57%        9.99%        6.81%   

Balanced R52

    4.06%        9.83%        10.33%        7.08%   

Balanced Y2

    4.04%        9.90%        10.39%        7.15%   

Balanced Fund Blended Index

    3.48%        9.38%        10.28%        7.01%   

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index

    0.01%        0.02%        0.09%        1.46%   

Barclays Government/Credit Bond Index

    2.12%        4.44%        4.39%        4.75%   

S&P 500 Index

    4.40%        12.98%        14.33%        8.32%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 03/31/2015. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class I shares commenced operations on March 31, 2015. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges) which had different operating expenses.

Balanced Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 60% S&P 500 Index, 35% Barclays Government/Credit Bond Index and 5% Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index.

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury bills publicly issued in the U.S. domestic markets with maturities of 90 days or less that assumes reinvestment of all income.

Barclays Government/Credit Bond Index is an unmanaged, market-value-weighted index of all debt obligations of the U.S. Treasury and U.S. Government agencies (excluding mortgaged-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 chart and table do not reflect the deductions 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.

 

 

 

  2  

 


The Hartford Balanced Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Balanced Class A

     1.17%         1.17%   

Balanced Class B

     2.04%         2.27%   

Balanced Class C

     1.86%         1.86%   

Balanced Class I

     0.89%         0.89%   

Balanced Class R3

     1.40%         1.50%   

Balanced Class R4

     1.10%         1.16%   

Balanced Class R5

     0.80%         0.86%   

Balanced Class Y

     0.74%         0.74%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Karen H. Grimes, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

John C. Keogh

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Michael E. Stack, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Balanced Fund returned 3.89%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s custom benchmark (60% S&P 500 Index, 35% Barclays Government/Credit Bond Index, and 5% Bank of America Merrill Lynch 3-Month Treasury Bill Index), which returned 3.48% for the same period. The Fund outperformed the 3.50% average return of the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a group of funds that hold between 60%-80% in equity securities, with the remainder invested in bonds, cash, and cash equivalents. For the same period, the S&P 500 Index returned 4.40%, the Barclays Government/Credit Bond Index returned 2.12%, and the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index returned 0.01%.

Why did the Fund perform this way?

U.S. equities rose for the period, notwithstanding significant volatility. The S&P 500 Index finished 2014 with strong gains, retreated briefly, but then reached new all-time highs on March 2 and April 24, 2015. The period began strongly with stocks rallying in early November on the heels of positive economic and corporate data points, including a solid corporate earnings season and news that Republicans took control of the U.S. Senate. Stocks pulled back slightly near month-end, led by weakness in the Energy sector associated with the

significant decline in oil prices. In December, U.S. stocks began to rally again but ultimately fell 1.4% during the final two trading days of the year to end the month in the red. Stocks continued to fall in January 2015, which was the worst monthly return for U.S. stocks in a year. Despite a positive overall scorecard, earnings sentiment was fairly negative among many investors, in part due to a strengthening U.S. Dollar adversely affecting exports and making future growth difficult, and some accompanying high-profile earnings guidance disappointments. Equities rebounded in February, posting their best monthly gain since October 2011. The market pulled back again in early March as soft manufacturing data, potentially negative currency- and oil-related earnings, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18 Federal Open Market Committee statement underlined the U.S. Federal Reserve’s (Fed) hesitation to raise rates as U.S. domestic inflation remains subdued and other major central banks have an easing bias. This, as well as a positive earnings season, helped drive stronger returns in April allowing U.S. stocks to end the period with modest gains.

Returns varied noticeably by market-cap, as small- and mid-cap stocks outperformed large-cap stocks. Within the S&P 500 Index, Consumer Discretionary (+12%), Healthcare (+7%), and Information Technology (+6%) posted the largest gains, while the Energy (-5%), Utilities (-1%), and Industrials (+2%) sectors lagged on a relative basis.

 

 

 

  3  

 


The Hartford Balanced Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the Fed charted a course for policy normalization and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

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 period, both the equity and fixed income portions of the Fund outperformed their benchmarks. Asset allocation contributed positively to results relative to the custom benchmark as the Fund was overweight equities relative to the custom benchmark in an environment where equities outperformed.

Equity outperformance versus the custom benchmark was driven primarily by security selection within the Consumer Staples, Financials, and Information Technology sectors. An underweight to

Consumer Discretionary and security selection in Healthcare detracted from performance relative to the S&P 500 Index during the period. A modest cash position detracted in an upward trending market environment.

Top contributors to performance relative to the custom benchmark in the equity portion of the Fund during the period were Kraft Foods (Consumer Staples), Cisco Systems (Information Technology) and Analog Devices (Information Technology). Shares of Kraft Foods, a U.S.-based food manufacturer and processor, rose on the back of news that Heinz is to take over the U.S. food manufacturer in a deal which will create one of North America’s biggest food companies bringing together some of the best known household brands in the U.S., ranging from Heinz ketchup to Jell-O desserts. Shares of Cisco Systems, an internet networking and service provider, outperformed over the period after the company saw strength across several key markets and reported above consensus results. Shares of Analog, a semiconductor company focused on industrial, communications, and automotive end-markets, rose during the period as a result of the company’s growth profile that was higher than gross domestic product during the period, which investors viewed favorably. The Fund’s holdings in Apple (Information Technology) also contributed on an absolute basis.

During the period, stocks that detracted the most from returns relative to the custom benchmark in the equity portion of the Fund included Amazon.com (Consumer Discretionary), UCB SA (Healthcare) and EMC (Information Technology). Shares of Amazon.com, a U.S.-based global ecommerce company, rose during the period as the company disclosed better-than-expected profitability at Amazon Web Services, and announced first quarter earnings, revenues, and margins that exceeded consensus expectations. Not holding the strong performing benchmark constituent detracted from relative returns during the period. Shares of UCB SA, a Belgium-based health care company that specializes in diseases of the central nervous system and immunology, fell during the period due to a mixed earnings report and anticipated near-term volatility in pipeline therapies. Shares of EMC, the largest data storage provider in the U.S., declined during the period as the company faced increasing pressures from cloud-based computing which weighed on the stock. Gilead Sciences (Healthcare) and Exxon Mobil (Energy) were among the top detractors from absolute results during the period.

The fixed income portion of the Fund outperformed the Barclays Government/Credit Bond Index during the period. Security selection within, and an underweight to, investment grade corporates was the primary contributor to relative results, particularly within Industrials and Utilities. An out-of-benchmark allocation to agency pass-through mortgages also contributed to results relative to the Barclays Government/Credit Bond Index. An overweight allocation to high yield corporate credit, particularly Industrials, had a slightly negative impact on performance.

 

 

 

4

 


The Hartford Balanced Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.

What is the outlook?

We expect the global economy to gradually work its way free of the cycle of currency weakness, falling commodity prices, and deflationary fears. We believe that growth should begin to accelerate globally in late 2015.

On the equity side, we are cautiously optimistic as we enter the second quarter. We remain diligent in applying our process to find what we believe are quality companies with superior total return potential and discounted valuations. The Healthcare and Industrials sectors represented our largest sector overweight and underweight, respectively, at the end of the period.

On the fixed income side, we ended the quarter with a moderate bias towards economically sensitive securities, continuing to favor financial issuers within investment grade credit. We continued to hold an out-of-benchmark allocation to agency mortgage-backed securities. At the end of the period, the Fund’s equity exposure was at 68% compared to 60% in its custom benchmark and at the upper end of the Fund’s 50-70% range.

 

 

 

5

 


The Hartford Balanced Income Fund inception 07/31/2006

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income with growth of capital as a secondary objective.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years     

Since

Inception2

 

Balanced Income A3

     2.47%         5.49%         9.95%         7.51%   

Balanced Income A4

     -3.16%         -0.31%         8.71%         6.82%   

Balanced Income B3

     2.37%         5.37%         9.58%         6.96% 5 

Balanced Income B4

     -2.61%         0.37%         9.30%         6.96% 5 

Balanced Income C3

     2.08%         4.68%         9.15%         6.71%   

Balanced Income C4

     1.08%         3.68%         9.15%         6.71%   

Balanced Income I3

     2.60%         5.68%         10.24%         7.67%   

Balanced Income R33

     2.25%         5.12%         9.66%         7.50%   

Balanced Income R43

     2.39%         5.41%         9.97%         7.68%   

Balanced Income R53

     2.59%         5.74%         10.26%         7.84%   

Balanced Income R63,6

     2.62%         5.79%         10.43%         7.93%   

Balanced Income Y3

     2.62%         5.79%         10.43%         7.93%   

Balance Income Fund Index

     2.54%         6.79%         9.68%         6.93%   

Barclays Corporate Index

     2.34%         4.81%         5.96%         6.36%   

Barclays U.S. Corporate High Yield 2% Issuer Cap Index

     1.52%         2.59%         8.31%         8.59%   

JP Morgan Emerging Markets Bond Index Plus

     0.36%         4.19%         6.82%         7.52%   

Russell 1000 Value Index

     2.89%         9.31%         13.39%         6.50%   

 

1  Not Annualized
2  Inception: 07/31/2006
3  Without sales charge
4  With sales charge
5  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
6  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 2/26/10. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 5/28/10. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Balanced Income Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 45% Russell 1000 Value Index, 44% Barclays Corporate Index, 5.5% JP Morgan Emerging Markets Bond Index Plus and 5.5% Barclays U.S. Corporate High Yield Bond 2% Issuer Cap Index.

Barclays Corporate Index is an unmanaged index and is the Corporate component of the U.S. Credit Index within the Barclays U.S. Aggregate Bond Index.

 

 

 

  6  

 


The Hartford Balanced Income Fund inception 07/31/2006

 

 

 

Barclays U.S. Corporate High Yield Bond 2% Issuer Cap Index is the 2% issuer cap component of the Barclays U.S. High Yield Index, which 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 Securities and Exchange Commission.

JP Morgan Emerging Markets Bond Index Plus (EMBI+) is a market capitalization-weighted index that tracks returns for actively traded external debt instruments in emerging markets. It includes U.S. dollar denominated Brady bonds, Eurobonds, and traded loans issued by sovereign entities. Only issues with a current face amount outstanding of $500 million or more and a remaining life of greater than 2.5 years are eligible for inclusion.

Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

7

 


The Hartford Balanced Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Balanced Income Class A

     0.97%         0.97%   

Balanced Income Class B

     1.74%         1.82%   

Balanced Income Class C

     1.70%         1.70%   

Balanced Income Class I

     0.70%         0.70%   

Balanced Income Class R3

     1.24%         1.32%   

Balanced Income Class R4

     0.94%         1.02%   

Balanced Income Class R5

     0.69%         0.73%   

Balanced Income Class R6

     0.62%         0.62%   

Balanced Income Class Y

     0.62%         0.62%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Lucius T. Hill, III

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Scott I. St. John, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

W. Michael Reckmeyer, III, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Karen H. Grimes, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Ian R. Link, CFA

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Balanced Income Fund returned 2.47%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s custom benchmark (45% Russell 1000 Value Index, 44% Barclays Corporate Index, 5.5% Barclays U.S. Corporate High Yield Bond 2% Issuer Cap Index, and 5.5% JP Morgan Emerging Markets Bond Index Plus) which returned 2.54% for the same period. The Fund also underperformed the 2.68% average return of the Lipper Mixed-Asset Target Allocation Moderate Funds peer group, a group of funds that hold between 40-60% in equity securities and the remainder in bonds, cash, and cash equivalents. For the same period, the Barclays Corporate Index returned 2.34%, the Barclays U.S. Corporate High Yield Bond 2% Issuer Cap Index returned 1.52%, the JP Morgan Emerging Markets Bond Index Plus returned 0.36%, and the Russell 1000 Value Index returned 2.89%.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank (ECB) announced a

 

 

 

  8  

 


The Hartford Balanced Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

The Fund underperformed its custom benchmark primarily due to an overweight allocation to high yield in the fixed income portion of the Fund which more than offset strong security selection in the equity portion of the Fund during the period. Among the top detractors from relative returns in the equity portion of the Fund were National Bank of Canada (Financials), National Grid (Utilities), and UnitedHealth Group (Healthcare). Shares of National Bank of Canada fell during the period due to slower-than-anticipated economic growth and credit trends investors feared would weigh on earnings. Shares of National Grid, a U.K.-based regulatory utility with attractive U.S. transmission assets, declined during the period as an uptick in interest rates and improved risk sentiment caused investors to shift capital away from the traditionally defensive utility sector, which weighed on the

company’s stock price. Shares of UnitedHealth Group, a U.S.-based health insurance company, rose during the period as the company continued to benefit from the increased number of insured provided by the Affordable Care Act (ACA). Not owning the strong performing Russell 1000 Value Index constituent detracted on returns during the period. Exxon Mobil (Energy) and Johnson & Johnson (Healthcare) were also top detractors from absolute returns for the period.

Among the top contributors to returns relative to the custom benchmark in the equity portion of the Fund were Kraft Foods (Consumer Staples), Analog Devices (Information Technology), and Bank of America (Financials). Shares of Kraft Foods, a U.S.-based food manufacturer and processor, rose on the back of news that Heinz is to take over the U.S. food manufacturer in a deal which will create one of North America’s biggest food companies bringing together some of the best known household brands in the U.S., ranging from Heinz ketchup to Jell-O desserts. Shares of Analog, a semiconductor company focused on industrial, communications, and automotive end-markets, rose during the period as a result of the company’s growth profile that was higher than gross domestic product during the period, which investors viewed favorably. Shares of Bank of America, a global diversified bank, underperformed during the period as the company reported revenue which was below consensus expectations due to weak trading revenue. Not owning the weak performing benchmark-constituent contributed to returns during the period. Pfizer (Healthcare) was also a top contributor to absolute returns for the period.

The fixed income component of the Fund outperformed the Barclays Corporate Index for the period due primarily to strong security selection within investment grade credit. Security selection within emerging market debt and high yield credit debt also contributed to outperformance relative to the Barclays Corporate Index. The Fund’s duration and yield curve positioning detracted during the period due primarily to an underweight to the 5-year portion of the curve, as rates came down during the period. Modest exposure to high yield index derivatives had little impact on relative performance during the period.

Asset allocation between equities and fixed income contributed positively to relative results during the period due to an underweight to fixed income and an overweight to equities in an environment where equities outperformed the broad fixed income markets.

Over the period, the Fund made use of Treasury Futures to manage overall interest rate risk and yield curve exposures. The Fund also made use of Credit Default Swap Indexes (CDX) to help manage the portfolio’s asset allocation and overall level of credit risk. During the period, active duration and yield curve positioning detracted modestly excess returns. Conversely, the fund’s asset allocation and credit positioning were in aggregate additive to relative results.

 

 

 

9

 


The Hartford Balanced Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

What is the outlook?

Despite what we believe are unattractive valuations, we remain constructive on the U.S. Economic fundamentals continue to improve and the growth outlook remains positive. Top line revenue growth, stock specific risk opportunities, and returns on capital are leading the way in a relatively flat market year-to-date. We believe this is good for fundamental, active strategies. On the equity side, we believe the portfolio is well-positioned to benefit from continued economic improvements. Based on bottom-up stock decisions in the equity portion of the Fund, we ended the period most overweight Information Technology, Consumer Staples and Telecommunication Services. Our largest equity underweights at the end of the period were Financials, Consumer Discretionary, and Industrials relative to the Russell 1000 Value index. On the fixed income side, we ended the period with a moderate bias towards economically sensitive securities, continuing to favor financial and communication issuers within investment grade credit. At the end of the period, we were overweight high yield and held an out-of-Barclays Corporate Index allocation to non-agency mortgage-backed securities.

The equity and fixed income managers will continue to work collaboratively to make decisions regarding the Fund’s mix of equities and fixed income. At the end of the period, the Fund had a bias towards equities relative to its custom benchmark.

 

 

 

10

 


The Hartford Checks and Balances Fund inception 05/31/2007

 

(advised by Hartford Funds Management Company LLC)   Investment objective – The Fund seeks long-term capital appreciation and income.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

     6 Months1     1 Year     5 Years     Since
Inception2
 

Checks and Balances A3

    3.65%        8.44%        9.83%        5.72%   

Checks and Balances A4

    -2.05%        2.48%        8.60%        4.97%   

Checks and Balances B3

    3.26%        7.61%        8.93%        4.88%   

Checks and Balances B4

    -1.37%        2.80%        8.65%        4.88%   

Checks and Balances C3

    3.30%        7.70%        9.01%        4.94%   

Checks and Balances C4

    2.37%        6.74%        9.01%        4.94%   

Checks and Balances I3

    3.83%        8.77%        10.11%        5.99%   

Checks and Balances R33

    3.49%        8.08%        9.44%        5.43%   

Checks and Balances R43

    3.63%        8.44%        9.79%        5.70%   

Checks and Balances R53

    3.77%        8.70%        10.10%        5.96%   

Barclays U.S. Aggregate Bond Index

    2.06%        4.46%        4.12%        5.09%   

Checks and Balances Fund Blended Index

    3.81%        10.11%        11.08%        6.26%   

Russell 3000 Index

    4.74%        12.74%        14.33%        6.43%   

S&P 500 Index

    4.40%        12.98%        14.33%        6.25%   

 

1  Not Annualized
2  Inception: 05/31/2007
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 2/29/08. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 8/29/08. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Checks and Balances Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 33.3% Barclays U.S. Aggregate Bond Index, 33.4% Russell 3000 Index and 33.3% S&P 500 Index.

Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market 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 chart and table do not reflect the deductions 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.

 

 

 

  11  

 


The Hartford Checks and Balances Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Checks and Balances Class A

     1.00%         1.00%   

Checks and Balances Class B

     1.80%         1.80%   

Checks and Balances Class C

     1.75%         1.75%   

Checks and Balances Class I

     0.75%         0.75%   

Checks and Balances Class R3

     1.36%         1.36%   

Checks and Balances Class R4

     1.06%         1.06%   

Checks and Balances Class R5

     0.76%         0.76%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Vernon J. Meyer, CFA

Managing Director and Chief Investment Officer

Hartford Funds Management Company

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Checks and Balances Fund returned 3.65%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s blended benchmark (33.3% Barclays U.S. Aggregate Bond Index, 33.4% Russell 3000 Index, 33.3% S&P 500 Index) which returned 3.81% for the same period. In comparison, the Barclays U.S. Aggregate Bond Index, the S&P 500 Index, and the Russell 3000 Index returned 2.06%, 4.40% and 4.74%, respectively, for the same period. The Fund outperformed the 3.50% average return of the Lipper Mixed-Asset Target Allocation Growth Funds average.

Why did the Fund perform this way?

The Fund makes equal one-third allocations of its assets to Class Y shares of certain Hartford Mutual Funds (“Underlying Funds”): The Hartford Capital Appreciation Fund, The Hartford Dividend and Growth Fund, and The Hartford Total Return Bond Fund. The Underlying Funds may invest in a wide variety of instruments that primarily include U.S. and foreign equity securities and fixed income and money market securities. The Fund is not actively managed, and the Fund’s assets will be rebalanced back to one-third in each Underlying Fund as soon as reasonably practicable whenever the Fund’s investment in any single Underlying Fund deviates from the target allocation by more than 5%.

The Fund’s relative performance benefited most from the performance of The Hartford Capital Appreciation Fund. The return of The Hartford Dividend and Growth Fund detracted most from relative performance.

Derivatives were not used in this Fund and did not affect performance during the period.

What is the outlook?

The Fund will continue to make equal allocations of its assets to the three Underlying Funds. Please refer to www.hartfordfunds.com for the shareholder report of each Underlying Fund.

 

 

 

  12  

 


The Hartford Global All-Asset Fund inception 05/28/2010

 

(sub-advised by Hartford Investment Management Company LLP)   Investment objective – The Fund seeks to provide long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Global All-Asset A3

     4.09%         4.17%         7.01%   

Global All-Asset A4

     -1.63%         -1.56%         5.79%   

Global All-Asset C3

     3.73%         3.32%         6.21%   

Global All-Asset C4

     2.83%         2.42%         6.21%   

Global All-Asset I3

     4.24%         4.49%         7.30%   

Global All-Asset R33

     4.00%         3.92%         6.74%   

Global All-Asset R43

     4.14%         4.22%         7.06%   

Global All-Asset R53

     4.28%         4.44%         7.33%   

Global All-Asset Y3

     4.24%         4.49%         7.36%   

Barclays Global Aggregate Bond Hedged USD Index

     2.75%         6.05%         4.31%   

Global All-Asset Fund Blended Index

     4.33%         7.34%         9.47%   

MSCI All Country World Index

     5.24%         8.01%         12.58%   

 

1  Not Anuualized
2  Inception: 05/28/2010
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Barclays Global Aggregate Bond Hedged USD Index represents the global investment-grade fixed-income markets.

Global All-Asset Fund Blended Index is calculated by Hartford Funds Management Company, LLC (HFMC) and represents the weighted return of 40% Barclays Global Aggregate USD Hedged Index and 60% MSCI All Country World Index.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  13  

 


The Hartford Global All-Asset Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Global All-Asset Class A

     1.30%         1.45%   

Global All-Asset Class C

     2.05%         2.18%   

Global All-Asset Class I

     1.05%         1.15%   

Global All-Asset Class R3

     1.55%         1.78%   

Global All-Asset Class R4

     1.25%         1.49%   

Global All-Asset Class R5

     1.00%         1.17%   

Global All-Asset Class Y

     0.95%         1.07%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Consolidated Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Scott M. Elliott

Senior Managing Director and Asset Allocation Portfolio Manager

Wellington Management Company LLP

Brian M. Garvey

Senior Managing Director and Asset Allocation Portfolio Manager

Wellington Management Company LLP

Mark T. Lynch

Senior Managing Director, Global Industry Analyst and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Global All-Asset Fund returned 4.09%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s custom benchmark (60% MSCI All Country World Index, 40% Barclays Global Aggregate Bond Hedged USD Index), which returned 4.33% for the same period. The Fund outperformed the 2.18% average return of the Lipper Flexible Portfolio Funds peer group, a group of funds that allocate their investments across various asset classes, including domestic common stocks, bonds, and money market instruments, with a focus on total return. For the same period, the Barclays Global Aggregate Bond Hedged USD Index returned 2.75% and the MSCI All Country World Index returned 5.24%.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe

showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank (ECB) announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions making future growth difficult, such as weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April pushed the country into recession during the third quarter of 2014. The U.S.

 

 

 

  14  

 


The Hartford Global All-Asset Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

economy’s positive growth trend remained in place at the beginning of 2015 before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the quarter as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve. Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

As part of the asset allocation decision making process, the Fund uses global thematic ideas based on macroeconomic trends derived from Wellington Management’s research. From a global thematic perspective, the Fund’s allocation to equities in India and absolute return fixed income were the top detractors from relative results. Underperformance of Indian equities was primarily driven by exposures to the Consumer Discretionary, Information Technology, and Energy sectors. Within absolute return fixed income exposures, both bond and currency positions detracted from results, with currency positions contributing to a majority of negative returns. The primary detractors were long positions in the Canadian dollar and Australian dollar versus the U.S. dollar. In addition, the Fund’s allocation to emerging markets debt detracted from relative results.

The top global thematic contributors were from allocations within Asia and Europe. Outperformance was driven by our long exposure to Asian equities, in particular, exposures within the Technology and Consumer sectors. Our short exposure via swaps on equity indexes in Australia, Chile, and South Africa modestly contributed to results. In aggregate, both equity and bond exposures contributed to the outperformance of our investment ideas within Europe. As a part of the theme we implemented a negative view on the euro currency due to the fact that the ECB is actively depreciating the euro as a part of its reflation policy. This active currency management significantly contributed to our outperformance during the period. Currency will remain a key consideration across our universe, as both a source of return and risk The Fund also benefitted from non-thematic exposures during the period, primarily its strategic allocation to stock/securities included in Wellington’s Global Industry Analysts’ best ideas portfolio. Outperformance within this allocation was due to strong security selection within Consumer Staples, Information Technology, and Materials which offset weaker selection within Financials.

Derivatives are used by the Fund primarily to gain exposure to different asset classes and these investments had a positive impact on performance during the period, including as noted above.

What is the outlook?

The fundamental picture around a number of our investment themes seems to be on an improving trend, particularly economic data out of Europe. At a macro level, a number of important growth drivers are now in place such as lower oil prices, a weaker currency, and stimulus from the ECB. We believe that the consensus view on European growth is too pessimistic, creating significant upside potential for European assets.

Asia also appears to be on firmer footing as fears around Chinese growth and financial sector vulnerability abate. We have exposure to Asian consumer and technology companies that we believe are well positioned to benefit from the ongoing rebalancing of the Chinese economy away from heavy investment in infrastructure.

From an equity perspective, we ended the period overweight European equities and emerging market equities, primarily those of South Korea and India, and underweight U.S. equities. Within the fixed income portion of the Fund, we ended the period overweight global inflation-linked bonds, emerging market debt, and bank loans, and underweight credit, U.S. Treasuries, and mortgage backed securities.

 

 

 

15

 


Hartford Multi-Asset Income Fund inception 04/30/2014

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide a high level of current income consistent with growth of capital.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Multi-Asset Income A3

     1.85%         2.67%         2.67%   

Multi-Asset Income A4

     -2.73%         -1.95%         -1.95%   

Multi-Asset Income C3

     1.47%         1.85%         1.85%   

Multi-Asset Income C4

     0.48%         0.87%         0.87%   

Multi-Asset Income I3

     1.98%         2.91%         2.91%   

Multi-Asset Income R33

     1.69%         2.34%         2.34%   

Multi-Asset Income R43

     1.84%         2.64%         2.64%   

Multi-Asset Income R53

     1.93%         2.83%         2.83%   

Multi-Asset Income Y3

     1.98%         2.94%         2.94%   

BofAML Global High Yield Constrained Index

     -0.19%         -1.05%         -1.05%   

Credit Suisse Leveraged Loan Index

     2.31%         3.52%         3.52%   

JP Morgan Emerging Markets Bond Index Plus

     0.36%         4.19%         4.19%   

MSCI All Country World Index

     5.24%         8.01%         8.01%   

Multi-Asset Income Fund blended Index

     2.16%         3.96%         3.96%   

 

1  Not Annualized
2  Inception: 04/30/2014. Cumulative returns not annualized.
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Bank of America Merrill Lynch Global High Yield Constrained Index tracks the performance of below investment grade bonds of corporate issuers domiciled in countries with an investment grade foreign currency long-term debt rating (based on a composite of Moody’s Investors Service, Inc. and Standard and Poor’s Ratings Services). The index is weighted by outstanding issuance, but constrained such that the percentage of any one issuer may not represent more than 2% of the Index.

Credit Suisse Leveraged Loan Index is a market-value weighted index designed to represent the investable universe of the U.S. dollar-denominated leveraged loan market.

JP Morgan Emerging Markets Bond Index Plus (EMBI+) is a market capitalization-weighted index that tracks returns for actively traded external debt instruments in emerging markets. It includes U.S. dollar denominated Brady bonds, Eurobonds, and traded loans issued by sovereign entities. Only issues with a current face amount outstanding of $500 million or more and a remaining life of greater than 2.5 years are eligible for inclusion.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

Multi-Asset Income Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 30% MSCI All Country World Index, 23.4% Bank of America Merrill Lynch Global High Yield Constrained Index, 23.3% JP Morgan Emerging Markets Bond Index Plus and 23.3% Credit Suisse Leveraged Loan Index.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  16  

 


Hartford Multi-Asset Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Multi-Asset Income Class A

     1.12%         1.17%   

Multi-Asset Income Class C

     1.87%         1.93%   

Multi-Asset Income Class I

     0.87%         0.93%   

Multi-Asset Income Class R3

     1.42%         1.62%   

Multi-Asset Income Class R4

     1.12%         1.32%   

Multi-Asset Income Class R5

     0.93%         1.02%   

Multi-Asset Income Class Y

     0.83%         0.88%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the

Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Richard P. Meagher, CFA

Managing Director, Asset Allocation Strategist and Portfolio Manager

Wellington Management Company LLP

David J. Elliott, CFA

Managing Director, Co-Director of Quantitative Investment Management and Portfolio Manager

Wellington Management Company LLP

Campe Goodman, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of Hartford Multi-Asset Income Fund returned 1.85%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s blended benchmark (30% MSCI All Country World Index, 23.4% Bank of America Merrill Lynch Global High Yield Constrained Index, 23.3% JP Morgan Emerging Markets Bond Index Plus, and 23.3% Credit Suisse Leveraged Loan Index) which returned 2.16% for the same period. The Fund also underperformed the 2.00% average return of the Lipper Mixed-Asset Target Allocation Conservative Funds category, a group of funds with equity weights of 20%-40%. For the same period, the MSCI All Country World Index returned 5.24%, the Bank of America Merrill Lynch Global High Yield Constrained Index returned -0.19%, the JP Morgan Emerging Markets Bond Index Plus returned 0.36%, and the Credit Suisse Leveraged Loan Index returned 2.31%.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates

for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face headwinds from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of 2015 before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

 

 

 

  17  

 


Hartford Multi-Asset Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Global government bond prices gained over the quarter as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve. Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme, and despite continued uncertainty surrounding the timing of a rate rise by the Fed, many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

The Fund’s underweight allocation to global-income low volatility equities along with an opportunistic allocation to Master Limited Partnerships (MLPs) detracted from returns during the period. While security selection within the MLPs was strong, the sector largely underperformed the rest of the opportunity set primarily based on the energy market selloff during the end of the fourth quarter.

Within fixed income, security selection within high yield (including an allocation to contingent convertibles – CoCos) along with an underweight to and security selection within emerging market debt contributed to returns relative to the blended benchmark during the period. Additionally, an opportunistic allocation to Greek government bonds and our decision to hedge some of our Euro and Yen exposure were among the largest contributors to relative performance.

The Fund tactically managed exposures to high yield credit, investment grade credit and commercial mortgage backed securities through credit default swap index exposure, which in aggregate added to overall performance.

What is the outlook?

Continued declines in government bond yields coupled with some relative weakness in income oriented equities have made it a challenging environment for income investors. We continue to believe that a multi asset approach that seeks out the most attractive income opportunities can help achieve income objectives.

We retain a constructive view on capital markets and risk assets. At the end of the period, while we were slightly underweight equities, we maintained our higher beta positioning given our credit oriented fixed income exposure within MSC (where we are overweight bank loans and underweight emerging market debt). We also maintained our opportunistic allocations to MLPs, which we believe continue to offer attractive income opportunities. At the end of the period, the Fund’s fixed income allocation was at 71%, slightly above the Fund’s 70% strategic allocation.

 

 

 

18

 


The Hartford Balanced Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*

   Percentage of
Net Assets
 

Aaa/AAA

     17.0

Aa/AA

     2.6   

A

     5.9   

Baa/BBB

     3.9   

Not Rated

     0.0   

Non-Debt Securities and Other Short-Term Instruments

     70.2   

Other Assets & Liabilities

     0.4   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category

   Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     68.0

Preferred Stocks

     0.3   
  

 

 

 

Total

     68.3
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     1.1

Corporate Bonds

     11.0   

Foreign Government Obligations

     0.1   

Municipal Bonds

     0.9   

U.S. Government Agencies

     1.6   

U.S. Government Securities

     14.2   
  

 

 

 

Total

     28.9
  

 

 

 

Short-Term Investments

     1.9

Discount Notes

     0.5   

Other Assets & Liabilities

     0.4   
  

 

 

 

Total

     100.0
  

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

19

 


The Hartford Balanced Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
COMMON STOCKS - 68.0%  
          Automobiles & Components - 0.6%  
    277,800     

Ford Motor Co.

  $ 4,389,240   
     

 

 

 
          Banks - 7.3%  
    170,300     

Citigroup, Inc.

    9,080,396   
    255,200     

JP Morgan Chase & Co.

    16,143,952   
    44,210     

M&T Bank Corp.

    5,290,611   
    104,200     

PNC Financial Services Group, Inc.

    9,558,266   
    297,500     

Wells Fargo & Co.

    16,392,250   
     

 

 

 
        56,465,475   
     

 

 

 
          Capital Goods - 4.3%  
    64,000     

3M Co.

    10,008,960   
    95,200     

Eaton Corp. plc

    6,543,096   
    119,300     

Fortune Brands Home & Security, Inc.

    5,320,780   
    96,300     

Ingersoll-Rand plc

    6,340,392   
    47,200     

United Technologies Corp.

    5,369,000   
     

 

 

 
        33,582,228   
     

 

 

 
          Consumer Durables & Apparel - 0.5%  
    35,500     

PVH Corp.

    3,668,925   
     

 

 

 
          Consumer Services - 0.5%  
    39,800     

McDonald’s Corp.

    3,842,690   
     

 

 

 
          Diversified Financials - 3.4%  
    37,700     

Ameriprise Financial, Inc.

    4,723,056   
    23,400     

BlackRock, Inc.

    8,516,196   
    31,200     

Goldman Sachs Group, Inc.

    6,128,304   
    170,200     

Invesco Ltd.

    7,049,684   
     

 

 

 
        26,417,240   
     

 

 

 
          Energy - 5.8%  
    67,300     

Anadarko Petroleum Corp.

    6,332,930   
    60,000     

Chevron Corp.

    6,663,600   
    54,600     

EOG Resources, Inc.

    5,402,670   
    100,600     

Exxon Mobil Corp.

    8,789,422   
    109,600     

Halliburton Co.

    5,364,920   
    183,000     

Marathon Oil Corp.

    5,691,300   
    54,600     

Occidental Petroleum Corp.

    4,373,460   
    95,500     

Southwestern Energy Co. (1)

    2,676,865   
     

 

 

 
        45,295,167   
     

 

 

 
          Food & Staples Retailing - 1.2%  
    92,300     

CVS Health Corp.

    9,164,467   
     

 

 

 
          Food, Beverage & Tobacco - 3.3%  
    33,400     

Anheuser-Busch InBev N.V. ADR

    4,009,336   
    77,726     

British American Tobacco plc

    4,270,545   
    126,300     

Coca-Cola Co.

    5,122,728   
    75,480     

Kraft Foods Group, Inc.

    6,396,930   
    142,100     

Mondelez International, Inc. Class A

    5,452,377   
     

 

 

 
        25,251,916   
     

 

 

 
          Health Care Equipment & Services - 3.1%  
    66,400     

Baxter International, Inc.

    4,564,336   
    154,352     

Medtronic plc

    11,491,506   
    70,500     

UnitedHealth Group, Inc.

    7,853,700   
     

 

 

 
        23,909,542   
     

 

 

 
          Household & Personal Products - 0.5%  
    52,700     

Estee Lauder Cos., Inc. Class A

    4,283,983   
     

 

 

 
          Insurance - 2.5%  
    110,100     

American International Group, Inc.

    6,197,529   
    167,200     

Marsh & McLennan Cos., Inc.

    9,389,952   

Shares or Principal Amount

  Market Value*  
COMMON STOCKS - 68.0% - (continued)  
          Insurance - 2.5% - (continued)  
    108,473     

Unum Group

  $ 3,705,438   
     

 

 

 
        19,292,919   
     

 

 

 
          Materials - 1.9%  
    123,000     

Dow Chemical Co.

    6,273,000   
    101,000     

International Paper Co.

    5,425,720   
    61,900     

Nucor Corp.

    3,024,434   
     

 

 

 
        14,723,154   
     

 

 

 
          Media - 3.2%  
    78,800     

CBS Corp. Class B

    4,895,844   
    111,000     

Comcast Corp. Class A

    6,411,360   
    115,700     

Thomson Reuters Corp.

    4,750,642   
    78,500     

Walt Disney Co.

    8,534,520   
     

 

 

 
        24,592,366   
     

 

 

 
          Pharmaceuticals, Biotechnology & Life Sciences - 9.3%  
    16,600     

Actavis plc (1)

    4,695,476   
    76,200     

Agilent Technologies, Inc.

    3,152,394   
    45,300     

Amgen, Inc.

    7,153,323   
    81,500     

AstraZeneca plc ADR

    5,581,120   
    159,800     

Bristol-Myers Squibb Co.

    10,184,054   
    91,740     

Gilead Sciences, Inc. (1)

    9,220,788   
    230,800     

Merck & Co., Inc.

    13,746,448   
    21,144     

Roche Holding AG

    6,050,463   
    92,539     

UCB S.A.

    6,665,847   
    42,430     

Vertex Pharmaceuticals, Inc. (1)

    5,230,770   
     

 

 

 
        71,680,683   
     

 

 

 
          Real Estate - 0.2%  
    77,600     

Paramount Group, Inc. REIT

    1,421,632   
     

 

 

 
          Retailing - 2.7%  
    2,006,600     

Allstar Co. (1)(2)(3)

    2,066,798   
    77,400     

Dollar General Corp.

    5,627,754   
    77,500     

Home Depot, Inc.

    8,290,950   
    69,300     

Nordstrom, Inc.

    5,236,308   
     

 

 

 
        21,221,810   
     

 

 

 
          Semiconductors & Semiconductor Equipment - 4.2%  
    118,400     

Analog Devices, Inc.

    7,321,856   
    284,800     

Intel Corp.

    9,270,240   
    456,700     

Marvell Technology Group Ltd.

    6,398,367   
    286,300     

Maxim Integrated Products, Inc.

    9,399,229   
     

 

 

 
        32,389,692   
     

 

 

 
          Software & Services - 6.9%  
    80,100     

Accenture plc Class A

    7,421,265   
    98,300     

eBay, Inc. (1)

    5,726,958   
    20,957     

Google, Inc. Class C (1)

    11,261,233   
    310,500     

Microsoft Corp.

    15,102,720   
    143,700     

Oracle Corp.

    6,268,194   
    291,830     

Symantec Corp.

    7,273,863   
     

 

 

 
        53,054,233   
     

 

 

 
          Technology Hardware & Equipment - 4.5%  
    150,300     

Apple, Inc.

    18,810,045   
    559,200     

Cisco Systems, Inc.

    16,121,736   
     

 

 

 
        34,931,781   
     

 

 

 
          Telecommunication Services - 0.4%  
    58,029     

Verizon Communications, Inc.

    2,926,983   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

20

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
COMMON STOCKS - 68.0% - (continued)  
            Transportation - 0.6%  
    46,600     

Union Pacific Corp.

  $ 4,950,318   
     

 

 

 
            Utilities - 1.1%  
    87,500     

NextEra Energy, Inc.

    8,831,375   
     

 

 

 
   

Total Common Stocks
(cost $367,846,897)

  $ 526,287,819   
     

 

 

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.1%  
            Asset-Backed - Automobile - 0.4%  
   

AmeriCredit Automobile Receivables Trust

 
  $        130,000     

2.72%, 09/09/2019

  $ 133,140   
   

First Investors Automotive Owner Trust

 
    320,000     

1.67%, 11/16/2020 (4)

    319,829   
   

Ford Credit Automotive Owner Trust

 
    100,000     

1.36%, 10/15/2018

    100,324   
   

Hyundai Automotive Receivables Trust

 
    100,000     

2.48%, 03/15/2019

    102,843   
   

Prestige Automotive Receivables Trust

 
    120,000     

1.91%, 04/15/2020 (4)

    120,119   
   

Santander Drive Automotive Receivables Trust

 
    365,000     

1.97%, 11/15/2019

    366,400   
    742,000     

2.25%, 06/17/2019

    751,052   
    85,000     

2.33%, 11/15/2019

    86,089   
    491,000     

2.36%, 04/15/2020

    495,067   
    140,000     

2.57%, 03/15/2019

    142,735   
   

Westlake Automobile Receivables Trust

 
    360,000     

0.97%, 10/16/2017 (4)

    360,024   
     

 

 

 
        2,977,622   
     

 

 

 
            Asset-Backed - Finance & Insurance - 0.4%  
   

Ally Master Owner Trust

 
    900,000     

1.54%, 09/15/2019

    903,342   
    975,000     

1.60%, 10/15/2019

    979,212   
   

Ford Credit Floorplan Master Owner Trust

 
    100,000     

2.09%, 03/15/2022 (4)

    99,940   
   

SBA Tower Trust

 
    310,000     

2.90%, 10/15/2044 (4)

    312,876   
   

Springleaf Funding Trust

 
    385,000     

3.16%, 11/15/2024 (4)

    388,595   
    170,000     

3.48%, 05/15/2028 (4)

    170,662   
     

 

 

 
        2,854,627   
     

 

 

 
            Commercial Mortgage-Backed Securities - 0.3%  
   

Hilton USA Trust

 
    345,000     

2.66%, 11/05/2030 (4)

    344,496   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    475,000     

5.89%, 02/12/2049 (5)

    509,174   
   

LB-UBS Commercial Mortgage Trust

 
    167,867     

6.32%, 04/15/2041 (5)

    183,556   
   

Merrill Lynch/Countrywide Commercial Mortgage Trust

 
    731,375     

5.81%, 06/12/2050 (5)

    785,914   
   

SFAVE Commercial Mortgage Securities Trust

 
    540,000     

4.14%, 01/05/2035 (4)(5)

    554,640   

Shares or Principal Amount

  Market Value*  
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.1% - (continued)  
            Commercial Mortgage-Backed Securities - 0.3% - (continued)  
   

Wachovia Bank Commercial Mortgage Trust

 
  $        451,288     

5.31%, 11/15/2048

  $ 472,251   
     

 

 

 
        2,850,031   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $8,662,449)

  $ 8,682,280   
     

 

 

 
     
CORPORATE BONDS - 11.0%  
            Aerospace/Defense - 0.0%  
   

United Technologies Corp.

 
    65,000     

3.10%, 06/01/2022

  $ 67,253   
     

 

 

 
            Agriculture - 0.2%  
   

Altria Group, Inc.

 
    330,000     

4.50%, 05/02/2043

    332,588   
    420,000     

4.75%, 05/05/2021

    468,441   
   

BAT International Finance plc

 
    565,000     

3.25%, 06/07/2022 (4)

    577,731   
   

Philip Morris International, Inc.

 
    300,000     

2.63%, 03/06/2023

    296,410   
     

 

 

 
        1,675,170   
     

 

 

 
            Airlines - 0.2%  
   

Continental Airlines, Inc.

 
    610,425     

5.98%, 10/19/2023

    686,728   
   

Southwest Airlines Co.

 
    400,000     

5.75%, 12/15/2016

    428,462   
    501,495     

6.15%, 02/01/2024

    576,719   
     

 

 

 
        1,691,909   
     

 

 

 
            Auto Manufacturers - 0.3%  
   

Daimler Finance NA LLC

 
    1,000,000     

2.63%, 09/15/2016 (4)

    1,022,345   
   

Ford Motor Credit Co. LLC

 
    615,000     

2.38%, 03/12/2019

    621,388   
   

Nissan Motor Acceptance Corp.

 
    700,000     

1.80%, 03/15/2018 (4)

    705,585   
     

 

 

 
        2,349,318   
     

 

 

 
            Beverages - 0.2%  
   

Anheuser-Busch InBev Worldwide, Inc.

 
    610,000     

7.75%, 01/15/2019

    734,947   
   

Coca-Cola Femsa S.A.B. de C.V.

 
    222,000     

2.38%, 11/26/2018

    226,378   
    250,000     

3.88%, 11/26/2023

    266,593   
   

Heineken N.V.

 
    245,000     

2.75%, 04/01/2023 (4)

    243,430   
    10,000     

4.00%, 10/01/2042 (4)

    9,691   
   

Molson Coors Brewing Co.

 
    12,000     

2.00%, 05/01/2017

    12,140   
    180,000     

3.50%, 05/01/2022

    184,768   
    85,000     

5.00%, 05/01/2042

    88,468   
     

 

 

 
        1,766,415   
     

 

 

 
            Biotechnology - 0.1%  
   

Celgene Corp.

 
    55,000     

2.25%, 05/15/2019

    55,545   
    125,000     

3.63%, 05/15/2024

    129,371   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  21  

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Biotechnology - 0.1% - (continued)  
   

Gilead Sciences, Inc.

 
  $        180,000     

3.50%, 02/01/2025

  $ 186,682   
    195,000     

3.70%, 04/01/2024

    205,098   
    75,000     

4.50%, 02/01/2045

    79,008   
     

 

 

 
        655,704   
     

 

 

 
            Chemicals - 0.0%  
   

LyondellBasell Industries

 
    250,000     

4.63%, 02/26/2055

    240,935   
   

Monsanto Co.

 
    65,000     

4.70%, 07/15/2064

    65,737   
     

 

 

 
        306,672   
     

 

 

 
            Commercial Banks - 2.9%  
   

American Express Centurion Bank

 
    1,200,000     

6.00%, 09/13/2017

    1,326,025   
   

Bank of America Corp.

 
    750,000     

4.20%, 08/26/2024

    757,695   
    560,000     

5.00%, 05/13/2021

    627,419   
    1,200,000     

5.42%, 03/15/2017

    1,274,623   
   

Bank of New York Mellon Corp.

 
    440,000     

2.15%, 02/24/2020

    441,717   
    200,000     

3.00%, 02/24/2025

    200,654   
   

Barclays Bank plc

 
    200,000     

2.50%, 02/20/2019

    203,832   
    350,000     

3.75%, 05/15/2024

    363,710   
    150,000     

6.05%, 12/04/2017 (4)

    164,415   
   

BNP Paribas S.A.

 
    425,000     

2.40%, 12/12/2018

    433,051   
    65,000     

3.25%, 03/03/2023

    65,916   
   

BPCE S.A.

 
    375,000     

2.50%, 12/10/2018

    384,447   
    250,000     

4.00%, 04/15/2024

    262,666   
    200,000     

5.15%, 07/21/2024 (4)

    210,073   
   

Capital One Financial Corp.

 
    200,000     

3.20%, 02/05/2025

    196,847   
    615,000     

3.75%, 04/24/2024

    635,888   
   

Citigroup, Inc.

 
    255,000     

2.50%, 07/29/2019

    257,374   
    300,000     

4.95%, 11/07/2043

    332,353   
    140,000     

5.30%, 05/06/2044

    151,575   
    300,000     

6.13%, 05/15/2018

    337,180   
    105,000     

8.13%, 07/15/2039

    160,111   
   

Credit Agricole S.A.

 
    405,000     

2.50%, 04/15/2019 (4)

    411,983   
   

Credit Suisse New York

 
    250,000     

2.30%, 05/28/2019

    251,619   
    335,000     

3.63%, 09/09/2024

    342,982   
   

Fifth Third Bancorp

 
    450,000     

2.88%, 10/01/2021

    454,233   
   

Goldman Sachs Group, Inc.

 
    655,000     

2.38%, 01/22/2018

    666,605   
    275,000     

3.63%, 01/22/2023

    282,434   
    250,000     

3.70%, 08/01/2015

    251,882   
    595,000     

5.63%, 01/15/2017

    634,675   
    470,000     

6.25%, 02/01/2041

    593,276   
   

HSBC Holdings plc

 
    650,000     

6.10%, 01/14/2042

    844,451   
   

HSBC USA Capital Trust III

 
    250,000     

7.75%, 11/15/2026

    251,063   

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Commercial Banks - 2.9% - (continued)  
   

Huntington National Bank

 
  $        330,000     

2.40%, 04/01/2020

  $ 331,000   
   

ING Bank N.V.

 
    900,000     

3.75%, 03/07/2017 (4)

    939,624   
   

JP Morgan Chase & Co.

 
    650,000     

3.25%, 09/23/2022

    659,561   
    180,000     

3.38%, 05/01/2023

    179,551   
    230,000     

5.40%, 01/06/2042

    269,065   
    100,000     

6.30%, 04/23/2019

    115,481   
   

Korea Development Bank

 
    550,000     

2.50%, 03/11/2020

    558,513   
   

Macquarie Bank Ltd.

 
    100,000     

2.40%, 01/21/2020 (4)

    100,899   
   

Merrill Lynch & Co., Inc.

 
    300,000     

6.40%, 08/28/2017

    331,359   
   

Morgan Stanley

 
    425,000     

2.50%, 01/24/2019

    431,081   
    625,000     

3.70%, 10/23/2024

    639,256   
    550,000     

5.75%, 01/25/2021

    637,808   
   

National City Corp.

 
    125,000     

6.88%, 05/15/2019

    146,417   
   

Sovereign Bancorp, Inc.

 
    1,000,000     

8.75%, 05/30/2018

    1,174,168   
   

U.S. Bancorp

 
    165,000     

3.70%, 01/30/2024

    176,128   
   

Wachovia Corp.

 
    100,000     

5.75%, 06/15/2017

    109,625   
   

Wells Fargo & Co.

 
    1,794,000     

4.48%, 01/16/2024

    1,940,030   
     

 

 

 
        22,512,340   
     

 

 

 
            Commercial Services - 0.2%  
   

Catholic Health Initiatives

 
    155,000     

2.60%, 08/01/2018

    159,053   
   

ERAC USA Finance Co.

 
    140,000     

2.35%, 10/15/2019 (4)

    140,278   
    70,000     

2.75%, 03/15/2017 (4)

    71,902   
    510,000     

4.50%, 08/16/2021 (4)

    561,057   
    250,000     

5.63%, 03/15/2042 (4)

    288,816   
     

 

 

 
        1,221,106   
     

 

 

 
            Country Funds-Closed-end - 0.1%  
   

CDP Financial, Inc.

 
    575,000     

4.40%, 11/25/2019 (4)

    636,312   
     

 

 

 
            Diversified Financial Services - 0.5%  
   

Capital One Bank

 
    345,000     

2.15%, 11/21/2018

    348,615   
   

Discover Financial Services

 
    645,000     

6.45%, 06/12/2017

    708,601   
   

Eaton Vance Corp.

 
    99,000     

6.50%, 10/02/2017

    110,059   
   

General Electric Capital Corp.

 
    400,000     

3.10%, 01/09/2023

    414,229   
    800,000     

4.63%, 01/07/2021

    898,464   
    925,000     

5.88%, 01/14/2038

    1,201,576   
   

Synchrony Financial

 
    115,000     

2.70%, 02/03/2020

    115,236   
    75,000     

3.00%, 08/15/2019

    76,506   
     

 

 

 
        3,873,286   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

22

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Electric - 0.7%  
   

Berkshire Hathaway Energy Co.

 
  $        335,000     

4.50%, 02/01/2045

  $ 358,219   
   

Consolidated Edison Co. of New York, Inc.

 
    655,000     

5.30%, 12/01/2016

    700,282   
   

Dominion Resources, Inc.

 
    550,000     

3.63%, 12/01/2024

    566,216   
   

Electricitie De France

 
    525,000     

4.88%, 01/22/2044 (4)

    570,758   
    525,000     

5.63%, 01/22/2024 (4)(5)(6)

    556,762   
   

Eversource Energy

 
    60,000     

3.15%, 01/15/2025

    60,019   
   

Indianapolis Power and Light

 
    750,000     

6.60%, 06/01/2037 (4)

    1,066,265   
   

NiSource Finance Corp.

 
    70,000     

4.80%, 02/15/2044

    77,147   
   

Pacific Gas & Electric Co.

 
    135,000     

3.85%, 11/15/2023

    144,938   
    285,000     

5.13%, 11/15/2043

    336,018   
   

Southern California Edison Co.

 
    750,000     

5.55%, 01/15/2037

    938,147   
   

State Grid Overseas Investment

 
    380,000     

2.75%, 05/07/2019 (4)

    388,740   
     

 

 

 
        5,763,511   
     

 

 

 
            Food - 0.2%  
   

ConAgra Foods, Inc.

 
    45,000     

1.90%, 01/25/2018

    44,971   
   

Kraft Foods Group, Inc.

 
    145,000     

2.25%, 06/05/2017

    147,512   
   

Kroger Co.

 
    125,000     

3.30%, 01/15/2021

    129,298   
    230,000     

4.00%, 02/01/2024

    245,595   
   

Mondelez International, Inc.

 
    40,000     

4.00%, 02/01/2024

    42,836   
    700,000     

4.13%, 02/09/2016

    717,727   
   

Sysco Corp.

 
    85,000     

3.00%, 10/02/2021

    87,479   
    50,000     

3.50%, 10/02/2024

    51,400   
    70,000     

4.35%, 10/02/2034

    71,720   
     

 

 

 
        1,538,538   
     

 

 

 
            Gas - 0.2%  
   

Atmos Energy Corp.

 
    1,160,000     

6.35%, 06/15/2017

    1,282,008   
     

 

 

 
            Healthcare-Products - 0.1%  
   

Medtronic, Inc.

 
    110,000     

2.50%, 03/15/2020 (4)

    112,315   
    155,000     

3.15%, 03/15/2022 (4)

    160,108   
    245,000     

3.50%, 03/15/2025 (4)

    253,353   
    65,000     

3.63%, 03/15/2024

    68,895   
    45,000     

4.38%, 03/15/2035 (4)

    47,545   
     

 

 

 
        642,216   
     

 

 

 
            Healthcare-Services - 0.2%  
   

Anthem, Inc.

 
    631,000     

3.30%, 01/15/2023

    637,582   
   

Cigna Corp.

 
    470,000     

3.25%, 04/15/2025

    471,318   
   

Dignity Health

 
    35,000     

2.64%, 11/01/2019

    35,481   
    80,000     

3.81%, 11/01/2024

    83,010   

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Healthcare-Services - 0.2% - (continued)  
   

Kaiser Foundation Hospitals

 
  $        60,000     

3.50%, 04/01/2022

  $ 61,722   
    115,000     

4.88%, 04/01/2042

    127,622   
   

Memorial Sloan-Kettering Cancer Center

 
    85,000     

4.20%, 07/01/2055

    82,734   
   

NewYork-Presbyterian Hospital

 
    205,000     

4.02%, 08/01/2045

    196,448   
     

 

 

 
        1,695,917   
     

 

 

 
            Holding Companies-Diversified - 0.0%  
   

Hutchison Whampoa International Ltd.

 
    200,000     

3.63%, 10/31/2024 (4)

    203,445   
     

 

 

 
            Household Products - 0.2%  
   

Procter & Gamble Co.

 
    1,373,808     

9.36%, 01/01/2021

    1,689,064   
     

 

 

 
            Insurance - 0.3%  
   

Ace INA Holdings, Inc.

 
    185,000     

3.35%, 05/15/2024

    192,229   
   

American International Group, Inc.

 
    330,000     

3.88%, 01/15/2035

    321,294   
   

Five Corners Funding Trust

 
    115,000     

4.42%, 11/15/2023 (4)

    122,725   
   

Liberty Mutual Group, Inc.

 
    100,000     

4.25%, 06/15/2023 (4)

    105,863   
   

Loews Corp.

 
    165,000     

2.63%, 05/15/2023

    161,470   
   

MetLife, Inc.

 
    60,000     

1.90%, 12/15/2017

    60,431   
    485,000     

3.60%, 04/10/2024

    506,255   
    160,000     

4.88%, 11/13/2043

    181,596   
   

Prudential Financial, Inc.

 
    200,000     

3.50%, 05/15/2024

    204,578   
    300,000     

4.50%, 11/15/2020

    331,977   
   

Teachers Insurance & Annuity Association of America

 
    100,000     

4.90%, 09/15/2044 (4)

    109,581   
     

 

 

 
        2,297,999   
     

 

 

 
            Internet - 0.1%  
   

Amazon.com, Inc.

 
    285,000     

2.50%, 11/29/2022

    279,092   
    100,000     

4.80%, 12/05/2034

    106,183   
    120,000     

4.95%, 12/05/2044

    127,479   
     

 

 

 
        512,754   
     

 

 

 
            IT Services - 0.1%  
   

Apple, Inc.

 
    300,000     

2.85%, 05/06/2021

    310,521   
    270,000     

3.45%, 05/06/2024

    283,313   
    35,000     

4.45%, 05/06/2044

    37,063   
   

EMC Corp.

 
    366,000     

1.88%, 06/01/2018

    369,843   
     

 

 

 
        1,000,740   
     

 

 

 
            Machinery-Contruction & Mining - 0.1%  
   

Caterpillar Financial Services Corp.

 
    400,000     

3.30%, 06/09/2024

    412,999   
   

Caterpillar, Inc.

 
    170,000     

3.40%, 05/15/2024

    177,409   
    100,000     

4.30%, 05/15/2044

    105,591   
     

 

 

 
        695,999   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

23

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Media - 0.7%  
   

21st Century Fox America, Inc.

 
  $        180,000     

4.00%, 10/01/2023

  $ 194,172   
    220,000     

4.50%, 02/15/2021

    243,369   
    300,000     

4.75%, 09/15/2044

    321,630   
   

Comcast Corp.

 
    1,000,000     

5.90%, 03/15/2016

    1,046,013   
    150,000     

6.40%, 05/15/2038

    195,995   
   

Cox Communications, Inc.

 
    620,000     

4.80%, 02/01/2035 (4)

    623,735   
   

DIRECTV Holdings LLC

 
    65,000     

3.95%, 01/15/2025

    66,097   
   

DirecTV Holdings LLC

 
    460,000     

4.45%, 04/01/2024

    485,501   
   

Discovery Communications, Inc.

 
    55,000     

3.25%, 04/01/2023

    54,541   
   

Sky plc

 
    200,000     

2.63%, 09/16/2019 (4)

    202,742   
    645,000     

3.75%, 09/16/2024 (4)

    657,457   
   

Time Warner Cable, Inc.

 
    780,000     

5.85%, 05/01/2017

    836,240   
    80,000     

6.55%, 05/01/2037

    82,840   
    60,000     

7.30%, 07/01/2038

    66,463   
    106,000     

8.25%, 04/01/2019

    123,835   
    5,000     

8.75%, 02/14/2019

    5,902   
   

Time Warner Entertainment Co., L.P.

 
    30,000     

8.38%, 03/15/2023

    36,806   
   

Viacom, Inc.

 
    145,000     

3.88%, 12/15/2021

    151,291   
     

 

 

 
        5,394,629   
     

 

 

 
            Mining - 0.1%  
   

BHP Billiton Finance USA Ltd.

 
    335,000     

3.85%, 09/30/2023

    354,704   
   

Rio Tinto Finance USA Ltd.

 
    365,000     

3.75%, 09/20/2021

    383,742   
     

 

 

 
        738,446   
     

 

 

 
            Miscellaneous Manufacturing - 0.0%  
   

Parker-Hannifin Corp.

 
    90,000     

4.45%, 11/21/2044

    96,745   
     

 

 

 
            Oil & Gas - 0.9%  
   

BG Energy Capital plc

 
    525,000     

4.00%, 10/15/2021 (4)

    566,948   
   

BP Capital Markets plc

 
    130,000     

2.32%, 02/13/2020

    131,778   
    365,000     

3.51%, 03/17/2025

    371,715   
    25,000     

3.99%, 09/26/2023

    26,648   
    575,000     

4.75%, 03/10/2019

    635,898   
   

ConocoPhillips Co.

 
    35,000     

2.88%, 11/15/2021

    35,939   
    65,000     

4.30%, 11/15/2044

    66,850   
   

Devon Energy Corp.

 
    77,000     

3.25%, 05/15/2022

    77,887   
   

EnCana Corp.

 
    685,000     

6.50%, 05/15/2019

    785,463   
   

EOG Resources, Inc.

 
    570,000     

2.63%, 03/15/2023

    566,746   
   

Petroleos Mexicanos

 
    655,000     

3.50%, 07/23/2020 (4)

    669,737   
   

Phillips 66

 
    175,000     

4.88%, 11/15/2044

    183,800   

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Oil & Gas - 0.9% - (continued)  
   

Pioneer Natural Resources Co.

 
  $        755,000     

7.50%, 01/15/2020

  $ 901,682   
   

Shell International Finance B.V.

 
    200,000     

4.38%, 03/25/2020

    222,729   
   

Sinopec Group Overseas Development 2015 Ltd.

 
    890,000     

2.50%, 04/28/2020 (4)

    883,081   
   

Statoil ASA

 
    70,000     

2.25%, 11/08/2019

    71,272   
    30,000     

2.45%, 01/17/2023

    29,593   
    30,000     

2.65%, 01/15/2024

    29,481   
    95,000     

2.75%, 11/10/2021

    97,102   
    355,000     

2.90%, 11/08/2020

    370,308   
    35,000     

3.25%, 11/10/2024

    35,877   
    5,000     

3.70%, 03/01/2024

    5,335   
   

Suncor Energy, Inc.

 
    125,000     

3.60%, 12/01/2024

    128,284   
   

Total Capital International S.A.

 
    325,000     

2.70%, 01/25/2023

    324,187   
     

 

 

 
        7,218,340   
     

 

 

 
            Oil & Gas Services - 0.1%  
   

Schlumberger Investment S.A.

 
    330,000     

3.65%, 12/01/2023

    348,767   
     

 

 

 
            Pharmaceuticals - 0.8%  
   

Actavis Funding SCS

 
    225,000     

3.00%, 03/12/2020

    228,832   
    310,000     

3.45%, 03/15/2022

    314,982   
    145,000     

3.80%, 03/15/2025

    146,563   
    250,000     

4.85%, 06/15/2044

    254,440   
   

Bayer US Finance LLC

 
    700,000     

3.00%, 10/08/2021 (4)

    722,217   
   

Cardinal Health, Inc.

 
    195,000     

2.40%, 11/15/2019

    196,481   
    180,000     

3.50%, 11/15/2024

    183,933   
    200,000     

4.50%, 11/15/2044

    205,227   
   

Eli Lilly & Co.

 
    100,000     

2.75%, 06/01/2025

    99,296   
    215,000     

4.65%, 06/15/2044

    243,018   
   

EMD Finance LLC

 
    455,000     

2.95%, 03/19/2022 (4)

    461,638   
    670,000     

3.25%, 03/19/2025 (4)

    674,091   
   

Express Scripts Holding Co.

 
    315,000     

2.25%, 06/15/2019

    315,272   
    460,000     

3.50%, 06/15/2024

    466,463   
   

Forest Laboratories, Inc.

 
    260,000     

4.88%, 02/15/2021 (4)

    284,912   
   

McKesson Corp.

 
    25,000     

2.85%, 03/15/2023

    24,815   
    205,000     

3.80%, 03/15/2024

    214,040   
   

Merck & Co., Inc.

 
    430,000     

2.75%, 02/10/2025

    425,954   
    315,000     

2.80%, 05/18/2023

    319,636   
    125,000     

4.15%, 05/18/2043

    129,848   
     

 

 

 
        5,911,658   
     

 

 

 
            Pipelines - 0.3%  
   

Energy Transfer Partners L.P.

 
    600,000     

5.15%, 03/15/2045

    584,718   
   

Kinder Morgan Energy Partners L.P.

 
    525,000     

6.95%, 01/15/2038

    601,270   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  24  

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Pipelines - 0.3% - (continued)  
   

Phillips 66 Partners L.P.

 
  $        535,000     

3.61%, 02/15/2025

  $ 530,591   
   

Western Gas Partners L.P.

 
    530,000     

4.00%, 07/01/2022

    534,911   
     

 

 

 
        2,251,490   
     

 

 

 
            Real Estate - 0.1%  
   

WEA Finance LLC / Westfield UK & Europe Finance plc

 
    650,000     

2.70%, 09/17/2019 (4)

    658,481   
     

 

 

 
            Real Estate Investment Trusts - 0.2%  
   

American Tower Corp.

 
    450,000     

3.45%, 09/15/2021

    456,088   
   

Avalonbay Communities, Inc.

 
    150,000     

3.63%, 10/01/2020

    158,320   
   

Brandywine Operating Partnership L.P.

 
    350,000     

5.70%, 05/01/2017

    375,673   
   

HCP, Inc.

 
    335,000     

6.00%, 01/30/2017

    361,464   
   

Scentre Group

 
    345,000     

2.38%, 11/05/2019 (4)

    347,347   
     

 

 

 
        1,698,892   
     

 

 

 
            Retail - 0.2%  
   

AutoZone, Inc.

 
    200,000     

3.13%, 07/15/2023

    199,695   
    355,000     

3.70%, 04/15/2022

    368,973   
   

CVS Health Corp.

 
    470,000     

4.00%, 12/05/2023

    504,581   
   

Home Depot, Inc.

 
    75,000     

4.40%, 03/15/2045

    82,555   
   

Lowe’s Cos., Inc.

 
    600,000     

4.63%, 04/15/2020

    667,393   
     

 

 

 
        1,823,197   
     

 

 

 
            Savings & Loans - 0.0%  
   

Nationwide Building Society

 
    345,000     

2.35%, 01/21/2020 (4)

    345,918   
     

 

 

 
            Telecommunications - 0.6%  
   

America Movil S.A.B. de C.V.

 
    250,000     

3.13%, 07/16/2022

    253,265   
   

AT&T, Inc.

 
    25,000     

5.35%, 09/01/2040

    26,281   
    175,000     

6.55%, 02/15/2039

    213,284   
   

Orange S.A.

 
    650,000     

4.13%, 09/14/2021

    709,617   
   

Verizon Communications, Inc.

 
    45,000     

3.45%, 03/15/2021

    46,885   
    490,000     

3.50%, 11/01/2021

    510,144   
    880,000     

4.50%, 09/15/2020

    962,558   
    1,416,000     

4.52%, 09/15/2048 (4)

    1,340,476   
    130,000     

4.75%, 11/01/2041

    129,597   
    87,000     

6.40%, 09/15/2033

    105,892   
     

 

 

 
        4,297,999   
     

 

 

 
            Transportation - 0.1%  
   

FedEx Corp.

 
    50,000     

2.63%, 08/01/2022

    49,767   
    80,000     

2.70%, 04/15/2023

    78,337   
    180,000     

4.90%, 01/15/2034

    196,670   

Shares or Principal Amount

  Market Value*  
CORPORATE BONDS - 11.0% - (continued)  
            Transportation - 0.1% - (continued)  
  $        300,000     

5.10%, 01/15/2044

  $ 335,034   
     

 

 

 
        659,808   
     

 

 

 
   

Total Corporate Bonds
(cost $80,689,720)

  $ 85,522,046   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 0.1%  
            Mexico - 0.1%  
   

Mexico Government International Bond

 
    372,000     

3.50%, 01/21/2021

  $ 386,694   
    450,000     

3.60%, 01/30/2025

    456,300   
     

 

 

 
   

Total Foreign Government Obligations
(cost $816,563)

  $ 842,994   
     

 

 

 
     
MUNICIPAL BONDS - 0.9%  
            General Obligation - 0.4%  
   

California State GO, Taxable

 
    250,000     

7.55%, 04/01/2039

  $ 384,270   
   

Chicago, IL, Metropolitan Water Reclamation GO

 
    130,000     

5.72%, 12/01/2038

    160,549   
   

Dallas, TX, Area Rapid Transit Sales Tax Rev

 
    425,000     

6.00%, 12/01/2044

    575,509   
   

Illinois State, GO

 
    150,000     

5.10%, 06/01/2033

    148,740   
   

Los Angeles, CA, USD GO

 
    800,000     

5.75%, 07/01/2034

    996,576   
   

Municipal Elec Auth Georgia

 
    150,000     

6.64%, 04/01/2057

    194,086   
   

University of California, Regents MedCenter Pooled Rev

 
    100,000     

6.55%, 05/15/2048

    132,962   
    375,000     

6.58%, 05/15/2049

    498,514   
     

 

 

 
        3,091,206   
     

 

 

 
            Higher Education - 0.1%  
   

University of California, Build America Bonds Rev

 
    370,000     

5.77%, 05/15/2043

    470,733   
     

 

 

 
            Power - 0.0%  
   

Utility Debt Securitization Auth, New York

 
    100,000     

3.44%, 12/15/2025

    105,045   
     

 

 

 
            Transportation - 0.4%  
   

Bay Area, CA, Toll Auth Bridge Rev

 
    650,000     

6.26%, 04/01/2049

    908,707   
   

Illinois State Toll Highway Auth, Taxable Rev

 
    350,000     

6.18%, 01/01/2034

    451,766   
   

Maryland State Transportation Auth

 
    255,000     

5.89%, 07/01/2043

    333,356   
   

New York and New Jersey PA, Taxable Rev

 
    185,000     

5.86%, 12/01/2024

    228,982   
    115,000     

6.04%, 12/01/2029

    145,730   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  25  

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
MUNICIPAL BONDS - 0.9% - (continued)  
            Transportation - 0.4% - (continued)  
   

North Texas Tollway Auth Rev

 
  $        730,000     

6.72%, 01/01/2049

  $ 1,056,449   
     

 

 

 
        3,124,990   
     

 

 

 
   

Total Municipal Bonds
(cost $5,324,872)

  $ 6,791,974   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 1.6%  
            FHLMC - 0.4%  
    64,282     

4.00%, 03/01/2041

  $ 68,813   
    592,304     

4.50%, 08/01/2033

    646,297   
    13,521     

4.50%, 09/01/2033

    14,753   
    4,204     

4.50%, 08/01/2034

    4,592   
    11,570     

4.50%, 08/01/2035

    12,644   
    420,838     

4.50%, 08/01/2035

    460,161   
    74,123     

4.50%, 09/01/2035

    80,969   
    8,324     

4.50%, 11/01/2035

    9,063   
    604,346     

4.50%, 03/01/2036

    660,660   
    851,493     

4.50%, 11/01/2043

    927,502   
     

 

 

 
        2,885,454   
     

 

 

 
            FNMA - 0.9%  
    2,200,000     

3.00%, 06/01/2040 (7)

    2,233,219   
    864,349     

4.50%, 06/01/2040

    942,822   
    31,602     

4.50%, 07/01/2040

    34,423   
    39,306     

4.50%, 04/01/2041

    42,946   
    28,784     

4.50%, 04/01/2041

    31,449   
    930,722     

4.50%, 08/01/2041

    1,017,639   
    889,681     

4.50%, 09/01/2041

    972,478   
    234,322     

4.50%, 12/01/2041

    256,928   
    296,091     

4.50%, 06/01/2044

    322,829   
    1,300,000     

4.50%, 05/01/2045 (7)

    1,414,867   
     

 

 

 
        7,269,600   
     

 

 

 
            GNMA - 0.3%  
    1,096     

6.00%, 11/20/2023

    1,242   
    2,007     

6.00%, 12/20/2023

    2,278   
    428     

6.00%, 01/20/2024

    485   
    3,764     

6.00%, 02/20/2024

    4,269   
    7,611     

6.00%, 06/20/2024

    8,630   
    311     

6.00%, 02/20/2026

    353   
    527     

6.00%, 10/20/2026

    598   
    933     

6.00%, 02/20/2027

    1,059   
    383     

6.00%, 01/20/2028

    435   
    10,116     

6.00%, 02/20/2028

    11,615   
    14,697     

6.00%, 04/20/2028

    16,810   
    6,326     

6.00%, 06/15/2028

    7,358   
    45,198     

6.00%, 07/20/2028

    51,551   
    37,949     

6.00%, 08/20/2028

    43,475   
    12,257     

6.00%, 10/15/2028

    13,961   
    1,933     

6.00%, 11/15/2028

    2,202   
    12,871     

6.00%, 11/15/2028

    14,667   
    13,810     

6.00%, 11/15/2028

    15,718   
    23,162     

6.00%, 11/15/2028

    26,361   
    5,184     

6.00%, 11/15/2028

    5,901   
    41,385     

6.00%, 03/20/2029

    47,243   
    35,335     

6.00%, 09/20/2029

    40,380   
    12,527     

6.00%, 03/20/2030

    14,213   
    83,854     

6.00%, 04/20/2030

    95,172   
    23,158     

6.00%, 06/20/2030

    26,281   

Shares or Principal Amount

  Market Value*  
U.S. GOVERNMENT AGENCIES - 1.6% - (continued)  
            GNMA - 0.3% - (continued)  
  $        5,190     

6.00%, 08/15/2034

  $ 6,043   
    1,616     

6.00%, 09/15/2034

    1,840   
    802     

6.50%, 04/15/2026

    925   
    5,017     

6.50%, 02/15/2028

    5,787   
    2,137     

6.50%, 03/15/2028

    2,465   
    7,822     

6.50%, 03/15/2028

    9,022   
    12,597     

6.50%, 03/15/2028

    14,530   
    11,193     

6.50%, 03/15/2028

    12,910   
    4,898     

6.50%, 03/15/2028

    5,649   
    4,894     

6.50%, 03/15/2028

    5,645   
    2,953     

6.50%, 03/15/2028

    3,406   
    5,900     

6.50%, 05/15/2028

    6,805   
    41,314     

6.50%, 07/15/2028

    47,652   
    34,604     

6.50%, 10/15/2028

    39,913   
    898     

6.50%, 10/15/2028

    1,037   
    1,131     

6.50%, 12/15/2028

    1,341   
    856     

6.50%, 12/15/2028

    987   
    275     

6.50%, 12/15/2028

    318   
    55,964     

6.50%, 01/15/2029

    64,550   
    22,930     

6.50%, 01/15/2029

    26,448   
    16,058     

6.50%, 02/15/2029

    18,521   
    159,360     

6.50%, 03/15/2029

    183,810   
    43,421     

6.50%, 03/15/2029

    50,083   
    6,937     

6.50%, 04/15/2029

    8,280   
    23,783     

6.50%, 04/15/2029

    27,432   
    9,910     

6.50%, 05/15/2029

    11,431   
    5,462     

6.50%, 05/15/2029

    6,300   
    1,966     

6.50%, 05/15/2029

    2,330   
    13,696     

6.50%, 06/15/2029

    15,798   
    3,270     

6.50%, 06/15/2029

    3,771   
    27,090     

6.50%, 02/15/2035

    32,112   
    70,170     

7.00%, 11/15/2031

    82,764   
    43,434     

7.00%, 03/15/2032

    50,975   
    281,262     

7.00%, 11/15/2032

    341,153   
    8,404     

7.00%, 01/15/2033

    10,143   
    29,305     

7.00%, 05/15/2033

    35,432   
    59,314     

7.00%, 07/15/2033

    71,272   
    84,142     

7.00%, 11/15/2033

    102,410   
    4,677     

8.00%, 12/15/2029

    5,069   
    3,688     

8.00%, 04/15/2030

    4,073   
    8,200     

8.00%, 05/15/2030

    8,414   
    704     

8.00%, 07/15/2030

    777   
    2,851     

8.00%, 08/15/2030

    2,906   
    1,193     

8.00%, 08/15/2030

    1,209   
    281     

8.00%, 08/15/2030

    281   
    2,387     

8.00%, 08/15/2030

    2,401   
    391     

8.00%, 08/15/2030

    398   
    7,743     

8.00%, 08/15/2030

    8,320   
    2,133     

8.00%, 08/15/2030

    2,512   
    15,168     

8.00%, 11/15/2030

    16,535   
    85,136     

8.00%, 02/15/2031

    93,478   
     

 

 

 
        1,909,920   
     

 

 

 
   

Total U.S. Government Agencies (cost $11,676,388)

  $ 12,064,974   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

26

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

  Market Value*  
U.S. GOVERNMENT SECURITIES - 14.2%  
            Other Direct Federal Obligations - 0.8%  
            FFC - 0.8%      
  $        5,000,000     

9.80%, 04/06/2018

  $ 6,268,610   
     

 

 

 
            U.S. Treasury Securities - 13.4%  
            U.S. Treasury Bonds - 2.1%      
    865,000     

2.75%, 11/15/2042

    864,865   
    5,295,000     

2.88%, 05/15/2043

    5,425,305   
    500,000     

3.00%, 11/15/2044

    526,133   
    2,167,500     

3.13%, 02/15/2043

    2,328,370   
    2,825,000     

3.13%, 08/15/2044

    3,042,392   
    1,705,000     

3.38%, 05/15/2044

    1,922,121   
    1,400,000     

6.00%, 02/15/2026

    1,927,734   
     

 

 

 
        16,036,920   
     

 

 

 
            U.S. Treasury Notes - 11.3%  
    600,000     

0.38%, 06/30/2015 (8)

    600,328   
    1,650,000     

0.38%, 05/31/2016

    1,651,160   
    15,000,000     

0.50%, 08/31/2016

    15,018,750   
    4,500,000     

0.50%, 11/30/2016

    4,501,760   
    4,205,000     

0.63%, 12/31/2016

    4,214,201   
    1,500,000     

0.63%, 05/31/2017

    1,499,649   
    533,900     

0.88%, 01/31/2017

    537,112   
    5,400,000     

1.00%, 09/30/2016

    5,443,875   
    2,500,000     

1.00%, 12/15/2017

    2,511,720   
    3,900,000     

1.00%, 05/31/2018

    3,904,267   
    1,525,000     

1.25%, 11/30/2018

    1,531,553   
    9,400,000     

1.38%, 09/30/2018

    9,494,000   
    3,000,000     

1.50%, 06/30/2016

    3,040,314   
    8,280,000     

1.63%, 07/31/2019

    8,386,083   
    8,245,000     

1.75%, 09/30/2019

    8,383,491   
    4,190,000     

2.25%, 11/15/2024

    4,267,582   
    2,520,000     

2.38%, 08/15/2024

    2,595,600   
    1,850,000     

2.75%, 02/15/2024

    1,965,336   
    1,950,000     

3.88%, 05/15/2018

    2,122,148   
    5,200,000     

4.50%, 05/15/2017

    5,610,311   
     

 

 

 
        87,279,240   
     

 

 

 
        109,584,770   
     

 

 

 
   

Total U.S. Government Securities
(cost $105,558,006)

  $ 109,584,770   
     

 

 

 
     
DISCOUNT NOTES - 0.5%  
            FHLB - 0.5%  
    3,000,000     

0.07%, 06/22/2015

  $ 2,999,697   
    500,000     

0.09%, 06/26/2015

    499,934   
     

 

 

 
   

Total Discount Notes
(cost $3,499,631)

  $ 3,499,631   
     

 

 

 
     
PREFERRED STOCKS - 0.3%  
            Retailing - 0.3%  
    32,392     

Tory Burch LLC (1)(2)(3)

  $ 2,171,218   
     

 

 

 
   

Total Preferred Stocks
(cost $2,538,751)

  $ 2,171,218   
     

 

 

 
   

Total Long-Term Investments
(cost $583,113,646)

  $ 751,948,075   
     

 

 

 

Shares or Principal Amount

  Market Value*  
SHORT-TERM INVESTMENTS - 1.9%  
            Other Investment Pools & Funds - 1.9%  
  $        14,803,802     

Federated Prime Obligations Fund

  $ 14,803,802   
     

 

 

 
   

Total Short-Term Investments
(cost $14,803,802)

  $ 14,803,802   
     

 

 

 
 

Total Investments
(cost $601,417,079) ^

    99.6    $ 770,251,508   
 

Other Assets and Liabilities

    0.4      3,442,759   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     773,694,267   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

27

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $604,394,023 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     168,936,042   

Unrealized Depreciation

     (3,078,557
  

 

 

 

Net Unrealized Appreciation

   $ 165,857,485   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
08/2011      2,006,600       Allstar Co.    $ 872,909   
11/2013      32,392       Tory Burch LLC Preferred      2,538,751   
        

 

 

 
         $     3,411,660   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $4,238,016, which represents 0.5% of total net assets.

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $4,238,016, which represents 0.5% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $20,891,562, which represents 2.7% of total net assets.

 

(5)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(6)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(7)  Represents or includes a TBA transaction.

 

(8)  This security, or a portion of this security, has been pledged as collateral in connection with futures contracts.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional Amount      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

U.S. Treasury CME Ultra Long Term Bond Future

     8         06/19/2015       $ 1,318,263       $ 1,316,000       $ (2,263

Short position contracts:

              

U.S. Treasury 10-Year Note Future

     17         06/19/2015       $ 2,181,007       $ 2,182,375       $ (1,368

U.S. Treasury 5-Year Note Future

     87         06/30/2015             10,340,846             10,451,554             (110,708
              

 

 

 

Total

               $ (112,076
              

 

 

 

Total futures contracts

               $ (114,339
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

28

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015

 

Description

   Principal
Amount
     Maturity Date      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

FHLMC, 4.50%

   $ 1,300,000         05/01/2045       $ 1,413,425       $ (1,769

FNMA, 4.50%

         2,125,000         05/01/2045             2,312,763             (3,403
        

 

 

    

 

 

 

Total

         $ 3,726,188       $ (5,172
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (0.5)% of total net assets.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

ADR

   American Depositary Receipt

FFC

   Federal Financing Corp.

FHLB

   Federal Home Loan Bank

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

REIT

   Real Estate Investment Trust

TBA

   To Be Announced
Municipal Abbreviations:

GO

   General Obligation

PA

   Port Authority

Rev

   Revenue

USD

   United School District

 

The accompanying notes are an integral part of these financial statements.

 

 

  29  

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Common Stocks

        

Automobiles & Components

   $ 4,389,240      $ 4,389,240      $      $   

Banks

     56,465,475        56,465,475                 

Capital Goods

     33,582,228        33,582,228                 

Consumer Durables & Apparel

     3,668,925        3,668,925                 

Consumer Services

     3,842,690        3,842,690                 

Diversified Financials

     26,417,240        26,417,240                 

Energy

     45,295,167        45,295,167                 

Food & Staples Retailing

     9,164,467        9,164,467                 

Food, Beverage & Tobacco

     25,251,916        20,981,371        4,270,545          

Health Care Equipment & Services

     23,909,542        23,909,542                 

Household & Personal Products

     4,283,983        4,283,983                 

Insurance

     19,292,919        19,292,919                 

Materials

     14,723,154        14,723,154                 

Media

     24,592,366        24,592,366                 

Pharmaceuticals, Biotechnology & Life Sciences

     71,680,683        58,964,373        12,716,310          

Real Estate

     1,421,632        1,421,632                 

Retailing

     21,221,810        19,155,012               2,066,798   

Semiconductors & Semiconductor Equipment

     32,389,692        32,389,692                 

Software & Services

     53,054,233        53,054,233                 

Technology Hardware & Equipment

     34,931,781        34,931,781                 

Telecommunication Services

     2,926,983        2,926,983                 

Transportation

     4,950,318        4,950,318                 

Utilities

     8,831,375        8,831,375                 

Asset & Commercial Mortgage Backed Securities

     8,682,280               8,682,280          

Corporate Bonds

     85,522,046               85,522,046          

Foreign Government Obligations

     842,994               842,994          

Municipal Bonds

     6,791,974               6,791,974          

U.S. Government Agencies

     12,064,974               12,064,974          

U.S. Government Securities

     109,584,770               109,584,770          

Discount Notes

     3,499,631               3,499,631          

Preferred Stocks

     2,171,218                      2,171,218   

Short-Term Investments

     14,803,802        14,803,802                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     770,251,508      $     522,037,968      $     243,975,524      $     4,238,016   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Futures Contracts (2)

   $ (114,339   $ (114,339   $      $   

TBA Sale Commitments

     (3,726,188            (3,726,188       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (3,840,527   $ (114,339   $ (3,726,188   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $4,216,704 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

30

 


The Hartford Balanced Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks      Corporate Bonds     Preferred Stocks      Total  

Beginning balance

   $     1,703,202       $      1,278,903      $ 2,122,954       $ 5,105,059   

Purchases

             205,000                205,000   

Sales

             (12,330             (12,330

Accrued discounts/(premiums)

                              

Total realized gain/(loss)

                              

Net change in unrealized appreciation/depreciation

     363,596         (2,253     48,264         409,607   

Transfers into Level 3 (1)

                              

Transfers out of Level 3 (1)

             (1,469,320 )                 (1,469,320
  

 

 

    

 

 

   

 

 

    

 

 

 

Ending balance

   $ 2,066,798       $      $     2,171,218       $ 4,238,016   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $658,787.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  31  

 


The Hartford Balanced Income Fund

 

  

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     0.4

Aa / AA

     3.9   

A

     16.4   

Baa / BBB

     21.8   

Ba / BB

     2.2   

B

     3.1   

Caa / CCC or Lower

     1.9   

Not Rated

     0.6   

Non-Debt Securities and Other Short-Term Instruments

     49.4   

Other Assets & Liabilities

     0.3   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     46.4

Preferred Stocks

     0.0   
  

 

 

 

Total

     46.4
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     1.8

Corporate Bonds

     43.5   

Foreign Government Obligations

     4.4   

Municipal Bonds

     0.3   

Senior Floating Rate Interests

     0.2   

U.S. Government Securities

     0.1   
  

 

 

 

Total

     50.3
  

 

 

 

Short-Term Investments

     3.0   

Other Assets & Liabilities

     0.3   
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

32

 


The Hartford Balanced Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 46.4%  
          Banks - 6.5%  
    830,290     

BB&T Corp.

  $ 31,791,805   
    1,663,310     

JP Morgan Chase & Co.

    105,220,991   
    704,330     

M&T Bank Corp.

    84,287,171   
    782,300     

National Bank of Canada

    31,609,718   
    781,690     

US Bancorp

    33,511,050   
    2,379,670     

Wells Fargo & Co.

    131,119,817   
     

 

 

 
        417,540,552   
     

 

 

 
          Capital Goods - 3.8%  
    315,100     

Caterpillar, Inc.

    27,375,888   
    1,056,570     

Eaton Corp. plc

    72,618,056   
    3,088,080     

General Electric Co.

    83,625,206   
    138,610     

Lockheed Martin Corp.

    25,864,626   
    449,124     

Schneider Electric S.A.

    33,571,291   
     

 

 

 
        243,055,067   
     

 

 

 
          Commercial & Professional Services - 0.3%  
    447,040     

Waste Management, Inc.

    22,141,891   
     

 

 

 
          Consumer Services - 0.7%  
    439,160     

McDonald’s Corp.

    42,400,898   
     

 

 

 
          Diversified Financials - 1.4%  
    220,530     

BlackRock, Inc.

    80,259,688   
    188,700     

Invesco Ltd.

    7,815,954   
     

 

 

 
        88,075,642   
     

 

 

 
          Energy - 5.3%  
    817,840     

Chevron Corp.

    90,829,310   
    592,500     

Enbridge, Inc.

    31,005,525   
    1,003,310     

Exxon Mobil Corp.

    87,659,195   
    439,000     

Occidental Petroleum Corp.

    35,163,900   
    383,200     

Phillips 66

    30,391,592   
    660,069     

Royal Dutch Shell plc Class B

    21,132,630   
    1,420,700     

Suncor Energy, Inc.

    46,314,820   
     

 

 

 
        342,496,972   
     

 

 

 
          Food & Staples Retailing - 0.4%  
    726,650     

Sysco Corp.

    26,907,849   
     

 

 

 
          Food, Beverage & Tobacco - 4.1%  
    421,750     

Altria Group, Inc.

    21,108,588   
    549,093     

British American Tobacco plc

    30,169,134   
    945,600     

Coca-Cola Co.

    38,353,536   
    225,800     

Diageo plc ADR

    25,068,316   
    1,158,730     

Kraft Foods Group, Inc.

    98,202,367   
    144,110     

PepsiCo, Inc.

    13,707,743   
    281,550     

Philip Morris International, Inc.

    23,500,979   
    308,760     

Unilever N.V.

    13,424,885   
     

 

 

 
        263,535,548   
     

 

 

 
          Health Care Equipment & Services - 0.3%  
    291,030     

Baxter International, Inc.

    20,005,402   
     

 

 

 
          Household & Personal Products - 0.8%  
    185,790     

Kimberly-Clark Corp.

    20,379,305   
    381,170     

Procter & Gamble Co.

    30,306,827   
     

 

 

 
        50,686,132   
     

 

 

 
          Insurance - 1.6%  
    325,280     

ACE Ltd.

    34,801,707   
    758,300     

MetLife, Inc.

    38,893,207   
    571,000     

Principal Financial Group, Inc.

    29,189,520   
     

 

 

 
        102,884,434   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 46.4% - (continued)  
          Materials - 1.8%  
    271,000     

Agrium, Inc.

  $ 28,083,730   
    756,480     

Dow Chemical Co.

    38,580,480   
    324,620     

E.I. DuPont de Nemours & Co.

    23,762,184   
    440,490     

Nucor Corp.

    21,522,341   
     

 

 

 
        111,948,735   
     

 

 

 
          Media - 0.4%  
    583,660     

Thomson Reuters Corp.

    23,965,080   
     

 

 

 
          Pharmaceuticals, Biotechnology & Life Sciences - 7.0%  
    621,570     

AstraZeneca plc ADR

    42,565,114   
    564,600     

Bristol-Myers Squibb Co.

    35,981,958   
    547,000     

Eli Lilly & Co.

    39,312,890   
    958,970     

Johnson & Johnson

    95,129,824   
    1,738,460     

Merck & Co., Inc.

    103,542,678   
    181,533     

Novartis AG

    18,529,457   
    2,467,435     

Pfizer, Inc.

    83,720,069   
    106,825     

Roche Holding AG

    30,568,518   
     

 

 

 
        449,350,508   
     

 

 

 
          Semiconductors & Semiconductor Equipment - 2.8%  
    1,062,870     

Analog Devices, Inc.

    65,727,881   
    2,217,350     

Intel Corp.

    72,174,743   
    708,610     

Maxim Integrated Products, Inc.

    23,263,666   
    348,710     

Texas Instruments, Inc.

    18,903,569   
     

 

 

 
        180,069,859   
     

 

 

 
          Software & Services - 2.4%  
    183,900     

IBM Corp.

    31,500,231   
    2,561,850     

Microsoft Corp.

    124,608,384   
     

 

 

 
        156,108,615   
     

 

 

 
          Technology Hardware & Equipment - 1.3%  
    2,975,290     

Cisco Systems, Inc.

    85,777,611   
     

 

 

 
          Telecommunication Services - 2.1%  
    754,300     

BCE, Inc.

    33,254,221   
    1,974,739     

Verizon Communications, Inc.

    99,605,835   
     

 

 

 
        132,860,056   
     

 

 

 
          Transportation - 0.4%  
    262,830     

United Parcel Service, Inc. Class B

    26,422,300   
     

 

 

 
          Utilities - 3.0%  
    619,500     

Duke Energy Corp.

    48,054,615   
    705,040     

Eversource Energy

    34,377,750   
    3,344,636     

National Grid plc

    44,996,527   
    830,245     

UGI Corp.

    28,900,829   
    991,770     

Xcel Energy, Inc.

    33,630,921   
     

 

 

 
        189,960,642   
     

 

 

 
   

Total Common Stocks
(cost $2,514,557,517)

  $ 2,976,193,793   
     

 

 

 
     
PREFERRED STOCKS - 0.0%  
          Diversified Financials - 0.0%  
    100     

Citigroup Capital

    2,589   
    7,000     

Discover Financial Services Series B

    180,320   
    77,350     

GMAC Capital Trust I Series 2

    2,032,758   
     

 

 

 
   

Total Preferred Stocks
(cost $2,216,005)

  $ 2,215,667   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

33

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.8%  
            Asset-Backed - Credit Card - 0.1%  
   

Capital One Multi-Asset Execution Trust

 
  $        8,430,000     

0.23%, 11/15/2019 (1)

  $ 8,397,781   
     

 

 

 
            Asset-Backed - Finance & Insurance - 0.1%  
   

Countrywide Asset-Backed Certificates

 
    1,000,000     

0.57%,06/25/2036 (1)

    892,319   
   

First Franklin Mortgage Loan Trust

 
    1,602,261     

0.42%,04/25/2036 (1)

    1,034,995   
   

Lehman XS Trust

 
    1,066,128     

0.44%,11/25/2035 (1)

    759,149   
   

Securitized Asset Backed Receivables LLC

 
    1,005,140     

0.27%,07/25/2036 (1)

    496,563   
     

 

 

 
        3,183,026   
     

 

 

 
            Asset-Backed - Home Equity - 0.2%  
   

Asset Backed Funding Certificates

 
    282,373     

0.40%, 01/25/2037 (1)

    174,734   
   

GSAA Home Equity Trust

 
    2,177,255     

0.26%, 02/25/2037 (1)

    1,172,351   
    1,306,328     

0.27%, 12/25/2036 (1)

    635,944   
    1,042,684     

0.27%, 03/25/2037 (1)

    564,210   
    2,664,364     

0.36%, 11/25/2036 (1)

    1,445,870   
    825,679     

0.41%, 04/25/2047 (1)

    546,749   
    1,181,990     

0.50%, 04/25/2047 (1)

    788,928   
    1,518,748     

5.99%, 06/25/2036 (1)

    880,145   
   

Morgan Stanley Mortgage Loan Trust

 
    1,566,923     

0.35%, 11/25/2036 (1)

    758,483   
   

Renaissance Home Equity Loan Trust

 
    2,544,857     

5.91%, 04/25/2037

    1,450,762   
   

Soundview Home Loan Trust

 
    1,995,000     

0.43%, 11/25/2036 (1)

    1,374,936   
     

 

 

 
        9,793,112   
     

 

 

 
            Commercial Mortgage-Backed Securities - 0.2%  
   

Bear Stearns Commercial Mortgage Securities, Inc.

 
    455,000     

5.20%, 12/11/2038

    476,832   
    250,984     

5.54%, 10/12/2041

    263,075   
    249,277     

5.54%, 09/11/2041

    259,487   
   

Commercial Mortgage Pass-Through Certificates

 
    815,000     

4.40%, 07/10/2045 (1)(2)

    777,679   
    380,000     

4.48%, 12/10/2045 (1)(2)

    372,212   
    1,100,000     

4.73%, 10/15/2045 (1)(2)

    1,105,537   
    270,000     

4.75%, 10/15/2045 (1)(2)

    213,470   
    1,130,000     

4.93%, 10/15/2045 (1)(2)

    1,159,707   
    90,505     

5.94%, 06/10/2046 (1)

    93,407   
   

Community or Commercial Mortgage Trust

 
    970,000     

4.73%, 10/15/2045 (1)(2)

    804,081   
   

GS Mortgage Securities Trust

 
    855,000     

5.02%, 11/10/2045 (1)(2)

    865,749   
    1,000,000     

5.03%, 04/10/2047 (1)(2)

    973,079   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    261,749     

5.48%, 04/15/2043 (1)

    266,652   
    850,000     

5.50%, 08/15/2046 (1)(2)

    917,084   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    1,000,000     

4.00%, 08/15/2046 (1)(2)

    934,841   
    1,247,998     

4.82%, 10/15/2045 (1)(2)

    1,264,237   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.8% - (continued)  
            Commercial Mortgage-Backed Securities - 0.2% -
(continued)
 
   

Merrill Lynch Mortgage Investors Trust

 
  $        39,296     

5.05%, 07/12/2038 (1)

  $ 39,362   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    960,000     

4.50%, 08/15/2045 (2)

    755,955   
   

Morgan Stanley Capital I

 
    47,500     

5.23%, 09/15/2042 (1)

    47,577   
   

UBS-Barclays Commercial Mortgage Trust

 
    605,000     

4.23%, 03/10/2046 (1)(2)

    512,087   
   

Wells Fargo Commercial Mortgage Trust

 
    360,000     

4.94%, 10/15/2045 (1)(2)

    370,162   
   

WF-RBS Commercial Mortgage Trust

 
    1,085,599     

3.02%, 11/15/2047 (2)

    772,114   
    440,505     

5.00%, 04/15/2045 (1)(2)

    360,224   
     

 

 

 
        13,604,610   
     

 

 

 
            Whole Loan Collateral CMO - 1.2%      
   

Adjustable Rate Mortgage Trust

 
    952,823     

0.43%, 01/25/2036 (1)

    799,565   
    772,070     

0.45%, 11/25/2035 (1)

    703,486   
    814,133     

0.68%, 01/25/2036 (1)

    703,394   
   

American Home Mortgage Assets Trust

 
    858,943     

0.37%, 09/25/2046 (1)

    640,812   
    322,036     

1.08%, 10/25/2046 (1)

    228,966   
   

Banc of America Funding Corp.

 
    1,847,914     

0.41%, 02/20/2047 (1)

    1,602,830   
    991,236     

0.48%, 05/20/2047 (1)

    816,989   
    1,047,167     

5.77%, 05/25/2037 (1)

    926,513   
    247,003     

5.85%, 01/25/2037

    198,154   
   

BCAP LLC Trust

 
    519,735     

0.35%, 01/25/2037 (1)

    411,993   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    782,945     

2.26%, 08/25/2035 (1)

    787,385   
    1,220,942     

2.41%, 10/25/2035 (1)

    1,202,733   
    538,904     

4.89%, 06/25/2047 (1)

    483,027   
   

Bear Stearns Alt-A Trust

 
    2,398,780     

0.50%, 08/25/2036 (1)

    1,798,082   
    352,084     

0.56%, 05/25/2036 (1)

    289,499   
    1,523,965     

0.66%, 02/25/2036 (1)

    1,251,581   
   

Bear Stearns Mortgage Funding Trust

 
    1,948,741     

0.36%, 10/25/2036 (1)

    1,518,075   
   

Chase Mortgage Finance Trust

 
    585,000     

5.50%, 11/25/2035

    574,800   
   

CHL Mortgage Pass-Through Trust

 
    2,374,489     

0.52%, 03/25/2035 (1)

    1,946,896   
    646,540     

2.42%, 06/20/2035 (1)

    616,534   
    2,576,723     

2.42%, 06/20/2035 (1)

    2,457,135   
    681,721     

2.67%, 04/25/2037 (1)

    611,384   
   

Citigroup Mortgage Loan Trust

 
    619,117     

2.54%, 07/25/2036 (1)

    417,233   
   

Connecticut Avenue Securities Series

 
    375,000     

2.78%, 05/25/2024 (1)

    349,641   
    1,545,000     

3.08%, 07/25/2024 (1)

    1,464,079   
    2,120,000     

3.18%, 07/25/2024 (1)

    2,030,964   
    875,000     

5.08%, 11/25/2024 (1)

    930,830   
   

Countrywide Alternative Loan Trust

 
    484,431     

0.45%, 01/25/2036 (1)

    430,674   
    276,204     

0.50%, 11/25/2035 (1)

    226,234   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  34  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.8% - (continued)  
            Whole Loan Collateral CMO - 1.2% - (continued)  
  $        1,590,737     

0.58%, 10/25/2036 (1)

  $ 1,140,760   
    3,867,002     

0.63%, 04/25/2037 (1)

    2,478,029   
    976,421     

5.50%, 12/25/2035

    859,406   
    1,176,365     

5.75%, 05/25/2036

    1,045,535   
    252,775     

6.00%, 05/25/2036

    217,873   
    747,316     

6.00%, 12/25/2036

    585,200   
    1,291,856     

6.50%, 08/25/2037

    906,339   
   

Countrywide Home Loans, Inc.

 
    719,805     

2.55%, 09/25/2047 (1)

    640,346   
    309,408     

2.70%, 04/20/2036 (1)

    221,351   
    3,567,669     

4.76%, 11/20/2035 (1)

    3,183,570   
    1,219,085     

5.75%, 08/25/2037

    1,159,298   
   

CS First Boston Mortgage Securities Corp.

 
    575,432     

5.50%, 06/25/2035

    546,175   
   

Deutsche Alt-A Securities Mortgage Loan Trust

 
    611,487     

0.33%, 03/25/2037 (1)

    437,469   
   

Downey S & L Association Mortgage Loan Trust

 
    688,710     

1.05%, 03/19/2046 (1)

    529,138   
   

GMAC Mortgage Corp. Loan Trust

 
    280,329     

2.98%, 04/19/2036 (1)

    248,616   
   

GSR Mortgage Loan Trust

 
    279,381     

0.68%, 11/25/2035 (1)

    202,430   
    2,297,339     

2.71%, 01/25/2036 (1)

    2,127,775   
   

HarborView Mortgage Loan Trust

 
    401,696     

0.37%, 01/19/2038 (1)

    338,960   
    2,472,166     

0.42%, 12/19/2036 (1)

    1,748,341   
    481,619     

0.51%, 09/19/2035 (1)

    380,172   
    529,502     

0.88%, 01/19/2035 (1)

    368,591   
   

IndyMac INDA Mortgage Loan Trust

 
    536,969     

2.56%, 09/25/2036 (1)

    448,408   
    1,040,540     

2.58%, 12/25/2036 (1)

    904,222   
   

IndyMac Index Mortgage Loan Trust

 
    384,022     

0.38%, 10/25/2036 (1)

    326,613   
    432,022     

0.42%, 07/25/2035 (1)

    375,189   
    664,094     

0.46%, 07/25/2035 (1)

    552,851   
    228,999     

0.47%, 01/25/2036 (1)

    159,042   
    796,445     

0.58%, 07/25/2046 (1)

    444,864   
    321,169     

2.42%, 01/25/2036 (1)

    296,564   
    491,162     

2.50%, 08/25/2035 (1)

    391,602   
    614,733     

4.51%, 02/25/2036(1)

    522,464   
   

JP Morgan Mortgage Trust

 
    329,356     

2.53%, 04/25/2037 (1)

    294,013   
    2,748,660     

2.61%, 05/25/2036 (1)

    2,520,568   
    1,504,633     

2.61%, 05/25/2036 (1)

    1,335,553   
   

Lehman XS Trust

 
    334,597     

0.39%, 07/25/2046 (1)

    265,040   
    1,334,785     

0.42%, 06/25/2047 (1)

    896,061   
    471,392     

1.03%, 09/25/2047 (1)

    376,884   
   

Merrill Lynch Mortgage Investors Trust

 
    384,847     

2.55%, 07/25/2035 (1)

    311,810   
   

Morgan Stanley Mortgage Loan Trust

 
    716,092     

2.76%, 05/25/2036 (1)

    519,945   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    1,152,408     

3.47%, 06/25/2036 (1)

    882,468   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 1.8% - (continued)  
            Whole Loan Collateral CMO - 1.2% - (continued)  
   

RBSGC Mortgage Pass-Through Certificates

 
  $        1,078,600     

6.25%, 01/25/2037

  $ 974,869   
   

Residential Accredit Loans, Inc.

 
    2,381,883     

0.48%, 04/25/2036 (1)

    1,705,809   
    1,116,983     

0.94%, 09/25/2046 (1)

    755,523   
    2,900,853     

1.39%, 11/25/2037 (1)

    1,852,148   
   

Residential Asset Securitization Trust

 
    453,493     

0.63%, 03/25/2035 (1)

    368,198   
    1,588,797     

6.25%, 11/25/2036

    1,165,138   
   

Residential Funding Mortgage Securities, Inc.

 
    5,399,941     

2.70%, 08/25/2035 (1)

    4,279,486   
    364,278     

3.03%, 04/25/2037 (1)

    317,544   
    1,199,363     

6.00%, 07/25/2037

    1,089,096   
   

Sequoia Mortgage Trust

 
    737,829     

0.45%, 01/20/2035 (1)

    698,286   
    330,540     

2.49%, 07/20/2037 (1)

    282,489   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    1,182,451     

0.37%, 07/25/2037 (1)

    862,613   
    764,490     

0.48%, 09/25/2034 (1)

    678,409   
   

Structured Asset Mortgage Investments II Trust

 
    1,250,531     

0.41%, 02/25/2036 (1)

    996,720   
   

WaMu Mortgage Pass-Through Certificates

 
    516,863     

0.95%, 12/25/2046 (1)

    414,877   
   

WaMu Mortgage Pass-Through Certificates Trust

 
    1,857,167     

1.12%, 07/25/2046 (1)

    1,541,086   
    1,359,055     

2.20%, 11/25/2046 (1)

    1,224,946   
     

 

 

 
        76,816,260   
     

 

 

 
            Whole Loan Collateral PAC - 0.0%  
   

Countrywide Alternative Loan Trust

 
    789,387     

0.68%, 12/25/2035 (1)

    566,225   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $110,449,776)

  $ 112,361,014   
     

 

 

 
CORPORATE BONDS - 43.5%  
            Advertising - 0.2%  
   

Getty Images, Inc.

 
    1,310,000     

7.00%, 10/15/2020 (2)

  $ 766,350   
   

Lamar Media Corp.

 
    625,000     

5.00%, 05/01/2023

    637,500   
    95,000     

5.88%, 02/01/2022

    100,462   
   

WPP Finance 2010

 
    8,195,000     

3.75%, 09/19/2024

    8,496,101   
     

 

 

 
        10,000,413   
     

 

 

 
            Aerospace/Defense - 0.3%  
   

BAE Systems Holdings, Inc.

 
    4,085,000     

3.80%, 10/07/2024 (2)

    4,267,416   
   

Lockheed Martin Corp.

 
    1,025,000     

3.80%, 03/01/2045

    985,843   
   

Raytheon Co.

 
    2,815,000     

3.15%, 12/15/2024

    2,895,438   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  35  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Aerospace/Defense - 0.3% - (continued)  
  $        2,600,000     

4.70%, 12/15/2041

  $ 2,893,704   
    1,250,000     

4.88%, 10/15/2040

    1,427,786   
    .     

United Technologies Corp

 
    1,925,000     

4.50%, 06/01/2042

    2,049,929   
    950,000     

6.13%, 07/15/2038

    1,238,528   
     

 

 

 
        15,758,644   
     

 

 

 
            Agriculture - 0.4%  
   

Altria Group, Inc.

 
    3,800,000     

2.85%, 08/09/2022

    3,781,171   
    60,000     

10.20%, 02/06/2039

    104,201   
   

Cargill, Inc.

 
    2,925,000     

4.10%, 11/01/2042 (2)

    2,963,364   
   

Imperial Tobacco Finance plc

 
    5,525,000     

2.05%, 02/11/2018 (2)

    5,552,305   
   

Philip Morris International, Inc.

 
    3,400,000     

3.25%, 11/10/2024

    3,462,584   
    3,085,000     

3.60%, 11/15/2023

    3,279,281   
    4,250,000     

4.25%, 11/10/2044

    4,288,832   
   

Reynolds American, Inc.

 
    1,345,000     

3.25%, 11/01/2022

    1,330,365   
    1,535,000     

6.15%, 09/15/2043

    1,824,414   
     

 

 

 
        26,586,517   
     

 

 

 
            Airlines - 0.0%  
   

Continental Airlines Class B Pass-Through Trust

 
    8,912     

6.90%, 10/19/2023

    9,591   
     

 

 

 
            Apparel - 0.0%  
   

NIKE, Inc.

 
    1,940,000     

3.63%, 05/01/2043

    1,907,878   
     

 

 

 
            Auto Manufacturers - 1.7%  
   

Daimler Finance NA LLC

 
    6,725,000     

2.25%, 03/02/2020 (2)

    6,742,472   
    7,300,000     

3.25%, 08/01/2024 (2)

    7,531,994   
   

FCA US LLC / CG Co-Issuer, Inc.

 
    1,790,000     

8.00%, 06/15/2019

    1,875,115   
    3,660,000     

8.25%, 06/15/2021

    4,039,725   
   

Ford Motor Co.

 
    2,370,000     

7.45%, 07/16/2031

    3,217,292   
   

Ford Motor Credit Co. LLC

 
    6,000,000     

1.68%, 09/08/2017

    6,001,464   
    11,365,000     

2.38%, 03/12/2019

    11,483,037   
    4,220,000     

2.60%, 11/04/2019

    4,261,955   
    4,445,000     

4.25%, 09/20/2022

    4,744,540   
    240,000     

5.00%, 05/15/2018

    261,244   
    2,835,000     

5.88%, 08/02/2021

    3,312,760   
   

General Motors Co.

 
    1,405,000     

4.88%, 10/02/2023

    1,521,643   
    1,431,000     

6.25%, 10/02/2043

    1,707,921   
   

General Motors Financial Co., Inc.

 
    10,575,000     

2.40%, 04/10/2018

    10,585,712   
    7,860,000     

3.50%, 07/10/2019

    8,049,591   
   

Harley-Davidson Financial Services, Inc.

 
    9,915,000     

2.40%, 09/15/2019 (2)

    10,070,299   
   

Hyundai Capital America

 
    6,020,000     

2.00%, 03/19/2018 (2)

    6,062,146   
   

Toyota Motor Credit Corp.

 
    6,900,000     

1.45%, 01/12/2018

    6,944,746   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Auto Manufacturers - 1.7% - (continued)  
   

Volkswagen Group of America Finance LLC

 
  $        8,215,000     

1.60%, 11/20/2017 (2)

  $ 8,262,425   
    2,345,000     

2.45%, 11/20/2019 (2)

    2,390,312   
     

 

 

 
        109,066,393   
     

 

 

 
            Auto Parts & Equipment - 0.1%  
   

American Axle & Manufacturing Holdings, Inc.

 
    295,000     

6.63%, 10/15/2022

    313,437   
   

Delphi Corp.

 
    1,875,000     

4.15%, 03/15/2024

    1,985,556   
    2,510,000     

5.00%, 02/15/2023

    2,704,525   
   

ZF North America Capital, Inc.

 
    520,000     

4.50%, 04/29/2022 (2)

    519,025   
    1,240,000     

4.75%, 04/29/2025

    1,243,100   
     

 

 

 
        6,765,643   
     

 

 

 
            Beverages - 0.3%  
   

Anheuser-Busch InBev Worldwide, Inc.

 
    2,890,000     

3.75%, 07/15/2042

    2,742,853   
    2,000,000     

4.63%, 02/01/2044

    2,174,180   
    3,240,000     

5.38%, 01/15/2020

    3,713,043   
    500,000     

8.20%, 01/15/2039

    779,741   
   

Constellation Brands, Inc.

 
    190,000     

4.25%, 05/01/2023

    195,462   
    585,000     

6.00%, 05/01/2022

    669,825   
   

Heineken N.V.

 
    3,585,000     

3.40%, 04/01/2022 (2)

    3,708,690   
   

Molson Coors Brewing Co.

 
    3,970,000     

5.00%, 05/01/2042

    4,131,992   
   

SABMiller Holdings, Inc.

 
    1,475,000     

3.75%, 01/15/2022 (2)

    1,554,802   
    800,000     

4.95%, 01/15/2042 (2)

    876,558   
     

 

 

 
        20,547,146   
     

 

 

 
            Biotechnology - 0.5%  
   

Amgen, Inc.

 
    5,070,000     

3.63%, 05/22/2024

    5,283,239   
    4,340,000     

5.15%, 11/15/2041

    4,692,586   
    1,475,000     

6.90%, 06/01/2038

    1,962,919   
   

Celgene Corp.

 
    2,945,000     

3.63%, 05/15/2024

    3,047,981   
    6,190,000     

4.63%, 05/15/2044

    6,337,997   
   

Gilead Sciences, Inc.

 
    1,565,000     

2.05%, 04/01/2019

    1,587,226   
    1,255,000     

3.50%, 02/01/2025

    1,301,588   
    1,765,000     

3.70%, 04/01/2024

    1,856,399   
    3,700,000     

4.40%, 12/01/2021

    4,146,098   
    2,835,000     

4.50%, 02/01/2045

    2,986,522   
     

 

 

 
        33,202,555   
     

 

 

 
            Chemicals - 0.5%  
   

Agrium, Inc.

 
    1,650,000     

3.15%, 10/01/2022

    1,647,174   
    1,520,000     

3.38%, 03/15/2025

    1,507,227   
    4,060,000     

4.13%, 03/15/2035

    3,922,959   
   

CF Industries Holdings, Inc.

 
    1,235,000     

3.45%, 06/01/2023

    1,239,665   
    3,000,000     

5.15%, 03/15/2034

    3,206,124   
    3,885,000     

5.38%, 03/15/2044

    4,237,746   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  36  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Chemicals - 0.5% - (continued)  
   

Ineos Group Holdings plc

 
  $        1,625,000     

5.88%, 02/15/2019 (2)

  $ 1,645,312   
    4,290,000     

6.13%, 08/15/2018 (2)

    4,365,075   
   

LyondellBasell Industries

 
    4,870,000     

4.63%, 02/26/2055

    4,693,404   
   

Monsanto Co.

 
    2,900,000     

4.20%, 07/15/2034

    3,018,227   
     

 

 

 
        29,482,913   
     

 

 

 
            Commercial Banks - 11.5%  
   

Abbey National Treasury Services plc

 
    6,630,000     

2.35%, 09/10/2019

    6,714,267   
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        2,800,000     

7.00%, 02/19/2019 (1)(3)(4)

    3,222,579   
  $        800,000     

9.00%, 05/09/2018 (1)(3)(4)

    865,000   
   

Banco de Credito del Peru

 
    652,000     

2.75%, 01/09/2018 (2)

    658,520   
   

Bank of America Corp.

 
    7,100,000     

1.65%, 03/26/2018

    7,109,209   
    1,410,000     

2.60%, 01/15/2019

    1,431,759   
    14,875,000     

4.00%, 01/22/2025

    14,743,297   
    4,260,000     

4.10%, 07/24/2023

    4,481,200   
    2,635,000     

4.20%, 08/26/2024

    2,662,035   
    800,000     

4.88%, 04/01/2044

    871,374   
    5,425,000     

5.63%, 07/01/2020

    6,211,072   
    915,000     

5.65%, 05/01/2018

    1,011,883   
    2,990,000     

5.75%, 12/01/2017

    3,284,093   
    2,840,000     

5.88%, 01/05/2021

    3,298,964   
    4,960,000     

6.00%, 09/01/2017

    5,429,424   
    3,970,000     

7.63%, 06/01/2019

    4,769,618   
   

Bank of New York Mellon Corp.

 
    9,300,000     

2.15%, 02/24/2020

    9,336,289   
    3,810,000     

3.00%, 02/24/2025

    3,822,463   
   

Bank of Tokyo-Mitsubishi UFJ Ltd.

 
    5,925,000     

1.55%, 09/09/2016 (2)

    5,957,362   
   

Barclays Bank plc

 
    15,416,000     

6.05%, 12/04/2017 (2)

    16,897,493   
    2,815,000     

8.25%, 12/15/2018 (1)(3)

    2,998,532   
   

Barclays plc

 
    6,385,000     

3.65%, 03/16/2025

    6,300,443   
   

BBVA Banco Continental S.A.

 
    475,000     

3.25%, 04/08/2018 (2)

    492,100   
   

BBVA International Preferred SAU

 
    275,000     

5.92%, 04/18/2017 (1)(3)

    284,350   
   

BNP Paribas S.A.

 
    8,430,000     

2.38%, 09/14/2017

    8,612,442   
    3,650,000     

2.40%, 12/12/2018

    3,719,146   
   

BPCE S.A.

 
    2,385,000     

2.50%, 12/10/2018

    2,445,085   
    4,250,000     

2.50%, 07/15/2019

    4,308,591   
    3,840,000     

5.15%, 07/21/2024 (2)

    4,033,398   
    4,430,000     

5.70%, 10/22/2023 (2)

    4,835,730   
   

Capital One Financial Corp.

 
    3,075,000     

6.15%, 09/01/2016

    3,261,929   
   

Capital One NA/Mclean

 
    4,600,000     

2.40%, 09/05/2019

    4,618,000   
   

CIT Group, Inc.

 
    335,000     

5.00%, 05/15/2017

    346,725   
    686,000     

5.25%, 03/15/2018

    711,039   
    545,000     

5.38%, 05/15/2020

    577,019   
    3,895,000     

5.50%, 02/15/2019 (2)

    4,075,144   
    70,000     

6.63%, 04/01/2018 (2)

    75,075   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Commercial Banks - 11.5% - (continued)  
   

Citigroup, Inc.

 
  $        9,875,000     

2.40%, 02/18/2020

  $ 9,880,303   
    6,275,000     

2.50%, 09/26/2018

    6,395,191   
    7,000,000     

2.55%, 04/08/2019

    7,112,021   
    7,450,000     

4.30%, 11/20/2026

    7,540,719   
    7,960,000     

5.50%, 09/13/2025

    8,909,445   
    1,485,000     

6.00%, 10/31/2033

    1,717,555   
    4,850,000     

6.13%, 05/15/2018

    5,451,075   
    4,900,000     

6.13%, 08/25/2036

    5,781,157   
    1,620,000     

6.68%, 09/13/2043

    2,078,585   
   

Compass Bank

 
    5,550,000     

1.85%, 09/29/2017

    5,557,093   
   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

 
    5,925,000     

2.25%, 01/14/2019

    6,011,333   
    3,835,000     

5.75%, 12/01/2043

    4,606,414   
   

Credit Agricole S.A.

 
    3,485,000     

4.38%, 03/17/2025 (2)

    3,447,111   
    890,000     

7.88%, 01/23/2024 (1)(2)(3)

    951,702   
   

Credit Suisse Group AG

 
    1,475,000     

7.50%, 12/11/2023 (1)(2)(3)

    1,578,250   
   

Credit Suisse Group Funding Guernsey Ltd.

 
    7,870,000     

3.75%, 03/26/2025 (2)

    7,846,665   
   

Credit Suisse New York

 
    2,680,000     

3.63%, 09/09/2024

    2,743,856   
    3,685,000     

5.40%, 01/14/2020

    4,137,348   
   

Deutsche Bank AG

 
    4,910,000     

4.30%, 05/24/2028 (1)

    4,768,936   
    5,765,000     

4.50%, 04/01/2025

    5,644,869   
   

Discover Bank/Greenwood DE

 
    6,520,000     

4.20%, 08/08/2023

    6,798,991   
   

Fifth Third Bancorp

 
    4,210,000     

2.30%, 03/01/2019

    4,251,818   
    2,750,000     

2.88%, 10/01/2021

    2,775,869   
    2,780,000     

4.30%, 01/16/2024

    2,957,745   
    3,195,000     

5.45%, 01/15/2017

    3,410,691   
    1,300,000     

8.25%, 03/01/2038

    1,924,693   
   

Goldman Sachs Group, Inc.

 
    450,000     

1.44%, 04/23/2020 (1)

    455,172   
    6,425,000     

1.86%, 11/29/2023 (1)

    6,542,655   
    1,925,000     

2.38%, 01/22/2018

    1,959,105   
    3,940,000     

2.60%, 04/23/2020

    3,956,643   
    2,500,000     

2.90%, 07/19/2018

    2,576,268   
    6,345,000     

3.50%, 01/23/2025

    6,346,916   
    3,180,000     

3.63%, 02/07/2016

    3,244,945   
    3,315,000     

4.00%, 03/03/2024

    3,466,532   
    2,625,000     

4.80%, 07/08/2044

    2,790,223   
    4,200,000     

5.38%, 03/15/2020

    4,752,913   
    4,740,000     

5.75%, 01/24/2022

    5,500,813   
    4,550,000     

6.15%, 04/01/2018

    5,094,881   
    3,149,000     

6.25%, 02/01/2041

    3,974,948   
    2,470,000     

6.45%, 05/01/2036

    3,001,329   
    7,545,000     

6.75%, 10/01/2037

    9,477,327   
    2,921,000     

7.50%, 02/15/2019

    3,465,959   
   

HBOS Capital Funding L.P.

 
    750,000     

6.85%, 06/23/2015 (3)(4)

    769,202   
   

HSBC Holdings plc

 
    7,655,000     

4.25%, 03/14/2024

    7,984,448   
    1,665,000     

5.10%, 04/05/2021

    1,890,636   
    1,000,000     

6.50%, 09/15/2037

    1,256,948   
    7,800,000     

6.80%, 06/01/2038

    10,236,151   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  37  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Commercial Banks - 11.5% - (continued)  
   

HSBC USA, Inc.

 
  $        1,295,000     

1.63%, 01/16/2018

  $ 1,300,152   
    6,705,000     

2.35%, 03/05/2020

    6,719,335   
   

Huntington National Bank

 
    10,000,000     

1.70%, 02/26/2018

    10,018,880   
   

ING Bank N.V.

 
    6,310,000     

1.80%, 03/16/2018 (2)

    6,342,717   
   

ING Groep N.V.

 
    725,000     

6.00%, 04/16/2020 (1)(3)

    721,828   
    575,000     

6.50%, 04/16/2025 (1)(3)

    571,766   
   

JP Morgan Chase & Co.

 
    3,375,000     

1.63%, 05/15/2018

    3,374,622   
    6,925,000     

1.70%, 03/01/2018

    6,950,186   
    3,625,000     

3.13%, 01/23/2025

    3,576,719   
    2,270,000     

3.25%, 09/23/2022

    2,303,392   
    9,220,000     

3.63%, 05/13/2024

    9,491,464   
    2,350,000     

3.88%, 02/01/2024

    2,459,799   
    4,250,000     

3.88%, 09/10/2024

    4,292,789   
    5,300,000     

4.35%, 08/15/2021

    5,794,432   
    2,220,000     

4.63%, 05/10/2021

    2,460,000   
    4,480,000     

4.85%, 02/01/2044

    4,970,529   
    785,000     

5.50%, 10/15/2040

    929,065   
    2,970,000     

5.63%, 08/16/2043

    3,464,000   
    9,195,000     

6.00%, 01/15/2018

    10,244,949   
    1,000,000     

6.40%, 05/15/2038

    1,298,787   
   

JP Morgan Chase Bank NA

 
    1,886,000     

6.00%, 07/05/2017

    2,067,790   
   

KeyCorp

 
    10,750,000     

2.30%, 12/13/2018

    10,932,417   
   

Lloyds Bank plc

 
    3,725,000     

2.35%, 09/05/2019

    3,764,463   
    165,000     

6.50%, 09/14/2020 (2)

    193,536   
   

Merrill Lynch & Co., Inc.

 
    2,496,000     

5.70%, 05/02/2017

    2,682,646   
    4,890,000     

6.05%, 05/16/2016

    5,122,280   
    4,515,000     

6.88%, 04/25/2018

    5,149,321   
    11,230,000     

7.75%, 05/14/2038

    15,549,294   
   

Mizuho Bank Ltd.

 
    5,000,000     

0.72%, 09/25/2017 (1)(2)

    4,990,210   
    5,340,000     

2.45%, 04/16/2019 (2)

    5,377,535   
   

Morgan Stanley

 
    5,030,000     

1.75%, 02/25/2016

    5,066,261   
    5,735,000     

2.13%, 04/25/2018

    5,781,431   
    7,450,000     

2.50%, 01/24/2019

    7,556,595   
    4,585,000     

2.65%, 01/27/2020

    4,637,356   
    11,230,000     

3.70%, 10/23/2024

    11,486,145   
    1,000,000     

3.75%, 02/25/2023

    1,035,180   
    6,800,000     

3.95%, 04/23/2027

    6,675,274   
    4,270,000     

4.10%, 05/22/2023

    4,380,132   
    1,725,000     

4.30%, 01/27/2045

    1,696,249   
    4,620,000     

4.35%, 09/08/2026

    4,706,528   
    1,770,000     

4.88%, 11/01/2022

    1,917,483   
    1,550,000     

5.50%, 01/26/2020

    1,755,759   
    2,371,000     

5.55%, 04/27/2017

    2,556,801   
    3,361,000     

5.75%, 01/25/2021

    3,897,584   
    1,250,000     

6.38%, 07/24/2042

    1,615,451   
    2,460,000     

6.63%, 04/01/2018

    2,786,727   
    2,600,000     

7.30%, 05/13/2019

    3,087,586   
   

PNC Bank NA

 
    6,825,000     

1.50%, 02/23/2018

    6,862,442   
    13,070,000     

2.40%, 10/18/2019

    13,278,924   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Commercial Banks - 11.5% - (continued)  
  $        2,465,000     

2.70%, 11/01/2022

  $ 2,440,079   
   

PNC Financial Services Group, Inc.

 
    1,240,000     

2.85%, 11/09/2022 (1)

    1,243,177   
    4,310,000     

3.90%, 04/29/2024

    4,474,069   
   

Provident Funding Associates L.P.

 
    1,020,000     

6.75%, 06/15/2021 (2)

    971,550   
   

Royal Bank of Scotland Group plc

 
    2,970,000     

5.13%, 05/28/2024

    3,067,544   
    1,260,000     

6.99%, 10/05/2017 (1)(2)(3)

    1,493,100   
    1,400,000     

7.64%, 09/30/2017 (1)(3)

    1,533,000   
    725,000     

9.50%, 03/16/2022 (4)

    813,785   
   

Santander Bank NA

 
    4,840,000     

2.00%, 01/12/2018

    4,849,893   
   

Santander Holdings USA, Inc.

 
    4,900,000     

2.65%, 04/17/2020

    4,870,090   
   

Santander UK plc

 
    2,515,000     

5.00%, 11/07/2023 (2)

    2,663,289   
   

Societe Generale S.A.

 
    2,535,000     

2.63%, 10/01/2018

    2,598,517   
    2,670,000     

5.00%, 01/17/2024 (2)

    2,754,217   
    875,000     

6.00%, 01/27/2020 (1)(2)(3)

    833,963   
    2,855,000     

7.88%, 12/18/2023 (1)(2)(3)

    2,962,063   
    1,055,000     

8.25%, 11/29/2018 (3)(4)

    1,120,938   
   

Standard Bank PLC

 
    100,000     

8.13%, 12/02/2019 (4)

    114,150   
   

Standard Chartered plc

 
    5,975,000     

1.50%, 09/08/2017 (2)

    5,955,970   
   

State Street Corp.

 
    1,445,000     

3.10%, 05/15/2023

    1,453,604   
    3,340,000     

3.70%, 11/20/2023

    3,541,926   
   

Sumitomo Mitsui Financial Group, Inc.

 
    5,800,000     

4.44%, 04/02/2024 (2)

    6,168,457   
   

SunTrust Banks, Inc.

 
    4,940,000     

2.35%, 11/01/2018

    5,018,936   
    3,700,000     

2.50%, 05/01/2019

    3,753,480   
   

Swedbank AB

 
    7,071,000     

2.38%, 02/27/2019 (2)

    7,182,679   
   

UBS AG Stamford CT

 
    5,125,000     

1.80%, 03/26/2018

    5,138,832   
    2,850,000     

5.88%, 07/15/2016

    3,006,850   
   

VTB Bank OJSC Via VTB Capital S.A.

 
    1,800,000     

6.95%, 10/17/2022 (4)

    1,649,844   
   

Wachovia Corp.

 
    2,850,000     

5.50%, 08/01/2035

    3,295,988   
   

Wells Fargo & Co.

 
    8,560,000     

2.13%, 04/22/2019

    8,650,308   
    1,510,000     

2.15%, 01/30/2020

    1,509,799   
    7,100,000     

3.00%, 02/19/2025

    7,001,338   
    4,965,000     

3.45%, 02/13/2023

    5,059,648   
    3,350,000     

3.90%, 05/01/2045

    3,245,808   
    8,225,000     

4.10%, 06/03/2026

    8,524,735   
    4,080,000     

4.13%, 08/15/2023

    4,338,382   
    759,000     

4.48%, 01/16/2024

    820,782   
    3,000,000     

4.60%, 04/01/2021

    3,348,603   
    3,055,000     

4.65%, 11/04/2044

    3,119,002   
    60,000     

5.38%, 11/02/2043

    67,957   
    3,968,000     

5.61%, 01/15/2044

    4,617,228   
     

 

 

 
        736,664,489   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

38

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Commercial Services - 0.4%      
   

Catholic Health Initiatives

 
  $        1,290,000     

2.60%, 08/01/2018

  $ 1,323,735   
   

Deluxe Corp.

 
    640,000     

6.00%, 11/15/2020

    675,200   
   

ERAC USA Finance Co.

 
    1,370,000     

3.30%, 10/15/2022 (2)

    1,388,453   
    1,000,000     

5.63%, 03/15/2042 (2)

    1,155,264   
   

Hertz Corp.

 
    195,000     

5.88%, 10/15/2020

    198,413   
    130,000     

6.25%, 10/15/2022

    134,550   
    275,000     

6.75%, 04/15/2019

    284,567   
   

Lender Processing Services, Inc. / Black Knight Lending Solutions, Inc.

 
    330,000     

5.75%, 04/15/2023

    350,625   
   

MasterCard, Inc.

 
    8,525,000     

3.38%, 04/01/2024

    8,925,411   
   

Quad/Graphics, Inc.

 
    2,605,000     

7.00%, 05/01/2022

    2,508,875   
   

Service Corp. International

 
    960,000     

4.50%, 11/15/2020

    981,600   
    1,185,000     

5.38%, 01/15/2022

    1,256,100   
    120,000     

6.75%, 04/01/2016

    124,800   
    885,000     

7.63%, 10/01/2018

    1,022,175   
   

Servicemaster Co.

 
    3,068,000     

7.00%, 08/15/2020

    3,244,410   
   

Sotheby’s

 
    595,000     

5.25%, 10/01/2022 (2)

    593,512   
     

 

 

 
        24,167,690   
     

 

 

 
            Construction Materials - 0.3%      
   

Associated Materials LLC

 
    1,450,000     

9.13%, 11/01/2017

    1,232,500   
   

Building Materials Corp. of America

 
    4,120,000     

5.38%, 11/15/2024 (2)

    4,223,000   
    200,000     

6.75%, 05/01/2021 (2)

    212,500   
   

Cemex Finance LLC

 
    1,660,000     

6.00%, 04/01/2024 (2)

    1,702,496   
   

Cemex S.A.B. de C.V.

 
    2,840,000     

5.70%, 01/11/2025 (2)

    2,846,248   
    460,000     

6.13%, 05/05/2025 (2)

    472,052   
   

Masco Corp.

 
    155,000     

6.13%, 10/03/2016

    163,603   
    775,000     

6.50%, 08/15/2032

    829,250   
    310,000     

7.13%, 03/15/2020

    361,925   
    160,000     

7.75%, 08/01/2029

    186,400   
   

Nortek, Inc.

 
    2,065,000     

8.50%, 04/15/2021

    2,230,200   
   

Ply Gem Industries, Inc.

 
    3,225,000     

6.50%, 02/01/2022

    3,160,500   
     

 

 

 
        17,620,674   
     

 

 

 
            Distribution/Wholesale - 0.0%  
   

American Builders & Contractors Supply Co., Inc.

 
    190,000     

5.63%, 04/15/2021 (2)

    195,700   
     

 

 

 
            Diversified Financial Services - 1.9%  
   

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
    1,180,000     

4.50%, 05/15/2021 (2)

    1,241,950   
   

Air Lease Corp.

 
    425,000     

2.13%, 01/15/2018

    422,875   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Diversified Financial Services - 1.9% - (continued)  
  $        7,770,000     

4.50%, 01/15/2016

  $ 7,935,112   
    5,495,000     

5.63%, 04/01/2017

    5,872,781   
   

Ally Financial, Inc.

 
    4,895,000     

5.13%, 09/30/2024

    5,078,563   
   

American Express Co.

 
    5,127,000     

2.65%, 12/02/2022

    5,045,188   
    4,700,000     

7.00%, 03/19/2018

    5,400,455   
   

American Express Credit Corp.

 
    4,165,000     

0.57%, 09/22/2017 (1)

    4,154,904   
   

Ameriprise Financial, Inc.

 
    3,310,000     

4.00%, 10/15/2023

    3,556,317   
   

Bear Stearns Cos. LLC

 
    1,210,000     

7.25%, 02/01/2018

    1,387,390   
   

Capital One Bank

 
    5,000,000     

1.30%, 06/05/2017

    4,981,280   
   

Discover Financial Services

 
    960,000     

5.20%, 04/27/2022

    1,062,350   
   

FMR LLC

 
    3,825,000     

4.95%, 02/01/2033 (2)

    4,195,807   
   

General Electric Capital Corp.

 
    7,500,000     

3.45%, 05/15/2024

    7,945,387   
    4,625,000     

4.65%, 10/17/2021

    5,251,993   
    725,000     

5.55%, 05/04/2020

    842,971   
    4,225,000     

5.88%, 01/14/2038

    5,488,279   
    1,890,000     

6.00%, 08/07/2019

    2,209,274   
    1,000,000     

6.25%, 12/15/2022 (1)(3)

    1,125,000   
    4,530,000     

6.75%, 03/15/2032

    6,230,086   
    5,130,000     

6.88%, 01/10/2039

    7,433,421   
   

International Lease Finance Corp.

 
    455,000     

5.88%, 04/01/2019

    494,813   
    2,095,000     

5.88%, 08/15/2022

    2,362,113   
    3,350,000     

6.25%, 05/15/2019

    3,701,750   
    350,000     

7.13%, 09/01/2018 (2)

    396,375   
    380,000     

8.75%, 03/15/2017

    422,218   
   

Macquarie Group Ltd.

 
    5,450,000     

3.00%, 12/03/2018 (2)

    5,600,502   
   

MassMutual Global Funding II

 
    399,000     

2.10%, 08/02/2018 (2)

    406,432   
   

Nationstar Mortgage LLC / Nationstar Capital Corp.

 
    1,765,000     

6.50%, 08/01/2018

    1,795,888   
    1,135,000     

6.50%, 07/01/2021

    1,106,625   
   

Navient Corp.

 
    2,340,000     

5.88%, 10/25/2024

    2,211,300   
    465,000     

8.00%, 03/25/2020

    517,889   
    395,000     

8.45%, 06/15/2018

    440,702   
   

Synchrony Financial

 
    2,400,000     

2.70%, 02/03/2020

    2,404,922   
    3,810,000     

3.00%, 08/15/2019

    3,886,486   
    5,410,000     

3.75%, 08/15/2021

    5,583,742   
   

TMX Finance LLC

 
    1,130,000     

8.50%, 09/15/2018 (2)

    807,950   
     

 

 

 
        119,001,090   
     

 

 

 
            Electric - 2.1%      
   

AES Panama S.A.

 
    15,000     

6.35%, 12/21/2016 (4)

    15,598   
   

Berkshire Hathaway Energy Co.

 
    500,000     

5.95%, 05/15/2037

    623,216   
   

Centrais Electricas Brasileiras S.A.

 
    960,000     

5.75%, 10/27/2021 (4)

    892,800   
    150,000     

6.88%, 07/30/2019

    146,955   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  39  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Electric - 2.1% - (continued)      
   

Comision Federal de Electricidad

 
  $        370,000     

4.88%, 01/15/2024 (2)

  $ 398,490   
   

Consolidated Edison Co. of New York, Inc.

 
    2,945,000     

3.30%, 12/01/2024

    3,053,859   
    1,400,000     

4.20%, 03/15/2042

    1,450,316   
   

Dominion Resources, Inc.

 
    2,895,000     

4.70%, 12/01/2044

    3,128,595   
    3,390,000     

7.00%, 06/15/2038

    4,605,308   
   

DPL, Inc.

 
    3,035,000     

7.25%, 10/15/2021

    3,277,800   
   

Duke Energy Carolinas LLC

 
    3,270,000     

3.75%, 06/01/2045

    3,257,414   
    3,000,000     

5.30%, 02/15/2040

    3,737,154   
   

Duke Energy Corp.

 
    1,350,000     

3.55%, 09/15/2021

    1,429,663   
    2,935,000     

3.75%, 04/15/2024

    3,121,866   
    3,000,000     

3.95%, 10/15/2023

    3,226,998   
   

Duke Energy Indiana, Inc.

 
    1,870,000     

4.90%, 07/15/2043

    2,195,184   
   

Duke Energy Progress, Inc.

 
    6,475,000     

2.80%, 05/15/2022

    6,599,223   
    2,060,000     

4.10%, 05/15/2042

    2,176,666   
    1,940,000     

4.15%, 12/01/2044

    2,058,571   
   

Dynegy, Inc.

 
    1,520,000     

5.88%, 06/01/2023

    1,501,000   
   

E.CL S.A.

 
    100,000     

5.63%, 01/15/2021 (4)

    111,259   
   

EDP Finance B.V.

 
    760,000     

5.25%, 01/14/2021 (2)

    818,360   
   

Electricitie De France

 
    3,095,000     

4.88%, 01/22/2044 (2)

    3,364,754   
    5,450,000     

5.63%, 01/22/2024 (1)(2)(3)

    5,779,725   
   

Eversource Energy

 
    2,775,000     

2.80%, 05/01/2023

    2,728,874   
    2,255,000     

3.15%, 01/15/2025

    2,255,710   
   

Exelon Generation Co. LLC

 
    2,725,000     

4.25%, 06/15/2022

    2,856,198   
   

Florida Power & Light Co.

 
    4,930,000     

3.25%, 06/01/2024

    5,149,326   
    1,300,000     

4.13%, 02/01/2042

    1,384,117   
   

GenOn Americas Generation LLC

 
    1,180,000     

8.50%, 10/01/2021

    1,150,500   
    1,545,000     

9.13%, 05/01/2031

    1,469,681   
   

Israel Electric Corp. Ltd.

 
    1,180,000     

5.00%, 11/12/2024 (2)(4)

    1,252,275   
   

MidAmerican Energy Co.

 
    2,598,000     

4.40%, 10/15/2044

    2,843,277   
   

Nevada Power Co.

 
    2,140,000     

6.50%, 08/01/2018

    2,466,772   
   

NiSource Finance Corp.

 
    1,450,000     

3.85%, 02/15/2023

    1,514,983   
    3,450,000     

4.80%, 02/15/2044

    3,802,238   
    1,450,000     

5.25%, 02/15/2043

    1,685,151   
   

Oncor Electric Delivery Co. LLC

 
    2,000,000     

4.10%, 06/01/2022

    2,176,562   
   

Pacific Gas & Electric Co.

 
    2,285,000     

3.75%, 02/15/2024

    2,427,977   
    2,525,000     

4.30%, 03/15/2045

    2,654,757   
    2,400,000     

6.05%, 03/01/2034

    3,075,648   
    725,000     

8.25%, 10/15/2018

    881,398   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Electric - 2.1% - (continued)      
   

PacifiCorp

 
  $        840,000     

4.10%, 02/01/2042

  $ 882,913   
   

Perusahaan Listrik Negara PT

 
    200,000     

5.50%, 11/22/2021 (2)

    217,000   
   

Potomac Electric Power Co.

 
    2,700,000     

4.15%, 03/15/2043

    2,845,260   
   

PPL Capital Funding, Inc.

 
    4,495,000     

3.95%, 03/15/2024

    4,807,834   
   

Progress Energy, Inc.

 
    1,750,000     

7.00%, 10/30/2031

    2,313,608   
    3,051,000     

7.05%, 03/15/2019

    3,624,091   
    540,000     

7.75%, 03/01/2031

    762,200   
   

PSEG Power LLC

 
    975,000     

8.63%, 04/15/2031

    1,396,730   
   

Public Service Co. of Colorado

 
    1,930,000     

3.60%, 09/15/2042

    1,880,445   
   

San Diego Gas & Electric Co.

 
    4,770,000     

3.60%, 09/01/2023

    5,074,073   
   

Southern California Edison Co.

 
    745,000     

3.60%, 02/01/2045

    719,748   
    925,000     

4.50%, 09/01/2040

    1,021,983   
    500,000     

6.00%, 01/15/2034

    652,508   
    1,010,000     

6.05%, 03/15/2039

    1,339,386   
   

Southern Power Co.

 
    1,615,000     

5.25%, 07/15/2043

    1,838,072   
   

Tampa Electric Co.

 
    2,095,000     

2.60%, 09/15/2022

    2,081,638   
   

Texas Competitive Electric Holdings Co. LLC

 
    1,750,000     

11.50%, 10/01/2020 (2)(5)

    1,150,625   
   

Virginia Electric & Power Co.

 
    665,000     

4.45%, 02/15/2044

    726,599   
     

 

 

 
        132,080,931   
     

 

 

 
            Electronics - 0.0%      
   

Thermo Fisher Scientific, Inc.

 
    2,895,000     

1.30%, 02/01/2017

    2,897,194   
     

 

 

 
            Engineering & Construction - 0.1%      
   

Abengoa Finance

 
  EUR        1,545,000     

6.00%, 03/31/2021 (2)

    1,622,041   
  $        1,075,000     

7.75%, 02/01/2020 (2)

    1,070,700   
   

Abengoa Greenfield S.A.

 
    1,570,000     

6.50%, 10/01/2019 (2)

    1,471,875   
   

Aguila 3 S.A.

 
    165,000     

7.88%, 01/31/2018 (2)

    166,650   
   

SBA Tower Trust

 
    1,050,000     

2.93%, 12/15/2042 (2)

    1,067,724   
     

 

 

 
        5,398,990   
     

 

 

 
            Entertainment - 0.0%      
   

AMC Entertainment, Inc.

 
    2,430,000     

9.75%, 12/01/2020

    2,642,625   
     

 

 

 
            Environmental Control - 0.5%      
   

Clean Harbors, Inc.

 
    120,000     

5.13%, 06/01/2021

    122,400   
    150,000     

5.25%, 08/01/2020

    154,500   
   

Republic Services, Inc.

 
    6,550,000     

3.55%, 06/01/2022

    6,780,717   
    9,221,000     

5.00%, 03/01/2020

    10,269,501   
   

Waste Management, Inc.

 
    950,000     

3.13%, 03/01/2025

    948,307   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  40  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Environmental Control - 0.5% - (continued)  
  $        11,390,000     

3.50%, 05/15/2024

  $ 11,759,378   
    1,535,000     

3.90%, 03/01/2035

    1,528,478   
     

 

 

 
        31,563,281   
     

 

 

 
            Food - 0.4%  
   

Albertson’s Holdings LLC

 
    660,000     

7.75%, 10/15/2022 (2)

    719,400   
   

ConAgra Foods, Inc.

 
    2,000,000     

7.13%, 10/01/2026

    2,467,114   
   

JM Smucker Co.

 
    3,245,000     

2.50%, 03/15/2020 (2)

    3,266,803   
    1,605,000     

3.50%, 03/15/2025 (2)

    1,616,188   
    1,675,000     

4.38%, 03/15/2045 (2)

    1,667,821   
   

Kroger Co.

 
    6,275,000     

2.95%, 11/01/2021

    6,384,304   
    1,580,000     

5.15%, 08/01/2043

    1,790,502   
   

Mondelez International, Inc.

 
    4,150,000     

4.00%, 02/01/2024

    4,444,202   
   

Sysco Corp.

 
    1,865,000     

4.50%, 10/02/2044

    1,929,246   
   

TreeHouse Foods, Inc.

 
    2,340,000     

4.88%, 03/15/2022

    2,410,200   
     

 

 

 
        26,695,780   
     

 

 

 
            Food Service - 0.1%  
   

Aramark Services, Inc.

 
    3,660,000     

5.75%, 03/15/2020

    3,815,550   
     

 

 

 
            Forest Products & Paper - 0.3%  
   

International Paper Co.

 
    12,650,000     

3.65%, 06/15/2024

    12,797,512   
    500,000     

7.30%, 11/15/2039

    649,533   
   

Tembec Industries, Inc.

 
    2,915,000     

9.00%, 12/15/2019 (2)

    2,973,300   
     

 

 

 
        16,420,345   
     

 

 

 
            Gas - 0.1%  
   

GNL Quintero S.A.

 
    380,000     

4.63%, 07/31/2029 (2)

    396,710   
   

Sempra Energy

 
    5,000,000     

3.55%, 06/15/2024

    5,166,970   
    3,135,000     

4.05%, 12/01/2023

    3,345,897   
     

 

 

 
        8,909,577   
     

 

 

 
            Healthcare-Products - 0.4%  
   

Alere, Inc.

 
    2,815,000     

6.50%, 06/15/2020

    2,927,600   
   

Biomet, Inc.

 
    250,000     

6.50%, 08/01/2020

    264,688   
    755,000     

6.50%, 10/01/2020

    790,862   
   

Medtronic, Inc.

 
    2,615,000     

3.15%, 03/15/2022 (2)

    2,701,175   
    4,500,000     

3.50%, 03/15/2025 (2)

    4,653,418   
    5,016,000     

4.38%, 03/15/2035 (2)

    5,299,700   
    2,840,000     

4.63%, 03/15/2045 (2)

    3,059,032   
   

Zimmer Holdings, Inc.

 
    6,415,000     

1.45%, 04/01/2017

    6,433,251   
     

 

 

 
        26,129,726   
     

 

 

 
            Healthcare-Services - 1.3%  
   

Aetna, Inc.

 
    1,600,000     

4.50%, 05/15/2042

    1,724,371   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Healthcare-Services - 1.3% - (continued)  
   

Amsurg Corp.

 
  $        1,860,000     

5.63%, 07/15/2022

  $ 1,888,272   
   

Anthem, Inc.

 
    1,365,000     

3.13%, 05/15/2022

    1,377,817   
    3,100,000     

3.30%, 01/15/2023

    3,132,336   
    3,175,000     

3.50%, 08/15/2024

    3,247,682   
    3,315,000     

4.63%, 05/15/2042

    3,469,472   
    1,000,000     

5.85%, 01/15/2036

    1,184,876   
    2,330,000     

6.38%, 06/15/2037

    2,918,549   
   

Cigna Corp.

 
    9,065,000     

3.25%, 04/15/2025

    9,090,418   
    785,000     

5.38%, 02/15/2042

    947,801   
    900,000     

5.88%, 03/15/2041

    1,142,930   
   

Community Health Systems, Inc.

 
    545,000     

5.13%, 08/15/2018

    565,438   
    6,330,000     

6.88%, 02/01/2022

    6,717,713   
    1,440,000     

7.13%, 07/15/2020

    1,544,400   
   

Coventry Health Care, Inc.

 
    2,060,000     

5.45%, 06/15/2021

    2,393,149   
   

Dignity Health

 
    1,515,000     

2.64%, 11/01/2019

    1,535,834   
    2,150,000     

5.27%, 11/01/2064

    2,313,015   
   

Envision Healthcare Corp.

 
    600,000     

5.13%, 07/01/2022 (2)

    618,000   
   

HCA Holdings, Inc.

 
    2,785,000     

6.25%, 02/15/2021

    3,041,220   
   

HCA, Inc.

 
    1,955,000     

5.38%, 02/01/2025

    2,052,750   
    175,000     

5.88%, 03/15/2022

    195,781   
    1,315,000     

5.88%, 05/01/2023

    1,421,844   
    490,000     

6.50%, 02/15/2016

    507,763   
    1,670,000     

6.50%, 02/15/2020

    1,903,800   
    526,000     

7.50%, 11/15/2095

    512,850   
   

Humana, Inc.

 
    5,475,000     

3.85%, 10/01/2024

    5,691,159   
    3,360,000     

4.95%, 10/01/2044

    3,608,321   
   

inVentiv Health, Inc.

 
    340,000     

9.00%, 01/15/2018 (2)

    357,000   
   

Laboratory Corp. of America Holdings

 
    1,000,000     

3.20%, 02/01/2022

    1,007,473   
    2,725,000     

4.70%, 02/01/2045

    2,741,819   
   

Memorial Sloan-Kettering Cancer Center

 
    695,000     

5.00%, 07/01/2042

    779,585   
   

MPH Acquisition Holdings LLC

 
    1,410,000     

6.63%, 04/01/2022 (2)

    1,480,514   
   

Roche Holdings, Inc.

 
    3,680,000     

4.00%, 11/28/2044 (2)

    3,821,514   
   

Tenet Healthcare Corp.

 
    345,000     

4.75%, 06/01/2020

    350,175   
    1,660,000     

5.00%, 03/01/2019 (2)

    1,649,625   
    315,000     

6.25%, 11/01/2018

    340,909   
    3,055,000     

8.13%, 04/01/2022

    3,333,769   
   

UnitedHealth Group, Inc.

 
    1,981,000     

6.88%, 02/15/2038

    2,767,328   
   

Wellcare Health Plans, Inc.

 
    1,055,000     

5.75%, 11/15/2020

    1,118,300   
     

 

 

 
        84,495,572   
     

 

 

 
            Holding Companies-Diversified - 0.2%  
   

Argos Merger Sub, Inc.

 
    815,000     

7.13%, 03/15/2023 (2)

    855,750   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  41  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Holding Companies-Diversified - 0.2% - (continued)  
   

Hutchison Whampoa International Ltd.

 
  $        9,200,000     

1.63%, 10/31/2017 (2)

  $ 9,165,905   
    2,800,000     

2.00%, 11/08/2017 (2)

    2,816,553   
    965,000     

3.50%, 01/13/2017 (2)

    996,275   
    900,000     

5.75%, 09/11/2019 (2)

    1,025,693   
     

 

 

 
        14,860,176   
     

 

 

 
            Home Builders - 0.2%  
   

K Hovnanian Enterprises, Inc.

 
    785,000     

7.00%, 01/15/2019 (2)

    749,675   
    1,750,000     

8.00%, 11/01/2019 (2)

    1,697,500   
    1,590,000     

9.13%, 11/15/2020 (2)

    1,685,400   
   

KB Home

 
    340,000     

4.75%, 05/15/2019

    337,450   
    1,450,000     

7.00%, 12/15/2021

    1,511,625   
    1,095,000     

7.50%, 09/15/2022

    1,144,275   
    1,225,000     

7.63%, 05/15/2023

    1,275,531   
    1,586,000     

8.00%, 03/15/2020

    1,752,530   
   

Lennar Corp.

 
    2,720,000     

4.75%, 12/15/2017

    2,842,400   
    455,000     

4.75%, 11/15/2022

    460,119   
    95,000     

5.60%, 05/31/2015

    95,304   
   

Pulte Homes, Inc.

 
    130,000     

6.38%, 05/15/2033

    134,550   
   

Ryland Group, Inc.

 
    150,000     

5.38%, 10/01/2022

    152,625   
   

Toll Brothers Finance Corp.

 
    1,420,000     

4.00%, 12/31/2018

    1,462,600   
     

 

 

 
        15,301,584   
     

 

 

 
            Household Products - 0.0%  
   

Procter & Gamble Co.

 
    1,200,000     

5.55%, 03/05/2037

    1,550,456   
     

 

 

 
            Household Products/Wares - 0.1%  
   

S.C. Johnson & Son, Inc.

 
    2,520,000     

4.00%, 05/15/2043 (2)

    2,482,061   
   

Sun Products Corp.

 
    2,500,000     

7.75%, 03/15/2021 (2)

    2,203,125   
     

 

 

 
        4,685,186   
     

 

 

 
            Insurance - 1.3%  
   

ACE Capital Trust II

 
    1,905,000     

9.70%, 04/01/2030

    2,863,215   
   

Allstate Corp.

 
    855,000     

5.75%, 08/15/2053 (1)

    931,950   
   

American International Group, Inc.

 
    2,725,000     

3.88%, 01/15/2035

    2,653,109   
    4,005,000     

4.50%, 07/16/2044

    4,145,732   
    3,350,000     

6.40%, 12/15/2020

    4,019,702   
   

Aon plc

 
    4,775,000     

3.50%, 06/14/2024

    4,867,793   
    2,300,000     

4.25%, 12/12/2042

    2,212,816   
   

Liberty Mutual Group, Inc.

 
    1,385,000     

4.25%, 06/15/2023 (2)

    1,466,203   
   

Lincoln National Corp.

 
    3,000,000     

4.85%, 06/24/2021

    3,345,129   
    1,035,000     

6.15%, 04/07/2036

    1,263,172   
    2,000,000     

8.75%, 07/01/2019

    2,509,020   
   

Marsh & McLennan Cos., Inc.

 
    6,675,000     

2.30%, 04/01/2017

    6,792,633   
    3,875,000     

2.35%, 09/10/2019

    3,917,036   
    3,900,000     

4.05%, 10/15/2023

    4,164,658   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Insurance - 1.3% - (continued)  
   

Massachusetts Mutual Life Insurance Co.

 
  $        3,350,000     

8.88%, 06/01/2039 (2)

  $ 5,292,069   
   

Nationwide Mutual Insurance Co.

 
    4,975,000     

9.38%, 08/15/2039 (2)

    7,800,208   
   

Pacific Life Insurance Co.

 
    2,075,000     

9.25%, 06/15/2039 (2)

    3,182,863   
   

Provident Cos., Inc.

 
    4,435,000     

7.00%, 07/15/2018

    5,056,512   
   

Prudential Financial, Inc.

 
    1,660,000     

5.80%, 11/16/2041

    1,983,350   
   

Teachers Insurance & Annuity Association of America

 
    3,000,000     

6.85%, 12/16/2039 (2)

    4,047,651   
   

TIAA Asset Management Finance Co. LLC

 
    2,015,000     

2.95%, 11/01/2019 (2)

    2,058,210   
   

Voya Financial, Inc.

 
    395,000     

5.65%, 05/15/2053 (1)

    413,762   
   

XLIT Ltd.

 
    5,220,000     

2.30%, 12/15/2018

    5,296,055   
     

 

 

 
        80,282,848   
     

 

 

 
            Internet - 0.2%  
   

Alibaba Group Holding Ltd.

 
    6,575,000     

3.13%, 11/28/2021 (2)

    6,574,724   
   

Amazon.com, Inc.

 
    4,715,000     

3.80%, 12/05/2024

    4,904,684   
   

Equinix, Inc.

 
    45,000     

4.88%, 04/01/2020

    46,463   
    200,000     

5.38%, 04/01/2023

    206,500   
   

IAC/InterActiveCorp

 
    250,000     

4.75%, 12/15/2022

    250,000   
   

Zayo Group LLC

 
    1,955,000     

6.00%, 04/01/2023 (2)

    1,964,775   
    631,000     

10.13%, 07/01/2020

    716,185   
     

 

 

 
        14,663,331   
     

 

 

 
            Iron/Steel - 0.2%  
   

AK Steel Corp.

 
    1,415,000     

7.63%, 05/15/2020

    1,227,512   
    2,215,000     

7.63%, 10/01/2021

    1,827,375   
    1,095,000     

8.38%, 04/01/2022

    941,700   
   

ArcelorMittal

 
    540,000     

7.50%, 03/01/2041

    552,150   
    1,200,000     

7.75%, 10/15/2039

    1,239,000   
   

Steel Dynamics, Inc.

 
    665,000     

5.13%, 10/01/2021 (2)

    679,963   
    1,030,000     

5.50%, 10/01/2024 (2)

    1,063,475   
   

United States Steel Corp.

 
    2,582,000     

7.38%, 04/01/2020

    2,698,190   
     

 

 

 
        10,229,365   
     

 

 

 
            IT Services - 0.4%  
   

Apple, Inc.

 
    2,515,000     

2.50%, 02/09/2025

    2,434,993   
    10,925,000     

2.85%, 05/06/2021

    11,308,151   
    1,500,000     

4.45%, 05/06/2044

    1,588,402   
   

Hewlett-Packard Co.

 
    5,400,000     

2.75%, 01/14/2019

    5,537,009   
    1,000,000     

4.05%, 09/15/2022

    1,047,238   
    1,475,000     

4.65%, 12/09/2021

    1,614,268   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  42  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            IT Services - 0.4% - (continued)  
   

NCR Corp.

 
  $        430,000     

4.63%, 02/15/2021

  $ 426,775   
   

SunGard Data Systems, Inc.

 
    2,670,000     

6.63%, 11/01/2019

    2,783,475   
    486,000     

7.38%, 11/15/2018

    505,440   
    45,000     

7.63%, 11/15/2020

    47,587   
     

 

 

 
        27,293,338   
     

 

 

 
            Lodging - 0.0%  
   

Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.

 
    130,000     

5.38%, 03/15/2022

    132,275   
     

 

 

 
            Machinery-Diversified - 0.0%  
   

Case New Holland Industrial, Inc.

 
    965,000     

7.88%, 12/01/2017

    1,063,913   
   

CNH Industrial Capital LLC

 
    245,000     

3.88%, 11/01/2015

    246,225   
    1,070,000     

6.25%, 11/01/2016

    1,123,500   
     

 

 

 
        2,433,638   
     

 

 

 
            Media - 2.4%  
   

21st Century Fox America, Inc.

 
    4,810,000     

4.75%, 09/15/2044

    5,156,796   
    850,000     

6.15%, 02/15/2041

    1,055,000   
    2,450,000     

6.90%, 03/01/2019

    2,893,252   
   

BSKYB Finance UK plc

 
    350,000     

6.50%, 10/15/2035 (2)

    436,393   
   

CBS Corp.

 
    7,065,000     

4.90%, 08/15/2044

    7,173,321   
   

CCO Holdings LLC

 
    90,000     

5.13%, 02/15/2023

    88,961   
    275,000     

5.25%, 09/30/2022

    274,794   
    3,870,000     

5.75%, 09/01/2023

    3,908,700   
    45,000     

6.50%, 04/30/2021

    46,761   
    500,000     

6.63%, 01/31/2022

    532,500   
    575,000     

7.38%, 06/01/2020

    612,375   
   

CCO Holdings LLC / CCO Holdings Capital Corp.

 
    1,075,000     

5.13%, 05/01/2023 (2)

    1,064,250   
   

Cequel Communications Holdings I LLC

 
    760,000     

5.13%, 12/15/2021 (2)

    761,102   
    2,690,000     

5.13%, 12/15/2021 (2)

    2,700,087   
   

Comcast Corp.

 
    4,975,000     

4.25%, 01/15/2033

    5,163,035   
    2,725,000     

4.75%, 03/01/2044

    2,985,742   
    975,000     

5.65%, 06/15/2035

    1,177,478   
    2,550,000     

5.70%, 07/01/2019

    2,937,268   
    1,980,000     

6.45%, 03/15/2037

    2,607,706   
    4,200,000     

6.95%, 08/15/2037

    5,691,764   
    510,000     

7.05%, 03/15/2033

    689,702   
   

Cox Communications, Inc.

 
    1,485,000     

2.95%, 06/30/2023 (2)

    1,433,524   
    3,755,000     

4.50%, 06/30/2043 (2)

    3,542,734   
    4,475,000     

4.80%, 02/01/2035 (2)

    4,501,957   
    395,000     

8.38%, 03/01/2039 (2)

    543,365   
   

DIRECTV Holdings LLC

 
    5,300,000     

2.40%, 03/15/2017

    5,393,253   
    3,500,000     

3.13%, 02/15/2016

    3,559,153   
    3,975,000     

5.15%, 03/15/2042

    4,026,568   
    400,000     

6.38%, 03/01/2041

    471,390   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Media - 2.4% - (continued)  
   

DISH DBS Corp.

 
  $        940,000     

5.00%, 03/15/2023

  $ 890,650   
    1,450,000     

5.88%, 07/15/2022

    1,460,875   
    455,000     

5.88%, 11/15/2024

    448,175   
    3,620,000     

6.75%, 06/01/2021

    3,832,965   
    1,260,000     

7.88%, 09/01/2019

    1,422,225   
   

Gannett Co., Inc.

 
    1,425,000     

4.88%, 09/15/2021 (2)

    1,464,187   
    1,880,000     

5.13%, 10/15/2019

    1,981,050   
    1,285,000     

5.50%, 09/15/2024 (2)

    1,336,400   
    1,510,000     

6.38%, 10/15/2023

    1,634,575   
   

Gray Television, Inc.

 
    540,000     

7.50%, 10/01/2020

    573,750   
   

Harron Communications LP/Harron Finance Corp.

 
    2,040,000     

9.13%, 04/01/2020 (2)

    2,238,900   
   

NBC Universal Media LLC

 
    1,350,000     

5.95%, 04/01/2041

    1,694,488   
   

NBCUniversal Enterprise, Inc.

 
    600,000     

5.25%, 03/29/2049 (2)(3)

    633,000   
   

Quebecor Media, Inc.

 
    335,000     

5.75%, 01/15/2023

    345,887   
   

Sirius XM Radio, Inc.

 
    120,000     

4.25%, 05/15/2020 (2)

    119,400   
    1,085,000     

4.63%, 05/15/2023 (2)

    1,052,450   
    985,000     

5.25%, 08/15/2022 (2)

    1,041,637   
   

Sky plc

 
    4,130,000     

2.63%, 09/16/2019 (2)

    4,186,626   
    3,370,000     

3.13%, 11/26/2022 (2)

    3,336,162   
   

Time Warner Cable, Inc.

 
    2,700,000     

4.00%, 09/01/2021

    2,686,060   
    200,000     

4.50%, 09/15/2042

    170,096   
    1,465,000     

5.00%, 02/01/2020

    1,547,159   
    1,300,000     

5.50%, 09/01/2041

    1,199,787   
    2,430,000     

5.88%, 11/15/2040

    2,393,414   
    14,780,000     

6.75%, 07/01/2018

    16,476,862   
    350,000     

6.75%, 06/15/2039

    368,215   
    275,000     

7.30%, 07/01/2038

    304,621   
    2,450,000     

8.25%, 04/01/2019

    2,862,212   
    535,000     

8.75%, 02/14/2019

    631,545   
   

Time Warner Entertainment Co., L.P.

 
    95,000     

8.38%, 03/15/2023

    116,553   
   

Time Warner, Inc.

 
    5,170,000     

2.10%, 06/01/2019

    5,191,569   
    2,275,000     

4.88%, 03/15/2020

    2,544,838   
    7,145,000     

5.35%, 12/15/2043

    7,991,611   
    1,985,000     

6.10%, 07/15/2040

    2,419,292   
    1,010,000     

7.63%, 04/15/2031

    1,381,713   
   

Unitymedia Hessen GmbH & Co.

 
    3,030,000     

5.50%, 01/15/2023 (2)

    3,170,137   
   

Videotron Ltd.

 
    245,000     

5.00%, 07/15/2022

    252,791   
    2,340,000     

5.38%, 06/15/2024 (2)

    2,424,825   
     

 

 

 
        155,255,633   
     

 

 

 
            Mining - 0.7%      
   

Barrick North America Finance LLC

 
    1,625,000     

4.40%, 05/30/2021

    1,674,463   
    3,275,000     

5.75%, 05/01/2043

    3,318,115   
   

BHP Billiton Finance USA Ltd.

 
    1,850,000     

5.00%, 09/30/2043

    2,060,907   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  43  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Mining - 0.7% - (continued)      
   

Constellium N.V.

 
  $        2,205,000     

8.00%, 01/15/2023 (2)

  $ 2,378,644   
   

FMG Resources August 2006 Pty Ltd.

 
    6,385,000     

6.88%, 04/01/2022 (2)

    4,836,638   
    130,000     

9.75%, 03/01/2022 (2)

    133,981   
   

Freeport-McMoRan, Inc.

 
    1,905,000     

4.00%, 11/14/2021

    1,883,148   
    2,700,000     

5.40%, 11/14/2034

    2,428,931   
    6,350,000     

5.45%, 03/15/2043

    5,554,485   
   

Glencore Canada Corp.

 
    75,000     

5.38%, 06/01/2015

    75,241   
    75,000     

6.00%, 10/15/2015

    76,604   
   

Glencore Finance Canada Ltd.

 
    4,200,000     

2.70%, 10/25/2017 (2)

    4,268,725   
    800,000     

3.60%, 01/15/2017 (2)

    825,838   
   

Goldcorp, Inc.

 
    5,555,000     

3.63%, 06/09/2021

    5,634,137   
   

Newmont Mining Corp.

 
    2,625,000     

4.88%, 03/15/2042

    2,341,820   
   

Rio Tinto Finance USA Ltd.

 
    4,500,000     

2.88%, 08/21/2022

    4,452,840   
    1,100,000     

3.50%, 11/02/2020

    1,157,118   
   

Teck Resources Ltd.

 
    2,600,000     

4.50%, 01/15/2021

    2,668,458   
     

 

 

 
        45,770,093   
     

 

 

 
            Miscellaneous Manufacturing - 0.2%      
   

Eaton Corp.

 
    2,800,000     

2.75%, 11/02/2022

    2,804,550   
    1,575,000     

5.60%, 05/15/2018

    1,750,401   
   

General Electric Co.

 
    795,000     

4.13%, 10/09/2042

    824,851   
    4,000,000     

4.50%, 03/11/2044

    4,390,696   
     

 

 

 
        9,770,498   
     

 

 

 
            Office/Business Equipment - 0.1%      
   

CDW LLC / CDW Finance Corp.

 
    625,000     

5.00%, 09/01/2023

    643,750   
    725,000     

5.50%, 12/01/2024

    770,675   
    2,740,000     

6.00%, 08/15/2022

    2,952,350   
     

 

 

 
        4,366,775   
     

 

 

 
            Oil & Gas - 3.0%      
   

Anadarko Petroleum Corp.

 
    2,210,000     

3.45%, 07/15/2024

    2,243,048   
    1,250,000     

4.50%, 07/15/2044

    1,254,808   
    1,650,000     

5.95%, 09/15/2016

    1,754,585   
    1,300,000     

6.45%, 09/15/2036

    1,606,385   
    2,110,000     

8.70%, 03/15/2019

    2,589,181   
   

Antero Resources Corp.

 
    340,000     

5.38%, 11/01/2021

    343,400   
    875,000     

5.63%, 06/01/2023 (2)

    893,594   
    2,080,000     

6.00%, 12/01/2020

    2,124,200   
   

Apache Corp.

 
    1,670,000     

3.25%, 04/15/2022

    1,681,956   
    755,000     

4.25%, 01/15/2044

    717,625   
    1,045,000     

4.75%, 04/15/2043

    1,065,868   
   

Blue Racer Midstream LLC

 
    890,000     

6.13%, 11/15/2022 (2)

    925,600   
   

Bonanza Creek Energy, Inc.

 
    1,880,000     

6.75%, 04/15/2021

    1,912,900   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Oil & Gas - 3.0% - (continued)      
   

BP Capital Markets plc

 
  $        7,975,000     

2.24%, 09/26/2018

  $ 8,158,002   
    3,735,000     

2.32%, 02/13/2020

    3,786,084   
    3,030,000     

2.52%, 01/15/2020

    3,099,305   
    7,685,000     

3.06%, 03/17/2022

    7,831,246   
   

Canadian Natural Resources Ltd.

 
    5,930,000     

3.80%, 04/15/2024

    6,010,933   
   

Chesapeake Energy Corp.

 
    160,000     

6.63%, 08/15/2020

    164,800   
    255,000     

6.88%, 11/15/2020

    262,013   
   

Chevron Corp.

 
    4,900,000     

1.37%, 03/02/2018

    4,921,859   
    8,100,000     

1.96%, 03/03/2020

    8,135,972   
    6,775,000     

2.41%, 03/03/2022

    6,792,805   
   

CNPC General Capital Ltd.

 
    2,270,000     

1.95%, 04/16/2018 (2)

    2,258,339   
    1,900,000     

2.75%, 04/19/2017 (2)

    1,937,768   
   

CNPC HK Overseas Capital Ltd.

 
    315,000     

4.50%, 04/28/2021 (2)

    342,241   
   

Concho Resources, Inc.

 
    550,000     

5.50%, 10/01/2022

    559,680   
    850,000     

5.50%, 04/01/2023

    861,688   
   

ConocoPhillips Co.

 
    2,950,000     

3.35%, 11/15/2024

    3,010,112   
    4,000,000     

4.30%, 11/15/2044

    4,113,864   
    1,775,000     

6.50%, 02/01/2039

    2,347,196   
   

Continental Resources, Inc.

 
    1,035,000     

4.90%, 06/01/2044

    963,680   
    2,570,000     

5.00%, 09/15/2022

    2,608,550   
   

Devon Energy Corp.

 
    2,085,000     

3.25%, 05/15/2022

    2,109,013   
    2,000,000     

5.60%, 07/15/2041

    2,309,220   
    260,000     

7.95%, 04/15/2032

    358,298   
   

Devon Financing Corp. LLC

 
    350,000     

7.88%, 09/30/2031

    477,005   
   

Diamondback Energy, Inc.

 
    2,315,000     

7.63%, 10/01/2021

    2,505,987   
   

EnCana Corp.

 
    1,100,000     

3.90%, 11/15/2021

    1,153,450   
    725,000     

5.15%, 11/15/2041

    738,649   
    5,595,000     

6.50%, 05/15/2019

    6,415,574   
    4,700,000     

6.50%, 08/15/2034

    5,475,166   
   

Everest Acquisition LLC

 
    1,520,000     

9.38%, 05/01/2020

    1,626,400   
   

Gazprom OAO Via Gaz Capital S.A.

 
    2,915,000     

9.25%, 04/23/2019 (4)

    3,234,192   
   

Hess Corp.

 
    1,735,000     

1.30%, 06/15/2017

    1,716,815   
    2,550,000     

3.50%, 07/15/2024

    2,540,802   
    4,425,000     

5.60%, 02/15/2041

    4,916,454   
    500,000     

6.00%, 01/15/2040

    568,820   
    1,325,000     

7.30%, 08/15/2031

    1,652,937   
   

Laredo Petroleum, Inc.

 
    670,000     

5.63%, 01/15/2022

    674,188   
    1,290,000     

6.25%, 03/15/2023

    1,335,150   
    545,000     

7.38%, 05/01/2022

    583,150   
   

Lukoil International Finance B.V.

 
    3,035,000     

3.42%, 04/24/2018 (2)

    2,857,452   
    525,000     

3.42%, 04/24/2018 (4)

    494,288   
   

Matador Resources Co.

 
    385,000     

6.88%, 04/15/2023 (2)

    395,106   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Oil & Gas - 3.0% - (continued)      
   

MEG Energy Corp.

 
  $        980,000     

6.38%, 01/30/2023 (2)

  $ 955,500   
    885,000     

7.00%, 03/31/2024 (2)

    871,902   
   

Nexen Energy

 
    1,450,000     

7.50%, 07/30/2039

    2,046,676   
   

Nexen Energy ULC

 
    400,000     

6.40%, 05/15/2037

    490,745   
   

Paragon Offshore plc

 
    3,180,000     

6.75%, 07/15/2022 (2)

    1,319,700   
   

Pemex Project Funding Master Trust

 
    360,000     

6.63%, 06/15/2035

    405,720   
   

Petrobras Global Finance B.V.

 
    1,120,000     

5.38%, 01/27/2021

    1,074,976   
    1,385,000     

5.63%, 05/20/2043

    1,144,010   
    1,275,000     

5.75%, 01/20/2020

    1,271,813   
   

Petroleos de Venezuela S.A.

 
    925,000     

5.38%, 04/12/2027 (4)

    376,845   
    9,115,000     

6.00%, 11/15/2026 (4)

    3,782,725   
   

Petroleos Mexicanos

 
    1,445,000     

5.50%, 06/27/2044 (2)

    1,425,492   
    118,000     

5.50%, 06/27/2044

    116,407   
    728,000     

5.50%, 06/27/2044 (4)

    718,172   
    2,030,000     

5.63%, 01/23/2046 (2)

    2,034,263   
    1,930,000     

6.38%, 01/23/2045

    2,124,930   
    2,010,000     

6.50%, 06/02/2041

    2,218,537   
   

Phillips 66

 
    1,720,000     

4.88%, 11/15/2044

    1,806,495   
   

Pioneer Natural Resources Co.

 
    3,290,000     

6.88%, 05/01/2018

    3,725,030   
   

QEP Resources, Inc.

 
    35,000     

5.25%, 05/01/2023

    35,088   
    205,000     

5.38%, 10/01/2022

    207,563   
    230,000     

6.80%, 03/01/2020

    242,075   
   

Range Resources Corp.

 
    205,000     

5.00%, 08/15/2022

    208,075   
    430,000     

5.75%, 06/01/2021

    447,200   
    15,000     

6.75%, 08/01/2020

    15,638   
   

Ras Laffan Liquefied Natural Gas Co., Ltd. III

 
    602,800     

5.83%, 09/30/2016 (2)

    623,898   
   

Rice Energy, Inc.

 
    510,000     

7.25%, 05/01/2023 (2)

    530,400   
   

Rosetta Resources, Inc.

 
    1,320,000     

5.63%, 05/01/2021

    1,321,650   
    1,670,000     

5.88%, 06/01/2022

    1,665,825   
   

Seadrill Ltd.

 
    940,000     

6.13%, 09/15/2017 (2)

    836,600   
   

Shell International Finance B.V.

 
    4,575,000     

4.55%, 08/12/2043

    5,014,333   
    475,000     

6.38%, 12/15/2038

    645,343   
   

Suncor Energy, Inc.

 
    500,000     

3.60%, 12/01/2024

    513,136   
   

Tosco Corp.

 
    500,000     

8.13%, 02/15/2030

    720,943   
   

Total Capital International S.A.

 
    5,065,000     

2.88%, 02/17/2022

    5,123,931   
   

Tullow Oil plc

 
    1,490,000     

6.00%, 11/01/2020 (2)

    1,370,800   
    2,181,000     

6.25%, 04/15/2022 (2)

    1,995,615   
   

Valero Energy Corp.

 
    4,225,000     

3.65%, 03/15/2025

    4,271,741   
    3,735,000     

4.90%, 03/15/2045

    3,781,392   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Oil & Gas - 3.0% - (continued)      
   

WPX Energy, Inc.

 
  $        1,865,000     

5.25%, 09/15/2024

  $ 1,720,462   
    615,000     

6.00%, 01/15/2022

    602,934   
   

YPF S.A.

 
    2,345,000     

8.75%, 04/04/2024 (2)

    2,447,242   
     

 

 

 
        193,669,225   
     

 

 

 
            Oil & Gas Services - 0.2%  
   

Plains Exploration & Production Co.

 
    10,813,000     

6.63%, 05/01/2021

    11,434,748   
    603,000     

6.88%, 02/15/2023

    648,225   
     

 

 

 
        12,082,973   
     

 

 

 
            Packaging & Containers - 0.1%  
   

Ardagh Finance Holdings S.A.

 
    772,444     

8.63%, 06/15/2019 (2)(6)

    824,584   
   

Ardagh Packaging Finance plc

 
    1,015,000     

6.00%, 06/30/2021 (2)

    1,030,225   
    72,353     

7.00%, 11/15/2020 (2)

    73,981   
    1,020,000     

9.13%, 10/15/2020 (2)

    1,096,500   
   

Ball Corp.

 
    135,000     

5.00%, 03/15/2022

    140,737   
   

Novelis, Inc.

 
    125,000     

8.38%, 12/15/2017

    130,000   
   

Silgan Holdings, Inc.

 
    500,000     

5.00%, 04/01/2020

    518,750   
     

 

 

 
        3,814,777   
     

 

 

 
            Pharmaceuticals - 2.1%  
   

Abbott Laboratories

 
    15,525,000     

2.55%, 03/15/2022

    15,551,424   
   

Actavis Funding SCS

 
    15,165,000     

3.00%, 03/12/2020

    15,423,260   
    4,235,000     

3.45%, 03/15/2022

    4,303,065   
    10,535,000     

3.80%, 03/15/2025

    10,648,525   
    3,825,000     

3.85%, 06/15/2024

    3,893,850   
    6,275,000     

4.75%, 03/15/2045

    6,343,642   
   

Bayer US Finance LLC

 
    12,740,000     

3.00%, 10/08/2021 (2)

    13,144,355   
   

Cardinal Health, Inc.

 
    4,505,000     

3.50%, 11/15/2024

    4,603,434   
   

Eli Lilly & Co.

 
    2,805,000     

2.75%, 06/01/2025

    2,785,253   
   

EMD Finance LLC

 
    7,025,000     

3.25%, 03/19/2025 (2)

    7,067,895   
   

Endo Finance LLC

 
    4,270,000     

6.00%, 02/01/2025 (2)

    4,379,419   
   

Express Scripts Holding Co.

 
    10,645,000     

3.50%, 06/15/2024

    10,794,552   
   

Grifols Worldwide Operations Ltd.

 
    245,000     

5.25%, 04/01/2022 (2)

    250,512   
   

McKesson Corp.

 
    1,390,000     

4.88%, 03/15/2044

    1,541,329   
   

Merck & Co., Inc.

 
    6,455,000     

2.75%, 02/10/2025

    6,394,265   
   

Mylan, Inc.

 
    5,073,000     

2.55%, 03/28/2019

    5,089,305   
    3,575,000     

4.20%, 11/29/2023

    3,779,168   
    1,635,000     

5.40%, 11/29/2043

    1,848,153   
   

Perrigo Co. plc

 
    2,620,000     

2.30%, 11/08/2018

    2,638,185   
    1,565,000     

5.30%, 11/15/2043

    1,692,859   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  45  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Pharmaceuticals - 2.1% - (continued)  
   

Pfizer, Inc.

 
  $        1,000,000     

4.30%, 06/15/2043

  $ 1,036,440   
    1,450,000     

7.20%, 03/15/2039

    2,070,491   
   

PRA Holdings, Inc.

 
    1,869,000     

9.50%, 10/01/2023 (2)

    2,109,634   
   

Salix Pharmaceuticals Ltd.

 
    3,947,000     

6.50%, 01/15/2021 (2)

    4,479,845   
   

Valeant Pharmaceuticals International, Inc.

 
    950,000     

6.13%, 04/15/2025 (2)

    980,281   
   

VRX Escrow Corp.

 
    215,000     

5.38%, 03/15/2020 (2)

    220,509   
    3,575,000     

5.88%, 05/15/2023 (2)

    3,668,844   
     

 

 

 
        136,738,494   
     

 

 

 
            Pipelines - 1.3%  
   

El Paso Corp.

 
    494,000     

7.00%, 06/15/2017

    541,797   
   

Enable Midstream Partners L.P.

 
    3,370,000     

3.90%, 05/15/2024 (2)

    3,256,303   
   

Enbridge, Inc.

 
    755,000     

4.50%, 06/10/2044

    690,857   
   

Energy Transfer Equity L.P.

 
    425,000     

7.50%, 10/15/2020

    478,125   
   

Energy Transfer Partners L.P.

 
    3,655,000     

3.60%, 02/01/2023

    3,629,342   
    2,900,000     

4.15%, 10/01/2020

    3,068,858   
    2,275,000     

4.90%, 03/15/2035

    2,221,023   
    2,525,000     

5.15%, 03/15/2045

    2,460,688   
    660,000     

5.20%, 02/01/2022

    718,790   
    125,000     

6.63%, 10/15/2036

    143,425   
    2,000,000     

6.70%, 07/01/2018

    2,275,220   
    1,000,000     

7.50%, 07/01/2038

    1,237,098   
   

Enterprise Products Operating LLC

 
    4,450,000     

3.35%, 03/15/2023

    4,478,039   
    2,050,000     

4.85%, 03/15/2044

    2,107,336   
    1,300,000     

5.95%, 02/01/2041

    1,510,815   
   

Kinder Morgan Energy Partners L.P.

 
    4,500,000     

5.00%, 08/15/2042

    4,204,287   
   

Kinder Morgan Finance Co.

 
    110,000     

5.70%, 01/05/2016

    113,457   
    45,000     

6.00%, 01/15/2018 (2)

    49,419   
   

Kinder Morgan, Inc.

 
    4,910,000     

3.05%, 12/01/2019

    4,958,815   
    7,930,000     

4.30%, 06/01/2025

    8,040,663   
    4,400,000     

5.05%, 02/15/2046

    4,175,745   
    5,615,000     

5.55%, 06/01/2045

    5,605,994   
    255,000     

6.50%, 09/15/2020

    296,242   
    15,000     

7.25%, 06/01/2018

    17,064   
   

MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp.

 
    175,000     

5.50%, 02/15/2023

    182,438   
    88,000     

6.25%, 06/15/2022

    93,060   
   

Plains All American Pipeline L.P.

 
    980,000     

2.85%, 01/31/2023

    947,741   
    1,375,000     

3.85%, 10/15/2023

    1,408,965   
    2,325,000     

4.90%, 02/15/2045

    2,368,033   
   

Sunoco Logistics Partners Operations L.P.

 
    1,890,000     

4.25%, 04/01/2024

    1,939,490   
    1,830,000     

5.30%, 04/01/2044

    1,851,272   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Pipelines - 1.3% - (continued)  
   

Williams Partners L.P.

 
  $        2,295,000     

3.35%, 08/15/2022

  $ 2,239,654   
    7,345,000     

3.90%, 01/15/2025

    7,236,287   
    2,225,000     

4.00%, 09/15/2025

    2,194,068   
    2,330,000     

4.30%, 03/04/2024

    2,379,331   
    3,575,000     

5.10%, 09/15/2045

    3,359,345   
    2,000,000     

5.40%, 03/04/2044

    1,939,962   
     

 

 

 
        84,419,048   
     

 

 

 
            Real Estate - 0.1%  
   

ProLogis L.P.

 
    1,500,000     

3.35%, 02/01/2021

    1,552,322   
    6,500,000     

4.25%, 08/15/2023

    6,915,402   
   

Realogy Group LLC

 
    673,000     

7.63%, 01/15/2020 (2)

    716,745   
     

 

 

 
        9,184,469   
     

 

 

 
            Real Estate Investment Trusts - 1.6%  
   

American Tower Corp.

 
    4,775,000     

5.00%, 02/15/2024

    5,159,822   
   

Boston Properties L.P.

 
    2,580,000     

3.13%, 09/01/2023

    2,583,493   
   

Brandywine Operating Partnership L.P.

 
    3,325,000     

3.95%, 02/15/2023

    3,361,512   
    4,880,000     

4.10%, 10/01/2024

    4,911,222   
    1,100,000     

4.95%, 04/15/2018

    1,181,050   
   

Camden Property Trust

 
    730,000     

4.25%, 01/15/2024

    772,688   
   

DDR Corp.

 
    6,925,000     

3.50%, 01/15/2021

    7,149,986   
    8,400,000     

3.63%, 02/01/2025

    8,337,697   
   

Duke Realty L.P.

 
    2,200,000     

3.63%, 04/15/2023

    2,236,903   
    3,905,000     

3.75%, 12/01/2024

    3,995,901   
    5,250,000     

3.88%, 02/15/2021

    5,534,807   
    2,061,000     

3.88%, 10/15/2022

    2,140,952   
   

ERP Operating L.P.

 
    1,275,000     

4.50%, 07/01/2044

    1,327,311   
   

HCP, Inc.

 
    3,625,000     

3.15%, 08/01/2022

    3,568,109   
    4,525,000     

3.88%, 08/15/2024

    4,597,169   
    7,200,000     

4.25%, 11/15/2023

    7,508,599   
    1,000,000     

6.70%, 01/30/2018

    1,128,673   
   

Health Care REIT, Inc.

 
    2,500,000     

3.63%, 03/15/2016

    2,556,473   
    2,320,000     

4.13%, 04/01/2019

    2,477,881   
    4,350,000     

4.50%, 01/15/2024

    4,652,634   
    840,000     

5.25%, 01/15/2022

    938,252   
   

Iron Mountain, Inc.

 
    785,000     

7.75%, 10/01/2019

    832,100   
    134,000     

8.38%, 08/15/2021

    139,695   
   

Kimco Realty Corp.

 
    5,385,000     

3.20%, 05/01/2021

    5,492,075   
    2,075,000     

4.25%, 04/01/2045

    1,955,727   
    1,380,000     

4.30%, 02/01/2018

    1,480,644   
   

Liberty Property L.P.

 
    775,000     

4.13%, 06/15/2022

    805,960   
   

Realty Income Corp.

 
    2,676,000     

3.25%, 10/15/2022

    2,671,429   
    615,000     

4.13%, 10/15/2026

    643,625   
    1,130,000     

4.65%, 08/01/2023

    1,228,422   
    1,085,000     

6.75%, 08/15/2019

    1,274,648   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  46  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Real Estate Investment Trusts - 1.6% - (continued)  
   

Ventas Realty L.P.

 
  $        1,240,000     

2.70%, 04/01/2020

  $ 1,253,423   
    3,975,000     

3.25%, 08/15/2022

    3,966,096   
    2,749,000     

3.50%, 02/01/2025

    2,738,554   
    1,280,000     

3.75%, 05/01/2024

    1,310,167   
     

 

 

 
        101,913,699   
     

 

 

 
            Retail - 1.0%  
   

99 Cents Only Stores

 
    1,757,000     

11.00%, 12/15/2019

    1,836,065   
   

AutoZone, Inc.

 
    3,281,000     

2.50%, 04/15/2021

    3,273,332   
    8,450,000     

3.25%, 04/15/2025

    8,357,320   
    1,823,000     

3.70%, 04/15/2022

    1,894,755   
   

CEC Entertainment, Inc.

 
    1,190,000     

8.00%, 02/15/2022

    1,218,263   
   

CVS Health Corp.

 
    1,730,000     

2.75%, 12/01/2022

    1,735,055   
    4,000,000     

4.00%, 12/05/2023

    4,294,304   
   

CVS Pass-Through Trust

 
    15,240     

6.04%, 12/10/2028

    17,891   
    32,735     

6.94%, 01/10/2030

    40,366   
   

Family Tree Escrow LLC

 
    230,000     

5.25%, 03/01/2020 (2)

    240,925   
    1,130,000     

5.75%, 03/01/2023 (2)

    1,186,500   
   

GRD Holding III Corp.

 
    2,255,000     

10.75%, 06/01/2019 (2)

    2,446,675   
   

Home Depot, Inc.

 
    220,000     

4.20%, 04/01/2043

    232,741   
    1,265,000     

4.88%, 02/15/2044

    1,464,172   
    2,050,000     

5.88%, 12/16/2036

    2,639,057   
   

Lowe’s Cos., Inc.

 
    1,510,000     

5.00%, 09/15/2043

    1,756,393   
   

Macy’s Retail Holdings, Inc.

 
    20,000     

6.70%, 09/15/2028

    25,011   
    20,000     

7.00%, 02/15/2028

    25,640   
   

McDonald’s Corp.

 
    400,000     

6.30%, 10/15/2037

    505,303   
   

Michaels Stores, Inc.

 
    3,025,000     

5.88%, 12/15/2020 (2)

    3,138,437   
   

Party City Holdings, Inc.

 
    1,920,000     

8.88%, 08/01/2020

    2,076,000   
   

PC Nextco Holdings LLC / PC Nextco Finance, Inc.

 
    2,150,000     

8.75%, 08/15/2019

    2,193,000   
   

Sally Holdings LLC

 
    135,000     

5.75%, 06/01/2022

    143,438   
    225,000     

6.88%, 11/15/2019

    237,938   
   

Sonic Automotive, Inc.

 
    590,000     

7.00%, 07/15/2022

    640,150   
   

Wal-Mart Stores, Inc.

 
    6,500,000     

4.00%, 04/11/2043

    6,641,141   
    6,170,000     

4.30%, 04/22/2044

    6,646,731   
    1,000,000     

5.00%, 10/25/2040

    1,167,538   
    600,000     

5.25%, 09/01/2035

    727,100   
    703,000     

5.63%, 04/15/2041

    884,946   
    2,000,000     

6.20%, 04/15/2038

    2,663,614   
    2,800,000     

6.50%, 08/15/2037

    3,832,872   
     

 

 

 
        64,182,673   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Savings & Loans - 0.1%  
   

Nationwide Building Society

 
  $        3,140,000     

2.35%, 01/21/2020 (2)

  $ 3,148,359   
     

 

 

 
            Semiconductors - 0.1%  
   

Entegris, Inc.

 
    2,710,000     

6.00%, 04/01/2022 (2)

    2,831,950   
   

Freescale Semiconductor, Inc.

 
    3,520,000     

6.00%, 01/15/2022 (2)

    3,803,360   
    37,000     

10.75%, 08/01/2020

    39,868   
   

Sensata Technologies B.V.

 
    1,170,000     

5.00%, 10/01/2025 (2)

    1,208,025   
    530,000     

5.63%, 11/01/2024 (2)

    565,775   
     

 

 

 
        8,448,978   
     

 

 

 
            Shipbuilding - 0.0%  
   

Huntington Ingalls Industries, Inc.

 
    106,000     

7.13%, 03/15/2021

    113,685   
     

 

 

 
            Software - 0.9%  
   

Activision Blizzard, Inc.

 
    4,290,000     

5.63%, 09/15/2021 (2)

    4,584,937   
    1,960,000     

6.13%, 09/15/2023 (2)

    2,159,685   
   

Audatex North America, Inc.

 
    2,357,000     

6.00%, 06/15/2021 (2)

    2,434,333   
   

Emdeon, Inc.

 
    1,621,000     

11.00%, 12/31/2019

    1,774,995   
   

First Data Corp.

 
    298,000     

6.75%, 11/01/2020 (2)

    317,370   
    2,335,000     

7.38%, 06/15/2019 (2)

    2,425,481   
    5,315,000     

8.25%, 01/15/2021 (2)

    5,635,548   
    36,000     

8.75%, 01/15/2022 (2)(6)

    38,520   
    350,000     

12.63%, 01/15/2021

    413,175   
   

Infor Software Parent LLC

 
    2,555,000     

7.13%, 05/01/2021 (2)(6)

    2,561,387   
   

Infor US, Inc.

 
    3,650,000     

6.50%, 05/15/2022 (2)

    3,750,375   
    140,000     

11.50%, 07/15/2018

    151,375   
   

Microsoft Corp.

 
    6,355,000     

3.50%, 02/12/2035

    6,056,741   
   

MSCI, Inc.

 
    1,295,000     

5.25%, 11/15/2024 (2)

    1,346,800   
   

Oracle Corp.

 
    11,200,000     

2.50%, 05/15/2022

    11,131,389   
    11,200,000     

3.90%, 05/15/2035

    11,030,309   
    2,325,000     

5.38%, 07/15/2040

    2,730,685   
    890,000     

6.13%, 07/08/2039

    1,123,110   
     

 

 

 
        59,666,215   
     

 

 

 
            Telecommunications - 2.7%  
   

Alcatel-Lucent USA, Inc.

 
    3,030,000     

6.45%, 03/15/2029

    3,386,025   
    315,000     

6.50%, 01/15/2028

    352,800   
    1,550,000     

6.75%, 11/15/2020 (2)

    1,670,125   
   

Altice Financing S.A.

 
    1,625,000     

6.50%, 01/15/2022 (2)

    1,657,500   
    540,000     

6.63%, 02/15/2023 (2)

    556,200   
    765,000     

7.88%, 12/15/2019 (2)

    812,851   
    925,000     

9.88%, 12/15/2020 (2)

    1,020,969   
   

AT&T, Inc.

 
    4,885,000     

2.45%, 06/30/2020 (7)

    4,879,524   
    7,230,000     

3.00%, 06/30/2022 (7)

    7,182,969   
    3,500,000     

3.40%, 05/15/2025 (7)

    3,463,029   
    6,070,000     

4.30%, 12/15/2042

    5,555,452   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Telecommunications - 2.7% - (continued)  
  $        1,725,000     

4.50%, 05/15/2035 (7)

  $ 1,689,130   
    3,055,000     

4.75%, 05/15/2046 (7)

    2,986,678   
    7,600,000     

4.80%, 06/15/2044

    7,493,205   
    1,375,000     

5.35%, 09/01/2040

    1,445,477   
    170,000     

5.80%, 02/15/2019

    192,177   
   

Cisco Systems, Inc.

 
    2,025,000     

5.50%, 01/15/2040

    2,397,266   
   

Deutsche Telekom International Finance B.V.

 
    1,130,000     

4.88%, 03/06/2042 (2)

    1,244,146   
    1,470,000     

8.75%, 06/15/2030

    2,194,315   
   

DigitalGlobe, Inc.

 
    1,765,000     

5.25%, 02/01/2021 (2)

    1,778,238   
   

Intelsat Jackson Holdings S.A.

 
    985,000     

6.63%, 12/15/2022

    972,688   
    1,295,000     

7.25%, 04/01/2019

    1,341,944   
    2,115,000     

7.50%, 04/01/2021

    2,196,956   
   

Level 3 Communications, Inc.

 
    80,000     

8.88%, 06/01/2019

    83,800   
   

Level 3 Financing, Inc.

 
    855,000     

5.13%, 05/01/2023 (2)

    852,863   
    1,545,000     

5.38%, 08/15/2022

    1,577,831   
    490,000     

5.63%, 02/01/2023 (2)

    502,250   
    1,480,000     

6.13%, 01/15/2021

    1,566,950   
    2,364,000     

7.00%, 06/01/2020

    2,532,435   
    466,000     

8.13%, 07/01/2019

    489,766   
    415,000     

8.63%, 07/15/2020

    450,275   
   

MTN Mauritius Investments Ltd.

 
    495,000     

4.76%, 11/11/2024 (2)

    508,692   
   

SoftBank Corp.

 
    2,610,000     

4.50%, 04/15/2020 (2)

    2,671,987   
   

Sprint Communications, Inc.

 
    2,110,000     

7.00%, 03/01/2020 (2)

    2,334,187   
    1,300,000     

9.00%, 11/15/2018 (2)

    1,479,153   
   

Sprint Corp.

 
    725,000     

7.13%, 06/15/2024

    696,906   
    3,410,000     

7.25%, 09/15/2021

    3,422,787   
    4,270,000     

7.88%, 09/15/2023

    4,286,012   
   

Syniverse Holdings, Inc.

 
    3,210,000     

9.13%, 01/15/2019

    3,017,400   
   

T-Mobile USA, Inc.

 
    210,000     

5.25%, 09/01/2018

    217,350   
    180,000     

6.13%, 01/15/2022

    185,625   
    890,000     

6.46%, 04/28/2019

    918,925   
    1,635,000     

6.50%, 01/15/2024

    1,706,531   
    1,450,000     

6.63%, 11/15/2020

    1,513,438   
    2,380,000     

6.63%, 04/28/2021

    2,510,900   
    1,030,000     

6.73%, 04/28/2022

    1,085,363   
    145,000     

6.84%, 04/28/2023

    153,338   
   

Telefonica Emisiones SAU

 
    2,875,000     

7.05%, 06/20/2036

    3,803,838   
   

UPCB Finance V Ltd.

 
    1,385,000     

7.25%, 11/15/2021 (2)

    1,504,456   
   

UPCB Finance VI Ltd.

 
    470,000     

6.88%, 01/15/2022 (2)

    505,250   
   

Verizon Communications, Inc.

 
    11,683,000     

2.63%, 02/21/2020

    11,815,637   
    2,765,000     

3.00%, 11/01/2021

    2,797,259   
    4,575,000     

3.45%, 03/15/2021

    4,766,647   
    310,000     

3.85%, 11/01/2042

    277,016   
    3,182,000     

4.15%, 03/15/2024

    3,367,180   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 43.5% - (continued)  
            Telecommunications - 2.7% - (continued)  
  $        9,397,000     

4.27%, 01/15/2036 (2)

  $ 9,036,127   
    11,077,000     

4.52%, 09/15/2048 (2)

    10,486,197   
    17,148,000     

4.67%, 03/15/2055 (2)

    16,051,145   
    4,813,000     

4.86%, 08/21/2046

    4,852,399   
    3,825,000     

5.01%, 08/21/2054

    3,776,985   
    1,150,000     

6.35%, 04/01/2019

    1,332,429   
    249,000     

6.40%, 09/15/2033

    303,071   
   

Wind Acquisition Finance S.A.

 
  EUR        3,855,000     

4.00%, 07/15/2020 (2)

    4,383,386   
  $        1,975,000     

6.50%, 04/30/2020 (2)

    2,098,437   
   

Windstream Corp.

 
    480,000     

7.75%, 10/15/2020

    493,200   
    165,000     

8.13%, 09/01/2018

    172,359   
     

 

 

 
        173,057,446   
     

 

 

 
            Transportation - 0.9%  
   

Burlington Northern Santa Fe LLC

 
    2,131,000     

3.00%, 03/15/2023

    2,159,178   
    2,980,000     

3.05%, 09/01/2022

    3,052,369   
    3,825,000     

3.85%, 09/01/2023

    4,093,129   
   

Canadian Pacific Railway Co.

 
    1,415,000     

4.50%, 01/15/2022

    1,552,181   
    1,246,000     

6.50%, 05/15/2018

    1,415,289   
   

CSX Corp.

 
    6,645,000     

3.95%, 05/01/2050

    6,354,115   
    1,000,000     

4.75%, 05/30/2042

    1,099,304   
   

FedEx Corp.

 
    1,260,000     

3.20%, 02/01/2025

    1,258,283   
    4,900,000     

3.88%, 08/01/2042

    4,563,199   
   

Kansas City Southern de Mexico S.A. de C.V.

 
    6,105,000     

2.35%, 05/15/2020

    6,001,569   
   

Kazakhstan Temir Zholy Finance B.V.

 
    1,460,000     

6.95%, 07/10/2042 (4)

    1,489,200   
   

Penske Truck Leasing Co.

 
    1,135,000     

2.50%, 03/15/2016 (2)

    1,148,738   
    3,865,000     

2.50%, 06/15/2019 (2)

    3,863,048   
    225,000     

2.88%, 07/17/2018 (2)

    229,918   
    3,575,000     

3.05%, 01/09/2020 (2)

    3,638,313   
    2,700,000     

3.13%, 05/11/2015 (2)

    2,701,058   
    9,895,000     

4.88%, 07/11/2022 (2)

    10,637,640   
   

Russian Railways via RZD Capital plc

 
    3,540,000     

5.70%, 04/05/2022 (4)

    3,345,300   
     

 

 

 
        58,601,831   
     

 

 

 
   

Total Corporate Bonds
(cost $2,731,334,911)

  $ 2,787,663,975   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.4%  
            Argentina - 0.2%      
   

Argentina Boden Bonds

 
    280,000     

0.00%, 10/03/2015 (5)

  $ 274,960   
   

Argentina Bonar Bonds

 
    3,235,000     

7.00%, 04/17/2017

    3,095,895   
    685,000     

8.75%, 05/07/2024

    706,920   
   

Argentine Republic Government International Bond

 
    3,605,000     

0.00%, 12/31/2038 (1)(5)

    2,081,888   
    3,470,044     

8.28%, 12/31/2033

    3,164,680   
   

City of Buenos Aires Argentina

 
    1,251,000     

8.95%, 02/19/2021 (2)

    1,338,570   
     

 

 

 
        10,662,913   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

48

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.4% - (continued)  
            Brazil - 0.4%      
   

Brazil Minas SPE via State of Minas Gerais

 
  $        1,605,000     

5.33%, 02/15/2028 (4)

  $ 1,572,900   
    1,775,000     

5.33%, 02/15/2028 (2)

    1,739,500   
   

Brazil Notas do Tesouro Nacional Series B

 
  BRL        12,454,400     

6.00%, 08/15/2050 (8)

    4,100,436   
   

Brazil Notas do Tesouro Nacional Series F

 
    3,888,000     

10.00%, 01/01/2021

    1,153,029   
   

Brazilian Government International Bond

 
  $        2,325,000     

2.63%, 01/05/2023

    2,123,888   
    7,385,000     

5.00%, 01/27/2045

    6,923,437   
    728,333     

8.00%, 01/15/2018

    786,600   
    5,414,000     

8.25%, 01/20/2034

    7,146,480   
     

 

 

 
        25,546,270   
     

 

 

 
            Bulgaria - 0.1%      
   

Bulgaria Government International Bond

 
  EUR        3,530,000     

2.95%, 09/03/2024 (4)

    4,166,798   
     

 

 

 
            Colombia - 0.4%      
   

Colombia Government International Bond

 
  $        4,890,000     

4.38%, 07/12/2021

    5,188,290   
    1,365,000     

5.00%, 06/15/2045

    1,378,650   
    6,875,000     

5.63%, 02/26/2044

    7,579,687   
    1,545,000     

6.13%, 01/18/2041

    1,807,650   
    3,180,000     

7.38%, 09/18/2037

    4,237,350   
  COP        1,450,000,000     

7.75%, 04/14/2021

    684,215   
  $        334,000     

8.13%, 05/21/2024

    442,968   
  COP        10,000,000     

9.85%, 06/28/2027

    5,504   
  $        85,000     

10.38%, 01/28/2033

    133,450   
    1,536,000     

11.75%, 02/25/2020

    2,121,984   
  COP        108,000,000     

12.00%, 10/22/2015

    46,749   
   

Colombian TES

 
    647,606,442     

3.50%, 03/10/2021

    280,826   
    497,819,918     

4.75%, 02/23/2023

    229,551   
    2,039,200,000     

6.00%, 04/28/2028

    763,353   
    1,295,400,000     

7.50%, 08/26/2026

    563,035   
     

 

 

 
        25,463,262   
     

 

 

 
            Croatia - 0.0%      
   

Croatia Government International Bond

 
  $        460,000     

6.25%, 04/27/2017 (2)

    487,655   
    1,720,000     

6.25%, 04/27/2017 (4)

    1,823,407   
    520,000     

6.63%, 07/14/2020 (4)

    578,989   
    255,000     

6.75%, 11/05/2019 (4)

    284,141   
     

 

 

 
        3,174,192   
     

 

 

 
            Dominican Republic - 0.1%      
   

Dominican Republic International Bond

 
    2,800,000     

5.50%, 01/27/2025 (2)

    2,891,000   
    595,000     

6.60%, 01/28/2024 (2)

    651,525   
    1,320,000     

6.85%, 01/27/2045 (2)

    1,379,400   
    1,420,000     

7.45%, 04/30/2044 (2)

    1,597,500   
    250,000     

7.50%, 05/06/2021 (4)

    281,250   
     

 

 

 
        6,800,675   
     

 

 

 
            Ecuador - 0.0%      
   

Ecuador Government International Bond

 
    1,700,000     

9.38%, 12/15/2015

    1,729,750   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.4% - (continued)  
            Hungary - 0.2%      
   

Hungary Government International Bond

 
  $        3,646,000     

4.00%, 03/25/2019

  $ 3,805,512   
    1,518,000     

4.13%, 02/19/2018

    1,584,413   
    1,128,000     

5.38%, 02/21/2023

    1,262,198   
  EUR        550,000     

5.75%, 06/11/2018 (4)

    704,922   
  $        232,000     

5.75%, 11/22/2023

    266,626   
    2,068,000     

6.25%, 01/29/2020

    2,364,789   
    1,498,000     

7.63%, 03/29/2041

    2,153,375   
     

 

 

 
        12,141,835   
     

 

 

 
            Iceland - 0.1%      
   

Iceland Government International Bond

 
    1,755,000     

4.88%, 06/16/2016 (4)

    1,821,773   
    226,000     

5.88%, 05/11/2022 (2)

    261,863   
    1,150,000     

5.88%, 05/11/2022 (4)

    1,332,490   
     

 

 

 
        3,416,126   
     

 

 

 
            Indonesia - 0.5%      
   

Indonesia Government International Bond

 
    2,206,000     

3.75%, 04/25/2022 (4)

    2,247,363   
    3,020,000     

4.13%, 01/15/2025 (2)

    3,076,625   
    5,055,000     

4.88%, 05/05/2021 (4)

    5,509,950   
    2,455,000     

5.25%, 01/17/2042 (4)

    2,547,063   
    465,000     

5.38%, 10/17/2023 (2)

    519,056   
    260,000     

5.38%, 10/17/2023 (4)

    290,225   
    2,180,000     

5.88%, 03/13/2020 (4)

    2,468,850   
    4,631,000     

6.63%, 02/17/2037 (4)

    5,620,876   
    2,650,000     

7.75%, 01/17/2038 (4)

    3,613,937   
    4,387,000     

8.50%, 10/12/2035 (4)

    6,339,215   
     

 

 

 
        32,233,160   
     

 

 

 
            Ivory Coast - 0.1%      
   

Ivory Coast Government International Bond

 
    2,055,000     

5.38%, 07/23/2024 (4)

    1,966,286   
    1,500,000     

5.75%, 12/31/2032 (4)

    1,434,000   
    850,000     

6.38%, 03/03/2028 (2)

    852,125   
     

 

 

 
        4,252,411   
     

 

 

 
            Kazakhstan - 0.0%      
   

Kazakhstan Government International Bond

 
    375,000     

3.88%, 10/14/2024 (2)

    362,813   
    715,000     

4.88%, 10/14/2044 (2)

    664,392   
    1,395,000     

4.88%, 10/14/2044 (4)

    1,296,262   
     

 

 

 
        2,323,467   
     

 

 

 
            Latvia - 0.1%      
   

Republic of Latvia

 
    3,915,000     

2.75%, 01/12/2020 (4)

    3,980,341   
     

 

 

 
            Lithuania - 0.1%      
   

Lithuania Government International Bond

 
    2,160,000     

6.13%, 03/09/2021 (4)

    2,554,200   
    4,751,000     

7.38%, 02/11/2020 (4)

    5,767,714   
     

 

 

 
        8,321,914   
     

 

 

 
            Mexico - 0.4%      
   

Mexican Bonos

 
  MXN        26,329,500     

10.00%, 12/05/2024

    2,222,653   
   

Mexican Udibonos

 
    6,512,909     

2.50%, 12/10/2020

    423,849   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  49  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.4% - (continued)  
            Mexico - 0.4% - (continued)      
  MXN        6,098,843     

4.50%, 12/04/2025

  $ 456,298   
    3,983,862     

4.50%, 11/22/2035

    305,899   
   

Mexico Government International Bond

 
  EUR        620,000     

4.00%, 03/15/2115

    695,471   
  $        5,565,000     

4.60%, 01/23/2046

    5,544,131   
    4,576,000     

4.75%, 03/08/2044

    4,698,408   
    6,770,000     

5.75%, 10/12/2110

    7,210,050   
    5,132,000     

6.05%, 01/11/2040

    6,216,135   
     

 

 

 
        27,772,894   
     

 

 

 
            Morocco - 0.1%      
   

Morocco Government International Bond

 
  EUR        1,580,000     

3.50%, 06/19/2024 (4)

    1,884,984   
    460,000     

4.50%, 10/05/2020 (4)

    577,761   
  $        800,000     

5.50%, 12/11/2042 (4)

    863,840   
     

 

 

 
        3,326,585   
     

 

 

 
            Panama - 0.1%      
   

Panama Government International Bond

 
    1,580,000     

3.75%, 03/16/2025

    1,599,750   
    1,199,000     

8.88%, 09/30/2027

    1,741,547   
    1,647,000     

9.38%, 04/01/2029

    2,505,499   
     

 

 

 
        5,846,796   
     

 

 

 
            Peru - 0.0%      
   

El Fondo Mivivienda S.A.

 
    285,000     

3.50%, 01/31/2023 (2)

    281,295   
   

Peru Government Bond

 
  PEN        3,325,000     

5.20%, 09/12/2023

    1,028,882   
    2,295,000     

6.95%, 08/12/2031

    758,400   
    75,000     

7.84%, 08/12/2020

    27,208   
     

 

 

 
        2,095,785   
     

 

 

 
            Philippines - 0.1%      
   

Philippine Government International Bond

 
  $        1,085,000     

5.50%, 03/30/2026

    1,331,837   
    604,000     

9.50%, 02/02/2030

    1,013,965   
    1,080,000     

10.63%, 03/16/2025

    1,757,700   
   

Power Sector Assets & Liabilities Management Corp.

 
    15,000     

9.63%, 05/15/2028

    23,535   
     

 

 

 
        4,127,037   
     

 

 

 
            Romania - 0.2%      
   

Romanian Government International Bond

 
  EUR        1,395,000     

3.63%, 04/24/2024 (4)

    1,772,471   
  $        2,452,000     

4.38%, 08/22/2023 (4)

    2,599,120   
  EUR        355,000     

4.63%, 09/18/2020 (4)

    464,024   
    510,000     

4.88%, 11/07/2019 (4)

    666,884   
  $        894,000     

6.13%, 01/22/2044 (2)

    1,118,215   
    1,420,000     

6.13%, 01/22/2044 (4)

    1,776,136   
    4,786,000     

6.75%, 02/07/2022 (4)

    5,755,165   
     

 

 

 
        14,152,015   
     

 

 

 
            Russia - 0.3%      
   

Russian Foreign Bond - Eurobond

 
  EUR        1,300,000     

3.63%, 09/16/2020 (4)

    1,426,496   
  $        1,200,000     

4.50%, 04/04/2022 (4)

    1,166,784   
    6,200,000     

4.88%, 09/16/2023 (4)

    6,076,000   
    7,300,000     

5.00%, 04/29/2020 (4)

    7,427,750   

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.4% - (continued)  
            Russia - 0.3% - (continued)      
  $        600,000     

12.75%, 06/24/2028 (4)

  $ 948,000   
     

 

 

 
        17,045,030   
     

 

 

 
            Slovenia - 0.1%      
   

Slovenia Government International Bond

 
    1,210,000     

5.25%, 02/18/2024 (2)

    1,388,354   
    1,010,000     

5.25%, 02/18/2024 (4)

    1,158,874   
    1,715,000     

5.50%, 10/26/2022 (4)

    1,979,007   
    1,045,000     

5.85%, 05/10/2023 (2)

    1,237,949   
    675,000     

5.85%, 05/10/2023 (4)

    799,632   
     

 

 

 
        6,563,816   
     

 

 

 
            South Africa - 0.1%      
   

South Africa Government Bond

 
  ZAR        20,800,000     

7.00%, 02/28/2031

    1,531,118   
    7,775,000     

7.00%, 02/28/2031

    572,329   
    14,645,000     

8.75%, 02/28/2048

    1,247,433   
     

 

 

 
        3,350,880   
     

 

 

 
            Tunisia - 0.0%      
   

Banque Centrale de Tunisie S.A.

 
  $        365,000     

5.75%, 01/30/2025 (2)

    376,862   
     

 

 

 
            Turkey - 0.5%      
   

Turkey Government International Bond

 
    4,820,000     

4.88%, 04/16/2043

    4,651,300   
    4,435,000     

5.13%, 03/25/2022

    4,695,556   
    7,925,000     

5.63%, 03/30/2021

    8,645,382   
    6,110,000     

5.75%, 03/22/2024

    6,733,464   
    725,000     

6.25%, 09/26/2022

    819,250   
    2,983,000     

6.75%, 04/03/2018

    3,296,215   
    1,695,000     

7.00%, 06/05/2020

    1,952,471   
    1,990,000     

7.38%, 02/05/2025

    2,445,213   
    735,000     

7.50%, 07/14/2017

    812,322   
     

 

 

 
        34,051,173   
     

 

 

 
            Ukraine - 0.0%      
   

Ukraine Government International Bond

 
    350,000     

6.25%, 06/17/2016 (2)

    159,754   
    740,000     

6.25%, 06/17/2016 (4)

    337,766   
    2,320,000     

6.58%, 11/21/2016 (4)

    1,073,000   
    105,000     

6.88%, 09/23/2015 (4)

    53,550   
     

 

 

 
        1,624,070   
     

 

 

 
            Uruguay - 0.1%      
   

Uruguay Government International Bond

 
    3,697,000     

5.10%, 06/18/2050

    3,763,557   
     

 

 

 
            Venezuela - 0.1%      
   

Venezuela Government International Bond

 
    1,950,000     

7.00%, 03/31/2038 (4)

    794,625   
    1,980,000     

7.65%, 04/21/2025

    846,450   
    5,465,000     

8.25%, 10/13/2024 (4)

    2,390,938   
    5,390,000     

9.25%, 05/07/2028 (4)

    2,385,075   
    7,245,000     

9.25%, 05/07/2028 (4)

    3,205,912   
     

 

 

 
        9,623,000   
     

 

 

 
   

Total Foreign Government Obligations
(cost $272,038,174)

  $ 277,932,614   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

50

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 0.3%  
            Development - 0.1%      
   

State of California

 
  $        725,000     

7.30%, 10/01/2039

  $ 1,061,146   
    1,730,000     

7.60%, 11/01/2040

    2,691,050   
    550,000     

7.63%, 03/01/2040

    844,811   
     

 

 

 
        4,597,007   
     

 

 

 
            Facilities - 0.0%      
   

California State Public Works Board

 
    50,000     

8.36%, 10/01/2034

    73,253   
     

 

 

 
            General Obligation - 0.1%      
   

California State GO, Taxable

 
    2,795,000     

7.55%, 04/01/2039

    4,296,138   
   

Illinois State, GO

 
    155,000     

5.10%, 06/01/2033

    153,698   
   

State of Illinois

 
    585,000     

5.67%,03/01/2018

    639,025   
     

 

 

 
        5,088,861   
     

 

 

 
            Transportation - 0.1%      
   

Grand Parkway Transportation Corp.

 
    1,195,000     

5.18%,10/01/2042

    1,474,522   
   

New Jersey State Turnpike Auth

 
    50,000     

7.41%,01/01/2040

    74,526   
   

North Texas Tollway Auth Rev

 
    455,000     

6.72%,01/01/2049

    658,471   
   

Port Auth of New York & New Jersey

 
    1,850,000     

4.46%, 10/01/2062

    1,996,946   
    15,000     

4.93%, 10/01/2051

    17,362   
    900,000     

4.96%, 08/01/2046

    1,052,118   
    4,165,000     

5.31%, 08/01/2046

    4,515,860   
     

 

 

 
        9,789,805   
     

 

 

 
   

Total Municipal Bonds
(cost $16,937,220)

  $ 19,548,926   
     

 

 

 
SENIOR FLOATING RATE INTERESTS - 0.2% (9)  
            Coal - 0.0%      
   

Arch Coal, Inc.

 
    1,666,752     

6.25%,05/16/2018

  $ 1,239,164   
     

 

 

 
            Electric - 0.1%      
   

Texas Competitive Electric Holdings Co. LLC

 
    3,799,308     

4.67%,10/10/2017 (10)

    2,348,656   
     

 

 

 
            Insurance - 0.0%      
   

Asurion LLC

 
    775,000     

8.50%,03/03/2021

    785,462   
     

 

 

 
            Internet - 0.0%      
   

Lands’ End, Inc.

 
    1,065,689     

4.25%,04/04/2021

    1,048,372   
     

 

 

 
            Machinery-Diversified - 0.1%      
   

Gardner Denver, Inc.

 
    1,918,860     

4.25%,07/30/2020

    1,871,080   
     

 

 

 
            Oil & Gas Services - 0.0%      
   

Crosby U.S. Acquisition Corp.

 
    1,549,915     

3.75%,11/23/2020

    1,437,546   
     

 

 

 
            Retail - 0.0%      
   

Neiman Marcus Group, Inc.

 
    1,833,351     

4.25%,10/25/2020

    1,836,945   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 0.2% (9) - (continued)  
            Semiconductors - 0.0%      
   

Freescale Semiconductor, Inc.

 
  $        832,325     

5.00%,01/15/2021

  $ 839,092   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $12,402,654)

  $ 11,406,317   
     

 

 

 
U.S. GOVERNMENT SECURITIES - 0.1%  
            U.S. Treasury Securities - 0.1%      
            U.S. Treasury Bonds - 0.0%      
    500,000     

3.00%, 11/15/2044

  $ 526,133   
    2,090,000     

3.13%, 08/15/2044

    2,250,832   
     

 

 

 
        2,776,965   
     

 

 

 
            U.S. Treasury Notes - 0.1%      
    850,000     

0.50%, 09/30/2016

    850,996   
    375,000     

1.63%, 12/31/2019

    378,809   
    520,000     

2.25%, 11/15/2024

    529,628   
    1,250,000     

2.38%, 08/15/2024

    1,287,500   
     

 

 

 
        3,046,933   
     

 

 

 
   

Total U.S. Government Securities
(cost $5,653,865)

  $ 5,823,898   
     

 

 

 
CONVERTIBLE BONDS - 0.0%  
            Home Builders - 0.0%      
   

M/I Homes, Inc.

 
    180,000     

3.00%,03/01/2018

  $ 177,975   
     

 

 

 
            Oil & Gas - 0.0%      
   

Cobalt International Energy, Inc.

 
    1,415,000     

2.63%,12/01/2019

    1,086,012   
     

 

 

 
   

Total Convertible Bonds
(cost $1,511,893)

  $ 1,263,987   
     

 

 

 
   

Total Long-Term Investments
(cost $5,667,102,015)

  $ 6,194,410,191   
     

 

 

 
SHORT-TERM INVESTMENTS - 3.0%  
            Other Investment Pools & Funds - 3.0%  
    194,735,028     

Fidelity Money Market Class 1

  $ 194,735,028   
     

 

 

 
   

Total Short-Term Investments
(cost $194,735,028)

  $ 194,735,028   
     

 

 

 
 

Total Investments
(cost $5,861,837,043) ^

    99.7    $     6,389,145,219   
 

Other Assets and Liabilities

    0.3      20,515,834   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 6,409,661,053   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

51

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $5,863,765,406 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 570,388,652   

Unrealized Depreciation

     (45,008,839
  

 

 

 

Net Unrealized Appreciation

   $     525,379,813   
  

 

 

 

 

(1)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $577,464,631, which represents 9.0% of total net assets.

 

(3)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(4)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $130,054,898, which represents 2.1% of total net assets.

 

(5)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(6)  This security may pay interest in additional principal instead of cash.

 

(7)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $20,364,119 at April 30, 2015.

 

(8)  The principal amount for this security is adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(9)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(10)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market Value *      Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

U.S. Treasury 2-Year Note Future

     531         06/30/2015       $ 116,037,172       $ 116,430,047       $ 392,875   

U.S. Treasury 5-Year Note Future

     5,252         06/30/2015         627,121,739         630,937,534         3,815,795   

U.S. Treasury Long Bond Future

     1,168         06/19/2015         189,722,525         186,405,500             (3,317,025
              

 

 

 

Total

               $ 891,645   
              

 

 

 

Short position contracts:

              

EURO-BOBL Future

     11         06/08/2015       $ 1,597,390       $ 1,590,854       $ 6,536   

Euro BUXL 30-Year Bond Future

     5         06/08/2015         980,871         946,900         33,971   

Euro-Bund Future

     14         06/08/2015         2,466,189         2,463,308         2,881   

U.S. Treasury 10-Year Note Future

     4,220         06/19/2015             540,455,752             541,742,500         (1,286,748

U.S. Treasury CME Ultra Long Term Bond Future

     916         06/19/2015         154,714,272         150,682,000         4,032,272   
              

 

 

 

Total

               $ 2,788,912   
              

 

 

 

Total futures contracts

               $ 3,680,557   
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

52

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed
Rate/Implied
Credit Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on single-name issues:

               

Buy protection:

                 

Colombia (Republic of)

  BOA     USD        295,000      (1.00%)/1.19%     03/20/19      $ 2,391      $      $ 1,760      $ (631

Colombia (Republic of)

  BCLY     USD        595,000      (1.00%)/1.19%     03/20/19        5,904               3,551        (2,353

Indonesia (Republic of)

  BNP     USD        45,000      (1.00%)/1.38%     09/20/19        872               665        (207

Indonesia (Republic of)

  GSC     USD        145,000      (1.00%)/1.38%     09/20/19        2,983               2,144        (839

Indonesia (Republic of)

  BNP     USD        175,000      (1.00%)/1.38%     09/20/19        3,673               2,588        (1,085

Indonesia (Republic of)

  BCLY     USD        320,000      (1.00%)/1.38%     09/20/19        6,331               4,733        (1,598

Indonesia (Republic of)

  BNP     USD        265,000      (1.00%)/1.38%     09/20/19        5,558               3,919        (1,639

Indonesia (Republic of)

  BNP     USD        615,000      (1.00%)/1.38%     09/20/19        12,287               9,094        (3,193

Venezuela (Republic of)

  BOA     USD        745,000      (5.00%)/37.42%     03/20/19        138,288               408,059        269,771   

Venezuela (Republic of)

  DEUT     USD        730,000      (5.00%)/37.42%     03/20/19        140,818               399,843        259,025   

Venezuela (Republic of)

  DEUT     USD        585,000      (5.00%)/37.42%     03/20/19        106,318               320,422        214,104   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     425,423      $      $     1,156,778      $     731,355   
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

               

Sell protection:

                 

Brazil Republic

  GCS     USD        1,800,000      1.00%/2.33%     06/20/20      $      $     (159,445   $ (111,974   $ 47,471   

Brazil Republic

  GCS     USD        1,245,000      1.00%/2.33%     06/20/20               (110,283     (77,449     32,834   

Hungary (Republic of)

  BNP     USD        6,990,000      1.00%/1.31%     12/20/19               (210,186     (90,148     120,038   

Kazakhstan (Republic of)

  DEUT     USD        90,000      1.00%/2.03%     06/20/19               (3,341     (3,557     (216

Kazakhstan (Republic of)

  MSC     USD        140,000      1.00%/2.03%     06/20/19               (4,792     (5,533     (741

Kazakhstan (Republic of)

  BCLY     USD        435,000      1.00%/2.03%     06/20/19               (14,870     (17,192     (2,322

Peru (Republic of)

  BCLY     USD        860,000      1.00%/1.11%     03/20/19               (9,148     (2,760     6,388   

Peru (Republic of)

  BOA     USD        420,000      1.00%/1.11%     03/20/19               (3,707     (1,348     2,359   

Petrobras International Finance Co.

  GSC     USD        475,000      1.00%/4.13%     06/20/20               (89,150     (66,093     23,057   

Russian Federation

  CBK     USD        3,790,000      1.00%/3.54%     03/20/20               (577,363     (414,685     162,678   

Russian Federation

  BOA     USD        1,895,000      1.00%/3.54%     03/20/20               (286,618     (207,342     79,276   

Russian Federation

  CBK     USD        642,646      1.00%/3.57%     06/20/20               (110,279     (74,173     36,106   

Russian Federation

  BOA     USD        1,050,000      1.00%/3.57%     06/20/20               (135,015     (121,163     13,852   

Russian Federation

  BOA     USD        640,000      1.00%/3.57%     06/20/20               (79,770     (73,851     5,919   

Turkey (Republic of)

  BNP     USD        45,000      1.00%/2.04%     09/20/19               (1,439     (1,891     (452

Turkey (Republic of)

  GSC     USD        145,000      1.00%/2.04%     09/20/19               (4,978     (6,092     (1,114

Turkey (Republic of)

  BNP     USD        175,000      1.00%/2.04%     09/20/19               (5,877     (7,353     (1,476

Turkey (Republic of)

  BNP     USD        265,000      1.00%/2.04%     09/20/19               (8,840     (11,134     (2,294

Turkey (Republic of)

  BNP     USD        320,000      1.00%/2.04%     09/20/19               (10,798     (13,445     (2,647

Turkey (Republic of)

  BNP     USD        615,000      1.00%/2.04%     09/20/19               (20,025     (25,839     (5,814

Turkey (Republic of)

  DEUT     USD        1,655,000      1.00%/2.11%     12/20/19               (68,615     (78,417     (9,802
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $      $     (1,914,539   $ (1,411,439   $ 503,100   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 425,423      $ (1,914,539   $ (254,661   $     1,234,455   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $ 425,423      $ (1,914,539   $ (254,661   $ 1,234,455   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

The accompanying notes are an integral part of these financial statements.

 

 

53

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost Basis     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.HY.22

  USD     2,749,950        5.00   06/20/19     169,407      $ 251,463      $ 82,056   
         

 

 

   

 

 

   

 

 

 

Total

          $     169,407      $     251,463      $     82,056   
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Sell      06/17/15       CBA    $ 3,113,113       $     3,196,331       $ (83,218

BRL

   Sell      06/02/15       UBS      4,054,393         3,922,473         131,920   

BRL

   Sell      06/02/15       MSC      399,698         434,044         (34,346

BRL

   Sell      06/02/15       MSC      807,307         864,152         (56,845

COP

   Sell      06/17/15       SSG      740,337         775,300         (34,963

COP

   Sell      06/17/15       BOA      411,953         453,893         (41,940

COP

   Sell      06/17/15       JPM      451,885         503,820         (51,935

COP

   Sell      06/17/15       UBS      779,285         857,857         (78,572

EUR

   Buy      05/29/15       DEUT      575,786         595,341         19,555   

EUR

   Buy      06/17/15       CBK      311,770         319,091         7,321   

EUR

   Sell      05/29/15       DEUT      9,181,065         9,492,879         (311,814

EUR

   Sell      06/17/15       RBC      630,384         664,024         (33,640

EUR

   Sell      06/17/15       UBS      1,392,433         1,444,898         (52,465

EUR

   Sell      06/17/15       CSFB      1,780,000         1,870,728         (90,728

EUR

   Sell      06/17/15       UBS      2,632,733         2,739,241         (106,508

EUR

   Sell      06/17/15       NAB      3,138,242         3,316,751         (178,509

EUR

   Sell      06/17/15       RBS      3,126,794         3,314,504         (187,710

MXN

   Buy      06/17/15       MSC      1,419,504         1,439,298         19,794   

MXN

   Buy      06/17/15       RBC      1,419,839         1,439,297         19,458   

PEN

   Sell      06/17/15       SSG      281,031         279,900         1,131   

PEN

   Sell      06/17/15       SSG      807,267         809,904         (2,637

PEN

   Sell      06/17/15       SCB      803,965         809,904         (5,939

ZAR

   Sell      06/17/15       JPM      562,113         578,243         (16,130

ZAR

   Sell      06/17/15       JPM          2,604,846         2,703,250         (98,404
                 

 

 

 

Total

  

   $     (1,267,124
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

54

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

UBS

   UBS AG
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

COP

   Colombian Peso

EUR

   Euro

MXN

   Mexican Peso

PEN

   Peruvian Nuevo Sol

ZAR

   South African Rand
Index Abbreviations:

CDX.NA.HY

   Credit Derivatives North American High Yield

MSCI

   Morgan Stanley Capital International
Other Abbreviations:

ADR

   American Depositary Receipt

CMO

   Collateralized Mortgage Obligation

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

OJSC

   Open Joint Stock Company

OTC

   Over-the-Counter

REIT

   Real Estate Investment Trust
Municipal Abbreviations:

GO

   General Obligation

Rev

   Revenue

 

The accompanying notes are an integral part of these financial statements.

 

 

  55  

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Common Stocks

        

Banks

   $ 417,540,552      $ 417,540,552      $      $   

Capital Goods

     243,055,067        209,483,776        33,571,291          

Commercial & Professional Services

     22,141,891        22,141,891                 

Consumer Services

     42,400,898        42,400,898                 

Diversified Financials

     88,075,642        88,075,642                 

Energy

     342,496,972        321,364,342        21,132,630          

Food & Staples Retailing

     26,907,849        26,907,849                 

Food, Beverage & Tobacco

     263,535,548        233,366,414        30,169,134          

Health Care Equipment & Services

     20,005,402        20,005,402                 

Household & Personal Products

     50,686,132        50,686,132                 

Insurance

     102,884,434        102,884,434                 

Materials

     111,948,735        111,948,735                 

Media

     23,965,080        23,965,080                 

Pharmaceuticals, Biotechnology & Life Sciences

     449,350,508        400,252,533        49,097,975          

Semiconductors & Semiconductor Equipment

     180,069,859        180,069,859                 

Software & Services

     156,108,615        156,108,615                 

Technology Hardware & Equipment

     85,777,611        85,777,611                 

Telecommunication Services

     132,860,056        132,860,056                 

Transportation

     26,422,300        26,422,300                 

Utilities

     189,960,642        144,964,115        44,996,527          

Preferred Stocks

     2,215,667        2,215,667                 

Asset & Commercial Mortgage Backed Securities

     112,361,014               112,361,014          

Corporate Bonds

     2,787,663,975               2,787,663,975          

Foreign Government Obligations

     277,932,614               277,932,614          

Municipal Bonds

     19,548,926               19,548,926          

Senior Floating Rate Interests

     11,406,317               11,406,317          

U.S. Government Securities

     5,823,898               5,823,898          

Convertible Bonds

     1,263,987               1,263,987          

Short-Term Investments

     194,735,028        194,735,028                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     6,389,145,219      $     2,994,176,931      $     3,394,968,288      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 199,179      $      $ 199,179      $   

Futures Contracts (2)

     8,284,330        8,284,330                 

Swaps - Credit Default (2)

     1,354,934               1,354,934          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 9,838,443      $ 8,284,330      $ 1,554,113      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (1,466,303   $      $ (1,466,303   $   

Futures Contracts (2)

     (4,603,773     (4,603,773              

Swaps - Credit Default (2)

     (38,423            (38,423       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (6,108,499   $ (4,603,773   $ (1,504,726   $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $2,621,547 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

56

 


The Hartford Balanced Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Corporate Bonds     Total  

Beginning balance

   $      26,997,111      $ 9,563      $ 27,006,674   

Purchases

     2,983,392            361,587               3,344,979   

Sales

     (5,669,704            (5,669,704

Accrued discounts/(premiums)

     209,777        21        209,798   

Total realized gain/(loss)

     402,867               402,867   

Net change in unrealized appreciation/depreciation

     (394,061     9,871        (384,190

Transfers into Level 3 (1)

                     

Transfers out of Level 3 (1)

     (24,529,382     (381,042     (24,910,424
  

 

 

   

 

 

   

 

 

 

Ending balance

   $      $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

The accompanying notes are an integral part of these financial statements.

 

 

  57  

 


The Hartford Checks and Balances Fund

 

 

 

Composition by Investments

as of April 30, 2015 (Unaudited)

 

Fund Name

   Percentage of
Net Assets
 

The Hartford Capital Appreciation Fund

     33.3

The Hartford Dividend and Growth Fund

     33.4   

The Hartford Total Return Bond Fund

     33.2   

Other Assets & Liabilities

     0.1   
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

58

 


The Hartford Checks and Balances Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
AFFILIATED INVESTMENT COMPANIES - 99.9%  
      Domestic Equity Funds - 66.7%      
  15,040,571     

The Hartford Capital Appreciation Fund

  $ 655,167,253   
  25,338,040     

The Hartford Dividend and Growth Fund

    658,789,029   
   

 

 

 
 

Total Domestic Equity Funds
(cost $1,070,132,193)

  $ 1,313,956,282   
   

 

 

 
      Taxable Fixed Income Funds - 33.2%      
  61,265,479     

The Hartford Total Return Bond Fund

  $ 654,927,970   
   

 

 

 
 

Total Taxable Fixed Income Funds
(cost $661,199,683)

  $ 654,927,970   
   

 

 

 
 

Total Affiliated Investment Companies
(cost $1,731,331,876)

  $ 1,968,884,252   
   

 

 

 
 

Total Long-Term Investments
(cost $1,731,331,876)

  $ 1,968,884,252   
   

 

 

 
 

Total Investments
(cost $1,731,331,876) ^

    99.9    $ 1,968,884,252   
 

Other Assets and Liabilities

    0.1      1,159,465   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     1,970,043,717   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

59

 


The Hartford Checks and Balances Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^  At April 30, 2015, the cost of securities for federal income tax purposes was $1,796,664,378 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 178,491,587   

Unrealized Depreciation

     (6,271,713
  

 

 

 

Net Unrealized Appreciation

   $     172,219,874   
  

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

60

 


The Hartford Checks and Balances Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Affiliated Investment Companies

   $ 1,968,884,252       $ 1,968,884,252       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,968,884,252       $     1,968,884,252       $     —       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

61

 


The Hartford Global All-Asset Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*

   Percentage of
Net Assets
 

Aaa/AAA

     15.4

Aa/AA

     1.8   

A

     1.8   

Baa/BBB

     1.9   

Ba/BB

     1.5   

B

     0.2   

Caa/CCC or Lower

     0.9   

Not Rated

     0.8   

Non-Debt Securities and Other Short-Term Instruments

     79.7   

Other Assets & Liabilities

     (4.0
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category

   Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     59.3

Exchange Traded Funds

     4.8   

Preferred Stocks

     0.1   

Warrants

     0.1   
  

 

 

 

Total

     64.3
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     6.6

Corporate Bonds

     2.8   

Foreign Government Obligations

     7.4   

U.S. Government Agencies

     5.6   

U.S. Government Securities

     1.9   
  

 

 

 

Total

     24.3
  

 

 

 

Short-Term Investments

     15.4   

Purchased Options

     0.0   

Other Assets & Liabilities

     (4.0
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

62

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 6.6%  
            Cayman Islands - 0.4%  
   

Ares CLO Ltd.

 
  $        255,000     

1.73%, 04/20/2023 (1)(2)

  $ 251,991   
   

Carlyle Global Market Strategies Ltd.

 
    250,000     

1.79%, 04/17/2025 (1)(2)

    249,875   
   

Dryden Senior Loan Fund

 
    350,000     

1.76%, 07/15/2026 (1)(2)

    350,280   
   

Madison Park Funding Ltd.

 
    250,000     

2.61%, 01/27/2026 (1)(2)

    253,375   
   

Magnetite CLO Ltd.

 
    250,000     

2.23%, 07/25/2026 (1)(2)

    248,975   
   

OZLM Funding Ltd.

 
    285,000     

1.82%, 04/17/2026 (1)(2)

    285,114   
     

 

 

 
        1,639,610   
     

 

 

 
            United Kingdom - 0.1%  
   

Granite Master Issuer plc

 
    179,791     

0.32%, 12/20/2054 (2)

    178,694   
    36,568     

0.36%, 12/20/2054 (2)

    36,359   
    152,365     

0.38%, 12/20/2054 (2)

    151,542   
    42,662     

0.38%, 12/20/2054 (2)

    42,432   
     

 

 

 
        409,027   
     

 

 

 
            United States - 6.1%  
   

Ally Master Owner Trust

 
    100,000     

1.54%, 09/15/2019

    100,371   
   

American Credit Acceptance Receivables Trust

 
    66,107     

1.33%, 07/10/2018 (1)

    66,171   
   

AmeriCredit Automobile Receivables Trust

 
    425,000     

2.64%, 10/10/2017

    429,344   
    280,000     

2.67%, 01/08/2018

    282,104   
   

ARI Fleet Lease Trust

 
    211,084     

0.48%, 01/15/2021 (1)(2)

    210,708   
   

Asset Backed Securities Corp. Home Equity Loan Trust

 
    282,790     

0.68%, 08/25/2034 (2)

    252,966   
   

Banc of America Commercial Mortgage Trust

 
    284,511     

5.94%, 02/10/2051 (2)

    307,538   
   

Banc of America Mortgage Trust

 
    78,354     

2.70%, 04/25/2034 (2)

    79,212   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    30,465     

2.26%, 08/25/2035 (2)

    30,638   
    368,923     

2.59%, 07/25/2036 (2)

    307,310   
   

Bear Stearns Asset Backed Securities Trust

 
    573,044     

6.00%, 11/25/2035

    514,809   
   

Bear Stearns Commercial Mortgage Securities, Inc.

 
    349,382     

5.60%, 03/11/2039 (2)

    356,723   
    350,000     

5.90%, 06/11/2040 (2)

    377,061   
   

Cabela’s Master Credit Card Trust

 
    230,000     

0.63%, 07/15/2022 (2)

    229,323   
    425,000     

0.83%, 08/16/2021 (1)(2)

    427,810   
   

Citigroup/Deutsche Bank Commercial Mortgage Trust

 
    244,254     

5.40%, 07/15/2044 (2)

    245,301   
   

Commercial Mortgage Pass-Through Certificates

 
    298,666     

5.94%, 06/10/2046 (2)

    308,242   
   

Connecticut Avenue Securities Series

 
    283,819     

1.78%, 01/25/2024 (2)

    285,707   
    725,000     

2.78%, 05/25/2024 (2)

    672,622   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 6.6% - (continued)  
            United States - 6.1% - (continued)  
  $        1,060,000     

2.78%, 05/25/2024 (2)

  $ 988,319   
    405,000     

3.08%, 07/25/2024 (2)

    383,788   
    1,060,000     

3.18%, 07/25/2024 (2)

    1,015,482   
    825,000     

4.58%, 01/25/2024 (2)

    860,474   
    940,000     

4.73%, 02/25/2025 (2)

    972,870   
    775,000     

5.08%, 11/25/2024 (2)

    824,450   
    555,000     

5.18%, 11/25/2024 (2)

    590,207   
    430,000     

5.43%, 10/25/2023 (2)

    470,214   
   

Countrywide Alternative Loan Trust

 
    518,211     

5.25%, 08/25/2035

    474,207   
   

Countrywide Home Loans, Inc.

 
    357,104     

2.55%, 09/25/2047 (2)

    317,683   
   

Credit Acceptance Automotive Loan Trust

 
    250,000     

1.83%, 04/15/2021 (1)

    249,597   
    265,000     

2.21%, 09/15/2020 (1)

    266,267   
    300,000     

2.26%, 10/15/2021 (1)

    301,917   
    250,000     

2.29%, 04/15/2022 (1)

    250,932   
   

Fifth Third Automotive Trust

 
    290,062     

0.88%, 10/16/2017

    290,548   
   

First Investors Automotive Owner Trust

 
    205,000     

1.06%, 11/15/2018 (1)

    204,894   
    172,861     

1.23%, 03/15/2019 (1)

    173,024   
   

FREMF Mortgage Trust

 
    160,000     

3.56%, 11/25/2046 (1)(2)

    163,754   
    105,000     

3.95%, 06/25/2047 (1)(2)

    109,415   
    500,000     

4.07%, 07/25/2045 (1)(2)

    518,601   
    215,000     

4.38%, 06/25/2047 (1)(2)

    226,207   
   

GE Commercial Mortgage Corp.

 
    500,000     

4.82%, 06/10/2048 (2)

    499,537   
   

GE Dealer Floorplan Master Note Trust

 
    425,000     

0.67%, 06/20/2017 (2)

    425,092   
   

GE Equipment Transportation LLC

 
    100,000     

1.31%, 09/24/2020

    100,471   
   

GS Mortgage Securities Trust

 
    300,000     

5.16%, 12/10/2043 (1)(2)

    343,811   
   

GSR Mortgage Loan Trust

 
    122,307     

2.23%, 01/25/2035 (2)

    118,235   
    196,377     

2.68%, 09/25/2035 (2)

    196,849   
    381,977     

2.72%, 03/25/2047 (2)

    328,106   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    252,338     

5.41%, 12/15/2044 (2)

    254,333   
    345,850     

6.06%, 04/15/2045 (2)

    356,209   
   

JP Morgan Mortgage Acquisition Trust

 
    220,917     

5.40%, 11/25/2036

    222,459   
   

JP Morgan Mortgage Trust

 
    182,648     

3.00%, 09/25/2044

    184,651   
   

LB-UBS Commercial Mortgage Trust

 
    367,148     

5.43%, 02/15/2040

    387,796   
    370,294     

6.32%, 04/15/2041 (2)

    404,903   
   

LSTAR Securities Investment Trust

 
    212,461     

2.17%, 12/01/2021 (1)(2)

    210,037   
    205,999     

2.18%, 01/01/2020 (1)(2)

    203,134   
   

MASTR Adjustable Rate Mortgages Trust

 
    370,000     

0.81%, 03/25/2035 (2)

    360,160   
   

Morgan Stanley Capital I Trust

 
    14,576     

0.81%, 03/25/2035 (2)

    14,448   
    323,760     

5.83%, 10/15/2042 (2)

    329,117   
   

MortgageIT Trust

 
    321,012     

0.48%, 08/25/2035 (2)

    306,028   
    295,046     

0.82%, 02/25/2035 (2)

    287,689   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  63  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 6.6% - (continued)  
            United States - 6.1% - (continued)  
   

Nationstar Agency Advance Funding Trust

 
  $        200,000     

1.89%, 02/18/2048 (1)

  $ 196,894   
   

New York City Tax Lien

 
    37,282     

1.03%, 11/10/2027 (1)

    37,223   
   

Opteum Mortgage Acceptance Corp.

 
    410,000     

0.61%, 04/25/2035 (2)

    379,449   
   

Option One Mortgage Loan Trust

 
    110,483     

0.68%, 02/25/2035 (2)

    108,892   
   

Oscar US Funding Trust

 
    160,000     

1.00%, 08/15/2017 (1)

    159,897   
   

Prestige Automotive Receivables Trust

 
    285,000     

1.33%, 05/15/2019 (1)

    285,682   
    150,000     

3.25%, 07/15/2019 (1)

    152,263   
   

Residential Asset Mortgage Products Trust

 
    87,806     

0.59%, 11/25/2035 (2)

    86,471   
   

Residential Asset Securities Corp.

 
    79,027     

0.47%, 03/25/2036 (2)

    77,897   
   

Residential Funding Mortgage Securities, Inc.

 
    366,659     

3.21%, 02/25/2036 (2)

    327,631   
   

Santander Drive Automotive Receivables Trust

 
    100,000     

1.82%, 05/15/2019

    100,113   
    417,870     

3.01%, 04/16/2018

    421,294   
    233,625     

3.78%, 11/15/2017

    235,487   
    187,120     

3.82%, 08/15/2017

    188,400   
   

Skopos Auto Receivables Trust 2015-1

 
    125,000     

3.10%, 12/15/2023 (1)

    124,999   
   

Soundview Home Loan Trust

 
    68,966     

0.59%, 11/25/2035 (2)

    68,086   
   

Springleaf Funding Trust

 
    155,000     

2.41%, 12/15/2022 (1)

    155,242   
   

Structured Asset Securities Corp.

 
    125,092     

0.33%, 02/25/2036 (2)

    123,434   
   

Thornburg Mortgage Securities Trust

 
    263,753     

2.22%, 04/25/2045 (2)

    265,041   
   

Wachovia Bank Commercial Mortgage Trust

 
    170,000     

5.43%, 10/15/2044 (1)(2)

    170,758   
    316,852     

5.66%, 03/15/2042 (1)(2)

    316,713   
   

Wells Fargo Home Equity Trust

 
    100,000     

0.59%, 04/25/2035 (2)

    99,652   
   

Westlake Automobile Receivables Trust

 
    250,000     

2.24%, 04/15/2020 (1)

    251,107   
   

World Omni Automotive Receivables Trust

 
    340,000     

1.06%, 09/16/2019

    340,098   
     

 

 

 
        25,342,598   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $27,279,476)

  $ 27,391,235   
     

 

 

 
CORPORATE BONDS - 2.8%  
            Australia - 0.1%  
   

QBE Insurance Group Ltd.

 
    200,000     

6.75%, 12/02/2044 (2)(3)

  $ 216,500   
     

 

 

 
            Austria - 0.1%  
   

BAWAG PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG

 
  EUR        200,000     

8.13%, 10/30/2023 (3)

    275,946   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 2.8% - (continued)  
            Austria - 0.1% - (continued)  
   

Vienna Insurance Group AG Wiener Versicherung Gruppe

 
  EUR        200,000     

3.75%, 03/02/2046 (2)(3)

  $ 225,735   
     

 

 

 
        501,681   
     

 

 

 
            Belgium - 0.1%  
   

KBC Groep N.V.

 
    350,000     

5.63%, 03/19/2019 (2)(3)(4)

    394,471   
     

 

 

 
            Denmark - 0.1%  
   

Danske Bank AS

 
    200,000     

5.75%, 04/06/2020 (2)(3)(4)

    231,868   
   

Nykredit Realkredit AS

 
    100,000     

4.00%, 06/03/2036 (3)

    113,689   
     

 

 

 
        345,557   
     

 

 

 
            France - 0.4%  
   

BNP Paribas S.A.

 
  $        175,000     

3.25%, 03/03/2023

    177,467   
   

Credit Agricole S.A.

 
  GBP        175,000     

7.50%, 06/23/2026 (2)(3)(4)

    273,661   
  $        200,000     

8.13%, 09/19/2033 (2)(3)

    225,750   
   

Natixis

 
    125,000     

10.00%, 04/30/2018 (3)(4)

    148,750   
   

SCOR SE

 
  EUR        300,000     

3.88%, 10/01/2025 (2)(3)(4)

    363,216   
   

Societe Generale S.A.

 
  $        400,000     

6.00%, 01/27/2020 (2)(3)(4)

    381,240   
  EUR        100,000     

6.75%, 04/07/2021 (2)(3)(4)

    115,833   
     

 

 

 
        1,685,917   
     

 

 

 
            Germany - 0.1%  
   

Commerzbank AG

 
  $        350,000     

8.13%, 09/19/2023 (3)

    422,625   
     

 

 

 
            Ireland - 0.2%  
   

Aquarius Invest. plc Swiss Reinsurance Co., Ltd.

 
    200,000     

6.38%, 09/01/2024 (2)(3)

    213,642   
   

Baggot Securities Ltd.

 
  EUR        250,000     

10.24%, 06/01/2015 (3)(4)

    294,748   
   

Bank of Ireland

 
    200,000     

1.25%, 04/09/2020 (3)

    223,149   
     

 

 

 
        731,539   
     

 

 

 
            Italy - 0.3%  
   

Banca Popolare di Milano Scarl

 
    150,000     

4.25%, 01/30/2019 (3)

    182,906   
   

Intesa Sanpaolo S.p.A.

 
  $        200,000     

5.25%, 01/12/2024

    222,433   
  EUR        250,000     

9.50%, 06/01/2016 (2)(3)(4)

    302,816   
   

Intesa Sanpaolo Vita S.p.A.

 
    100,000     

4.75%, 12/17/2024 (2)(3)(4)

    120,983   
   

UniCredit S.p.A.

 
  $        250,000     

8.00%, 06/03/2024 (2)(3)(4)

    255,500   
     

 

 

 
        1,084,638   
     

 

 

 
            Japan - 0.1%  
   

Sumitomo Life Insurance Co.

 
    350,000     

6.50%, 09/20/2073 (2)(3)

    414,400   
     

 

 

 
            Netherlands - 0.2%  
   

ABN Amro Bank N.V.

 
    225,000     

6.25%, 04/27/2022 (3)

    255,401   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 2.8% - (continued)  
            Netherlands - 0.2% - (continued)  
   

ING Bank N.V.

 
  $        275,000     

4.13%, 11/21/2023 (3)

  $ 285,642   
   

ING Groep N.V.

 
    280,000     

6.00%, 04/16/2020 (2)(4)

    278,775   
   

NN Group N.V.

 
  EUR        150,000     

4.63%, 04/08/2044 (2)(3)

    190,999   
     

 

 

 
        1,010,817   
     

 

 

 
            Spain - 0.2%  
   

Banco Bilbao Vizcaya Argentaria S.A.

 
    200,000     

7.00%, 02/19/2019 (2)(3)(4)

    230,184   
   

Banco Santander S.A.

 
    200,000     

6.25%, 03/12/2019 (2)(3)(4)

    225,412   
   

Bankia S.A.

 
    200,000     

4.00%, 05/22/2024 (3)

    224,290   
    100,000     

4.13%, 03/24/2036

    159,985   
   

BBVA International Preferred SAU

 
  $        100,000     

5.92%, 04/18/2017 (2)(4)

    103,400   
     

 

 

 
        943,271   
     

 

 

 
            Switzerland - 0.2%  
   

Credit Suisse Group AG

 
  EUR        200,000     

5.75%, 09/18/2025 (2)(3)

    259,446   
   

UBS AG

 
  $        275,000     

4.75%, 05/22/2023 (3)

    282,784   
    250,000     

5.13%, 05/15/2024 (3)

    259,190   
     

 

 

 
        801,420   
     

 

 

 
            United Kingdom - 0.6%  
   

Abbey National Treasury Services plc

 
    200,000     

4.00%, 03/13/2024

    213,108   
   

Barclays Bank plc

 
    200,000     

7.63%, 11/21/2022

    234,300   
  EUR        350,000     

8.00%, 12/15/2020 (2)(4)

    432,344   
   

Coventry Building Society

 
  GBP        200,000     

6.38%, 11/01/2019 (2)(3)(4)

    300,092   
   

HSBC Holdings plc

 
  $        275,000     

5.63%, 01/17/2020 (2)(4)

    281,188   
   

Lloyds Banking Group plc

 
    350,000     

7.50%, 06/27/2024 (2)(4)

    373,625   
   

Nationwide Building Society

 
  GBP        400,000     

6.88%, 06/20/2019 (3)(4)

    617,070   
   

Royal Bank of Scotland plc

 
  $        200,000     

5.63%, 08/24/2020

    230,930   
     

 

 

 
        2,682,657   
     

 

 

 
            United States - 0.1%  
   

Santander Holdings USA, Inc.

 
    235,000     

2.65%, 04/17/2020

    233,565   
   

Teva Pharmaceutical Finance Co. LLC

 
    15,000     

6.15%, 02/01/2036

    18,335   
     

 

 

 
        251,900   
     

 

 

 
   

Total Corporate Bonds
(cost $11,779,936)

  $ 11,487,393   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 7.4%  
            Brazil - 0.3%  
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        1,472,622     

6.00%, 08/15/2022 (5)

  $ 483,153   

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 7.4% - (continued)  
            Brazil - 0.3% - (continued)  
   

Brazil Notas do Tesouro Nacional Series B

 
  BRL        1,650,804     

6.00%, 08/15/2050 (5)

  $ 543,504   
     

 

 

 
        1,026,657   
     

 

 

 
            Germany - 0.7%  
   

Deutsche Bundesrepublik Inflation Linked Bond

 
  EUR        2,327,439     

0.10%, 04/15/2023 (5)

    2,873,760   
     

 

 

 
            Greece - 0.3%  
   

Hellenic Republic Government Bond

 
    75,450,000     

0.00%, 10/15/2042 (2)

    457,483   
    125,000     

3.00%, 02/24/2028 (2)(3)

    75,792   
    300,000     

3.00%, 02/24/2032 (2)(3)

    182,980   
    350,000     

3.00%, 02/24/2035 (2)(3)

    211,224   
    425,000     

3.00%, 02/24/2037 (2)(3)

    257,384   
     

 

 

 
        1,184,863   
     

 

 

 
            Italy - 0.6%  
   

Italy Buoni Poliennali Del Tesoro

 
    1,320,557     

2.10%, 09/15/2017 (3)(5)

    1,583,871   
    563,577     

2.55%, 09/15/2041 (3)(5)

    853,576   
     

 

 

 
        2,437,447   
     

 

 

 
            Japan - 1.0%  
   

Japanese Government CPI Linked Bond

 
  JPY        147,292,500     

0.10%, 09/10/2023 (5)

    1,337,784   
    314,067,200     

0.10%, 09/10/2024 (5)

    2,873,557   
     

 

 

 
        4,211,341   
     

 

 

 
            Mexico - 0.3%  
   

Mexican Udibonos

 
  MXN        6,324,214     

4.00%, 11/15/2040 (5)

    452,707   
    11,086,244     

4.50%, 11/22/2035 (5)

    851,254   
     

 

 

 
        1,303,961   
     

 

 

 
            New Zealand - 2.0%  
   

New Zealand Government Bond

 
  NZD        3,659,695     

2.00%, 09/20/2025 (3)(5)

    2,854,627   
    2,273,060     

3.00%, 09/20/2030 (3)(5)

    2,009,268   
    4,493,610     

4.50%, 02/15/2016 (3)(5)

    3,497,107   
     

 

 

 
        8,361,002   
     

 

 

 
            Norway - 0.2%  
   

Norway Government Bond

 
  NOK        6,875,000     

3.00%, 03/14/2024

    1,024,461   
     

 

 

 
            Portugal - 0.4%  
   

Portugal Obrigacoes do Tesouro OT

 
  EUR        275,000     

3.88%, 02/15/2030 (1)(3)

    359,843   
    675,000     

4.10%, 04/15/2037 (1)(3)

    914,435   
    350,000     

5.65%, 02/15/2024 (1)(3)

    511,675   
     

 

 

 
        1,785,953   
     

 

 

 
            Singapore - 0.5%  
   

Singapore Government Bond

 
  SGD        2,375,000     

3.00%, 09/01/2024

    1,912,128   
     

 

 

 
            South Korea - 0.9%  
   

Inflation Linked Korea Treasury Bond

 
  KRW        4,020,688,035     

1.13%, 06/10/2023 (5)

    3,589,721   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

65

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 7.4% - (continued)  
            Sweden - 0.2%  
   

Sweden Inflation Linked Bond

 
  SEK        4,945,617     

3.50%, 12/01/2028 (5)

  $ 981,641   
     

 

 

 
   

Total Foreign Government Obligations
(cost $33,028,898)

  $ 30,692,935   
     

 

 

 
U.S. GOVERNMENT AGENCIES - 5.6%  
            United States - 5.6%  
   

FHLMC

 
  $        460,000     

3.48%, 10/25/2027 (2)

  $ 460,000   
    700,000     

3.50%, 05/01/2045 (6)

    732,307   
    300,000     

3.50%, 06/01/2045 (6)

    313,131   
    1,550,000     

4.00%, 05/01/2045 (6)

    1,653,996   
    350,000     

4.43%, 11/25/2023 (2)

    360,671   
    1,600,000     

4.50%, 05/01/2045 (6)

    1,739,600   
   

FNMA

 
    5,000     

2.44%, 01/01/2023

    5,016   
    1,200,000     

2.50%, 05/01/2030 (6)

    1,230,211   
    4,802     

2.66%, 09/01/2022

    4,908   
    30,000     

2.76%, 05/01/2021

    31,095   
    4,898     

2.78%, 04/01/2022

    5,066   
    284,297     

2.83%, 06/01/2022

    294,770   
    4,725     

2.98%, 01/01/2022

    4,941   
    200,000     

3.00%, 05/01/2030 (6)

    209,288   
    875,000     

3.00%, 05/01/2045 (6)

    890,331   
    4,804     

3.20%, 04/01/2022

    5,087   
    30,000     

3.21%, 05/01/2023

    31,690   
    20,000     

3.34%, 04/01/2024

    21,278   
    341,263     

3.37%, 07/01/2025

    362,432   
    133,047     

3.42%, 04/01/2024

    142,337   
    4,981     

3.45%, 01/01/2024

    5,330   
    4,980     

3.47%, 01/01/2024

    5,336   
    6,050,000     

3.50%, 05/01/2045 (6)

    6,338,320   
    194,649     

3.65%, 08/01/2023

    211,736   
    14,824     

3.67%, 08/01/2023

    16,146   
    5,000     

3.70%, 10/01/2023

    5,455   
    5,000     

3.76%, 03/01/2024

    5,468   
    294,267     

3.78%, 10/01/2023

    322,726   
    196,087     

3.81%, 11/01/2023

    215,494   
    10,000     

3.86%, 12/01/2025

    10,998   
    5,000     

3.86%, 11/01/2023

    5,531   
    19,580     

3.87%, 10/01/2025

    21,581   
    29,738     

3.89%, 05/01/2030

    32,739   
    25,000     

3.93%, 10/01/2023

    27,727   
    9,880     

3.96%, 05/01/2034

    11,053   
    5,000     

3.97%, 05/01/2029

    5,586   
    800,000     

4.00%, 06/01/2045 (6)

    853,734   
    14,547     

4.06%, 10/01/2028

    16,355   
    1,900,000     

4.50%, 05/01/2045 (6)

    2,067,882   
    1,000,000     

5.00%, 05/13/2045

    1,113,773   
    278,895     

5.14%, 10/01/2024

    331,550   
    100,000     

6.00%, 05/01/2045 (6)

    114,280   
    263,351     

7.27%, 02/01/2031

    339,507   
   

GNMA

  

    500,000     

3.00%, 05/01/2045 (6)

    513,672   
    800,000     

3.50%, 05/01/2045 (6)

    843,156   
    1,000,000     

6.00%, 05/01/2045 (6)

    1,137,500   
     

 

 

 
   

Total U.S. Government Agencies
(cost $22,980,214)

  $ 23,070,790   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT SECURITIES - 1.9%  
            United States - 1.9%  
            U.S. Treasury Bonds - 1.0%  
  $        637,988     

0.63%, 02/15/2043 (5)

  $ 617,801   
    2,512,161     

3.38%, 04/15/2032 (5)

    3,686,988   
     

 

 

 
        4,304,789   
     

 

 

 
            U.S. Treasury Notes - 0.9%  
   

Treasury Inflation Protected Security

 
    3,558,625     

0.13%, 01/15/2023 (5)

    3,588,094   
     

 

 

 
   

Total U.S. Government Securities
(cost $7,887,480)

  $ 7,892,883   
     

 

 

 
COMMON STOCKS - 59.3%  
            Australia - 0.6%  
    58,372     

Beach Energy Ltd.

  $ 50,916   
    1,903     

BHP Billiton Ltd. ADR

    97,605   
    24,708     

Buru Energy Ltd. (7)

    10,488   
    26,083     

Dick Smith Holdings Ltd.

    42,996   
    4,242     

Domino’s Pizza Enterprises Ltd.

    122,088   
    792,857     

Evolution Mining Ltd.

    632,655   
    12,800     

Federation Centres REIT

    29,738   
    7,736     

Goodman Group REIT

    37,960   
    2,826     

GrainCorp Ltd. Class A

    22,030   
    319,063     

Kingsgate Consolidated Ltd. (7)

    179,214   
    541,300     

Mirabela Nickel Ltd. (7)

    56,798   
    22,783     

Mirvac Group REIT

    36,094   
    23,942     

New South Resources Ltd. (7)

    30,470   
    12,831     

Nufarm Ltd.

    73,539   
    366,405     

OceanaGold Corp.

    698,493   
    29,103     

Orora Ltd.

    50,635   
    10,440     

Santos Ltd.

    67,989   
    7,342     

Stockland REIT

    25,660   
    41,870     

Treasury Wine Estates Ltd.

    183,632   
    4,433     

Westfield Corp. REIT

    32,958   
    2,478     

Woolworths Ltd.

    57,533   
     

 

 

 
        2,539,491   
     

 

 

 
            Austria - 0.2%  
    472     

Schoeller-Bleckmann Oilfield Equipment AG

    33,274   
    58,485     

Wienerberger AG

    951,885   
     

 

 

 
        985,159   
     

 

 

 
            Belgium - 0.2%  
    1,562     

Anheuser-Busch InBev N.V.

    190,171   
    1,919     

Anheuser-Busch InBev N.V. ADR

    230,357   
    4,228     

Ontex Group N.V.(7)

    125,727   
    1,400     

UCB S.A.

    100,846   
    2,330     

Umicore S.A.

    115,816   
     

 

 

 
        762,917   
     

 

 

 
            Bermuda - 0.0%  
    4,836     

Seadrill Ltd.

    63,303   
     

 

 

 
            Brazil - 0.1%  
    3,624     

BRF S.A. ADR

    77,807   
    9,112     

Cosan Ltd. Class A

    66,153   
    3,795     

SLC Agricola S.A.

    21,980   
     

 

 

 
        165,940   
     

 

 

 
            British Virgin Islands - 0.1%  
    73,956     

Atlas Mara Ltd. (7)

    513,255   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

66

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Canada - 1.7%  
    1,754     

Agrium, Inc.

  $ 181,724   
    1,745     

AGT Food & Ingredients, Inc.

    38,603   
    27,615     

AuRico Gold, Inc.

    96,376   
    20,638     

Bank of Nova Scotia

    1,138,041   
    2,139     

BCE, Inc.

    94,300   
    242     

Brookfield Asset Management, Inc. Class A

    13,032   
    18,342     

Callidus Capital Corp. (7)

    243,243   
    18,014     

Cameco Corp.

    316,686   
    1,066     

Canadian Apartment Properties REIT

    25,773   
    14,770     

Canadian Imperial Bank of Commerce

    1,186,007   
    3,185     

Canadian Natural Resources Ltd.

    105,832   
    86,066     

Centerra Gold, Inc.

    445,132   
    12,110     

EcoSynthetix, Inc. (7)

    13,450   
    2,657     

Enbridge, Inc.

    139,041   
    12,923     

First National Financial Corp.

    241,751   
    3,226     

Gildan Activewear, Inc.

    102,248   
    1,969     

Goldcorp, Inc.

    37,076   
    1,856     

IMAX Corp. (7)

    69,340   
    2,247     

Imperial Oil Ltd.

    99,160   
    35,768     

Lundin Mining Corp. (7)

    172,664   
    1,725     

Methanex Corp.

    103,862   
    29,475     

National Bank of Canada

    1,190,971   
    4,334     

Potash Corp. of Saskatchewan, Inc.

    141,533   
    5,480     

Quebecor, Inc. Class B

    150,706   
    15,402     

SunOpta, Inc. (7)

    159,257   
    1,695     

TELUS Corp.

    58,626   
    256,198     

Timmins Gold Corp. (7)

    157,138   
    4,360     

TransCanada Corp.

    202,377   
    21,751     

Trican Well Service Ltd.

    91,944   
    25,327     

Trinidad Drilling Ltd.

    106,430   
    3,523     

Veresen, Inc.

    52,969   
     

 

 

 
        7,175,292   
     

 

 

 
          Chile - 0.0%  
    1,056     

Sociedad Quimica y Minera de Chile S.A. ADR

    23,063   
     

 

 

 
          China - 3.3%  
    35,613     

21Vianet Group, Inc. ADR (7)

    732,559   
    36,115     

AAC Technologies Holdings, Inc.

    190,640   
    148,902     

Agricultural Bank of China Ltd. Class H

    83,829   
    2,457     

Alibaba Group Holding Ltd. ADR (7)

    199,730   
    19,193     

Anhui Expressway Co., Ltd. Class H

    16,576   
    33,000     

ANTA Sports Products Ltd.

    72,723   
    1,902     

Baidu, Inc. ADR (7)

    380,933   
    120,308     

Bank of China Ltd. Class H

    82,435   
    83,430     

Bank of Communications Co., Ltd. Class H

    85,521   
    24,398     

China BlueChemical Ltd. Class H

    10,866   
    90,354     

China CITIC Bank Corp. Ltd. Class H

    81,938   
    6,681     

China CNR Corp. Ltd. Class H (1)(7)

    13,646   
    26,301     

China Coal Energy Co., Ltd. Class H

    17,289   
    692,371     

China Construction Bank Class H

    672,108   
    22,435     

China COSCO Holdings Co., Ltd. Class H (7)

    20,627   
    119,228     

China Everbright Bank Co., Ltd. Class H

    80,782   
    425,470     

China Lesso Group Holdings Ltd.

    312,617   
    16,834     

China Life Insurance Co., Ltd. Class H

    81,700   
    36,240     

China Longyuan Power Group Corp. Ltd. Class H

    44,912   
    97,780     

China Mengniu Dairy Co., Ltd.

    495,173   
    59,400     

China Minsheng Banking Corp. Ltd. Class H

    86,734   
    17,160     

China Molybdenum Co., Ltd. Class H

    17,164   
    7,749     

China Oilfield Services Ltd. Class H

    15,910   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          China - 3.3% - (continued)  
    15,426     

China Pacific Insurance Group Co., Ltd. Class H

  $ 83,613   
    11,733     

China Railway Group Ltd. Class H

    16,466   
    33,969     

China Shipping Container Lines Co., Ltd. Class H (7)

    19,157   
    17,165     

China Shipping Development Co., Ltd. Class H (7)

    14,360   
    34,449     

ChinaCache International Holdings Ltd.

    485,386   
    18,707     

CITIC Securities Co., Ltd. Class H

    82,870   
    7,148     

CSR Corp., Ltd. Class H

    13,780   
    30,324     

Dalian Port PDA Co., Ltd. Class H

    16,510   
    27,903     

Datang International Power Generation Co., Ltd. Class H

    16,322   
    216,190     

Dongfeng Motor Group Co., Ltd. Class H

    359,169   
    38,286     

E-House China Holdings Ltd. ADR

    260,345   
    7,165     

ENN Energy Holdings Ltd.

    51,569   
    16,770     

First Tractor Co., Ltd. Class H

    15,098   
    72,810     

Fosun International Ltd.

    181,477   
    6,905     

Great Wall Motor Co., Ltd. Class H

    52,392   
    45,905     

Guangzhou Automobile Group Co., Ltd. Class H

    49,836   
    26,094     

Haitong Securities Co., Ltd. Class H

    85,225   
    3,952     

Hollysys Automation Technologies Ltd.

    86,825   
    970,480     

Huadian Fuxin Energy Corp. Ltd. Class H

    521,985   
    733,507     

Industrial & Commercial Bank of China Ltd. Class H

    636,289   
    5,754     

Leju Holdings Ltd. ADR

    60,590   
    228,212     

Lenovo Group Ltd.

    392,427   
    16,919     

Luoyang Glass Co., Ltd. Class H (7)

    13,636   
    877,630     

Maoye International Holdings Ltd.

    194,448   
    34,588     

Metallurgical Corp. of China Ltd. Class H

    20,411   
    26,670     

Nanjing Panda Electronics Co., Ltd. Class H

    31,105   
    1,986     

NetEase, Inc. ADR

    254,585   
    13,103     

New China Life Insurance Co., Ltd. Class H

    81,083   
    31,254     

New Oriental Education & Technology Group, Inc. ADR (7)

    799,790   
    1,600     

Noah Holdings Ltd. ADR (7)

    54,224   
    12,649     

PetroChina Co., Ltd. Class H

    16,314   
    21,160     

Phoenix Healthcare Group Co., Ltd.

    43,664   
    21,449     

Phoenix New Media Ltd. ADR (7)

    154,647   
    6,053     

Ping An Insurance Group Co. of China Ltd. Class H

    86,565   
    9,197     

Qihoo 360 Technology Co., Ltd. ADR (7)

    554,579   
    15,516     

Shanghai Electric Group Co., Ltd. Class H

    15,822   
    16,706     

Shenzhen Expressway Co., Ltd. Class H

    15,937   
    28,021     

Sichuan Expressway Co., Ltd. Class H

    15,363   
    29,647     

Sinopec Oilfield Service Corp. Class H (7)

    17,166   
    229,647     

Sunny Optical Technology Group Co., Ltd.

    511,035   
    129,457     

TCL Communication Technology Holdings Ltd.

    137,782   
    123,189     

Tencent Holdings Ltd.

    2,542,482   
    14,205     

Tianjin Capital Environmental Protection Group Co., Ltd. Class H

    14,908   
    5,103     

Tsingtao Brewery Co., Ltd. Class H

    32,420   
    7,522     

Vipshop Holdings Ltd. ADR (7)

    212,797   
    351,190     

Xingda International Holdings Ltd.

    114,067   
    15,438     

Yanzhou Coal Mining Co., Ltd. Class H

    15,437   
    704,208     

Zhaojin Mining Industry Co., Ltd. Class H

    506,213   
    19,166     

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H

    14,991   
     

 

 

 
        13,769,574   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

67

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Denmark - 0.2%  
    9,462     

DSV A/S

  $ 328,233   
    757     

GronlandsBANKEN A/S

    70,812   
    6,942     

Jyske Bank AS (7)

    339,942   
    19,212     

Spar Nord Bank AS

    207,598   
     

 

 

 
        946,585   
     

 

 

 
          Egypt - 0.2%  
    685,234     

Centamin plc

    669,244   
     

 

 

 
          Finland - 0.0%  
    2,868     

Elisa Oyj

    87,862   
    1,658     

Kemira Oyj

    19,411   
    1,517     

Tikkurila Oyj

    31,244   
     

 

 

 
        138,517   
     

 

 

 
          France - 2.1%  
    31,693     

Air France-KLM (7)

    273,221   
    2,310     

Airbus Group N.V.

    160,088   
    514     

Arkema S.A.

    41,363   
    21,115     

AXA S.A.

    533,911   
    7,713     

BNP Paribas S.A.

    487,086   
    5,068     

Carrefour S.A.

    174,739   
    29,218     

Cie de Saint-Gobain

    1,327,873   
    39,121     

Credit Agricole S.A.

    608,658   
    34     

Dassault Aviation S.A.

    45,648   
    812     

Essilor International S.A.

    98,926   
    4,693     

GDF Suez

    95,486   
    77,022     

Groupe Eurotunnel S.A.

    1,234,859   
    37     

Hermes International

    13,954   
    1,118     

Lafarge S.A.

    81,575   
    1,408     

Legrand S.A.

    81,414   
    763     

LVMH Moet Hennessy Louis Vuitton SE

    133,423   
    1,793     

Naturex

    119,760   
    7,133     

Rexel S.A.

    134,433   
    1,605     

Safran S.A.

    117,273   
    51,711     

Suez Environnement Co.

    1,054,663   
    1,333     

Technip S.A. (8)

    90,874   
    1,712     

Total S.A. ADR

    92,619   
    219     

Unibail-Rodamco SE REIT

    60,468   
    14,867     

Vallourec S.A.

    350,576   
    19,057     

Vinci S.A.

    1,168,855   
     

 

 

 
        8,581,745   
     

 

 

 
          Germany - 1.9%  
    3,847     

Bayerische Motoren Werke AG

    453,810   
    2,431     

Brenntag AG

    145,862   
    11,812     

Deutsche Annington Immobilien SE

    396,471   
    269     

Deutsche Euroshop AG

    13,391   
    3,330     

Deutsche Telekom AG

    61,207   
    38,568     

Deutsche Wohnen AG

    1,011,626   
    5,194     

E.ON SE

    80,860   
    13,872     

Freenet AG

    449,316   
    834     

HeidelbergCement AG

    64,018   
    7,999     

Hornbach Holding AG

    707,846   
    1,047     

K+S AG

    34,132   
    10,974     

LEG Immobilien AG (7)

    851,442   
    585     

Linde AG

    114,315   
    12,702     

Rheinmetall AG

    650,315   
    3,457     

Suedzucker AG

    52,104   
    15,872     

ThyssenKrupp AG

    421,710   
    32,610     

TUI AG

    607,880   
    6,591     

Volkswagen AG (Preference Shares)

    1,696,824   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Germany - 1.9% - (continued)  
    2,784     

Zalando SE (1)(7)

  $ 85,246   
     

 

 

 
        7,898,375   
     

 

 

 
          Greece - 1.3%  
    3,453     

Aegean Airlines S.A.

    29,079   
    945,440     

Alpha Bank A.E. (7)

    331,287   
    201,434     

Ellaktor S.A. (7)

    452,204   
    3,374,648     

Eurobank Ergasias S.A. (7)

    513,724   
    102,555     

Frigoglass SAIC (7)

    184,246   
    118,173     

Grivalia Properties REIC

    939,216   
    43,023     

Hellenic Exchanges - Athens Stock Exchange S.A. Holding (7)

    280,189   
    114,761     

Hellenic Telecommunications Organization S.A. (7)

    1,043,169   
    107,136     

OPAP S.A.

    958,489   
    957,147     

Piraeus Bank S.A. (7)

    427,173   
     

 

 

 
        5,158,776   
     

 

 

 
          Hong Kong - 1.1%  
    28,330     

AIA Group Ltd.

    188,408   
    109,674     

Asian Citrus Holdings Ltd. (7)

    12,594   
    13,961     

ASM Pacific Technology Ltd.

    155,822   
    53,000     

Brilliance China Automotive Holdings Ltd.

    99,467   
    11,800     

Cheung Kong Infrastructure Holdings Ltd.

    99,962   
    26,956     

China Merchants Holdings International Co., Ltd.

    122,290   
    69,000     

China Overseas Land & Investment Ltd.

    287,411   
    144,370     

China Resources Gas Group Ltd.

    501,375   
    203,450     

China Unicom Hong Kong Ltd.

    382,105   
    3,951     

CK Hutchison Holdings Ltd.

    85,706   
    8,970,360     

G-Resources Group Ltd. (7)

    295,510   
    168,000     

Global Brands Group Holding Ltd. (7)

    34,365   
    238,505     

Guangdong Investment Ltd.

    355,650   
    49,312     

Hong Kong & China Gas Co., Ltd.

    117,462   
    234,350     

Huabao International Holdings Ltd.

    263,232   
    7,821     

Link REIT

    48,514   
    8,330     

MGM China Holdings Ltd.

    15,724   
    736,270     

Mongolian Mining Corp. (7)

    41,187   
    32,950     

Nine Dragons Paper Holdings Ltd.

    26,901   
    317,000     

Pacific Basin Shipping Ltd.

    117,392   
    151,770     

PAX Global Technology Ltd. (7)

    220,491   
    89,510     

Sands China Ltd.

    364,878   
    3,861     

Swire Pacific Ltd. Class A

    52,074   
    1,114,518     

Tongda Group Holdings Ltd.

    199,097   
    418,570     

Xinyi Glass Holdings Ltd.

    278,930   
     

 

 

 
        4,366,547   
     

 

 

 
          Hungary - 0.0%  
    300     

Wizz Air Holdings plc (1)(7)

    6,562   
     

 

 

 
          India - 2.9%  
    151,190     

Apollo Tyres Ltd.

    411,760   
    126,605     

Arvind Ltd.

    505,118   
    9,307     

Bajaj Auto Ltd.

    285,242   
    141,841     

Bharat Heavy Electricals Ltd.

    530,808   
    50,875     

Bharat Petroleum Corp. Ltd.

    611,729   
    13,882     

Bharti Infratel Ltd.

    87,709   
    30,804     

Ceat Ltd.

    368,691   
    112,630     

Coal India Ltd.

    641,439   
    15,506     

Container Corp. Of India Ltd.

    399,900   
    92,656     

Engineers India Ltd.

    266,957   
    112,332     

Exide Industries Ltd.

    302,865   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  68  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          India - 2.9% - (continued)  
    48,552     

GAIL India Ltd.

  $ 275,248   
    21,493     

Gateway Distriparks Ltd.

    119,059   
    198,525     

Gujarat State Fertilisers & Chemicals Ltd.

    238,886   
    64,464     

HCL Technologies Ltd.

    893,707   
    19,723     

Idea Cellular Ltd.

    54,224   
    46,549     

Indian Oil Corp. Ltd.

    264,316   
    16,282     

Indraprastha Gas Ltd.

    105,340   
    17,687     

Infosys Ltd.

    539,891   
    15,528     

Ipca Laboratories Ltd.

    156,781   
    82,356     

IRB Infrastructure Developers Ltd.

    301,941   
    532     

MRF Ltd.

    306,712   
    263,671     

NTPC Ltd.

    622,957   
    98,985     

Oil & Natural Gas Corp. Ltd.

    472,809   
    14,167     

Oil India Ltd.

    101,925   
    14,232     

PC Jeweller Ltd.

    76,464   
    168,000     

Redington India Ltd.

    315,104   
    55,047     

Sun TV Network Ltd.

    300,860   
    21,163     

Tata Chemicals Ltd.

    142,026   
    20,535     

Tata Consultancy Services Ltd.

    796,537   
    77,711     

Tata Motors Ltd.

    622,984   
    247,597     

Tata Power Co., Ltd.

    295,052   
    10,391     

Tech Mahindra Ltd.

    101,652   
    65,779     

Wipro Ltd.

    555,701   
     

 

 

 
        12,072,394   
     

 

 

 
          Indonesia - 0.1%  
    1,100,569     

Bank Tabungan Pensiunan Nasional Tbk PT (7)

    335,371   
    15,737     

Bumitama Agri Ltd.

    11,715   
    336,700     

Telekomunikasi Indonesia Persero Tbk PT

    67,717   
     

 

 

 
        414,803   
     

 

 

 
          Ireland - 1.1%  
    167,626     

C&C Group plc

    679,233   
    46,424     

CRH plc

    1,297,246   
    4,236     

FBD Holdings plc

    45,780   
    3,645     

Fleetmatics Group Ltd. (7)

    166,139   
    13,248     

Greencore Group plc

    71,891   
    397,639     

Hibernia plc REIT

    549,182   
    282,476     

Irish Residential Properties plc REIT

    339,064   
    372     

Paddy Power plc

    33,257   
    27,665     

Permanent TSB Group Holdings plc (7)

    155,318   
    35,629     

Smurfit Kappa Group plc

    1,090,834   
     

 

 

 
        4,427,944   
     

 

 

 
          Israel - 0.9%  
    13,430     

Azrieli Group

    579,390   
    92,145     

Bezeq The Israeli Telecommunication Corp. Ltd.

    174,527   
    20,717     

Delek Automotive Systems Ltd.

    251,613   
    133,298     

Harel Insurance Investments & Financial Services Ltd.

    622,708   
    686,894     

Israel Discount Bank Ltd. Class A (7)

    1,206,676   
    11,464     

Teva Pharmaceutical Industries Ltd. ADR

    692,655   
     

 

 

 
        3,527,569   
     

 

 

 
          Italy - 1.2%  
    45,986     

Anima Holding S.p.A. (1)(7)

    409,440   
    38,214     

Assicurazioni Generali S.p.A.

    746,670   
    9,359     

Banca Generali S.p.A.

    314,109   
    55,456     

Banca Popolare dell-Emilia Romagna
Scrl (7)

    456,172   
    6,381     

Buzzi Unicem S.p.A.

    102,703   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Italy - 1.2% - (continued)  
    18,452     

De’ Longhi S.p.A.

  $ 416,173   
    31,078     

Enel Green Power S.p.A.

    60,348   
    11,011     

Eni S.p.A.

    211,255   
    56,097     

FinecoBank Banca Fineco S.p.A. (7)

    423,491   
    60,760     

Finmeccanica S.p.A. (7)

    775,231   
    37,834     

Pirelli & C. S.p.A.

    654,599   
    10,549     

Snam S.p.A.

    54,951   
    51,544     

Unipol Gruppo Finanziario S.p.A.

    270,409   
     

 

 

 
        4,895,551   
     

 

 

 
          Japan - 6.4%  
    4,360     

Aeon Delight Co., Ltd.

    115,464   
    15,550     

Aizawa Securities Co., Ltd.

    106,153   
    5,430     

Alps Electric Co., Ltd.

    134,883   
    17,481     

Amada Co., Ltd.

    176,405   
    6,510     

Amano Corp.

    83,739   
    3,300     

Asahi Group Holdings Ltd.

    106,118   
    4,955     

Asahi Kasei Corp.

    46,659   
    7,400     

Bandai Namco Holdings, Inc.

    152,021   
    3,109     

COOKPAD, Inc.

    132,350   
    3,929     

CyberAgent, Inc.

    189,066   
    7,206     

Daifuku Co., Ltd.

    95,999   
    4,400     

Daiichi Sankyo Co., Ltd.

    76,422   
    3,560     

Daiichikosho Co., Ltd.

    114,816   
    1,477     

Daito Trust Construction Co., Ltd.

    171,998   
    4,000     

Dena Co., Ltd.

    79,904   
    7,220     

Denso Corp.

    358,442   
    1,878     

Disco Corp.

    171,024   
    1,340     

East Japan Railway Co.

    118,439   
    2,100     

Eisai Co., Ltd.

    139,981   
    220     

Fast Retailing Co., Ltd.

    86,654   
    6,600     

Fuji Media Holdings, Inc.

    92,398   
    101,370     

Fujitsu Ltd.

    671,916   
    5,840     

Funai Electric Co., Ltd. (7)

    68,991   
    30     

GLP J-REIT

    30,845   
    7,760     

GMO Payment Gateway, Inc.

    199,330   
    4,400     

Hakuhodo DY Holdings, Inc.

    47,087   
    3,610     

HI-LEX Corp.

    115,540   
    7,510     

Hitachi Metals Ltd.

    117,451   
    6,080     

Hitachi Transport System Ltd.

    98,054   
    12,650     

Hosiden Corp.

    74,005   
    3,875     

Inaba Denki Sangyo Co., Ltd.

    140,108   
    28,980     

Inpex Corp.

    363,708   
    2,881     

Iriso Electronics Co., Ltd.

    199,939   
    5,820     

Japan Digital Laboratory Co., Ltd.

    88,635   
    4,900     

Japan Petroleum Exploration Co., Ltd.

    188,627   
    8     

Japan Retail Fund Investment Corp. REIT

    17,031   
    3,920     

JGC Corp.

    81,579   
    2,050     

JSR Corp.

    34,968   
    17,451     

Kakaku.com, Inc.

    270,630   
    2,605     

Kansai Electric Power Co., Inc. (7)

    26,180   
    2,290     

Kato Sangyo Co., Ltd.

    48,471   
    15,500     

KDDI Corp.

    366,766   
    7,101     

Kenedix, Inc.

    28,277   
    1,052     

Keyence Corp.

    561,609   
    9,460     

Kinden Corp.

    132,872   
    6,404     

Kubota Corp.

    100,229   
    8,670     

Kuroda Electric Co., Ltd.

    155,859   
    6,520     

Kyokuto Securities Co., Ltd.

    97,456   
    5,755     

Kyushu Electric Power Co., Inc. (7)

    61,378   
    18,650     

Leopalace21 Corp. (7)

    107,563   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  69  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Japan - 6.4% - (continued)  
    22,965     

M3, Inc.

  $ 433,935   
    2,220     

Mabuchi Motor Co., Ltd.

    132,929   
    16,800     

Makino Milling Machine Co., Ltd.

    153,445   
    3,560     

Maruichi Steel Tube Ltd.

    89,917   
    6,440     

Medipal Holdings Corp.

    87,858   
    6,400     

Melco Holdings, Inc.

    132,035   
    13,039     

Minebea Co., Ltd.

    199,929   
    4,810     

Mitsubishi Chemical Holdings Corp.

    29,948   
    34,160     

Mitsubishi Electric Corp.

    446,119   
    9,150     

Mitsubishi Estate Co., Ltd.

    215,366   
    51,280     

Mitsubishi Gas Chemical Co., Inc.

    286,541   
    11,200     

Mitsubishi Heavy Industries Ltd.

    62,056   
    33,060     

Mitsubishi Materials Corp.

    119,015   
    129,850     

Mitsubishi UFJ Financial Group, Inc.

    922,500   
    33,410     

Mitsui Chemicals, Inc.

    110,453   
    4,550     

Mitsui Fudosan Co., Ltd.

    134,882   
    35,700     

Mitsui OSK Lines Ltd.

    126,046   
    3,655     

MonotaRO Co., Ltd.

    125,761   
    5,806     

Murata Manufacturing Co., Ltd.

    818,147   
    11,990     

NGK Insulators Ltd.

    269,340   
    4,800     

NGK Spark Plug Co., Ltd.

    134,416   
    5,660     

Nichicon Corp.

    52,216   
    4,321     

Nidec Corp.

    323,231   
    5,633     

Nintendo Co., Ltd.

    945,781   
    4,600     

Nippo Corp.

    76,931   
    5,350     

Nippon Ceramic Co., Ltd.

    76,248   
    10,850     

Nippon Express Co., Ltd.

    62,284   
    2,205     

Nippon Paint Holdings Co., Ltd.

    73,862   
    2,980     

Nippon Shokubai Co., Ltd.

    41,144   
    10,560     

Nippon Telegraph & Telephone Corp.

    713,064   
    3,209     

Nippon Telegraph & Telephone Corp. ADR

    108,079   
    34,290     

Nippon Television Holdings, Inc.

    591,292   
    45,111     

Nissan Motor Co., Ltd.

    468,283   
    5,900     

Nissin Kogyo Co., Ltd.

    97,246   
    6,930     

NSD Co., Ltd.

    100,479   
    9,765     

NTT DoCoMo, Inc.

    172,962   
    2,962     

Obic Co., Ltd.

    123,902   
    2,100     

Olympus Corp. (7)

    75,621   
    400     

Ono Pharmaceutical Co., Ltd.

    43,352   
    11     

Orix J, Inc. REIT

    16,260   
    4,130     

Pal Co., Ltd.

    132,744   
    23,400     

PanaHome Corp.

    170,579   
    3,250     

Paramount Bed Holdings Co., Ltd.

    88,059   
    22,006     

Rakuten, Inc.

    384,455   
    9,400     

Ricoh Co., Ltd.

    97,146   
    4,656     

Rohm Co., Ltd.

    322,962   
    20,330     

San-In Godo Bank Ltd.

    194,554   
    3,360     

Sankyo Co., Ltd.

    127,265   
    22,074     

SCREEN Holdings Co., Ltd.

    149,852   
    2,981     

SCSK Corp.

    87,048   
    1,942     

Sekisui House Ltd.

    30,102   
    6,501     

Seven & I Holdings Co., Ltd.

    279,441   
    9,990     

Shikoku Electric Power Co., Inc. (7)

    135,285   
    980     

Shin-Etsu Chemical Co., Ltd.

    59,906   
    138,630     

Shinsei Bank Ltd.

    283,680   
    7,610     

Shionogi & Co., Ltd.

    250,861   
    42,000     

Showa Denko KK

    57,413   
    2,670     

SoftBank Corp.

    166,903   
    6,861     

Sony Corp. (7)

    207,420   
    32,140     

Sony Financial Holdings, Inc.

    576,994   
    4,900     

Star Micronics Co., Ltd.

    79,705   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Japan - 6.4% - (continued)  
    39,929     

Sumco Corp.

  $ 602,456   
    19,080     

Sumitomo Electric Industries Ltd.

    269,565   
    15,320     

Sumitomo Mitsui Financial Group, Inc.

    668,942   
    2,740     

Sumitomo Realty & Development Co., Ltd.

    105,753   
    460     

Sysmex Corp.

    25,453   
    40,340     

T&D Holdings, Inc.

    582,097   
    6,900     

Tachi-S Co., Ltd.

    106,156   
    5,000     

Taihei Dengyo Kaisha Ltd.

    42,180   
    4,140     

Taikisha Ltd.

    111,136   
    2,265     

Takeda Pharmaceutical Co., Ltd.

    116,287   
    4,776     

TDK Corp.

    344,026   
    6,465     

Tenma Corp.

    104,607   
    5,921     

THK Co., Ltd.

    148,741   
    5,610     

Tokai Rika Co., Ltd.

    137,067   
    11,120     

Tokio Marine Holdings, Inc.

    453,315   
    9,930     

Tokyo Gas Co., Ltd.

    57,304   
    1,820     

Tokyo Ohka Kogyo Co., Ltd.

    56,648   
    5,600     

Toyo Tire & Rubber Co., Ltd.

    107,269   
    8,440     

Toyota Industries Corp.

    477,994   
    4,800     

Toyota Motor Corp.

    334,124   
    4,250     

TS Tech Co., Ltd.

    126,562   
    12,270     

TV Asahi Holdings Corp.

    226,409   
    7,960     

Ushio, Inc.

    104,384   
    4,680     

Wellnet Corp.

    104,725   
    4,020     

Xebio Co., Ltd.

    70,955   
    2,630     

Yamato Holdings Co., Ltd.

    58,862   
    3,880     

Yamato Kogyo Co., Ltd.

    91,288   
    13,340     

Yamazen Corp.

    118,679   
    6,325     

Yondoshi Holdings, Inc.

    138,979   
     

 

 

 
        26,211,251   
     

 

 

 
          Jersey - 0.2%  
    20,749     

Glencore plc (7)

    98,569   
    34,893     

Highland Gold Mining Ltd.

    25,174   
    10,569     

Randgold Resources Ltd. ADR

    805,041   
     

 

 

 
        928,784   
     

 

 

 
          Kenya - 0.0%  
    245,600     

Safaricom Ltd.

    45,174   
     

 

 

 
          Luxembourg - 0.3%  
    41,062     

BRAAS Monier Building Group S.A. (7)

    1,127,372   
    6,870     

SES S.A.

    238,838   
     

 

 

 
        1,366,210   
     

 

 

 
          Malaysia - 0.4%  
    1,602,767     

AirAsia Bhd

    1,021,559   
    287,235     

AMMB Holdings Bhd

    521,671   
    4,615     

Kuala Lumpur Kepong Bhd

    28,711   
    28,000     

Telekom Malaysia Bhd

    58,141   
     

 

 

 
        1,630,082   
     

 

 

 
          Mauritius - 0.2%  
    962,100     

CIEL Ltd.

    190,189   
    73,522     

MCB Group Ltd.

    428,878   
    1,390,336     

SBM Holdings Ltd.

    37,882   
     

 

 

 
        656,949   
     

 

 

 
          Mexico - 0.0%  
    9,108     

Corp. Inmobiliaria Vesta S.A.B. de C.V.

    17,098   
    6,590     

Mexichem S.A.B. de C.V.

    18,852   
     

 

 

 
        35,950   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

70

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Netherlands - 1.5%  
    11,776     

Akzo Nobel N.V.

  $ 901,025   
    850     

Cnova N.V. (7)

    4,802   
    4,635     

Constellium N.V. Class A (7)

    85,145   
    65,749     

Delta Lloyd N.V.

    1,245,080   
    7,523     

Heineken N.V.

    592,647   
    850     

IMCD Group N.V. (7)

    31,835   
    68,760     

ING Groep N.V. (7)

    1,054,884   
    25,548     

Koninklijke KPN N.V.

    94,726   
    2,300     

NXP Semiconductors N.V. (7)

    221,076   
    17,067     

Royal Dutch Shell plc Class A

    538,127   
    23,312     

Van Lanschot N.V.

    509,121   
    270     

Vastned Retail N.V. REIT

    13,184   
    28,914     

Wolters Kluwer N.V. (8)

    936,743   
     

 

 

 
        6,228,395   
     

 

 

 
          Norway - 0.3%  
    6,080     

Statoil ASA

    128,898   
    226,569     

Storebrand ASA (7)

    801,080   
    7,969     

Telenor ASA

    179,981   
    1,392     

TGS Nopec Geophysical Co. ASA

    35,425   
    2,036     

Yara International ASA

    104,320   
     

 

 

 
        1,249,704   
     

 

 

 
          Panama - 0.0%  
    3,947     

Avianca Holdings S.A. ADR

    51,548   
     

 

 

 
          Puerto Rico - 0.0%  
    2,640     

Evertec, Inc.

    54,727   
     

 

 

 
          Romania - 0.0%  
    1,894     

Electrica, S.A. GDR (1)(7)

    22,728   
     

 

 

 
          Singapore - 1.1%  
    109,203     

Ascendas REIT

    203,508   
    435,877     

CapitaCommercial Trust REIT

    557,307   
    7,583     

CapitaLand Ltd.

    21,102   
    13,326     

First Resources Ltd.

    17,872   
    92,653     

Golden Agri-Resources Ltd.

    29,311   
    383,055     

Keppel REIT

    356,075   
    39,532     

Keppel DC REIT (7)

    30,772   
    138,356     

Mapletree Commercial Trust REIT

    160,905   
    240,948     

Singapore Exchange Ltd.

    1,548,774   
    114,413     

Suntec REIT

    152,738   
    72,971     

United Overseas Bank Ltd.

    1,347,408   
    56,716     

Wilmar International Ltd.

    139,302   
     

 

 

 
        4,565,074   
     

 

 

 
          South Africa - 0.1%  
    21,787     

Discovery Ltd.

    241,782   
    1,028     

Naspers Ltd. Class N

    161,278   
     

 

 

 
        403,060   
     

 

 

 
          South Korea - 1.2%  
    24,098     

BS Financial Group, Inc.

    360,256   
    10,519     

Daewoo International Corp.

    306,869   
    2,898     

Doosan Corp.

    335,665   
    7,157     

Doosan Heavy Industries & Construction Co., Ltd.

    203,058   
    10,276     

Hyundai Development Co-Engineering & Construction

    546,991   
    3,019     

Hyundai Home Shopping Network Corp.

    379,577   
    2,774     

Koh Young Technology, Inc.

    114,493   
    32,107     

Korea Electric Power Corp.

    1,396,138   
    698     

LG Chem Ltd.

    176,321   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          South Korea - 1.2% - (continued)  
    2,880     

LG Corp.

  $ 178,702   
    28,366     

LG Uplus Corp.

    283,777   
    336     

NAVER Corp.

    203,172   
    3,537     

Samsung Card Co., Ltd.

    135,344   
    314     

Samsung Electronics Co., Ltd.

    411,922   
    3,327     

Suprema, Inc. (7)

    72,130   
     

 

 

 
        5,104,415   
     

 

 

 
          Spain - 0.5%  
    2,156     

Almirall S.A. (7)

    40,651   
    4,276     

Gas Natural SDG S.A.

    105,139   
    89,403     

Iberdrola S.A.

    598,400   
    12,690     

Tecnicas Reunidas S.A.

    590,257   
    52,144     

Telefonica S.A.

    793,654   
     

 

 

 
        2,128,101   
     

 

 

 
          Sweden - 0.2%  
    1,270     

Arcam AB (7)

    19,786   
    5,708     

Avanza Bank Holding AB

    245,894   
    2,870     

BillerudKorsnas AB

    49,680   
    1,813     

Electrolux AB Series B

    54,286   
    2,026     

Fastighets AB Balder Class B (7)

    36,114   
    4,814     

Hennes & Mauritz AB Class B

    191,389   
    4,557     

Lundin Petroleum AB (7)

    73,763   
    5,720     

Svenska Cellulosa AB SCA Class B

    144,687   
    9,836     

TeliaSonera AB

    61,152   
     

 

 

 
        876,751   
     

 

 

 
          Switzerland - 1.1%  
    10,094     

ABB Ltd. ADR

    219,746   
    529     

Actelion Ltd.

    69,606   
    546     

Cie Financiere Richemont S.A.

    48,667   
    56,278     

EFG International AG (7)

    826,047   
    34,176     

Evolva Holding S.A. (7)

    57,879   
    22,905     

Gategroup Holding AG

    802,823   
    994     

Geberit AG

    352,048   
    419     

Holcim Ltd. (7)

    33,658   
    9,820     

Julius Baer Group Ltd. (7)

    513,986   
    1,353     

Mobimo Holding AG

    301,904   
    3,902     

PSP Swiss Property AG

    363,949   
    372     

Roche Holding AG

    106,450   
    169     

Swisscom AG

    100,472   
    722     

Syngenta AG

    241,603   
    24,099     

UBS Group AG (7)

    481,434   
     

 

 

 
        4,520,272   
     

 

 

 
          Taiwan - 2.3%  
    48,400     

Adlink Technology, Inc.

    151,672   
    28,375     

Advantech Co., Ltd.

    233,746   
    102,105     

Aerospace Industrial Development Corp. (7)

    147,915   
    14,567     

AIC, Inc.

    84,668   
    32,276     

Airtac International Group

    263,841   
    137,222     

Asia Cement Corp.

    173,517   
    49,877     

Catcher Technology Co., Ltd.

    583,653   
    39,925     

Chroma ATE, Inc.

    96,161   
    58,959     

Delta Electronics, Inc.

    354,784   
    13,733     

eMemory Technology, Inc.

    155,072   
    133,345     

Far Eastern New Century Corp.

    146,467   
    9,080     

Giant Manufacturing Co., Ltd.

    78,316   
    53,991     

Globalwafers Co., Ltd. (7)

    167,459   
    7,590     

Hermes Microvision, Inc.

    533,712   
    27,300     

Hon Hai Precision Industry Co., Ltd.

    81,803   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  71  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          Taiwan - 2.3% - (continued)  
    42,151     

Hota Industrial Manufacturing Co., Ltd.

  $ 106,131   
    9,969     

King Slide Works Co., Ltd.

    156,791   
    149,935     

King Yuan Electronics Co., Ltd.

    136,294   
    5,052     

Largan Precision Co., Ltd.

    506,241   
    21,828     

Merida Industry Co., Ltd.

    163,547   
    16,595     

PChome Online, Inc.

    280,711   
    96,347     

Primax Electronics Ltd.

    126,847   
    78,061     

Ruentex Industries Ltd.

    191,662   
    21,176     

Silergy Corp.

    209,496   
    24,225     

Sporton International, Inc.

    137,352   
    36,870     

Standard Foods Corp.

    91,384   
    37,083     

Superalloy Industrial Co., Ltd.

    156,198   
    143,124     

Taiwan Cement Corp.

    203,260   
    61,970     

Taiwan Fertilizer Co., Ltd.

    113,974   
    554,503     

Taiwan Semiconductor Manufacturing Co., Ltd.

    2,669,528   
    96,177     

Teco Electric and Machinery Co., Ltd.

    93,379   
    167,984     

Uni-President Enterprises Corp.

    274,915   
    102,065     

Vanguard International Semiconductor Corp.

    156,744   
    67,161     

WT Microelectronics Co., Ltd.

    105,688   
    21,302     

Yageo Corp.

    43,800   
    65,879     

Yulon Motor Co., Ltd.

    85,967   
     

 

 

 
        9,262,695   
     

 

 

 
          Thailand - 0.2%  
    156,100     

Charoen Pokphand Foods PCL

    105,598   
    40,563     

Delta Electronics Thailand PCL

    102,746   
    108,863     

Hana Microelectronics PCL

    146,956   
    61,192     

KCE Electronics PCL

    100,239   
    232,527     

Precious Shipping PCL

    95,931   
    83,490     

Total Access Communication PCL NVDR

    219,319   
     

 

 

 
        770,789   
     

 

 

 
          Turkey - 0.1%  
    544,925     

Turkiye Sinai Kalkinma Bankasi AS

    411,337   
    20,670     

Ulker Biskuvi Sanayi AS

    157,945   
     

 

 

 
        569,282   
     

 

 

 
          United Arab Emirates - 0.0%  
    8,693     

Emaar Malls Group PJSC (7)

    7,591   
     

 

 

 
          United Kingdom - 2.9%  
    111,454     

Acacia Mining plc

    494,300   
    3,517     

Al Noor Hospitals Group plc

    48,479   
    15,687     

AstraZeneca plc

    1,076,545   
    3,560     

AstraZeneca plc ADR

    243,789   
    4,216     

B&M European Value Retail S.A.

    19,514   
    14,289     

BAE Systems plc

    110,700   
    322,785     

Balfour Beatty plc

    1,202,022   
    6,799     

BG Group plc

    123,154   
    4,442     

Big Yellow Group plc REIT

    45,547   
    25,454     

BP plc

    183,584   
    8,095     

British American Tobacco plc

    444,768   
    1,751     

Burberry Group plc

    46,680   
    774     

Derwent London plc REIT

    40,740   
    2,851     

Hammerson plc REIT

    29,210   
    18,958     

Hargreaves Lansdown plc

    356,122   
    179,997     

HSBC Holdings plc

    1,798,080   
    12,351     

Imperial Tobacco Group plc

    603,105   
    5,537     

Informa plc

    47,156   
    183,704     

Intu Properties plc REIT

    963,716   
    11     

Kennedy Wilson Europe Real Estate plc

    189   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United Kingdom - 2.9% - (continued)  
    25,571     

Marks & Spencer Group plc

  $ 216,548   
    6,397     

Meggitt plc

    51,697   
    12,565     

National Grid plc

    169,041   
    4,326     

NMC Health plc

    50,600   
    29,491     

OM Asset Management plc

    570,946   
    160,801     

Petra Diamonds Ltd. (7)

    385,663   
    8,218     

Pets at Home Group plc

    32,924   
    3,982     

PureCircle Ltd. (7)

    29,706   
    146,401     

QinetiQ Group plc

    453,109   
    2,206     

Reckitt Benckiser Group plc

    196,344   
    5,058     

Rio Tinto plc

    226,351   
    11,716     

RPC Group plc

    107,675   
    1,161     

Shaftesbury plc REIT

    14,931   
    11,903     

Sky plc

    196,256   
    2,892     

Smith & Nephew plc

    49,220   
    7,668     

Spire Healthcare Group plc (1)(7)

    37,554   
    57,131     

Standard Chartered plc

    935,360   
    4,319     

Tate & Lyle plc

    39,546   
    9,025     

Tullow Oil plc

    57,300   
    9,682     

UBM plc

    83,581   
    3,319     

UNITE Group plc

    30,517   
    1     

Vodafone Group plc

    4   
    339     

Whitbread plc

    27,221   
    2,128     

Workspace Group plc REIT

    27,476   
    4,608     

WPP plc

    107,465   
    5,066     

Zegona Communications plc (7)

    10,887   
     

 

 

 
        11,985,322   
     

 

 

 
          United States - 21.1%  
    1,620     

Abbott Laboratories

    75,200   
    860     

Acadia Healthcare Co., Inc. (7)

    58,910   
    569     

Acadia Realty Trust REIT

    17,582   
    2,580     

Accenture plc Class A

    239,037   
    127,780     

ACCO Brands Corp. (7)

    1,005,629   
    5,000     

Achillion Pharmaceuticals, Inc. (7)

    43,750   
    1,120     

Acorda Therapeutics, Inc. (7)

    33,678   
    1,790     

Actavis plc (7)

    506,319   
    1,700     

Activision Blizzard, Inc.

    38,785   
    442     

Acuity Brands, Inc.

    73,792   
    12,869     

Adecoagro S.A. (7)

    124,958   
    24,155     

Advance Auto Parts, Inc.

    3,454,165   
    976     

AECOM (7)

    30,803   
    14,304     

Aetna, Inc.

    1,528,668   
    1,330     

Agilent Technologies, Inc.

    55,022   
    730     

Agios Pharmaceuticals, Inc. (7)

    67,408   
    1,640     

Akamai Technologies, Inc. (7)

    120,999   
    282,784     

Alacer Gold Corp. (7)

    639,868   
    3,870     

Alkermes plc (7)

    214,282   
    3,830     

Alleghany Corp. (7)

    1,813,582   
    12,624     

Allegheny Technologies, Inc.

    429,090   
    968     

Allegion plc

    59,193   
    507     

Alliance Data Systems Corp. (7)

    150,736   
    1,555     

Alliant Energy Corp.

    94,031   
    1,030     

Alnylam Pharmaceuticals, Inc. (7)

    104,926   
    8,351     

Altria Group, Inc.

    417,968   
    2,395     

Amazon.com, Inc. (7)

    1,010,163   
    8,574     

American International Group, Inc.

    482,630   
    555     

American Tower Corp. REIT

    52,464   
    3,158     

AMETEK, Inc.

    165,542   
    1,079     

Anadarko Petroleum Corp.

    101,534   
    400     

Analog Devices, Inc.

    24,736   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  72  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United States - 21.1% - (continued)  
    617     

Andersons, Inc.

  $ 26,340   
    4,482     

Anthem, Inc.

    676,468   
    1,961     

Apache Corp.

    134,132   
    13,585     

Apple, Inc.

    1,700,163   
    6,730     

Applied Materials, Inc.

    133,187   
    3,788     

Archer-Daniels-Midland Co.

    185,157   
    21,010     

Arena Pharmaceuticals, Inc. (7)

    91,604   
    1,740     

Arista Networks, Inc. (7)

    111,377   
    385     

Arrow Electronics, Inc. (7)

    22,988   
    650     

athenahealth, Inc. (7)

    79,729   
    1,505     

Automatic Data Processing, Inc.

    127,233   
    120     

AutoZone, Inc. (7)

    80,719   
    596     

AvalonBay Communities, Inc. REIT

    97,947   
    22,159     

Avon Products, Inc.

    181,039   
    1,138     

Ball Corp.

    83,541   
    560     

Becton Dickinson and Co.

    78,887   
    24,310     

Belden, Inc.

    2,040,824   
    490     

Biogen, Inc. (7)

    183,226   
    27,292     

Bizlink Holding, Inc.

    116,799   
    2,133     

Boeing Co.

    305,744   
    1,856     

Boise Cascade Co. (7)

    64,403   
    510     

Boston Properties, Inc. REIT

    67,478   
    10,480     

Boston Scientific Corp. (7)

    186,754   
    10,440     

Bristol-Myers Squibb Co.

    665,341   
    922     

Cabot Corp.

    39,406   
    2,525     

Cabot Oil & Gas Corp.

    85,395   
    2,149     

Cameron International Corp. (7)

    117,808   
    1,040     

Cardinal Health, Inc.

    87,714   
    2,445     

Cardtronics, Inc. (7)

    92,250   
    25,102     

Carlisle Cos., Inc.

    2,422,343   
    854     

Caterpillar, Inc.

    74,196   
    1,975     

Celadon Group, Inc.

    51,034   
    1,436     

Celanese Corp. Series A

    95,293   
    2,060     

Celgene Corp. (7)

    222,604   
    506     

CF Industries Holdings, Inc.

    145,460   
    122     

Charter Communications, Inc. Class A (7)

    22,821   
    4,638     

Chevron Corp.

    515,096   
    238     

Chipotle Mexican Grill, Inc. (7)

    147,879   
    240     

Churchill Downs, Inc.

    28,601   
    7,185     

Ciena Corp. (7)

    153,040   
    11,821     

Cigna Corp.

    1,473,369   
    396     

Cimarex Energy Co.

    49,262   
    21,585     

Cisco Systems, Inc.

    622,296   
    13,879     

Citigroup, Inc.

    740,028   
    3,745     

Cobalt International Energy, Inc. (7)

    40,071   
    6,195     

Coca-Cola Co.

    251,269   
    3,555     

Cognizant Technology Solutions Corp. Class A (7)

    208,110   
    4,854     

Colfax Corp. (7)

    240,710   
    7,165     

Comcast Corp. Class A

    413,324   
    5,086     

ConocoPhillips Co.

    345,441   
    1,910     

Costco Wholesale Corp.

    273,225   
    16,738     

Coty, Inc. Class A (7)

    400,206   
    1,748     

Crown Holdings, Inc. (7)

    94,846   
    40,252     

CST Brands, Inc.

    1,678,911   
    465     

Curtiss-Wright Corp.

    33,973   
    4,482     

CVS Health Corp.

    445,018   
    2,163     

Cypress Semiconductor Corp. (7)

    28,811   
    420     

CyrusOne, Inc. REIT

    13,642   
    822     

D.R. Horton, Inc.

    20,879   
    4,032     

Danaher Corp.

    330,140   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United States - 21.1% - (continued)  
    7,560     

Deltic Timber Corp.

  $ 483,840   
    47,160     

Dorian LPG Ltd. (7)

    625,342   
    890     

Douglas Emmett, Inc. REIT

    25,365   
    1,137     

Dover Corp.

    86,094   
    3,023     

Dow Chemical Co.

    154,173   
    3,289     

Dr Pepper Snapple Group, Inc.

    245,294   
    1,914     

DreamWorks Animation SKG, Inc. Class A (7)

    49,879   
    2,464     

DSW, Inc. Class A

    89,369   
    2,488     

Duke Energy Corp.

    192,994   
    1,334     

Duke Realty Corp. REIT

    26,427   
    2,458     

Eaton Corp. plc

    168,938   
    845     

eBay, Inc. (7)

    49,230   
    1,645     

Echo Global Logistics, Inc. (7)

    47,540   
    497     

Edison International

    30,287   
    6,030     

Eli Lilly & Co.

    433,376   
    928     

Energen Corp.

    66,046   
    2,680     

Envision Healthcare Holdings, Inc. (7)

    101,733   
    708     

EOG Resources, Inc.

    70,057   
    1,315     

Equifax, Inc.

    127,463   
    610     

Equity LifeStyle Properties, Inc. REIT

    32,220   
    830     

Equity Residential REIT

    61,304   
    25,950     

Era Group, Inc. (7)

    575,571   
    328     

Essex Property Trust, Inc. REIT

    72,800   
    4,710     

Estee Lauder Cos., Inc. Class A

    382,876   
    2,687     

Eversource Energy

    131,018   
    1,000     

Expedia, Inc.

    94,230   
    483     

Extra Space Storage, Inc. REIT

    31,844   
    9,907     

Exxon Mobil Corp.

    865,575   
    935     

F5 Networks, Inc. (7)

    114,089   
    7,061     

Facebook, Inc. Class A (7)

    556,195   
    3,491     

Federal Agricultural Mortgage Corp. Class C

    109,757   
    272     

Federal Realty Investment Trust REIT

    36,358   
    1,727     

FedEx Corp.

    292,847   
    5,729     

Financial Engines, Inc.

    241,592   
    1,406     

First Solar, Inc. (7)

    83,896   
    41,380     

Fiserv, Inc. (7)

    3,211,088   
    29,440     

Ford Motor Co.

    465,152   
    1,948     

Forest City Enterprises, Inc. Class A (7)

    46,284   
    1,141     

Fortune Brands Home & Security, Inc.

    50,889   
    5,000     

Freescale Semiconductor Holdings Ltd. (7)

    195,450   
    3,740     

Freshpet, Inc. (7)

    81,083   
    26,300     

GATX Corp.

    1,430,720   
    864     

General Dynamics Corp.

    118,644   
    3,207     

General Growth Properties, Inc. REIT

    87,872   
    688     

Genesee & Wyoming, Inc. Class A (7)

    63,950   
    9,445     

Genpact Ltd. (7)

    206,468   
    3,590     

Gilead Sciences, Inc. (7)

    360,831   
    1,844     

Google, Inc. Class A (7)

    1,011,932   
    3,045     

GoPro, Inc. Class A (7)

    152,494   
    15,386     

Graphic Packaging Holding Co.

    216,943   
    14,761     

Great Western Bancorp, Inc.

    322,823   
    2,960     

GrubHub, Inc. (7)

    121,863   
    9,718     

Halliburton Co.

    475,696   
    6,866     

Harley-Davidson, Inc.

    385,938   
    3,223     

HCA Holdings, Inc. (7)

    238,534   
    1,537     

HD Supply Holdings, Inc. (7)

    50,721   
    1,250     

Health Care REIT, Inc. REIT

    90,025   
    807     

Healthcare Trust of America, Inc. Class A, REIT

    20,893   
    2,425     

Heartland Payment Systems, Inc.

    123,432   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  73  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United States - 21.1% - (continued)  
    947     

Heico Corp. Class A

  $ 43,439   
    22,557     

Herbalife Ltd. (7)

    936,567   
    3,460     

Hertz Global Holdings, Inc. (7)

    72,106   
    1,045     

Hess Corp.

    80,360   
    118,750     

Higher One Holdings, Inc. (7)

    333,687   
    1,213     

Hilton Worldwide Holdings, Inc. (7)

    35,128   
    2,589     

Honeywell International, Inc.

    261,282   
    1,015     

Hornbeck Offshore Services, Inc. (7)

    23,193   
    4,140     

Humana, Inc.

    685,584   
    1,525     

Huron Consulting Group, Inc. (7)

    92,445   
    3,073     

IDEX Corp.

    230,506   
    3,341     

Illinois Tool Works, Inc.

    312,651   
    1,960     

IMS Health Holdings, Inc. (7)

    54,076   
    1,280     

Incyte Corp. (7)

    124,365   
    4,704     

Infra, Inc. REIT (7)

    146,718   
    2,801     

Ingersoll-Rand plc

    184,418   
    905     

Ingredion, Inc.

    71,857   
    14,497     

Intel Corp.

    471,877   
    5,964     

International Paper Co.

    320,386   
    3,954     

Interpublic Group of Cos., Inc.

    82,401   
    5,017     

Ironwood Pharmaceuticals, Inc. (7)

    68,532   
    789     

J.B. Hunt Transport Services, Inc.

    68,801   
    2,220     

Johnson & Johnson

    220,224   
    160     

Jones Lang LaSalle, Inc.

    26,570   
    7,923     

JP Morgan Chase & Co.

    501,209   
    488     

Kansas City Southern

    50,015   
    2,200     

KBR, Inc.

    38,434   
    939     

Kennedy-Wilson Holdings, Inc.

    23,268   
    337     

Kilroy Realty Corp. REIT

    23,924   
    3,013     

Kinder Morgan, Inc.

    129,408   
    459     

Kite Realty Group Trust REIT

    12,026   
    4,540     

Knight Transportation, Inc.

    131,206   
    637     

Kraft Foods Group, Inc.

    53,986   
    2,081     

Kroger Co.

    143,402   
    4,368     

Landstar System, Inc.

    272,170   
    2,572     

Las Vegas Sands Corp.

    136,007   
    4,319     

Liberty Global plc Class A (7)

    225,193   
    55,717     

Liberty Global plc Series C (7)

    2,810,923   
    5,287     

Liberty Interactive Corp. Class A (7)

    152,054   
    775     

Linear Technology Corp.

    35,751   
    1,008     

Lockheed Martin Corp.

    188,093   
    3,092     

Louisiana-Pacific Corp. (7)

    47,122   
    6,102     

Lowe’s Cos., Inc.

    420,184   
    2,016     

LyondellBasell Industries N.V. Class A

    208,696   
    141     

Macerich Co. REIT

    11,528   
    2,905     

Marathon Oil Corp.

    90,345   
    2,475     

Marketo, Inc. (7)

    70,414   
    50,220     

Maxim Integrated Products, Inc.

    1,648,723   
    1,117     

McDonald’s Corp.

    107,846   
    485     

McGraw Hill Financial, Inc.

    50,585   
    1,260     

McKesson Corp.

    281,484   
    725     

MeadWestvaco Corp.

    35,380   
    3,763     

Medicines Co. (7)

    96,370   
    5,506     

Medtronic plc

    409,922   
    7,260     

Merck & Co., Inc.

    432,406   
    605     

Microchip Technology, Inc.

    28,831   
    960     

MKS Instruments, Inc.

    33,418   
    842     

Mohawk Industries, Inc. (7)

    146,087   
    13,595     

Mondelez International, Inc. Class A

    521,640   
    3,237     

Monsanto Co.

    368,889   
    2,040     

Monster Beverage Corp. (7)

    279,704   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United States - 21.1% - (continued)  
    437     

Moog, Inc. Class A (7)

  $ 30,538   
    3,566     

Mosaic Co.

    156,904   
    17,140     

Motorola Solutions, Inc.

    1,024,115   
    2,920     

Mylan N.V. (7)

    210,999   
    1,457     

NACCO Industries, Inc. Class A

    71,364   
    2,024     

National CineMedia, Inc.

    30,846   
    1,391     

National Oilwell Varco, Inc.

    75,684   
    478     

Netflix, Inc. (7)

    266,007   
    3,325     

NextEra Energy, Inc.

    335,592   
    2,362     

Nielsen N.V.

    106,148   
    5,535     

Nimble Storage, Inc. (7)

    135,386   
    1,661     

Norwegian Cruise Line Holdings Ltd. (7)

    80,575   
    9,741     

Nu Skin Enterprises, Inc. Class A

    550,854   
    830     

Occidental Petroleum Corp.

    66,483   
    3,960     

OGE Energy Corp.

    129,413   
    3,835     

OMNOVA Solutions, Inc. (7)

    30,642   
    10,240     

Owens Corning

    395,878   
    1,477     

Owens-Illinois, Inc. (7)

    35,315   
    358     

Packaging Corp. of America

    24,770   
    1,390     

Paramount Group, Inc. REIT

    25,465   
    100     

Party City Holdco, Inc. (7)

    2,079   
    5,185     

Patterson-UTI Energy, Inc.

    115,885   
    708     

Pebblebrook Hotel Trust REIT

    30,402   
    3,891     

Pentair plc

    241,826   
    4,939     

PepsiCo, Inc.

    469,798   
    873     

PG&E Corp.

    46,199   
    2,725     

Phillips 66

    216,120   
    1,518     

Physicians Realty Trust REIT

    25,199   
    503     

Pioneer Natural Resources Co.

    86,908   
    39,703     

Post Holdings, Inc. (7)

    1,863,659   
    1,140     

Power Integrations, Inc.

    56,419   
    391     

Public Storage REIT

    73,473   
    1,070     

Quintiles Transnational Holdings, Inc (7)

    70,492   
    167     

Raytheon Co.

    17,368   
    1,065     

Regeneron Pharmaceuticals, Inc. (7)

    487,195   
    2,009     

Reliance Steel & Aluminum Co.

    130,022   
    1,146     

Retail Properties of America, Inc. Class A, REIT

    17,316   
    4,612     

Rock-Tenn Co. Class A

    290,464   
    807     

Rogers Corp. (7)

    58,677   
    79,330     

Samsonite International S.A.

    289,330   
    4,358     

Schlumberger Ltd.

    412,310   
    42,691     

Scorpio Bulkers, Inc. (7)

    102,885   
    145,615     

Scorpio Tankers, Inc.

    1,360,044   
    12,980     

SEACOR Holdings, Inc. (7)

    943,127   
    790     

Seattle Genetics, Inc. (7)

    27,129   
    339     

Sherwin-Williams Co.

    94,242   
    1,074     

Signet Jewelers Ltd.

    144,056   
    438     

Simon Property Group, Inc. REIT

    79,493   
    542     

SL Green Realty Corp. REIT

    66,319   
    10,467     

Spirit Aerosystems Holdings, Inc. Class A (7)

    532,666   
    2,528     

St. Jude Medical, Inc.

    177,086   
    2,886     

Starbucks Corp.

    143,088   
    211     

Starwood Hotels & Resorts Worldwide, Inc.

    18,135   
    994     

Strategic Hotels & Resorts, Inc. REIT (7)

    11,630   
    1,310     

Stryker Corp.

    120,834   
    1,995     

SunEdison Semiconductor Ltd. (7)

    44,548   
    13,950     

Symantec Corp.

    347,704   
    250     

Synageva BioPharma Corp. (7)

    22,990   
    439     

Teledyne Technologies, Inc. (7)

    46,082   
    7,139     

Tesco Corp.

    91,808   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  74  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 59.3% - (continued)  
          United States - 21.1% - (continued)  
    805     

Tesla Motors, Inc. (7)

  $ 181,970   
    10,516     

Textron, Inc.

    462,494   
    830     

Thermo Fisher Scientific, Inc.

    104,314   
    2,177     

Time Warner Cable, Inc.

    338,567   
    1,301     

TreeHouse Foods, Inc. (7)

    105,719   
    2,375     

Tuesday Morning Corp. (7)

    37,572   
    8,607     

Twenty-First Century Fox, Inc. Class A

    293,327   
    1,651     

Tyson Foods, Inc. Class A

    65,214   
    1,949     

UGI Corp.

    67,845   
    950     

Ultragenyx Pharmaceutical, Inc. (7)

    53,608   
    6,922     

United Continental Holdings, Inc. (7)

    413,520   
    2,200     

United Technologies Corp.

    250,250   
    12,955     

UnitedHealth Group, Inc.

    1,443,187   
    2,344     

Valero Energy Corp.

    133,374   
    1,380     

Vantiv, Inc. Class A (7)

    53,958   
    1,422     

Varian Medical Systems, Inc. (7)

    126,345   
    208     

Ventas, Inc. REIT

    14,331   
    5,335     

VeriFone Systems, Inc. (7)

    190,833   
    2,648     

Verizon Communications, Inc.

    133,565   
    1,557     

Vertex Pharmaceuticals, Inc. (7)

    191,947   
    7,273     

Visa, Inc. Class A

    480,382   
    1,225     

WageWorks, Inc. (7)

    61,740   
    1,940     

Walgreens Boots Alliance, Inc.

    160,884   
    2,769     

Walt Disney Co.

    301,046   
    3,656     

Wayfair, Inc. Class A (7)

    117,431   
    38,080     

Wells Fargo & Co.

    2,098,208   
    1,696     

WESCO International, Inc. (7)

    122,349   
    1,045     

Western Digital Corp.

    102,138   
    482     

Westlake Chemical Corp.

    37,586   
    1,295     

WEX, Inc. (7)

    145,959   
    525     

Weyerhaeuser Co. REIT

    16,543   
    271     

Whirlpool Corp.

    47,588   
    1,309     

Whiting Petroleum Corp. (7)

    49,624   
    650     

Workday, Inc. Class A (7)

    59,286   
    2,083     

Wyndham Worldwide Corp.

    177,888   
    22,542     

XL Group plc

    835,857   
    1,145     

Zillow Group, Inc. Class A (7)

    111,798   
    872     

Zimmer Holdings, Inc.

    95,780   
    599     

Zoetis, Inc.

    26,608   
    3,937     

zulily, Inc. Class A (7)

    49,075   
     

 

 

 
        87,047,856   
     

 

 

 
   

Total Common Stocks
(cost $219,422,736)

  $ 244,825,316   
     

 

 

 
EXCHANGE TRADED FUNDS - 4.8%  
          Other Investment Pools & Funds - 4.8%      
    14,115     

iShares MSCI EAFE ETF

  $ 938,789   
    4,693     

iShares MSCI Japan ETF

    60,352   
    638,120     

PowerShares Senior Loan Portfolio

    15,429,742   
    56,600     

SPDR Barclays Convertible Securities ETF

    2,737,742   
    4,510     

SPDR S&P 500 ETF Trust

    940,425   
     

 

 

 
   

Total Exchange Traded Funds
(cost $20,032,131)

  $ 20,107,050   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
PREFERRED STOCKS - 0.1%  
          United States - 0.1%  
    4,710     

Nutanix, Inc. (7)(8)(9)

  $ 83,791   
    1,745     

Pinterest, Inc. Series G (7)(8)(9)

    56,374   
    4,556     

Uber Technologies, Inc. (7)(8)(9)

    136,615   
     

 

 

 
   

Total Preferred Stocks
(cost $196,412)

  $ 276,780   
     

 

 

 
     
WARRANTS - 0.1%  
          British Virgin Islands - 0.0%  
    69,500     

Atlas Mara Ltd. (7)

  $ 34,750   
     

 

 

 
          China - 0.1%  
    24,500     

Hangzhou HIK-Vision Digital-A Technology Co., Ltd.

    129,357   
     

 

 

 
          Greece - 0.0%  
    182,448     

Alpha Bank A.E. (7)

    106,528   
     

 

 

 
   

Total Warrants
(cost $445,069)

  $ 270,635   
     

 

 

 
   

Total Long-Term Investments
(cost $343,052,352)

  $ 366,015,017   
     

 

 

 
     
SHORT-TERM INVESTMENTS - 15.4%  
          Other Investment Pools & Funds - 15.4%  
    63,455,020     

Federated Prime Obligations Fund

  $ 63,455,020   
     

 

 

 
   

Total Short-Term Investments
(cost $63,455,020)

  $ 63,455,020   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $406,507,372)

    104.0    $ 429,470,037   
   

Total Purchased Options

(cost $518,651)

    0.0    $ 125,469   
     

 

 

    

 

 

 
   

Total Investments
(cost $407,026,023) ^

    104.0    $ 429,595,506   
   

Other Assets and Liabilities

    (4.0 )%       (16,698,115
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $     412,897,391   
     

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

75

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Consolidated Schedule of Investments includes investments held by The Hartford Cayman Global All-Asset Fund, Ltd. (the “Subsidiary”), a wholly owned subsidiary of the Fund, which primarily invests in commodity-related instruments. The Fund may invest up to 25% of its total assets in the Subsidiary. As of October 31, 2014, the Fund invested 3.3% of its total assets in the Subsidiary.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $408,892,305 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 36,971,330   

Unrealized Depreciation

         (16,268,129
  

 

 

 

Net Unrealized Appreciation

   $ 20,703,201   
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $9,777,796, which represents 2.4% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $21,839,720, which represents 5.3% of total net assets.

 

(4)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(5)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(6) Represents or includes a TBA transaction.

 

(7) Non-income producing.

 

(8)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
08/2014      4,710       Nutanix, Inc. Preferred    $ 63,097   
03/2015      1,745       Pinterest, Inc. Series G Preferred      62,638   
09/2014      1,333       Technip S.A.      91,160   
06/2014      4,556       Uber Technologies, Inc. Preferred      70,677   
05/2013      28,914       Wolters Kluwer N.V.      618,570   
        

 

 

 
         $     906,142   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $1,304,397, which represents 0.3% of total net assets.

 

(9)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $276,780, which represents 0.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

The accompanying notes are an integral part of these financial statements.

 

 

76

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
        Exercise Price/
FX Rate/Rate
    Expiration
Date
    Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

             

Calls

                 

Brent Crude Oil Option

    DEUT          150.00 USD        08/11/15      USD     1,355,000,000      $ 1,355      $ 41,327      $ (39,972

Brent Crude Oil Option

    DEUT          150.00 USD        11/10/15      USD     1,407,900        70        40,125        (40,055

Platinum Option

    GSC          1,300.00 USD        06/15/15      USD     1,147        905        55,629        (54,724

USD Call/HKD Put Option

    DEUT          7.83 USD        03/01/16      USD     10,514,681        10,799        14,721        (3,922
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

              1,366,923,728      $ 13,129      $ 151,802      $ (138,673
           

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                 

USD Put/CNY Call Option

    DEUT          6.15 USD        11/17/16      USD     18,308,748      $ 39,657      $ 120,838      $ (81,181
           

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

    1,385,232,476      $     52,786      $     272,640      $     (219,854
           

 

 

   

 

 

   

 

 

   

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
        Exercise Price/
FX Rate/Rate
    Expiration
Date
    Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased swaption contracts:

             

Puts

                 

Interest Rate Swaption USD

    BOA          0.68     01/24/17        JPY        1,002,640,000      $ 54,063      $ 182,113      $ 128,050   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased swaption contracts

  

    1,002,640,000      $     54,063      $     182,113      $     (128,050
           

 

 

   

 

 

   

 

 

   

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
        Exercise Price/
FX Rate/Rate
  Expiration
Date
    Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

             

Calls

                 

Interest Rate Swaption USD

    BNP        2.67% USD     04/14/25        USD        (275,000   $ (36,777   $ (40,315   $ 3,538   
           

 

 

   

 

 

   

 

 

   

 

 

 

Written swaption contracts:

             

Puts

                 

Interest Rate Swaption USD

    BNP        2.67% USD     04/14/25        USD        (275,000   $ (41,248   $ (40,315   $ (933
           

 

 

   

 

 

   

 

 

   

 

 

 

Total written swaption contracts

  

    (550,000   $     (78,025   $     (80,630   $     2,605   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

Exchange Traded Option Contracts Outstanding at April 30, 2015  

Description

          Exercise Price/
FX Rate/ Rate
    Expiration
Date
    Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

             

Calls

                 

Cocoa Future Option

        3,150.00 USD        08/07/15      USD     380      $ 18,620      $ 63,898      $ (45,278
           

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

    380      $     18,620      $     63,898      $     (45,278
           

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

77

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

DAX Index Future

     5         06/19/2015       $ 1,684,563       $ 1,612,623       $ (71,940

Euro-BOBL Future

     11         06/08/2015         1,568,642         1,562,636         (6,006

Euro-BUND Future

     131         06/08/2015         22,948,309         22,909,414         (38,895

Euro-Schatz Future

     8         06/08/2015         985,019         985,146         127   

Gold 100oz Future

     4         06/26/2015         460,299         472,960         12,661   

Japan 10-Year Bond Future

     19         06/11/2015             23,189,920             23,282,069         92,149   

OMX Stockholm 30 Index

     175         05/15/2015         3,377,272         3,238,039         (139,233

Short Gilt Future

     1         06/26/2015         161,529         161,420         (109

U.S. Treasury 10-Year Note Future

     54         06/19/2015         6,926,351         6,932,250         5,899   

U.S. Treasury 5-Year Note Future

     147         06/30/2015         17,574,930         17,659,523         84,593   

U.S. Treasury CME Ultra Long Term Bond Future

     53         06/19/2015         8,922,984         8,718,501         (204,483

U.S. Treasury Long Bond Future

     8         06/19/2015         1,306,339         1,276,750         (29,589)   
              

 

 

 

Total

               $     (294,826
              

 

 

 

Short position contracts:

              

10-Year Mini JGB Future

     2         06/10/2015       $ 248,276       $ 247,997       $ 279   

Australian 10-Year Bond Future

     80         06/15/2015         7,975,526         7,885,753         89,773   

Australian SPI 200 Index Future

     64         06/18/2015         7,264,625         7,156,235         108,390   

Canadian Government 10-Year Bond Future

     32         06/19/2015         3,620,415         3,565,832         54,583   

Long Gilt Future

     47         06/26/2015         8,607,554         8,582,741         24,813   

S&P 500 (E-Mini) Future

     37         06/19/2015         3,876,265         3,845,965         30,300   

SGX FTSE China A50 Index Future

     122         05/28/2015         1,734,396         1,708,610         25,786   

U.S. Treasury 2-Year Note Future

     25         06/30/2015         5,485,115         5,481,640         3,475   
              

 

 

 

Total

               $ 337,399   
              

 

 

 

Total futures contracts

               $ 42,573   
              

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015

 

Description

   Principal
Amount
     Maturity
Date
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

FHLMC, 4.00%

   $     1,550,000         05/01/2045       $ 1,653,996       $ (1,308

FHLMC, 4.50%

     1,600,000         05/01/2045         1,739,600         (2,350

FHLMC, 5.00%

     800,000         05/01/2045         888,659         106   

FNMA, 3.00%

     1,200,000         05/01/2030         1,255,725         736   

FNMA, 3.00%

     2,975,000         05/01/2045         3,027,126         6,616   

FNMA, 4.00%

     3,050,000         05/01/2045         3,259,152         1,071   

FNMA, 4.50%

     1,300,000         06/01/2045         1,413,242         (2,133

GNMA, 3.00%

     400,000         05/01/2045         411,273         1,789   

GNMA, 3.50%

     800,000         05/01/2045         843,156         672   

GNMA, 3.50%

     1,300,000         05/01/2045         1,371,398         2,336   

GNMA, 4.00%

     1,100,000         05/01/2045         1,175,410             (2,879

GNMA, 4.50%

     200,000         05/01/2045         220,352         (39

GNMA, 4.50%

     700,000         05/01/2045         758,543         (27

GNMA, 5.00%

     300,000         05/01/2045         335,387         (183)   
        

 

 

    

 

 

 

Total

         $     18,353,019       $ 4,407   
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (4.4)% of total net assets.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

78

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Sell protection:

                 

CDX.EM.23

  BNP     USD        14,150,000      1.00%     06/20/20      $      $ (1,371,711   $ (1,253,956   $ 117,755   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

            $      $ (1,371,711   $ (1,253,956   $ 117,755   
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Sell protection:

                 

3M EURIBOR

  GSC     EUR        425,000      1.00%/—%     06/20/20      $ 2,624      $      $ 3,059      $ 435   

Italy (Republic of)

  JPM     USD        775,000      1.00%/1.02%     09/20/19               (5,083     113        5,196   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 2,624      $ (5,083   $ 3,172      $ 5,631   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $     2,624      $     (1,376,794   $     (1,250,784   $     123,386   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost Basis     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.HY.24

  USD     2,150,000        5.00   06/20/20   $     143,749      $     162,233      $     18,484   
         

 

 

   

 

 

   

 

 

 

Total

          $     143,749      $ 162,233      $ 18,484   
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   INR NSE
Interbank Rate
Offer
   6.60% Fixed      INR         117,200,000         02/23/20       $     —       $     —       $     (24,144   $     (24,144
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

AK Holdings, Inc.

    GSC        USD        48,965        (1M LIBOR + 0.55%     10/30/15      $     —      $     —      $     (5,163   $     (5,163

AK Holdings, Inc.

    GSC        USD        84,294        (1M LIBOR + 0.55%     10/30/15                      (8,888     (8,888

BGF Retail Co., Ltd.

    GSC        USD        164,449        (1M LIBOR + 0.55%     10/30/15                      12,274        12,274   

BGF Retail Co., Ltd.

    GSC        USD        71,526        (1M LIBOR + 0.55%     10/30/15                      5,339        5,339   

 

The accompanying notes are an integral part of these financial statements.

 

 

  79  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

BGF Retail Co., Ltd.

    GSC        USD        59,605        (1M LIBOR + 0.55%     10/30/15      $     —      $     —      $ 4,449      $ 4,449   

BGF Retail Co., Ltd.

    GSC        USD        23,842        (1M LIBOR + 0.55%     10/30/15                      1,780        1,780   

BGF Retail Co., Ltd.

    GSC        USD        23,027        (1M LIBOR + 0.55%     10/30/15                      1,719        1,719   

BGF Retail Co., Ltd.

    GSC        USD        20,480        (1M LIBOR + 0.55%     10/30/15                      1,529        1,529   

BGF Retail Co., Ltd.

    GSC        USD        15,691        (1M LIBOR + 0.55%     10/30/15                      1,165        1,165   

BGF Retail Co., Ltd.

    GSC        USD        5,604        (1M LIBOR + 0.55%     10/30/15                      418        418   

Bukwang Pharmaceutical Co.

    GSC        USD        476        (1M LIBOR + 0.55%     10/30/15                      (16     (16

Bukwang Pharmaceutical Co.

    GSC        USD        476        (1M LIBOR + 0.55%     10/30/15                      (16     (16

Bukwang Pharmaceutical Co.

    GSC        USD        2,880        (1M LIBOR + 0.55%     10/30/15                      (95     (95

Bukwang Pharmaceutical Co.

    GSC        USD        2,904        (1M LIBOR + 0.55%     10/30/15                      (96     (96

Bukwang Pharmaceutical Co.

    GSC        USD        3,807        (1M LIBOR + 0.55%     10/30/15        2               (124     (126

Bukwang Pharmaceutical Co.

    GSC        USD        6,902        (1M LIBOR + 0.55%     10/30/15        1               (227     (228

Bukwang Pharmaceutical Co.

    GSC        USD        11,518        (1M LIBOR + 0.55%     10/30/15        3               (378     (381

Bukwang Pharmaceutical Co.

    GSC        USD        13,298        (1M LIBOR + 0.55%     10/30/15               (1     (431     (430

Bukwang Pharmaceutical Co.

    GSC        USD        13,021        (1M LIBOR + 0.55%     10/30/15                      (431     (431

Bukwang Pharmaceutical Co.

    GSC        USD        18,163        (1M LIBOR + 0.55%     10/30/15                      (601     (601

Bukwang Pharmaceutical Co.

    GSC        USD        26,085        (1M LIBOR + 0.55%     10/30/15        4               (858     (862

Bukwang Pharmaceutical Co.

    GSC        USD        27,422        (1M LIBOR + 0.55%     10/30/15                      (907     (907

Bukwang Pharmaceutical Co.

    GSC        USD        28,041        (1M LIBOR + 0.55%     10/30/15                      (927     (927

Bukwang Pharmaceutical Co.

    GSC        USD        31,826        (1M LIBOR + 0.55%     10/30/15                      (1,052     (1,052

Bukwang Pharmaceutical Co.

    GSC        USD        33,346        (1M LIBOR + 0.55%     10/30/15        3               (1,099     (1,102

Bukwang Pharmaceutical Co.

    GSC        USD        33,681        (1M LIBOR + 0.55%     10/30/15        2               (1,112     (1,114

Bukwang Pharmaceutical Co.

    GSC        USD        34,753        (1M LIBOR + 0.55%     10/30/15        1               (1,148     (1,149

Bukwang Pharmaceutical Co.

    GSC        USD        40,889        (1M LIBOR + 0.55%     10/30/15               (1     (1,346     (1,345

Bukwang Pharmaceutical Co.

    GSC        USD        55,511        (1M LIBOR + 0.55%     10/30/15                      (1,836     (1,836

CJ Hellovision Co., Ltd.

    GSC        USD        4,376        (1M LIBOR + 0.55%     10/30/15                      (110     (110

CJ Hellovision Co., Ltd.

    GSC        USD        10,490        (1M LIBOR + 0.55%     10/30/15                      (263     (263

CJ Hellovision Co., Ltd.

    GSC        USD        14,187        (1M LIBOR + 0.55%     10/30/15                      (356     (356

CJ Hellovision Co., Ltd.

    GSC        USD        14,855        (1M LIBOR + 0.55%     10/30/15                      (379     (379

CJ Hellovision Co., Ltd.

    GSC        USD        18,897        (1M LIBOR + 0.55%     10/30/15                      (474     (474

CJ Hellovision Co., Ltd.

    GSC        USD        18,908        (1M LIBOR + 0.55%     10/30/15                      (475     (475

CJ Hellovision Co., Ltd.

    GSC        USD        22,694        (1M LIBOR + 0.55%     10/30/15                      (570     (570

CJ Hellovision Co., Ltd.

    GSC        USD        23,151        (1M LIBOR + 0.55%     10/30/15                      (581     (581

CJ Hellovision Co., Ltd.

    GSC        USD        23,463        (1M LIBOR + 0.55%     10/30/15                      (598     (598

CJ Hellovision Co., Ltd.

    GSC        USD        24,944        (1M LIBOR + 0.55%     10/30/15                      (626     (626

CJ Hellovision Co., Ltd.

    GSC        USD        37,850        (1M LIBOR + 0.55%     10/30/15                      (950     (950

CJ Hellovision Co., Ltd.

    GSC        USD        38,730        (1M LIBOR + 0.55%     10/30/15                      (972     (972

CJ Hellovision Co., Ltd.

    GSC        USD        42,839        (1M LIBOR + 0.55%     10/30/15                          (1,075         (1,075

CJ Hellovision Co., Ltd.

    GSC        USD        49,498        (1M LIBOR + 0.55%     10/30/15                      (1,242     (1,242

CJ Hellovision Co., Ltd.

    GSC        USD        57,783        (1M LIBOR + 0.55%     10/30/15                      (1,450     (1,450

CJ O Shopping Co., Ltd.

    GSC        USD        155,756        (1M LIBOR + 0.55%     10/30/15                      12,874        12,874   

CJ O Shopping Co., Ltd.

    GSC        USD        88,413        (1M LIBOR + 0.55%     10/30/15                      7,308        7,308   

CJ O Shopping Co., Ltd.

    GSC        USD        78,704        (1M LIBOR + 0.55%     10/30/15                      6,505        6,505   

CJ O Shopping Co., Ltd.

    GSC        USD        52,883        (1M LIBOR + 0.55%     10/30/15                      4,371        4,371   

CJ O Shopping Co., Ltd.

    GSC        USD        50,197        (1M LIBOR + 0.55%     10/30/15                      4,149        4,149   

CJ O Shopping Co., Ltd.

    GSC        USD        43,794        (1M LIBOR + 0.55%     10/30/15                      3,620        3,620   

CJ O Shopping Co., Ltd.

    GSC        USD        35,737        (1M LIBOR + 0.55%     10/30/15                      2,954        2,954   

CJ O Shopping Co., Ltd.

    GSC        USD        33,878        (1M LIBOR + 0.55%     10/30/15                      2,800        2,800   

CJ O Shopping Co., Ltd.

    GSC        USD        30,779        (1M LIBOR + 0.55%     10/30/15                      2,544        2,544   

CJ O Shopping Co., Ltd.

    GSC        USD        28,094        (1M LIBOR + 0.55%     10/30/15                      2,322        2,322   

CJ O Shopping Co., Ltd.

    GSC        USD        22,723        (1M LIBOR + 0.55%     10/30/15                      1,878        1,878   

CJ O Shopping Co., Ltd.

    GSC        USD        17,559        (1M LIBOR + 0.55%     10/30/15                      1,442        1,442   

CJ O Shopping Co., Ltd.

    GSC        USD        16,526        (1M LIBOR + 0.55%     10/30/15                      1,366        1,366   

CJ O Shopping Co., Ltd.

    GSC        USD        13,427        (1M LIBOR + 0.55%     10/30/15                      1,110        1,110   

CJ O Shopping Co., Ltd.

    GSC        USD        12,601        (1M LIBOR + 0.55%     10/30/15                      1,042        1,042   

CJ O Shopping Co., Ltd.

    GSC        USD        11,155        (1M LIBOR + 0.55%     10/30/15                      922        922   

CJ O Shopping Co., Ltd.

    GSC        USD        9,916        (1M LIBOR + 0.55%     10/30/15                      820        820   

CJ O Shopping Co., Ltd.

    GSC        USD        5,577        (1M LIBOR + 0.55%     10/30/15                      461        461   

CJ O Shopping Co., Ltd.

    GSC        USD        1,653        (1M LIBOR + 0.55%     10/30/15                      137        137   

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

CJ O Shopping Co., Ltd.

    GSC        USD        1,446        (1M LIBOR + 0.55%     10/30/15      $      $      $ 120      $ 120   

CJ O Shopping Co., Ltd.

    GSC        USD        413        (1M LIBOR + 0.55%     10/30/15                      34        34   

Daesang Corp.

    GSC        USD        155,994        (1M LIBOR + 0.55%     10/30/15                      22,922        22,922   

Daesang Corp.

    GSC        USD        135,933        (1M LIBOR + 0.55%     10/30/15                      19,974        19,974   

Daesang Corp.

    GSC        USD        113,869        (1M LIBOR + 0.55%     10/30/15            —            —            16,732            16,732   

Daesang Corp.

    GSC        USD        94,601        (1M LIBOR + 0.55%     10/30/15                      13,901        13,901   

Daesang Corp.

    GSC        USD        77,600        (1M LIBOR + 0.55%     10/30/15                      11,403        11,403   

Daesang Corp.

    GSC        USD        60,410        (1M LIBOR + 0.55%     10/30/15                      8,877        8,877   

Daesang Corp.

    GSC        USD        53,874        (1M LIBOR + 0.55%     10/30/15                      7,917        7,917   

Daesang Corp.

    GSC        USD        38,385        (1M LIBOR + 0.55%     10/30/15                      5,640        5,640   

Daesang Corp.

    GSC        USD        37,667        (1M LIBOR + 0.55%     10/30/15                      5,535        5,535   

Daesang Corp.

    GSC        USD        302        (1M LIBOR + 0.55%     10/30/15                      44        44   

Dongsuh Co., Inc.

    GSC        USD        88,844        (1M LIBOR + 0.55%     10/30/15                      10,776        10,776   

Dongsuh Co., Inc.

    GSC        USD        48,009        (1M LIBOR + 0.55%     10/30/15                      5,823        5,823   

Dongsuh Co., Inc.

    GSC        USD        42,021        (1M LIBOR + 0.55%     10/30/15                      5,097        5,097   

Dongsuh Co., Inc.

    GSC        USD        35,896        (1M LIBOR + 0.55%     10/30/15                      4,354        4,354   

Dongsuh Co., Inc.

    GSC        USD        35,675        (1M LIBOR + 0.55%     10/30/15                      4,327        4,327   

Dongsuh Co., Inc.

    GSC        USD        30,792        (1M LIBOR + 0.55%     10/30/15                      3,735        3,735   

Dongsuh Co., Inc.

    GSC        USD        29,909        (1M LIBOR + 0.55%     10/30/15                      3,628        3,628   

Dongsuh Co., Inc.

    GSC        USD        28,860        (1M LIBOR + 0.55%     10/30/15                      3,501        3,501   

Dongsuh Co., Inc.

    GSC        USD        28,805        (1M LIBOR + 0.55%     10/30/15                      3,494        3,494   

Dongsuh Co., Inc.

    GSC        USD        27,591        (1M LIBOR + 0.55%     10/30/15                      3,347        3,347   

Dongsuh Co., Inc.

    GSC        USD        25,936        (1M LIBOR + 0.55%     10/30/15                      3,146        3,146   

Dongsuh Co., Inc.

    GSC        USD        24,722        (1M LIBOR + 0.55%     10/30/15                      2,999        2,999   

Dongsuh Co., Inc.

    GSC        USD        20,142        (1M LIBOR + 0.55%     10/30/15                      2,443        2,443   

Dongsuh Co., Inc.

    GSC        USD        20,086        (1M LIBOR + 0.55%     10/30/15                      2,436        2,436   

Dongsuh Co., Inc.

    GSC        USD        19,921        (1M LIBOR + 0.55%     10/30/15                      2,416        2,416   

Dongsuh Co., Inc.

    GSC        USD        17,548        (1M LIBOR + 0.55%     10/30/15                      2,128        2,128   

Dongsuh Co., Inc.

    GSC        USD        15,893        (1M LIBOR + 0.55%     10/30/15                      1,928        1,928   

Dongsuh Co., Inc.

    GSC        USD        11,147        (1M LIBOR + 0.55%     10/30/15                      1,352        1,352   

Dongsuh Co., Inc.

    GSC        USD        5,022        (1M LIBOR + 0.55%     10/30/15                      609        609   

Dongsuh Co., Inc.

    GSC        USD        635        (1M LIBOR + 0.55%     10/30/15                      77        77   

E-Mart Co., Ltd.

    GSC        USD        13,026        (1M LIBOR + 0.55%     10/30/15                      (228     (228

E-Mart Co., Ltd.

    GSC        USD        22,059        (1M LIBOR + 0.55%     10/30/15                      (387     (387

E-Mart Co., Ltd.

    GSC        USD        31,513        (1M LIBOR + 0.55%     10/30/15                      (552     (552

E-Mart Co., Ltd.

    GSC        USD        36,135        (1M LIBOR + 0.55%     10/30/15                      (633     (633

E-Mart Co., Ltd.

    GSC        USD        40,337        (1M LIBOR + 0.55%     10/30/15                      (707     (707

E-Mart Co., Ltd.

    GSC        USD        49,371        (1M LIBOR + 0.55%     10/30/15            —            —        (865     (865

E-Mart Co., Ltd.

    GSC        USD        53,993        (1M LIBOR + 0.55%     10/30/15                      (946     (946

E-Mart Co., Ltd.

    GSC        USD        57,354        (1M LIBOR + 0.55%     10/30/15                      (1,005     (1,005

E-Mart Co., Ltd.

    GSC        USD        69,540        (1M LIBOR + 0.55%     10/30/15                      (1,219     (1,219

E-Mart Co., Ltd.

    GSC        USD        72,691        (1M LIBOR + 0.55%     10/30/15                      (1,274     (1,274

E-Mart Co., Ltd.

    GSC        USD        97,902        (1M LIBOR + 0.55%     10/30/15                      (1,716     (1,716

E-Mart Co., Ltd.

    GSC        USD        120,171        (1M LIBOR + 0.55%     10/30/15                      (2,106     (2,106

E-Mart Co., Ltd.

    GSC        USD        131,096        (1M LIBOR + 0.55%     10/30/15                      (2,298     (2,298

Grand Korea Leisure Co., Ltd.

    GSC        USD        207,944        (1M LIBOR + 0.55%     10/30/15                      10,937        10,937   

Grand Korea Leisure Co., Ltd.

    GSC        USD        156,683        (1M LIBOR + 0.55%     10/30/15                      8,241        8,241   

Grand Korea Leisure Co., Ltd.

    GSC        USD        123,544        (1M LIBOR + 0.55%     10/30/15                      6,498        6,498   

Grand Korea Leisure Co., Ltd.

    GSC        USD        108,392        (1M LIBOR + 0.55%     10/30/15                      5,701        5,701   

Grand Korea Leisure Co., Ltd.

    GSC        USD        99,723        (1M LIBOR + 0.55%     10/30/15                      5,245        5,245   

Grand Korea Leisure Co., Ltd.

    GSC        USD        95,559        (1M LIBOR + 0.55%     10/30/15                      5,026        5,026   

Grand Korea Leisure Co., Ltd.

    GSC        USD        41,466        (1M LIBOR + 0.55%     10/30/15                      2,181        2,181   

Grand Korea Leisure Co., Ltd.

    GSC        USD        26,620        (1M LIBOR + 0.55%     10/30/15                      1,400        1,400   

Grand Korea Leisure Co., Ltd.

    GSC        USD        16,825        (1M LIBOR + 0.55%     10/30/15                      885        885   

Green Cross Corp.

    GSC        USD        58,717        (1M LIBOR + 0.55%     10/30/15                      2,311        2,311   

Green Cross Corp.

    GSC        USD        38,721        (1M LIBOR + 0.55%     10/30/15                      1,524        1,524   

Green Cross Corp.

    GSC        USD        28,406        (1M LIBOR + 0.55%     10/30/15                      1,118        1,118   

Green Cross Corp.

    GSC        USD        26,185        (1M LIBOR + 0.55%     10/30/15                      1,030        1,030   

 

The accompanying notes are an integral part of these financial statements.

 

 

  81  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Green Cross Corp.

    GSC        USD        24,756        (1M LIBOR + 0.55%     10/30/15      $     —      $     —      $ 974      $ 974   

Green Cross Corp.

    GSC        USD        23,011        (1M LIBOR + 0.55%     10/30/15                      906        906   

Green Cross Corp.

    GSC        USD        22,852        (1M LIBOR + 0.55%     10/30/15                      899        899   

Green Cross Corp.

    GSC        USD        22,376        (1M LIBOR + 0.55%     10/30/15                      881        881   

Green Cross Corp.

    GSC        USD        21,106        (1M LIBOR + 0.55%     10/30/15                      831        831   

Green Cross Corp.

    GSC        USD        20,154        (1M LIBOR + 0.55%     10/30/15                      793        793   

Green Cross Corp.

    GSC        USD        18,726        (1M LIBOR + 0.55%     10/30/15                      737        737   

Green Cross Corp.

    GSC        USD        18,409        (1M LIBOR + 0.55%     10/30/15                      724        724   

Green Cross Corp.

    GSC        USD        12,378        (1M LIBOR + 0.55%     10/30/15                      487        487   

Green Cross Corp.

    GSC        USD        9,204        (1M LIBOR + 0.55%     10/30/15                      362        362   

Green Cross Corp.

    GSC        USD        9,204        (1M LIBOR + 0.55%     10/30/15                      362        362   

Green Cross Corp.

    GSC        USD        8,570        (1M LIBOR + 0.55%     10/30/15                      337        337   

Green Cross Corp.

    GSC        USD        5,237        (1M LIBOR + 0.55%     10/30/15                      206        206   

Green Cross Corp.

    GSC        USD        4,920        (1M LIBOR + 0.55%     10/30/15                      194        194   

Green Cross Corp.

    GSC        USD        1,746        (1M LIBOR + 0.55%     10/30/15                      69        69   

GS Home Shopping Inc.

    GSC        USD        103,535        (1M LIBOR + 0.55%     10/30/15                      11,609        11,609   

GS Home Shopping Inc.

    GSC        USD        98,929        (1M LIBOR + 0.55%     10/30/15                      11,092        11,092   

GS Home Shopping Inc.

    GSC        USD        66,487        (1M LIBOR + 0.55%     10/30/15                      7,455        7,455   

GS Home Shopping Inc.

    GSC        USD        25,433        (1M LIBOR + 0.55%     10/30/15                      2,852        2,852   

GS Home Shopping Inc.

    GSC        USD        20,026        (1M LIBOR + 0.55%     10/30/15                      2,245        2,245   

GS Home Shopping Inc.

    GSC        USD        17,623        (1M LIBOR + 0.55%     10/30/15                      1,976        1,976   

GS Home Shopping Inc.

    GSC        USD        10,414        (1M LIBOR + 0.55%     10/30/15                      1,168        1,168   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        119,438        (1M LIBOR + 0.55%     10/30/15                      86,353        86,353   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        114,777        (1M LIBOR + 0.55%     10/30/15                      82,923        82,923   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        93,517        (1M LIBOR + 0.55%     10/30/15        10               67,597        67,587   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        79,382        (1M LIBOR + 0.55%     10/30/15                      57,460        57,460   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        75,730        (1M LIBOR + 0.55%     10/30/15                      54,779        54,779   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        48,395        (1M LIBOR + 0.55%     10/30/15                      34,965        34,965   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        45,339        (1M LIBOR + 0.55%     10/30/15                      32,756        32,756   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        35,982        (1M LIBOR + 0.55%     10/30/15               (1     25,930        25,931   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        14,876        (1M LIBOR + 0.55%     10/30/15                      10,804        10,804   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        3,472        (1M LIBOR + 0.55%     10/30/15                      2,508        2,508   

Hanmi Pharmaceutical Co., Ltd.

    GSC        USD        817        (1M LIBOR + 0.55%     10/30/15                      590        590   

Hyundai Department Store Co., Ltd.

    GSC        USD        33,516        (1M LIBOR + 0.55%     10/30/15                      3,763        3,763   

Hyundai Department Store Co., Ltd.

    GSC        USD        256,070        (1M LIBOR + 0.55%     10/30/15                      3,246        3,246   

Hyundai Department Store Co., Ltd.

    GSC        USD        242,635        (1M LIBOR + 0.55%     10/30/15                      3,075        3,075   

Hyundai Department Store Co., Ltd.

    GSC        USD        96,866        (1M LIBOR + 0.55%     10/30/15                      1,228        1,228   

Hyundai Department Store Co., Ltd.

    GSC        USD        90,820        (1M LIBOR + 0.55%     10/30/15                      1,151        1,151   

Hyundai Department Store Co., Ltd.

    GSC        USD        59,382        (1M LIBOR + 0.55%     10/30/15                      753        753   

Hyundai Department Store Co., Ltd.

    GSC        USD        47,022        (1M LIBOR + 0.55%     10/30/15                      596        596   

Hyundai Department Store Co., Ltd.

    GSC        USD        34,259        (1M LIBOR + 0.55%     10/30/15                      434        434   

Hyundai Department Store Co., Ltd.

    GSC        USD        33,722        (1M LIBOR + 0.55%     10/30/15                      427        427   

Kolon Industries, Inc.

    GSC        USD        68,619        (1M LIBOR + 0.55%     10/30/15                          22,964            22,964   

Kolon Industries, Inc.

    GSC        USD        47,387        (1M LIBOR + 0.55%     10/30/15                      15,859        15,859   

Kolon Industries, Inc.

    GSC        USD        43,909        (1M LIBOR + 0.55%     10/30/15                      14,694        14,694   

Kolon Industries, Inc.

    GSC        USD        39,979        (1M LIBOR + 0.55%     10/30/15                      13,379        13,379   

Kolon Industries, Inc.

    GSC        USD        38,217        (1M LIBOR + 0.55%     10/30/15                      12,790        12,790   

Kolon Industries, Inc.

    GSC        USD        37,946        (1M LIBOR + 0.55%     10/30/15                      12,699        12,699   

Kolon Industries, Inc.

    GSC        USD        36,500        (1M LIBOR + 0.55%     10/30/15                      12,215        12,215   

Kolon Industries, Inc.

    GSC        USD        29,002        (1M LIBOR + 0.55%     10/30/15                      9,706        9,706   

Kolon Industries, Inc.

    GSC        USD        25,343        (1M LIBOR + 0.55%     10/30/15                      8,481        8,481   

Kolon Industries, Inc.

    GSC        USD        22,677        (1M LIBOR + 0.55%     10/30/15                      7,589        7,589   

Kolon Industries, Inc.

    GSC        USD        18,837        (1M LIBOR + 0.55%     10/30/15                      6,304        6,304   

Kolon Industries, Inc.

    GSC        USD        15,630        (1M LIBOR + 0.55%     10/30/15                      5,231        5,231   

Kolon Industries, Inc.

    GSC        USD        12,107        (1M LIBOR + 0.55%     10/30/15                      4,052        4,052   

Kolon Industries, Inc.

    GSC        USD        11,068        (1M LIBOR + 0.55%     10/30/15                      3,704        3,704   

Kolon Industries, Inc.

    GSC        USD        8,854        (1M LIBOR + 0.55%     10/30/15                      2,963        2,963   

Kolon Industries, Inc.

    GSC        USD        7,499        (1M LIBOR + 0.55%     10/30/15                      2,510        2,510   

 

The accompanying notes are an integral part of these financial statements.

 

 

  82  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Kolon Industries, Inc.

    GSC        USD        3,343        (1M LIBOR + 0.55%     10/30/15      $     —      $     —      $ 1,119      $ 1,119   

Kolon Industries, Inc.

    GSC        USD        3,162        (1M LIBOR + 0.55%     10/30/15                      1,058        1,058   

Kolon Industries, Inc.

    GSC        USD        2,123        (1M LIBOR + 0.55%     10/30/15                      711        711   

Kolon Industries, Inc.

    GSC        USD        45        (1M LIBOR + 0.55%     10/30/15                      15        15   

Korea Zinc Co., Ltd.

    GSC        USD        162,099        (1M LIBOR + 0.55%     10/30/15                      26,566        26,566   

Korea Zinc Co., Ltd.

    GSC        USD        133,426        (1M LIBOR + 0.55%     10/30/15                      21,867        21,867   

Korea Zinc Co., Ltd.

    GSC        USD        108,576        (1M LIBOR + 0.55%     10/30/15                      17,794        17,794   

Korea Zinc Co., Ltd.

    GSC        USD        79,903        (1M LIBOR + 0.55%     10/30/15                      13,095        13,095   

Korea Zinc Co., Ltd.

    GSC        USD        77,991        (1M LIBOR + 0.55%     10/30/15                      12,782        12,782   

Korea Zinc Co., Ltd.

    GSC        USD        68,433        (1M LIBOR + 0.55%     10/30/15                      11,215        11,215   

Korea Zinc Co., Ltd.

    GSC        USD        56,582        (1M LIBOR + 0.55%     10/30/15                      9,273        9,273   

Korea Zinc Co., Ltd.

    GSC        USD        27,526        (1M LIBOR + 0.55%     10/30/15                      4,511        4,511   

KT Skylife Co., Ltd.

    GSC        USD        1,034        (1M LIBOR + 0.55%     10/30/15                      (26     (26

KT Skylife Co., Ltd.

    GSC        USD        5,188        (1M LIBOR + 0.55%     10/30/15                      (131     (131

KT Skylife Co., Ltd.

    GSC        USD        10,309        (1M LIBOR + 0.55%     10/30/15                      (260     (260

KT Skylife Co., Ltd.

    GSC        USD        10,592        (1M LIBOR + 0.55%     10/30/15                      (267     (267

KT Skylife Co., Ltd.

    GSC        USD        10,843        (1M LIBOR + 0.55%     10/30/15                      (273     (273

KT Skylife Co., Ltd.

    GSC        USD        11,910        (1M LIBOR + 0.55%     10/30/15                      (300     (300

KT Skylife Co., Ltd.

    GSC        USD        13,595        (1M LIBOR + 0.55%     10/30/15                      (342     (342

KT Skylife Co., Ltd.

    GSC        USD        14,195        (1M LIBOR + 0.55%     10/30/15                      (357     (357

KT Skylife Co., Ltd.

    GSC        USD        18,199        (1M LIBOR + 0.55%     10/30/15                      (458     (458

KT Skylife Co., Ltd.

    GSC        USD        18,849        (1M LIBOR + 0.55%     10/30/15                      (475     (475

KT Skylife Co., Ltd.

    GSC        USD        20,334        (1M LIBOR + 0.55%     10/30/15                      (512     (512

KT Skylife Co., Ltd.

    GSC        USD        24,471        (1M LIBOR + 0.55%     10/30/15                      (616     (616

KT Skylife Co., Ltd.

    GSC        USD        25,772        (1M LIBOR + 0.55%     10/30/15                      (649     (649

KT Skylife Co., Ltd.

    GSC        USD        26,456        (1M LIBOR + 0.55%     10/30/15                      (666     (666

KT Skylife Co., Ltd.

    GSC        USD        32,378        (1M LIBOR + 0.55%     10/30/15                      (815     (815

KT Skylife Co., Ltd.

    GSC        USD        35,747        (1M LIBOR + 0.55%     10/30/15                      (900     (900

KT Skylife Co., Ltd.

    GSC        USD        50,310        (1M LIBOR + 0.55%     10/30/15                      (1,267     (1,267

LG Corp.

    GSC        USD        384,144        (1M LIBOR + 0.55%     10/30/15                      47,835        47,835   

LG Corp.

    GSC        USD        97,003        (1M LIBOR + 0.55%     10/30/15                      12,079        12,079   

LG Corp.

    GSC        USD        49,911        (1M LIBOR + 0.55%     10/30/15                      6,215        6,215   

LG Corp.

    GSC        USD        167,752        (1M LIBOR + 0.55%     12/30/15                      20,889        20,889   

MSCI Daily TR Gross Emerging Markets South Africa

    DEUT        USD        2,151,778        1M LIBOR - 0.20%        10/30/15                          (116,057         (116,057

MSCI Daily TR Net Emerging Markets Chile

    DEUT        USD        1,517,657        1M LIBOR - 0.10%        02/29/16                      (74,835     (74,835

MSCI Daily TR World Gross Utilities Sector

    GSC        USD        1,688,822        (1M LIBOR + 0.60%     04/29/16                      19,915        19,915   

MSCI United Arab Emirates Domestic Net TR

    DEUT        USD        310,582        1M LIBOR - 0.69%        10/30/15                      (47,350     (47,350

MSCI United Arab Emirates Domestic Net TR

    DEUT        USD        487,905        1M LIBOR - 0.69%        10/30/15                      (74,385     (74,385

NongShim Co., Ltd.

    GSC        USD        48,961        (1M LIBOR + 0.55%     10/30/15                      1,951        1,951   

NongShim Co., Ltd.

    GSC        USD        46,546        (1M LIBOR + 0.55%     10/30/15                      1,855        1,855   

NongShim Co., Ltd.

    GSC        USD        35,568        (1M LIBOR + 0.55%     10/30/15                      1,417        1,417   

NongShim Co., Ltd.

    GSC        USD        31,836        (1M LIBOR + 0.55%     10/30/15                      1,269        1,269   

NongShim Co., Ltd.

    GSC        USD        25,688        (1M LIBOR + 0.55%     10/30/15                      1,024        1,024   

NongShim Co., Ltd.

    GSC        USD        25,469        (1M LIBOR + 0.55%     10/30/15                      1,015        1,015   

NongShim Co., Ltd.

    GSC        USD        25,249        (1M LIBOR + 0.55%     10/30/15                      1,006        1,006   

NongShim Co., Ltd.

    GSC        USD        24,371        (1M LIBOR + 0.55%     10/30/15                      971        971   

NongShim Co., Ltd.

    GSC        USD        20,858        (1M LIBOR + 0.55%     10/30/15                      831        831   

NongShim Co., Ltd.

    GSC        USD        20,199        (1M LIBOR + 0.55%     10/30/15                      805        805   

NongShim Co., Ltd.

    GSC        USD        15,369        (1M LIBOR + 0.55%     10/30/15                      612        612   

NongShim Co., Ltd.

    GSC        USD        15,149        (1M LIBOR + 0.55%     10/30/15                      604        604   

NongShim Co., Ltd.

    GSC        USD        10,978        (1M LIBOR + 0.55%     10/30/15                      437        437   

NongShim Co., Ltd.

    GSC        USD        10,758        (1M LIBOR + 0.55%     10/30/15                      429        429   

NongShim Co., Ltd.

    GSC        USD        10,539        (1M LIBOR + 0.55%     10/30/15                      420        420   

NongShim Co., Ltd.

    GSC        USD        7,245        (1M LIBOR + 0.55%     10/30/15                      289        289   

S&P Retail Select Industry Index

    GSC        USD        6,035,707        1M LIBOR - 0.90%        01/29/16                      267,204        267,204   

S&P Retail Select Industry Index

    GSC        USD        413,072        1M LIBOR - 0.90%        01/29/16                      16,806        16,806   

Shinsegae Co., Ltd.

    GSC        USD        126,863        (1M LIBOR + 0.55%     10/30/15                      29,925        29,925   

Shinsegae Co., Ltd.

    GSC        USD        70,344        (1M LIBOR + 0.55%     10/30/15                      16,593        16,593   

 

The accompanying notes are an integral part of these financial statements.

 

 

  83  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount
    Payments
received (paid)
by the Fund
    Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Shinsegae Co., Ltd.

    GSC        USD        36,768        (1M LIBOR + 0.55%     10/30/15      $      $      $ 8,673      $ 8,673   

Shinsegae Co., Ltd.

    GSC        USD        34,944        (1M LIBOR + 0.55%     10/30/15                      8,243        8,243   

Shinsegae Co., Ltd.

    GSC        USD        34,033        (1M LIBOR + 0.55%     10/30/15                      8,028        8,028   

Shinsegae Co., Ltd.

    GSC        USD        31,450        (1M LIBOR + 0.55%     10/30/15                      7,419        7,419   

Shinsegae Co., Ltd.

    GSC        USD        29,475        (1M LIBOR + 0.55%     10/30/15                      6,953        6,953   

Shinsegae Co., Ltd.

    GSC        USD        29,171        (1M LIBOR + 0.55%     10/30/15                      6,881        6,881   

Shinsegae Co., Ltd.

    GSC        USD        25,676        (1M LIBOR + 0.55%     10/30/15                      6,057        6,057   

Shinsegae Co., Ltd.

    GSC        USD        24,917        (1M LIBOR + 0.55%     10/30/15                      5,878        5,878   

SK Telecom Co., Ltd.

    GSC        USD        213,764        (1M LIBOR + 0.55%     10/30/15                      18,913        18,913   

SK Telecom Co., Ltd.

    GSC        USD        192,633        (1M LIBOR + 0.55%     10/30/15                      17,043        17,043   

SK Telecom Co., Ltd.

    GSC        USD        131,453        (1M LIBOR + 0.55%     10/30/15                      11,630        11,630   

SK Telecom Co., Ltd.

    GSC        USD        110,568        (1M LIBOR + 0.55%     10/30/15                      9,782        9,782   

SK Telecom Co., Ltd.

    GSC        USD        71,992        (1M LIBOR + 0.55%     10/30/15                      6,370        6,370   

SKC Co., Ltd.

    GSC        USD        192,470        (1M LIBOR + 0.55%     10/30/15                      41,158        41,158   

SKC Co., Ltd.

    GSC        USD        119,427        (1M LIBOR + 0.55%     10/30/15                      25,538        25,538   

SKC Co., Ltd.

    GSC        USD        73,238        (1M LIBOR + 0.55%     10/30/15                      15,661        15,661   

SKC Co., Ltd.

    GSC        USD        46,059        (1M LIBOR + 0.55%     10/30/15                      9,849        9,849   

SKC Co., Ltd.

    GSC        USD        45,863        (1M LIBOR + 0.55%     10/30/15                      9,808        9,808   

SKC Co., Ltd.

    GSC        USD        40,428        (1M LIBOR + 0.55%     10/30/15                      8,645        8,645   

SKC Co., Ltd.

    GSC        USD        29,458        (1M LIBOR + 0.55%     10/30/15                      6,299        6,299   

SKC Co., Ltd.

    GSC        USD        25,520        (1M LIBOR + 0.55%     10/30/15                      5,457        5,457   

SKC Co., Ltd.

    GSC        USD        13,411        (1M LIBOR + 0.55%     10/30/15                      2,868        2,868   

SKC Co., Ltd.

    GSC        USD        12,206        (1M LIBOR + 0.55%     10/30/15                      2,610        2,610   

SKC Co., Ltd.

    GSC        USD        1,204        (1M LIBOR + 0.55%     10/30/15                      258        258   

Yuhan Corp.

    GSC        USD        63,061        (1M LIBOR + 0.55%     10/30/15                      17,446        17,446   

Yuhan Corp.

    GSC        USD        51,258        (1M LIBOR + 0.55%     10/30/15                      14,181        14,181   

Yuhan Corp.

    GSC        USD        51,090        (1M LIBOR + 0.55%     10/30/15                      14,134        14,134   

Yuhan Corp.

    GSC        USD        49,741        (1M LIBOR + 0.55%     10/30/15                      13,761        13,761   

Yuhan Corp.

    GSC        USD        44,008        (1M LIBOR + 0.55%     10/30/15                      12,175        12,175   

Yuhan Corp.

    GSC        USD        43,671        (1M LIBOR + 0.55%     10/30/15                      12,082        12,082   

Yuhan Corp.

    GSC        USD        35,746        (1M LIBOR + 0.55%     10/30/15                      9,889        9,889   

Yuhan Corp.

    GSC        USD        35,071        (1M LIBOR + 0.55%     10/30/15                      9,703        9,703   

Yuhan Corp.

    GSC        USD        22,763        (1M LIBOR + 0.55%     10/30/15                      6,297        6,297   

Yuhan Corp.

    GSC        USD        15,512        (1M LIBOR + 0.55%     10/30/15                      4,292        4,292   

Yuhan Corp.

    GSC        USD        11,803        (1M LIBOR + 0.55%     10/30/15                      3,265        3,265   

Yuhan Corp.

    GSC        USD        10,454        (1M LIBOR + 0.55%     10/30/15                      2,892        2,892   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     26      $     (3   $     1,564,538      $     1,564,515   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/29/15       GSC    $     6,518,528       $     6,634,802       $     116,274   

AUD

   Buy      06/17/15       CBA      3,364,469         3,454,406         89,937   

AUD

   Sell      05/29/15       CBA      6,609,517         6,579,498         30,019   

AUD

   Sell      05/29/15       CBA      3,263,306         3,289,749         (26,443

AUD

   Sell      05/29/15       BOA      3,263,160         3,289,749         (26,589

AUD

   Sell      06/17/15       CBA      7,456,867         7,656,200         (199,333

BRL

   Buy      05/05/15       BOA      172,034         170,630         (1,404

BRL

   Buy      05/05/15       UBS      1,245,595         1,194,407         (51,188

BRL

   Sell      05/05/15       UBS      172,034         170,630         1,404   

BRL

   Sell      05/05/15       BOA      169,408         170,630         (1,222

BRL

   Sell      05/05/15       UBS      960,686         1,023,776         (63,090

BRL

   Sell      06/02/15       UBS      1,233,828         1,182,713         51,115   

CAD

   Buy      05/04/15       CBA      46,971         46,769         (202

CAD

   Buy      05/05/15       CBA      5,200         5,203         3   

 

The accompanying notes are an integral part of these financial statements.

 

 

  84  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

CAD

   Buy      05/29/15       TDB    $ 3,299,093       $ 3,318,991       $ 19,898   

CAD

   Buy      05/29/15       BMO      3,299,645         3,318,992         19,347   

CAD

   Buy      05/29/15       CBA      6,506,517         6,505,422         (1,095

CAD

   Buy      06/17/15       TDB      1,955,867         2,043,404         87,537   

CAD

   Buy      06/17/15       RBC      1,669,385         1,752,673         83,288   

CAD

   Sell      05/05/15       CBA      46,923         46,947         (24

CAD

   Sell      06/17/15       JPM      412,640         431,542         (18,902

CHF

   Buy      06/17/15       CSFB      7,018,149         7,388,610         370,461   

CHF

   Sell      05/29/15       UBS      13,481,360         13,921,895         (440,535

CHF

   Sell      06/17/15       JPM      495,374         513,262         (17,888

CHF

   Sell      06/17/15       GSC      2,927,504         2,975,416         (47,912

CLP

   Buy      06/17/15       GSC      1,778,025         1,818,424         40,399   

CLP

   Sell      06/17/15       DEUT      458,653         473,739         (15,086

CLP

   Sell      06/17/15       SCB      458,438         473,741         (15,303

CNY

   Buy      06/17/15       BNP      1,298,455         1,288,401         (10,054

CNY

   Sell      06/17/15       HSBC          14,243,167             14,276,361         (33,194

DKK

   Buy      05/05/15       UBS      58,917         59,017         100   

DKK

   Buy      06/17/15       CBK      1,771,645         1,871,176         99,531   

DKK

   Buy      06/17/15       CBK      2,097,578         2,181,055         83,477   

DKK

   Sell      06/17/15       JPM      413,171         430,999         (17,828

EUR

   Buy      05/05/15       UBS      136,626         139,787         3,161   

EUR

   Buy      05/05/15       MSC      223,776         224,165         389   

EUR

   Buy      05/07/15       MSC      3,175         3,180         5   

EUR

   Buy      05/29/15       CBK      110,354         113,452         3,098   

EUR

   Buy      05/29/15       BMO      22,418         22,465         47   

EUR

   Buy      06/17/15       BNP      4,030,353         4,254,924         224,571   

EUR

   Buy      06/17/15       JPM      2,477,448         2,583,065         105,617   

EUR

   Buy      06/17/15       CBK      3,941,034         4,033,582         92,548   

EUR

   Buy      06/17/15       RBS      1,259,197         1,334,790         75,593   

EUR

   Buy      06/17/15       NAB      1,265,077         1,337,037         71,960   

EUR

   Buy      06/17/15       CSFB      915,123         961,768         46,645   

EUR

   Buy      06/17/15       BNY      158,265         168,534         10,269   

EUR

   Buy      06/17/15       RBC      91,030         94,379         3,349   

EUR

   Buy      06/18/15       CSFB      3,132,986         3,241,516         108,530   

EUR

   Sell      05/04/15       DEUT      57,072         57,391         (319

EUR

   Sell      05/05/15       DEUT      25,535         25,678         (143

EUR

   Sell      05/05/15       WEST      83,299         83,555         (256

EUR

   Sell      05/29/15       MSC      227,609         228,026         (417

EUR

   Sell      05/29/15       WEST      55,998         57,288         (1,290

EUR

   Sell      05/29/15       DEUT      18,282,824         18,903,758         (620,934

EUR

   Sell      06/17/15       MSC      295,197         303,361         (8,164

EUR

   Sell      06/17/15       CSFB      289,718         304,485         (14,767

EUR

   Sell      06/17/15       MSC      1,577,365         1,615,680         (38,315

EUR

   Sell      06/17/15       RBS      720,943         765,145         (44,202

EUR

   Sell      06/17/15       CBK      8,835,863         9,351,394         (515,531

EUR

   Sell      06/17/15       NAB      19,407,771         20,511,720         (1,103,949

EUR

   Sell      06/17/15       RBS      19,349,022         20,510,597         (1,161,575

EUR

   Sell      07/27/15       TDB      2,621,072         2,743,028         (121,956

GBP

   Buy      05/05/15       TDB      24,947         24,986         39   

GBP

   Buy      06/17/15       RBS      1,909,693         1,945,718         36,025   

GBP

   Buy      06/17/15       BCLY      1,911,666         1,947,253         35,587   

GBP

   Sell      05/01/15       HSBC      32,118         31,881         237   

GBP

   Sell      05/29/15       BMO      15,365         15,346         19   

GBP

   Sell      05/29/15       GSC      7,998,393         8,169,050         (170,657

GBP

   Sell      06/17/15       CBK      1,327,410         1,367,220         (39,810

GBP

   Sell      06/17/15       GSC      4,369,543         4,491,418         (121,875

HKD

   Buy      06/17/15       BNP      660,255         660,469         214   

HKD

   Sell      06/17/15       CBK      3,607,221         3,612,130         (4,909

 

The accompanying notes are an integral part of these financial statements.

 

 

  85  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

IDR

   Buy      06/17/15       JPM    $ 1,065,071       $ 1,107,327       $ 42,256   

IDR

   Sell      06/17/15       DEUT      767,848         772,512         (4,664

ILS

   Buy      06/17/15       JPM      198,417         203,575         5,158   

ILS

   Sell      05/04/15       TDB      26,418         26,484         (66

ILS

   Sell      06/17/15       CBK      2,525,899         2,645,949         (120,050

INR

   Buy      06/17/15       JPM      2,415,012         2,404,103         (10,909

INR

   Sell      06/17/15       JPM      2,481,387         2,470,178         11,209   

JPY

   Buy      05/01/15       DEUT      24,150         24,105         (45

JPY

   Buy      05/07/15       HSBC      17,326         17,278         (48

JPY

   Buy      05/08/15       DEUT      26,301         26,197         (104

JPY

   Buy      06/17/15       NAB      2,071,545         2,089,438         17,893   

JPY

   Buy      06/17/15       BNP      330,840         331,065         225   

JPY

   Sell      05/08/15       DEUT      6,422         6,397         25   

JPY

   Sell      05/29/15       DEUT      2,231,944         2,222,545         9,399   

JPY

   Sell      05/29/15       MSC      6,520,028         6,532,488         (12,460

JPY

   Sell      06/17/15       GSC      1,795,498         1,791,079         4,419   

JPY

   Sell      06/17/15       DEUT      7,498,885         7,607,600         (108,715

JPY

   Sell      06/17/15       JPM      7,498,158         7,607,616         (109,458

KRW

   Buy      06/17/15       BOA      3,619,547         3,727,244         107,697   

KRW

   Buy      06/17/15       BNP      1,199,100         1,228,903         29,803   

KRW

   Sell      06/17/15       CBK      10,084,375         10,572,595         (488,220

KRW

   Sell      06/17/15       CBK          10,037,550         10,572,594         (535,044

MUR

   Buy      05/05/15       SSG      35,314         35,411         97   

MUR

   Sell      05/05/15       SSG      36,512         36,612         (100

MXN

   Buy      06/17/15       MSC      1,614,062         1,636,568         22,506   

MXN

   Buy      06/17/15       RBC      1,614,379         1,636,504         22,125   

MXN

   Sell      06/17/15       BOA      503,256         497,044         6,212   

MYR

   Sell      05/05/15       SSG      24,986         25,012         (26

MYR

   Sell      05/06/15       SSG      92,776         92,713         63   

MYR

   Sell      06/17/15       HSBC      857,006         898,302         (41,296

NOK

   Buy      06/17/15       CBK      13,374,741             14,336,522         961,781   

NOK

   Sell      06/17/15       JPM      661,666         704,240         (42,574

NOK

   Sell      06/17/15       RBS      572,135         623,339         (51,204

NOK

   Sell      06/17/15       DEUT      933,113         1,034,476         (101,363

NZD

   Sell      06/17/15       CBA      3,744,184         3,934,141         (189,957

NZD

   Sell      06/17/15       WEST      3,743,146         3,934,901         (191,755

PEN

   Sell      06/17/15       SSG      256,240         257,077         (837

PEN

   Sell      06/17/15       SCB      255,192         257,077         (1,885

PLN

   Buy      06/17/15       DEUT      993,606         1,027,804         34,198   

PLN

   Sell      06/17/15       JPM      313,809         338,626         (24,817

PLN

   Sell      06/17/15       BOA      313,101         338,626         (25,525

SEK

   Buy      06/17/15       CBK      7,074,578         7,335,536         260,958   

SEK

   Buy      06/17/15       BCLY      3,511,074         3,625,488         114,414   

SEK

   Buy      06/17/15       CBK      890,152         911,898         21,746   

SEK

   Sell      06/17/15       CSFB      909,656         923,668         (14,012

SEK

   Sell      06/17/15       JPM      1,154,768         1,198,126         (43,358

SGD

   Sell      06/17/15       BNP      914,656         947,610         (32,954

SGD

   Sell      06/17/15       JPM      916,883         961,202         (44,319

SGD

   Sell      06/17/15       JPM      2,605,139         2,740,897         (135,758

TRY

   Sell      05/05/15       TDB      20,405         20,393         12   

TWD

   Sell      06/17/15       CBK      3,624,073         3,750,963         (126,890

ZAR

   Buy      06/17/15       JPM      1,948,411         2,022,017         73,606   

ZAR

   Sell      06/17/15       JPM      911,808         946,254         (34,446
                 

 

 

 

Total

                  $     (3,792,725)   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

86

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CLP

   Chilean Peso

CNY

   Chinese Yuan

DKK

   Danish Krone

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

ILS

   Israeli Shekel

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   South Korea Won

MUR

   Mauritian Rupee

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NOK

   Norwegian Krone

NZD

   New Zealand Dollar

PEN

   Peruvian Nuevo Sol

PLN

   Polish Zloty

SEK

   Swedish Krona

SGD

   Singapore Dollar

TRY

   Turkish Lira

TWD

   Taiwanese Dollar

ZAR

   South African Rand
 

 

Index Abbreviations:

CDX.EM

   Credit Derivatives Emerging Markets

CDX.NA.HY

   Credit Derivatives North American High Yield

DAX

   Deutscher Aktien Index

EAFE

   Europe, Australasia and Far East

FTSE

   Financial Times and Stock Exchange

MSCI

   Morgan Stanley Capital International

S&P

   Standard & Poors

SGX

   Singapore Exchange

SPI

   Share Price Index
Other Abbreviations:

ADR

   American Depositary Receipt

CLO

   Collateralized Loan Obligation

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

ETF

   Exchange Traded Fund

EURIBOR

   Euro Interbank Offered Rate

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

FX

   Foreign Exchange

GDR

   Global Depositary Receipt

GNMA

   Government National Mortgage Association

J-REIT

   Japanese Real Estate Investment Trust

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

NVDR

   Non-Voting Depositary Receipt

OTC

   Over-the-Counter

REIC

   Real Estate Investment Company

REIT

   Real Estate Investment Trust

SPDR

   Standard & Poor’s Depositary Receipt

TBA

   To Be Announced
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  87  

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1 (1)      Level 2 (1)      Level 3  

Assets

           

Asset & Commercial Mortgage Backed Securities

   $     27,391,235       $       $     27,391,235       $   

Corporate Bonds

     11,487,393                 11,487,393           

Foreign Government Obligations

     30,692,935                 30,692,935           

U.S. Government Agencies

     23,070,790                 23,070,790           

U.S. Government Securities

     7,892,883                 7,892,883           

Common Stocks

           

Australia

     2,539,491         796,098         1,743,393           

Austria

     985,159         951,885         33,274           

Belgium

     762,917         230,357         532,560           

Bermuda

     63,303         63,303                   

Brazil

     165,940         165,940                   

British Virgin Islands

     513,255         513,255                   

Canada

     7,175,292         7,002,628         172,664           

Chile

     23,063         23,063                   

China

     13,769,574         4,319,500         9,450,074           

Denmark

     946,585         70,812         875,773           

Egypt

     669,244                 669,244           

Finland

     138,517                 138,517           

France

     8,581,745         92,619         8,489,126           

Germany

     7,898,375         793,092         7,105,283           

Greece

     5,158,776         493,514         4,665,262           

Hong Kong

     4,366,547         12,594         4,353,953           

Hungary

     6,562         6,562                   

India

     12,072,394         1,912,105         10,160,289           

Indonesia

     414,803         347,086         67,717           

Ireland

     4,427,944         1,255,483         3,172,461           

Israel

     3,527,569         944,268         2,583,301           

Italy

     4,895,551                 4,895,551           

Japan

     26,211,251         108,079         26,103,172           

Jersey

     928,784         830,215         98,569           

Kenya

     45,174         45,174                   

Luxembourg

     1,366,210                 1,366,210           

Malaysia

     1,630,082         1,021,559         608,523           

Mauritius

     656,949         656,949                   

Mexico

     35,950         35,950                   

Netherlands

     6,228,395         2,097,059         4,131,336           

Norway

     1,249,704                 1,249,704           

Panama

     51,548         51,548                   

Puerto Rico

     54,727         54,727                   

Romania

     22,728                 22,728           

Singapore

     4,565,074         386,847         4,178,227           

South Africa

     403,060                 403,060           

South Korea

     5,104,415                 5,104,415           

Spain

     2,128,101                 2,128,101           

Sweden

     876,751                 876,751           

Switzerland

     4,520,272         1,080,448         3,439,824           

Taiwan

     9,262,695         323,657         8,939,038           

Thailand

     770,789         551,470         219,319           

Turkey

     569,282                 569,282           

United Arab Emirates

     7,591                 7,591           

United Kingdom

     11,985,322         2,305,152         9,680,170           

United States

     87,047,856         86,641,727         406,129           

Exchange Traded Funds

     20,107,050         20,107,050                   

Preferred Stocks

     276,780                         276,780   

Warrants

     270,635         141,278         129,357           

Short-Term Investments

     63,455,020         63,455,020                   

Purchased Options

     125,469         18,620         106,849           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 429,595,506       $     199,906,693       $ 229,412,033       $     276,780   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

88

 


The Hartford Global All-Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Foreign Currency Contracts (2)

   $ 3,656,495      $      $ 3,656,495      $   

Futures Contracts (2)

     532,828        532,828                 

Swaps - Credit Default (2)

     141,870               141,870          

Swaps - Total Return (2)

     1,936,278               1,936,278          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 6,267,471      $ 532,828      $ 5,734,643      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $     (7,449,220   $      $     (7,449,220   $   

Futures Contracts (2)

     (490,255     (490,255              

Swaps - Interest Rate (2)

     (24,144            (24,144       

Swaps - Total Return (2)

     (371,763            (371,763       

TBA Sale Commitments

     (18,353,019            (18,353,019       

Written Options

     (78,025            (78,025       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (26,766,426   $     (490,255   $ (26,276,171   $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $4,999,602 were transferred from Level 1 to Level 2, and investments valued at $8,717,582 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Preferred Stocks      Total  

Beginning balance

   $ 3,015,268      $ 120,397       $ 3,135,665   

Purchases

     428,385.00        62,638.00         491,023.00   

Sales

     (163,495.00             (163,495.00

Accrued discounts/(premiums)

     3,015.00                3,015.00   

Total realized gain/(loss)

     (6,067.00             (6,067.00

Net change in unrealized appreciation/depreciation

     (11,482.00         93,745.00         82,263.00   

Transfers into Level 3

                      

Transfers out of Level 3

         (3,265,624.00                 (3,265,624.00
  

 

 

   

 

 

    

 

 

 

Ending balance

   $      $ 276,780       $ 276,780   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $93,745.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  89  

 


Hartford Multi-Asset Income Fund

 

 

 

Diversification by Country

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Argentina

     0.3

Australia

     1.6   

Bahamas

     0.1   

Belgium

     0.6   

Bermuda

     0.1   

Brazil

     1.2   

Canada

     2.2   

Cayman Islands

     0.6   

Chile

     0.2   

China

     1.0   

Colombia

     0.7   

Costa Rica

     0.1   

Cyprus

     0.1   

Czech Republic

     0.3   

Denmark

     0.1   

Dominican Republic

     0.2   

El Salvador

     0.1   

Finland

     0.2   

France

     1.9   

Gabon

     0.1   

Germany

     0.5   

Greece

     0.1   

Hong Kong

     1.3   

Hungary

     0.2   

India

     0.4   

Indonesia

     0.8   

Ireland

     0.3   

Israel

     1.0   

Italy

     0.2   

Japan

     1.5   

Luxembourg

     3.6   

Malaysia

     0.1   

Mexico

     2.1   

Montenegro

     0.1   

Netherlands

     1.2   

Norway

     0.2   

Panama

     0.1   

Peru

     0.2   

Poland

     0.1   

Puerto Rico

     0.3   

Romania

     0.4   

Russia

     0.9   

Singapore

     0.2   

South Africa

     0.8   

South Korea

     0.3   

Spain

     2.2   

Sweden

     0.1   

Switzerland

     1.2   

Taiwan

     0.5   

Thailand

     0.1   

Turkey

     0.7   

United Kingdom

     3.4   

United States

     68.8   

Uruguay

     0.6   

Other Assets & Liabilities

     (6.2
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

90

 


Hartford Multi-Asset Income Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     8.7

Aa/AA

     0.1   

A

     2.5   

Baa/BBB

     7.0   

Ba/BB

     20.7   

B

     17.4   

Caa/CCC or Lower

     9.7   

Not Rated

     3.9   

Non-Debt Securities and Other Short-Term Instruments

     36.2   

Other Assets & Liabilities

     (6.2
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     29.2

Rights

     0.0   
  

 

 

 

Total

     29.2
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     10.4

Corporate Bonds

     17.9   

Foreign Government Obligations

     6.8   

Municipal Bonds

     0.3   

Senior Floating Rate Interests

     26.5   

U.S. Government Agencies

     8.1   
  

 

 

 

Total

     70.0
  

 

 

 

Short-Term Investments

     7.0

Purchased Options

     0.0   

Other Assets & Liabilities

     (6.2
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

91

 


Hartford Multi-Asset Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 10.4%  
            Asset-Backed - Finance & Insurance - 0.0%  
   

Lehman XS Trust

 
  $        43,835     

0.44%, 11/25/2035 (1)

  $ 31,213   
     

 

 

 
            Asset-Backed - Home Equity - 1.8%  
   

GSAA Home Equity Trust

 
    1,069,568     

0.25%, 12/25/2046 (1)

    628,867   
    152,862     

0.27%, 12/25/2036 (1)

    74,416   
    121,680     

0.27%, 03/25/2037 (1)

    65,843   
    52,694     

0.36%, 11/25/2036 (1)

    28,596   
    907,904     

0.41%, 04/25/2047 (1)

    601,197   
    913,001     

0.48%, 03/25/2036 (1)

    653,060   
    68,521     

0.50%, 04/25/2047 (1)

    45,735   
    481,404     

5.99%, 06/25/2036 (1)

    278,983   
   

Renaissance Home Equity Loan Trust

 
    377,374     

5.91%, 04/25/2037

    215,132   
   

Soundview Home Loan Trust

 
    40,000     

0.43%, 11/25/2036 (1)

    27,568   
     

 

 

 
        2,619,397   
     

 

 

 
            Commercial Mortgage-Backed Securities - 0.6%  
   

Citigroup Commercial Mortgage Trust

 
    70,000     

4.56%, 03/10/2047 (1)(2)

    57,287   
   

Community or Commercial Mortgage Trust

 
    175,000     

4.73%, 10/15/2045 (1)(2)

    145,066   
   

GS Mortgage Securities Trust

 
    65,000     

3.58%, 06/10/2047 (2)

    48,276   
    105,000     

3.72%, 01/10/2047 (2)

    66,187   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    100,000     

4.00%, 08/15/2046 (2)

    93,484   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    90,000     

4.50%, 08/15/2045 (2)

    70,871   
   

Morgan Stanley Capital I Trust

 
    90,000     

5.36%, 07/15/2049 (1)(2)

    82,469   
   

UBS-Barclays Commercial Mortgage Trust

 
    60,000     

4.23%, 03/10/2046 (1)(2)

    50,785   
   

Wells Fargo Commercial Mortgage Trust

 
    15,000     

4.11%, 05/15/2048 (1)

    13,774   
   

WF-RBS Commercial Mortgage Trust

 
    250,599     

3.02%, 11/15/2047 (2)

    178,234   
    45,505     

5.00%, 04/15/2045 (2)

    37,212   
     

 

 

 
        843,645   
     

 

 

 
            Whole Loan Collateral CMO - 7.8%  
   

Adjustable Rate Mortgage Trust

 
    29,751     

0.43%, 01/25/2036 (1)

    24,966   
    74,735     

0.45%, 11/25/2035 (1)

    68,096   
    31,159     

0.68%, 01/25/2036 (1)

    26,921   
   

American Home Mortgage Assets Trust

 
    92,766     

0.37%, 09/25/2046 (1)

    69,208   
   

Banc of America Funding Corp.

 
    7,895     

0.37%, 10/20/2036 (1)

    5,907   
    691,240     

0.41%, 02/20/2047 (1)

    599,563   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    419,264     

4.89%, 06/25/2047 (1)

    375,792   
   

Bear Stearns Alt-A Trust

 
    99,788     

0.50%, 08/25/2036 (1)

    74,799   
    451,626     

0.66%, 02/25/2036 (1)

    370,905   
    83,969     

0.70%, 11/25/2035 (1)

    72,014   
    65,998     

2.63%, 09/25/2035 (1)

    60,543   
    2,250     

2.75%, 08/25/2036 (1)

    1,679   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 10.4% -
(continued)
 
            Whole Loan Collateral CMO - 7.8% - (continued)  
   

Bear Stearns Mortgage Funding Trust

 
  $        137,411     

0.36%, 10/25/2036 (1)

  $ 107,044   
   

CHL Mortgage Pass-Through Trust

 
    560,926     

0.52%, 03/25/2035 (1)

    459,915   
    136,859     

2.42%, 06/20/2035 (1)

    130,507   
    547,436     

2.42%, 06/20/2035 (1)

    522,029   
   

Connecticut Avenue Securities Series

 
    65,000     

2.78%, 05/25/2024 (1)

    60,604   
    280,000     

3.08%, 07/25/2024 (1)

    265,335   
    380,000     

3.18%, 07/25/2024 (1)

    364,041   
    165,000     

5.08%, 11/25/2024 (1)

    175,528   
   

Countrywide Alternative Loan Trust

 
    38,787     

0.32%, 04/25/2047 (1)

    32,689   
    258,677     

0.45%, 01/25/2036 (1)

    229,972   
    389,100     

0.58%, 10/25/2036 (1)

    279,034   
    910,513     

0.63%, 04/25/2037 (1)

    583,469   
    181,999     

6.00%, 05/25/2036

    156,869   
   

Countrywide Home Loans, Inc.

 
    173,300     

5.75%, 08/25/2037

    164,801   
   

Downey S & L Association Mortgage Loan Trust

 
    88,532     

1.05%, 03/19/2046 (1)

    68,019   
   

GSR Mortgage Loan Trust

 
    653,416     

2.71%, 01/25/2036 (1)

    605,188   
   

HarborView Mortgage Loan Trust

 
    91,681     

0.42%, 03/19/2036 (1)

    66,043   
    470,303     

0.88%, 01/19/2035 (1)

    327,382   
   

IndyMac Index Mortgage Loan Trust

 
    83,483     

0.38%, 10/25/2036 (1)

    71,003   
    191,068     

0.42%, 07/25/2035 (1)

    165,933   
   

JP Morgan Mortgage Trust

 
    306,823     

2.39%, 11/25/2035 (1)

    290,744   
    243,793     

2.61%, 05/25/2036 (1)

    216,397   
   

MASTR Adjustable Rate Mortgages Trust

 
    345,685     

0.42%, 05/25/2037 (1)

    231,308   
   

Morgan Stanley Mortgage Loan Trust

 
    578,449     

2.76%, 05/25/2036 (1)

    420,004   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    161,390     

3.47%, 06/25/2036 (1)

    123,586   
   

RBSGC Mortgage Pass-Through Certificates

 
    333,831     

6.25%, 01/25/2037

    301,726   
   

Residential Accredit Loans, Inc.

 
    356,669     

0.40%, 02/25/2046 (1)

    169,312   
    562,747     

1.39%, 11/25/2037 (1)

    359,305   
   

Residential Funding Mortgage Securities, Inc.

 
    128,635     

2.70%, 08/25/2035 (1)

    101,944   
    542,388     

6.00%, 07/25/2037

    492,522   
   

Sequoia Mortgage Trust

 
    226,619     

0.45%, 01/20/2035 (1)

    214,474   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    94,445     

0.37%, 07/25/2037 (1)

    68,899   
   

WaMu Mortgage Pass-Through Certificates

 
    506,842     

0.95%, 12/25/2046 (1)

    406,833   
   

WaMu Mortgage Pass-Through Certificates Trust

 
    52,314     

0.60%, 06/25/2044 (1)

    48,399   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  92  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 10.4% -
(continued)
 
            Whole Loan Collateral CMO - 7.8% - (continued)  
  $        432,644     

1.12%, 07/25/2046 (1)

  $ 359,010   
    40,458     

2.20%, 11/25/2046 (1)

    36,466   
    547,396     

4.47%, 08/25/2036 (1)

    495,248   
   

Wells Fargo Alternative Loan Trust

 
    159,709     

2.57%, 12/28/2037 (1)

    137,310   
   

Wells Fargo Mortgage Backed Securities Trust

 
    142,173     

2.49%, 10/25/2036 (1)

    132,337   
     

 

 

 
        11,191,622   
     

 

 

 
            Whole Loan Collateral PAC - 0.2%      
   

Countrywide Alternative Loan Trust

 
    446,964     

0.68%, 12/25/2035 (1)

    320,606   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $15,353,094)

  $ 15,006,483   
     

 

 

 
CORPORATE BONDS - 17.9%      
            Advertising - 0.0%      
   

Getty Images, Inc.

 
    30,000     

7.00%, 10/15/2020 (2)

  $ 17,550   
     

 

 

 
            Auto Manufacturers - 0.0%      
   

General Motors Co.

 
    25,000     

4.88%, 10/02/2023

    27,075   
    15,000     

6.25%, 10/02/2043

    17,903   
     

 

 

 
        44,978   
     

 

 

 
            Chemicals - 0.1%      
   

INEOS Group Holdings S.A.

 
  EUR        100,000     

6.50%, 08/15/2018 (3)

    115,934   
     

 

 

 
            Coal - 0.0%      
   

Peabody Energy Corp.

 
  $        105,000     

6.50%, 09/15/2020

    65,100   
     

 

 

 
            Commercial Banks - 5.9%      
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        600,000     

7.00%, 02/19/2019 (1)(3)(4)

    690,553   
  $        400,000     

9.00%, 05/09/2018 (1)(3)(4)

    432,500   
   

Banco do Brasil S.A.

 
    200,000     

3.88%, 10/10/2022

    189,100   
    221,000     

6.25%, 04/15/2024 (1)(3)(4)

    163,584   
   

Banco Santander S.A.

 
  EUR        900,000     

6.25%, 03/12/2019 (1)(3)(4)

    1,014,355   
   

Bank of Ireland

 
    100,000     

10.00%, 07/30/2016 (3)

    120,705   
   

Barclays Bank plc

 
    400,000     

8.00%, 12/15/2020 (1)(4)

    494,108   
  $        425,000     

8.25%, 12/15/2018 (1)(4)

    452,709   
   

CIT Group, Inc.

 
    500,000     

5.50%, 02/15/2019 (2)

    523,125   
   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

 
  EUR        200,000     

5.50%, 06/29/2020 (1)(3)(4)

    235,125   
   

Credit Agricole S.A.

 
    175,000     

6.50%, 06/23/2021 (1)(3)(4)

    205,729   
  $        200,000     

8.13%, 09/19/2033 (1)(2)

    225,750   
   

Credit Suisse Group AG

 
  EUR        200,000     

5.75%, 09/18/2025 (1)(3)

    259,445   
   

Export-Import Bank of India

 
    550,000     

2.75%, 08/12/2020 (3)

    543,763   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Commercial Banks - 5.9% - (continued)      
   

HSBC Holdings plc

 
  $        325,000     

5.63%, 01/17/2020 (1)(4)

  $ 332,312   
   

ING Groep N.V.

 
    215,000     

6.00%, 04/16/2020 (1)(4)

    214,059   
   

Lloyds Banking Group plc

 
  EUR        325,000     

6.38%, 06/27/2020 (1)(3)(4)

    388,711   
  GBP        200,000     

7.00%, 06/27/2019(1)(3)(4)

    314,300   
   

Provident Funding Associates L.P.

 
  $        35,000     

6.75%, 06/15/2021 (2)

    33,338   
   

Royal Bank of Scotland Group plc

 
    100,000     

7.64%, 09/30/2017 (1)(4)

    109,500   
   

Societe Generale S.A.

 
    225,000     

6.00%, 01/27/2020 (1)(2)(4)

    214,448   
  EUR        125,000     

6.75%, 04/07/2021 (1)(3)(4)

    144,791   
  $        620,000     

8.25%, 11/29/2018 (1)(3)(4)

    658,750   
   

Standard Chartered plc

 
    310,000     

6.50%, 04/02/2020 (1)(2)(4)

    313,225   
   

UniCredit S.p.A.

 
    200,000     

8.00%, 06/03/2024 (1)(3)(4)

    204,400   
     

 

 

 
        8,478,385   
     

 

 

 
            Commercial Services - 0.6%  
   

ADT Corp.

 
    350,000     

6.25%, 10/15/2021

    376,250   
   

Cardtronics, Inc.

 
    65,000     

5.13%, 08/01/2022 (2)

    64,513   
   

Quad/Graphics, Inc.

 
    70,000     

7.00%, 05/01/2022

    67,417   
   

Service Corp. International

 
    20,000     

7.63%, 10/01/2018

    23,100   
   

Servicemaster Co.

 
    76,000     

7.00%, 08/15/2020

    80,370   
   

Sotheby’s

 
    125,000     

5.25%, 10/01/2022 (3)

    124,687   
   

United Rentals North America, Inc.

 
    30,000     

4.63%, 07/15/2023

    30,413   
    40,000     

5.50%, 07/15/2025

    40,522   
     

 

 

 
        807,272   
     

 

 

 
            Construction Materials - 0.6%  
   

Associated Materials LLC

 
    40,000     

9.13%, 11/01/2017

    34,000   
   

Building Materials Corp. of America

 
    205,000     

5.38%, 11/15/2024 (2)

    210,125   
   

Cemex S.A.B. de C.V.

 
    200,000     

7.25%, 01/15/2021(2)

    216,500   
   

HeidelbergCement Finance Luxembourg S.A.

 
  EUR        30,000     

8.50%, 10/31/2019 (3)

    44,107   
   

Kerneos Corporate SAS

 
    100,000     

5.75%, 03/01/2021 (3)

    119,022   
   

Norbord, Inc.

 
    55,000     

6.25%, 04/15/2023 (2)

    55,619   
   

Nortek, Inc.

 
    50,000     

8.50%, 04/15/2021

    54,000   
   

Ply Gem Industries, Inc.

 
    90,000     

6.50%, 02/01/2022

    88,200   
   

USG Corp.

 
    50,000     

5.50%, 03/01/2025 (2)

    52,500   
     

 

 

 
  874,073   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

93

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Diversified Financial Services - 0.7%  
   

Intercorp Peru Ltd.

 
  $        100,000     

5.88%, 02/12/2025 (2)

  $ 101,000   
   

International Lease Finance Corp.

 
    200,000     

5.88%, 04/01/2019

    217,500   
    155,000     

6.25%, 05/15/2019

    171,275   
   

Nationstar Mortgage LLC / Nationstar Capital Corp.

 
    55,000     

7.88%, 10/01/2020

    56,650   
   

Navient Corp.

 
    350,000     

8.45%, 06/15/2018

    390,495   
   

TMX Finance LLC

 
    35,000     

8.50%, 09/15/2018 (2)

    25,025   
     

 

 

 
        961,945   
     

 

 

 
            Electric - 0.8%  
   

DPL, Inc.

 
    150,000     

7.25%, 10/15/2021

    162,000   
   

Dynegy, Inc.

 
    10,000     

5.88%, 06/01/2023

    9,875   
   

Empresa Electrica Angamos S.A.

 
    210,000     

4.88%, 05/25/2029 (2)

    212,362   
   

Eskom Holdings Ltd.

 
    275,000     

5.75%, 01/26/2021 (2)

    273,900   
   

GenOn Americas Generation LLC

 
    100,000     

9.13%, 05/01/2031

    95,125   
   

NRG Energy, Inc.

 
    50,000     

6.25%, 07/15/2022

    51,875   
   

Perusahaan Listrik Negara PT

 
    250,000     

5.50%, 11/22/2021 (3)

    271,250   
   

Texas Competitive Electric Holdings Co. LLC / TCEH Finance, Inc.

 
    70,000     

11.50%, 10/01/2020 (3)(5)

    46,025   
     

 

 

 
        1,122,412   
     

 

 

 
            Electrical Components & Equipment - 0.0%  
   

EnerSys

 
    55,000     

5.00%, 04/30/2023 (2)

    55,688   
     

 

 

 
            Engineering & Construction - 0.1%  
   

Abengoa Finance

 
  EUR        100,000     

6.00%, 03/31/2021 (3)

    104,986   
     

 

 

 
            Entertainment - 0.1%  
   

AMC Entertainment, Inc.

 
  $        40,000     

9.75%, 12/01/2020

    43,500   
   

Cinemark USA, Inc.

 
    60,000     

4.88%, 06/01/2023

    60,672   
     

 

 

 
        104,172   
     

 

 

 
            Environmental Control - 0.1%  
   

Clean Harbors, Inc.

 
    120,000     

5.25%, 08/01/2020

    123,600   
     

 

 

 
            Food - 0.1%      
   

Albertson’s Holdings LLC

 
    21,000     

7.75%, 10/15/2022 (2)

    22,890   
   

Marfrig Holding Europe B.V.

 
    200,000     

6.88%, 06/24/2019 (3)

    178,000   
     

 

 

 
        200,890   
     

 

 

 
            Food Service - 0.1%      
   

Aramark Services, Inc.

 
    70,000     

5.75%, 03/15/2020

    72,975   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Forest Products & Paper - 0.2%  
   

Cascades, Inc.

 
  $        20,000     

5.50%, 07/15/2022 (2)

  $ 20,250   
   

Clearwater Paper Corp.

 
    60,000     

5.38%, 02/01/2025 (2)

    61,050   
   

Smurfit Kappa Acquisitions

 
  EUR        100,000     

4.13%, 01/30/2020 (3)

    123,654   
   

Tembec Industries, Inc.

 
  $        65,000     

9.00%, 12/15/2019 (2)

    66,300   
     

 

 

 
        271,254   
     

 

 

 
            Gas - 0.0%  
   

Southern Star Central Corp.

 
    10,000     

5.13%, 07/15/2022 (2)

    10,400   
     

 

 

 
            Healthcare-Products - 0.1%  
   

Alere, Inc.

 
    80,000     

6.50%, 06/15/2020

    83,200   
    25,000     

7.25%, 07/01/2018

    26,531   
   

Biomet, Inc.

 
    40,000     

6.50%, 08/01/2020

    42,350   
     

 

 

 
        152,081   
     

 

 

 
            Healthcare-Services - 0.8%  
   

Amsurg Corp.

 
    65,000     

5.63%, 07/15/2022

    65,988   
   

Community Health Systems, Inc.

 
    145,000     

5.13%, 08/01/2021

    150,075   
    40,000     

6.88%, 02/01/2022

    42,450   
    140,000     

7.13%, 07/15/2020

    150,150   
   

Envision Healthcare Corp.

 
    10,000     

5.13%, 07/01/2022 (2)

    10,300   
   

HCA Holdings, Inc.

 
    85,000     

6.25%, 02/15/2021

    92,820   
   

HCA, Inc.

 
    60,000     

5.38%, 02/01/2025

    63,000   
    340,000     

6.50%, 02/15/2020

    387,600   
    20,000     

7.50%, 11/15/2095

    19,500   
   

inVentiv Health, Inc.

 
    15,000     

9.00%, 01/15/2018 (2)

    15,750   
   

MPH Acquisition Holdings LLC

 
    30,000     

6.63%, 04/01/2022 (2)

    31,500   
   

Tenet Healthcare Corp.

 
    70,000     

5.00%, 03/01/2019 (2)

    69,562   
    50,000     

8.13%, 04/01/2022

    54,563   
   

Wellcare Health Plans, Inc.

 
    75,000     

5.75%, 11/15/2020

    79,500   
     

 

 

 
        1,232,758   
     

 

 

 
            Holding Companies-Diversified - 0.2%      
   

Argos Merger Sub, Inc.

 
    20,000     

7.13%, 03/15/2023 (2)

    21,000   
   

CeramTec Group GmbH

 
  EUR        100,000     

8.25%, 08/15/2021 (3)

    123,522   
   

Hutchison Whampoa Europe Finance Ltd.

 
    120,000     

3.75%, 05/10/2018 (1)(3)(4)

    138,394   
     

 

 

 
        282,916   
     

 

 

 
            Home Builders - 0.2%      
   

K Hovnanian Enterprises, Inc.

 
  $        50,000     

7.00%, 01/15/2019 (2)

    47,750   
    60,000     

8.00%, 11/01/2019 (2)

    58,200   
   

KB Home

 
    145,000     

7.00%, 12/15/2021

    151,162   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  94  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Home Builders - 0.2% - (continued)      
   

Lennar Corp.

 
  $        70,000     

4.75%, 11/15/2022

  $ 70,788   
     

 

 

 
        327,900   
     

 

 

 
            Household Products/Wares - 0.0%      
   

Sun Products Corp.

 
    60,000     

7.75%, 03/15/2021 (2)

    52,875   
     

 

 

 
            Internet - 0.2%      
   

Alibaba Group Holding Ltd.

 
    200,000     

3.60%, 11/28/2024 (3)

    199,102   
   

Zayo Group LLC

 
    50,000     

6.00%, 04/01/2023 (2)

    50,250   
     

 

 

 
        249,352   
     

 

 

 
            Iron/Steel - 0.3%      
   

AK Steel Corp.

 
    85,000     

7.63%, 05/15/2020

    73,737   
    35,000     

7.63%, 10/01/2021

    28,875   
   

ArcelorMittal

 
    25,000     

7.50%, 03/01/2041

    25,563   
    25,000     

7.75%, 10/15/2039

    25,813   
   

Steel Dynamics, Inc.

 
    40,000     

5.13%, 10/01/2021 (2)

    40,900   
    105,000     

5.50%, 10/01/2024 (2)

    108,412   
   

United States Steel Corp.

 
    200,000     

7.38%, 04/01/2020

    209,000   
     

 

 

 
        512,300   
     

 

 

 
            IT Services - 0.0%      
   

SunGard Data Systems, Inc.

 
    50,000     

6.63%, 11/01/2019

    52,125   
     

 

 

 
            Lodging - 0.1%      
   

NH Hotel Group S.A.

 
  EUR        100,000     

6.88%, 11/15/2019 (2)

    124,075   
     

 

 

 
            Machinery - Contruction & Mining - 0.0%      
   

Oshkosh Corp.

 
  $        35,000     

5.38%, 03/01/2025 (2)

    36,313   
     

 

 

 
            Machinery-Diversified - 0.1%      
   

Case New Holland Industrial, Inc.

 
    165,000     

7.88%, 12/01/2017

    181,912   
     

 

 

 
            Media - 0.9%      
   

CCO Holdings LLC

 
    80,000     

5.25%, 09/30/2022

    79,940   
    70,000     

5.75%, 09/01/2023

    70,700   
    65,000     

6.63%, 01/31/2022

    69,225   
   

CCO Holdings LLC / CCO Holdings Capital Corp.

 
    25,000     

5.13%, 05/01/2023 (2)

    24,750   
   

Cequel Communications Holdings I LLC

 
    15,000     

5.13%, 12/15/2021 (2)

    15,022   
    75,000     

5.13%, 12/15/2021 (2)

    75,281   
   

DISH DBS Corp.

 
    380,000     

6.75%, 06/01/2021

    402,355   
    25,000     

7.88%, 09/01/2019

    28,219   
   

Gannett Co., Inc.

 
    30,000     

4.88%, 09/15/2021 (2)

    30,825   
    70,000     

5.13%, 10/15/2019

    73,762   
    5,000     

5.50%, 09/15/2024 (2)

    5,200   
    45,000     

6.38%, 10/15/2023

    48,713   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Media - 0.9% - (continued)      
   

Gray Television, Inc.

 
  $        20,000     

7.50%, 10/01/2020

  $ 21,250   
   

Harron Communications LP/Harron Finance Corp.

 
    30,000     

9.13%, 04/01/2020 (2)

    32,925   
   

Liberty Interactive LLC

 
    100,000     

8.25%, 02/01/2030

    110,750   
   

Sirius XM Radio, Inc.

 
    40,000     

4.25%, 05/15/2020 (2)

    39,800   
   

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH

 
  EUR        89,588     

5.75%, 01/15/2023 (3)

    109,061   
     

 

 

 
        1,237,778   
     

 

 

 
            Mining - 0.4%      
   

Constellium N.V.

 
    100,000     

4.63%, 05/15/2021 (3)

    108,186   
   

FMG Resources August 2006 Pty Ltd.

 
  $        190,000     

6.88%, 04/01/2022 (2)

    143,925   
   

Southern Copper Corp.

 
    55,000     

5.25%, 11/08/2042

    50,563   
    100,000     

5.88%, 04/23/2045

    98,330   
   

Vedanta Resources plc

 
    200,000     

6.00%, 01/31/2019 (3)

    188,500   
     

 

 

 
        589,504   
     

 

 

 
            Office/Business Equipment - 0.1%      
   

CDW LLC / CDW Finance Corp.

 
    10,000     

5.00%, 09/01/2023

    10,300   
    20,000     

5.50%, 12/01/2024

    21,260   
    65,000     

6.00%, 08/15/2022

    70,038   
     

 

 

 
        101,598   
     

 

 

 
            Oil & Gas - 1.8%      
   

Antero Resources Corp.

 
    30,000     

5.63%, 06/01/2023 (2)

    30,637   
    70,000     

6.00%, 12/01/2020

    71,487   
   

Blue Racer Midstream LLC

 
    20,000     

6.13%, 11/15/2022 (2)

    20,800   
   

Bonanza Creek Energy, Inc.

 
    25,000     

6.75%, 04/15/2021

    25,438   
   

Concho Resources, Inc.

 
    30,000     

5.50%, 10/01/2022

    30,528   
    50,000     

5.50%, 04/01/2023

    50,687   
   

Diamondback Energy, Inc.

 
    50,000     

7.63%, 10/01/2021

    54,125   
   

Ecopetrol S.A.

 
    525,000     

5.88%, 05/28/2045

    503,344   
   

Everest Acquisition LLC

 
    45,000     

9.38%, 05/01/2020

    48,150   
   

Laredo Petroleum, Inc.

 
    15,000     

5.63%, 01/15/2022

    15,094   
    45,000     

6.25%, 03/15/2023

    46,575   
    5,000     

7.38%, 05/01/2022

    5,350   
   

Matador Resources Co.

 
    10,000     

6.88%, 04/15/2023 (2)

    10,263   
   

MEG Energy Corp.

 
    35,000     

7.00%, 03/31/2024 (2)

    34,482   
   

Nexen Energy ULC

 
    20,000     

5.88%, 03/10/2035

    23,008   
    95,000     

6.40%, 05/15/2037

    116,552   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  95  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Oil & Gas - 1.8% - (continued)      
   

Paragon Offshore plc

 
  $        70,000     

6.75%, 07/15/2022 (2)

  $ 29,050   
   

Petrobras Global Finance B.V.

 
    370,000     

4.38%, 05/20/2023

    329,052   
   

Petroleos de Venezuela S.A.

 
    50,000     

6.00%, 11/15/2026 (3)

    20,750   
   

Petroleos Mexicanos

 
    346,000     

5.50%, 06/27/2044

    341,329   
  MXN        2,500,000     

7.47%, 11/12/2026

    156,339   
   

Range Resources Corp.

 
  $        25,000     

5.00%, 08/15/2022

    25,375   
   

Rice Energy, Inc.

 
    10,000     

7.25%, 05/01/2023 (2)

    10,400   
   

Rosetta Resources, Inc.

 
    40,000     

5.63%, 05/01/2021

    40,050   
    25,000     

5.88%, 06/01/2022

    24,938   
   

SM Energy Co.

 
    15,000     

6.13%, 11/15/2022 (2)

    15,750   
   

Tesoro Corp.

 
    75,000     

5.13%, 04/01/2024

    76,875   
   

WPX Energy, Inc.

 
    90,000     

5.25%, 09/15/2024

    83,025   
    100,000     

6.00%, 01/15/2022

    98,038   
   

YPF S.A.

 
    222,000     

8.75%, 04/04/2024 (3)

    231,679   
     

 

 

 
        2,569,170   
     

 

 

 
            Packaging & Containers - 0.1%      
   

Ardagh Packaging Finance plc

 
  EUR        100,000     

9.25%, 10/15/2020 (3)

    119,864   
     

 

 

 
            Pharmaceuticals - 0.1%      
   

PRA Holdings, Inc.

 
  $        36,000     

9.50%, 10/01/2023 (2)

    40,635   
   

Salix Pharmaceuticals Ltd.

 
    90,000     

6.50%, 01/15/2021 (2)

    102,150   
   

Valeant Pharmaceuticals International, Inc.

 
    10,000     

6.13%, 04/15/2025 (2)

    10,319   
     

 

 

 
        153,104   
     

 

 

 
            Pipelines - 0.3%      
   

Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp.

 
    30,000     

6.25%, 04/01/2023 (2)

    31,350   
   

DCP Midstream Operating L.P.

 
    10,000     

4.95%, 04/01/2022

    9,943   
    5,000     

5.60%, 04/01/2044

    4,335   
   

El Paso Corp.

 
    25,000     

7.00%, 06/15/2017

    27,419   
   

Energy Transfer Equity L.P.

 
    140,000     

7.50%, 10/15/2020

    157,500   
   

MarkWest Energy Partners L.P.

 
    30,000     

4.88%, 12/01/2024

    31,032   
    30,000     

6.75%, 11/01/2020

    31,350   
   

Tesoro Logistics L.P.

 
    35,000     

5.50%, 10/15/2019 (2)

    37,012   
    55,000     

6.25%, 10/15/2022 (2)

    58,369   
     

 

 

 
        388,310   
     

 

 

 
            Retail - 0.3%      
   

99 Cents Only Stores

 
    50,000     

11.00%, 12/15/2019

    52,250   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Retail - 0.3% - (continued)      
   

CEC Entertainment, Inc.

 
  $        20,000     

8.00%, 02/15/2022

  $ 20,475   
   

Family Tree Escrow LLC

 
    5,000     

5.25%, 03/01/2020 (2)

    5,237   
    65,000     

5.75%, 03/01/2023 (2)

    68,250   
   

GRD Holding III Corp.

 
    50,000     

10.75%, 06/01/2019 (2)

    54,250   
   

Group 1 Automotive, Inc.

 
    55,000     

5.00%, 06/01/2022 (2)

    55,275   
   

Michaels Stores, Inc.

 
    70,000     

5.88%, 12/15/2020 (2)

    72,625   
   

Party City Holdings, Inc.

 
    40,000     

8.88%, 08/01/2020

    43,250   
   

PC Nextco Holdings LLC / PC Nextco Finance, Inc.

 
    50,000     

8.75%, 08/15/2019

    51,000   
     

 

 

 
        422,612   
     

 

 

 
            Savings & Loans - 0.5%      
   

Nationwide Building Society

 
  GBP        485,000     

6.88%, 06/20/2019 (3)(4)

    748,197   
     

 

 

 
            Semiconductors - 0.2%      
   

Entegris, Inc.

 
  $        115,000     

6.00%, 04/01/2022 (2)

    120,175   
   

Freescale Semiconductor, Inc.

 
    105,000     

6.00%, 01/15/2022 (2)

    113,452   
   

Sensata Technologies B.V.

 
    55,000     

5.00%, 10/01/2025 (2)

    56,788   
    20,000     

5.63%, 11/01/2024 (2)

    21,350   
     

 

 

 
        311,765   
     

 

 

 
            Software - 0.5%      
   

Activision Blizzard, Inc.

 
    132,000     

5.63%, 09/15/2021 (2)

    141,075   
    10,000     

6.13%, 09/15/2023 (2)

    11,019   
   

Audatex North America, Inc.

 
    130,000     

6.00%, 06/15/2021 (2)

    134,265   
    40,000     

6.13%, 11/01/2023 (2)

    41,700   
   

Emdeon, Inc.

 
    45,000     

11.00%, 12/31/2019

    49,275   
   

First Data Corp.

 
    60,000     

6.75%, 11/01/2020 (2)

    63,900   
    55,000     

8.25%, 01/15/2021 (2)

    58,317   
    45,000     

8.25%, 01/15/2021 (3)

    47,714   
   

Infor Software Parent LLC

 
    85,000     

7.13%, 05/01/2021 (2)(6)

    85,213   
   

Infor US, Inc.

 
    30,000     

6.50%, 05/15/2022 (2)

    30,825   
   

MSCI, Inc.

 
    55,000     

5.25%, 11/15/2024 (2)

    57,200   
   

Open Text Corp.

 
    20,000     

5.63%, 01/15/2023 (2)

    20,750   
     

 

 

 
        741,253   
     

 

 

 
            Telecommunications - 1.3%      
   

Alcatel-Lucent USA, Inc.

 
    110,000     

6.45%, 03/15/2029

    122,925   
   

Altice Financing S.A.

 
  EUR        100,000     

6.50%, 01/15/2022(3)

    121,279   
   

America Movil S.A.B. de C.V.

 
  MXN        2,150,000     

7.13%, 12/09/2024

    138,821   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  96  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 17.9% - (continued)      
            Telecommunications - 1.3% -
(continued)
     
   

Intelsat Jackson Holdings S.A.

 
  $        60,000     

7.50%, 04/01/2021

  $ 62,325   
   

Level 3 Financing, Inc.

 
    10,000     

5.13%, 05/01/2023 (2)

    9,975   
    50,000     

5.38%, 08/15/2022

    51,063   
    80,000     

7.00%, 06/01/2020

    85,700   
   

SoftBank Corp.

 
  EUR        100,000     

4.63%, 04/15/2020 (3)

    123,536   
   

Sprint Communications, Inc.

 
  $        90,000     

9.00%, 11/15/2018 (2)

    102,403   
   

Sprint Corp.

 
    110,000     

7.25%, 09/15/2021

    110,412   
   

Syniverse Holdings, Inc.

 
    86,000     

9.13%, 01/15/2019

    80,840   
   

T-Mobile USA, Inc.

 
    230,000     

6.46%, 04/28/2019

    237,475   
    70,000     

6.63%, 11/15/2020

    73,062   
    215,000     

6.63%, 04/28/2021

    226,825   
   

UPCB Finance V Ltd.

 
    150,000     

7.25%, 11/15/2021 (2)

    162,937   
   

Wind Acquisition Finance S.A.

 
  EUR        100,000     

4.00%, 07/15/2020 (2)

    113,707   
   

Windstream Corp.

 
  $        50,000     

7.75%, 10/15/2020

    51,375   
     

 

 

 
        1,874,660   
     

 

 

 
   

Total Corporate Bonds
(cost $27,006,750)

  $ 25,894,036   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 6.8%  
            Argentina - 0.1%      
   

Argentine Republic Government International Bond

 
    179,000     

8.75%, 06/02/2017 (7)

  $ 174,525   
     

 

 

 
            Brazil - 0.6%      
   

Brazil Minas SPE via State of Minas Gerais

 
    200,000     

5.33%, 02/15/2028 (3)

    196,000   
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        597,434     

6.00%, 08/15/2016 (8)

    196,581   
    1,373,050     

6.00%, 05/15/2019 (8)

    453,111   
     

 

 

 
        845,692   
     

 

 

 
            Colombia - 0.3%      
   

Colombian TES

 
  COP        392,088,254     

3.00%, 03/25/2033 (8)

    145,182   
    237,675,970     

3.50%, 03/10/2021 (8)

    103,065   
    283,100,000     

5.00%, 11/21/2018

    118,134   
   

Empresa de Telecomunicaciones de Bogota

 
    270,000,000     

7.00%, 01/17/2023 (3)

    107,909   
     

 

 

 
        474,290   
     

 

 

 
            Costa Rica - 0.1%      
   

Costa Rica Government International Bond

 
  CRC        51,950,000     

9.20%, 03/27/2019 (2)

    98,616   
     

 

 

 
            Dominican Republic - 0.2%      
   

Dominican Republic International Bond

 
  $        140,000     

5.50%, 01/27/2025 (2)

    144,550   
    134,000     

5.50%, 01/27/2025 (3)

    138,355   
     

 

 

 
        282,905   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 6.8% - (continued)  
            El Salvador - 0.1%      
   

El Salvador Government International Bond

 
  $        142,000     

5.88%, 01/30/2025 (3)

  $ 141,112   
     

 

 

 
            Gabon - 0.1%      
   

Gabonese Republic

 
    200,000     

6.38%, 12/12/2024 (3)

    201,900   
     

 

 

 
            Hungary - 0.2%      
   

Hungary Government International Bond

 
    200,000     

4.00%, 03/25/2019

    208,750   
    75,000     

6.25%, 01/29/2020

    85,764   
     

 

 

 
        294,514   
     

 

 

 
            Indonesia - 0.5%      
   

Indonesia Government International Bond

 
    454,000     

6.63%, 02/17/2037 (3)

    551,043   
   

Indonesia Treasury Bond

 
  IDR        2,414,000,000     

8.38%, 03/15/2024

    194,144   
     

 

 

 
        745,187   
     

 

 

 
            Mexico - 1.4%      
   

Mexican Bonos

 
  MXN        8,938,900     

5.00%, 12/11/2019

    576,958   
   

Mexican Udibonos

 
    5,395,621     

4.00%, 11/15/2040 (8)

    386,236   
   

Mexico Government International Bond

 
  EUR        650,000     

3.00%, 03/06/2045

    738,976   
    180,000     

4.00%, 03/15/2115

    201,911   
  GBP        100,000     

5.63%, 03/19/2114

    159,998   
     

 

 

 
        2,064,079   
     

 

 

 
            Montenegro - 0.1%      
   

Montenegro Government International Bond

 
  EUR        165,000     

3.88%, 03/18/2020 (2)

    180,768   
     

 

 

 
            Panama - 0.1%      
   

Panama Government International Bond

 
  $        100,000     

9.38%, 04/01/2029

    152,125   
     

 

 

 
            Peru - 0.2%      
   

Peruvian Government International Bond

 
    10,000     

5.63%, 11/18/2050

    12,025   
    75,000     

6.55%, 03/14/2037

    99,281   
    61,000     

8.75%, 11/21/2033

    96,228   
     

 

 

 
        207,534   
     

 

 

 
            Romania - 0.3%      
   

Romania Government Bond

 
  RON        450,000     

5.85%, 04/26/2023

    135,563   
   

Romanian Government International Bond

 
  EUR        232,000     

2.88%, 10/28/2024 (3)

    279,062   
     

 

 

 
        414,625   
     

 

 

 
            Russia - 0.7%      
   

Russian Federal Bond - OFZ

 
  RUB        11,100,000     

7.50%, 02/27/2019

    193,404   
   

Russian Foreign Bond - Eurobond

 
  $        500,000     

7.50%, 03/31/2030 (3)

    584,865   
    181,000     

12.75%, 06/24/2028 (3)

    285,980   
     

 

 

 
        1,064,249   
     

 

 

 
            South Africa - 0.5%      
   

South Africa Government Bond

 
  ZAR        4,200,000     

7.75%, 02/28/2023

    352,558   
    1,870,000     

8.00%, 01/31/2030

    152,005   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  97  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 6.8% - (continued)  
            South Africa - 0.5% - (continued)      
   

South Africa Government International Bond

 
  $        200,000     

5.88%, 09/16/2025

  $ 227,900   
     

 

 

 
        732,463   
     

 

 

 
            Turkey - 0.7%      
   

Turkey Government Bond

 
  TRY        570,964     

2.50%, 05/04/2016 (8)

    213,102   
    508,000     

9.00%, 01/27/2016

    188,461   
   

Turkey Government International Bond

 
  $        200,000     

5.75%, 03/22/2024

    220,408   
    146,000     

7.00%, 03/11/2019

    165,024   
    135,000     

7.38%, 02/05/2025

    165,881   
     

 

 

 
        952,876   
     

 

 

 
            Uruguay - 0.6%      
   

Uruguay Government International Bond

 
  UYU        16,574,531     

4.25%, 04/05/2027 (8)

    622,869   
    3,850,592     

4.38%, 12/15/2028 (8)

    146,125   
  $        45,000     

4.50%, 08/14/2024

    48,375   
     

 

 

 
        817,369   
     

 

 

 
   

Total Foreign Government Obligations
(cost $10,007,478)

  $ 9,844,829   
     

 

 

 
MUNICIPAL BONDS - 0.3%      
            General - 0.3%      
   

Puerto Rico Commonwealth Gov’t Employees Retirement System

 
    905,000     

6.15%, 07/01/2038

  $ 340,515   
    300,000     

6.20%, 07/01/2039

    112,878   
    120,000     

6.55%, 07/01/2058

    45,150   
     

 

 

 
   

Total Municipal Bonds
(cost $671,813)

  $ 498,543   
     

 

 

 
SENIOR FLOATING RATE INTERESTS - 26.5% (9)      
            Aerospace/Defense - 0.2%      
   

Transdigm, Inc.

 
    322,563     

3.75%,06/04/2021

  $ 323,066   
     

 

 

 
            Auto Manufacturers - 0.6%      
   

Chrysler Group LLC

 
    816,517     

3.50%,05/24/2017

    817,333   
     

 

 

 
            Auto Parts & Equipment - 0.1%      
   

MPG Holdco I Inc.

 
    191,624     

4.25%,10/20/2021

    191,624   
     

 

 

 
            Beverages - 0.2%      
   

Charger OpCo B.V.

 
    265,000     

3.50%,07/23/2021

    265,829   
     

 

 

 
            Biotechnology - 0.3%      
   

PQ Corp.

 
    395,949     

4.00%,08/07/2017

    396,005   
     

 

 

 
            Chemicals - 0.8%      
   

Ferro Corp.

 
    223,875     

4.00%,07/31/2021

    223,035   
   

Ineos U.S. Finance LLC

 
    395,984     

3.75%,05/04/2018

    396,530   
   

Nexeo Solutions LLC

 
    296,954     

5.00%,09/08/2017

    292,871   
   

Solenis International L.P. Co.

 
    223,875     

4.25%,07/31/2021

    224,715   
     

 

 

 
        1,137,151   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 26.5% (9) - (continued)      
            Coal - 0.5%      
   

American Energy - Marcellus LLC

 
  $        375,000     

5.25%,08/04/2020

  $ 308,749   
   

Arch Coal, Inc.

 
    519,037     

6.25%,05/16/2018

    385,883   
     

 

 

 
        694,632   
     

 

 

 
            Commercial Services - 1.8%      
   

Acosta Holdco, Inc.

 
    283,575     

5.00%,09/26/2021

    286,646   
   

Brickman Group Ltd.

 
    724,511     

4.00%,12/18/2020

    725,170   
   

Interactive Data Corp.

 
    506,175     

4.75%,05/02/2021

    509,182   
   

ServiceMaster Co.

 
    346,487     

4.25%,07/01/2021

    347,478   
   

Vantiv Holding LLC

 
    671,218     

3.75%,06/13/2021

    673,527   
     

 

 

 
        2,542,003   
     

 

 

 
            Distribution/Wholesale - 0.2%      
   

Swift Transportation Co.

 
    222,750     

3.75%,06/09/2021

    223,474   
     

 

 

 
            Diversified Financial Services - 0.6%      
   

Delos Finance S.a.r.l.

 
    345,000     

3.50%,03/06/2021

    345,677   
   

Ipreo Holdings LLC

 
    159,200     

4.00%,08/06/2021

    158,961   
   

Samson Investment Co.

 
    410,000     

5.00%,09/25/2018

    195,160   
   

Walter Investment Management Corp.

 
    196,998     

4.75%,12/19/2020$

    187,969   
     

 

 

 
        887,767   
     

 

 

 
            Electric - 1.5%      
   

EFS Cogen Holdings I LLC

 
    276,118     

3.75%, 12/17/2020

    277,499   
   

Energy Future Intermediate Holding Co. LLC

 
    315,000     

4.25%, 06/19/2016

    316,707   
   

LA Frontera Generation LLC

 
    188,902     

4.50%, 09/30/2020

    189,258   
   

NRG Energy, Inc.

 
    395,960     

2.75%, 07/02/2018

    394,617   
   

Seadrill Partners Finco LLC

 
    920,677     

4.00%, 02/21/2021

    752,653   
   

TXU Energy

 
    253,960     

3.75%, 05/05/2016

    255,167   
     

 

 

 
        2,185,901   
     

 

 

 
            Electronics - 0.5%      
   

CDW LLC

 
    569,696     

3.25%, 04/29/2020

    568,915   
   

Ceridian LLC

 
    152,781     

4.50%, 09/15/2020

    152,017   
     

 

 

 
        720,932   
     

 

 

 
            Entertainment - 0.1%      
   

Scientific Games Corp.

 
    179,550     

6.00%, 10/01/2021

    181,345   
     

 

 

 
            Environmental Control - 0.2%      
   

US Ecology, Inc.

 
    337,610     

3.75%, 06/17/2021

    338,238   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

98

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 26.5% (9) - (continued)      
            Food - 1.4%      
   

Albertson’s Holdings LLC

 
  $        440,000     

5.50%, 08/25/2021

  $ 444,462   
   

Burger King

 
    208,146     

4.50%, 12/12/2021

    210,417   
   

Dole Food Co., Inc.

 
    329,188     

4.50%, 11/01/2018

    330,972   
   

Roundy’s Supermarkets, Inc.

 
    367,361     

5.75%, 03/03/2021

    354,242   
   

U.S. Foods, Inc.

 
    742,443     

4.50%, 03/31/2019

    744,611   
     

 

 

 
        2,084,704   
     

 

 

 
            Healthcare-Services - 2.9%      
   

Amsurg Corp.

 
    610,388     

3.75%, 07/16/2021

    612,524   
   

Catalent Pharma Solutions, Inc

 
    461,442     

4.25%, 05/20/2021

    465,221   
   

DaVita HealthCare Partners, Inc.

 
    898,213     

3.50%, 06/24/2021

    900,575   
   

HCA, Inc.

 
    395,980     

3.03%, 05/01/2018

    396,610   
   

Healogics, Inc.

 
    159,200     

5.25%, 07/01/2021

    160,096   
   

IMS Health, Inc.

 
    386,074     

3.50%, 03/17/2021

    385,881   
   

MPH Acquisition Holdings LLC

 
    611,241     

3.75%, 03/31/2021

    610,727   
   

Opal Acquisition, Inc.

 
    207,193     

5.00%, 11/27/2020

    207,452   
   

Ortho-Clinical Diagnostics, Inc.

 
    238,200     

4.75%, 06/30/2021

    237,366   
   

STHI Holding Corp.

 
    104,475     

4.50%, 08/06/2021

    104,301   
   

Surgery Center Holdings, Inc.

 
    144,638     

5.25%, 11/03/2020

    145,722   
     

 

 

 
        4,226,475   
     

 

 

 
            Insurance - 0.5%      
   

Asurion LLC

 
    247,482     

4.25%,07/08/2020

    247,984   
   

Sedgwick Claims Management Services, Inc.

 
    460,350     

3.75%,03/01/2021

    457,307   
     

 

 

 
        705,291   
     

 

 

 
            Internet - 0.5%      
   

ION Trading Technologies S.a.r.l.

 
    240,000     

7.25%,06/10/2022

    237,799   
   

Lands’ End, Inc.

 
    400,650     

4.25%,04/04/2021

    394,140   
   

Zayo Group LLC

 
    128,678     

4.00%,05/06/2021

    128,678   
     

 

 

 
        760,617   
     

 

 

 
            Leisure Time - 1.3%      
   

Aristocrat Leisure Ltd.

 
    288,192     

4.75%,10/20/2021

    290,570   
   

Delta 2 (LUX) S.a.r.l.

 
    1,311,781     

4.75%, 07/30/2021

    1,312,817   
    200,000     

7.75%, 07/31/2022

    200,188   
     

 

 

 
        1,803,575   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 26.5% (9) - (continued)      
            Lodging - 0.2%      
   

Hilton Worldwide Finance LLC

 
  $        204,741     

3.50%,10/26/2020

  $ 205,433   
     

 

 

 
            Machinery-Contruction & Mining - 0.4%      
   

American Rock Salt Holdings LLC

 
    486,325     

4.75%,05/20/2021

    489,000   
   

Neff Rental LLC

 
    104,130     

7.25%,06/09/2021

    102,438   
     

 

 

 
        591,438   
     

 

 

 
            Machinery-Diversified - 0.8%      
   

Gardner Denver, Inc.

 
    403,850     

4.25%,07/30/2020

    393,794   
   

Gates Global, Inc.

 
    781,075     

4.25%,07/05/2021

    781,075   
     

 

 

 
        1,174,869   
     

 

 

 
            Media - 0.6%      
   

Advantage Sales & Marketing, Inc.

 
    547,250     

4.25%,07/23/2021

    548,892   
   

Charter Communications Operating LLC

 
    296,977     

3.00%,01/03/2021

    296,110   
     

 

 

 
        845,002   
     

 

 

 
            Mining - 0.3%      
   

FMG Resources August 2006 Pty Ltd.

 
    494,975     

3.75%,06/30/2019

    446,334   
     

 

 

 
            Miscellaneous Manufacturing - 0.7%      
   

Husky Injection Molding Systems, Ltd.

 
    216,390     

4.25%, 06/30/2021

    217,698   
    131,368     

7.25%, 06/30/2022

    129,726   
   

Sram LLC

 
    666,823     

4.02%,04/10/2020

    665,709   
     

 

 

 
        1,013,133   
     

 

 

 
            Oil & Gas - 0.2%      
   

Drillships Ocean Ventures, Inc.

 
    188,575     

5.50%,07/25/2021

    163,059   
   

Energy Transfer Equity L.P.

 
    105,000     

4.00%,12/02/2019

    105,246   
   

Templar Energy LLC

 
    100,000     

8.50%,11/25/2020

    75,375   
     

 

 

 
        343,680   
     

 

 

 
            Oil & Gas Services - 0.5%      
   

Pacific Drilling S.A.

 
    442,125     

4.50%,06/03/2018

    388,831   
   

Paragon Offshore Finance Co.

 
    462,675     

3.75%,07/18/2021

    344,693   
     

 

 

 
        733,524   
     

 

 

 
            Packaging & Containers - 1.2%      
   

Berry Plastics Group, Inc.

 
    444,710     

3.75%,01/06/2021

    445,915   
   

BWAY Holding Co., Inc.

 
    223,313     

5.50%,08/14/2020

    225,546   
   

CD&R Millenium Holding Co.

 
    99,500     

4.50%,07/31/2021

    99,542   
   

Exopack Holdings S.A.

 
    350,563     

5.25%,05/08/2019

    352,462   
   

Reynolds Group Holdings, Inc.

 
    628,773     

4.50%,12/01/2018

    634,746   
   

Tekni-Plex, Inc.

 
    35,000     

0.00%,04/01/2022 (10)

    35,077   
     

 

 

 
        1,793,288   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

99

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 26.5% (9) - (continued)      
            Pharmaceuticals - 0.8%      
   

PRA Holdings, Inc.

 
  $        806,279     

4.50%,09/23/2020

  $ 810,915   
   

Valeant Pharmaceuticals International, Inc.

 
    320,000     

4.00%,04/01/2022

    322,073   
     

 

 

 
        1,132,988   
     

 

 

 
            Pipelines - 0.3%      
   

EP Energy LLC

 
    425,625     

4.50%,04/30/2019

    425,093   
     

 

 

 
            Retail - 2.3%      
   

Aristocrat Leisure Ltd.

 
    295,000     

5.00%,03/11/2022

    298,490   
   

BJ’s Wholesale Club, Inc.

 
    445,489     

4.50%,09/26/2019

    447,774   
   

Dollar Tree, Inc.

 
    185,000     

4.25%,03/09/2022

    187,290   
   

Michaels Stores, Inc.

 
    764,225     

4.00%,01/28/2020

    767,939   
   

Neiman Marcus Group, Inc.

 
    793,985     

4.25%,10/25/2020

    795,541   
   

Rite Aid Corp.

 
    275,000     

4.88%,06/21/2021

    275,855   
   

Serta Simmons Holdings LLC

 
    476,405     

4.25%,10/01/2019

    479,183   
   

Staples, Inc.

 
    125,000     

0.00%,04/07/2021 (10)

    125,423   
     

 

 

 
        3,377,495   
     

 

 

 
            Semiconductors - 0.4%      
   

Freescale Semiconductor, Inc.

 
    494,987     

4.25%,02/28/2020

    496,844   
     

 

 

 
            Software - 1.7%      
   

Emdeon, Inc.

 
    357,394     

3.75%,11/02/2018

    358,363   
   

First Data Corp.

 
    1,240,000     

3.68%,03/24/2018

    1,242,331   
   

Kronos, Inc.

 
    889,854     

4.50%,10/30/2019

    894,464   
     

 

 

 
        2,495,158   
     

 

 

 
            Telecommunications - 1.7%      
   

Altice Financing S.A.

 
    692,982     

5.50%, 07/02/2019

    703,952   
   

Gray Television, Inc.

 
    151,351     

3.75%, 06/10/2021

    151,682   
   

Intelsat Jackson Holdings S.A.

 
    400,000     

3.75%, 06/30/2019

    399,500   
   

Level 3 Financing, Inc.

 
    400,000     

4.00%, 08/01/2019

    400,748   
    235,000     

4.50%, 01/31/2022

    235,148   
   

Univision Communications, Inc.

 
    272,170     

4.00%, 03/01/2020

    272,255   
   

West Corp.

 
    219,708     

3.25%, 06/30/2018

    219,983   
     

 

 

 
        2,383,268   
     

 

 

 
            Trucking & Leasing - 0.2%      
   

Consolidated Container Co.

 
    321,701     

5.00%, 07/03/2019

    320,575   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $38,968,348)

  $ 38,264,084   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 8.1%      
            FHLMC - 1.3%      
  $        200,000     

3.00%, 05/01/2045 (11)(12)

  $ 203,125   
    700,000     

3.50%, 05/01/2045 (11)(12)

    732,307   
    400,000     

3.50%, 06/01/2045 (11)(12)

    417,508   
    400,000     

5.00%, 05/01/2045 (11)(12)

    444,329   
     

 

 

 
        1,797,269   
     

 

 

 
            FNMA - 6.4%      
    600,000     

3.00%, 05/01/2030 (11)(12)

    627,862   
    200,000     

3.50%, 05/01/2030 (11)(12)

    212,313   
    3,700,000     

3.50%, 05/01/2045 (11)(12)

    3,876,328   
    100,000     

4.00%, 05/01/2030 (11)(12)

    105,547   
    2,000,000     

4.00%, 05/01/2045 (11)(12)

    2,137,149   
    1,500,000     

4.50%, 05/01/2045 (11)(12)

    1,632,539   
    400,000     

5.00%, 05/01/2045 (11)(12)

    445,509   
    200,000     

5.50%, 05/01/2045 (11)(12)

    226,419   
     

 

 

 
        9,263,666   
     

 

 

 
            GNMA - 0.4%      
    100,000     

3.00%, 05/01/2045 (11)(12)

    102,735   
    100,000     

3.50%, 05/01/2045 (11)(12)

    105,492   
    200,000     

4.00%, 05/01/2045 (11)(12)

    213,711   
    200,000     

4.00%, 06/01/2045 (11)(12)

    213,445   
     

 

 

 
        635,383   
     

 

 

 
   

Total U.S. Government Agencies
(cost $11,714,059)

  $ 11,696,318   
     

 

 

 
COMMON STOCKS - 29.2%    
            Automobiles & Components - 0.2%      
    6,914     

General Motors Co.

    242,405   
    1,700     

Kia Motors Corp.

    78,339   
     

 

 

 
        320,744   
     

 

 

 
            Banks - 0.8%      
    105,609     

Bank of China Ltd. Class H

    72,364   
    68,600     

Bank of Communications Co., Ltd. Class H

    70,319   
    793     

Canadian Imperial Bank of Commerce

    63,677   
    11,966     

HSBC Holdings plc

    119,534   
    11,544     

Industrial Bank of Korea

    158,613   
    16,084     

National Bank of Canada

    649,892   
     

 

 

 
        1,134,399   
     

 

 

 
            Capital Goods - 0.6%      
    25,792     

Asahi Glass Co., Ltd.

    173,579   
    29,425     

Mitsui & Co., Ltd.

    411,542   
    13,983     

Sumitomo Corp.

    165,107   
    1,277     

Vinci S.A.

    78,325   
     

 

 

 
        828,553   
     

 

 

 
            Commercial & Professional Services - 0.2%  
    31,987     

Dai Nippon Printing Co., Ltd.

    330,445   
     

 

 

 
            Consumer Durables & Apparel - 0.4%      
    8,487     

Coach, Inc.

    324,288   
    5,700     

Panasonic Corp.

    81,646   
    26,751     

Ruentex Industries Ltd.

    65,681   
    17,400     

Yue Yuen Industrial Holdings Ltd.

    66,115   
     

 

 

 
        537,730   
     

 

 

 
            Consumer Services - 0.2%      
    193,337     

SJM Holdings Ltd.

    245,123   
     

 

 

 
            Energy - 7.1%      
    6,225     

Antero Midstream Partners L.P.

    155,625   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  100  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 29.2% - (continued)      
          Energy - 7.1% - (continued)      
    16,822     

Boardwalk Pipeline Partners L.P.

  $ 294,553   
    3,850     

Buckeye Partners L.P.

    314,083   
    500     

Columbia Pipeline Partners L.P. (13)

    13,525   
    5,304     

CVR Energy, Inc.

    212,372   
    4,310     

Delek Logistics Partners L.P.

    181,236   
    10,240     

Enbridge Energy Partners L.P.

    380,314   
    4,000     

Enbridge, Inc.

    209,068   
    13,280     

Energy Transfer Partners L.P.

    767,318   
    11,673     

Ensco plc Class A

    318,439   
    32,957     

Enterprise Products Partners L.P.

    1,128,777   
    4,381     

HollyFrontier Corp.

    169,895   
    7,591     

Kinder Morgan, Inc.

    326,033   
    5,909     

Magellan Midstream Partners L.P.

    493,401   
    600     

Marathon Petroleum Corp.

    59,142   
    2,852     

MarkWest Energy Partners L.P.

    192,396   
    7,011     

Memorial Production Partners L.P.

    125,637   
    3,143     

NGL Energy Partners L.P.

    91,964   
    3,120     

NuStar GP Holdings LLC

    121,836   
    6,930     

ONEOK Partners L.P.

    290,714   
    3,655     

Pembina Pipeline Corp.

    127,206   
    7,021     

Plains All American Pipeline L.P.

    351,822   
    20,358     

Repsol S.A.

    419,659   
    5,615     

Rice Midstream Partners L.P.

    85,067   
    4,918     

Royal Dutch Shell plc Class B

    157,454   
    5,800     

SemGroup Corp. Class A

    488,302   
    11,494     

Sunoco Logistics Partners L.P.

    509,874   
    6,947     

Targa Resources Partners L.P.

    315,672   
    2,724     

Teekay Corp.

    135,410   
    600     

Tesoro Corp.

    51,498   
    4,000     

TransCanada Corp.

    185,661   
    16,370     

Transocean Ltd.

    293,249   
    36,722     

Veresen, Inc.

    552,124   
    5,215     

Viper Energy Partners L.P.

    107,481   
    4,790     

Williams Cos., Inc.

    245,200   
    16,130     

Woodside Petroleum Ltd.

    444,820   
     

 

 

 
        10,316,827   
     

 

 

 
          Food & Staples Retailing - 0.4%      
    7,200     

Koninklijke Ahold N.V.

    139,494   
    144,200     

Metcash Ltd.

    150,525   
    3,100     

Wal-Mart Stores, Inc.

    241,955   
     

 

 

 
        531,974   
     

 

 

 
          Food, Beverage & Tobacco - 0.2%      
    5,017     

British American Tobacco Malaysia Bhd

    94,179   
    100     

Bunge Ltd.

    8,637   
    3,045     

Imperial Tobacco Group plc

    148,689   
    2,172     

Pilgrim’s Pride Corp.

    53,648   
     

 

 

 
        305,153   
     

 

 

 
          Health Care Equipment & Services - 0.1%  
    263     

Aetna, Inc.

    28,107   
    863     

Anthem, Inc.

    130,252   
     

 

 

 
        158,359   
     

 

 

 
          Insurance - 1.4%      
    5,442     

Ageas

    204,468   
    595     

Baloise Holding AG

    77,431   
    16,540     

CNP Assurances

    297,281   
    12,500     

Direct Line Insurance Group plc

    61,026   
    1,104     

Powszechny Zaklad Ubezpieczen S.A.

    143,989   
    2,163     

SCOR SE

    77,850   

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 29.2% - (continued)      
          Insurance - 1.4% - (continued)      
    7,514     

Swiss Re AG

  $ 666,547   
    4,118     

Talanx AG (13)

    130,996   
    29,900     

UnipolSai S.p.A.

    83,671   
    881     

Zurich Insurance Group AG

    271,924   
     

 

 

 
        2,015,183   
     

 

 

 
          Materials - 0.6%      
    200     

CF Industries Holdings, Inc.

    57,494   
    11,597     

Kumba Iron Ore Ltd.

    156,419   
    1,600     

LyondellBasell Industries N.V. Class A

    165,632   
    28,583     

Severstal PAO GDR

    316,700   
    8,400     

UPM-Kymmene Oyj

    151,994   
     

 

 

 
        848,239   
     

 

 

 
          Media - 0.9%      
    3,583     

Comcast Corp. Class A

    206,954   
    3,527     

Liberty Global plc Class A (13)

    183,898   
    6,135     

ProSiebenSat.1 Media AG

    313,665   
    3,095     

Reed Elsevier N.V. (14)

    74,643   
    4,785     

SES S.A.

    165,918   
    15,012     

Sky plc

    247,517   
    5,531     

Vivendi S.A.

    138,655   
     

 

 

 
        1,331,250   
     

 

 

 
          Pharmaceuticals, Biotechnology & Life Sciences - 1.6%  
    2,200     

AbbVie, Inc.

    142,252   
    983     

Amgen, Inc.

    155,226   
    9,483     

Eli Lilly & Co.

    681,543   
    7,133     

Johnson & Johnson

    707,594   
    4,299     

Otsuka Holdings Co., Ltd.

    135,696   
    2,000     

Shionogi & Co., Ltd.

    65,929   
    7,003     

Teva Pharmaceutical Industries Ltd. ADR

    423,121   
    392     

United Therapeutics Corp. (13)

    62,598   
     

 

 

 
        2,373,959   
     

 

 

 
          Real Estate - 4.5%      
    33,154     

American Capital Agency Corp. REIT

    684,133   
    70,707     

Annaly Capital Management, Inc. REIT

    712,020   
    46,495     

Chimera Investment Corp. REIT

    706,259   
    10,047     

Communications Sales & Leasing, Inc. REIT (13)

    302,220   
    1,361,680     

Evergrande Real Estate Group Ltd.

    1,287,590   
    131,600     

GPT Group REIT

    463,796   
    10,900     

Hongkong Land Holdings Ltd.

    87,200   
    18,918     

Intu Properties plc REIT

    99,244   
    6,604     

Lend Lease Group

    83,443   
    19,101     

Link REIT

    118,483   
    83,895     

MFA Financial, Inc. REIT

    651,864   
    42,410     

New World Development Co., Ltd.

    56,251   
    218,393     

Sino Land Co., Ltd.

    384,232   
    1,479     

Sun Hung Kai Properties Ltd.

    24,564   
    10,845     

Swire Pacific Ltd. Class A

    146,269   
    59,391     

Two Harbors Investment Corp. REIT

    623,606   
    24,692     

Wheelock & Co., Ltd.

    139,039   
     

 

 

 
        6,570,213   
     

 

 

 
          Retailing - 0.8%      
    2,100     

Best Buy Co., Inc.

    72,765   
    2,800     

Foot Locker, Inc.

    166,460   
    3,286     

Gap, Inc.

    130,257   
    9,104     

Kohl’s Corp.

    652,302   
    800     

Macy’s, Inc.

    51,704   
    684     

Williams-Sonoma, Inc.

    50,294   
     

 

 

 
        1,123,782   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

101

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 29.2% - (continued)      
          Semiconductors & Semiconductor Equipment - 0.1%  
    4,202     

Intel Corp.

  $ 136,775   
    138,600     

United Microelectronics Corp.

    66,406   
     

 

 

 
        203,181   
     

 

 

 
          Software & Services - 0.5%      
    1,800     

Computer Sciences Corp.

    116,010   
    180     

Constellation Software, Inc.

    70,568   
    9,997     

Microsoft Corp.

    486,254   
     

 

 

 
        672,832   
     

 

 

 
          Technology Hardware & Equipment - 1.1%  
    4,425     

Apple, Inc.

    553,789   
    58,374     

Asustek Computer, Inc.

    618,434   
    38,800     

Gigabyte Technology Co., Ltd.

    47,080   
    4,100     

Hewlett-Packard Co.

    135,177   
    2,490     

Qualcomm, Inc.

    169,320   
     

 

 

 
        1,523,800   
     

 

 

 
          Telecommunication Services - 4.1%  
    16,187     

AT&T, Inc.

    560,718   
    3,120     

BCE, Inc.

    137,549   
    17,544     

Belgacom S.A.

    653,423   
    540,001     

Bezeq The Israeli Telecommunication Corp. Ltd.

    1,022,785   
    17,825     

CenturyLink, Inc.

    640,987   
    30,914     

DiGi.Com Bhd

    52,116   
    5,959     

Elisa Oyj

    182,556   
    24,664     

Far EasTone Telecommunications Co., Ltd.

    58,805   
    7,489     

Frontier Communications Co.

    51,374   
    14,983     

Hellenic Telecommunications Organization S.A. (13)

    136,194   
    28,352     

Koninklijke KPN N.V.

    105,122   
    346     

Nippon Telegraph & Telephone Corp.

    23,364   
    8,815     

NTT DoCoMo, Inc.

    156,135   
    2,800     

Orange S.A.

    46,120   
    357,200     

Safaricom Ltd.

    65,701   
    448     

SK Telecom Co., Ltd.

    120,052   
    183     

Swisscom AG

    108,795   
    30,600     

Telefonica Brasil S.A. (Preference Shares)

    507,808   
    447,900     

Telekomunikasi Indonesia Persero Tbk PT

    90,082   
    11,455     

Telenor ASA

    258,713   
    19,092     

TeliaSonera AB

    118,697   
    10,100     

Telstra Corp. Ltd.

    49,649   
    3,400     

TELUS Corp.

    117,598   
    61,800     

Total Access Communication PCL NVDR

    162,342   
    2,080     

Verizon Communications, Inc.

    104,915   
    91,300     

Vodafone Group plc

    321,669   
    8,373     

Windstream Holdings, Inc.

    97,793   
     

 

 

 
        5,951,062   
     

 

 

 
          Transportation - 0.8%  
    5,244     

Abertis Infraestructuras S.A.

    96,631   
    4,494     

Air New Zealand Ltd.

    9,235   
    108     

AP Moeller - Maersk AS Class B

    214,335   
    95,876     

Hutchison Port Holdings Trust UNIT

    64,598   
    324,067     

Hutchison Port Holdings Trust NPV UNIT

    218,344   
    5,100     

Japan Airlines Co., Ltd.

    170,045   
    6,000     

Singapore Airlines Ltd.

    55,285   
    7,318     

West Japan Railway Co.

    405,296   
     

 

 

 
        1,233,769   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 29.2% - (continued)      
            Utilities - 2.6%  
    17,162     

CEZ AS

  $ 445,872   
    26,000     

Cheung Kong Infrastructure Holdings Ltd.

    220,256   
    10,412     

Cia de Saneamento Basico do Estado de Sao Paulo ADR

    61,327   
    1,874     

Consolidated Edison, Inc.

    115,345   
    1,355     

DTE Energy Co.

    107,899   
    1,857     

Duke Energy Corp.

    144,047   
    8,215     

Electrica, S.A. GDR (2)(13)

    98,580   
    7,372     

Entergy Corp.

    568,971   
    221     

Exelon Corp.

    7,518   
    2,500     

Fortum Oyj

    49,368   
    5,299     

GDF Suez

    107,815   
    190,000     

Guangdong Investment Ltd.

    283,321   
    16,771     

Iberdrola S.A.

    112,253   
    11,775     

National Grid plc

    158,413   
    1,330     

NextEra Energy, Inc.

    134,237   
    3,053     

PG&E Corp.

    161,565   
    10,953     

PGE Polska Grupa Energetyczna S.A.

    63,025   
    3,801     

Pinnacle West Capital Corp.

    232,621   
    2,089     

Southern Co.

    92,543   
    7,545     

SSE plc

    178,769   
    8,472     

Suez Environnement Co.

    172,789   
    3,555     

UGI Corp.

    123,750   
    3,000     

Veolia Environnement S.A.

    63,480   
     

 

 

 
        3,703,764   
     

 

 

 
   

Total Common Stocks
(cost $41,275,767)

  $ 42,260,341   
     

 

 

 
CONVERTIBLE BONDS - 0.0%      
            Home Builders - 0.0%      
   

M/I Homes, Inc.

 
  $        20,000     

3.00%, 03/01/2018

  $ 19,775   
     

 

 

 
            Oil & Gas - 0.0%      
   

Cobalt International Energy, Inc.

 
    30,000     

2.63%, 12/01/2019

    23,025   
     

 

 

 
   

Total Convertible Bonds
(cost $47,756)

    42,800   
     

 

 

 
RIGHTS - 0.0%      
            Insurance - 0.0%      
    59,800     

UnipolSai S.p.A. (13)(14)(15)

  $   
     

 

 

 
            Software & Services - 0.0%      
    180     

Constellation Software, Inc. (13)

    54   
     

 

 

 
   

Total Rights
(cost $52)

  $ 54   
     

 

 

 
   

Total Long-Term Investments
(cost $145,045,117)

  $ 143,507,488   
     

 

 

 
SHORT-TERM INVESTMENTS - 7.0%      
            Other Investment Pools & Funds - 7.0%      
    10,049,422     

Federated Prime Obligations Fund

    10,049,422   
     

 

 

 
   

Total Short-Term Investments
(cost $10,049,422)

    10,049,422   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

102

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

    Total Investments Excluding
Purchased Options
(cost $155,094,539)
    106.2    $ 153,556,910   
    Total Purchased Options
(cost $75,561)
    0.0    $ 38,119   
        

 

 

 
    Total Investments
(cost $155,170,100) ^
    106.2    $ 153,595,029   
    Other Assets and Liabilities     (6.2 )%       (8,986,382
     

 

 

    

 

 

 
    Total Net Assets     100.0    $ 144,608,647   
     

 

 

    

 

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $155,150,554 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 3,520,130   

Unrealized Depreciation

     (5,075,655
  

 

 

 

Net Unrealized (Depreciation)

   $ (1,555,525
  

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

103

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

(1)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $7,194,463, which represents 5.0% of total net assets.

 

(3)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $11,270,386, which represents 8.0% of total net assets.

 

(4)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(5)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(6)  This security may pay interest in additional principal instead of cash.

 

(7)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(8)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(9)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(10)  All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

 

(11)  Represents or includes a TBA transaction.

 

(12)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $11,714,059 at April 30, 2015.

 

(13)  Non-income producing.

 

(14)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

03/2015

     3,095       Reed Elsevier N.V.    $     75,097   

02/2015

     29,900       UnipolSai S.p.A. Rights        

02/2015

     29,900       UnipolSai S.p.A. Rights        
        

 

 

 
         $ 75,097   
        

 

 

 

 

     At April 30, 2015, the aggregate value of these securities were $74,643, which represents 0.1% of total net assets.

 

(15)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $0, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
     Market
Value*
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                       

Calls

                       

BRL Call/USD Put

   JPM      2.42 BRL per USD         09/28/15       BRL      600,000       $ 83       $ 4,273       $ (4,190

BRL Call/USD Put

   BOA      2.97 BRL per USD         06/02/15       BRL      990,000         4,549         7,690         (3,141

CNY Call/USD Put

   DEUT      6.15 CNY per USD         05/07/15       CNY      10,640,000         767         3,633         (2,866

EUR Call/USD Put

   BOA      1.14 EUR per USD         08/20/15       EUR      255,000         4,856         8,188         (3,332

 

The accompanying notes are an integral part of these financial statements.

 

 

  104  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Option Contracts Outstanding at April 30, 2015 - (continued)  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
     Market
Value*
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts: - (continued)

                       

Calls - (continued)

                       

EUR Call/USD Put

   BNP      1.12 EUR per USD         06/02/15       EUR      320,000       $ 6,996       $ 5,102       $ 1,894   

EUR Call/USD Put

   BOA      1.27 EUR per USD         01/07/16       EUR      1,845,000         4,756         27,515         (22,759

HKD Call/USD Put

   GSC      7.75 HKD per USD         03/01/16       HKD      3,145,000         1,330         1,375         (45

MYR Call/USD Put

   GSC      3.65 MYR per USD         05/22/15       MYR      1,040,000         6,678         6,170         508   

RUB Call/USD Put

   BOA      51.49 RUB per USD         05/14/15       RUB      1,000,000         475         644         (169

RUB Call/USD Put

   GSC      36.97 RUB per USD         09/02/15       RUB      9,000,000         267         3,254         (2,987

TRY Call/USD Put

   BOA      2.72 TRY per USD         06/29/15       TRY      770,000         7,362         7,716         (354
              

 

 

    

 

 

    

 

 

    

 

 

 

Total Calls

                 29,605,000       $ 38,119       $ 75,560       $ (37,441
              

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased option contracts

                 29,605,000       $     38,119       $     75,560       $     (37,441
              

 

 

    

 

 

    

 

 

    

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

                    

Calls

                    

Credit Default Swaption ITRAXX.EUR.23

   BOA      262.50 EUR         05/20/15       EUR      (6,400,000   $ (25,477   $ (68,189   $ 42,712   

Credit Default Swaption ITRAXX.EUR.23

   CSI      287.50 EUR         05/20/15       EUR      (6,400,000     (80,788     (68,720         (12,068
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

                 (12,800,000   $     (106,265   $     (136,909   $ 30,644   
              

 

 

   

 

 

   

 

 

   

 

 

 

Written swaption contracts:

                    

Puts

                    

Credit Default Swaption ITRAXX.EUR.23

   BOA      262.50 EUR         05/20/15       EUR      (6,400,000   $ (69,721   $ (54,210   $ (15,511

Credit Default Swaption ITRAXX.EUR.23

   CSI      287.50 EUR         05/20/15       EUR      (6,400,000     (34,376     (54,976     20,600   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                 (12,800,000   $ (104,097   $ (109,186   $ 5,089   
              

 

 

   

 

 

   

 

 

   

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Long Gilt Future

     10         06/26/2015       $     1,824,784       $     1,822,368       $ (2,416

U.S. Treasury 2-Year Note Future

     4         06/30/2015         876,632         877,063         431   

U.S. Treasury 5-Year Note Future

     75         06/30/2015         9,058,806         9,009,961         (48,845

U.S. Treasury CME Ultra Long Term Bond Future

     4         06/19/2015         645,892         658,000         12,108   

U.S. Treasury Long Bond Future

     29         06/19/2015         4,701,225         4,628,219         (73,006
              

 

 

 

Total

               $     (111,728)   
              

 

 

 

Short position contracts:

              

90-Day Euro Future

     30         12/14/2015       $ 7,455,313       $ 7,454,250       $ 1,063   

Euro-Bund Future

     5         06/08/2015         875,802         870,531         5,271   

U.S. Treasury 10-Year Note Future

     45         06/19/2015         5,774,356         5,776,875         (2,519
              

 

 

 

Total

               $ 3,815   
              

 

 

 

Total futures contracts

               $ (107,913
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

105

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

                 

Buy protection:

                 

ABX.HE.AAA.06-1

  JPM     USD        2,749      (0.18%)     07/25/45      $ 69      $      $ 52      $ (17

ABX.HE.AAA.06-1

  JPM     USD        8,248      (0.18%)     07/25/45        202               157        (45

ABX.HE.AAA.06-2

  JPM     USD        357,728      (0.11%)     05/25/46        70,778               67,922        (2,856

ABX.HE.AAA.07

  MSC     USD        429,090      (0.09%)     08/25/37        108,996               101,683        (7,313

ABX.HE.AAA.07-1

  MSC     USD        147,116      (0.09%)     08/25/37        35,485               34,863        (622

ABX.HE.AAA.07-1

  GSC     USD        93,991      (0.09%)     08/25/37        23,344               22,274        (1,070

ABX.HE.AAA.07-1

  MSC     USD        310,579      (0.09%)     08/25/37        74,930               73,599        (1,331

ABX.HE.AAA.07-1

  JPM     USD        81,731      (0.09%)     08/25/37        21,055               19,368        (1,687

ABX.HE.AAA.07-1

  GSC     USD        281,973      (0.09%)     08/25/37        69,673               66,821        (2,852

CMBX.NA.A.7

  JPM     USD        170,000      (2.00%)     01/17/47               (3,522     (775     2,747   

CMBX.NA.A.7

  JPM     USD        40,000      (2.00%)     01/17/47               (77     (182     (105

CMBX.NA.AA.2

  CSI     USD        570,421      (0.15%)     03/15/49        156,811               182,520        25,709   

CMBX.NA.AA.2

  CSI     USD        84,856      (0.15%)     03/15/49        26,198               27,152        954   

CMBX.NA.AA.2

  CSI     USD        193,283      (0.15%)     03/15/49        61,278               61,846        568   

CMBX.NA.AA.7

  CSI     USD        630,000      (1.50%)     01/17/47               (5,237     (2,148     3,089   

CMBX.NA.AA.7

  CSI     USD        85,000      (1.50%)     01/17/47        462               (290     (752

CMBX.NA.AA.7

  CSI     USD        290,000      (1.50%)     01/17/47               (70     (988     (918

CMBX.NA.AA.7

  CSI     USD        145,000      (1.50%)     01/17/47        677               (494     (1,171

CMBX.NA.AJ.1

  JPM     USD        85,000      (0.84%)     10/12/52        1,645               1,287        (358

CMBX.NA.AJ.1

  JPM     USD        255,000      (0.84%)     10/12/52        5,395               3,862        (1,533

CMBX.NA.AJ.2

  JPM     USD        238,001      (1.09%)     03/15/49        17,871               19,771        1,900   

CMBX.NA.AJ.2

  JPM     USD        79,334      (1.09%)     03/15/49        6,670               6,590        (80

CMBX.NA.AJ.4

  JPM     USD        647,437      (0.96%)     02/17/51        115,795               118,337        2,542   

CMBX.NA.AJ.4

  GSC     USD        129,525      (0.96%)     02/17/51        21,941               23,675        1,734   

CMBX.NA.AJ.4

  GSC     USD        84,689      (0.96%)     02/17/51        14,607               15,479        872   

CMBX.NA.AJ.4

  GSC     USD        49,827      (0.96%)     02/17/51        8,376               9,108        732   

CMBX.NA.AJ.4

  CSI     USD        174,310      (0.96%)     02/17/51        32,262               31,860        (402

CMBX.NA.AJ.4

  CSI     USD        59,763      (0.96%)     02/17/51        11,786               10,924        (862

CMBX.NA.AJ.4

  CSI     USD        109,566      (0.96%)     02/17/51        20,934               20,026        (908

CMBX.NA.AJ.4

  MSC     USD        84,665      (0.96%)     02/17/51        16,898               15,475        (1,423

CMBX.NA.AJ.4

  MSC     USD        84,665      (0.96%)     02/17/51        16,899               15,475        (1,424

CMBX.NA.AJ.4

  CSI     USD        393,443      (0.96%)     02/17/51        76,678               71,912        (4,766

CMBX.NA.AJ.4

  JPM     USD        403,403      (0.96%)     02/17/51        79,465               73,733        (5,732

CMBX.NA.AM.2

  JPM     USD        345,000      (0.50%)     03/15/49        2,523               1,547        (976

CMBX.NA.AM.2

  JPM     USD        1,025,000      (0.50%)     03/15/49        12,943               4,597        (8,346

CMBX.NA.AM.4

  CSI     USD        50,000      (0.50%)     02/17/51        1,410               1,122        (288

CMBX.NA.AM.4

  JPM     USD        155,000      (0.50%)     02/17/51        6,770               3,478        (3,292

CMBX.NA.AS.6

  CSI     USD        385,000      (1.00%)     05/11/63        664               (189     (853

CMBX.NA.AS.6

  CSI     USD        130,000      (1.00%)     05/11/63        1,069               (64     (1,133

CMBX.NA.AS.7

  CSI     USD        190,000      (1.00%)     01/17/47        824               1,288        464   

CMBX.NA.AS.7

  CSI     USD        65,000      (1.00%)     01/17/47        1,044               441        (603

CMBX.NA.AS.7

  CSI     USD        250,000      (1.00%)     01/17/47        4,338               1,695        (2,643
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     1,128,765      $ (8,906   $ 1,104,809      $ (15,050
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

                 

CDX.EM.22

  BNP     USD        6,645,500      1.00%     12/20/19      $      $ (852,898   $ (708,349   $     144,549   

CDX.EMS.23

  CBK     USD        350,000      1.00%     06/20/20               (33,020     (31,016     2,004   

CMBX.BB.7

  CSI     USD        180,000      5.00%     01/17/47               (2,781     (1,572     1,209   

CMBX.NA.

  CSI     USD        205,000      0.50%     05/11/63               (4,622     (2,747     1,875   

CMBX.NA.A.2

  JPM     USD        32,425      0.25%     03/15/49               (21,068     (20,643     425   

CMBX.NA.A.2

  BOA     USD        97,275      0.25%     03/15/49               (55,495     (61,928     (6,433

CMBX.NA.AAA.6

  BCLY     USD        10,035,000      0.50%     05/11/63               (144,656     (134,486     10,170   

CMBX.NA.AAA.6

  CSI     USD        3,105,000      0.50%     05/11/63               (51,662     (41,612     10,050   

CMBX.NA.AAA.6

  MSC     USD        950,000      0.50%     05/11/63               (20,751     (12,732     8,019   

CMBX.NA.AAA.6

  CSI     USD        1,140,000      0.50%     05/11/63               (22,871     (15,278     7,593   

CMBX.NA.AAA.6

  CSI     USD        109,000      0.50%     05/11/63               (2,607     (1,461     1,146   

 

The accompanying notes are an integral part of these financial statements.

 

 

  106  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices: - (continued)

                 

Sell protection: - (continued)

                 

CMBX.NA.AAA.6

  BOA     USD        80,000      0.50%     05/11/63      $      $ (2,091   $ (1,073   $ 1,018   

CMBX.NA.AAA.6

  MSC     USD        499,000      0.50%     05/11/63               (7,317     (6,472     845   

CMBX.NA.BB.6

  CSI     USD        55,000      5.00%     10/17/57               (3,359     (3,089     270   

CMBX.NA.BB.6

  CSI     USD        505,000      5.00%     05/11/63        3,448               4,866        1,418   

CMBX.NA.BB.6

  CSI     USD        15,000      5.00%     05/11/63                      160        160   

CMBX.NA.BB.6

  CSI     USD        350,000      5.00%     05/11/63        5,948               3,372        (2,576

CMBX.NA.BB.6

  CSI     USD        540,000      5.00%     05/11/63        8,726               5,203        (3,523

CMBX.NA.BB.7

  JPM     USD        625,000      5.00%     01/17/47        581               (5,459     (6,040

CMBX.NA.BB.8

  BOA     USD        120,000      5.00%     10/17/57               (8,673     (6,739     1,934   

CMBX.NA.BB.8

  CSI     USD        40,000      5.00%     10/17/57               (2,914     (2,246     668   

CMBX.NA.BB.8

  CSI     USD        55,000      5.00%     10/17/57               (3,481     (3,088     393   

CMBX.NA.BB.8

  GSC     USD        55,000      5.00%     10/17/57               (2,906     (3,089     (183

CMBX.NA.BB.8

  GSC     USD        110,000      5.00%     10/17/57               (5,894     (6,192     (298

PrimeX.ARM.2

  JPM     USD        271,121      4.58%     12/25/37        8,646               11,458        2,812   

PrimeX.ARM.2

  JPM     USD        90,783      4.58%     12/25/37        2,778               3,825        1,047   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 30,127      $     (1,249,066   $     (1,040,387   $ 178,552   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

          $ 1,158,892      $ (1,257,972   $ 64,422      $ 163,502   
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Buy protection:

                 

Brazil (Federative Republic of)

  GSC     USD        115,000      (1.00%)/2.21%     12/20/19      $ 4,615      $      $ 5,929      $ 1,314   

Brazil (Federative Republic of)

  JPM     USD        100,000      (1.00%)/2.21%     12/20/19        4,708               5,156        448   

Russia (Federation of)

  GSC     USD        20,000      (1.00%)/3.51%     12/20/19        4,026               2,068        (1,958
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 13,349      $      $ 13,153      $ (196
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

  

           

Sell protection:

                 

Bank of America Corp.

  BCLY     USD        500,000      1.00%/0.51%     06/20/19      $ 6,921      $      $ 10,510      $ 3,589   

Bank of America Corp.

  GSC     USD        1,425,000      1.00%/0.55%     09/20/19        21,438               28,991        7,553   

Citigroup, Inc.

  GSC     USD        500,000      1.00%/0.61%     06/20/19        6,119               8,402        2,283   

Citigroup, Inc.

  GSC     USD        1,425,000      1.00%/0.66%     09/20/19        22,648               22,520        (128

Goldman Sachs Group, Inc.

  BCLY     USD        250,000      1.00%/0.72%     06/20/19        1,965               3,158        1,193   

Goldman Sachs Group, Inc.

  CSI     USD        725,000      1.00%/0.76%     09/20/19        9,997               8,288        (1,709

Morgan Stanley

  GSC     USD        250,000      1.00%/0.64%     06/20/19        2,860               3,895        1,035   

Morgan Stanley

  BCLY     USD        725,000      1.00%/0.68%     09/20/19        10,599               10,705        106   

Penerbangan Malaysia Bhd

  JPM     USD        100,000      1.00%/1.21%     06/20/20               (1,152     (936     216   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 82,547      $ (1,152   $ 95,533      $ 14,138   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 95,896      $ (1,152   $ 108,686      $ 13,942   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $ 1,254,788      $ (1,259,124   $ 173,108      $ 177,444   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

The accompanying notes are an integral part of these financial statements.

 

 

107

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost
Basis
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

           

Buy protection:

             

ITRAXX.EUR.23

  EUR     1,088,000        (1.00 %)    06/20/20   $ (23,037   $ (24,699   $ (1,662

ITRAXX.XOV.22

  EUR     2,513,000        (5.00 %)    12/20/19     (242,645     (290,077     (47,432
         

 

 

   

 

 

   

 

 

 

Total

          $ (265,682   $ (314,776   $ (49,094
         

 

 

   

 

 

   

 

 

 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.HY.23

  USD     98,000        5.00   12/20/19   $ 8,072      $ 8,579      $ 507   

CDX.NA.HY.24

  USD     14,505,000        5.00   06/20/20     1,112,750        1,113,851        1,101   

CDX.NA.IG.23

  USD     4,768,000        1.00   12/20/19     83,864        83,417        (447

CDX.NA.IG.24

  USD     135,000        1.00   06/20/20     2,461        2,540        79   

ITRAXX.XOV.23

  EUR     425,000        5.00   06/20/20     47,265        51,012        3,747   
         

 

 

   

 

 

   

 

 

 

Total

          $     1,254,412      $     1,259,399      $ 4,987   
         

 

 

   

 

 

   

 

 

 

Total

          $ 988,730      $ 944,623      $     (44,107
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counter-

  party

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

DEUT

   1.46% Fixed    CPURNSA      USD         2,460,000         03/02/17       $     —       $     —       $ 528      $ 528   

DEUT

   1.48% Fixed    CPURNSA      USD         1,145,000         03/02/17                         (156     (156

BCLY

   1.53% Fixed    CPURNSA      USD         1,211,000         03/03/17                         (1,164     (1,164

DEUT

   1.98% Fixed    CPURNSA      USD         1,835,000         04/02/25                         23,544        23,544   
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $       $       $     22,752      $     22,752   
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

   Counter-
party
   Notional
Amount
     Payments
received (paid) by
the Fund
    Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

JPM Corp EMBI

   JPM    USD      2,900,000         3M LIBOR - 1.25%        06/24/15       $     —       $     —       $     (121,757   $     (121,757

JPM EMBI Plus

   JPM    USD      9,750,000         (3M LIBOR + 0.63%     06/22/15                         294,763        294,763   
                

 

 

    

 

 

    

 

 

   

 

 

 

Total

                 $       $       $ 173,006      $ 173,006   
                

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/05/15       GSC    $ 50,107       $ 49,698       $ (409

BRL

   Buy      05/05/15       UBS      146,845         140,810         (6,035

BRL

   Buy      06/02/15       GSC      841,902         859,558         17,656   

BRL

   Sell      05/05/15       UBS      50,107         49,698         409   

BRL

   Sell      05/05/15       GSC      47,809         49,698         (1,889

BRL

   Sell      05/05/15       UBS      85,498         91,113         (5,615

BRL

   Sell      06/02/15       UBS      145,458         139,432         6,026   

CAD

   Buy      06/17/15       RBC      200,387         198,791         (1,596

CAD

   Sell      06/17/15       TDB      190,275         198,791         (8,516

CHF

   Sell      06/17/15       CSI      1,437,083         1,512,941         (75,858

 

The accompanying notes are an integral part of these financial statements.

 

 

  108  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

COP

   Buy      06/17/15       SCB    $ 63,491       $ 69,627       $ 6,136   

COP

   Buy      06/17/15       SSG      72,579         76,105         3,526   

COP

   Sell      06/17/15       BOA      32,776         36,113         (3,337

COP

   Sell      06/17/15       JPM      35,954         40,086         (4,132

COP

   Sell      06/17/15       UBS      62,003         68,254         (6,251

COP

   Sell      06/17/15       JPM      68,899         76,105         (7,206

COP

   Sell      06/17/15       SCB      207,817         230,594         (22,777

CZK

   Sell      06/17/15       BNP      144,843         146,957         (2,114

EUR

   Buy      05/04/15       DEUT      5,104         5,157         53   

EUR

   Buy      05/29/15       DEUT      1,050,537         1,086,216         35,679   

EUR

   Buy      06/17/15       BOA      380,024         387,628         7,604   

EUR

   Buy      06/17/15       BNP      318,414         325,833         7,419   

EUR

   Buy      06/17/15       BNP      144,156         146,063         1,907   

EUR

   Buy      06/17/15       NAB      8,505         8,989         484   

EUR

   Buy      06/17/15       RBS      7,420         7,865         445   

EUR

   Sell      05/29/15       DEUT      4,907,215         5,073,877         (166,662

EUR

   Sell      06/17/15       BCLY      97,749         101,120         (3,371

EUR

   Sell      06/17/15       UBS      140,227         144,939         (4,712

EUR

   Sell      06/17/15       RBC      183,462         193,252         (9,790

EUR

   Sell      06/17/15       BCLY      669,906         713,461         (43,555

EUR

   Sell      06/17/15       NAB          4,318,272             4,563,903         (245,631

EUR

   Sell      06/17/15       RBS      4,304,376         4,562,780             (258,404

EUR

   Sell      09/18/15       SSG      194,018         168,774         25,244   

EUR

   Sell      03/15/17       BOA      290,269         309,532         (19,263

EUR

   Sell      03/15/17       BOA      924,421         949,233         (24,812

GBP

   Sell      05/29/15       GSC      330,574         337,627         (7,053

GBP

   Sell      06/17/15       BOA      172,452         171,862         590   

GBP

   Sell      06/17/15       BCLY      366,064         372,879         (6,815

GBP

   Sell      06/17/15       RBS      365,974         372,878         (6,904

HKD

   Sell      03/03/16       GSC      203,116         203,230         (114

IDR

   Buy      06/17/15       DEUT      46,799         46,887         88   

IDR

   Sell      06/17/15       UBS      140,743         144,554         (3,811

INR

   Buy      06/17/15       BCLY      193,384         189,497         (3,887

INR

   Buy      06/17/15       JPM      1,317,658         1,311,706         (5,952

KZT

   Sell      05/18/15       JPM      103,640         109,870         (6,230

MXN

   Buy      05/04/15       JPM      168,995         168,097         (898

MXN

   Buy      06/17/15       JPM      122,409         120,819         (1,590

MXN

   Buy      06/17/15       JPM      122,534         120,818         (1,716

MXN

   Buy      06/17/15       GSC      414,437         403,378         (11,059

MXN

   Sell      06/17/15       GSC      125,538         122,118         3,420   

MXN

   Sell      06/17/15       BOA      143,799         141,474         2,325   

MXN

   Sell      06/17/15       RBC      370,114         375,186         (5,072

MXN

   Sell      06/17/15       MSC      370,091         375,252         (5,161

MYR

   Buy      06/17/15       DEUT      78,378         81,079         2,701   

NOK

   Sell      06/17/15       CBK      260,942         279,706         (18,764

RON

   Buy      06/17/15       BNP      332,419         355,006         22,587   

RON

   Sell      06/17/15       CBK      332,360         355,005         (22,645

RSD

   Buy      09/18/15       SSG      181,397         165,434         (15,963

RUB

   Buy      05/15/15       CSI      318,886         313,935         (4,951

RUB

   Sell      05/15/15       JPM      312,212         313,935         (1,723

TRY

   Sell      06/17/15       JPM      110,371         108,809         1,562   

TRY

   Sell      06/17/15       JPM      170,315         169,300         1,015   

TRY

   Sell      06/17/15       JPM      101,281         103,277         (1,996

UYU

   Sell      06/17/15       HSBC      373,467         375,140         (1,673

ZAR

   Buy      05/04/15       JPM      32,959         33,710         751   

ZAR

   Buy      06/17/15       DEUT      178,661         175,958         (2,703

ZAR

   Sell      06/17/15       SSG      155,587         157,279         (1,692

ZAR

   Sell      06/17/15       BCLY      171,479         175,958         (4,479
                 

 

 

 

Total

                  $     (917,159
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

109

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

CME

   Chicago Mercantile Exchange

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CNY

   Chinese Yuan

COP

   Colombian Peso

CRC

   Costa Rican Colon

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

INR

   Indian Rupee

KZT

   Kazakhstani Tenge

MUR

   Mauritian Rupee

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NOK

   Norwegian Krone

RON

   New Romanian Leu

RSD

   Serbian Dinar

RUB

   Russian Ruble

TRY

   Turkish Lira

USD

   United States Dollar

UYU

   Uruguayan Peso

ZAR

   South African Rand
Index Abbreviations:

ABX.HE

   Markit Asset Backed Security Home Equity

CDX.EM

   Credit Derivatives Emerging Markets

CMBX.NA

   Markit Commercial Mortgage Backed North American

CME

   Chicago Mercantile Index

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted

EMBI

   Emerging Markets Bond Index

ITRAXX.EUR

   Markit i Traxx - Europe

ITRAXX.XOV

   Markit i Traxx Index - Europe Crossover

MSCI

   Morgan Stanley Capital International

PrimeX.ARM

   Markit PrimeX Adjustable Rate Mortgage Backed Security
Other Abbreviations:

ADR

   American Depositary Receipt

CME

   Chicago Mercantile Index

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GDR

   Global Depositary Receipt

GNMA

   Government National Mortgage Association

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

NVDR

   Non-Voting Depositary Receipt

OTC

   Over-the-Counter

REIT

   Real Estate Investment Trust

TBA

   To Be Announced
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  110  

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 15,006,483      $      $ 15,006,483      $   

Corporate Bonds

     25,894,036               25,894,036          

Foreign Government Obligations

     9,844,829               9,844,829          

Municipal Bonds

     498,543               498,543          

Senior Floating Rate Interests

     38,264,084               38,264,084          

U.S. Government Agencies

     11,696,318               11,696,318          

Common Stocks

        

Automobiles & Components

     320,744        242,405        78,339          

Banks

     1,134,399        713,569        420,830          

Capital Goods

     828,553               828,553          

Commercial & Professional Services

     330,445               330,445          

Consumer Durables & Apparel

     537,730        324,288        213,442          

Consumer Services

     245,123               245,123          

Energy

     10,316,827        9,001,645        1,315,182          

Food & Staples Retailing

     531,974        241,955        290,019          

Food, Beverage & Tobacco

     305,153        62,285        242,868          

Health Care Equipment & Services

     158,359        158,359                 

Insurance

     2,015,183               2,015,183          

Materials

     848,239        539,826        308,413          

Media

     1,331,250        390,852        940,398          

Pharmaceuticals, Biotechnology & Life Sciences

     2,373,959        2,172,334        201,625          

Real Estate

     6,570,213        3,767,302        2,802,911          

Retailing

     1,123,782        1,123,782                 

Semiconductors & Semiconductor Equipment

     203,181        136,775        66,406          

Software & Services

     672,832        672,832                 

Technology Hardware & Equipment

     1,523,800        858,286        665,514          

Telecommunication Services

     5,951,062        2,284,443        3,666,619          

Transportation

     1,233,769               1,233,769          

Utilities

     3,703,764        1,749,823        1,953,941          

Convertible Bonds

     42,800               42,800          

Rights

     54        54                 

Short-Term Investments

     10,049,422        10,049,422                 

Purchased Options

     38,119               38,119          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     153,595,029      $     34,490,237      $     119,104,792      $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 147,627      $      $ 147,627      $   

Futures Contracts (2)

     18,873        18,873                 

Swaps - Credit Default (2)

     262,087               262,087          

Swaps - Interest Rate (2)

     24,072               24,072          

Swaps - Total Return (2)

     294,763               294,763          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 747,422      $ 18,873      $ 728,549      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (1,064,786   $      $ (1,064,786   $   

Futures Contracts (2)

     (126,786     (126,786              

Swaps - Credit Default (2)

     (128,750            (128,750       

Swaps - Interest Rate (2)

     (1,320            (1,320       

Swaps - Total Return (2)

     (121,757            (121,757       

Written Options

     (210,362            (210,362       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (1,653,761   $ (126,786   $ (1,526,975   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $410,906 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

The accompanying notes are an integral part of these financial statements.

 

 

111

 


Hartford Multi-Asset Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset &
Commercial
Mortgage
Backed
Securities
    Corporate
Bonds
    Swaps     Total  

Beginning balance

   $ 5,135,231      $     220,000      $ 9,175      $ 5,364,406   

Purchases

     317,436                      317,436   

Sales

         (1,064,322                   (1,064,322

Accrued discounts/(premiums)

     36,927                      36,927   

Total realized gain/(loss)

     67,025                      67,025   

Net change in unrealized appreciation/depreciation

     (4,782                   (4,782

Transfers into Level 3 (1)

                            

Transfers out of Level 3 (1)

     (4,487,515         (220,000         (9,175         (4,716,690
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $      $      $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a)  Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b)  Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c)  Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  112  

 


 

 

[This page is intentionally left blank]

 

 

 

 

 

113

 


Hartford Funds – Mixed-Asset Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Balanced Fund
    The Hartford
Balanced
Income Fund
     The Hartford
Checks and
Balances Fund
 

Assets:

       

Investments in securities, at market value

   $ 770,251,508      $ 6,389,145,219       $   

Investments in affiliated investment companies, at market value

                    1,968,884,252   

Cash

     41,750        404,106           

Cash collateral

            4,837,096           

Foreign currency on deposit with custodian

            50,950           

Unrealized appreciation on foreign currency contracts

            199,179           

Unrealized appreciation on OTC swap contracts

            1,272,878           

Receivables:

       

Investment securities sold

     10,114,918        35,602,851         160,378   

Fund shares sold

     2,412,148        28,033,394         3,983,888   

Dividends and interest

     2,323,480        39,627,798         1,502,828   

Variation margin on financial derivative instruments

            518,803           

OTC swap premiums paid

            425,423           

Other assets

     61,062        213,223         78,448   
  

 

 

   

 

 

    

 

 

 

Total assets

     785,204,866        6,500,330,920         1,974,609,794   
  

 

 

   

 

 

    

 

 

 

Liabilities:

       

Unrealized depreciation on foreign currency contracts

            1,466,303           

Bank overdraft

                      

Cash collateral

            915,000           

Unrealized depreciation on OTC swap contracts

            38,423           

TBA sale commitments, at market value

     3,726,188                  

Payables:

       

Investment securities purchased

     5,991,759        69,878,855         1,502,828   

Fund shares redeemed

     953,113        10,496,525         2,129,764   

Investment management fees

     424,296        2,946,461           

Variation margin on financial derivative instruments

     15,449                  

Distribution fees

     254,795        2,464,981         681,634   

Accrued expenses

     144,999        548,780         251,851   

Written options

                      

OTC Swap premiums received

            1,914,539           
  

 

 

   

 

 

    

 

 

 

Total liabilities

     11,510,599        90,669,867         4,566,077   
  

 

 

   

 

 

    

 

 

 

Net assets

   $ 773,694,267      $ 6,409,661,053       $ 1,970,043,717   
  

 

 

   

 

 

    

 

 

 

Summary of Net Assets:

       

Capital stock and paid-in-capital

   $ 715,048,401      $ 5,824,445,200       $ 1,612,485,200   

Undistributed (distributions in excess of) net investment income

     525,792        12,073,097         (50,424,625

Accumulated net realized gain (loss)

         (110,591,536     42,054,560         170,430,766   

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     168,711,610        531,088,196         237,552,376   
  

 

 

   

 

 

    

 

 

 

Net assets

   $ 773,694,267      $     6,409,661,053       $     1,970,043,717   
  

 

 

   

 

 

    

 

 

 

Shares authorized

     910,000,000        1,450,000,000         1,000,000,000   
  

 

 

   

 

 

    

 

 

 

Par value

   $ 0.001      $ 0.001       $ 0.001   
  

 

 

   

 

 

    

 

 

 

Class A:     Net asset value per share

   $ 21.22      $ 13.68       $ 11.01   
  

 

 

   

 

 

    

 

 

 

                 Maximum offering price per share

   $ 22.46      $ 14.48       $ 11.65   
  

 

 

   

 

 

    

 

 

 

                 Shares outstanding

     28,776,936        189,307,635         132,405,089   
  

 

 

   

 

 

    

 

 

 

                 Net Assets

   $ 610,603,543      $ 2,589,196,531       $ 1,458,193,814   
  

 

 

   

 

 

    

 

 

 

Class B:     Net asset value per share

   $ 21.10      $ 13.64       $ 10.95   
  

 

 

   

 

 

    

 

 

 

                 Shares outstanding

     324,134        1,144,198         9,399,255   
  

 

 

   

 

 

    

 

 

 

                 Net Assets

   $ 6,838,004      $ 15,608,934       $ 102,965,266   
  

 

 

   

 

 

    

 

 

 

Class C:     Net asset value per share

   $ 21.21      $ 13.51       $ 10.95   
  

 

 

   

 

 

    

 

 

 

                 Shares outstanding

     7,081,721        169,653,991         32,181,615   
  

 

 

   

 

 

    

 

 

 

                 Net Assets

   $ 150,227,379      $ 2,292,024,702       $ 352,467,333   
  

 

 

   

 

 

    

 

 

 

Class I:      Net asset value per share

   $ 21.23      $ 13.68       $ 11.03   
  

 

 

   

 

 

    

 

 

 

                 Shares outstanding

     5,012        93,027,507         3,304,405   
  

 

 

   

 

 

    

 

 

 

                 Net Assets

   $ 106,398      $ 1,272,559,056       $ 36,435,303   
  

 

 

   

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

114

 


Hartford Funds – Mixed-Asset Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Global All-Asset
Fund
    Hartford
Multi-Asset
Income Fund
 
 
$ 429,595,506      $ 153,595,029   
           
         51,339   
  9,383,129        3,387,741   
  141,720        22,306   
  3,656,495        147,627   
  2,059,664        575,488   
 
  26,412,436        1,736,495   
  116,071        369,047   
  1,190,306        921,084   
         29,908   
  2,650        1,254,788   
  127,169        93,135   

 

 

   

 

 

 
  472,685,146        162,183,987   

 

 

   

 

 

 
 
  7,449,220        1,064,786   
  2,592,871          
         715,000   
  395,907        202,286   
  18,353,019          
 
  27,873,678        14,005,981   
  937,987        2,717   
  331,198        88,526   
  134,590        5,915   
  135,474        7,423   
  128,989        13,220   
  78,025        210,362   
  1,376,797        1,259,124   

 

 

   

 

 

 
  59,787,755        17,575,340   

 

 

   

 

 

 
$ 412,897,391      $ 144,608,647   

 

 

   

 

 

 
 
$ 380,318,572      $ 148,512,266   
  (3,851,235     (58,136
  15,930,073        (1,608,917
 
 
    
20,499,981
 
  
    (2,236,566

 

 

   

 

 

 
$     412,897,391      $     144,608,647   

 

 

   

 

 

 
  700,000,000        500,000,000   

 

 

   

 

 

 
$ 0.001      $ 0.001   

 

 

   

 

 

 
$ 11.36      $ 9.86   

 

 

   

 

 

 
$ 12.02      $ 10.32   

 

 

   

 

 

 
  16,385,732        1,167,443   

 

 

   

 

 

 
$ 186,141,854      $ 11,508,195   

 

 

   

 

 

 
$      $   

 

 

   

 

 

 
           

 

 

   

 

 

 
$      $   

 

 

   

 

 

 
$ 11.29      $ 9.85   

 

 

   

 

 

 
  10,179,645        479,149   

 

 

   

 

 

 
$ 114,970,423      $ 4,721,412   

 

 

   

 

 

 
$ 11.38      $ 9.86   

 

 

   

 

 

 
  6,494,277        280,714   

 

 

   

 

 

 
$ 73,892,335      $ 2,768,084   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

115

 


Hartford Funds – Mixed-Asset Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Balanced Fund
     The Hartford
Balanced
Income Fund
     The Hartford
Checks and
Balances Fund
 

Class R3:   Net asset value per share

   $ 21.43       $ 13.72       $ 10.98   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     42,786         8,944,918         1,209,219   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 917,107       $ 122,727,305       $ 13,277,433   
  

 

 

    

 

 

    

 

 

 

Class R4:   Net asset value per share

   $ 21.47       $ 13.72       $ 10.99   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     40,803         4,641,583         376,514   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 875,909       $ 63,702,266       $ 4,137,600   
  

 

 

    

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 21.49       $ 13.74       $ 11.02   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     7,676         1,605,307         232,834   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 164,935       $ 22,055,333       $ 2,566,968   
  

 

 

    

 

 

    

 

 

 

Class R6:   Net asset value per share

   $       $ 13.80       $   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

             2,755           
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $       $ 38,009       $   
  

 

 

    

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 21.50       $ 13.80       $   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     184,197         2,300,544           
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 3,960,992       $ 31,748,917       $   
  

 

 

    

 

 

    

 

 

 

Cost of investments

   $     601,417,079       $     5,861,837,043       $   

Cost of investments in affiliated investment companies

   $       $       $     1,731,331,876   

Cost of foreign currency on deposit with custodian

   $       $ 46,790       $   

Proceeds of TBA sale commitments

   $ 3,721,016       $       $   

Proceeds of written option contracts

   $       $       $   

 

The accompanying notes are an integral part of these financial statements.

 

 

  116  

 


Hartford Funds – Mixed-Asset Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Global All-Asset
Fund
    Hartford
Multi-Asset
Income Fund
 
$ 11.39      $ 9.86   

 

 

   

 

 

 
  229,557        207,586   

 

 

   

 

 

 
$ 2,614,553      $ 2,046,955   

 

 

   

 

 

 
$ 11.48      $ 9.86   

 

 

   

 

 

 
  131,413        208,194   

 

 

   

 

 

 
$ 1,509,235      $ 2,053,087   

 

 

   

 

 

 
$ 11.38      $ 9.86   

 

 

   

 

 

 
  250,393        208,579   

 

 

   

 

 

 
$ 2,848,796      $ 2,056,976   

 

 

   

 

 

 
$      $   

 

 

   

 

 

 
           

 

 

   

 

 

 
$      $   

 

 

   

 

 

 
$ 11.37      $ 9.86   

 

 

   

 

 

 
  2,718,306        12,109,303   

 

 

   

 

 

 
$ 30,920,195      $ 119,453,938   

 

 

   

 

 

 
$     407,026,023      $     155,170,100   
$      $   
$ 141,428      $ 22,297   
$ 18,357,426      $   
$ 80,630      $ 246,095   

 

The accompanying notes are an integral part of these financial statements.

 

 

  117  

 


Hartford Funds – Mixed-Asset Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Balanced
Fund
    The Hartford
Balanced Income
Fund
    The Hartford
Checks and
Balances Fund
 

Investment Income:

      

Dividends

   $ 5,393,862      $ 43,300,809      $   

Dividends from affiliated investment companies

                   16,782,531   

Interest

     3,098,073        60,156,908          

Other Income

            16,708          

Less: Foreign tax withheld

     (60,312     (773,601       
  

 

 

   

 

 

   

 

 

 

Total investment income, net

     8,431,623        102,700,824        16,782,531   
  

 

 

   

 

 

   

 

 

 

Expenses:

      

Investment management fees

     2,494,248        16,658,698          

Administrative services fees

      

Class R3

     668        112,101        11,505   

Class R4

     610        43,236        3,012   

Class R5

     80        10,211        773   

Transfer agent fees

      

Class A

     473,863        1,098,445        679,230   

Class B

     21,147        17,381        73,916   

Class C

     67,014        731,834        154,618   

Class I

     2        468,234        30,107   

Class R3

     183        1,360        670   

Class R4

     94        629        147   

Class R5

     23        445        7   

Class R6

            41          

Class Y

     17        198          

Distribution fees

      

Class A

     745,442        3,045,444        1,774,508   

Class B

     39,909        21,659        525,959   

Class C

     688,908        10,294,132        1,699,329   

Class R3

     1,669        280,250        28,762   

Class R4

     1,017        72,060        5,020   

Custodian fees

     3,223        23,058        50   

Registration and filing fees

     42,829        161,654        70,813   

Accounting services fees

     67,197        565,599        115,031   

Board of Directors’ fees

     9,322        61,717        24,646   

Audit fees

     11,554        25,500        11,009   

Other expenses

     80,825        310,110        138,487   
  

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     4,749,844        34,003,996        5,347,599   

Expense waivers

                     

Management fee waivers

     (524     (64,541       

Transfer agent fee waivers

     (9,172     (41       

Commission Recapture

     (231     (8,122       

Custodian fee offset

            (35       
  

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (9,927     (72,739       
  

 

 

   

 

 

   

 

 

 

Total expenses, net

     4,739,917        33,931,257        5,347,599   
  

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     3,691,706        68,769,567        11,434,932   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions:

      

Capital gain distributions received from affiliated investment companies

                   212,949,641   

Net realized gain (loss) on investments

     25,590,667        49,585,413          

Less: Foreign taxes paid on realized capital gains

                     

Net realized gain (loss) on investments in affiliated investment companies

                   22,814,546   

Net realized gain (loss) on purchased options contracts

            (3,238       

Net realized gain (loss) on futures contracts

     (47,276     (6,135,954       

Net realized gain (loss) on written options contracts

            13,283          

Net realized gain (loss) on swap contracts

            196,599          

Net realized gain (loss) on foreign currency contracts

     (3,377     3,937,959          

Net realized gain (loss) on other foreign currency transactions

     (4,350     (193,959       
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Foreign Currency Transactions

     25,535,664        47,400,103        235,764,187   
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net unrealized appreciation (depreciation) of investments

     (1,391,563     22,680,664          

Net unrealized appreciation (depreciation) of investments in affiliated investment companies

                   (178,848,778

Net unrealized appreciation (depreciation) of purchased options contracts

            2,625          

Net unrealized appreciation (depreciation) of future contracts

     (150,959     211,199          

Net unrealized appreciation (depreciation) of written option contracts

            (287       

Net unrealized appreciation (depreciation) of swap contracts

            942,249          

Net unrealized appreciation (depreciation) of foreign currency contracts

            (1,790,016       

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     4,290        113,559          
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     (1,538,232     22,159,993        (178,848,778
  

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     23,997,432        69,560,096        56,915,409   
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     27,689,138      $     138,329,663      $      68,350,341   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

118

 


Hartford Funds – Mixed-Asset Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

The Hartford
Global All-
Asset Fund
    Hartford Multi-
Asset Income
Fund
 
 
$     2,800,294      $     889,266   
           
  1,132,149        2,557,899   
           
  (207,686     (36,419

 

 

   

 

 

 
  3,724,757        3,410,746   

 

 

   

 

 

 
 
  2,113,108        527,415   
 
  2,653        1,985   
  1,066        1,492   
  1,365        996   
 
  125,427        3,687   
           
  69,076        881   
  48,810        138   
  253          
  148          
  8          
  242        929   
 
  239,095        13,348   
           
  598,082        22,254   
  6,632        4,962   
  1,777        2,487   
  33,473        13,686   
  45,503        57,160   
  54,920        14,064   
  8,133        1,340   
  22,811        5,206   
  48,412        7,835   

 

 

   

 

 

 
  3,420,994        679,865   
  (4,600     (190
  (387,471     (45,372
           
  (2,205     (219
  (1     (14

 

 

   

 

 

 
  (394,277     (45,795

 

 

   

 

 

 
  3,026,717        634,070   

 

 

   

 

 

 
  698,040        2,776,676   

 

 

   

 

 

 
 
           
  4,896,346        (3,587,189
         (616
           
  319,992        (52,619
  276,674        64,263   
  (48,737     998,048   
  (2,771,226     (955,016
  13,745,507        2,150,559   
  305,068        (17,194

 

 

   

 

 

 
  16,723,624        (1,399,764

 

 

   

 

 

 
 
  3,981,927        2,068,624   
           
  (781,910     (34,803
  1,161,815        (128,968
  (106,881     (7,776
  2,265,858        485,685   
  (7,586,138         (1,064,971
  235,775        12,945   

 

 

   

 

 

 

 

(829,554

    1,330,736   

 

 

   

 

 

 
  15,894,070        (69,028

 

 

   

 

 

 
$ 16,592,110      $ 2,707,648   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

119

 


Hartford Funds – Mixed-Asset Funds

Statements of Changes in Net Assets

 

 

 

     The Hartford Balanced Fund  
     For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
 

Operations:

    

Net investment income (loss)

   $ 3,691,706      $ 7,214,117   

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     25,535,664        38,180,091   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     (1,538,232     29,629,387   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     27,689,138        75,023,595   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (3,386,241     (6,595,653

Class B

     (7,045     (25,554

Class C

     (338,191     (590,255

Class I

              

Class R3

     (2,885     (5,620

Class R4

     (4,476     (7,804

Class R5

     (1,164     (2,261

Class R6

              

Class Y

     (22,706     (32,922
  

 

 

   

 

 

 
     (3,762,708     (7,260,069
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

              

Class B

              

Class C

              

Class I

              

Class R3

              

Class R4

              

Class R5

              

Class R6

              

Class Y

              
  

 

 

   

 

 

 

Total from net realized gain on investments

              
  

 

 

   

 

 

 

Total distributions

     (3,762,708     (7,260,069
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     75,175,539        84,880,150   

Issued on reinvestment of distributions

     3,648,219        7,046,307   

Redeemed

     (53,364,162     (93,563,115
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     25,459,596        (1,636,658
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     49,386,026        66,126,868   
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     724,308,241        658,181,373   
  

 

 

   

 

 

 

End of period

   $     773,694,267      $     724,308,241   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 525,792      $ 596,794   
  

 

 

   

 

 

 

 

(1)  Commencement of operations.

 

The accompanying notes are an integral part of these financial statements.

 

 

120

 


Hartford Funds – Mixed-Asset Funds

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford Balanced
Income Fund
    The Hartford Checks and
Balances Fund
    The Hartford Global
All-Asset Fund
    Hartford Multi-Asset
Income Fund
 
For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Period Ended
October 31, 2014 (1)
 
             
$ 68,769,567      $ 108,674,124      $ 11,434,932      $ 19,953,430      $ 698,040      $ 4,133,610      $ 2,776,676      $ 2,160,060   
  47,400,103        82,953,697        235,764,187        151,943,058        16,723,624        57,575,072        (1,399,764     588,279   
  22,159,993        198,539,903        (178,848,778     19,284,025        (829,554     (38,352,485     1,330,736        (3,567,302

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  138,329,663        390,167,724        68,350,341        191,180,513        16,592,110        23,356,197        2,707,648        (818,963

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
  (29,189,456     (51,721,744     (47,246,330     (24,672,132     (5,409,754     (2,704,725     (294,609     (98,432
  (196,722     (479,637     (3,138,897     (443,598                            
  (17,860,130     (28,397,748     (10,058,649     (1,765,260     (2,460,431     (370,503     (105,834     (33,289
  (15,348,813     (20,830,596     (1,217,052     (688,932     (3,050,630     (1,718,741     (69,463     (31,210
  (1,172,743     (1,786,782     (342,854     (125,743     (57,126     (28,788     (51,456     (23,079
  (687,072     (1,230,910     (131,827     (33,985     (40,973     (21,773     (54,521     (26,050
  (277,743     (316,629     (11,461     (3,374     (85,423     (35,688     (56,468     (27,934
  (162                                                 
  (378,561     (518,335                   (982,763     (642,010     (3,391,432     (1,543,370

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (65,111,402     (105,282,381     (62,147,070     (27,733,024     (12,087,100     (5,522,228     (4,023,783     (1,783,364

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  (36,282,177     (25,647,127     (106,653,341     (98,304,773     (22,409,257     (854,844              
  (283,645     (279,460     (8,153,285     (8,577,511                            
  (30,309,242     (18,534,090     (25,529,841     (22,727,205     (14,348,050     (490,133              
  (16,546,445     (8,332,041     (2,661,651     (2,161,520     (11,542,413     (434,529              
  (1,648,138     (848,995     (799,514     (784,103     (351,411     (11,534              
  (822,583     (514,703     (300,849     (112,736     (154,842     (6,062              
  (312,399     (125,353     (12,362     (10,499     (305,906     (8,631              
  (151                                                 
  (393,249     (206,431                   (3,542,170)        (160,444)                 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (86,598,029     (54,488,200     (144,110,843     (132,678,347     (52,654,049     (1,966,177              

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (151,709,431     (159,770,581     (206,257,913     (160,411,371     (64,741,149     (7,488,405     (4,023,783     (1,783,364

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  1,378,661,995        2,009,105,101        151,610,742        199,755,825        18,846,863        58,305,619        8,927,432        153,769,389   
  140,120,723        146,985,841        203,487,113        158,194,543        56,822,069        6,205,435        4,015,142        1,781,290   
  (547,143,895     (880,671,360     (144,378,352     (313,247,736         (107,554,793         (192,987,877     (8,601,728     (11,364,416

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  971,638,823        1,275,419,582        210,719,503        44,702,632        (31,885,861     (128,476,823     4,340,846        144,186,263   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  958,259,055        1,505,816,725        72,811,931        75,471,774        (80,034,900     (112,609,031     3,024,711        141,583,936   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  5,451,401,998        3,945,585,273        1,897,231,786        1,821,760,012        492,932,291        605,541,322        141,583,936          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     6,409,661,053      $     5,451,401,998      $     1,970,043,717      $     1,897,231,786      $ 412,897,391      $ 492,932,291      $     144,608,647      $     141,583,936   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 12,073,097      $ 8,414,932      $ (50,424,625   $ 287,513      $ (3,851,235   $ 7,537,825      $ (58,136   $ 1,188,971   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Commencement of operations.

 

The accompanying notes are an integral part of these financial statements.

 

 

121

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements

April 30, 2015 (Unaudited)

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. (the “Company”) is an open-end management investment company comprised of forty-two series, as of April 30, 2015. The financial statements for certain other series of the Company are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Balanced Fund (the “Balanced Fund”)

The Hartford Balanced Income Fund (the “Balanced Income Fund”)

The Hartford Checks and Balances Fund (the “Checks and Balances Fund”)

The Hartford Global All-Asset Fund (the “Global All-Asset Fund”)

Hartford Multi-Asset Income Fund (the “Multi-Asset Income Fund”)

The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class C, Class I, Class R3, Class R4 and Class R5 shares. Effective November 7, 2014, Balanced Income Fund began offering Class R6 shares. Effective March 31, 2015, Balanced Fund began offering Class I shares. In addition, each Fund, except Multi-Asset Income Fund and Global All-Asset Fund, offers Class B shares. Also, each Fund offers Class Y shares except Checks and Balances Fund. Each Fund’s Class A shares are sold with a front-end sales charge of up to 5.50%, except Multi-Asset Income Fund for which Class A shares are sold with a front-end sales charge of up to 4.50%. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4, R5 and R6 shares, which are offered to employer-sponsored retirement plans, and Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

 

2. Significant Accounting Policies:

The significant accounting policies of the Underlying Funds are outlined in the shareholder reports for such funds, available (1) without charge, upon request, by calling 888-843-7824, (2) on our website www.hartfordfunds.com and (3) on the SEC’s website at www.sec.gov.The reports 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.

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

 

 

122

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  a) Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b) Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, each Fund will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Company’s Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Investments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign investments in which a Fund invests 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 NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio investment is primarily traded. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Fixed income investments (other than short-term obligations), non-exchange traded derivatives and centrally cleared swaps held by a Fund are normally valued on the basis of quotes obtained from independent pricing services or brokers and dealers in accordance with procedures established by each Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values through accepted market modeling, trading and pricing conventions. Inputs to the models may include, but are not limited to, prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models and the investment’s terms and conditions. Generally, the Fund may use fair valuation in regard to fixed income investments when the Fund holds defaulted or distressed investments or investments in a company in which a reorganization is pending. Senior floating rate interests generally trade in over-the-counter (“OTC”) markets and are priced through an independent pricing service utilizing independent market quotations from loan dealers or financial institutions. A composite bid price is used, which is an average of the dealer marks and dealer runs. Short-term investments maturing in 60 days or less are generally valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days, which approximates fair value.

Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If the last trade price for exchange traded options does not fall between the bid and ask prices, the value will be the mean of the bid and ask prices as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of over-the-counter (“OTC”) options and such instruments that do not trade on an exchange, values may be supplied by a pricing service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of certain Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Funds.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

 

 

123

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

 

    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price. For more information on specific valuation techniques and unobservable inputs, please see the following table titled “Quantitative Information about Level 3 Fair Value Measurements.”

The Board of Directors of the Company generally reviews and approves the “Procedures for Valuation of Portfolio Securities” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include the Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of the Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, the Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each company then must consider for ratification all of the fair value determinations made during the previous quarter.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

 

 

124

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follow the Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, certain Funds will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

 

  d) Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which a Fund invests. The amount of foreign tax expense is included on the accompanying Statements of Operations as a reduction to net realized gain on investments in these securities.

 

  e) Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The Funds do not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

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

 

  f) Joint Trading Account – Each Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  g) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by the Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund, except Global All-Asset Fund and Multi-Asset Income Fund, is to pay dividends and/or distributions from net investment income, if any, quarterly and realized gains, if any, at least once a year. The policy of Global All-Asset Fund is to pay dividends from net investment income and realized gains, if any; at least once a year and normally, dividends from net investment income of Multi-Asset Income Fund are declared and paid monthly. Dividends from realized gains, if any, are paid at least once a year.

Long-term capital gains distributions received from Underlying Funds, if applicable, are distributed at least annually, when required. Unless shareholders specify otherwise, all dividends and distributions will be automatically reinvested in additional full or fractional shares of Checks and Balances Fund.

 

 

125

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing. These differences may include, but are not limited to, losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), Regulated Investment Companies (“RICs”), certain derivatives and partnerships. Permanent book and federal income tax basis differences relating to shareholder distributions will result in reclassifications to certain of the Fund’s capital accounts (see Federal Income Taxes: Reclassification of Capital Accounts note).

 

3. Securities and Other Investments:

 

  a) Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk – that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a 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, which approximates fair value. Repurchase agreements have master netting arrangements which allow the Funds to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of April 30, 2015.

 

  b) Illiquid and Restricted Investments – Certain Funds are permitted to invest up to 15% of their net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Certain Funds may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by each Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  c) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by certain Funds on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

In connection with certain Funds’ ability to purchase investments on a when-issued or forward commitment basis, a Fund may enter into to-be announced (“TBA”) commitments. TBA commitments are forward agreements for the purchase or sale of mortgage backed securities for a fixed price, with payment and delivery on an agreed-upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. Although a Fund may enter into TBA commitments with the intention of acquiring or delivering securities for its portfolio, the Fund can extend the settlement date, roll the transaction, or dispose of a commitment prior to settlement if deemed appropriate to do so. If the TBA commitment is closed through the acquisition of an offsetting TBA commitment, the Fund realizes a gain or loss. In a TBA roll transaction, a Fund generally purchases or sells the initial TBA commitment prior to the agreed upon settlement date and enters into a new TBA commitment for future delivery or receipt of the mortgage backed securities. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

 

 

126

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Certain Funds may enter into “dollar rolls” in which a Fund sells securities and contracts with the same counterparty to repurchase substantially similar securities (for example, same issuer, coupon and maturity) on a specified future date at an agreed upon price. A Fund gives up the right to receive interest paid on the investments sold. The Fund would benefit to the extent of any differences between the price received for the security and the lower forward price for the future purchase. Dollar rolls involve the risk that the market value of the securities that a Fund is required to purchase may decline below the agreed upon repurchase price of those securities. A Fund records dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions are excluded from the Funds’ portfolio turnover rate. See each Fund’s Schedule of Investments, if applicable, for open dollar roll transactions as of April 30, 2015.

 

  d) Senior Floating Rate Interests – Certain Funds may invest in senior floating rate interests. Senior floating rate interests 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 on 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 interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. A Fund may invest in multiple series or tranches of a senior floating rate interest, which may have varying terms and carry different associated risks. A Fund may also enter into unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full. A Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a senior floating rate interest. In certain circumstances, a Fund may receive various fees upon the restructure of a senior floating rate interest by a borrower. Fees earned/paid may be recorded as a component of income or realized gain/loss in the Statements of Operations.

Senior floating rate interests are typically rated below-investment-grade, which suggests they are more likely to default and generally pay higher interest rates 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. See each Fund’s Schedule of Investments, if applicable, for outstanding senior floating rate interests as of April 30, 2015.

 

  e) Inflation Indexed Bonds – Certain Funds may invest in inflation indexed bonds. Inflation indexed bonds are fixed income investments whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive the principal amount until maturity. See each Fund’s Schedule of Investments, if applicable, for inflation indexed bonds as of April 30, 2015.

 

  f) Mortgage Related and Other Asset Backed Securities – Certain Funds may invest in mortgage related and other asset backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage backed securities, stripped mortgage backed securities, asset backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Mortgage related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. These securities provide a monthly payment that consists of both interest and principal payments. Interest payments may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage related securities is guaranteed by the full faith and credit of the United States Government. Mortgage related and other asset backed securities created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. See each Fund’s Schedule of Investments, if applicable, for mortgage related and other asset backed securities as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The

 

 

127

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to or within the Schedules of Investments for purchased options, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Foreign Currency Contracts – Each Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of April 30, 2015.

 

  b) Futures Contracts – The Funds may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

  c) Options Contracts – An option contract is a contract sold by one party to another party that offers the buyer the right, but not the obligation, to buy (call) or sell (put) an investment or other financial asset at an agreed-upon price during a specific period of time or on a specific date. Option contracts are either privately negotiated in the over-the-counter market (“OTC options”) or executed in a registered exchange (“exchange traded options”). Each Fund may write (sell) covered call and put options on futures, swaps (“swaptions”), securities, commodities or currencies. “Covered” means that so long as a Fund is obligated as the writer of an option, it will own either the underlying investments or currency or an option to purchase the same underlying investments or currency having an expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will pledge cash or other liquid investments having a value equal to or greater than the fluctuating market value of the option investment or currency. Writing put options increases a Fund’s exposure to the underlying instrument. Writing call options decreases a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset amounts paid on the underlying futures, swap, investment or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. A Fund may also purchase put and call options. Purchasing call options increases a Fund’s exposure to the underlying instrument. Purchasing put options decreases a Fund’s exposure to the underlying instrument. Each Fund pays a premium, which is included on the Fund’s Statements of Assets and Liabilities as an investment and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is generally limited to the premium paid. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss. Entering into over-the-counter options also exposes a Fund to counterparty risk. Counterparty risk is the possibility that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements.

 

 

128

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

See each Fund’s Schedule of Investments, if applicable, for outstanding purchased and written option contracts as of April 30, 2015. Transactions involving written option contracts during the six-month period ended April 30, 2015, are summarized below:

The Hartford Balanced Income Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  3,979,000      6,798   

Written

  14      6,100   

Expired

  (3,979,000   (6,798

Closed

  (14   (6,100

Exercised

         
  

 

 

   

 

 

 

End of Period

         
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  2,204,000      2,865   

Written

  14      2,819   

Expired

  (2,204,000   (2,865

Closed

  (14   (2,819

Exercised

         
  

 

 

   

 

 

 

End of Period

         
  

 

 

   

 

 

 

The Hartford Global All-Asset Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  5,400,000      160,169   

Written

  675,000      49,275   

Expired

         

Closed

  (5,800,000   (169,129

Exercised

         
  

 

 

   

 

 

 

End of Period

  275,000      40,315   
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  5,400,000      166,270   

Written

  675,000      49,275   

Expired

         

Closed

  (5,800,000   (175,230

Exercised

         
  

 

 

   

 

 

 

End of Period

  275,000      40,315   
  

 

 

   

 

 

 

 

 

129

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Hartford Multi-Asset Income Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  37,985,000      131,233   

Written

  79,685,000      506,419   

Expired

  (83,285,000   (283,800

Closed

  (21,585,000   (216,943

Exercised

         
  

 

 

   

 

 

 

End of Period

  12,800,000      136,909   
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  37,985,000      114,210   

Written

  79,685,100      645,578   

Expired

  (98,470,000   (371,693

Closed

  (6,400,100   (278,909

Exercised

         
  

 

 

   

 

 

 

End of Period

  12,800,000      109,186   
  

 

 

   

 

 

 

 

  d) Swap Contracts – Certain Funds may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared in a central clearing house (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are valued based on custom valuations furnished by an independent pricing service. Swaps for which prices are not available from an independent pricing service are valued in accordance with procedures established by the Company’s Board of Directors. Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statement of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swap. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statement of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statement of Operations.

Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).

A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between the Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statement of Assets and Liabilities, as

 

 

130

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

applicable) as well as the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces the Fund’s exposure to counterparty risk. The Fund is still exposed to the counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.

Credit Default Swap Contracts – The credit default swap market allows a Fund to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.

Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statement of Operations. 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. Although specified events are contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of six-month period-end are disclosed in the notes to the Schedule of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. See each Fund’s Schedule of Investments, if applicable, for outstanding credit default swap contracts as of April 30, 2015.

Interest Rate Swap Contracts – Certain Funds are subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because certain Funds holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap contracts. In a typical interest rate swap, one party agrees to make regular payments equal to a floating interest rate, based on a specified interest rate or benchmark (e.g. London Interbank Offered Rate (“LIBOR”)), multiplied by a notional amount, in return for payments equal to a fixed rate multiplied by the same amount, for a specific period of time. The net interest received or paid on interest rate swap contracts is recorded as a realized gain or loss. Interest rate swaps are marked to market daily and the change, if any, is recorded as an unrealized gain or loss in the Statements of Operations. When the interest rate swap contract is terminated early, a Fund records a realized gain or loss equal to the difference between the current market value and the upfront premium or cost.

If an interest rate swap contract provides for payments in different currencies, the parties might agree to exchange the notional amount as well. Interest rate swaps may also depend on other prices or rates, such as the value of an index. The risks of interest rate swaps include changes in market conditions which will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligations under the contract. A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. See each Fund’s Schedule of Investments, if applicable, for outstanding interest rate swap contracts as of April 30, 2015.

 

 

131

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Total Return Swap Contracts – Certain Funds may invest in total return swap contracts. An investment in a total return swap allows a Fund to gain or mitigate exposure to underlying referenced securities, indices or commodities. Total return swap contracts involve commitments where cash flows are exchanged based on the price of underlying securities, indices or commodities and based on a fixed or variable rate. One party would receive payments based on the price appreciation or depreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying to or receiving from the counterparty seller an agreed-upon rate, which can be fixed or variable. A variable rate may be correlated to a base rate, such as the LIBOR, and is adjusted each reset period, which are defined at the beginning of the contract. Therefore, if interest rates increase over the term of the swap contract, the party paying the rate may be required to pay a higher rate at each swap reset date.

Total return swap contracts on indices involve commitments to pay interest in exchange for a market-linked return. One party pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding total return swap contracts as of April 30, 2015.

 

  f) Additional Derivative Instrument Information:

Balanced Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Liabilities:

                    

Unrealized depreciation on futures contracts(2)

   $ 114,339                                               $ 114,339   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     114,339       $     —       $     —       $     —       $     —       $     —       $     114,339   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the derivative activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

  

Net realized gain (loss) on futures

   $ (47,276   $      $       $       $       $       $ (47,276

Net realized gain (loss) on foreign currency contracts

            (3,377                                     (3,377
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (47,276   $     (3,377   $       $       $       $       $ (50,653
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

  

Net change in unrealized appreciation (depreciation) of futures

   $ (150,959   $      $       $       $       $       $ (150,959
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (150,959   $      $     —       $     —       $     —       $     —       $     (150,959
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

132

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Balanced Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 199,179       $       $       $       $       $ 199,179   

Unrealized appreciation on swap contracts(1)

                     1,354,934                                 1,354,934   

Unrealized appreciation on futures contracts(2)

     8,284,330                                                 8,284,330   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     8,284,330       $     199,179       $     1,354,934       $     —       $     —       $     —       $     9,838,443   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 1,466,303       $       $       $       $       $ 1,466,303   

Unrealized depreciation on swap contracts(1)

                     38,423                                 38,423   

Unrealized depreciation on futures contracts(2)

     4,603,772                                                 4,603,772   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     4,603,772       $     1,466,303       $     38,423       $     —       $     —       $     —       $     6,108,498   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the derivative activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on purchased options

   $ (487   $      $ (2,751   $       $       $       $ (3,238

Net realized gain (loss) on written options

     3,620               9,663                                13,283   

Net realized gain (loss) on futures

     (6,135,954                                           (6,135,954

Net realized gain (loss) on swap contracts

     (1,877            198,476                                196,599   

Net realized gain (loss) on foreign currency contracts

            3,937,959                                       3,937,959   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (6,134,698   $ 3,937,959      $ 205,388      $       $       $       $     (1,991,351
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of purchased options

   $      $      $ 2,625      $       $       $       $ 2,625   

Net change in unrealized appreciation (depreciation) of written options

                   (287                             (287

Net change in unrealized appreciation (depreciation) of futures

     211,199                                              211,199   

Net change in unrealized appreciation (depreciation) of swap contracts

     1,197               941,052                                942,249   

Net change in unrealized appreciation (depreciation) of foreign currency

            (1,790,016                                    (1,790,016
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 212,396      $     (1,790,016   $     943,390      $     —       $     —       $     —       $ (634,230
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

133

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Global All-Asset Fund

Fair Value of Derivative Instruments on the Consolidated Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $ 54,063       $ 50,456       $       $       $ 20,950       $       $ 125,469   

Unrealized appreciation on foreign currency contracts

             3,656,495                                         3,656,495   

Unrealized appreciation on swap contracts(1)

     284,010                 141,870         1,652,266                         2,078,146   

Unrealized appreciation on futures contracts(2)

     355,691                         164,476         12,661                 532,828   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     693,764       $     3,706,951       $     141,870       $     1,816,742       $     33,611       $     —       $     6,392,938   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 7,449,220       $       $       $       $       $ 7,449,220   

Unrealized depreciation on swap contracts(1)

     336,771                         59,134                         395,905   

Unrealized depreciation on futures contracts(2)

     279,082                         211,173                         490,255   

Written options, market value

     78,025                                                 78,025   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     693,878       $     7,449,220       $     —       $     270,307       $     —       $     —       $     8,413,405   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the derivative activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on purchased options

   $ 25,944      $ 636,138      $      $ (220,824   $ (121,266   $       $ 319,992   

Net realized gain (loss) on written options

     7,305        (56,042                                  (48,737

Net realized gain (loss) on futures

     61,836                      294,968        (80,130             276,674   

Net realized gain (loss) on swap contracts

     (577,691            (571,658     (1,621,877                    (2,771,226

Net realized gain (loss) on foreign currency contracts

            13,745,507                                     13,745,507   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $     (482,606   $     14,325,603      $     (571,658   $     (1,547,733   $     (201,396   $     —       $     11,522,210   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ (128,050   $ (605,444   $      $ (59,370   $ 10,954      $       $ (781,910

Net change in unrealized appreciation (depreciation) of written options

     (624     (106,257                                  (106,881

Net change in unrealized appreciation (depreciation) of futures

     323,109                      727,949        110,757                1,161,815   

Net change in unrealized appreciation (depreciation) of swap contracts

     (52,761            (51,689     2,370,305                       2,265,855   

Net change in unrealized appreciation (depreciation) of foreign currency

            (7,586,138                                  (7,586,138
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ 141,674      $ (8,297,839   $ (51,689   $ 3,038,884      $ 121,711      $       $ (5,047,259
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

 

134

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Multi-Asset Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $       $ 38,119       $       $       $       $       $ 38,119   

Unrealized appreciation on foreign currency contracts

             147,627                                         147,627   

Unrealized appreciation on swap contracts(1)

     24,072                 262,087         294,763                         580,922   

Unrealized appreciation on futures contracts(2)

     18,873                                                 18,873   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 42,945       $ 185,746       $ 262,087       $     294,763       $       $       $ 785,541   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 1,064,786       $       $       $       $       $ 1,064,786   

Unrealized depreciation on swap contracts(1)

     123,077                 128,750                                 251,827   

Unrealized depreciation on futures contracts(2)

     126,786                                                 126,786   

Written options, market value

     210,362                                                 210,362   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     460,225       $     1,064,786       $     128,750       $       $     —       $     —       $     1,653,761   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the derivative activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on purchased options

  $      $ (28,252   $      $ (24,367   $      $      $ (52,619

Net realized gain (loss) on written options

    604,345               213,114        180,589                      998,048   

Net realized gain (loss) on futures

    64,263                                           64,263   

Net realized gain (loss) on swap contracts

    (80,762            (488,462     (386,827                   (956,051

Net realized gain (loss) on foreign currency contracts

           2,150,559                                    2,150,559   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 587,846      $ 2,122,307      $     (275,348   $     (230,605   $     —      $     —      $ 2,204,200   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of investments in purchased options

  $      $ (37,920   $      $ 3,117      $      $      $ (34,803

Net change in unrealized appreciation (depreciation) of written options

                  (7,776                          (7,776

Net change in unrealized appreciation (depreciation) of futures

    (128,968                                        (128,968

Net change in unrealized appreciation (depreciation) of swap contracts

    (99,006            131,959        452,732                      485,685   

Net change in unrealized appreciation (depreciation) of foreign currency

           (1,064,971                                     (1,064,971
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $     (227,974   $     (1,102,891   $ 124,183      $ 455,849      $      $      $ (750,833
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Statements of Assets and Liabilities location: Unrealized appreciation (depreciation) on OTC swap contracts and Variation margin on financial derivative instruments.
  (2)  Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities.

 

  g)

Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including

 

 

135

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statement of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Balanced Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Futures contracts

            (114,339
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

            (114,339
  

 

 

   

 

 

 

Derivatives not subject to a MNA

            114,339   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

              
  

 

 

   

 

 

 
Balanced Income Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     199,179        (1,466,303

Futures contracts

     8,284,330        (4,603,773

Swap contracts

     1,408,241        (1,411,439
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     9,891,750        (7,481,515
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (8,535,793     4,603,773   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     1,355,957        (2,877,742
  

 

 

   

 

 

 

 

Balanced Income Fund

 

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received($)*
     Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     409,819         (409,819                      

Barclays

     8,284         (8,284                      

BNP Paribas Securities Services

     16,266         (16,266                      

Citibank NA

     7,321         (7,321                      

Deutsche Bank Securities, Inc.

     739,820         (393,788             (346,032       

Goldman Sachs & Co.

     2,144         (2,144                      

Morgan Stanley

     19,794         (19,794                      

RBC Dominion Securities, Inc.

     19,458         (19,458                      

State Street Global Markets LLC

     1,131         (1,131                      

UBS AG

     131,920         (131,920                      
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,355,957         (1,009,925             (346,032       
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (445,644     409,819             —                 (35,825

Barclays

     (19,952     8,284                         (11,668

BNP Paribas Securities Services

     (149,810     16,266                 133,544           

Citibank NA

     (488,858     7,321                 481,537           

Commonwealth Bank of Australia

     (83,218                             (83,218

Credit Suisse First Boston Corp.

     (90,728                             (90,728

Deutsche Bank Securities, Inc.

     (393,788     393,788                           

GCS: not found.

     (189,423                             (189,423

Goldman Sachs & Co.

     (72,185     2,144                 70,041           

JP Morgan Chase & Co.

     (166,469                             (166,469

Morgan Stanley

     (96,724     19,794                         (76,930

National Australia Bank Limited

     (178,509                             (178,509

RBC Dominion Securities, Inc.

     (33,640     19,458                         (14,182

RBS Greenwich Capital

     (187,710                             (187,710

Standard Chartered Bank

     (5,939                             (5,939

State Street Global Markets LLC

     (37,600     1,131                         (36,469

UBS AG

     (237,545     131,920                         (105,625
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (2,877,742     1,009,925                 685,122         (1,182,695
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

136

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Global All-Asset Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     3,656,495        (7,449,220

Futures contracts

     532,828        (490,255

Purchased options and swaptions

     125,469          

Swap contracts

     2,101,692        (1,649,849

Written options and swaptions

            (78,025
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     6,416,484        (9,667,349
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (713,681     490,255   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     5,702,803        (9,177,094
  

 

 

   

 

 

 

 

Global All-Asset Fund  

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Bank of America Securities LLC

     167,972         (54,740         —             —         113,232   

Bank of Montreal

     19,413                                19,413   

Barclays

     150,001                                150,001   

BNP Paribas Securities Services

     254,813         (254,813                       

Bank of New York

     10,269                                10,269   

Citibank NA

     1,523,139         (1,523,139                       

Commonwealth Bank of Australia

     119,959         (119,959                       

Credit Suisse First Boston Corp.

     525,636         (28,779                     496,857   

Deutsche Bank Securities, Inc.

     95,503         (95,503                       

Goldman Sachs & Co.

     2,101,343         (399,566                     1,701,777   

HSBC Bank USA

     237         (237                       

JP Morgan Chase & Co.

     237,959         (237,959                       

Morgan Stanley

     22,900         (22,900                       

National Australia Bank Limited

     89,853         (89,853                       

RBC Dominion Securities, Inc.

     108,762                                108,762   

RBS Greenwich Capital

     111,618         (111,618                       

State Street Global Markets LLC

     160         (160                       

Toronto-Dominion Bank

     107,486         (107,486                       

UBS AG

     55,780         (55,780                       
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     5,702,803         (3,102,492                     2,600,311   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (54,740     54,740             —                   

BNP Paribas Securities Services

     (1,374,989     254,813                 1,120,176           

Citibank NA

     (1,830,454     1,523,139                         (307,315

Commonwealth Bank of Australia

     (417,054     119,959                         (297,095

Credit Suisse First Boston Corp.

     (28,779     28,779                           

Deutsche Bank Securities, Inc.

     (1,164,000     95,503                 335,000         (733,497

Goldman Sachs & Co.

     (399,566     399,566                           

HSBC Bank USA

     (74,538     237                         (74,301

JP Morgan Chase & Co.

     (524,401     237,959                         (286,442

Morgan Stanley

     (59,356     22,900                 36,456           

National Australia Bank Limited

     (1,103,949     89,853                         (1,014,096

RBS Greenwich Capital

     (1,256,981     111,618                         (1,145,363

Standard Chartered Bank

     (17,188                             (17,188

State Street Global Markets LLC

     (963     160                         (803

Toronto-Dominion Bank

     (122,022     107,486                         (14,536

UBS AG

     (554,813     55,780                         (499,033

Westpac International

     (193,301                             (193,301
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (9,177,094     3,102,492                 1,491,632         (4,582,970
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

137

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Multi-Asset Income Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     147,627        (1,064,786

Futures contracts

     18,873        (126,786

Purchased options and swaptions

     38,119          

Swap contracts

     2,826,679        (1,513,190

Written options and swaptions

            (210,362
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     3,031,298        (2,915,124
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (1,278,272     441,562   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     1,753,026        (2,473,562
  

 

 

   

 

 

 

 

Multi-Asset Income Fund  

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
    Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     32,517        (32,517                     

Barclays

     24,373        (24,373                     

BNP Paribas Securities Services

     38,909        (38,909                     

Credit Suisse International

     432,675        (271,239     (161,436              

Deutsche Bank Securities, Inc.

     63,360        (63,360                     

Goldman Sachs & Co.

     238,513        (29,805                   208,708   

JP Morgan Chase & Co.

     639,314        (181,195            (430,000     28,119   

Morgan Stanley

     241,095        (24,365            (216,730       

National Australia Bank Limited

     484        (484                     

RBS Greenwich Capital

     445        (445                     

Standard Chartered Bank

     6,136        (6,136                     

State Street Global Markets LLC

     28,770        (17,655                   11,115   

UBS AG

     6,435        (6,435                     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,753,026        (696,918     (161,436     (646,730     247,942   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
    Cash
Collateral
Pledged ($)*
    Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (212,350     32,517               179,833          

Barclays

     (197,757     24,373               173,384          

BNP Paribas Securities Services

     (710,463     38,909               671,554          

Citibank NA

     (72,425                          (72,425

Credit Suisse International

     (271,239     271,239                        

Deutsche Bank Securities, Inc.

     (169,521     63,360                      (106,161

Goldman Sachs & Co.

     (29,805     29,805                        

HSBC Bank USA

     (1,673                          (1,673

JP Morgan Chase & Co.

     (181,195     181,195                        

Morgan Stanley

     (24,365     24,365                        

National Australia Bank Limited

     (245,631     484                      (245,147

RBC Dominion Securities, Inc.

     (16,458                          (16,458

RBS Greenwich Capital

     (265,308     445                      (264,863

Standard Chartered Bank

     (22,777     6,136                      (16,641

State Street Global Markets LLC

     (17,655     17,655                        

Toronto-Dominion Bank

     (8,516                          (8,516

UBS AG

     (26,424     6,435                      (19,989
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     (2,473,562     696,918               1,024,771        (751,873
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

Certain derivatives held by Balanced Fund, as of April 30, 2015, are not subject to a master netting arrangement and are excluded from the table above.

 

 

138

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

5. Principal Risks:

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Each Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension and foreign currency risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Senior floating rate interests and securities subject to prepayment and extension risk generally offer less potential for gains when interest rates decline. 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 and extension risk are major risks of mortgage backed securities, senior floating rate interests and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

If the Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund. The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.

Certain Funds are exposed to the risks of the Underlying Funds and/or ETFs/ETNs in direct proportion to the amount of assets those Funds allocate to each Underlying Fund and/or ETF/ETN. The market values of the Underlying Funds and/or ETFs/ETNs may decline due to general market conditions which are not specifically related to a particular company in which the Underlying Fund and/or ETF/ETN invested, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities in which the Underlying Funds and/or ETFs/ETNs invest may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

 

6. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b)

Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments and

 

 

139

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  short-term capital gain adjustments. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Ordinary Income
For the
Year Ended
October 31,
2014
  Long-Term
Capital Gains
For the
Year Ended
October 31,
2014
  Ordinary Income
For the
Year Ended
October 31,
2013
  Long-Term
Capital Gains
For the
Year Ended
October 31,
2013
 

Balanced Fund

$ 7,260,069    $    $ 6,873,494    $   

Balanced Income Fund

$     115,187,259    $ 44,583,321    $ 82,182,998    $     13,782,342   

Checks and Balances Fund

$ 27,733,024    $     132,678,346    $     28,039,952    $ 5,717,632   

Global All-Asset Fund

$ 5,509,918    $ 1,978,485    $ 17,150,003    $   

Multi-Asset Income Fund

$ 1,783,364    $    $    $   

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

  Undistributed
Ordinary
Income
  Undistributed
Long-Term
Capital Gain
  Accumulated
Capital and
Other Losses(1)
  Unrealized
Appreciation
(Depreciation)
on Investments(2)
  Total
Accumulated
Earnings
(Deficit)
 

Balanced Fund

$ 596,794    $    $     (133,113,637 $     167,236,279    $ 34,719,436   

Balanced Income Fund

$     26,523,721    $ 69,259,459    $    $ 502,895,862    $     598,679,042   

Checks and Balances Fund

$ 287,513    $     144,109,924    $    $ 351,068,652    $ 495,466,089   

Global All-Asset Fund

$ 19,627,644    $ 44,855,400    $    $ 15,631,782    $ 80,114,826   

Multi-Asset Income Fund

$ 1,359,077    $    $ (199,784 $ (3,720,136 $ (2,560,843

 

  (1)  The Funds have capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, paydowns, swaps, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

  Capital Stock and
Paid-in-Capital
  Undistributed Net
Investment Income
(Loss)
  Accumulated Net
Realized Gain
(Loss)
 

Balanced Fund

       212,857      (212,857

Balanced Income Fund

       (1,612,970   1,612,970   

Checks and Balances Fund

       2,731,086      (2,731,086

Global All-Asset Fund

  (1,267,608   4,455,916      (3,188,308

Multi-Asset Income Fund

  (12,844   810,275      (797,431

 

  e)

Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the

 

 

140

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

Fund

Year of
Expiration
2017
  Unlimited
Short-Term
Capital Loss
Carryforward
 

Balanced Fund

$     133,113,637    $   

Balanced Income Fund

$    $   

Checks and Balances Fund

$    $   

Global All-Asset Fund

$    $   

Multi-Asset Income Fund

$    $     199,784   

During the year ended October 31, 2014, the Balanced Fund utilized prior year capital loss rollforwards of $40,030,845.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with each Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund (except Checks and Balances Fund) in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Balanced Fund

0.6900% on first $500 million and;
0.6250% on next $500 million and;
0.5750% on next $4 billion and;
0.5725% on next $5 billion and;
0.5700% over $10 billion

Balanced Income Fund

0.7000% on first $250 million and;
0.6300% on next $250 million and;
0.6000% on next $500 million and;
0.5700% on next $1.5 billion and;
0.5500% on next $2.5 billion and;
0.5300% on next $5 billion and;
0.5250% over $10 billion

 

 

141

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Management Fee Rates

Global All-Asset Fund

0.9500% on first $250 million and;
0.9000% on next $250 million and;
0.8000% on next $500 million and;
0.7300% on next $1.5 billion and;
0.7000% on next $2.5 billion and;
0.6600% on next $5 billion and;
0.6500% over $10 billion

Multi-Asset Income Fund

0.7500% on first $250 million and;
0.7000% on next $250 million and;
0.6800% on next $500 million and;
0.6600% on next $1.5 billion and;
0.6500% on next $2.5 billion and;
0.6400% on next $5 billion and;
0.6350% over $10 billion

The Checks and Balances Fund does not currently pay any fees to HFMC for managing the Checks and Balances Fund.

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and each Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fees Rates

Balanced Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

Balanced Income Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

Checks and Balances Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Global All-Asset Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Multi-Asset Income Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  c) Operating Expenses – Allocable expenses incurred by each Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Balanced Fund

  1.18%      NA      NA      0.93%      1.40%      1.10%      0.80%      NA      NA   

Balanced Income Fund

  0.99%      1.74%   1.74%      0.74%      1.24%      0.94%      0.69%      0.64%      0.64%   

Checks and Balances Fund

  1.25%      2.00%      2.00%      1.00%      1.40%      1.10%      0.80%      NA      NA   

Global All-Asset Fund

  1.25%      NA      2.00%      1.00%      1.50%      1.20%      0.95%      NA      0.90%   

Multi-Asset income Fund

  1.12%      NA      1.87%      0.87%      1.42%      1.12%      0.93%      NA      0.83%   

 

  * The reduction in amounts charged in connection with the Balanced Income Fund’s Class B Distribution and Service Plan (12b-1) fees that took effect June 30, 2012, in order to comply with applicable FINRA rules, caused the limit on net operating expenses attributable to the Balanced Income Fund’s Class B shares to be, effectively, 0.99%.

 

 

142

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  d) Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. 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 a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended April 30, 2015, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Balanced Fund

  1.13   2.02   1.82   0.75   1.40   1.10   0.80        0.73

Balanced Income Fund

  0.94   0.99   1.68   0.69   1.24   0.94   0.69   0.63   0.61

Checks and Balances Fund

  0.38   1.18   1.13   0.21   0.75   0.44   0.14          

Global All-Asset Fund

  1.25        2.00   0.99   1.50   1.20   0.95        0.90

Multi-Asset Income Fund

  1.12        1.87   0.86   1.42   1.12   0.93        0.83

 

  e) Distribution and Service Plan for Class A, B, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect wholly owned subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end
Sales Charges
  Contingent Deferred
Sales Charges
 

Balanced Fund

$ 710,801    $ 8,575   

Balanced Income Fund

      8,793,094          215,915   

Checks and Balances Fund

  3,135,390      22,701   

Global All-Asset Fund

  104,767      2,268   

Multi-Asset Income Fund

  11,388      97   

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, B, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class B Plan, each 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 services provided to existing shareholders 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. 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, each 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 R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as each Company’s Board of Directors may determine.

 

  f)

Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. The portion allocated to each Fund, as represented in other expenses on the Statements of Operations, for each Fund is listed below. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated

 

 

143

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

8. Affiliate Holdings:

As of April 30, 2015, affiliates of The Hartford had ownership of shares in the Fund as follows:

Percentage of Class:

 

  Class A   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Balanced Fund

            95             99          

Balanced Income Fund

                                27     

Checks and Balances Fund

                           6          

Global All-Asset Fund

                           99          

Multi-Asset Income Fund

  54   43   83   100   100   100        8

Percentage of Fund:

 

  Class A   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Balanced Fund

            %*              %*           

Balanced Income Fund

                                %*      

Checks and Balances Fund

                           %*           

Global All-Asset Fund

                           1          

Multi-Asset Income Fund

  4   1   1   1   1   1        6

 

* Percentage rounds to zero.

 

9. Affiliate Fund Transactions:

A summary of affiliate fund transactions for the The Hartford Checks and Balances Fund for the period ended April 30, 2015 follows:

Checks and Balances Fund

 

Underlying Portfolio

Number of shares
held at
October 31, 2014
  Shares
purchased
  Shares
sold
  Number of shares
held at
April 30, 2015
 

The Hartford Capital Appreciation Fund

  11,800,153      4,126,323      885,905      15,040,571   

The Hartford Dividend and Growth Fund

  23,122,244      3,087,984      872,188      25,338,040   

The Hartford Total Return Bond Fund

  57,186,190      8,318,691      4,239,402      61,265,479   

 

Underlying Portfolio

Net Realized
Gain/(Loss) on
sales
of Affiliated
Underlying
Portfolios
  Capital Gain
Distributions
from Affiliated
Underlying
Portfolios
  Dividend Income
from Affiliated
Underlying
Portfolios
  Ending Value
as of
April 30, 2015
 

The Hartford Capital Appreciation Fund

$ 11,745,591    $ 146,930,316    $ 4,238,648    $ 655,167,253   

The Hartford Dividend and Growth Fund

  11,432,185      52,267,061      5,458,696      658,789,029   

The Hartford Total Return Bond Fund

  (363,230   13,752,264      7,085,187      654,927,970   
  

 

 

   

 

 

    

 

 

    

 

 

 
$     22,814,546    $     212,949,641    $     16,782,531    $     1,968,884,252   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

 

144

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

10. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Governments
 

Balanced Fund

$ 118,850,704    $ 97,589,470   

Balanced Income Fund

$     1,792,320,072    $     951,437,520   

Checks and Balances Fund

$ 338,162,768    $ 109,344,171   

Global All-Asset Fund

$ 122,346,729    $ 193,351,223   

Multi-Asset Income Fund

$ 45,075,100    $ 48,805,930   

 

  Cost of Purchases
U.S. Government
Obligations
  Sales Proceeds
U.S. Governments
 

Balanced Fund

$     19,376,393    $     11,247,692   

Balanced Income Fund

$ 2,988,472    $ 1,322,417   

Checks and Balances Fund

$    $   

Global All-Asset Fund

$    $ 13,717,859   

Multi-Asset Income Fund

$ 684,511    $ 674,845   

 

  Total Cost of
Purchases
  Total Sales
Proceeds
 

Balanced Fund

$ 138,227,097    $ 108,837,162   

Balanced Income Fund

$     1,795,308,544    $ 952,759,937   

Checks and Balances Fund

$ 338,162,768    $ 109,344,171   

Global All-Asset Fund

$ 122,346,729    $     207,069,082   

Multi-Asset Income Fund

$ 45,759,611    $ 49,480,775   

 

11. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Balanced Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,189,620    $     45,954,826      2,776,196    $     54,423,151   

Shares Issued for Reinvested Dividends

  156,359      3,296,165      325,086      6,414,577   

Shares Redeemed

  (2,112,099   (44,195,123   (3,860,654   (75,583,500

Shares converted (from) Class B into Class A

  54,334      1,146,631      117,079      2,300,089   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  288,214      6,202,499      (642,293   (12,445,683
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  12,449    $ 258,935      24,398    $ 471,522   

Shares Issued for Reinvested Dividends

  328      6,843      1,281      24,887   

Shares Redeemed

  (56,872   (1,194,051   (145,624   (2,815,214

Shares converted (from) Class B into Class A

  (54,672   (1,146,631   (117,079   (2,300,089
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (98,767   (2,074,904   (237,024   (4,618,894
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

145

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  1,265,743    $ 26,578,491      1,499,130    $ 29,310,885   

Shares Issued for Reinvested Dividends

  14,983      315,782      28,364      559,137   

Shares Redeemed

  (370,405   (7,784,475   (737,038   (14,498,732
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  910,321      19,109,798      790,456      15,371,290   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I(1)

Shares Sold

  5,012    $ 105,750         $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,012      105,750             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  15,084    $ 322,052      7,154    $ 141,695   

Shares Issued for Reinvested Dividends

  134      2,869      282      5,620   

Shares Redeemed

  (992   (21,077   (12,954   (253,807
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  14,226      303,844      (5,518   (106,492
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  8,049    $ 171,031      11,891    $ 234,333   

Shares Issued for Reinvested Dividends

  182      3,894      345      6,903   

Shares Redeemed

  (5,251   (112,715   (2,644   (51,627
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,980      62,210      9,592      189,609   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  57    $ 1,222      38    $ 761   

Shares Issued for Reinvested Dividends

  56      1,164      113      2,261   

Shares Redeemed

  (4   (87   (5   (104
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  109      2,299      146      2,918   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  82,662    $ 1,783,232      15,137    $ 297,803   

Shares Issued for Reinvested Dividends

  1,053      21,502      1,647      32,922   

Shares Redeemed

  (2,640   (56,634   (18,570   (360,131
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  81,075      1,748,100      (1,786   (29,406
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  1,203,170    $     25,459,596      (86,427 $     (1,636,658
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)     Commenced operations March 31, 2015.

 

Balanced Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  30,973,500    $ 422,010,583      51,822,889    $ 693,795,195   

Shares Issued for Reinvested Dividends

  4,736,927      63,869,930      5,684,482      75,233,127   

Shares Redeemed

  (15,329,552       (208,859,053   (32,666,240   (437,844,362

Shares converted (from) Class B into Class A

  48,518      660,895      49,749      664,732   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  20,429,393      277,682,355      24,890,880      331,848,692   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  61,528    $ 835,363      212,349    $ 2,827,776   

Shares Issued for Reinvested Dividends

  32,725      439,782      51,337      675,844   

Shares Redeemed

  (278,439   (3,782,019   (448,030   (5,985,045

Shares converted (from) Class B into Class A

  (48,651   (660,895   (49,749   (664,732
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (232,837   (3,167,769   (234,093   (3,146,157
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

146

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  37,147,860    $ 499,906,936      49,862,408    $ 661,025,342   

Shares Issued for Reinvested Dividends

  3,223,708      42,891,699      3,182,799      41,562,423   

Shares Redeemed

  (9,702,692   (130,629,965   (16,831,367       (222,580,559
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  30,668,876      412,168,670      36,213,840      480,007,206   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  29,106,901    $ 396,518,245      41,223,500    $ 555,341,897   

Shares Issued for Reinvested Dividends

  2,027,786      27,352,011      1,817,418      24,120,105   

Shares Redeemed

  (13,277,547       (180,919,546   (13,706,727   (183,367,532
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  17,857,140      242,950,710      29,334,191      396,094,470   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  1,728,256    $ 23,619,633      4,024,537    $ 54,134,112   

Shares Issued for Reinvested Dividends

  207,043      2,799,278      196,495      2,612,701   

Shares Redeemed

  (755,605   (10,348,046   (972,361   (13,077,634
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,179,694      16,070,865      3,248,671      43,669,179   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  1,007,868    $ 13,737,828      1,857,362    $ 24,762,110   

Shares Issued for Reinvested Dividends

  104,956      1,419,845      122,907      1,635,045   

Shares Redeemed

  (407,549   (5,585,207   (879,127   (11,812,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  705,275      9,572,466      1,101,142      14,585,069   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  774,598    $ 10,670,478      363,173    $ 4,833,635   

Shares Issued for Reinvested Dividends

  43,564      590,142      33,165      441,981   

Shares Redeemed

  (161,113   (2,207,924   (155,256   (2,091,606
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  657,049      9,052,696      241,082      3,184,010   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(1)

Shares Sold

  2,800    $ 38,574         $   

Shares Issued for Reinvested Dividends

  23      313             

Shares Redeemed

  (68   (943          
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,755      37,944             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  827,318    $ 11,324,355      914,890    $ 12,385,034   

Shares Issued for Reinvested Dividends

  55,674      757,723      52,673      704,615   

Shares Redeemed

  (351,322   (4,811,192   (291,636   (3,912,536
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  531,670      7,270,886      675,927      9,177,113   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  71,799,015    $ 971,638,823      95,471,640    $     1,275,419,582   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)     Commenced operations November 7, 2014.

 

Checks and Balances Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  9,510,483    $ 106,043,928      12,088,299    $ 139,661,131   

Shares Issued for Reinvested Dividends

  14,017,738      152,835,545      11,016,837      122,198,344   

Shares Redeemed

  (9,302,958       (103,553,241   (20,222,208       (233,108,794

Shares converted (from) Class B into Class A

  29,551      327,375      37,471      429,355   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  14,254,814      155,653,607      2,920,399      29,180,036   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

147

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class B

Shares Sold

  32,095    $ 354,472      59,194    $ 675,715   

Shares Issued for Reinvested Dividends

  1,022,827      11,085,246      811,901      8,860,465   

Shares Redeemed

  (820,682   (9,081,016   (1,741,646   (19,963,619

Shares converted (from) Class B into Class A

  (29,719   (327,375   (37,471   (429,355
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  204,521      2,031,327      (908,022   (10,856,794
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,848,057    $ 31,436,892      3,552,153    $ 40,804,349   

Shares Issued for Reinvested Dividends

  3,194,905      34,624,744      2,175,030      23,778,445   

Shares Redeemed

  (2,160,371   (23,955,386   (3,894,347   (44,626,251
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,882,591      42,106,250      1,832,836      19,956,543   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  670,486    $ 7,497,563      1,109,883    $ 12,828,473   

Shares Issued for Reinvested Dividends

  306,394      3,345,193      205,429      2,286,860   

Shares Redeemed

  (552,134   (6,101,239   (923,035   (10,616,351
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  424,746      4,741,517      392,277      4,498,982   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  292,014    $ 3,188,402      237,556    $ 2,740,564   

Shares Issued for Reinvested Dividends

  104,850      1,140,067      82,610      909,845   

Shares Redeemed

  (84,493   (967,472   (353,251   (4,088,302
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  312,371      3,360,997      (33,085   (437,893
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  31,649    $ 354,896      260,911    $ 3,042,935   

Shares Issued for Reinvested Dividends

  39,751      432,495      13,221      146,711   

Shares Redeemed

  (26,279   (295,566   (73,540   (844,419
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  45,121      491,825      200,592      2,345,227   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  256,211    $ 2,734,589      228    $ 2,658   

Shares Issued for Reinvested Dividends

  2,182      23,823      1,246      13,873   

Shares Redeemed

  (39,217   (424,432)             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  219,176      2,333,980      1,474      16,531   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  19,343,340    $     210,719,503      4,406,471    $     44,702,632   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Global All-Asset Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  485,316    $ 5,505,143      1,318,139    $ 16,631,353   

Shares Issued for Reinvested Dividends

  2,448,331      26,859,378      276,823      3,428,136   

Shares Redeemed

  (2,847,044   (32,553,290   (6,724,427   (84,911,278
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  86,603      (188,769   (5,129,465   (64,851,789
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  461,864    $ 5,102,443      781,719    $ 9,766,498   

Shares Issued for Reinvested Dividends

  1,254,781      13,644,178      55,887      684,002   

Shares Redeemed

  (1,906,341   (21,441,448   (2,753,265   (34,504,598
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (189,696   (2,694,827   (1,915,659   (24,054,098
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

148

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class I

Shares Sold

  530,145    $ 5,969,082      2,274,021    $ 29,063,188   

Shares Issued for Reinvested Dividends

  1,063,019      11,702,511      128,466      1,593,892   

Shares Redeemed

  (4,339,754   (49,996,015   (4,058,015   (51,456,982
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (2,746,590       (32,324,422   (1,655,528       (20,799,902
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  32,801    $ 370,374      56,596    $ 713,226   

Shares Issued for Reinvested Dividends

  37,147      407,834      3,253      40,287   

Shares Redeemed

  (104,061   (1,181,650   (80,244   (1,013,804
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (34,113   (403,442   (20,395   (260,291
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  19,574    $ 222,658      22,007    $ 278,277   

Shares Issued for Reinvested Dividends

  7,789      86,422      766      9,586   

Shares Redeemed

  (2,410   (27,080   (69,194   (873,818
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  24,953      282,000      (46,421   (585,955
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  156    $ 1,800      285    $ 3,600   

Shares Issued for Reinvested Dividends

  35,554      391,329      3,571      44,319   

Shares Redeemed

            (344   (4,269
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  35,710      393,129      3,512      43,650   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  144,434    $ 1,675,363      147,902    $ 1,849,477   

Shares Issued for Reinvested Dividends

  338,937      3,730,417      32,697      405,213   

Shares Redeemed

  (213,933   (2,355,310   (1,611,418   (20,223,128
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  269,438      3,050,470      (1,430,819   (17,968,438
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (2,553,695 $     (31,885,861   (10,194,775 $     (128,476,823
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Multi-Asset Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014 (1)
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  103,695    $ 1,011,956      1,054,836    $ 10,494,429   

Shares Issued for Reinvested Dividends

  30,334      294,608      9,778      98,432   

Shares Redeemed

  (23,620   (231,132   (7,580   (76,044
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  110,409      1,075,432      1,057,034      10,516,817   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  40,323    $ 393,607      434,542    $ 4,377,008   

Shares Issued for Reinvested Dividends

  10,141      98,389      3,173      31,900   

Shares Redeemed

  (8,799   (86,422   (231   (2,318
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  41,665      405,574      437,484      4,406,590   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  57,145    $ 563,369      223,358    $ 2,236,113   

Shares Issued for Reinvested Dividends

  7,022      68,268      3,026      30,525   

Shares Redeemed

  (8,392   (81,307   (1,445   (14,699
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  55,775      550,330      224,939      2,251,939   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

149

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014 (1)
 
  Shares   Amount   Shares   Amount  

Class R3

Shares Sold

     $      200,001    $ 2,000,010   

Shares Issued for Reinvested Dividends

  5,296      51,456      2,289      23,079   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,296      51,456      202,290      2,023,089   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

     $      200,001    $ 2,000,010   

Shares Issued for Reinvested Dividends

  5,611      54,521      2,582      26,050   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,611      54,521      202,583      2,026,060   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      200,001    $ 2,000,010   

Shares Issued for Reinvested Dividends

  5,809      56,468      2,769      27,934   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,809      56,468      202,770      2,027,944   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  709,152    $ 6,958,500      12,868,001    $     130,661,809   

Shares Issued for Reinvested Dividends

  348,823      3,391,432      152,914      1,543,370   

Shares Redeemed

  (849,595       (8,202,867   (1,119,992   (11,271,355
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase

  208,380      2,147,065      11,900,923      120,933,824   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  432,945    $ 4,340,846      14,228,023    $ 144,186,263   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on April 30, 2014.

 

12. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

13. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as

 

 

150

 


Hartford Funds – Mixed-Asset Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

14. Indemnifications:

Under the Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and the federal securities laws. In addition, the Company may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

15. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

 

151

 


Hartford Funds – Mixed-Asset Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)(2)
(2)(2)(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Balanced Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   20.54      $   0.12      $   0.68      $   0.80      $   (0.12   $   —      $   —      $   (0.12   $   21.22        3.89 %(6)    $ 610,604        1.13 %(7)      1.13 %(7)      1.12 %(7)      15

B

    20.42        0.03        0.67        0.70        (0.02                   (0.02     21.10        3.42 (6)      6,838        2.25 (7)      2.02 (7)      0.26 (7)      15   

C

    20.54        0.05        0.67        0.72        (0.05                   (0.05     21.21        3.51 (6)        150,227        1.82 (7)      1.82 (7)      0.44 (7)      15   

I(8)

    21.08        0.02        0.13        0.15                                    21.23        0.71 (6)      106        0.75 (7)      0.75 (7)      1.08 (7)      15   

R3

    20.75        0.09        0.68        0.77        (0.09                   (0.09     21.43        3.78 (6)      917        1.48 (7)      1.40 (7)      0.84 (7)      15   

R4

    20.78        0.12        0.69        0.81        (0.12                   (0.12     21.47        3.91 (6)      876        1.15 (7)      1.10 (7)      1.17 (7)      15   

R5

    20.80        0.15        0.69        0.84        (0.15                   (0.15     21.49        4.06 (6)      165        0.85 (7)      0.80 (7)      1.47 (7)      15   

Y

    20.82        0.16        0.68        0.84        (0.16                   (0.16     21.50        4.04 (6)      3,961        0.73 (7)      0.73 (7)      1.52 (7)      15   

For the Year Ended October 31, 2014

  

                     

A

  $ 18.62      $ 0.23      $ 1.92      $ 2.15      $ (0.23   $      $      $ (0.23   $ 20.54        11.60   $ 585,217        1.17     1.17     1.17     39

B

    18.50        0.06        1.91        1.97        (0.05                   (0.05     20.42        10.64        8,635        2.27        2.04        0.33        39   

C

    18.63        0.09        1.92        2.01        (0.10                   (0.10     20.54        10.82        126,773        1.86        1.86        0.47        39   

R3

    18.81        0.18        1.94        2.12        (0.18                   (0.18     20.75        11.32        593        1.50        1.40        0.93        39   

R4

    18.83        0.24        1.95        2.19        (0.24                   (0.24     20.78        11.67        786        1.16        1.10        1.22        39   

R5

    18.85        0.30        1.95        2.25        (0.30                   (0.30     20.80        12.02        157        0.86        0.80        1.53        39   

Y

    18.87        0.32        1.95        2.27        (0.32                   (0.32     20.82        12.08        2,147        0.74        0.74        1.59        39   

For the Year Ended October 31, 2013

  

                     

A

  $ 16.06      $ 0.22      $ 2.56      $ 2.78      $ (0.22   $      $      $ (0.22   $ 18.62        17.40   $ 542,452        1.21     1.18     1.24     27

B

    15.94        0.07        2.54        2.61        (0.05                   (0.05     18.50        16.43        12,206        2.27        2.04        0.42        27   

C

    16.07        0.09        2.57        2.66        (0.10                   (0.10     18.63        16.58        100,230        1.89        1.89        0.52        27   

R3

    16.23        0.17        2.59        2.76        (0.18                   (0.18     18.81        17.11        641        1.51        1.40        0.98        27   

R4

    16.23        0.24        2.59        2.83        (0.23                   (0.23     18.83        17.55        531        1.15        1.10        1.35        27   

R5

    16.26        0.28        2.59        2.87        (0.28                   (0.28     18.85        17.81        140        0.86        0.80        1.62        27   

Y

    16.27        0.30        2.59        2.89        (0.29                   (0.29     18.87        17.92        1,979        0.74        0.74        1.69        27   

For the Year Ended October 31, 2012(9)

  

                     

A

  $ 14.63      $ 0.22      $ 1.44      $ 1.66      $ (0.23   $      $      $ (0.23   $ 16.06        11.42   $ 483,041        1.24     1.18     1.40     29

B

    14.51        0.09        1.42        1.51        (0.08                   (0.08     15.94        10.43        15,803        2.24        2.05        0.55        29   

C

    14.64        0.10        1.45        1.55        (0.12                   (0.12     16.07        10.60        78,414        1.92        1.92        0.67        29   

R3

    14.78        0.18        1.47        1.65        (0.20                   (0.20     16.23        11.22        378        1.56        1.40        1.17        29   

R4

    14.79        0.24        1.44        1.68        (0.24                   (0.24     16.23        11.44        1,456        1.16        1.10        1.59        29   

R5

    14.81        0.28        1.46        1.74        (0.29                   (0.29     16.26        11.84        121        0.88        0.80        1.78        29   

Y

    14.82        0.29        1.46        1.75        (0.30                   (0.30     16.27        11.89        1,804        0.75        0.75        1.83        29   

For the Year Ended October 31, 2011

  

                     

A

  $ 14.23      $ 0.18      $ 0.40      $ 0.58      $ (0.18   $      $      $ (0.18   $ 14.63        4.10   $ 488,193        1.23     1.18     1.20     43

B

    14.10        0.05        0.41        0.46        (0.05                   (0.05     14.51        3.24        28,334        2.15        2.03        0.34        43   

C

    14.24        0.07        0.41        0.48        (0.08                   (0.08     14.64        3.33        78,642        1.90        1.90        0.47        43   

R3

    14.38        0.15        0.41        0.56        (0.16                   (0.16     14.78        3.87        228        1.52        1.40        0.98        43   

R4

    14.39        0.19        0.41        0.60        (0.20                   (0.20     14.79        4.18        4,788        1.14        1.10        1.29        43   

R5

    14.40        0.24        0.41        0.65        (0.24                   (0.24     14.81        4.52        107        0.85        0.80        1.58        43   

Y

    14.41        0.25        0.41        0.66        (0.25                   (0.25     14.82        4.60        1,763        0.74        0.74        1.64        43   

For the Year Ended October 31, 2010(9)

  

                     

A

  $ 12.67      $ 0.17      $ 1.55      $ 1.72      $ (0.16   $      $      $ (0.16   $ 14.23        13.64   $ 554,735        1.23     1.18     1.21     62

B

    12.54        0.06        1.53        1.59        (0.03                   (0.03     14.10        12.72        48,096        2.13        2.03        0.38        62   

C

    12.67        0.07        1.56        1.63        (0.06                   (0.06     14.24        12.89        92,526        1.90        1.90        0.49        62   

R3

    12.81        0.13        1.58        1.71        (0.14                   (0.14     14.38        13.38        153        1.55        1.42        0.91        62   

R4

    12.81        0.18        1.57        1.75        (0.17                   (0.17     14.39        13.72        1,420        1.13        1.12        1.28        62   

R5

    12.82        0.21        1.58        1.79        (0.21                   (0.21     14.40        14.06        102        0.85        0.81        1.51        62   

Y

    12.83        0.23        1.57        1.80        (0.22                   (0.22     14.41        14.14        1,685        0.73        0.73        1.66        62   

 

The accompanying notes are an integral part of these financial statements.

 

 

  152  

 


Hartford Funds – Mixed-Asset Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)(2)
(2)(2)(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Balanced Income Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   13.72      $   0.16      $   0.17      $   0.33      $   (0.16   $   (0.21   $   —      $   (0.37   $   13.68        2.47 %(6)    $ 2,589,197        0.94 %(7)      0.94 %(7)      2.41 %(7)      17

B

    13.69        0.18        0.14        0.32        (0.16     (0.21            (0.37     13.64        2.37 (6)      15,609        1.05 (7)      0.99 (7)      2.60 (7)      17   

C

    13.56        0.13        0.14        0.27        (0.11     (0.21            (0.32     13.51        2.08 (6)      2,292,025        1.68 (7)      1.68 (7)      1.90 (7)      17   

I

    13.72        0.20        0.15        0.35        (0.18     (0.21            (0.39     13.68        2.60 (6)      1,272,559        0.69 (7)      0.69 (7)      2.89 (7)      17   

R3

    13.77        0.16        0.14        0.30        (0.14     (0.21            (0.35     13.72        2.25 (6)      122,727        1.31 (7)      1.24 (7)      2.34 (7)      17   

R4

    13.77        0.18        0.14        0.32        (0.16     (0.21            (0.37     13.72        2.39 (6)      63,702        1.01 (7)      0.94 (7)      2.64 (7)      17   

R5

    13.78        0.19        0.16        0.35        (0.18     (0.21            (0.39     13.74        2.59 (6)      22,055        0.71 (7)      0.69 (7)      2.88 (7)      17   

R6(10)

    13.90        0.18        0.11        0.29        (0.18     (0.21            (0.39     13.80        2.17 (6)      38        1.23 (7)      0.63 (7)      2.87 (7)      17   

Y

    13.84        0.20        0.15        0.35        (0.18     (0.21            (0.39     13.80        2.62 (6)      31,749        0.61 (7)      0.61 (7)      2.97 (7)      17   

For the Year Ended October 31, 2014

  

                     

A

  $ 13.05      $ 0.34      $ 0.83      $ 1.17      $ (0.32   $ (0.18   $      $ (0.50   $ 13.72        9.19   $   2,317,429        0.97     0.97     2.56     40

B

    13.01        0.34        0.84        1.18        (0.32     (0.18            (0.50     13.69        9.25        18,846        1.07        0.99        2.56        40   

C

    12.91        0.24        0.82        1.06        (0.23     (0.18            (0.41     13.56        8.39        1,884,930        1.70        1.70        1.81        40   

I

    13.05        0.38        0.83        1.21        (0.36     (0.18            (0.54     13.72        9.47        1,031,554        0.70        0.70        2.80        40   

R3

    13.10        0.30        0.84        1.14        (0.29     (0.18            (0.47     13.77        8.90        106,894        1.32        1.24        2.26        40   

R4

    13.10        0.35        0.83        1.18        (0.33     (0.18            (0.51     13.77        9.19        54,196        1.02        0.94        2.58        40   

R5

    13.11        0.38        0.83        1.21        (0.36     (0.18            (0.54     13.78        9.44        13,069        0.73        0.69        2.83        40   

Y

    13.16        0.39        0.84        1.23        (0.37     (0.18            (0.55     13.84        9.55        24,484        0.62        0.62        2.89        40   

For the Year Ended October 31, 2013

  

                     

A

  $ 12.24      $ 0.32      $ 0.94      $ 1.26      $ (0.30   $ (0.15   $      $ (0.45   $ 13.05        10.57   $ 1,879,401        0.99     0.96     2.53     32

B

    12.20        0.32        0.94        1.26        (0.30     (0.15            (0.45     13.01        10.60        20,966        1.10        0.96        2.55        32   

C

    12.13        0.22        0.93        1.15        (0.22     (0.15            (0.37     12.91        9.70        1,326,973        1.72        1.70        1.78        32   

I

    12.24        0.35        0.94        1.29        (0.33     (0.15            (0.48     13.05        10.84        598,310        0.73        0.71        2.77        32   

R3

    12.29        0.29        0.94        1.23        (0.27     (0.15            (0.42     13.10        10.27        59,155        1.33        1.22        2.26        32   

R4

    12.28        0.32        0.95        1.27        (0.30     (0.15            (0.45     13.10        10.64        37,128        1.03        0.91        2.55        32   

R5

    12.29        0.36        0.94        1.30        (0.33     (0.15            (0.48     13.11        10.90        9,269        0.73        0.69        2.80        32   

Y

    12.34        0.36        0.95        1.31        (0.34     (0.15            (0.49     13.16        10.91        14,384        0.63        0.62        2.81        32   

For the Year Ended October 31, 2012

  

                     

A

  $ 11.02      $ 0.35      $ 1.18      $ 1.53      $ (0.31   $      $      $ (0.31   $ 12.24        14.05   $ 1,131,250        1.04     0.83     2.98     30

B

    10.98        0.30        1.16        1.46        (0.24                   (0.24     12.20        13.44        16,451        1.54        1.30        2.55        30   

C

    10.94        0.25        1.18        1.43        (0.24                   (0.24     12.13        13.22        649,208        1.79        1.58        2.19        30   

I

    11.02        0.37        1.18        1.55        (0.33                   (0.33     12.24        14.31        307,422        0.81        0.59        3.19        30   

R3

    11.06        0.31        1.20        1.51        (0.28                   (0.28     12.29        13.84        27,888        1.41        1.11        2.64        30   

R4

    11.06        0.33        1.21        1.54        (0.32                   (0.32     12.28        14.08        14,568        1.17        0.83        2.77        30   

R5

    11.06        0.38        1.18        1.56        (0.33                   (0.33     12.29        14.33        164        0.76        0.56        3.29        30   

Y

    11.05        0.37        1.26        1.63        (0.34                   (0.34     12.34        14.98        1,829        0.74        0.56        3.14        30   

For the Year Ended October 31, 2011

  

                     

A

  $ 10.55      $ 0.37      $ 0.44      $ 0.81      $ (0.34   $      $      $ (0.34   $ 11.02        7.78   $ 395,347        1.17     0.67     3.44     29

B

    10.51        0.28        0.44        0.72        (0.25                   (0.25     10.98        6.96        9,328        2.05        1.50        2.61        29   

C

    10.48        0.29        0.44        0.73        (0.27                   (0.27     10.94        7.05        140,127        1.90        1.40        2.70        29   

I

    10.54        0.39        0.45        0.84        (0.36                   (0.36     11.02        8.11        62,139        0.94        0.44        3.62        29   

R3

    10.58        0.32        0.46        0.78        (0.30                   (0.30     11.06        7.45        5,333        1.50        1.00        2.96        29   

R4

    10.58        0.37        0.44        0.81        (0.33                   (0.33     11.06        7.82        463        1.22        0.70        3.37        29   

R5

    10.58        0.41        0.44        0.85        (0.37                   (0.37     11.06        8.13        119        0.91        0.40        3.75        29   

Y

    10.57        0.42        0.43        0.85        (0.37                   (0.37     11.05        8.23        136        0.81        0.31        3.84        29   

For the Year Ended October 31, 2010(9)

  

                     

A

  $ 9.44      $ 0.33      $ 1.11      $ 1.44      $ (0.33   $      $      $ (0.33   $ 10.55        15.55   $ 178,227        1.24     0.74     3.73     34

B

    9.40        0.29        1.07        1.36        (0.25                   (0.25     10.51        14.69        5,008        2.13        1.50        3.07        34   

C

    9.40        0.26        1.10        1.36        (0.28                   (0.28     10.48        14.66        52,740        1.98        1.48        2.82        34   

I(11)

    9.81        0.25        0.74        0.99        (0.26                   (0.26     10.54        10.23 (6)      17,593        0.99 (7)      0.49 (7)      3.52 (7)      34   

R3(12)

    9.75        0.13        0.84        0.97        (0.14                   (0.14     10.58        10.03 (6)      166        1.58 (7)      1.01 (7)      3.03 (7)      34   

R4(12)

    9.75        0.14        0.84        0.98        (0.15                   (0.15     10.58        10.17 (6)      112        1.28 (7)      0.71 (7)      3.40 (7)      34   

R5(12)

    9.75        0.16        0.84        1.00        (0.17                   (0.17     10.58        10.33 (6)      110        0.96 (7)      0.41 (7)      3.70 (7)      34   

Y

    9.46        0.42        1.05        1.47        (0.36                   (0.36     10.57        15.87        126        0.86        0.35        4.24        34   

 

The accompanying notes are an integral part of these financial statements.

 

 

  153  

 


Hartford Funds – Mixed-Asset Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)(2)
(2)(2)(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Checks and Balances Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   11.89      $   0.08      $   0.31      $   0.39      $   (0.37   $   (0.90   $   —      $   (1.27   $   11.01        3.65 %(6)    $   1,458,194        0.38 %(7)      0.38 %(7)      1.37 %(7)      6

B

    11.83        0.05        0.29        0.34        (0.32     (0.90            (1.22     10.95        3.26 (6)      102,965        1.18 (7)      1.18 (7)      0.93 (7)      6   

C

    11.83        0.03        0.32        0.35        (0.33     (0.90            (1.23     10.95        3.30 (6)      352,467        1.13 (7)      1.13 (7)      0.56 (7)      6   

I

    11.90        0.10        0.31        0.41        (0.38     (0.90            (1.28     11.03        3.83 (6)      36,435        0.21 (7)      0.21 (7)      1.73 (7)      6   

R3

    11.86        (0.01     0.38        0.37        (0.35     (0.90            (1.25     10.98        3.49 (6)      13,277        0.75 (7)      0.75 (7)      (0.25 )(7)      6   

R4

    11.87        0.06        0.33        0.39        (0.37     (0.90            (1.27     10.99        3.63 (6)      4,138        0.44 (7)      0.44 (7)      1.17 (7)      6   

R5

    11.90          (0.38     0.78        0.40        (0.38     (0.90            (1.28     11.02        3.77 (6)      2,567        0.14 (7)      0.14 (7)      (7.01 )(7)      6   

For the Year Ended October 31, 2014

  

                     

A

  $ 11.75      $ 0.14      $ 1.07      $ 1.21      $ (0.21   $ (0.86   $      $ (1.07   $ 11.89        11.07   $ 1,404,632        0.39     0.39     1.25     15

B

    11.64        0.05        1.05        1.10        (0.05     (0.86            (0.91     11.83        10.09        108,791        1.19        1.19        0.46        15   

C

    11.65        0.06        1.04        1.10        (0.06     (0.86            (0.92     11.83        10.17        334,810        1.14        1.14        0.50        15   

I

    11.78        0.18        1.06        1.24        (0.26     (0.86            (1.12     11.90        11.35        34,269        0.14        0.14        1.53        15   

R3

    11.69        0.10        1.06        1.16        (0.13     (0.86            (0.99     11.86        10.70        10,635        0.75        0.75        0.88        15   

R4

    11.73        0.13        1.07        1.20        (0.20     (0.86            (1.06     11.87        11.06        3,932        0.45        0.45        1.14        15   

R5

    11.78        0.17        1.07        1.24        (0.26     (0.86            (1.12     11.90        11.34        163        0.15        0.15        1.48        15   

For the Year Ended October 31, 2013

  

                     

A

  $ 9.92      $ 0.16      $ 1.88      $ 2.04      $ (0.18   $ (0.03   $      $ (0.21   $ 11.75        20.89   $ 1,354,101        0.41     0.41     1.51     12

B

    9.88        0.08        1.86        1.94        (0.15     (0.03            (0.18     11.64        20.01        117,550        1.21        1.21        0.72        12   

C

    9.89        0.08        1.87        1.95        (0.16     (0.03            (0.19     11.65        20.00        308,250        1.16        1.16        0.76        12   

I

    9.93        0.18        1.88        2.06        (0.18     (0.03            (0.21     11.78        21.15        29,305        0.15        0.15        1.70        12   

R3

    9.90        0.13        1.86        1.99        (0.17     (0.03            (0.20     11.69        20.43        10,875        0.75        0.75        1.19        12   

R4

    9.91        0.16        1.86        2.02        (0.17     (0.03            (0.20     11.73        20.79        1,535        0.46        0.46        1.46        12   

R5

    9.93        0.19        1.87        2.06        (0.18     (0.03            (0.21     11.78        21.16        144        0.15        0.15        1.74        12   

For the Year Ended October 31, 2012(9)

  

                     

A

  $ 9.22      $ 0.20      $ 0.74      $ 0.94      $ (0.20   $ (0.04   $      $ (0.24   $ 9.92        10.43   $ 1,277,312        0.41     0.41     2.15     12

B

    9.19        0.13        0.72        0.85        (0.12     (0.04            (0.16     9.88        9.45        114,693        1.22        1.22        1.35        12   

C

    9.19        0.13        0.74        0.87        (0.13     (0.04            (0.17     9.89        9.63        284,190        1.16        1.16        1.41        12   

I

    9.23        0.23        0.74        0.97        (0.23     (0.04            (0.27     9.93        10.70        21,254        0.16        0.16        2.38        12   

R3

    9.20        0.17        0.74        0.91        (0.17     (0.04            (0.21     9.90        10.08        10,764        0.76        0.76        1.71        12   

R4

    9.22        0.20        0.73        0.93        (0.20     (0.04            (0.24     9.91        10.29        1,375        0.47        0.47        1.92        12   

R5

    9.23        0.23        0.74        0.97        (0.23     (0.04            (0.27     9.93        10.70        119        0.16        0.16        2.37        12   

For the Year Ended October 31, 2011(9)

  

                     

A

  $ 9.22      $ 0.13      $      $ 0.13      $ (0.13   $      $      $ (0.13   $ 9.22        1.44   $ 1,337,009        0.41     0.41     1.36     19

B

    9.18        0.05        0.02        0.07        (0.06                   (0.06     9.19        0.71        123,183        1.21        1.21        0.55        19   

C

    9.19        0.06               0.06        (0.06                   (0.06     9.19        0.66        310,632        1.16        1.16        0.61        19   

I

    9.22        0.15        0.02        0.17        (0.16                   (0.16     9.23        1.81        19,854        0.15        0.15        1.61        19   

R3

    9.21        0.10               0.10        (0.11                   (0.11     9.20        1.05        9,211        0.76        0.76        1.00        19   

R4

    9.21        0.12        0.02        0.14        (0.13                   (0.13     9.22        1.53        822        0.47        0.46        1.29        19   

R5

    9.22        0.15        0.02        0.17        (0.16                   (0.16     9.23        1.83        107        0.15        0.15        1.62        19   

For the Year Ended October 31, 2010

  

                     

A

  $ 8.29      $ 0.13      $ 0.93      $ 1.06      $ (0.13   $      $      $ (0.13   $ 9.22        12.85   $ 1,429,438        0.42     0.42     1.51     19

B

    8.26        0.06        0.92        0.98        (0.06                   (0.06     9.18        11.87        143,627        1.23        1.23        0.69        19   

C

    8.26        0.07        0.92        0.99        (0.06                   (0.06     9.19        12.06        355,504        1.16        1.16        0.75        19   

I

    8.29        0.15        0.93        1.08        (0.15                   (0.15     9.22        13.09        21,297        0.17        0.17        1.75        19   

R3

    8.29        0.10        0.92        1.02        (0.10                   (0.10     9.21        12.40        2,206        0.81        0.78        1.15        19   

R4

    8.29        0.14        0.91        1.05        (0.13                   (0.13     9.21        12.76        241        0.50        0.47        1.75        19   

R5

    8.29        0.16        0.92        1.08        (0.15                   (0.15     9.22        13.13        115        0.16        0.15        1.76        19   

 

The accompanying notes are an integral part of these financial statements.

 

 

  154  

 


Hartford Funds – Mixed-Asset Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)(2)
(2)(2)(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Global All-Asset Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   12.68      $ 0.02      $   0.39      $ 0.41      $   (0.31   $   (1.42   $   —      $   (1.73   $   11.36        4.09 %(6)    $   186,142        1.44 %(7)      1.25 %(7)      0.38 %(7)      31

C

    12.56          (0.01     0.38        0.37        (0.22     (1.42            (1.64     11.29        3.73 (6)      114,970        2.17 (7)      2.00 (7)      (0.21 )(7)      31   

I

    12.72        0.04        0.39        0.43        (0.35     (1.42            (1.77     11.38        4.24 (6)      73,892        1.16 (7)      0.99 (7)      0.67 (7)      31   

R3

    12.67        0.01        0.39        0.40        (0.26     (1.42            (1.68     11.39        4.00 (6)      2,615        1.77 (7)      1.50 (7)      0.18 (7)      31   

R4

    12.80        0.04        0.38        0.42        (0.32     (1.42            (1.74     11.48        4.14 (6)      1,509        1.48 (7)      1.20 (7)      0.70 (7)      31   

R5

    12.72        0.05        0.38        0.43        (0.35     (1.42            (1.77     11.38        4.28 (6)      2,849        1.16 (7)      0.95 (7)      0.92 (7)      31   

Y

    12.72        0.05        0.38        0.43        (0.36     (1.42            (1.78     11.37        4.24 (6)      30,920        1.06 (7)      0.90 (7)      0.94 (7)      31   

For the Year Ended October 31, 2014

  

                     

A

  $ 12.34      $ 0.11      $ 0.40      $ 0.51      $ (0.13   $ (0.04   $      $ (0.17   $ 12.68        4.18   $ 206,595        1.40     1.25     0.85     75

C

    12.23        0.01        0.39        0.40        (0.03     (0.04            (0.07     12.56        3.30        130,260        2.13        2.00        0.10        75   

I

    12.38        0.14        0.40        0.54        (0.16     (0.04            (0.20     12.72        4.43        117,499        1.10        0.98        1.11        75   

R3

    12.34        0.08        0.39        0.47        (0.10     (0.04            (0.14     12.67        3.86        3,340        1.73        1.50        0.61        75   

R4

    12.47        0.11        0.41        0.52        (0.15     (0.04            (0.19     12.80        4.18        1,363        1.44        1.20        0.90        75   

R5

    12.38        0.14        0.41        0.55        (0.17     (0.04            (0.21     12.72        4.49        2,730        1.12        0.95        1.14        75   

Y

    12.38        0.15        0.41        0.56        (0.18     (0.04            (0.22     12.72        4.54        31,145        1.02        0.90        1.18        75   

For the Year Ended October 31, 2013

  

                     

A

  $ 11.30      $ 0.08      $ 1.25      $ 1.33      $ (0.29   $      $      $ (0.29   $ 12.34        12.02   $ 264,437        1.37     1.22     0.72     47

C

    11.18               1.24        1.24        (0.19                   (0.19     12.23        11.26        150,191        2.11        1.97        (0.03     47   

I

    11.33        0.12        1.25        1.37        (0.32                   (0.32     12.38        12.37        134,853        1.08        0.96        0.99        47   

R3

    11.29        0.05        1.26        1.31        (0.26                   (0.26     12.34        11.78        3,504        1.70        1.47        0.45        47   

R4

    11.39        0.07        1.29        1.36        (0.28                   (0.28     12.47        12.16        1,906        1.42        1.18        0.57        47   

R5

    11.34        0.12        1.25        1.37        (0.33                   (0.33     12.38        12.30        2,615        1.09        0.93        0.99        47   

Y

    11.34        0.12        1.25        1.37        (0.33                   (0.33     12.38        12.36        48,035        0.99        0.88        1.04        47   

For the Year Ended October 31, 2012

  

                     

A

  $ 10.63      $ 0.06      $ 0.67      $ 0.73      $ (0.06   $      $      $ (0.06   $ 11.30        6.97   $ 293,773        1.38     1.09     0.58     94

C

    10.53        (0.02     0.67        0.65                                    11.18        6.17        169,673        2.12        1.84        (0.16     94   

I

    10.66        0.09        0.68        0.77        (0.10                   (0.10     11.33        7.28        180,463        1.09        0.83        0.84        94   

R3

    10.61        0.04        0.67        0.71        (0.03                   (0.03     11.29        6.75        3,961        1.74        1.36        0.33        94   

R4

    10.64        0.07        0.68        0.75                                    11.39        7.05        1,378        1.45        1.06        0.62        94   

R5

    10.67        0.09        0.68        0.77        (0.10                   (0.10     11.34        7.31        2,485        1.11        0.83        0.85        94   

Y

    10.67        0.10        0.68        0.78        (0.11                   (0.11     11.34        7.38        84,780        1.01        0.77        0.91        94   

For the Year Ended October 31, 2011

  

                     

A

  $ 11.04      $ 0.03      $   (0.32   $   (0.29   $ (0.03   $ (0.09   $      $ (0.12   $ 10.63        (2.67 )%    $ 373,186        1.45     1.02     0.31     206

C

    11.00        (0.05     (0.32     (0.37     (0.01     (0.09            (0.10     10.53        (3.36     216,578        2.19        1.75        (0.43     206   

I

    11.05        0.06        (0.32     (0.26     (0.04     (0.09            (0.13     10.66        (2.44     263,596        1.17        0.73        0.57        206   

R3

    11.02        0.01        (0.33     (0.32            (0.09            (0.09     10.61        (2.93     3,140        1.79        1.30        0.09        206   

R4

    11.04        0.06        (0.36     (0.30     (0.01     (0.09            (0.10     10.64        (2.71     1,205        1.49        1.00        0.50        206   

R5

    11.05        0.08        (0.34     (0.26     (0.03     (0.09            (0.12     10.67        (2.36     2,335        1.19        0.70        0.74        206   

Y

    11.05        0.08        (0.33     (0.25     (0.04     (0.09            (0.13     10.67        (2.34     12,219        1.08        0.65        0.76        206   

For the Year Ended October 31, 2010

  

                     

A(12)

  $ 10.00      $ (0.01   $ 1.05      $ 1.04      $      $      $      $      $ 11.04        10.40 %(6)    $ 92,704        1.51 %(7)      0.95 %(7)      (0.16 )%(7)      37 %(6) 

C(12)

    10.00        (0.04     1.04        1.00                                    11.00        10.00 (6)      46,828        2.26 (7)      1.70 (7)      (0.92 )(7)      37 (6) 

I(12)

    10.00               1.05        1.05                                    11.05        10.50 (6)      66,511        1.24 (7)      0.68 (7)      (0.01 )(7)      37 (6) 

R3(12)

    10.00        (0.01     1.03        1.02                                    11.02        10.20 (6)      2,216        1.91 (7)      1.31 (7)      (0.18 )(7)      37 (6) 

R4(12)

    10.00        0.01        1.03        1.04                                    11.04        10.40 (6)      2,208        1.61 (7)      1.01 (7)      0.12 (7)      37 (6) 

R5(12)

    10.00        0.02        1.03        1.05                                    11.05        10.50 (6)      2,210        1.31 (7)      0.71 (7)      0.42 (7)      37 (6) 

Y(12)

    10.00        0.01        1.04        1.05                                    11.05        10.50 (6)      9,948        1.22 (7)      0.66 (7)      0.47 (7)      37 (6) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  155  

 


Hartford Funds – Mixed-Asset Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)(2)
(2)(2)(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(5)(5)(3)
(4)(5)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
Hartford Multi-Asset Income Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $ 9.95      $   0.12      $ 0.06      $   0.18      $   (0.27   $   —      $   —      $ (0.27   $   9.86        1.85 %(6)    $ 11,508        1.21 %(7)      1.12 %(7)      2.58 %(7)      32

C

    9.94        0.15        (0.01     0.14        (0.23                   (0.23     9.85        1.47 (6)      4,721        1.93 (7)      1.87 (7)      3.08 (7)      32   

I

    9.95        0.20        (0.01     0.19        (0.28                   (0.28     9.86        1.98 (6)      2,768        0.90 (7)      0.86 (7)      4.09 (7)      32   

R3

    9.95        0.17        (0.01     0.16        (0.25                   (0.25     9.86        1.69 (6)      2,047        1.59 (7)      1.42 (7)      3.52 (7)      32   

R4

    9.95        0.19        (0.01     0.18        (0.27                   (0.27     9.86        1.84 (6)      2,053        1.29 (7)      1.12 (7)      3.82 (7)      32   

R5

    9.95        0.19               0.19        (0.28                   (0.28     9.86        1.93 (6)      2,057        0.99 (7)      0.93 (7)      4.01 (7)      32   

Y

    9.95        0.20        (0.01     0.19        (0.28                   (0.28     9.86        1.98 (6)      119,454        0.89 (7)      0.83 (7)      4.11 (7)      32   

For the Year Ended October 31, 2014

  

                     

A(13)

  $   10.00      $ 0.18      $   (0.10   $ 0.08      $ (0.13   $      $      $   (0.13   $ 9.95        0.80 %(6)    $ 10,514        1.17 %(7)      1.12 %(7)      3.37 %(7)      26 %(6) 

C(13)

    10.00        0.14        (0.10     0.04        (0.10                   (0.10     9.94        0.37 (6)      4,350        1.93 (7)      1.87 (7)      2.68 (7)      26 (6) 

I(13)

    10.00        0.18        (0.09     0.09        (0.14                   (0.14     9.95        0.92 (6)      2,238        0.93 (7)      0.87 (7)      3.49 (7)      26 (6) 

R3(13)

    10.00        0.16        (0.09     0.07        (0.12                   (0.12     9.95        0.64 (6)      2,012        1.62 (7)      1.42 (7)      2.93 (7)      26 (6) 

R4(13)

    10.00        0.17        (0.09     0.08        (0.13                   (0.13     9.95        0.78 (6)      2,016        1.32 (7)      1.12 (7)      3.23 (7)      26 (6) 

R5(13)

    10.00        0.18        (0.09     0.09        (0.14                   (0.14     9.95        0.88 (6)      2,017        1.02 (7)      0.93 (7)      3.42 (7)      26 (6) 

Y(13)

    10.00        0.20        (0.10     0.10        (0.15                   (0.15     9.95        0.93 (6)        118,437        0.88 (7)      0.83 (7)      3.74 (7)      26 (6) 

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable.
(4)  Ratios do not include expenses of the Underlying Funds.
(5)  Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements).
(6)  Not annualized.
(7)  Annualized.
(8)  Commenced operations on March 31, 2015.
(9)  Net investment income (loss) per share amounts have been calculated using the SEC method.
(10)  Commenced operations on November 7, 2014.
(11)  Commenced operations on February 26, 2010.
(12)  Commenced operations on May 28, 2010.
(13)  Commenced operations on April 30, 2014.

 

The accompanying notes are an integral part of these financial statements.

 

 

  156  

 


Hartford Funds – Mixed-Asset Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of the Company (the “Directors”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by the Directors. Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

157

 


Hartford Funds – Mixed-Asset Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

158

 


Hartford Funds – Mixed-Asset Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds’ Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

159

 


Hartford Funds – Mixed-Asset Funds

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

The Hartford Balanced Fund

 

   Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,038.90    $     5.71    $     1,000.00    $     1,019.19    $ 5.66      1.13   181      365   

Class B

$ 1,000.00    $ 1,034.20    $ 10.19    $ 1,000.00    $ 1,014.78    $     10.09      2.02   181      365   

Class C

$ 1,000.00    $ 1,035.10    $ 9.18    $ 1,000.00    $ 1,015.77    $ 9.10      1.82   181      365   

Class I(1)

$ 1,000.00    $ 1,007.10    $ 0.62    $ 1,000.00    $ 1,003.49    $ 0.62      0.75   30      365   

Class R3

$ 1,000.00    $ 1,037.80    $ 7.07    $ 1,000.00    $ 1,017.85    $ 7.00      1.40   181      365   

Class R4

$ 1,000.00    $ 1,039.10    $ 5.56    $ 1,000.00    $ 1,019.34    $ 5.51      1.10   181      365   

Class R5

$ 1,000.00    $ 1,040.60    $ 4.05    $ 1,000.00    $ 1,020.83    $ 4.01      0.80   181      365   

Class Y

$ 1,000.00    $ 1,040.40    $ 3.69    $ 1,000.00    $ 1,021.18    $ 3.66      0.73   181      365   

 

(1)  Commenced operations on March 31, 2015.

 

 

160

 


Hartford Funds – Mixed-Asset Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Balanced Income Fund

 

   Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,024.70    $     4.72    $     1,000.00    $     1,020.13    $     4.71      0.94   181      365   

Class B

$ 1,000.00    $ 1,023.70    $ 4.97    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

Class C

$ 1,000.00    $ 1,020.80    $ 8.42    $ 1,000.00    $ 1,016.46    $ 8.40      1.68   181      365   

Class I

$ 1,000.00    $ 1,026.00    $ 3.47    $ 1,000.00    $ 1,021.37    $ 3.46      0.69   181      365   

Class R3

$ 1,000.00    $ 1,022.50    $ 6.22    $ 1,000.00    $ 1,018.65    $ 6.21      1.24   181      365   

Class R4

$ 1,000.00    $ 1,023.90    $ 4.72    $ 1,000.00    $ 1,020.13    $ 4.71      0.94   181      365   

Class R5

$ 1,000.00    $ 1,025.90    $ 3.47    $ 1,000.00    $ 1,021.37    $ 3.46      0.69   181      365   

Class R6(1)

$ 1,000.00    $ 1,021.70    $ 3.00    $ 1,000.00    $ 1,020.59    $ 3.00      0.63   172      365   

Class Y

$ 1,000.00    $ 1,026.20    $ 3.06    $ 1,000.00    $ 1,021.77    $ 3.06      0.61   181      365   

 

(1)  Commenced operations on November 7, 2014.

The Hartford Checks and Balances Fund

 

   Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio(1)
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,036.50    $     1.92    $     1,000.00    $     1,022.91    $     1.91      0.38   181      365   

Class B

$ 1,000.00    $ 1,032.60    $ 5.95    $ 1,000.00    $ 1,018.94    $ 5.91      1.18   181      365   

Class C

$ 1,000.00    $ 1,033.00    $ 5.70    $ 1,000.00    $ 1,019.19    $ 5.66      1.13   181      365   

Class I

$ 1,000.00    $ 1,038.30    $ 1.06    $ 1,000.00    $ 1,023.75    $ 1.05      0.21   181      365   

Class R3

$ 1,000.00    $ 1,034.90    $ 3.78    $ 1,000.00    $ 1,021.08    $ 3.76      0.75   181      365   

Class R4

$ 1,000.00    $ 1,036.30    $ 2.22    $ 1,000.00    $ 1,022.61    $ 2.21      0.44   181      365   

Class R5

$ 1,000.00    $ 1,037.70    $ 0.71    $ 1,000.00    $ 1,024.10    $ 0.70      0.14   181      365   

 

(1)  Ratios do not include expenses of the Underlying Funds.

The Hartford Global All-Asset Fund

 

   Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,040.90    $ 6.33    $     1,000.00    $     1,018.60    $     6.26      1.25   181      365   

Class C

$ 1,000.00    $ 1,037.30    $     10.10    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class I

$ 1,000.00    $ 1,042.40    $ 5.01    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

Class R3

$ 1,000.00    $ 1,040.00    $ 7.59    $ 1,000.00    $ 1,017.36    $ 7.50      1.50   181      365   

Class R4

$ 1,000.00    $ 1,041.40    $ 6.07    $ 1,000.00    $ 1,018.84    $ 6.01      1.20   181      365   

Class R5

$ 1,000.00    $ 1,042.80    $ 4.81    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class Y

$ 1,000.00    $ 1,042.40    $ 4.56    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

 

 

161

 


Hartford Funds – Mixed-Asset Funds

Expense Example (Unaudited) – (continued)

 

 

 

Hartford Multi-Asset Income Fund

 

   Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,018.50    $     5.61    $     1,000.00    $     1,019.24    $     5.61      1.12   181      365   

Class C

$ 1,000.00    $ 1,014.70    $ 9.34    $ 1,000.00    $ 1,015.52    $ 9.35      1.87   181      365   

Class I

$ 1,000.00    $ 1,019.80    $ 4.31    $ 1,000.00    $ 1,020.53    $ 4.31      0.86   181      365   

Class R3

$ 1,000.00    $ 1,016.90    $ 7.10    $ 1,000.00    $ 1,017.75    $ 7.10      1.42   181      365   

Class R4

$ 1,000.00    $ 1,018.40    $ 5.61    $ 1,000.00    $ 1,019.24    $ 5.61      1.12   181      365   

Class R5

$ 1,000.00    $ 1,019.30    $ 4.66    $ 1,000.00    $ 1,020.18    $ 4.66      0.93   181      365   

Class Y

$ 1,000.00    $ 1,019.80    $ 4.16    $ 1,000.00    $ 1,020.68    $ 4.16      0.83   181      365   

 

 

162

 


Hartford Funds – Mixed-Asset Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: (Global All-Asset Fund and Multi-Asset Income Fund only) Actively trading investments may result in higher costs and higher taxable income.

Asset Allocation Strategy Risk: (All but Checks & Balances Fund) The portfolio managers’ asset allocation strategy may not always work as intended, and asset allocation does not guarantee better performance or reduce the risk of investment loss.

Cayman Subsidiary Risk: (Global All-Asset Fund only) Investing in a Cayman Islands subsidiary exposes the Fund to the risks associated with the subsidiary and its investments.

Commodities Risk: (Global All-Asset Fund only) Investments in commodities may be more volatile than investments in traditional securities.

Derivatives Risk: (Global All-Asset Fund and Multi-Asset Income Fund only) Investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

Dividend Paying Security Investment Risk: (Balanced Income Fund and Multi-Asset Income Fund only) Dividends are not guaranteed and are subject to change. Dividend paying securities as a group can fall out of favor with the market, causing the Fund to underperform.

Fixed Income Risk: Each Fund, except Checks and Balances Fund, is subject to interest rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk (the risk that the issuing company of a security is unable to pay interest and principal when due) and call risk (the risk that an investment may be redeemed early).

Foreign Investment Risk: (Balanced Income Fund, Global All-Asset Fund and Multi-Asset Income Fund) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions.

Foreign Investment and Emerging Markets Risk: (Balanced Income Fund, Global All-Asset Fund and Multi-Asset Income Fund) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets.

Foreign Investment, Emerging Markets and Sovereign Debt Risk: (Multi-Asset Income Fund only) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets. Sovereign debt investments are subject to credit risk and the risk of default.

Fund of Funds Risk: (Checks and Balances Fund only) The Fund invests in a number of Underlying Funds, and is subject to the risks of the Underlying Funds in direct proportion to the amount of assets it invests in each Underlying Fund. The Underlying Funds may invest in the following: foreign securities including emerging markets, fixed income securities (which carry credit and interest rate risk) including junk bonds, small- and mid-cap stocks, mortgage and asset-backed securities, and derivatives.

Junk Bond Risk: Investments in junk bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Loan Risk: (Multi-Asset Income Fund only) The Fund’s investments in loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency.

Market, Selection and Strategy Risk: Each Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Mortgage-Backed Securities Risk: (Balanced Fund and Multi-Asset Income Fund) Mortgage-backed securities are subject to interest rate risk, credit risk, prepayment risk, extension risk, and the risk that an investment’s value may be reduced or become worthless if it receives interest or income payments only after other investments in the same pool

 

 

163

 


Hartford Funds – Mixed-Asset Funds

Main Risks (Unaudited) – (continued)

 

 

 

Quantitative Analysis Risk: (Multi-Asset Income Fund only) The Fund uses quantitative analysis in its securities selection; securities selected by this method may perform differently from the broader stock market.

Value Investing Risk: (Balanced Income Fund only) Value investments are considered to be undervalued, but they may never attain their potential value. Value-style investing falls in and out of favor, which may result in periods of underperformance.

 

 

164

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

 

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-MA15    6/15    117965    Printed in U.S.A.

hartfordfunds.com


LOGO


LOGO

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

 

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

 

LOGO

James Davey

President

Hartford Funds

 

1  The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Asset Allocation Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

The Hartford Conservative Allocation Fund

  11   

The Hartford Growth Allocation Fund

  15   

Hartford Moderate Allocation Fund

  19   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  23   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  24   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  26   

Notes to Financial Statements (Unaudited)

  28   

Financial Highlights (Unaudited)

  42   

Directors and Officers (Unaudited)

  46   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  48   

Quarterly Portfolio Holdings Information (Unaudited)

  48   

Expense Examples (Unaudited)

  49   

Main Risks (Unaudited)

  51   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.


The Hartford Conservative Allocation Fund inception 05/28/2004

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks current income and long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Conservative Allocation A2

     1.32%         0.58%         4.09%         4.33%   

Conservative Allocation A3

     -4.25%         -4.95%         2.91%         3.74%   

Conservative Allocation B2

     0.91%         -0.11%         3.25%         3.70% 4 

Conservative Allocation B3

     -3.85%         -4.82%         2.89%         3.70% 4 

Conservative Allocation C2

     0.95%         -0.07%         3.32%         3.58%   

Conservative Allocation C3

     0.00%         -1.02%         3.32%         3.58%   

Conservative Allocation I2

     1.41%         0.90%         4.36%         4.57%   

Conservative Allocation R32

     1.15%         0.31%         3.74%         4.00%   

Conservative Allocation R42

     1.30%         0.63%         4.05%         4.29%   

Conservative Allocation R52

     1.40%         0.90%         4.35%         4.55%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         4.75%   

Conservative Allocation Fund Blended Index

     3.08%         5.61%         6.15%         5.89%   

MSCI All Country World Index

     5.24%         8.01%         10.16%         7.54%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a modified investment strategy. As of June 4, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Conservative Allocation Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 70% Barclays U.S. Aggregate Bond Index and 30% MSCI All Country World Index.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  2  

 


The Hartford Conservative Allocation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Conservative Allocation Class A

     1.30%         1.30%   

Conservative Allocation Class B

     2.10%         2.14%   

Conservative Allocation Class C

     2.05%         2.05%   

Conservative Allocation Class I

     1.03%         1.03%   

Conservative Allocation Class R3

     1.60%         1.65%   

Conservative Allocation Class R4

     1.30%         1.35%   

Conservative Allocation Class R5

     1.00%         1.05%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Richard P. Meagher, CFA

Managing Director, Asset Allocation Strategist and Portfolio Manager

Wellington Management Company LLP

Wendy M. Cromwell, CFA

Senior Managing Director, Director of Strategic Asset Allocation, and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Conservative Allocation Fund returned 1.32%, before sales charge, for the six-month period ended April 30, 2015 underperforming the Fund’s blended benchmark, 30% MSCI All Country World Index, 70% Barclays U.S. Aggregate Bond Index, which returned 3.08% for the same period. Individually, the MSCI All Country World Index and the Barclays U.S. Aggregate Bond Index returned 5.24% and 2.06%, respectively, for the same period. The Fund also underperformed the 2.00% average return of the Lipper Mixed-Asset Target Allocation Conservative Funds category, a group of funds with equity weights of 20%-40%.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany;

however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve. Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

 

 

 

  3  

 


The Hartford Conservative Allocation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

There are two main drivers of Fund performance: the asset allocation among various asset classes and the performance of the underlying funds. Potential value added from asset allocation includes the value added by both the Fund’s strategic asset allocation across a diverse set of asset classes and how those allocations are implemented within the asset classes. With regard to the strategic allocation, the stock/bond mix of the Fund was approximately 30% equities and 70% fixed income during the period, in line with the Fund’s blended benchmark. Performance of the underlying funds measures the results of the underlying funds versus their respective benchmarks. The Fund’s portfolio managers select the underlying funds.

In aggregate, asset allocation detracted from performance relative to the blended benchmark. Exposure to natural resource related equities, Treasury Inflation Protected Securities (TIPS) and global nominal bonds were the drivers of underperformance during the period. This was partially offset by an overweight to small cap non-U.S. equities, which contributed on a relative basis.

Beyond asset class decisions, we seek to add value by selecting the underlying funds available in our investment universe using both quantitative and qualitative criteria. In aggregate, performance from the underlying funds contributed on a benchmark relative basis. Strong performance relative to the blended benchmark from The Hartford World Bond, Hartford Real Total Return, and The Hartford International Value Funds more than offset weak results relative to the blended benchmark in The Hartford Inflation Plus, The Hartford Total Return Bond, and The Hartford International Small Company Funds.

Derivatives were not utilized at the aggregate fund level although they are utilized at the underlying fund level.

What is the outlook?

We expect the global economy to gradually work its way free of the cycle of currency weakness, falling commodity prices, and deflationary fears, and expect that growth should begin to accelerate globally in late 2015. While global equity valuations remain elevated, they should be sustainable if our stable-to-positive view on growth is

correct. Within equities, we favor developed markets and see more upside in non-U.S. developed market equities than in U.S. equities. We retain a constructive view on capital markets and risk assets. The Fund ended the period with an overweight to international equities and an underweight to both large cap U.S. equities and fixed income relative to the blended benchmark.

 

 

 

4

 


The Hartford Growth Allocation Fund inception 05/28/2004

 

(advised by Hartford Funds Management Company LLC (“HFMC”))   Investment objective – The Fund seeks long-term capital appreciation.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Growth Allocation A2

     4.64%         6.40%         9.16%         6.72%   

Growth Allocation A3

     -1.11%         0.55%         7.94%         6.12%   

Growth Allocation B2

     4.15%         5.42%         8.26%         6.07% 4 

Growth Allocation B3

     0.17%         1.40%         7.97%         6.07% 4 

Growth Allocation C2

     4.28%         5.63%         8.37%         5.95%   

Growth Allocation C3

     3.49%         4.83%         8.37%         5.95%   

Growth Allocation I2

     4.76%         6.67%         9.51%         7.03%   

Growth Allocation R32

     4.43%         6.00%         8.83%         6.43%   

Growth Allocation R42

     4.55%         6.32%         9.18%         6.73%   

Growth Allocation R52

     4.78%         6.69%         9.51%         7.00%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         4.75%   

Growth Allocation Fund Blended Index

     4.66%         7.37%         9.13%         7.22%   

MSCI All Country World Index

     5.24%         8.01%         10.16%         7.54%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-advisers, Hartford Investment Management Company, and Wellington Management Company LLP (“Wellington Management”). As of June 4, 2012, Hartford Investment Management Company served as the sub-adviser to the Fund and as of May 1, 2014, Wellington Management served as sub-adviser to the Fund.

Effective May 31, 2014, Wellington Management no longer serves as the sub-adviser to the Fund. In connection with these changes, HFMC has assumed the day-to-day management of the Fund.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Growth Allocation Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 20% Barclays U.S. Aggregate Bond Index and 80% MSCI All Country World Index.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  5  

 


The Hartford Growth Allocation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Growth Allocation Class A

     1.40%         1.40%   

Growth Allocation Class B

     2.25%         2.25%   

Growth Allocation Class C

     2.13%         2.13%   

Growth Allocation Class I

     1.08%         1.08%   

Growth Allocation Class R3

     1.70%         1.70%   

Growth Allocation Class R4

     1.40%         1.40%   

Growth Allocation Class R5

     1.10%         1.10%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Vernon J. Meyer, CFA

Managing Director and Chief Investment Officer

Hartford Funds Management Company

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Growth Allocation Fund returned 4.64%, before sales charge, for the six-month period ended April 30, 2015 underperforming the Fund’s blended benchmark, 80% MSCI All Country World Index/20% Barclays U.S. Aggregate Bond Index, which returned 4.66% for the same period. In comparison, the MSCI All Country World Index and the Barclays U.S. Aggregate Bond Index returned 5.24% and 2.06%, respectively, for the same period. The Fund outperformed the 3.50% average return for the Lipper Mixed-Asset Target Growth Funds category, a group of funds with equity weights of 60%-80%.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme, and despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities

underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the Fed charted a course for policy normalization (i.e. bringing interest rates to normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of 2015 before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

 

 

 

  6  

 


The Hartford Growth Allocation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Global government bond prices gained over the quarter as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve. Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

Allocations to Hartford Global Capital Appreciation Fund and Hartford Real Total Return Fund contributed the most to relative performance. Allocations to The Hartford Small Company Fund and The Hartford World Bond Fund detracted from relative performance versus the Fund’s blended benchmark.

Derivatives are not utilized at the Fund level, although they are utilized at the underlying fund level, and did not have a material direct impact on Fund performance.

What is the outlook?

The Fund ended the period with an overweight to international equities, smaller cap equities, and non-U.S. bonds, relative to its blended benchmark. We will continue to manage the Fund within the bands of the 80% equity, 20% fixed income strategic targets.

 

 

 

7

 


Hartford Moderate Allocation Fund inception 05/28/2004

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term capital appreciation and income.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Moderate Allocation A2

     2.90%         3.03%         6.35%         5.46%   

Moderate Allocation A3

     -2.76%         -2.64%         5.16%         4.86%   

Moderate Allocation B2

     2.51%         2.20%         5.49%         4.80% 4 

Moderate Allocation B3

     -2.14%         -2.43%         5.17%         4.80% 4 

Moderate Allocation C2

     2.48%         2.33%         5.58%         4.69%   

Moderate Allocation C3

     1.56%         1.40%         5.58%         4.69%   

Moderate Allocation I2

     3.06%         3.42%         6.68%         5.73%   

Moderate Allocation R32

     2.75%         2.67%         5.99%         5.14%   

Moderate Allocation R42

     2.87%         3.01%         6.33%         5.43%   

Moderate Allocation R52

     3.05%         3.38%         6.64%         5.69%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         4.75%   

Moderate Allocation Fund Blended Index

     3.89%         6.51%         7.71%         6.65%   

MSCI All Country World Index

     5.24%         8.01%         10.16%         7.54%   

 

1  Not Annualized
2 Without sales charge
3 With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a modified investment strategy. As of June 4, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Moderate Allocation Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 45% Barclays U.S. Aggregate Bond Index and 55% MSCI All Country World Index.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  8  

 


Hartford Moderate Allocation Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Moderate Allocation Class A

     1.30%         1.30%   

Moderate Allocation Class B

     2.14%         2.14%   

Moderate Allocation Class C

     2.03%         2.03%   

Moderate Allocation Class I

     0.99%         0.99%   

Moderate Allocation Class R3

     1.63%         1.63%   

Moderate Allocation Class R4

     1.33%         1.33%   

Moderate Allocation Class R5

     1.03%         1.03%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Richard P. Meagher, CFA

Managing Director, Asset Allocation Strategist and Portfolio Manager

Wellington Management Company LLP

Wendy M. Cromwell, CFA

Senior Managing Director, Director of Strategic Asset Allocation, and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Moderate Allocation Fund returned 2.90%, before sales charge, for the six-month period ended April 30, 2015 underperforming the Fund’s blended benchmark (55% MSCI All Country World Index/45% Barclays U.S. Aggregate Bond Index), which returned 3.89% for the same period. Individually, the MSCI All Country World Index and the Barclays U.S. Aggregate Bond Index returned 5.24% and 2.06%, respectively, for the same period. The Fund outperformed the 2.68% average return of the Lipper Mixed-Asset Target Moderate Funds category, a group of funds with equity weights of 40%-60%.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in

particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve. Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

 

 

 

  9  

 


Hartford Moderate Allocation Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

There are two main drivers of Fund performance: the asset allocation among various asset classes and the performance of the underlying funds. Potential value added from Asset Allocation includes the value added by both the Fund’s strategic asset allocation across a diverse set of asset classes and how those allocations are implemented within the asset classes. With regard to the strategic allocation, the stock/bond mix of the Fund was approximately 55% equities and 45% fixed income during the period, in line with its blended benchmark. Performance of the underlying funds measures the results of the underlying funds versus their respective benchmarks. The portfolio managers select the underlying funds.

In aggregate, asset allocation detracted from performance relative to the blended benchmark. Exposure to inflation-sensitive assets, such as natural resource-related equities and Treasury Inflation Protected Securities (TIPS), along with exposure to global nominal bonds detracted from performance relative to the blended benchmark. This was partially offset by an overweight to both U.S. and non-U.S. small cap equities, which contributed on a relative basis.

Beyond asset class decisions, we seek to add value by selecting the underlying funds available in our investment universe using both quantitative and qualitative criteria. In aggregate, performance from the underlying funds contributed on a benchmark relative basis. Strong performance relative the blended benchmark from The Hartford World Bond, Hartford Real Total Return, and The Hartford International Value Funds more than offset weak results relative to the blended benchmark from The Hartford Inflation Plus, The Hartford International Small Company, and The Hartford Small Company Funds.

Please note, derivatives were not utilized at the aggregate fund level although they are utilized at the underlying fund level.

What is the outlook?

We expect the global economy to gradually work its way free of the cycle of currency weakness, falling commodity prices, and deflationary fears, and expect that growth should begin to accelerate globally in late 2015. While global equity valuations remain elevated, they should be sustainable if our stable-to-positive view on growth is

correct. Within equities, we favor developed markets and see more upside in non-U.S. developed market equities than in U.S. equities. We retain a constructive view on capital markets and risk assets. The Fund ended the period with an overweight to international equities relative to its blended benchmark.

 

 

 

10

 


The Hartford Conservative Allocation Fund

 

 

 

Composition by Investments

as of April 30, 2015 (Unaudited)

 

Fund Name    Percentage of
Net Assets
 

Hartford Real Total Return Fund

     6.6

The Hartford Alternative Strategies Fund

     3.4   

The Hartford Capital Appreciation Fund

     2.7   

The Hartford Dividend and Growth Fund

     4.3   

The Hartford Emerging Markets Research Fund(1)

     2.3   

The Hartford Global Real Asset Fund

     12.4   

The Hartford Inflation Plus Fund

     22.7   

The Hartford International Growth Fund

     1.5   

The Hartford International Opportunities Fund

     3.0   

The Hartford International Small Company Fund

     1.9   

The Hartford International Value Fund

     1.5   

The Hartford MidCap Value Fund

     0.9   

The Hartford Small Company Fund

     0.8   

The Hartford Strategic Income Fund

     2.0   

The Hartford Total Return Bond Fund

     14.0   

The Hartford World Bond Fund

     20.0   
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)  Effective as of May 29, 2015 the fund was renamed Hartford Emerging Markets Equity Fund.
 

 

The accompanying notes are an integral part of these financial statements.

 

 

11

 


The Hartford Conservative Allocation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
AFFILIATED INVESTMENT COMPANIES - 100.0%  
      Alternative Strategy Funds - 22.4%  
  1,207,115     

Hartford Real Total Return Fund(1)

  $ 12,336,718   
  655,929     

The Hartford Alternative Strategies Fund(1)

    6,382,190   
  2,445,591     

The Hartford Global Real Asset Fund

    23,257,569   
   

 

 

 
 

Total Alternative Strategy Funds
(cost $44,091,935)

    41,976,477   
   

 

 

 
      Domestic Equity Funds - 8.7%  
  114,528     

The Hartford Capital Appreciation Fund

    4,988,818   
  309,666     

The Hartford Dividend and Growth Fund

    8,051,304   
  99,362     

The Hartford MidCap Value Fund

    1,666,304   
  64,500     

The Hartford Small Company Fund(1)

    1,611,847   
   

 

 

 
 

Total Domestic Equity Funds
(cost $14,942,456)

    16,318,273   
   

 

 

 
      International/Global Equity Funds - 10.2%  
  480,776     

The Hartford Emerging Markets Research Fund

    4,216,410   
  205,994     

The Hartford International Growth Fund

    2,855,077   
  343,174     

The Hartford International Opportunities Fund

    5,672,664   
  233,590     

The Hartford International Small Company Fund

    3,466,476   
  179,334     

The Hartford International Value Fund

    2,869,344   
   

 

 

 
 

Total International/Global Equity Funds
(cost $18,947,936)

    19,079,971   
   

 

 

 
      Taxable Fixed Income Funds - 58.7%  
  3,879,412     

The Hartford Inflation Plus Fund

    42,595,943   
  421,721     

The Hartford Strategic Income Fund

    3,765,969   
  2,451,793     

The Hartford Total Return Bond Fund

    26,209,670   
  3,562,392     

The Hartford World Bond Fund

    37,405,113   
   

 

 

 
 

Total Taxable Fixed Income Funds
(cost $114,534,738)

    109,976,695   
   

 

 

 
 

Total Affiliated Investment Companies
(cost $192,517,065)

  $ 187,351,416   
   

 

 

 
 

Total Long-Term Investments
(cost $192,517,065)

  $ 187,351,416   
   

 

 

 
 

Total Investments
(cost $192,517,065)^

    100.0    $ 187,351,416   
 

Other Assets and Liabilities

    0.0      (72,987
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     187,278,429   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

12

 


The Hartford Conservative Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $193,174,421 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 1,067,357   

Unrealized Depreciation

         (6,890,362
  

 

 

 

Net Unrealized Depreciation

   $ (5,823,005
  

 

 

 

 

(1)  Non-income producing.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

13

 


The Hartford Conservative Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Affiliated Investment Companies

   $     187,351,416       $     187,351,416       $     —       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 187,351,416       $ 187,351,416       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

14

 


The Hartford Growth Allocation Fund

 

 

 

Composition by Investments

as of April 30, 2015 (Unaudited)

 

Fund Name    Percentage of
Net Assets
 

Hartford Global Capital Appreciation Fund

     22.2

Hartford Global Equity Income Fund

     20.4   

Hartford Multi-Asset Income Fund

     12.1   

Hartford Real Total Return Fund

     4.9   

The Hartford Emerging Markets Research Fund(1)

     10.2   

The Hartford MidCap Fund

     6.9   

The Hartford MidCap Value Fund

     6.9   

The Hartford Small Company Fund

     6.7   

The Hartford World Bond Fund

     9.8   

Other Assets & Liabilities

     (0.1
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)  Effective as of May 29, 2015 the fund was renamed Hartford Emerging Markets Equity Fund.
 

 

The accompanying notes are an integral part of these financial statements.

 

 

15

 


The Hartford Growth Allocation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
AFFILIATED INVESTMENT COMPANIES - 100.1%      
      Alternative Strategy Funds - 4.9%      
  4,401,685     

Hartford Real Total Return Fund(1)

  $ 44,985,223   
   

 

 

 
 

Total Alternative Strategy Funds
(cost $45,397,228)

    44,985,223   
   

 

 

 
      Domestic Equity Funds - 20.5%      
  2,078,464     

The Hartford MidCap Fund

    62,894,335   
  3,750,570     

The Hartford MidCap Value Fund

    62,897,061   
  2,463,031     

The Hartford Small Company Fund(1)

    61,551,139   
   

 

 

 
 

Total Domestic Equity Funds
(cost $181,063,414)

    187,342,535   
   

 

 

 
      International/Global Equity Funds - 52.8%      
  10,842,885     

Hartford Global Capital Appreciation Fund

    203,087,243   
  15,914,819     

Hartford Global Equity Income Fund

    185,885,088   
  10,595,937     

The Hartford Emerging Markets Research Fund

    92,926,367   
   

 

 

 
 

Total International/Global Equity Funds
(cost $499,770,493)

    481,898,698   
   

 

 

 
      Mixed-Asset Funds - 12.1%      
  11,169,722     

Hartford Multi-Asset Income Fund

    110,133,457   
   

 

 

 
 

Total Mixed-Asset Funds
(cost $113,233,461)

    110,133,457   
   

 

 

 
      Taxable Fixed Income Funds - 9.8%      
  8,562,159     

The Hartford World Bond Fund

    89,902,665   
   

 

 

 
 

Total Taxable Fixed Income Funds
(cost $92,091,624)

    89,902,665   
   

 

 

 
 

Total Affiliated Investment Companies
(cost $931,556,220)

  $ 914,262,578   
   

 

 

 
 

Total Long-Term Investments
(cost $931,556,220)

  $ 914,262,578   
   

 

 

 
 

Total Investments
(cost $931,556,220)^

    100.1    $ 914,262,578   
 

Other Assets and Liabilities

    (0.1 )%       (625,069
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     913,637,509   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

16

 


The Hartford Growth Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $933,287,610 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 9,446,928   

Unrealized Depreciation

     (28,471,960
  

 

 

 

Net Unrealized Depreciation

   $     (19,025,032
  

 

 

 

 

(1)  Non-income producing.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

17

 


The Hartford Growth Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Affiliated Investment Companies

   $     914,262,578       $     914,262,578       $     —       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 914,262,578       $ 914,262,578       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

18

 


Hartford Moderate Allocation Fund

 

 

 

Composition by Investments

as of April 30, 2015 (Unaudited)

 

Fund Name    Percentage of
Net Assets
 

Hartford Real Total Return Fund

     6.5

The Hartford Alternative Strategies Fund

     3.4   

The Hartford Capital Appreciation Fund

     6.9   

The Hartford Dividend and Growth Fund

     12.8   

The Hartford Emerging Markets Research Fund(1)

     5.6   

The Hartford Global Real Asset Fund

     7.1   

The Hartford Inflation Plus Fund

     13.0   

The Hartford International Growth Fund

     3.3   

The Hartford International Opportunities Fund

     6.5   

The Hartford International Small Company Fund

     4.5   

The Hartford International Value Fund

     3.3   

The Hartford MidCap Value Fund

     2.2   

The Hartford Small Company Fund

     2.1   

The Hartford Strategic Income Fund

     4.0   

The Hartford Total Return Bond Fund

     8.0   

The Hartford World Bond Fund

     10.9   

Other Assets & Liabilities

     (0.1
  

 

 

 

Total

     100.0
  

 

 

 

 

(1)  Effective as of May 29, 2015 the fund was renamed Hartford Emerging Markets Equity Fund.

 

The accompanying notes are an integral part of these financial statements.

 

 

19

 


Hartford Moderate Allocation Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
AFFILIATED INVESTMENT COMPANIES - 100.1%  
      Alternative Strategy Funds - 17.0%  
  4,414,394     

Hartford Real Total Return Fund(1)

  $ 45,115,107   
  2,387,193     

The Hartford Alternative Strategies Fund(1)

    23,227,386   
  5,138,263     

The Hartford Global Real Asset Fund

    48,864,878   
   

 

 

 
 

Total Alternative Strategy Funds
(cost $121,196,131)

    117,207,371   
   

 

 

 
      Domestic Equity Funds - 24.0%  
  1,084,851     

The Hartford Capital Appreciation Fund

    47,256,120   
  3,392,233     

The Hartford Dividend and Growth Fund

    88,198,054   
  889,769     

The Hartford MidCap Value Fund

    14,921,425   
  582,364     

The Hartford Small Company Fund(1)

    14,553,266   
   

 

 

 
 

Total Domestic Equity Funds
(cost $137,939,348)

    164,928,865   
   

 

 

 
      International/Global Equity Funds - 23.2%  
  4,349,515     

The Hartford Emerging Markets Research Fund

    38,145,251   
  1,622,401     

The Hartford International Growth Fund

    22,486,484   
  2,712,030     

The Hartford International Opportunities Fund

    44,829,852   
  2,106,577     

The Hartford International Small Company Fund

    31,261,605   
  1,418,131     

The Hartford International Value Fund

    22,690,098   
   

 

 

 
 

Total International/Global Equity Funds
(cost $153,119,341)

    159,413,290   
   

 

 

 
      Taxable Fixed Income Funds - 35.9%  
  8,163,129     

The Hartford Inflation Plus Fund

    89,631,162   
  3,098,355     

The Hartford Strategic Income Fund

    27,668,307   
  5,123,519     

The Hartford Total Return Bond Fund

    54,770,416   
  7,162,538     

The Hartford World Bond Fund

    75,206,648   
   

 

 

 
 

Total Taxable Fixed Income Funds
(cost $256,607,773)

    247,276,533   
   

 

 

 
 

Total Affiliated Investment Companies
(cost $668,862,593)

  $ 688,826,059   
   

 

 

 
 

Total Long-Term Investments
(cost $668,862,593)

  $ 688,826,059   
   

 

 

 
 

Total Investments
(cost $668,862,593)^

    100.1    $ 688,826,059   
 

Other Assets and Liabilities

    (0.1 )%       (537,174
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     688,288,885   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

20

 


Hartford Moderate Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $671,384,041 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 31,026,493   

Unrealized Depreciation

         (13,584,475
  

 

 

 

Net Unrealized Appreciation

   $ 17,442,018   
  

 

 

 

 

(1)  Non-income producing.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

21

 


Hartford Moderate Allocation Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Affiliated Investment Companies

   $     688,826,059       $     688,826,059       $     —       $     —   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 688,826,059       $ 688,826,059       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

22

 


Hartford Funds – Asset Allocation Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Conservative
Allocation
Fund
    The Hartford
Growth
Allocation
Fund
    Hartford
Moderate
Allocation
Fund
 

Assets:

      

Investments in affiliated investment companies, at market value

   $     187,351,416      $     914,262,578      $     688,826,059   

Receivables:

      

Investment securities sold

     34,293        131,558        174,170   

Fund shares sold

     181,965        697,454        451,513   

Dividends and interest

     60,296               125,971   

Other assets

     50,983        59,371        55,811   
  

 

 

   

 

 

   

 

 

 

Total assets

     187,678,953        915,150,961        689,633,524   
  

 

 

   

 

 

   

 

 

 

Liabilities:

      

Payables:

      

Investment securities purchased

     60,296               125,972   

Fund shares redeemed

     208,957        928,438        770,351   

Investment management fees

     23,235        84,681        77,420   

Distribution fees

     69,700        336,152        251,436   

Accrued expenses

     38,336        164,181        119,460   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     400,524        1,513,452        1,344,639   
  

 

 

   

 

 

   

 

 

 

Net assets

   $ 187,278,429      $ 913,637,509      $ 688,288,885   
  

 

 

   

 

 

   

 

 

 

Summary of Net Assets:

      

Capital stock and paid-in-capital

   $ 189,867,848      $ 891,659,256      $ 633,339,819   

Undistributed (distributions in excess of) net investment income

     (1,395,216     (13,232,066     (8,578,949

Accumulated net realized gain (loss)

     3,971,446        52,503,961        43,564,549   

Unrealized appreciation (depreciation) of investments

     (5,165,649     (17,293,642     19,963,466   
  

 

 

   

 

 

   

 

 

 

Net assets

   $ 187,278,429      $ 913,637,509      $ 688,288,885   
  

 

 

   

 

 

   

 

 

 

Shares authorized

     400,000,000        400,000,000        400,000,000   
  

 

 

   

 

 

   

 

 

 

Par value

   $ 0.001      $ 0.001      $ 0.001   
  

 

 

   

 

 

   

 

 

 

Class A:     Net asset value per share

   $ 10.29      $ 11.96      $ 12.26   
  

 

 

   

 

 

   

 

 

 

                 Maximum offering price per share

   $ 10.89      $ 12.66      $ 12.97   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     11,928,452        52,834,628        36,733,528   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 122,751,372      $ 631,718,725      $ 450,416,352   
  

 

 

   

 

 

   

 

 

 

Class B:     Net asset value per share

   $ 10.21      $ 11.85      $ 12.14   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     475,589        2,533,840        1,531,717   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 4,854,110      $ 30,027,950      $ 18,592,989   
  

 

 

   

 

 

   

 

 

 

Class C:     Net asset value per share

   $ 10.20      $ 11.80      $ 12.12   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     4,246,190        17,344,057        12,725,046   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 43,300,911      $ 204,633,764      $ 154,277,981   
  

 

 

   

 

 

   

 

 

 

Class I:      Net asset value per share

   $ 10.28      $ 11.89      $ 12.27   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     141,859        549,495        883,808   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 1,458,784      $ 6,535,828      $ 10,843,348   
  

 

 

   

 

 

   

 

 

 

Class R3:   Net asset value per share

   $ 10.31      $ 11.69      $ 12.13   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     872,691        1,534,082        2,361,925   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 8,993,275      $ 17,934,005      $ 28,659,559   
  

 

 

   

 

 

   

 

 

 

Class R4:   Net asset value per share

   $ 10.30      $ 11.89      $ 12.26   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     311,746        1,361,618        1,367,569   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 3,210,403      $ 16,192,812      $ 16,768,976   
  

 

 

   

 

 

   

 

 

 

Class R5:   Net asset value per share

   $ 10.30      $ 11.97      $ 12.28   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     262,986        551,109        710,916   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 2,709,574      $ 6,594,425      $ 8,729,680   
  

 

 

   

 

 

   

 

 

 

Cost of investments in affiliated investment companies

   $ 192,517,065      $ 931,556,220      $ 668,862,593   

 

The accompanying notes are an integral part of these financial statements.

 

 

  23  

 


Hartford Funds – Asset Allocation Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Conservative
Allocation
Fund
    The Hartford
Growth
Allocation
Fund
    Hartford
Moderate
Allocation
Fund
 

Investment Income:

      

Dividends from affiliated investment companies

   $ 2,186,340      $ 10,449,175      $ 7,428,779   
  

 

 

   

 

 

   

 

 

 

Total investment income, net

     2,186,340        10,449,175        7,428,779   
  

 

 

   

 

 

   

 

 

 

Expenses:

      

Investment management fees

     144,831        574,231        472,587   

Administrative services fees

      

Class R3

     9,397        18,746        33,959   

Class R4

     2,647        11,986        13,503   

Class R5

     1,541        3,222        4,267   

Transfer agent fees

      

Class A

     68,556        419,329        251,237   

Class B

     6,484        48,361        25,619   

Class C

     21,131        122,845        74,442   

Class I

     665        2,716        3,326   

Class R3

     194        360        508   

Class R4

     130        149        193   

Class R5

     38        31        69   

Distribution fees

      

Class A

     156,632        770,062        559,957   

Class B

     29,113        176,529        109,225   

Class C

     222,171        1,008,515        778,402   

Class R3

     23,491        46,865        84,896   

Class R4

     4,412        19,977        22,505   

Custodian fees

     99        50        50   

Registration and filing fees

     46,014        56,420        57,675   

Accounting services fees

     11,587        54,035        41,837   

Board of Directors’ fees

     3,422        12,894        10,662   

Audit fees

     6,000        8,182        8,008   

Other expenses

     18,810        71,520        56,864   
  

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     777,365        3,427,025        2,609,791   

Management fee waivers

     (1,894     (81,752     (890
  

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (1,894     (81,752     (890
  

 

 

   

 

 

   

 

 

 

Total expenses, net

     775,471        3,345,273        2,608,901   
  

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     1,410,869        7,103,902        4,819,878   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments:

      

Capital gain distributions received from affiliated investment companies

     5,231,528        68,267,921        39,852,398   

Net realized gain (loss) on investments in affiliated investment companies

     (330,609     (306,192     6,246,527   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments

     4,900,919        67,961,729        46,098,925   
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments:

      

Net unrealized appreciation (depreciation) of investments in affiliated investment companies

     (4,264,850     (35,346,685     (31,942,820
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments

         (4,264,850         (35,346,685         (31,942,820
  

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments

     636,069        32,615,044        14,156,105   
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 2,046,938      $ 39,718,946      $ 18,975,983   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

24

 


 

 

[This page is intentionally left blank]

 

 

 

 

 

25

 


Hartford Funds – Asset Allocation Funds

Statements of Changes in Net Assets

 

 

 

     The Hartford Conservative
Allocation Fund
    The Hartford Growth
Allocation Fund
 
     For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

        

Net investment income (loss)

   $ 1,410,869      $ 958,415      $ 7,103,902      $ 4,304,184   

Net realized gain (loss) on investments

     4,900,919        8,612,964        67,961,729        215,016,103   

Net changes in unrealized appreciation (depreciation) of investments

     (4,264,850     (6,597,562     (35,346,685     (163,537,283
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     2,046,938        2,973,817        39,718,946        55,783,004   
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

From net investment income

        

Class A

     (1,875,342     (1,115,487     (18,087,308     (3,439,160

Class B

     (77,881            (645,388       

Class C

     (592,198            (4,477,434       

Class I

     (26,812     (16,310     (204,078     (42,475

Class R3

     (135,696     (28,138     (527,573     (60,086

Class R4

     (50,543     (36,060     (470,558     (105,639

Class R5

     (47,613     (41,851     (208,845     (54,717
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net investment income

     (2,806,085     (1,237,846     (24,621,184     (3,702,077
  

 

 

   

 

 

   

 

 

   

 

 

 

From net realized gain on investments

        

Class A

     (5,655,677     (4,476,536     (134,407,182       

Class B

     (279,328     (339,457     (8,457,837       

Class C

     (1,983,497     (1,635,045     (45,122,326       

Class I

     (78,230     (41,566     (1,699,581       

Class R3

     (438,171     (332,813     (4,311,184       

Class R4

     (151,915     (215,918     (3,491,529       

Class R5

     (141,981     (105,569     (1,392,515       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net realized gain on investments

     (8,728,799     (7,146,904     (198,882,154       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (11,534,884     (8,384,750     (223,503,338     (3,702,077
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

        

Sold

     10,376,634        31,907,703        48,696,609        104,854,582   

Issued on reinvestment of distributions

     11,252,714        8,192,292        218,337,294        3,651,670   

Redeemed

     (33,126,962     (61,727,181     (97,944,178         (167,432,102
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (11,497,614     (21,627,186     169,089,725        (58,925,850
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (20,985,560     (27,038,119     (14,694,667     (6,844,923
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

        

Beginning of period

     208,263,989        235,302,108        928,332,176        935,177,099   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     187,278,429      $     208,263,989      $     913,637,509      $ 928,332,176   
  

 

 

   

 

 

   

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (1,395,216   $      $ (13,232,066   $ 4,285,216   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

26

 


Hartford Funds – Asset Allocation Funds

Statements of Changes in Net Assets – (continued)

 

 

 

Hartford Moderate
Allocation Fund
 
For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
 
$ 4,819,878      $ 3,678,843   
  46,098,925        54,315,379   
  (31,942,820     (32,615,645

 

 

   

 

 

 
  18,975,983        25,378,577   

 

 

   

 

 

 
 
 
  (8,794,684     (4,770,090
  (393,255       
  (2,794,746     (292,134
  (233,842     (150,041
  (666,596     (222,487
  (342,393     (215,535
  (173,311     (136,377

 

 

   

 

 

 
  (13,398,827     (5,786,664

 

 

   

 

 

 
 
  (34,416,160     (868,394
  (1,823,645     (74,364
  (12,237,856     (319,747
  (901,536     (17,645
  (2,777,103     (74,331
  (1,358,839     (43,213
  (653,612     (17,868

 

 

   

 

 

 
  (54,168,751     (1,415,562

 

 

   

 

 

 
  (67,567,578     (7,202,226

 

 

   

 

 

 
 
  28,684,909        84,161,038   
  66,074,717        7,052,549   
  (92,112,978         (160,455,005

 

 

   

 

 

 
  2,646,648        (69,241,418

 

 

   

 

 

 
  (45,944,947     (51,065,067

 

 

   

 

 

 
 
  734,233,832        785,298,899   

 

 

   

 

 

 
$     688,288,885      $ 734,233,832   

 

 

   

 

 

 
$ (8,578,949   $   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

27

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements

April 30, 2015 (Unaudited)

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. (the “Company”) is an open-end management investment company comprised of forty-two series as of April 30, 2015. The financial statements for certain other series of the Company are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Conservative Allocation Fund (the “Conservative Allocation Fund”)

The Hartford Growth Allocation Fund (the “Growth Allocation Fund”)

Hartford Moderate Allocation Fund (the “Moderate Allocation Fund”)

The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class B, Class C, Class I, Class R3, Class R4 and Class R5 shares. Class A shares are sold with a front-end sales charge of up to 5.50%. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4 and R5 shares, which are offered to employer-sponsored retirement plans, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

Each Fund, as a “Fund of Funds,” invests the majority of its assets in Class Y shares of other Hartford Funds (“Affiliated Investment Companies”) and may also invest in one or more unaffiliated money market funds (together with the Affiliated Investment Companies, the “Underlying Funds”), certain exchange traded funds (“ETFs”) and/or exchange traded notes (“ETNs”). Each Fund seeks its investment goal through implementation of a strategic asset allocation recommendation provided by Wellington Management Company LLP (“Wellington Management”), the sub-adviser to the Conservative Allocation Fund and Moderate Allocation Fund or Hartford Funds Management Company, LLC (“HFMC”), the adviser to the Growth Allocation Fund.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

 

2. Significant Accounting Policies:

The significant accounting policies of the Affiliated Investment Companies are outlined in the shareholder reports for such funds, available (1) without charge, upon request, by calling 888-843-7824, (2) on our website www.hartfordfunds.com and (3) on the SEC’s website at www.sec.gov. The reports 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. The significant accounting policies of the Affiliated Investment Companies are not covered by this report.

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

 

28

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  a) Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b) Investment Valuation and Fair Value Measurements – Investments in open-end mutual funds are valued at the respective NAV of each Underlying Fund as determined as of the NYSE Close on the Valuation Date. The Funds generally use market prices in valuing the remaining portfolio investments. If market prices are not readily available or are deemed unreliable, the Funds will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.
    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.
    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follow the Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Realized gains and losses are determined on the basis of identified cost.

Dividend income is accrued on the ex-dividend date. Income and capital gain distributions from the Underlying Funds are accrued on the ex-dividend date.

 

  d)

Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of the Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by the Funds has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the

 

 

29

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of the Funds’ shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by each Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of the Funds is to pay dividends and/or distributions from net investment income and realized gains, if any, at least once a year. Long-term capital gain distributions are distributed by the Underlying Funds at least annually, when required. Unless shareholders specify otherwise, all dividends and distributions will be automatically reinvested in additional full or fractional shares of the Funds.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts).

 

3. Principal Risks:

Each Fund is exposed to the risks of the Underlying Funds and/or ETFs/ETNs in direct proportion to the amount of assets each Fund allocates to each Underlying Fund and/or ETF/ETN. The market values of the Underlying Funds and/or ETFs/ETNs may decline due to general market conditions, which are not specifically related to a particular company in which the Underlying Fund and/or ETF/ETN invested, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities in which the Underlying Funds and/or ETFs/ETNs invest may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

 

4. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments and short-term capital gain adjustments. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Ordinary
Income
for the Year Ended
October 31, 2014
  Long-Term
Capital Gains
for the Year Ended
October 31,  2014(1)
  Ordinary
Income
for the Year Ended
October 31, 2013
  Long-Term
Capital Gains
for the Year Ended
October 31,  2013(1)
 

Conservative Allocation Fund

$     2,126,495    $     6,258,255    $ 7,351,271    $ 5,443,958   

Growth Allocation Fund

$ 3,702,076    $    $     15,252,676    $     5,247,390   

Moderate Allocation Fund

$ 5,746,928    $ 1,455,297    $ 14,294,138    $ 6,255,875   

 

  (1)  The Funds designate these distributions as long-term capital gain dividends pursuant to IRC Sec 852(b)(3)(c).

 

 

30

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

  Undistributed
Ordinary
Income
  Undistributed
Long-Term
Capital Gain
  Accumulated
Capital and
Other
Losses
  Unrealized
Appreciation
(Depreciation)
on
Investments(2)
  Total
Accumulated
Earnings
(Deficit)
 

Conservative Allocation Fund

$    $ 8,693,465    $ (236,783 $ (1,558,155 $ 6,898,527   

Growth Allocation Fund

$     4,285,216    $     198,823,085    $     (13,667,309 $     16,321,653    $     205,762,645   

Moderate Allocation Fund

$    $ 54,155,823    $    $ 49,384,838    $ 103,540,661   

 

  (1)  The Funds have capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

  Undistributed Net
Investment Income
(Loss)
  Accumulated Net
Realized Gain
(Loss)
 

Conservative Allocation Fund

  279,431      (279,431

Growth Allocation Fund

  3,683,107      (3,683,107

Moderate Allocation Fund

  2,107,821      (2,107,821

 

  e) Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

  Expiration Date  

Fund

2016   2017  

Conservative Allocation Fund

$ 236,783    $   

Growth Allocation Fund

$     3,089,210    $     10,578,099   

The Moderate Allocation Fund had no capital loss carryforward for U.S. federal income tax purposes as of October 31, 2014.

As a result of mergers involving the Conservative Allocation Fund and the Growth Allocation Fund, certain provisions in the IRC may limit the future utilization of capital losses. During the year ended October 31, 2014, the Conservative Allocation Fund and the Growth Allocation Fund utilized $210,729 and $6,891,320 of prior year capital loss carryforwards, respectively.

 

  f)

Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in

 

 

31

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

5. Expenses:

 

  a) Investment Management Agreement – HFMC serves as each Fund’s investment manager pursuant to an Investment Management Agreement with the Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for each Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management under a sub-advisory agreement for the provision of day-to-day investment management services to the Conservative Allocation Fund and the Moderate Allocation Fund in accordance with those Funds’ investment objective and policies. The Conservative Allocation Fund and the Moderate Allocation Fund pay a fee to the investment manager, a portion of which may be used to compensate Wellington Management. For the Growth Allocation Fund, HFMC is responsible for the day-to-day management of the Fund.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Conservative Allocation Fund

0.150% on first $500 million and;
0.100% on next $500 million and;
0.090% on next $1.5 billion and;
0.080% on next $2.5 billion and;
0.070% on next $2.5 billion and;
0.060% on next $2.5 billion and;
0.050% over $10 billion

Growth Allocation Fund

0.150% on first $500 million and;
0.100% on next $500 million and;
0.090% on next $1.5 billion and;
0.080% on next $2.5 billion and;
0.070% on next $2.5 billion and;
0.060% on next $2.5 billion and;
0.050% over $10 billion

Moderate Allocation Fund

0.150% on first $500 million and;
0.100% on next $500 million and;
0.090% on next $1.5 billion and;
0.080% on next $2.5 billion and;
0.070% on next $2.5 billion and;
0.060% on next $2.5 billion and;
0.050% over $10 billion

Effective May 31, 2014, HFMC voluntarily agreed to waive investment management fees of 0.015% of average daily net assets of the Growth Allocation Fund until such time as it is revoked by HFMC, in its sole discretion. These amounts are deducted from expenses and are reported as expense waivers on the Growth Allocation Fund’s Statement of Operations, as applicable.

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and the Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

32

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

 

Accounting Services Fee Rates

Conservative Allocation Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Growth Allocation Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Moderate Allocation Fund

0.012% on first $5 billion and;
0.010% over $5 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  d) Operating Expenses – Allocable expenses incurred by the Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5  

Conservative Allocation Fund

  1.35%      2.10%      2.10%      1.10%      1.60%      1.30%      1.00%   

Growth Allocation Fund

  1.50%      2.25%      2.25%      1.25%      1.70%      1.40%      1.10%   

Moderate Allocation Fund

  1.40%      2.15%      2.15%      1.15%      1.65%      1.35%      1.05%   

Contractual limitations for total operating expenses include expenses incurred as the result of investing in other investment companies including the Underlying Funds. Amounts incurred which exceed the above limits are deducted from expenses and are reported as expense waivers on the accompanying Statement of Operations, as applicable.

 

  e) Distribution and Service Plan for Class A, B, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end
Sales Charges
  Contingent Deferred
Sales Charges
 

Conservative Allocation Fund

$     138,384    $     2,277   

Growth Allocation Fund

  674,028      8,482   

Moderate Allocation Fund

  297,846      8,080   

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, B, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class B Plan, each 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 services provided to existing shareholders 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. 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, each 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

 

 

33

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

to broker/dealers for distribution and/or shareholder account services. Class R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as each company’s Board of Directors may determine.

 

  f) Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

6. Affiliate Holdings:

A summary of transactions for each underlying fund for the period ended April 30, 2015 follows:

Conservative Allocation Fund

 

Underlying Portfolio

Number of
shares held at
October 31, 2014
  Shares
purchased
  Shares sold   Number of
shares held at
April 30, 2015
 

Hartford Real Total Return Fund

  1,367,288      72,924      (233,097   1,207,115   

The Hartford Alternative Strategies Fund

  727,053      18,725      (89,849   655,929   

The Hartford Capital Appreciation Fund

  104,280      32,470      (22,222   114,528   

The Hartford Dividend and Growth Fund

  329,051      42,699      (62,084   309,666   

The Hartford Emerging Markets Research Fund

  520,200      74,670      (114,094   480,776   

The Hartford Global Real Asset Fund

  2,580,307      322,522      (457,238   2,445,591   

The Hartford Inflation Plus Fund

  4,308,267      184,563      (613,418   3,879,412   

The Hartford International Growth Fund

  247,232      2,903      (44,141   205,994   

The Hartford International Opportunities Fund

  363,383      55,354      (75,563   343,174   

The Hartford International Small Company Fund

  227,536      58,727      (52,673   233,590   

The Hartford International Value Fund

  217,763      3,118      (41,547   179,334   

The Hartford MidCap Value Fund

  106,361      13,189      (20,188   99,362   

The Hartford Small Company Fund

  68,714      11,559      (15,773   64,500   

The Hartford Strategic Income Fund

  457,544      19,866      (55,689   421,721   

The Hartford Total Return Bond Fund

  2,668,390      110,056      (326,653   2,451,793   

The Hartford World Bond Fund

      3,839,808      202,902      (480,318   3,562,392   

 

 

34

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Underlying Portfolio

Net Realized
Gain/(Loss)
on sales of
Affiliated
Underlying
Portfolios
  Capital Gain
Distributions
from Affiliated
Underlying
Portfolios
  Dividend Income
from Affiliated
Underlying
Portfolios
  Ending Value
as of
April 30, 2015
 

Hartford Real Total Return Fund

$ (73,034 $ 424,776    $    $ 12,336,718   

The Hartford Alternative Strategies Fund

  (66,475   42,074           6,382,189   

The Hartford Capital Appreciation Fund

  293,767          1,254,068      34,882      4,988,818   

The Hartford Dividend and Growth Fund

  440,517      709,078      69,886      8,051,304   

The Hartford Emerging Markets Research Fund

  59,498      321,956      46,198      4,216,410   

The Hartford Global Real Asset Fund

  (384,737        131,360          23,257,569   

The Hartford Inflation Plus Fund

  (958,779        31,910      42,595,943   

The Hartford International Growth Fund

  383      0      22,164      2,855,077   

The Hartford International Opportunities Fund

  (4,807   654,336      89,747      5,672,664   

The Hartford International Small Company Fund

  154,085      666,372      83,912      3,466,477   

The Hartford International Value Fund

  (31,527        22,073      2,869,344   

The Hartford MidCap Value Fund

  85,697      192,781      9,575      1,666,304   

The Hartford Small Company Fund

  95,415      266,227           1,611,847   

The Hartford Strategic Income Fund

  (19,521   88,510      87,454      3,765,969   

The Hartford Total Return Bond Fund

  (18,434   611,350      299,859      26,209,670   

The Hartford World Bond Fund

  97,343               1,257,320      37,405,113   
  

 

 

   

 

 

    

 

 

    

 

 

 
$     (330,609)    $ 5,231,528    $ 2,186,340    $ 187,351,416   
  

 

 

   

 

 

    

 

 

    

 

 

 

Growth Allocation Fund

 

Underlying Portfolio

Number of
shares held at
October 31, 2014
  Shares
purchased
  Shares sold   Number of
shares held at
April 30, 2015
 

Hartford Global Capital Appreciation Fund

  9,887,427      2,018,916      (1,063,458   10,842,885   

Hartford Global Equity Income Fund

  15,963,378      1,034,011      (1,082,570   15,914,819   

Hartford Multi-Asset Income Fund

  10,987,954      1,031,645      (849,877   11,169,722   

Hartford Real Total Return Fund

  4,514,840      420,237      (533,392   4,401,685   

The Hartford Emerging Markets Research Fund

      10,003,587      1,794,165      (1,201,815   10,595,937   

The Hartford MidCap Fund

  2,127,410      210,974      (259,920   2,078,464   

The Hartford MidCap Value Fund

  3,690,935      466,107      (406,472   3,750,570   

The Hartford Small Company Fund

  2,350,306      404,738      (292,013   2,463,031   

The Hartford World Bond Fund

  8,433,395      1,438,807      (1,310,043   8,562,159   

Underlying Portfolio

Net Realized
Gain/(Loss)
on sales of
Affiliated
Underlying
Portfolios
  Capital Gain
Distributions
from Affiliated
Underlying
Portfolios
  Dividend Income
from Affiliated
Underlying
Portfolios
  Ending Value
as of
April 30, 2015
 

Hartford Global Capital Appreciation Fund

$ (2,813,792 $     30,600,167    $ 1,439,718    $ 203,087,243   

Hartford Global Equity Income Fund

  (673,398   7,947,373      1,636,363      185,885,088   

Hartford Multi-Asset Income Fund

  (393,138        3,132,686      110,133,457   

Hartford Real Total Return Fund

  (215,998   1,491,001           44,985,223   

The Hartford Emerging Markets Research Fund

  742,279      6,532,206      971,013      92,926,367   

The Hartford MidCap Fund

  (289,131   5,565,502           62,894,335   

The Hartford MidCap Value Fund

  1,793,630      6,821,313      348,382      62,897,061   

The Hartford Small Company Fund

  1,710,364      9,310,359           61,551,139   

The Hartford World Bond Fund

  (167,008        2,921,013      89,902,665   
  

 

 

   

 

 

    

 

 

   

 

 

 
$ (306,192 $ 68,267,921    $     10,449,175    $     914,262,578   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

 

35

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Moderate Allocation Fund

 

Underlying Portfolio

Number of
shares held at
October 31, 2014
  Shares
purchased
  Shares sold   Number of
shares held at
April 30, 2015
 

Hartford Real Total Return Fund

  4,800,927      337,725      (724,258   4,414,394   

The Hartford Alternative Strategies Fund

  2,620,053      15,808      (248,668   2,387,193   

The Hartford Capital Appreciation Fund

  950,313      292,775      (158,237   1,084,851   

The Hartford Dividend and Growth Fund

  3,405,574      391,074      (404,415   3,392,233   

The Hartford Emerging Markets Research Fund

  4,458,846      558,912      (668,243   4,349,515   

The Hartford Global Real Asset Fund

  5,099,728      374,184      (355,649   5,138,263   

The Hartford Inflation Plus Fund

  8,631,975      528,032      (996,878   8,163,129   

The Hartford International Growth Fund

  1,848,530      13,684      (239,813   1,622,401   

The Hartford International Opportunities Fund

  2,746,831      378,015      (412,816   2,712,030   

The Hartford International Small Company Fund

  1,930,627      477,951      (302,001   2,106,577   

The Hartford International Value Fund

  1,628,138      12,033      (222,040   1,418,131   

The Hartford MidCap Value Fund

  938,918      113,589      (162,738   889,769   

The Hartford Small Company Fund

  592,943      97,100      (107,679   582,364   

The Hartford Strategic Income Fund

  3,127,760      174,695      (204,100   3,098,355   

The Hartford Total Return Bond Fund

  5,317,683      406,833      (600,997   5,123,519   

The Hartford World Bond Fund

  7,404,629      567,619      (809,710   7,162,538   

Underlying Portfolio

Net Realized
Gain/(Loss)
on sales of
Affiliated
Underlying
Portfolios
  Capital Gain
Distributions
from Affiliated
Underlying
Portfolios
  Dividend Income
from Affiliated
Underlying
Portfolios
  Ending Value
as of
April 30, 2015
 

Hartford Real Total Return Fund

$ (265,972 $ 1,533,780    $    $ 45,115,107   

The Hartford Alternative Strategies Fund

  (79,541   149,493           23,227,386   

The Hartford Capital Appreciation Fund

  2,232,258      11,383,727      320,830      47,256,120   

The Hartford Dividend and Growth Fund

  3,046,001      7,435,902      750,242      88,198,054   

The Hartford Emerging Markets Research Fund

  421,351      2,806,693      412,856      38,145,251   

The Hartford Global Real Asset Fund

  (196,568        269,881      48,864,878   

The Hartford Inflation Plus Fund

      (1,556,938        65,036      89,631,162   

The Hartford International Growth Fund

  39,277           172,592      22,486,484   

The Hartford International Opportunities Fund

  200,097      4,958,787      696,952      44,829,852   

The Hartford International Small Company Fund

  757,193      5,773,294      741,375      31,261,605   

The Hartford International Value Fund

  (110,527        170,970      22,690,098   

The Hartford MidCap Value Fund

  1,128,367      1,660,805      86,048      14,921,425   

The Hartford Small Company Fund

  681,362      2,283,972           14,553,266   

The Hartford Strategic Income Fund

  (88,702   629,942      629,637      27,668,307   

The Hartford Total Return Bond Fund

  (119,181   1,236,003      617,750      54,770,416   

The Hartford World Bond Fund

  158,050           2,494,610      75,206,648   
  

 

 

   

 

 

    

 

 

   

 

 

 
$ 6,246,527    $     39,852,398    $     7,428,779    $     688,826,059   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

 

36

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

7. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Governments
 

Conservative Allocation Fund

$ 14,565,951    $ 30,863,573   

Growth Allocation Fund

$     112,611,902    $     91,359,411   

Moderate Allocation Fund

$ 67,439,692    $ 87,406,556   

 

  Cost of Purchases
Including U.S.
Government
Obligations
  Sales Proceeds
Including U.S.
Government
Obligations
 

Conservative Allocation Fund

$    $   

Growth Allocation Fund

$    $   

Moderate Allocation Fund

$    $   
  Total Cost of
Purchases
  Total Sales
Proceeds
 

Conservative Allocation Fund

$ 14,565,951    $ 30,863,573   

Growth Allocation Fund

$     112,611,902    $     91,359,411   

Moderate Allocation Fund

$ 67,439,692    $ 87,406,556   

 

8. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Conservative Allocation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  646,889    $ 6,657,638      1,764,682    $ 19,147,247   

Shares Issued for Reinvested Dividends

  732,961      7,391,886      516,770      5,490,178   

Shares Redeemed

  (1,904,180       (19,511,712   (3,261,402       (35,396,157

Shares converted (from) Class B into Class A

            79,153      860,731   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (524,330   (5,462,188   (900,797   (9,898,001
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  7,273    $ 73,898      21,652    $ 234,480   

Shares Issued for Reinvested Dividends

  34,942      349,851      31,848      335,361   

Shares Redeemed

  (207,629   (2,115,133   (355,725   (3,842,317

Shares converted (from) Class B into Class A

            (79,153   (860,731
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (165,414   (1,691,384   (381,378   (4,133,207
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

37

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  220,229    $ 2,237,909      576,240    $ 6,211,189   

Shares Issued for Reinvested Dividends

  244,378      2,446,031      147,609      1,552,846   

Shares Redeemed

  (583,101   (5,934,288   (1,238,006   (13,329,859
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (118,494   (1,250,348   (514,157   (5,565,824
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  18,094    $ 185,069      148,292    $ 1,590,876   

Shares Issued for Reinvested Dividends

  10,022      100,936      5,203      55,357   

Shares Redeemed

  (56,098   (564,456   (109,977   (1,185,290
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (27,982   (278,451   43,518      460,943   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  72,744    $ 750,940      238,702    $ 2,589,243   

Shares Issued for Reinvested Dividends

  56,784      573,867      34,027      360,951   

Shares Redeemed

  (195,251   (1,982,304   (283,716   (3,083,953
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (65,723   (657,497   (10,987   (133,759
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  31,337    $ 322,053      123,393    $ 1,349,955   

Shares Issued for Reinvested Dividends

  19,881      200,549      23,578      250,179   

Shares Redeemed

  (184,874   (1,955,006   (391,947   (4,264,269
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (133,656   (1,432,404   (244,976   (2,664,135
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  14,491    $ 149,127      71,465    $ 784,713   

Shares Issued for Reinvested Dividends

  18,786      189,594      13,827      147,420   

Shares Redeemed

  (102,522   (1,064,063   (58,091   (625,336
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (69,245   (725,342   27,201      306,797   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (1,104,844 $     (11,497,614   (1,981,576 $     (21,627,186
  

 

 

   

 

 

   

 

 

   

 

 

 

Growth Allocation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,554,175    $ 31,350,092      4,713,752    $ 70,130,952   

Shares Issued for Reinvested Dividends

  13,139,858      150,608,894      231,097      3,397,132   

Shares Redeemed

  (4,804,748   (58,175,539   (6,563,395   (97,227,243

Shares converted (from) Class B into Class A

  292,598      3,549,705      531,351      7,869,335   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  11,181,883          127,333,152      (1,087,195       (15,829,824
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  31,609    $ 412,094      22,345    $ 347,478   

Shares Issued for Reinvested Dividends

  794,813      8,964,931             

Shares Redeemed

  (719,234   (8,637,601   (1,339,319   (19,585,259

Shares converted (from) Class B into Class A

  (295,426   (3,549,705   (531,351   (7,869,335
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (188,238   (2,810,281   (1,848,325   (27,107,116
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

38

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  874,912    $ 10,427,154      1,274,314    $ 18,756,882   

Shares Issued for Reinvested Dividends

  4,166,071      46,928,907             

Shares Redeemed

  (1,749,556   (20,884,796   (2,291,562   (33,688,231
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,291,427      36,471,265      (1,017,248   (14,931,349
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  205,146    $ 2,740,743      189,564    $ 2,826,038   

Shares Issued for Reinvested Dividends

  131,577      1,502,743      2,446      35,757   

Shares Redeemed

  (222,383   (2,628,386   (83,515   (1,228,055
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  114,340      1,615,100      108,495      1,633,740   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  123,561    $ 1,471,101      266,102    $ 3,879,635   

Shares Issued for Reinvested Dividends

  432,154      4,838,742      4,152      60,086   

Shares Redeemed

  (344,085   (3,951,891   (335,221   (4,857,149
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  211,630      2,357,952      (64,967   (917,428
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  146,035    $ 1,932,917      542,559    $ 8,108,247   

Shares Issued for Reinvested Dividends

  341,320      3,891,717      7,102      103,978   

Shares Redeemed

  (236,727   (3,106,690   (649,974   (9,523,894
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  250,628      2,717,944      (100,313   (1,311,669
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  29,120    $ 362,508      53,989    $ 805,350   

Shares Issued for Reinvested Dividends

  139,416      1,601,360      3,725      54,717   

Shares Redeemed

  (46,118   (559,275   (88,588   (1,322,271
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  122,418      1,404,593      (30,874   (462,204
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  14,984,088    $     169,089,725      (4,040,427 $     (58,925,850
  

 

 

   

 

 

   

 

 

   

 

 

 

Moderate Allocation Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  1,449,183    $ 17,746,673      3,527,613    $ 46,260,071   

Shares Issued for Reinvested Dividends

  3,593,851      42,613,944      426,747      5,534,222   

Shares Redeemed

  (3,611,092       (43,950,636   (6,715,876       (87,999,981

Shares converted (from) Class B into Class A

  137,112      1,677,152      290,688      3,813,441   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,569,054      18,087,133      (2,470,828   (32,392,247
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  8,553    $ 102,913      41,852    $ 540,882   

Shares Issued for Reinvested Dividends

  183,751      2,161,636      5,746      72,631   

Shares Redeemed

  (454,069   (5,481,574   (1,150,871   (14,995,245

Shares converted (from) Class B into Class A

  (138,331   (1,677,152   (290,688   (3,813,441
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (400,096   (4,894,177   (1,393,961   (18,195,173
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

39

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  501,066    $ 6,041,901      1,271,646    $ 16,500,004   

Shares Issued for Reinvested Dividends

  1,222,308      14,353,654      45,856      585,467   

Shares Redeemed

  (1,605,966   (19,354,852   (2,415,851   (31,488,079
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  117,408      1,040,703      (1,098,349   (14,402,608
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  93,316    $ 1,179,903      430,566    $ 5,654,057   

Shares Issued for Reinvested Dividends

  87,018      1,032,473      11,972      155,548   

Shares Redeemed

  (198,642   (2,421,515   (289,370   (3,792,702
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (18,308   (209,139   153,168      2,016,903   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  124,992    $ 1,509,896      612,173    $ 7,960,619   

Shares Issued for Reinvested Dividends

  289,367      3,400,212      22,902      293,242   

Shares Redeemed

  (1,012,166   (12,231,565   (933,257   (12,128,636
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (597,807   (7,321,457   (298,182   (3,874,775
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  136,536    $ 1,652,730      475,826    $ 6,200,558   

Shares Issued for Reinvested Dividends

  142,151      1,685,875      19,868      257,194   

Shares Redeemed

  (597,960   (7,561,125   (580,480   (7,619,696
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (319,273   (4,222,520   (84,786   (1,161,944
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  36,594    $ 450,893      79,343    $ 1,044,847   

Shares Issued for Reinvested Dividends

  69,638      826,923      11,875      154,245   

Shares Redeemed

  (88,906       (1,111,711   (185,943   (2,430,666
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  17,326      166,105      (94,725   (1,231,574
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  368,304    $ 2,646,648      (5,287,663 $     (69,241,418
  

 

 

   

 

 

   

 

 

   

 

 

 

 

9. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

10. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford

 

 

40

 


Hartford Funds – Asset Allocation Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

11. Indemnifications:

Under the Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation law and the federal securities laws. In addition, the Company may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

12. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

 

41

 


Hartford Funds – Asset Allocation Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)(4)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
The Hartford Conservative Allocation Fund               

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $   10.78      $ 0.08      $ 0.04      $ 0.12      $ (0.15   $ (0.46   $      $ (0.61   $ 10.29        1.32 %(5)    $ 122,751        0.60 %(6)      0.60 %(6)      1.65 %(6)      7

B

    10.72        0.06        0.02        0.08        (0.13     (0.46            (0.59     10.21        0.91 (5)      4,854        1.46 (6)      1.43 (6)      1.10 (6)      7   

C

    10.71        0.05        0.03        0.08        (0.13     (0.46            (0.59     10.20        0.95 (5)      43,301        1.33 (6)      1.33 (6)      0.90 (6)      7   

I

    10.77        0.12        0.01        0.13        (0.16     (0.46            (0.62     10.28        1.41 (5)      1,459        0.32 (6)      0.32 (6)      2.32 (6)      7   

R3

    10.81        0.07        0.03        0.10        (0.14     (0.46            (0.60     10.31        1.15 (5)      8,993        0.94 (6)      0.93 (6)      1.42 (6)      7   

R4

    10.79        0.08        0.04        0.12        (0.15     (0.46            (0.61     10.30        1.30 (5)      3,210        0.65 (6)      0.63 (6)      1.52 (6)      7   

R5

    10.79        0.10        0.03        0.13        (0.16     (0.46            (0.62     10.30        1.40 (5)      2,710        0.34 (6)      0.33 (6)      2.03 (6)      7   

For the Year Ended October 31, 2014

  

           

A

  $ 11.05      $ 0.07      $ 0.09      $ 0.16      $   (0.09   $   (0.34   $   —      $   (0.43   $   10.78        1.50   $   134,286        0.59     0.59     0.64     27

B

    10.99          (0.01       0.08          0.07               (0.34            (0.34     10.72        0.71        6,872        1.43        1.40        (0.13     27   

C

    10.98        (0.01     0.08        0.07               (0.34            (0.34     10.71        0.71        46,745        1.34        1.34        (0.09     27   

I

    11.06        0.10        0.08        0.18        (0.13     (0.34            (0.47     10.77        1.76        1,829        0.32        0.32        0.91        27   

R3

    11.06        0.03        0.09        0.12        (0.03     (0.34            (0.37     10.81        1.17        10,141        0.94        0.90        0.31        27   

R4

    11.04        0.07        0.08        0.15        (0.06     (0.34            (0.40     10.79        1.45        4,806        0.64        0.60        0.65        27   

R5

    11.08        0.10        0.08        0.18        (0.13     (0.34            (0.47     10.79        1.74        3,585        0.34        0.30        0.92        27   

For the Year Ended October 31, 2013

  

           

A

  $ 11.35      $ 0.10      $ 0.15      $ 0.25      $ (0.32   $ (0.23   $      $ (0.55   $ 11.05        2.26   $ 147,617        0.58     0.58     0.93     22

B

    11.33        0.03        0.13        0.16        (0.27     (0.23            (0.50     10.99        1.42        11,240        1.40        1.40        0.27        22   

C

    11.32        0.02        0.15        0.17        (0.28     (0.23            (0.51     10.98        1.51        53,554        1.32        1.32        0.17        22   

I

    11.34        0.12        0.16        0.28        (0.33     (0.23            (0.56     11.06        2.60        1,397        0.30        0.30        1.13        22   

R3

    11.37        0.05        0.17        0.22        (0.30     (0.23            (0.53     11.06        1.99        10,496        0.93        0.93        0.48        22   

R4

    11.33        0.12        0.13        0.25        (0.31     (0.23            (0.54     11.04        2.29        7,620        0.62        0.62        1.08        22   

R5

    11.36        0.15        0.13        0.28        (0.33     (0.23            (0.56     11.08        2.57        3,378        0.32        0.32        1.35        22   

For the Year Ended October 31, 2012(7)

  

           

A

  $ 10.71      $ 0.12      $ 0.68      $ 0.80      $ (0.16   $      $      $ (0.16   $ 11.35        7.55   $ 166,842        0.58     0.58     1.13     83

B

    10.71        0.03        0.68        0.71        (0.09                   (0.09     11.33        6.69        17,538        1.39        1.39        0.38        83   

C

    10.70        0.04        0.68        0.72        (0.10                   (0.10     11.32        6.78        59,053        1.33        1.33        0.37        83   

I

    10.69        0.16        0.67        0.83        (0.18                   (0.18     11.34        7.89        1,481        0.30        0.30        1.39        83   

R3

    10.74        0.08        0.68        0.76        (0.13                   (0.13     11.37        7.18        9,608        0.93        0.93        0.62        83   

R4

    10.69        0.11        0.69        0.80        (0.16                   (0.16     11.33        7.55        14,196        0.63        0.63        1.00        83   

R5

    10.71        0.15        0.68        0.83        (0.18                   (0.18     11.36        7.86        4,192        0.33        0.33        1.43        83   

For the Year Ended October 31, 2011(7)

  

           

A

  $ 10.55      $ 0.21      $ 0.22      $ 0.43      $ (0.27   $      $      $ (0.27   $ 10.71        4.09   $ 163,779        0.58     0.58     1.99     41

B

    10.55        0.13        0.21        0.34        (0.18                   (0.18     10.71        3.24        21,454        1.37        1.37        1.20        41   

C

    10.54        0.13        0.22        0.35        (0.19                   (0.19     10.70        3.32        55,946        1.32        1.32        1.23        41   

I

    10.54        0.23        0.22        0.45        (0.30                   (0.30     10.69        4.29        1,248        0.30        0.30        2.16        41   

R3

    10.59        0.18        0.21        0.39        (0.24                   (0.24     10.74        3.67        7,324        0.93        0.93        1.48        41   

R4

    10.54        0.21        0.20        0.41        (0.26                   (0.26     10.69        3.95        13,142        0.62        0.62        1.93        41   

R5

    10.55        0.23        0.23        0.46        (0.30                   (0.30     10.71        4.36        4,788        0.32        0.32        2.30        41   

For the Year Ended October 31, 2010(7)

  

           

A

  $ 9.57      $ 0.23      $ 0.98      $ 1.21      $ (0.23   $      $      $ (0.23   $ 10.55        12.74   $ 163,353        0.58     0.58     2.26     28

B

    9.57        0.15        0.97        1.12        (0.14                   (0.14     10.55        11.83        23,697        1.38        1.38        1.48        28   

C

    9.56        0.15        0.98        1.13        (0.15                   (0.15     10.54        11.92        53,036        1.33        1.33        1.51        28   

I

    9.56        0.28        0.95        1.23        (0.25                   (0.25     10.54        13.02        741        0.33        0.33        2.51        28   

R3

    9.61        0.18        1.00        1.18        (0.20                   (0.20     10.59        12.41        3,357        0.94        0.93        1.75        28   

R4

    9.56        0.22        0.98        1.20        (0.22                   (0.22     10.54        12.71        12,932        0.62        0.62        2.19        28   

R5

    9.57        0.25        0.98        1.23        (0.25                   (0.25     10.55        13.02        6,107        0.32        0.32        2.51        28   

 

The accompanying notes are an integral part of these financial statements.

 

 

  42  

 


Hartford Funds – Asset Allocation Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)(4)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
The Hartford Growth Allocation Fund               

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $   15.10      $ 0.10      $ 0.34      $ 0.44      $ (0.34   $   (3.24   $   —      $   (3.58   $   11.96        4.64 %(5)    $   631,719        0.55 %(6)      0.54 %(6)      1.67 %(6)      10

B

    14.91        0.10        0.28        0.38        (0.20     (3.24            (3.44     11.85        4.15 (5)      30,028        1.48 (6)      1.38 (6)      1.66 (6)      10   

C

    14.90        0.07        0.32        0.39        (0.25     (3.24            (3.49     11.80        4.28 (5)      204,634        1.29 (6)      1.28 (6)      1.12 (6)      10   

I

    15.06        0.36        0.09        0.45        (0.38     (3.24            (3.62     11.89        4.76 (5)      6,536        0.26 (6)      0.24 (6)      5.96 (6)      10   

R3

    14.83        0.10        0.31        0.41        (0.31     (3.24            (3.55     11.69        4.43 (5)      17,934        0.89 (6)      0.83 (6)      1.63 (6)      10   

R4

    15.04        0.10        0.33        0.43        (0.34     (3.24            (3.58     11.89        4.55 (5)      16,193        0.59 (6)      0.53 (6)      1.62 (6)      10   

R5

    15.13        0.11        0.35        0.46        (0.38     (3.24            (3.62     11.97        4.78 (5)      6,594        0.29 (6)      0.23 (6)      1.83 (6)      10   

For the Year Ended October 31, 2014

  

           

A

  $ 14.27      $ 0.10      $ 0.81      $ 0.91      $   (0.08   $      $      $ (0.08   $ 15.10        6.40   $ 628,969        0.57     0.56     0.66     103

B

    14.13          (0.01       0.79          0.78                                    14.91        5.52        40,575        1.42        1.42        (0.07     103   

C

    14.11        (0.01     0.80        0.79                                    14.90        5.60        209,438        1.30        1.29        (0.06     103   

I

    14.23        0.14        0.82        0.96        (0.13                   (0.13     15.06        6.74        6,553        0.25        0.24        0.92        103   

R3

    14.02        0.05        0.80        0.85        (0.04                   (0.04     14.83        6.09        19,608        0.87        0.87        0.36        103   

R4

    14.22        0.10        0.81        0.91        (0.09                   (0.09     15.04        6.39        16,704        0.57        0.57        0.67        103   

R5

    14.29        0.14        0.82        0.96        (0.12                   (0.12     15.13        6.75        6,485        0.27        0.27        0.96        103   

For the Year Ended October 31, 2013

  

           

A

  $ 12.21      $ 0.13      $ 2.26      $ 2.39      $ (0.33   $      $      $ (0.33   $ 14.27        20.02   $ 610,007        0.59     0.59     0.97     20

B

    12.09        0.04        2.22        2.26        (0.22                   (0.22     14.13        19.00        64,592        1.42        1.42        0.35        20   

C

    12.08        0.04        2.24        2.28        (0.25                   (0.25     14.11        19.17        212,687        1.32        1.32        0.28        20   

I

    12.17        0.15        2.28        2.43        (0.37                   (0.37     14.23        20.46        4,648        0.27        0.27        1.18        20   

R3

    12.01        0.09        2.23        2.32        (0.31                   (0.31     14.02        19.71        19,453        0.88        0.88        0.71        20   

R4

    12.15        0.14        2.25        2.39        (0.32                   (0.32     14.22        20.11        17,221        0.58        0.58        1.07        20   

R5

    12.22        0.19        2.25        2.44        (0.37                   (0.37     14.29        20.44        6,569        0.28        0.28        1.48        20   

For the Year Ended October 31, 2012

  

           

A

  $ 11.24      $ 0.07      $ 1.01      $ 1.08      $ (0.11   $      $      $ (0.11   $ 12.21        9.75   $ 520,278        0.61     0.61     0.58     95 %(8) 

B

    11.11        (0.02     1.01        0.99        (0.01                   (0.01     12.09        8.93        89,586        1.41        1.41        (0.20     95 (8) 

C

    11.11        (0.02     1.01        0.99        (0.02                   (0.02     12.08        8.97        196,748        1.34        1.34        (0.15     95 (8) 

I

    11.21        0.11        1.00        1.11        (0.15                   (0.15     12.17        10.08        3,268        0.29        0.29        0.91        95 (8) 

R3

    11.07        0.02        1.01        1.03        (0.09                   (0.09     12.01        9.43        17,513        0.89        0.89        0.21        95 (8) 

R4

    11.18        0.07        1.02        1.09        (0.12                   (0.12     12.15        9.83        17,299        0.59        0.59        0.60        95 (8) 

R5

    11.25        0.10        1.02        1.12        (0.15                   (0.15     12.22        10.11        7,954        0.29        0.29        0.82        95 (8) 

For the Year Ended October 31, 2011(7)

  

           

A

  $ 11.01      $ 0.06      $ 0.24      $ 0.30      $ (0.07   $      $      $ (0.07   $ 11.24        2.72   $ 394,691        0.59     0.59     0.54     36

B

    10.90        (0.03     0.24        0.21                                    11.11        1.93        79,711        1.38        1.38        (0.25     36   

C

    10.89        (0.02     0.24        0.22                                    11.11        2.02        156,463        1.33        1.33        (0.19     36   

I

    10.97        0.10        0.25        0.35        (0.11                   (0.11     11.21        3.15        2,455        0.26        0.26        0.86        36   

R3

    10.87        0.04        0.23        0.27        (0.07                   (0.07     11.07        2.48        9,689        0.89        0.89        0.24        36   

R4

    10.95        0.07        0.23        0.30        (0.07                   (0.07     11.18        2.74        14,605        0.59        0.59        0.55        36   

R5

    11.02        0.10        0.23        0.33        (0.10                   (0.10     11.25        3.02        4,457        0.29        0.29        0.86        36   

For the Year Ended October 31, 2010

  

           

A

  $ 9.58      $ 0.07      $ 1.42      $ 1.49      $ (0.06   $      $      $ (0.06   $ 11.01        15.60   $ 405,386        0.61     0.61     0.67     23

B

    9.50        (0.01     1.41        1.40                                    10.90        14.74        93,002        1.41        1.41        (0.13     23   

C

    9.49        (0.01     1.41        1.40                                    10.89        14.75        167,745        1.34        1.34        (0.07     23   

I

    9.55        0.10        1.42        1.52        (0.10                   (0.10     10.97        15.96        3,005        0.27        0.27        1.02        23   

R3

    9.50        0.03        1.41        1.44        (0.07                   (0.07     10.87        15.21        6,314        0.90        0.90        0.35        23   

R4

    9.53        0.07        1.42        1.49        (0.07                   (0.07     10.95        15.67        13,734        0.59        0.59        0.66        23   

R5

    9.58        0.10        1.43        1.53        (0.09                   (0.09     11.02        16.06        4,838        0.29        0.29        0.98        23   

 

The accompanying notes are an integral part of these financial statements.

 

 

  43  

 


Hartford Funds – Asset Allocation Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)(4)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
Hartford Moderate Allocation Fund               

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $   13.16      $   0.09      $   0.23      $   0.32      $   (0.23   $   (0.99   $   —      $   (1.22   $   12.26        2.90 %(5)    $   450,416        0.55 %(6)      0.55 %(6)      1.50 %(6)      10

B

    13.06        0.07        0.21        0.28        (0.21     (0.99            (1.20     12.14        2.51 (5)      18,593        1.42 (6)      1.41 (6)      1.12 (6)      10   

C

    13.05        0.06        0.21        0.27        (0.21     (0.99            (1.20     12.12        2.48 (5)      154,278        1.28 (6)      1.28 (6)      0.92 (6)      10   

I

    13.16        0.13        0.21        0.34        (0.24     (0.99            (1.23     12.27        3.06 (5)      10,843        0.24 (6)      0.24 (6)      2.19 (6)      10   

R3

    13.04        0.10        0.20        0.30        (0.22     (0.99            (1.21     12.13        2.75 (5)      28,660        0.89 (6)      0.89 (6)      1.70 (6)      10   

R4

    13.16        0.08        0.24        0.32        (0.23     (0.99            (1.22     12.26        2.87 (5)      16,769        0.59 (6)      0.59 (6)      1.37 (6)      10   

R5

    13.17        0.10        0.24        0.34        (0.24     (0.99            (1.23     12.28        3.05 (5)      8,730        0.29 (6)      0.29 (6)      1.69 (6)      10   

For the Year Ended October 31, 2014

  

           

A

  $ 12.86      $ 0.09      $ 0.36      $ 0.45      $ (0.13   $ (0.02   $      $ (0.15   $ 13.16        3.54   $ 462,724        0.55     0.55     0.69     28

B

    12.75        (0.01     0.34        0.33               (0.02            (0.02     13.06        2.62        25,234        1.39        1.39        (0.06     28   

C

    12.74        (0.01     0.37        0.36        (0.03     (0.02            (0.05     13.05        2.79        164,473        1.28        1.28        (0.04     28   

I

    12.88        0.13        0.37        0.50        (0.20     (0.02            (0.22     13.16        3.87        11,868        0.24        0.24        0.95        28   

R3

    12.74        0.04        0.35        0.39        (0.07     (0.02            (0.09     13.04        3.11        38,607        0.88        0.88        0.34        28   

R4

    12.86        0.08        0.36        0.44        (0.12     (0.02            (0.14     13.16        3.44        22,195        0.58        0.58        0.64        28   

R5

    12.89        0.13        0.36        0.49        (0.19     (0.02            (0.21     13.17        3.79        9,133        0.28        0.28        0.97        28   

For the Year Ended October 31, 2013

  

           

A

  $ 12.00      $ 0.12      $ 1.07      $ 1.19      $ (0.33   $      $      $ (0.33   $ 12.86        10.13   $ 484,156        0.55     0.55     1.01     21

B

    11.93        0.05        1.04        1.09        (0.27                   (0.27     12.75        9.31        42,407        1.37        1.37        0.38        21   

C

    11.93        0.03        1.06        1.09        (0.28                   (0.28     12.74        9.34        174,647        1.28        1.28        0.27        21   

I

    11.99        0.14        1.10        1.24        (0.35                   (0.35     12.88        10.53        9,649        0.24        0.24        1.18        21   

R3

    11.90        0.08        1.07        1.15        (0.31                   (0.31     12.74        9.87        41,503        0.88        0.88        0.65        21   

R4

    11.99        0.17        1.02        1.19        (0.32                   (0.32     12.86        10.18        22,776        0.58        0.58        1.36        21   

R5

    12.00        0.17        1.07        1.24        (0.35                   (0.35     12.89        10.53        10,161        0.28        0.28        1.37        21   

For the Year Ended October 31, 2012(7)

  

           

A

  $ 11.21      $ 0.11      $ 0.82      $ 0.93      $ (0.14   $      $      $ (0.14   $ 12.00        8.41   $ 473,562        0.55     0.55     0.99     79

B

    11.19        0.01        0.81        0.82        (0.08                   (0.08     11.93        7.42        64,262        1.35        1.35        0.22        79   

C

    11.18        0.02        0.82        0.84        (0.09                   (0.09     11.93        7.54        171,252        1.29        1.29        0.23        79   

I

    11.21        0.14        0.81        0.95        (0.17                   (0.17     11.99        8.57        8,563        0.27        0.27        1.11        79   

R3

    11.14        0.07        0.81        0.88        (0.12                   (0.12     11.90        7.94        38,637        0.89        0.89        0.57        79   

R4

    11.21        0.11        0.81        0.92        (0.14                   (0.14     11.99        8.31        35,982        0.58        0.58        0.93        79   

R5

    11.21        0.14        0.82        0.96        (0.17                   (0.17     12.00        8.63        11,846        0.28        0.28        1.25        79   

For the Year Ended October 31, 2011(7)

  

           

A

  $ 11.03      $ 0.17      $ 0.21      $ 0.38      $ (0.20   $      $      $ (0.20   $ 11.21        3.39   $ 501,962        0.54     0.54     1.45     36

B

    11.00        0.07        0.22        0.29        (0.10                   (0.10     11.19        2.64        78,784        1.33        1.33        0.66        36   

C

    10.99        0.08        0.22        0.30        (0.11                   (0.11     11.18        2.72        167,049        1.28        1.28        0.71        36   

I

    11.02        0.19        0.23        0.42        (0.23                   (0.23     11.21        3.81        5,333        0.24        0.24        1.72        36   

R3

    10.96        0.13        0.21        0.34        (0.16                   (0.16     11.14        3.12        29,124        0.88        0.88        1.06        36   

R4

    11.02        0.17        0.21        0.38        (0.19                   (0.19     11.21        3.46        36,188        0.57        0.57        1.33        36   

R5

    11.03        0.19        0.22        0.41        (0.23                   (0.23     11.21        3.67        11,208        0.27        0.27        1.73        36   

For the Year Ended October 31, 2010(7)

  

           

A

  $ 9.79      $ 0.15      $ 1.24      $ 1.39      $ (0.15   $      $      $ (0.15   $ 11.03        14.33   $ 519,328        0.54     0.54     1.48     25

B

    9.76        0.07        1.24        1.31        (0.07                   (0.07     11.00        13.44        91,904        1.35        1.35        0.68        25   

C

    9.75        0.08        1.24        1.32        (0.08                   (0.08     10.99        13.55        175,611        1.29        1.29        0.74        25   

I

    9.78        0.18        1.24        1.42        (0.18                   (0.18     11.02        14.65        3,685        0.28        0.28        1.73        25   

R3

    9.74        0.13        1.23        1.36        (0.14                   (0.14     10.96        14.02        18,235        0.88        0.88        1.06        25   

R4

    9.78        0.15        1.24        1.39        (0.15                   (0.15     11.02        14.32        19,647        0.58        0.58        1.45        25   

R5

    9.79        0.18        1.24        1.42        (0.18                   (0.18     11.03        14.64        13,874        0.28        0.28        1.76        25   

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


Hartford Funds – Asset Allocation Funds

Financial Highlights – (continued)

 

 

 

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable.
(4)  Ratios do not include expenses of the Underlying Funds and/or ETFs/ETNs, if applicable.
(5)  Not annualized.
(6)  Annualized.
(7)  Net investment income (loss) per share amounts have been calculated using the SEC method.
(8)  During the year ended October 31, 2012, the Fund incurred $36.1 million in sales of securities held associated with the transition of assets from The Hartford Equity Growth Allocation Fund, which merged into the Growth Allocation Fund on May 25, 2012. These sales are excluded from the portfolio turnover calculation.

 

The accompanying notes are an integral part of these financial statements.

 

 

45

 


Hartford Funds – Asset Allocation Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of The Hartford Mutual Funds, Inc. (the “Company”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by The Board of Directors of the companies (the “Directors”). Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

46

 


Hartford Funds – Asset Allocation Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternatives Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

 

47

 


Hartford Funds – Asset Allocation Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds’ Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

48

 


Hartford Funds – Asset Allocation Funds

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

The Hartford Conservative Allocation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
 

Expenses paid
during the period

November 1, 2014
through April 30,
2015

  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,013.20    $     2.99    $     1,000.00    $     1,021.82    $     3.01      0.60   181      365   

Class B

$ 1,000.00    $ 1,009.10    $ 7.12    $ 1,000.00    $ 1,017.70    $ 7.15      1.43   181      365   

Class C

$ 1,000.00    $ 1,009.50    $ 6.63    $ 1,000.00    $ 1,018.20    $ 6.66      1.33   181      365   

Class I

$ 1,000.00    $ 1,014.10    $ 1.60    $ 1,000.00    $ 1,023.21    $ 1.61      0.32   181      365   

Class R3

$ 1,000.00    $ 1,011.50    $ 4.64    $ 1,000.00    $ 1,020.18    $ 4.66      0.93   181      365   

Class R4

$ 1,000.00    $ 1,013.00    $ 3.14    $ 1,000.00    $ 1,021.67    $ 3.16      0.63   181      365   

Class R5

$ 1,000.00    $ 1,014.00    $ 1.65    $ 1,000.00    $ 1,023.16    $ 1.66      0.33   181      365   

 

 

49

 


Hartford Funds – Asset Allocation Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Growth Allocation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,046.40    $     2.74    $     1,000.00    $     1,022.12    $     2.71      0.54   181      365   

Class B

$ 1,000.00    $ 1,041.50    $ 6.99    $ 1,000.00    $ 1,017.95    $ 6.90      1.38   181      365   

Class C

$ 1,000.00    $ 1,042.80    $ 6.48    $ 1,000.00    $ 1,018.45    $ 6.41      1.28   181      365   

Class I

$ 1,000.00    $ 1,047.60    $ 1.22    $ 1,000.00    $ 1,023.60    $ 1.20      0.24   181      365   

Class R3

$ 1,000.00    $ 1,044.30    $ 4.21    $ 1,000.00    $ 1,020.68    $ 4.16      0.83   181      365   

Class R4

$ 1,000.00    $ 1,045.50    $ 2.69    $ 1,000.00    $ 1,022.17    $ 2.66      0.53   181      365   

Class R5

$ 1,000.00    $ 1,047.80    $ 1.17    $ 1,000.00    $ 1,023.65    $ 1.15      0.23   181      365   

Hartford Moderate Allocation Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,029.00    $     2.77    $     1,000.00    $     1,022.07    $     2.76      0.55   181      365   

Class B

$ 1,000.00    $ 1,025.10    $ 7.08    $ 1,000.00    $ 1,017.80    $ 7.05      1.41   181      365   

Class C

$ 1,000.00    $ 1,024.80    $ 6.43    $ 1,000.00    $ 1,018.45    $ 6.41      1.28   181      365   

Class I

$ 1,000.00    $ 1,030.60    $ 1.21    $ 1,000.00    $ 1,023.60    $ 1.20      0.24   181      365   

Class R3

$ 1,000.00    $ 1,027.50    $ 4.47    $ 1,000.00    $ 1,020.38    $ 4.46      0.89   181      365   

Class R4

$ 1,000.00    $ 1,028.70    $ 2.97    $ 1,000.00    $ 1,021.87    $ 2.96      0.59   181      365   

Class R5

$ 1,000.00    $ 1,030.50    $ 1.46    $ 1,000.00    $ 1,023.36    $ 1.45      0.29   181      365   

 

 

50

 


Hartford Funds – Asset Allocation Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Market, Selection, and Strategy Risk: The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Fund-of-Funds Risk: The Fund invests in a number of Underlying Funds, and is subject to the risks of the Underlying Funds in direct proportion to the amount of assets it invests in each Underlying Fund. The Underlying Funds may invest in the following: foreign securities including emerging markets, fixed-income securities (which carry credit and interest-rate risk) including junk bonds, small- and mid-cap stocks, mortgage- and asset-backed securities, and derivatives.

Asset-Allocation Strategy Risk: The portfolio managers’ asset-allocation strategy among the Underlying Funds may not always work as intended, and asset allocation does not guarantee better performance or reduce the risk of investment loss.

 

 

51

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-ALL15    6/15    118053     Printed in U.S.A. hartfordfunds .com


LOGO


      
LOGO   

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

LOGO

James Davey

President

Hartford Funds

 

1  The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Tax-Exempt Fixed Income Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

The Hartford Municipal Opportunities Fund

  8   

The Hartford Municipal Real Return Fund

  16   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  24   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  25   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  26   

Notes to Financial Statements (Unaudited)

  27   

Financial Highlights (Unaudited)

  40   

Directors and Officers (Unaudited)

  42   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  44   

Quarterly Portfolio Holdings Information (Unaudited)

  44   

Expense Examples (Unaudited)

  45   

Main Risks (Unaudited)

  46   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.

 


The Hartford Municipal Opportunities Fund inception 05/31/2007

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income that is generally exempt from federal income taxes and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      Since
Inception2
 

Municipal Opportunities A3

     1.24%         4.79%         4.89%         2.63%   

Municipal Opportunities A4

     -3.32%         0.07%         3.93%         2.03%   

Municipal Opportunities B3

     0.74%         3.89%         4.10%         1.83% 5 

Municipal Opportunities B4

     -4.25%         -1.11%         3.76%         1.83% 5 

Municipal Opportunities C3

     0.86%         4.01%         4.13%         1.87%   

Municipal Opportunities C4

     -0.14%         3.01%         4.13%         1.87%   

Municipal Opportunities I3

     1.36%         5.04%         5.16%         2.90%   

Barclays Municipal Bond 1-15 Year Blend (1-17) Index

     0.84%         3.46%         4.02%         4.67%   

 

1  Not Annualized
2  Inception: 05/31/2007
3  Without sales charge
4  With sales charge
5  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a modified investment strategy. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays Municipal Bond 1-15 Year Blend (1-17) Index is a sub-index of the Barclays Municipal Bond Index. It is a rules-based market value-weighted index of bonds with maturities of one year to 17 years engineered for the tax-exempt bond market.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  2  

 


The Hartford Municipal Opportunities Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Municipal Opportunities Class A

     0.69%         0.90%   

Municipal Opportunities Class B

     1.44%         1.72%   

Municipal Opportunities Class C

     1.44%         1.66%   

Municipal Opportunities Class I

     0.44%         0.65%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015, as supplemented June 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

 

The Fund filed an updated prospectus, dated June 1, 2015, with the U.S. Securities and Exchange Commission that became effective on that date. However, the information in this semiannual report is as of April 30, 2015 and does not reflect any changes made to the total annual fund operating expense table in the June 1, 2015 prospectus. The net expense ratios shown in the June 1, 2015 prospectus are 0.69%, 1.44%, 1.44% and 0.44% for Class A, Class B, Class C and Class I, respectively, and reflect contractual expense reimbursements in place until February 29, 2016. The gross expense ratios shown in the June 1, 2015 prospectus are 0.70%, 1.52%, 1.46% and 0.45% for Class A, Class B, Class C and Class I, respectively.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Timothy D. Haney, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Brad W. Libby

Managing Director and Fixed Income Portfolio Manager/Credit Analyst

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Municipal Opportunities Fund returned 1.24%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s Index, the Barclays Municipal Bond 1-15 Year Blend (1-17) Index , which returned 0.84% for the same period. The Fund also outperformed the 0.57% average return of the Lipper Intermediate 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?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

 

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In

 

 

 

  3  

 


The Hartford Municipal Opportunities Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

The yield on 10-year AAA rated general obligation municipal bonds (GOs) moved above those of 10-year Treasuries during the six-month period, as the GO-to-Treasury yield ratio rose from 89% to 103%. Technicals were somewhat weaker during the period, with negative tax-season mutual fund flows and continued strong issuance driven by refundings. However, we do expect demand to rebound by summer. Municipal credit spreads continued to tighten over the period, but remained attractive relative to corporates on an after-tax basis.

The Fund’s allocation to and security selection within high yield revenue bonds was the primary driver of outperformance relative to the Barclays Municipal Bond 1-15 Year Blend (1-17) Index during the period, largely due to selection within the Tobacco and Healthcare sectors. Security selection within Investment Grade Revenue Bonds, specifically within the Lease sector, and within Investment Grade Local General Obligation (GO) Bonds also contributed to outperformance relative to the Barclays Municipal Bond 1-15 Year Blend (1-17) Index. Duration and yield curve positioning contributed to outperformance relative to the Barclays Municipal Bond 1-15 Year Blend (1-17) Index, largely due to our overweights to the 10-year and 20-year portions of the curve, as rates fell significantly over the period.

Derivatives were not used in a significant manner in this Fund during the period and did not have a material impact on performance during the period.

What is the outlook?

We expect U.S. economic momentum to be positive for the remainder of 2015, although the global economic backdrop may pose a risk. We expect a slow increase in rates as the Fed moves policy and ended the quarter with a moderately pro-cyclical risk posture. We believe fundamentals are good for the broad universe of municipal credits, with modest revenue growth and ongoing balance sheet repair at most states and municipalities. High-grade municipals appear cheap relative to Treasuries, particularly from 10 years out. Traffic on toll roads has surprised to the upside, while airports continue to see modest positive traffic growth.

In Healthcare, early results under the Affordable Care Act are very positive, as higher coverage levels for the patient population flow through to hospitals’ bottom lines. We expect revenue bond

fundamentals to remain positive in the near-to medium-term and continue to favor credits in this area, especially special-tax, toll-road, airport, and health care.

 

 

 

 

4

 


The Hartford Municipal Real Return Fund inception 06/02/1986

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income exempt from federal income tax and after-tax inflation-adjusted total returns.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Municipal Real Return A2

     -0.41%         1.86%         3.46%         2.13%   

Municipal Real Return A3

     -4.89%         -2.73%         2.51%         1.66%   

Municipal Real Return B2

     -0.67%         1.12%         2.72%         1.52% 4 

Municipal Real Return B3

     -5.59%         -3.83%         2.36%         1.52% 4 

Municipal Real Return C2

     -0.78%         1.11%         2.71%         1.38%   

Municipal Real Return C3

     -1.76%         0.12%         2.71%         1.38%   

Municipal Real Return I2

     -0.28%         2.21%         3.75%         2.36%   

Municipal Real Return Y2

     -0.28%         2.23%         3.77%         2.37%   

Barclays Municipal Bond 1-15 Year Blend (1-17) Index

     0.84%         3.46%         4.02%         4.32%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/31/07. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a modified investment strategy. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays Municipal Bond 1-15 Year Blend (1-17) Index is a sub-index of the Barclays Municipal Bond Index. It is a rules-based market value-weighted index of bonds with maturities of one year to 17 years engineered for the tax-exempt bond market.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  5  

 


The Hartford Municipal Real Return Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Municipal Real Return Class A

     0.69%         0.90%   

Municipal Real Return Class B

     1.44%         1.73%   

Municipal Real Return Class C

     1.44%         1.64%   

Municipal Real Return Class I

     0.44%         0.66%   

Municipal Real Return Class Y

     0.44%         0.60%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015, as supplemented June 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

The Fund filed an updated prospectus, dated June 1, 2015, with the U.S. Securities and Exchange Commission that became effective on that date. However, the information in this semiannual report is as of April 30, 2015 and does not reflect any changes made to the total annual fund operating expense table in the June 1, 2015 prospectus. The net expense ratios shown in the June 1, 2015 prospectus are 0.69%, 1.44%, 1.44%, 0.44% and 0.44% for Class A, Class B, Class C, Class I and Class Y, respectively, and reflect contractual expense reimbursements in place until February 29, 2016. The gross expense ratios shown in the June 1, 2015 prospectus are 0.75%, 1.58%, 1.49%, 0.51% and 0.45% for Class A, Class B, Class C, Class I and Class Y, respectively.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Timothy D. Haney, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Brad W. Libby

Managing Director and Fixed Income Portfolio Manager/Credit Analyst

Wellington Management Company LLP

Lindsay T. Politi*

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Joseph F. Marvan, CFA**

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Municipal Real Return Fund returned -0.41%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays Municipal Bond 1-15 Year Blend (1-17) Index, which returned 0.84% for the same period. The Fund also underperformed the 0.57% average return of the Lipper Intermediate 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?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling

inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in

 

 

* Effective 5/7/2015, Ms. Politi is no longer a portfolio manager of the Fund.
** Mr. Marvan became a portfolio manager of the Fund effective May 6, 2015.

 

 

  6  

 


The Hartford Municipal Real Return Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April pushed the country into recession during the third quarter of 2014. The U.S.

economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

The yield on 10-year AAA rated general obligation municipal bonds (GOs) moved above those of 10-year Treasuries during the six-month period, as the GO-to-Treasury yield ratio rose from 89% to 103%. Technicals were somewhat weaker during the period, with negative tax-season mutual fund flows and continued strong issuance driven by refundings. However, we do expect demand to rebound by summer. Municipal credit spreads continued to tighten over the period, but remained attractive relative to corporates on an after-tax basis.

The Fund’s inflation overlay – which is implemented via CPI swap derivatives – was the main driver of relative underperformance during the period, as longer term inflation expectations decreased during the period. Security selection within investment grade revenue bonds contributed to returns relative to the Barclays Municipal Bond 1-15 Year Blend (1-17) Index, particularly within the lease, education, transportation, and special tax sectors. Security selection within investment grade general obligation (GO) bonds also contributed to relative performance over the period. Our allocation to and security selection within high yield revenue bonds was also additive over the period, in particular within the special tax and health care sectors.

What is the outlook?

We expect U.S. economic momentum to be positive for the remainder of 2015, although the global economic backdrop may pose a risk. We expect a slow increase in rates as the Fed moves policy and ended the quarter with a moderately pro-cyclical risk posture. We believe fundamentals are good for the broad universe of municipal credits, with modest revenue growth and ongoing balance sheet repair at most states and municipalities. High-grade municipals appear cheap relative to Treasuries, particularly from 10 years out. Traffic on toll roads has surprised to the upside, while airports continue to see modest positive traffic growth.

In Healthcare, early results under the Affordable Care Act are very positive, as higher coverage levels for the patient population flow through to hospitals’ bottom lines. We expect revenue bond fundamentals to remain positive in the near-to medium-term and continue to favor credits in this area, especially special-tax, toll-road, airport, and health care.

With regard to inflation, in the short term we expect sustained low energy prices to continue to weigh on realized inflation and inflation expectations. Longer term, we believe there are more upward pressures on core inflation in the U.S. and that longer-term inflation breakeven rates, which can be regarded as a proxy for the market’s inflation expectations, are compelling. We expect the Fed to begin raising rates later this year, as employment and wage growth suggest that the U.S. economy and labor market are strengthening despite weaker than expected first quarter indicators. We believe rising short term interest rates and an improving economic environment would be beneficial for bank loan investments.

We increased the portfolio’s inflation sensitivity during the period via the inflation overlay, with the hedge ratio, or inflation protection, at approximately 87% on a contribution to duration basis at the end of the period.

 

 

 

7

 


The Hartford Municipal Opportunities Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     6.3

Aa / AA

     36.0   

A

     26.9   

Baa / BBB

     7.7   

Ba / BB

     2.0   

B

     4.6   

Not Rated

     12.9   

Short-Term Instruments

     2.1   

Other Assets & Liabilities

     1.5   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Industry

as of April 30, 2015 (Unaudited)

 

Industry    Percentage of
Net Assets
 

Airport

     6.2

Development

     5.8   

Education

     4.0   

Facilities

     1.5   

General

     16.2   

General Obligation

     9.1   

Higher Education

     2.5   

Medical

     16.1   

Mello-Roos

     0.5   

Multifamily Hsg

     0.2   

Nursing Homes

     4.4   

Pollution

     0.6   

Power

     3.7   

School District

     4.0   

Single Family Hsg

     0.5   

Tobacco

     4.7   

Transportation

     9.6   

Utilities

     0.8   

Water

     6.0   

Short-Term Investments

     2.1   

Other Assets & Liabilities

     1.5   
  

 

 

 

Total

     100.0
  

 

 

 

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for reporting ease.

 

 

The accompanying notes are an integral part of these financial statements.

 

 

8

 


The Hartford Municipal Opportunities Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4%  
      Alabama - 1.3%  
 

Birmingham, AL, Baptist Medical Center Special Care Fac

 
$   1,855,000     

5.25%, 11/15/2016

  $ 1,898,388   
 

Jefferson County, AL, Sewer Rev

 
  2,000,000     

5.00%, 10/01/2017

    2,149,000   
 

Mobile, AL, Industrial Development Board Pollution

 
  1,540,000     

1.65%, 06/01/2034(1)

    1,558,542   
   

 

 

 
      5,605,930   
   

 

 

 
      Arizona - 2.3%  
 

Arizona State Health Fac Auth

 
  2,000,000     

5.00%, 12/01/2029

    2,285,900   
  2,000,000     

5.00%, 12/01/2030

    2,273,560   
 

Estrella Mountain Ranch, AZ, Community Fac Dist GO

 
  265,000     

6.20%, 07/15/2032

    277,058   
 

Pima County, AZ, IDA Education Rev, Legacy Traditional Charter School

 
  1,435,000     

8.50%, 07/01/2039

    1,814,586   
 

Salt River, AZ, Agricultural Improvement

 
  3,000,000     

5.00%, 12/01/2027

    3,533,460   
   

 

 

 
      10,184,564   
   

 

 

 
      California - 13.0%  
 

Bay Area, CA, Toll Auth Bridge Rev

 
  1,450,000     

1.50%, 04/01/2047(1)

    1,466,153   
 

California County, CA, Tobacco Securitization

 
  1,000,000     

5.00%, 06/01/2022

    1,167,470   
 

California State Communities DA Rev

 
  955,000     

0.96%, 04/01/2036(1)

    813,288   
  1,000,000     

5.63%, 10/01/2032

    1,071,440   
 

California State Department of Water Resources Power Supply Rev

 
  3,225,000     

5.00%, 05/01/2022

    3,902,218   
 

California State GO

 
  4,985,000     

6.50%, 04/01/2033

    5,992,169   
 

California State Health Facilities

 
  1,500,000     

6.00%, 07/01/2029

    1,749,810   
 

California State Public Works Board, Correctional Facilities Improvement

 
  1,000,000     

6.00%, 03/01/2035

    1,185,500   
 

California State Public Works Board, Lease Rev

 
  2,000,000     

5.25%, 10/01/2023

    2,402,260   
 

California State Public Works Board, State University Trustees

 
  2,000,000     

6.25%, 04/01/2034

    2,365,720   
 

Foothill-Eastern Transportation Corridor Agency

 
  660,000     

5.00%, 01/15/2053(1)

    710,411   
 

Golden State Tobacco Securitization Corp.

 
  5,000,000     

5.75%, 06/01/2047

    4,300,800   
 

Hemet, CA Unif School Dist FA Special Tax

 
  1,440,000     

5.00%, 09/01/2030

    1,632,240   
  535,000     

5.00%, 09/01/2031

    604,994   
 

Irvine, CA, Improvement Bond Act

 
  1,065,000     

4.00%, 09/02/2016

    1,105,640   
 

Long Beach, CA, FA Natural Gas

 
  425,000     

1.62%, 11/15/2027(1)

    387,770   
 

Oakland, CA, Airport Rev

 
  1,000,000     

5.00%, 05/01/2026

    1,124,630   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      California - 13.0% - (continued)  
 

Port of Oakland, CA

 
$ 985,000     

5.00%, 05/01/2021

  $ 1,154,036   
  500,000     

5.00%, 05/01/2023

    585,290   
 

Rancho Cucamonga, CA, Redev Agency Tax

 
    1,000,000     

5.00%, 09/01/2029

    1,163,320   
 

San Bernardino, CA, USD GO

 
  1,150,000     

5.00%, 08/01/2021

    1,368,466   
 

San Buenaventura, CA, Community Memorial Health System

 
  1,000,000     

7.50%, 12/01/2041

    1,230,360   
 

San Diego, CA, Redev Agency Tax Allocation

 
  3,000,000     

7.00%, 11/01/2039

    3,548,880   
 

San Joaquin Hills, CA, Transporation Auth

 
  875,000     

5.00%, 01/15/2029

    988,986   
 

San Jose, CA, Redev Agency

 
  2,575,000     

5.00%, 08/01/2022

    2,751,954   
  500,000     

6.50%, 08/01/2023

    557,695   
 

San Mateo Joint Powers Financing Auth

 
  1,250,000     

5.00%, 06/15/2029

    1,456,637   
  1,250,000     

5.00%, 06/15/2030

    1,449,050   
 

Santa Cruz County, CA, Redev Agency

 
  1,250,000     

5.00%, 09/01/2024

    1,510,700   
  1,335,000     

6.63%, 09/01/2029

    1,547,519   
 

Santa Margarita, CA, Water Dist Special Tax

 
  500,000     

4.25%, 09/01/2021

    543,840   
  500,000     

5.00%, 09/01/2022

    573,775   
  500,000     

5.00%, 09/01/2023

    573,145   
  1,130,000     

5.00%, 09/01/2028

    1,283,996   
 

Twin Rivers, CA, Unif School Dist Cops

 
  3,000,000     

3.45%, 07/01/2037(1)

    3,005,550   
   

 

 

 
      57,275,712   
   

 

 

 
      Colorado - 0.3%  
 

Denver, CO, City and County Special Fac Airport Rev

 
  1,000,000     

5.00%, 11/15/2018

    1,123,860   
   

 

 

 
      Connecticut - 1.4%  
 

City of New Haven, CT, GO

 
  2,600,000     

5.00%, 08/01/2024

    3,058,068   
 

Connecticut Housing FA

 
  995,000     

4.00%, 11/15/2044

    1,074,222   
 

Hartford, CT, GO

 
  1,850,000     

5.00%, 04/01/2026

    2,117,047   
   

 

 

 
      6,249,337   
   

 

 

 
      District of Columbia - 0.6%  
 

Metropolitan Washington, DC, Airport Auth System Rev

 
  1,000,000     

5.00%, 10/01/2020

    1,159,640   
  1,450,000     

5.00%, 10/01/2022

    1,709,753   
   

 

 

 
      2,869,393   
   

 

 

 
      Florida - 8.6%  
 

Arlington of Naples

 
  500,000     

6.50%, 05/15/2020(2)

    500,695   
  500,000     

7.00%, 05/15/2024(2)

    559,830   
  2,000,000     

5.00%, 07/01/2027

    2,325,040   
 

Florida Village Community Development Dist No 8

 
  2,195,000     

6.38%, 05/01/2038

    2,449,225   
 

Greater Orlando, FL, Aviation Auth

 
  3,300,000     

5.00%, 10/01/2021

    3,875,025   
  1,040,000     

5.00%, 10/01/2024

    1,189,022   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  9  

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Florida - 8.6% - (continued)  
 

Highlands County, FL, Adventist Health (Prerefunded with US Gov’t Securities)

 
$ 125,000     

5.25%, 11/15/2036(1)

  $ 133,926   
 

Highlands County, FL, Health Fac Auth

 
    1,905,000     

5.25%, 11/15/2036(1)

    2,014,576   
 

Jacksonville, FL, Econ Development Commission Obligor: Florida Proton Therapy Institute, Inc.

 
  2,000,000     

6.25%, 09/01/2027

    2,154,000   
 

Jacksonville, FL, Sales Tax Rev

 
  2,700,000     

5.00%, 10/01/2021

    3,216,861   
 

Lake County, FL, School Board

 
  2,000,000     

5.00%, 06/01/2026

    2,327,680   
 

Lakeland, FL, Retirement Community Rev

 
  1,750,000     

6.38%, 01/01/2043

    1,863,312   
 

Magnolia Creek, FL, Community Development Dist Capital Improvement

 
  500,000     

0.03%, 05/01/2039(3)

    175,000   
 

Miami-Dade County, FL

 
  3,000,000     

5.00%, 07/01/2032

    3,417,480   
 

Miami-Dade County, FL, Aviation Rev

 
  1,000,000     

5.00%, 10/01/2024

    1,152,700   
  2,500,000     

5.00%, 10/01/2026

    2,840,425   
 

Miami-Dade County, FL, School Board

 
  2,000,000     

5.00%, 08/01/2027(4)

    2,224,420   
 

Orange County, FL, School Board

 
  2,130,000     

5.00%, 08/01/2026

    2,517,639   
 

Palm Beach County, FL, Health System

 
  1,000,000     

6.75%, 06/01/2024

    1,125,290   
 

River Bend Community Development Dist, Capital Improvement Rev

 
  1,560,000     

0.00%, 11/01/2015(5)

    201,240   
 

Village, FL, Community Development Dist #11

 
  500,000     

3.25%, 05/01/2019

    501,325   
 

Volusia County, FL, School Board

 
  775,000     

5.00%, 08/01/2025

    919,855   
   

 

 

 
      37,684,566   
   

 

 

 
      Georgia - 1.2%      
 

Clayton County, GA, DA

 
  1,965,000     

9.00%, 06/01/2035

    1,977,085   
 

Dekalb Newton and Gwinnett Counties, GA, Joint DA

 
  1,500,000     

6.00%, 07/01/2034

    1,703,400   
 

Marietta, GA, DA Life University, Inc. Proj

 
  1,500,000     

7.00%, 06/15/2030

    1,600,905   
   

 

 

 
      5,281,390   
   

 

 

 
      Hawaii - 0.3%      
 

Hawaii State Dept of Transportation

 
  1,000,000     

5.00%, 08/01/2022

    1,166,730   
   

 

 

 
      Idaho - 0.3%      
 

Idaho State Helath Facilities Auth Rev

 
  1,000,000     

5.00%, 03/01/2032

    1,112,160   
   

 

 

 
      Illinois - 9.4%      
 

Aurora, IL, Tax Increment Rev

 
  830,000     

6.75%, 12/30/2027

    905,912   
 

Chicago, IL, Board of Education

 
  1,625,000     

6.00%, 01/01/2020

    1,790,051   
 

Chicago, IL, O’Hare International Airport Rev

 
  855,000     

5.25%, 01/01/2027

    857,685   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Illinois - 9.4% - (continued)      
 

Chicago, IL, Park Dist, GO

 
$ 2,750,000     

5.00%, 01/01/2026

  $ 3,070,842   
 

Chicago, IL, Transit Auth.

 
  2,770,000     

5.00%, 06/01/2021

    2,925,840   
 

City of Chicago, IL, GO

 
    1,700,000     

4.00%, 01/01/2018

    1,758,429   
 

Illinois FA Rev, Art Institute of Chicago Ser A

 
  1,400,000     

6.00%, 03/01/2038

    1,627,472   
 

Illinois FA Rev, Silver Cross Hospital and Medicine

 
  3,000,000     

5.50%, 08/15/2030

    3,277,470   
 

Illinois Metropolitan Pier & Exposition Auth

 
  4,000,000     

4.32%, 12/15/2024(3)

    2,917,640   
 

Illinois State FA Rev

 
  1,650,000     

5.00%, 11/15/2031

    1,857,784   
  1,500,000     

5.00%, 11/15/2033

    1,664,760   
  1,250,000     

7.75%, 08/15/2034

    1,544,950   
 

Illinois State GO

 
  1,500,000     

5.00%, 01/01/2022

    1,656,840   
  1,500,000     

5.00%, 08/01/2025

    1,634,685   
  1,500,000     

5.25%, 01/01/2021

    1,687,590   
 

Illinois State Sales Tax Rev

 
  1,830,000     

6.50%, 06/15/2022

    2,125,106   
 

Illinois State Toll Highway Auth

 
  2,000,000     

5.00%, 01/01/2030

    2,305,900   
 

Illinois State Unemployment Insurance Fund

 
  1,000,000     

5.00%, 06/15/2019

    1,004,990   
  1,500,000     

5.00%, 12/15/2019

    1,507,485   
 

Kane Cook & DuPage Counties GO

 
  2,800,000     

5.00%, 01/01/2031

    3,153,500   
 

Metropolitan Pier & Exposition Auth.

  

  1,630,000     

5.00%, 12/15/2020

    1,891,110   
   

 

 

 
      41,166,041   
   

 

 

 
      Indiana - 1.8%      
 

Indiana State FA Hospital Rev

  

  1,000,000     

5.00%, 12/01/2029

    1,158,100   
 

Indiana State Financing Auth Rev

  

  1,625,000     

5.00%, 03/01/2023

    1,821,154   
 

Indianapolis, IN Airport Auth Rev

  

  1,000,000     

5.00%, 01/01/2029

    1,123,040   
 

Richmond, IN, Hospital Auth. Rev

  

  775,000     

5.00%, 01/01/2035

    852,833   
 

Vigo County, IN, Hospital Auth

  

  2,000,000     

5.75%, 09/01/2042(2)

    2,024,040   
 

Whiting, IN, Environmental Facilities Rev

  

  1,000,000     

1.85%, 06/01/2044(1)

    1,003,790   
   

 

 

 
      7,982,957   
   

 

 

 
      Kansas - 0.3%      
 

Wyandotte County-Kansas City, KS

  

  1,000,000     

5.00%, 09/01/2025

    1,181,170   
   

 

 

 
      Kentucky - 0.9%      
 

Kentucky Public Transportation Inf Auth

  

  350,000     

5.00%, 07/01/2017

    379,621   
 

Louisville & Jefferson County, KY

  

  1,515,000     

5.00%, 12/01/2023

    1,760,157   
 

Louisville & Jefferson County, KY, Metropolitan

  

  1,710,000     

1.65%, 10/01/2033(1)

    1,730,657   
   

 

 

 
      3,870,435   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

10

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Louisiana - 1.8%      
 

Louisana State, Tobacco Settlement Financing Corp.

 
$ 2,500,000     

5.00%, 05/15/2026

  $ 2,665,800   
 

Louisiana State, Local Gov’t Environmental Facs. & Community Dev. Auth

 
  1,750,000     

6.00%, 11/15/2035

    1,751,312   
 

New Orleans, LA, Aviation Board

  

  750,000     

5.00%, 01/01/2034

    826,598   
    2,500,000     

6.00%, 01/01/2023

    2,873,625   
   

 

 

 
      8,117,335   
   

 

 

 
      Maryland - 0.3%      
 

Westminster Maryland Rev

  

  1,500,000     

4.38%, 07/01/2021

    1,542,735   
   

 

 

 
      Massachusetts - 1.6%      
 

Massachusetts State Development Fin Agency Rev

 
  1,200,000     

8.00%, 04/15/2031

    1,413,468   
 

Massachusetts State Health and Education Fac Auth

 
  1,390,000     

8.00%, 10/01/2039

    1,433,104   
 

Massachusetts State Health and Education Fac Auth Rev

 
  965,000     

8.00%, 10/01/2039

    995,455   
 

Massachusetts State PA

  

  455,000     

4.00%, 07/01/2022

    505,437   
  385,000     

5.00%, 07/01/2021

    450,600   
  650,000     

5.00%, 07/01/2023

    760,487   
 

Tufts Medical Center, Inc

 
  1,200,000     

5.00%, 01/01/2019

    1,343,832   
   

 

 

 
      6,902,383   
   

 

 

 
      Michigan - 4.0%      
 

Kent, MI, Hospital FA

  

  4,000,000     

6.00%, 07/01/2035

    4,027,040   
   

 

 

 
 

Michigan FA

  

  1,000,000     

5.00%, 07/01/2018

    1,097,390   
  650,000     

5.00%, 07/01/2029

    715,617   
  2,700,000     

5.00%, 10/01/2030

    3,082,536   
 

Michigan St FA

 
  2,555,000     

5.00%, 06/01/2033

    2,838,043   
  1,000,000     

5.00%, 06/01/2034

    1,107,510   
 

Royal Oak, MI, Hospital FA

 
  2,000,000     

8.25%, 09/01/2039

    2,471,860   
 

Wayne County, MI, Airport Auth Rev

 
  1,000,000     

5.00%, 12/01/2015

    1,025,330   
  1,000,000     

5.00%, 12/01/2030

    1,135,900   
   

 

 

 
      17,501,226   
   

 

 

 
      Mississippi - 0.7%      
 

Mississippi State Business Fin Corp.

 
  3,000,000     

1.63%, 12/01/2040(1)

    3,020,730   
   

 

 

 
      Missouri - 0.9%      
 

Kirkwood, MO, Industrial DA Retirement Community

 
  3,500,000     

8.25%, 05/15/2045

    4,015,165   
   

 

 

 
      Nevada - 1.0%      
 

Clark County, NV, School Dist GO

 
  1,625,000     

5.00%, 06/15/2020

    1,650,074   
 

Las Vegas, NV Spl Impt Dist

 
  365,000     

5.00%, 06/01/2027

    375,716   
  700,000     

5.00%, 06/01/2029

    715,344   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Nevada - 1.0% - (continued)      
 

Mesquite, NV, Special Improvement Dist 07-01

 
$ 415,000     

6.00%, 08/01/2027

  $ 421,628   
 

Nevada State Natural Resources GO

 
  1,110,000     

5.00%, 03/01/2026

    1,319,901   
   

 

 

 
      4,482,663   
   

 

 

 
      New Jersey - 3.6%      
 

New Jersey Health Care Facilities FA, Hospital Asset Transformation

 
  2,855,000     

5.75%, 10/01/2031

    3,296,440   
 

New Jersey State Econ DA

 
  1,510,000     

4.88%, 09/15/2019

    1,593,246   
  1,590,000     

5.00%, 03/01/2023

    1,766,840   
 

New Jersey State Educational FA Rev, University of Medicine & Dentistry

 
  2,000,000     

7.50%, 12/01/2032

    2,495,660   
 

New Jersey State Interstate Turnpike Auth Rev

 
  3,000,000     

5.00%, 01/01/2025

    3,480,000   
 

New Jersey State Transportation Trust Fund Auth

 
  5,000,000     

3.17%, 12/15/2032(3)

    2,120,700   
  1,000,000     

5.00%, 09/15/2017

    1,082,580   
   

 

 

 
      15,835,466   
   

 

 

 
      New Mexico - 1.0%      
 

Los Alamos County, NM, Tax Improvement Rev

 
  3,000,000     

5.88%, 06/01/2027

    3,445,320   
 

Montecito Estates, NM, Public Improvement Dist

 
  905,000     

7.00%, 10/01/2037

    941,725   
   

 

 

 
      4,387,045   
   

 

 

 
      New York - 13.5%      
 

City of New York, NY

 
  4,000,000     

6.25%, 10/15/2028

    4,695,179   
 

Liberty, NY, Corp. Development Goldman Sachs Headquarters

 
  2,000,000     

5.25%, 10/01/2035

    2,340,220   
 

New York City Housing Development Corp.

 
  940,000     

4.50%, 02/15/2048

    977,750   
 

New York City, NY, Water and Sewer Financing Auth Rev

 
  15,000,000     

5.00%, 06/15/2039

    17,038,500   
  2,100,000     

5.00%, 11/15/2020

    2,464,140   
 

New York Mortgage Agency Rev

 
  1,195,000     

3.50%, 10/01/2034

    1,254,559   
 

New York State Dormitory Auth Rev

 
  1,670,000     

5.00%, 03/15/2022

    1,972,070   
  2,000,000     

5.00%, 12/15/2027

    2,359,720   
  970,000     

5.00%, 03/15/2028

    1,069,309   
  1,000,000     

5.00%, 03/15/2030

    1,168,990   
 

New York State Energy Research & Development Auth

 
  860,000     

2.38%, 07/01/2026(1)

    859,063   
 

New York State Liberty Development Corp. Rev

 
  1,535,000     

5.15%, 11/15/2034(2)

    1,663,572   
 

New York State Thruway Auth

 
  1,000,000     

5.00%, 01/01/2019

    1,132,420   
  1,250,000     

5.00%, 05/01/2019

    1,419,300   
  1,000,000     

5.00%, 03/15/2021

    1,189,480   
 

New York State Urban Development Corp. Rev

 
  1,000,000     

5.00%, 03/15/2026

    1,182,080   
 

New York, NY, IDA Terminal One Group Assoc Proj AMT

 
  2,000,000     

5.50%, 01/01/2024(1)

    2,057,560   
  1,145,000     

5.00%, 06/15/2019

    1,265,110   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  11  

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      New York - 13.5% - (continued)      
 

PA of New York and New Jersey

 
$ 2,750,000     

5.00%, 10/15/2025

  $ 3,251,490   
 

Town of Oyster Bay, NY, GO

 
  2,340,000     

5.00%, 08/15/2024

    2,768,454   
 

TSASC, Inc.

 
    2,500,000     

5.00%, 06/01/2034

    2,260,250   
 

Ulster County, NY, Capital Resource Corp. Rev

 
  940,000     

3.72%, 09/15/2044(2)(3)

    704,022   
 

Ulster County, NY, IDA Kingston Regional Senior Living

 
  2,000,000     

6.00%, 09/15/2042

    1,970,760   
 

Yonkers, NY, GO

 
  885,000     

3.00%, 08/15/2019

    922,205   
  1,000,000     

5.00%, 03/15/2021

    1,162,110   
   

 

 

 
      59,148,313   
   

 

 

 
      North Carolina - 1.0%      
 

North Carolina Eastern Municipal Power

 
  1,325,000     

4.00%, 01/01/2020

    1,456,466   
 

North Carolina Medical Care Commission Retirement FA Rev, First Mortgage Galloway Ridge

 
  1,555,000     

5.88%, 01/01/2031

    1,719,348   
 

North Carolina State Medical Care Commission, Galloway Ridge, Inc.

 
  1,000,000     

6.00%, 01/01/2039

    1,097,030   
   

 

 

 
      4,272,844   
   

 

 

 
      Ohio - 3.9%      
 

Allen County, OH, Hospital Fac Rev

 
  2,000,000     

5.00%, 05/01/2023

    2,331,340   
 

Buckeye Tobacco Settlement FA

 
  4,000,000     

5.88%, 06/01/2047

    3,276,280   
 

Buckeye, OH, Tobacco Settlement FA

 
  6,680,000     

6.00%, 06/01/2042

    5,572,322   
 

Dayton, OH, City School Dist GO

 
  2,000,000     

5.00%, 11/01/2027

    2,416,400   
 

Lancaster, OH, Gas Rev

 
  2,275,000     

0.72%, 02/01/2019(1)

    2,267,197   
 

Ohio State Cultural Sports Fac Building Projects

 
  1,235,000     

5.00%, 04/01/2020

    1,431,699   
   

 

 

 
      17,295,238   
   

 

 

 
      Oregon - 0.4%      
 

Port of Portland, Oregon Airport Rev

 
  1,000,000     

5.00%, 07/01/2031

    1,127,450   
  750,000     

5.00%, 07/01/2032

    841,815   
   

 

 

 
      1,969,265   
   

 

 

 
      Other U.S. Territories - 0.2%      
 

Puerto Rico Highway & Transportation Auth

 
  705,000     

4.95%, 07/01/2026

    727,482   
   

 

 

 
      Pennsylvania - 3.8%      
 

Allegheny County, PA, Industrial DA Charter School

 
  985,000     

6.75%, 08/15/2035

    1,079,767   
 

Commonwealth FA

 
  2,000,000     

5.00%, 06/01/2026

    2,304,120   
 

Montgomery County, PA, Higher Education and Health

 
  1,165,000     

5.00%, 10/01/2023

    1,321,203   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Pennsylvania - 3.8% - (continued)      
 

Pennsylvania State GO

 
$ 1,000,000     

7.00%, 07/15/2028

  $ 1,079,820   
 

Pennsylvania State IDA

 
    2,250,000     

5.00%, 07/01/2021

    2,634,795   
 

Pennsylvania State Turnpike Commission Rev

 
  575,000     

0.99%, 12/01/2020(1)

    581,193   
  575,000     

1.09%, 12/01/2021(1)

    577,018   
  1,335,000     

6.00%, 06/01/2028

    1,510,392   
 

Philadelphia, PA, Municipal Auth

 
  750,000     

6.38%, 04/01/2029

    871,440   
  800,000     

6.50%, 04/01/2034

    928,368   
 

Pittsburgh, PA, School Dist GO

 
  1,575,000     

5.00%, 09/01/2021

    1,846,089   
  750,000     

5.00%, 09/01/2023

    867,540   
 

Susquehanna, PA, Regional Airport Auth System Rev

 
  1,000,000     

5.00%, 01/01/2019

    1,090,080   
   

 

 

 
      16,691,825   
   

 

 

 
      Rhode Island - 1.6%  
 

Cranston, RI, GO

 
  1,415,000     

5.00%, 07/01/2019

    1,584,022   
 

Rhode Island Health & Educational Bldg Corp.

 
  1,900,000     

5.00%, 05/15/2027(4)

    2,181,998   
 

Rhode Island State & Providence Plantations

 
  1,500,000     

4.00%, 10/01/2018

    1,626,120   
 

Rhode Island State Health & Educational Bldg Corp.

 
  1,655,000     

4.00%, 05/15/2017

    1,735,284   
   

 

 

 
      7,127,424   
   

 

 

 
      South Carolina - 0.1%  
 

Lancaster County, SC, Sun City Assessment

 
  1,987,000     

0.00%, 11/01/2017(5)

    397,400   
   

 

 

 
      South Dakota - 0.6%  
 

South Dakota State Education Enhancement

 
  1,000,000     

5.00%, 06/01/2026

    1,137,810   
 

South Dakota State Health & Educational FA

 
  1,000,000     

5.00%, 11/01/2029

    1,145,420   
 

South Dakota State Housing DA

 
  185,000     

6.13%, 05/01/2033

    187,165   
   

 

 

 
      2,470,395   
   

 

 

 
      Texas - 7.3%  
 

Arlington, TX, Higher Education Fin

 
  1,000,000     

5.00%, 08/15/2027

    1,180,410   
 

Brazos Harbor, TX, Industrial Development Corp.

 
  1,500,000     

5.90%, 05/01/2038(1)

    1,638,300   
 

Dallas, TX, Ind School Dist GO

 
  1,350,000     

5.00%, 08/15/2034

    1,368,131   
 

Dallas-Fort Worth, TX, International Airport Fac Improvement Corp.

 
  2,000,000     

6.15%, 01/01/2016

    2,007,460   
 

Harris County - Houston, TX

 
  250,000     

5.00%, 11/15/2032

    277,590   
  350,000     

5.00%, 11/15/2034

    385,662   
 

Lower Colorado River, TX, Auth Rev

 
  55,000     

7.25%, 05/15/2037

    55,109   
 

North East TX ISD, GO

 
  1,000,000     

5.00%, 08/01/2028

    1,179,360   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  12  

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Texas - 7.3% - (continued)  
 

North Texas Tollway Auth Rev

 
$ 2,995,000     

5.00%, 01/01/2022

  $ 3,531,794   
    2,500,000     

5.00%, 01/01/2030

    2,791,675   
 

San Antonio, TX, Airport System Rev

 
  1,985,000     

5.00%, 07/01/2023

    2,292,754   
 

San Antonio, TX, Water Rev

 
  2,200,000     

5.00%, 05/15/2026

    2,625,634   
 

Tarrant County, TX, Cultural Education Fac

 
  1,000,000     

5.00%, 10/01/2034

    1,085,880   
 

Texas State Transportation Commission

 
  1,500,000     

0.46%, 04/01/2032(1)

    1,500,675   
 

Texas State Transportation Commission Turnpike System

 
  1,250,000     

5.00%, 08/15/2032

    1,379,662   
 

Texas State Transportation Commission, GO

 
  2,500,000     

0.49%, 10/01/2041(1)

    2,497,500   
 

Travis County, TX, Health Fac Development

 
  2,000,000     

7.13%, 11/01/2040

    2,318,080   
 

Travis County, TX, Health Fac, Querencia Barton Creek Project

 
  600,000     

5.65%, 11/15/2035

    604,140   
 

Wylie, TX, ISD, GO

 
  3,500,000     

1.55%, 08/15/2018(3)

    3,368,680   
   

 

 

 
      32,088,496   
   

 

 

 
      Vermont - 0.2%  
 

Vermont State Econ DA Waste

 
  900,000     

4.75%, 04/01/2036(1)(2)

    901,827   
   

 

 

 
      Virginia - 0.5%  
 

Washington County, VA, Industrial DA Hospital

 
  1,750,000     

7.75%, 07/01/2038

    2,046,923   
   

 

 

 
      Washington - 3.0%  
 

Grant County, WA, Utility Dist #2

 
  1,825,000     

5.00%, 01/01/2022

    2,152,095   
  1,905,000     

5.00%, 01/01/2023

    2,241,137   
 

Washington State Health Care Fac Auth

 
  780,000     

5.00%, 07/01/2028(4)

    863,070   
  2,000,000     

5.00%, 03/01/2029

    2,292,200   
  1,650,000     

5.00%, 10/01/2042(1)

    1,944,558   
 

Washington State Health Care Fac Auth, VA Mason Medical

 
  3,600,000     

6.13%, 08/15/2037

    3,901,212   
   

 

 

 
      13,394,272   
   

 

 

 
      West Virginia - 0.3%  
 

West Virginia Economic Development Auth

 
  1,240,000     

1.90%, 03/01/2040(1)

    1,240,459   
   

 

 

 
      Wisconsin - 3.4%  
 

Milwaukee County, WI, Airport Rev

 
  1,790,000     

5.00%, 12/01/2025

    2,064,640   
 

Public Finance Auth.

 
  1,500,000     

5.00%, 09/01/2025(2)

    1,597,005   
 

Wisconsin Health and Educational Fac, Iowa Health System Obligated Group

 
  1,700,000     

5.00%, 12/01/2028

    1,982,013   
 

Wisconsin State

 
  2,685,000     

5.75%, 05/01/2033

    3,104,907   
  1,295,000     

6.00%, 05/01/2036

    1,509,970   
 

Wisconsin State Health & Educational Fac Auth Rev

 
  2,000,000     

5.00%, 11/15/2027

    2,329,340   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.4% - (continued)  
      Wisconsin - 3.4% - (continued)  
 

Wisconsin State Health and Educational Fac Auth Rev

 
$ 2,465,000     

5.25%, 08/15/2024

  $ 2,584,404   
   

 

 

 
      15,172,279   
   

 

 

 
 

Total Municipal Bonds
(cost $407,857,184)

  $ 423,503,435   
   

 

 

 
 

Total Long-Term Investments
(cost $407,857,184)

  $ 423,503,435   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.1%  
      Other Investment Pools & Funds - 2.1%  
    9,471,914     

JP Morgan Tax Free Money Market Fund

  $ 9,471,914   
   

 

 

 
 

Total Short-Term Investments
(cost $9,471,914)

  $ 9,471,914   
   

 

 

 
 

Total Investments
(cost $417,329,098)^

    98.5    $ 432,975,349   
 

Other Assets and Liabilities

    1.5      6,452,367   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     439,427,716   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

13

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $417,329,098 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 20,212,624   

Unrealized Depreciation

     (4,566,373
  

 

 

 

Net Unrealized Appreciation

   $     15,646,251   
  

 

 

 

 

(1)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $7,950,991, which represents 1.8% of total net assets.

 

(3)  The interest rate disclosed for these holdings are the effective yield on the date of the acquisition.

 

(4)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $5,310,954 at April 30, 2015.

 

(5)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

U.S. Treasury Long Bond Future

     81         06/19/2015       $     13,286,399       $     12,927,094       $     359,305   
              

 

 

 

Total futures contracts

               $ 359,305   
              

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Municipal Abbreviations:

AMT

   Alternative Minimum Tax

DA

   Development Authority

FA

   Finance Authority

GO

   General Obligation

ISD

   Independent School District

IDA

   Industrial Development Authority

PA

   Port Authority

Rev

   Revenue

USD

   United School District

VA

   Veterans Administration

 

The accompanying notes are an integral part of these financial statements.

 

 

  14  

 


The Hartford Municipal Opportunities Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total      Level 1(1)      Level 2(1)      Level 3  

Assets

           

Municipal Bonds

   $ 423,503,435       $       $ 423,503,435       $     —   

Short-Term Investments

     9,471,914         9,471,914                   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     432,975,349       $     9,471,914       $     423,503,435       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

Futures Contracts(2)

   $ 359,305       $ 359,305       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 359,305       $ 359,305       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

15

 


The Hartford Municipal Real Return Fund

 

  

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     1.9

Aa / AA

     36.4   

A

     32.4   

Baa / BBB

     12.1   

Ba / BB

     0.3   

B

     0.8   

Not Rated

     12.7   

Short-Term Instruments

     2.7   

Other Assets & Liabilities

     0.7   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Industry

as of April 30, 2015 (Unaudited)

 

Industry    Percentage of
Net Assets
 

Airport

     10.8

Bond Bank

     1.2   

Development

     4.4   

Education

     2.4   

Facilities

     2.0   

General

     13.8   

General Obligation

     7.0   

Higher Education

     7.1   

Medical

     14.7   

Mello-Roos

     0.7   

Multifamily Hsg

     0.2   

Nursing Homes

     4.2   

Power

     2.9   

School District

     6.4   

Single Family Hsg

     1.0   

Tobacco

     1.9   

Transportation

     9.6   

Water

     6.3   

Short-Term Investments

     2.7   

Other Assets & Liabilities

     0.7   
  

 

 

 

Total

     100.0
  

 

 

 

For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for reporting ease.

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

16

 


The Hartford Municipal Real Return Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6%  
      Alabama - 0.9%  
 

County of Jefferson, AL, Sewer Rev

 
$ 1,500,000     

5.00%, 10/01/2018

  $ 1,641,705   
   

 

 

 
      Alaska - 0.6%      
 

Alaska Municipal Bond Bank Auth Rev

 
  375,000     

5.75%, 09/01/2033

    432,813   
 

Anchorage, AK, GO

 
  610,000     

5.25%, 08/01/2028

    687,202   
   

 

 

 
      1,120,015   
   

 

 

 
      Arizona - 1.1%  
 

Arizona State Health Fac Auth Hospital System Rev

 
  1,000,000     

5.00%, 02/01/2020

    1,145,690   
 

Estrella Mountain Ranch, AZ, Community Fac Dist GO

 
  265,000     

6.20%, 07/15/2032

    277,058   
 

Sundance, AZ, Community Fac Dist

 
  249,000     

7.13%, 07/01/2027(1)

    249,097   
 

Vistancia, AZ, Community Fac Dist GO

 
  185,000     

6.75%, 07/15/2022

    185,529   
   

 

 

 
      1,857,374   
   

 

 

 
      California - 16.0%  
 

California State Communities DA Rev

 
  570,000     

0.96%, 04/01/2036(2)

    485,418   
  1,000,000     

5.00%, 10/01/2022

    1,080,810   
  250,000     

5.50%, 07/01/2037(3)

    3   
 

California State Dept Water Resources Supply Rev

 
  500,000     

5.00%, 05/01/2022

    558,590   
 

California State Health Facilities

 
  1,000,000     

6.00%, 07/01/2029

    1,166,540   
 

California State Public Works Board, State University Trustees

 
  170,000     

6.13%, 04/01/2029

    200,423   
 

Corona-Norco California University

 
  1,530,000     

4.00%, 09/01/2019

    1,681,394   
 

El Dorado, CA, Irrigation Dist

 
  300,000     

5.38%, 08/01/2024

    346,626   
 

Foothill-Eastern Transportation Corridor Agency

 
  435,000     

5.00%, 01/15/2053(2)

    468,225   
 

Golden State Tobacco Securitization Agency

 
  425,000     

5.00%, 06/01/2017

    459,684   
 

Hemet, CA Unif School Dist FA Special Tax

 
  1,000,000     

5.00%, 09/01/2031

    1,130,830   
 

Huntington Park, CA, Public FA Rev

 
  400,000     

5.25%, 09/01/2019

    409,004   
 

Irvine, CA, Improvement Bond Act

 
  1,000,000     

4.00%, 09/02/2019

    1,099,890   
 

Los Angeles, CA, Regional Airports Improvement Corp.

 
  1,100,000     

5.00%, 01/01/2020

    1,252,273   
 

Oakland, CA, Airport Rev

 
  1,000,000     

5.00%, 05/01/2026

    1,124,630   
 

San Bernardino City, CA, Unif School Dist GO

 
  725,000     

5.00%, 08/01/2020

    849,976   
 

San Bernardino, CA, Community College Dist GO

 
  500,000     

6.38%, 08/01/2026

    587,005   
 

San Buenaventura, CA, Rev

 
  500,000     

5.25%, 12/01/2017

    541,715   
 

San Diego, CA, Redev Agency, Centre City Sub Pkg

 
  60,000     

5.25%, 09/01/2026

    60,059   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      California - 16.0% - (continued)  
 

San Francisco City & County, CA, Redev FA

 
$ 1,120,000     

6.50%, 08/01/2032

  $ 1,322,810   
 

San Joaquin Hills, CA, Transporation Auth

 
  290,000     

5.00%, 01/15/2029

    327,778   
 

San Jose, CA, Redev Agency

 
  1,000,000     

6.50%, 08/01/2019

    1,149,940   
 

Santa Cruz County, CA, Redev Agency

 
  1,360,000     

5.00%, 09/01/2022

    1,633,510   
  665,000     

6.63%, 09/01/2029

    770,861   
 

Santa Margarita, CA, Water Dist Special Tax

 
  500,000     

5.00%, 09/01/2024

    567,235   
  500,000     

5.00%, 09/01/2025

    557,540   
  1,000,000     

5.00%, 09/01/2028

    1,136,280   
 

Southern California State Public Power Auth

 
  500,000     

5.00%, 07/01/2023

    565,635   
 

Temecula, CA, Redev Agency Tax Allocation Rev

 
  230,000     

5.63%, 12/15/2038

    237,240   
 

Torrance, CA, USD GO

 
  1,500,000     

5.50%, 08/01/2025

    1,773,270   
 

Tuolumne, CA, Wind Proj Auth Rev

 
  1,000,000     

5.88%, 01/01/2029

    1,159,300   
 

Twin Rivers, CA, Unif School Dist Certificates of Participation

 
  700,000     

3.20%, 06/01/2035(2)

    700,042   
 

Ventura County, CA, Certificates of Participation

 
  1,250,000     

5.63%, 08/15/2027

    1,463,975   
 

Washington Township, CA, Health Care Dist Rev

 
  1,000,000     

6.00%, 07/01/2029

    1,135,600   
   

 

 

 
      28,004,111   
   

 

 

 
      Colorado - 0.4%  
 

University of Colorado Enterprise Rev

 
  600,000     

5.75%, 06/01/2028

    708,438   
   

 

 

 
      Connecticut - 0.6%  
 

City of New Haven, CT, GO

 
  1,000,000     

5.00%, 11/01/2017

    1,087,500   
   

 

 

 
      Delaware - 0.8%  
 

Delaware State Transportation Auth

 
  1,180,000     

5.00%, 07/01/2025

    1,346,274   
   

 

 

 
      District of Columbia - 2.6%  
 

District of Columbia University Rev

 
  3,000,000     

5.25%, 04/01/2034(2)

    3,339,300   
 

Metropolitan Washington, DC, Airport Auth System Rev

 
  1,035,000     

5.00%, 10/01/2022

    1,220,410   
   

 

 

 
      4,559,710   
   

 

 

 
      Florida - 8.8%  
 

Arlington of Naples

 
  500,000     

6.50%, 05/15/2020(1)

    500,695   
  500,000     

7.00%, 05/15/2024(1)

    559,830   
 

Broward County, FL, Airport System Rev

 
  145,000     

5.00%, 10/01/2019

    165,889   
  120,000     

5.00%, 10/01/2020

    139,357   
  285,000     

5.00%, 10/01/2021

    333,171   
  1,000,000     

5.00%, 07/01/2027

    1,162,520   
 

Greater Orlando, FL, Aviation Auth

 
  1,500,000     

5.00%, 10/01/2021

    1,761,375   
  1,000,000     

5.00%, 10/01/2024

    1,143,290   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  17  

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      Florida - 8.8% - (continued)  
 

Jacksonville, FL, Econ Development Commission Obligor: Florida Proton Therapy Institute, Inc.

 
$ 2,000,000     

6.25%, 09/01/2027

  $ 2,154,000   
 

Miami Beach, FL, Health Fac Auth

 
  190,000     

5.00%, 11/15/2020

    220,444   
 

Miami-Dade County Expressway Auth

 
  625,000     

5.00%, 07/01/2024

    746,494   
 

Miami-Dade County, FL, Aviation Auth

 
  530,000     

5.00%, 10/01/2027

    610,194   
 

Miami-Dade County, FL, Educational Fac Auth

 
  2,000,000     

5.75%, 04/01/2028

    2,089,880   
 

Miami-Dade County, FL, School Board

 
  1,000,000     

5.00%, 08/01/2027(4)

    1,112,210   
 

Palm Beach County Health

 
  1,000,000     

6.80%, 06/01/2025

    1,133,000   
 

River Bend Community Development Dist, Capital Improvement Rev

 
  780,000     

7.13%, 11/01/2015(3)

    100,620   
 

Village, FL, Community Development Dist #11

 
  250,000     

3.25%, 05/01/2019

    250,662   
 

Volusia County, FL, School Board

 
  1,000,000     

5.00%, 08/01/2025

    1,186,910   
   

 

 

 
      15,370,541   
   

 

 

 
      Georgia - 2.5%      
 

Atlanta, GA, Airport Passenger Fac Charge Rev

 
  2,000,000     

5.00%, 01/01/2023

    2,297,080   
 

Atlanta, GA, Water & Wastewater Rev

 
  1,500,000     

6.00%, 11/01/2022

    1,810,815   
 

Georgia Municipal Electric Auth, Power Rev (Prerefunded with US Gov’t Securities)

 
  10,000     

6.50%, 01/01/2017

    10,374   
 

Georgia State Municipal Elec Auth

 
  245,000     

6.50%, 01/01/2017

    258,634   
   

 

 

 
      4,376,903   
   

 

 

 
      Hawaii - 0.9%      
 

Hawaii State Dept of Transportation

 
  1,000,000     

5.00%, 08/01/2022

    1,166,730   
 

Hawaii State Harbor System Rev

 
  500,000     

5.38%, 01/01/2020

    501,680   
   

 

 

 
      1,668,410   
   

 

 

 
      Idaho - 1.0%      
 

Idaho State Bond Bank Auth Rev

 
  1,470,000     

5.63%, 09/15/2026

    1,685,722   
   

 

 

 
      Illinois - 11.9%      
 

Chicago, IL, Board of Education

 
  825,000     

6.00%, 01/01/2020

    908,795   
 

Chicago, IL, O’Hare International Airport Rev

 
  825,000     

5.00%, 01/01/2023

    943,099   
  1,500,000     

5.00%, 01/01/2026

    1,702,680   
  850,000     

5.25%, 01/01/2027

    852,669   
 

Chicago, IL, Park Dist, GO

 
  2,370,000     

5.00%, 01/01/2025

    2,669,213   
 

City of Chicago, IL, GO

 
  785,000     

4.00%, 01/01/2018

    811,980   
 

Huntley, IL, Special Service #9

 
  1,500,000     

5.10%, 03/01/2028

    1,612,455   
 

Illinois State FA Rev

 
  1,000,000     

5.00%, 10/01/2023

    1,181,800   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      Illinois - 11.9% - (continued)      
$ 1,000,000     

5.00%, 11/15/2031

  $ 1,125,930   
  1,000,000     

5.00%, 11/15/2033

    1,109,840   
 

Illinois State GO

 
  1,000,000     

5.00%, 01/01/2022

    1,104,560   
  2,000,000     

5.25%, 01/01/2021

    2,250,120   
 

Illinois State Toll Highway Auth

 
  60,000     

5.00%, 01/01/2023

    60,461   
  1,000,000     

5.00%, 01/01/2027

    1,149,870   
 

Kane Cook & DuPage Counties GO

 
  1,400,000     

5.00%, 01/01/2031

    1,576,750   
 

Railsplitter, IL, Tobacco Settlement Auth

 
  1,000,000     

5.50%, 06/01/2023

    1,181,610   
 

Springfield, IL, Water Rev

 
  500,000     

5.25%, 03/01/2026

    556,165   
   

 

 

 
      20,797,997   
   

 

 

 
      Indiana - 1.4%      
 

Indiana State Housing and Community DA

 
  1,120,000     

4.55%, 07/01/2027

    1,141,963   
 

University of Southern Indiana

 
  820,000     

5.00%, 10/01/2022

    950,634   
  250,000     

5.00%, 10/01/2023

    289,478   
   

 

 

 
      2,382,075   
   

 

 

 
      Kentucky - 0.9%      
 

Kentucky Public Transportation Inf Auth

 
  230,000     

5.00%, 07/01/2017

    249,465   
 

Louisville & Jefferson County, KY

 
  1,085,000     

5.00%, 12/01/2023

    1,260,575   
   

 

 

 
      1,510,040   
   

 

 

 
      Louisiana - 1.8%      
 

Louisana State, Tobacco Settlement Financing Corp.

 
  1,500,000     

5.00%, 05/15/2026

    1,599,480   
 

Louisiana Local Gov’t Environmental Facs. & Community DA

 
  1,000,000     

6.00%, 11/15/2030

    1,020,310   
 

New Orleans, LA, Aviation Board

 
  500,000     

5.00%, 01/01/2034

    551,065   
   

 

 

 
      3,170,855   
   

 

 

 
      Maryland - 0.6%      
 

Westminster Maryland Rev

 
  1,000,000     

3.88%, 07/01/2019

    1,027,610   
   

 

 

 
      Massachusetts - 0.6%      
 

Massachusetts State Development Fin Agency Rev

 
  925,000     

5.00%, 01/01/2017

    984,329   
   

 

 

 
      Michigan - 1.1%      
 

Detroit, MI, Water Supply System Ref Rev

 
  915,000     

6.50%, 07/01/2015

    923,171   
 

Michigan FA

 
  600,000     

5.00%, 07/01/2018

    659,016   
  350,000     

5.00%, 07/01/2029

    385,332   
   

 

 

 
      1,967,519   
   

 

 

 
      Missouri - 0.3%      
 

Stone Canyon, MO, Community Improvement Dist Rev

 
  1,000,000     

5.75%, 04/01/2027(3)(5)

    480,000   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

18

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      Nebraska - 0.6%      
 

Central Plains, NE, Energy Proj Gas Rev

 
$ 1,000,000     

5.00%, 09/01/2015

  $ 1,013,970   
   

 

 

 
      Nevada - 0.2%      
 

Las Vegas, NV, Special Improvement Dist

 
  400,000     

5.00%, 06/01/2028

    410,252   
   

 

 

 
      New Jersey - 1.1%      
 

New Jersey State Econ DA

 
  760,000     

4.88%, 09/15/2019

    801,899   
 

New Jersey State Econ DA Lease Rev

 
  1,000,000     

5.00%, 09/01/2021

    1,107,200   
   

 

 

 
      1,909,099   
   

 

 

 
      New York - 7.9%      
 

City of New York, NY

 
  1,000,000     

6.25%, 10/15/2028

    1,173,780   
 

Liberty, NY, Corp. Development Goldman Sachs Headquarters

 
  1,000,000     

5.25%, 10/01/2035

    1,170,110   
 

Metropolitan Transportation Auth, NY, Rev

 
  3,000,000     

5.25%, 11/15/2023

    3,523,260   
 

New York City Housing Development Corp.

 
  395,000     

4.50%, 02/15/2048

    410,863   
 

New York Mortgage Agency Rev

 
  530,000     

3.50%, 10/01/2034

    556,415   
 

New York State Dormitory Auth Rev

 
  970,000     

5.00%, 03/15/2028

    1,069,309   
 

New York State Dormitory Auth Rev Obligor: Teacher’s College

 
  2,000,000     

5.38%, 03/01/2029

    2,274,020   
 

New York State Liberty Development Corp. Rev

 
  765,000     

5.15%, 11/15/2034(1)

    829,076   
 

Newburth, NY, GO

 
  610,000     

5.00%, 06/15/2017

    649,985   
  645,000     

5.00%, 06/15/2018

    700,225   
 

Ulster County, NY, Capital Resource Corp. Rev

 
  575,000     

0.00%, 09/15/2044(1)

    430,652   
 

Ulster County, NY, Industrial Development Agency

 
  1,000,000     

6.00%, 09/15/2027

    1,003,830   
   

 

 

 
      13,791,525   
   

 

 

 
      North Carolina - 0.5%      
 

Mecklenburg County, NC, Certificate of Participation School Improvements

 
  795,000     

5.00%, 02/01/2024

    906,371   
   

 

 

 
      Ohio - 2.2%      
 

Cuyahoga, OH, Community College Dist

 
  1,200,000     

5.00%, 08/01/2027

    1,368,372   
 

Dayton, OH, City School Dist GO

 
  2,000,000     

5.00%, 11/01/2027

    2,416,400   
   

 

 

 
      3,784,772   
   

 

 

 
      Oklahoma - 1.4%      
 

Norman, OK, Regional Hospital Auth Rev

 
  2,310,000     

5.25%, 09/01/2019

    2,505,819   
   

 

 

 
      Other U.S. Territories - 2.5%      
 

Guam Government Business Privilege Tax Rev

 
  1,500,000     

5.00%, 01/01/2027

    1,682,205   
 

Guam Government Power Auth Rev

 
  1,000,000     

5.00%, 10/01/2021

    1,184,280   
  1,000,000     

5.00%, 10/01/2023

    1,188,920   

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      Other U.S. Territories - 2.5% - (continued)      
 

Puerto Rico Highway & Transportation Auth

 
$ 380,000     

4.95%, 07/01/2026

  $ 392,118   
   

 

 

 
      4,447,523   
   

 

 

 
      Pennsylvania - 4.6%      
 

Commonwealth FA

 
  1,000,000     

5.00%, 06/01/2026

    1,152,060   
 

Montgomery County, PA, Higher Education and Health

 
  1,000,000     

5.00%, 10/01/2023

    1,134,080   
 

Pennsylvania State Turnpike Commission Rev

 
  665,000     

6.00%, 06/01/2028

    752,368   
 

Philadelphia, PA, GO

 
  1,000,000     

5.25%, 08/01/2019

    1,145,450   
 

Pittsburgh, PA, School Dist GO

 
  1,570,000     

5.00%, 09/01/2021

    1,840,228   
  750,000     

5.00%, 09/01/2023

    867,540   
 

Susquehanna Area Regional Airport Auth

 
  1,000,000     

5.00%, 01/01/2018

    1,072,620   
   

 

 

 
      7,964,346   
   

 

 

 
      Rhode Island - 2.2%      
 

Cranston, RI, GO

 
  1,410,000     

5.00%, 07/01/2018

    1,549,604   
 

Rhode Island Health & Educational Bldg Corp.

 
  1,215,000     

5.00%, 05/15/2018

    1,323,062   
  800,000     

5.00%, 05/15/2027(4)

    918,736   
   

 

 

 
      3,791,402   
   

 

 

 
      South Carolina - 0.7%      
 

South Carolina St Jobs-Econ DA Rev

 
  1,000,000     

5.25%, 08/01/2024

    1,183,950   
   

 

 

 
      South Dakota - 0.3%      
 

South Dakota State Health & Educational FA

 
  415,000     

5.00%, 11/01/2029

    475,349   
   

 

 

 
      Tennessee - 0.6%      
 

Johnson City, TN, Health & Educational Fac Board Hospital Rev

 
  1,000,000     

5.50%, 07/01/2031

    1,050,250   
   

 

 

 
      Texas - 8.9%      
 

Dallas-Fort Worth, TX, International Airport Rev

 
  750,000     

5.00%, 11/01/2023

    860,528   
 

Harris County - Houston, TX

 
  250,000     

5.00%, 11/15/2032

    277,590   
 

Houston, TX, Utility System Rev

 
  2,000,000     

6.00%, 11/15/2036

    2,352,200   
 

Kerrville, TX, Health Fac Development Corp. Hospital Rev

 
  935,000     

5.00%, 08/15/2015

    944,191   
 

Love Field, TX, Airport Modernization Corp. Special Fac Rev

 
  1,000,000     

5.00%, 11/01/2015

    1,020,800   
 

North Texas Tollway Auth Rev

 
  1,055,000     

1.95%, 01/01/2038(2)

    1,065,803   
  1,000,000     

5.00%, 01/01/2030

    1,116,670   
  3,000,000     

6.00%, 01/01/2025

    3,385,095   
 

Tarrant County, TX, Cultural Education Fac

 
  550,000     

5.00%, 10/01/2034

    597,234   
  1,000,000     

6.25%, 11/15/2029

    1,174,800   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  19  

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 96.6% - (continued)  
      Texas - 8.9% - (continued)      
 

Texas State Municipal Gas Acquisition & Supply Corp.

 
$ 1,000,000     

5.25%, 12/15/2017

  $ 1,097,550   
 

Texas State Transportation Commission Turnpike System

 
  550,000     

5.00%, 08/15/2032

    607,052   
 

Travis County, TX, Health Fac, Querencia Barton Creek Project

 
  1,000,000     

5.65%, 11/15/2035

    1,006,900   
   

 

 

 
      15,506,413   
   

 

 

 
      Vermont - 0.3%      
 

Vermont State Econ DA Waste

 
  600,000     

4.75%, 04/01/2036(1)(2)

    601,218   
   

 

 

 
      Virginia - 0.3%      
  500,000     

5.00%, 11/01/2024

    564,452   
   

 

 

 
      Washington - 2.7%      
 

FYI Properties, WA, Lease Rev

 
  2,285,000     

5.50%, 06/01/2034

    2,630,058   
 

Washington State Health Care Fac Auth

 
  1,820,000     

5.00%, 03/01/2029

    2,085,902   
   

 

 

 
      4,715,960   
   

 

 

 
      West Virginia - 0.9%      
 

West Virginia State Econ DA Solid Waste Disposal Fac

 
  1,500,000     

2.25%, 01/01/2041(2)

    1,519,395   
   

 

 

 
      Wisconsin - 3.9%      
 

Milwaukee County, WI, Airport Rev

 
  1,705,000     

5.00%, 12/01/2024

    1,974,987   
 

Wisconsin State

 
  125,000     

5.75%, 05/01/2033

    144,549   
  865,000     

6.00%, 05/01/2036

    1,008,590   
 

Wisconsin State Health & Educational Fac Auth Rev

 
  2,265,000     

5.00%, 02/15/2026

    2,560,129   
  1,000,000     

5.00%, 11/15/2027

    1,164,670   
   

 

 

 
      6,852,925   
   

 

 

 
 

Total Municipal Bonds
(cost $160,673,614)

  $ 168,742,119   
   

 

 

 
 

Total Long-Term Investments
(cost $160,673,614)

  $ 168,742,119   
   

 

 

 
SHORT-TERM INVESTMENTS - 2.7%      
      Other Investment Pools & Funds - 2.7%      
  4,717,924     

JP Morgan Tax Free Money Market Fund

  $ 4,717,924   
   

 

 

 
 

Total Short-Term Investments
(cost $4,717,924)

  $ 4,717,924   
   

 

 

 
 

Total Investments
(cost $165,391,538)^

    99.3    $ 173,460,043   
 

Other Assets and Liabilities

    0.7      1,138,950   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     174,598,993   
   

 

 

    

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

20

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $165,391,538 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 9,832,788   

Unrealized Depreciation

         (1,764,283
  

 

 

 

Net Unrealized Appreciation

   $ 8,068,505   
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $3,170,568, which represents 1.8% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(4)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $2,047,224 at April 30, 2015.

 

(5)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
04/2007    $ 1,000,000       Stone Canyon, MO, Community Improvement Dist Rev    $     990,337   

 

   At April 30, 2015, the aggregate value of these securities were $480,000, which represents 0.3% of total net assets.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   0.05% Fixed    CPURNSA      USD         8,925,000         12/22/15       $     —       $     —       $ 13,924      $ 13,924   

BNP

   1.07% Fixed    CPURNSA      USD         6,275,000         02/03/17                         23,988        23,988   

DEUT

   1.46% Fixed    CPURNSA      USD         6,785,000         03/02/17                         1,457        1,457   

DEUT

   1.48% Fixed    CPURNSA      USD         3,155,000         03/02/17                         (431     (431

BCLY

   1.53% Fixed    CPURNSA      USD         3,335,000         03/03/17                         (3,205     (3,205

BOA

   2.45% Fixed    CPURNSA      USD         7,800,000         03/22/17                         (450,258     (450,258

BNP

   1.53% Fixed    CPURNSA      USD         5,425,000         01/15/18                         (80,981     (80,981

UBS

   2.65% Fixed    CPURNSA      USD         5,250,000         03/04/18                         (396,969     (396,969

UBS

   2.79% Fixed    CPURNSA      USD         7,800,000         04/13/18                         (690,282     (690,282

CBK

   2.34% Fixed    CPURNSA      USD         525,000         04/15/18                         (28,209     (28,209

BCLY

   2.12% Fixed    CPURNSA      USD         7,550,000         01/15/19                         (290,404     (290,404

DEUT

   1.97% Fixed    CPURNSA      USD         7,450,000         11/12/19                         (173,848     (173,848

BCLY

   1.65% Fixed    CPURNSA      USD         3,700,000         01/15/20                         (7,510     (7,510

BCLY

   1.86% Fixed    CPURNSA      USD         3,600,000         01/15/20                         (74,174     (74,174

JPM

   2.75% Fixed    CPURNSA      USD         7,000,000         03/03/21                         (761,468     (761,468

BCLY

   2.79% Fixed    CPURNSA      USD         7,000,000         03/03/21                         (761,468     (761,468

UBS

   2.75% Fixed    CPURNSA      USD         7,000,000         03/03/21                         (761,468     (761,468

JPM

   2.33% Fixed    CPURNSA      USD         7,000,000         09/30/21                         (485,823     (485,823

DEUT

   2.48% Fixed    CPURNSA      USD         2,300,000         07/15/23                         (162,919     (162,919

MSC

   2.60% Fixed    CPURNSA      USD         1,525,000         08/09/23                         (127,269     (127,269

DEUT

   2.02% Fixed    CPURNSA      USD         1,850,000         12/11/24                         (21,529     (21,529

BCLY

   1.91% Fixed    CPURNSA      USD         1,850,000         01/15/25                         5,902        5,902   

UBS

   2.95% Fixed    CPURNSA      USD         5,750,000         03/07/26                         (946,799     (946,799

BCLY

   2.98% Fixed    CPURNSA      USD         5,750,000         03/08/26                         (987,536     (987,536

JPM

   2.97% Fixed    CPURNSA      USD         6,800,000         04/14/26                         (1,156,826     (1,156,826

CBK

   2.45% Fixed    CPURNSA      USD         950,000         11/07/34                         (64,758     (64,758
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

  

   $       $       $     (8,388,863   $     (8,388,863
  

 

 

    

 

 

    

 

 

   

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

21

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

DEUT

   Deutsche Bank Securities, Inc.

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

UBS

   UBS AG
Currency Abbreviations:

USD

   United States Dollar
Index Abbreviations:

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted
Other Abbreviations:

OTC

   Over-the-Counter
Municipal Abbreviations:

DA

   Development Authority

FA

   Finance Authority

GO

   General Obligation

PA

   Port Authority

Rev

   Revenue

USD

   United School District
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  22  

 


The Hartford Municipal Real Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1(1)      Level 2(1)     Level 3  

Assets

         

Municipal Bonds

   $     168,742,119      $       $ 168,742,119      $     —   

Short-Term Investments

     4,717,924        4,717,924                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 173,460,043      $     4,717,924       $     168,742,119      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Swaps - Interest Rate(2)

   $ 45,271      $       $ 45,271      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 45,271      $       $ 45,271      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         
  

 

 

   

 

 

    

 

 

   

 

 

 

Swaps - Interest Rate(2)

   $ (8,434,134   $       $ (8,434,134   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (8,434,134   $       $ (8,434,134   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

23

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Municipal
Opportunities
Fund
    The Hartford
Municipal Real
Return Fund
 

Assets:

    

Investments in securities, at market value

   $ 432,975,349      $ 173,460,043   

Cash

     74,426        691,411   

Cash collateral

     275,400        8,726,000   

Unrealized appreciation on OTC swap contracts

            45,271   

Receivables:

    

Investment securities sold

     10,226,561          

Fund shares sold

     1,129,218        158,308   

Dividends and interest

     5,377,777        2,188,986   

Variation margin on financial derivative instruments

     25,314          

Other assets

     54,094        109,100   
  

 

 

   

 

 

 

Total assets

     450,138,139        185,379,119   
  

 

 

   

 

 

 

Liabilities:

    

Unrealized depreciation on OTC swap contracts

            8,434,134   

Payables:

    

Investment securities purchased

     8,764,434        2,047,224   

Fund shares redeemed

     1,476,851        118,076   

Investment management fees

     125,961        50,343   

Distribution fees

     125,483        48,319   

Distributions payable

     188,209        55,701   

Accrued expenses

     29,485        26,329   
  

 

 

   

 

 

 

Total liabilities

     10,710,423        10,780,126   
  

 

 

   

 

 

 

Net assets

   $ 439,427,716      $ 174,598,993   
  

 

 

   

 

 

 

Summary of Net Assets:

    

Capital stock and paid-in-capital

   $ 451,220,306      $ 218,340,456   

Undistributed (distributions in excess of) net investment income

     166,541        30,835   

Accumulated net realized gain (loss)

     (27,964,687     (43,451,940

Unrealized appreciation (depreciation) of investments

     16,005,556        (320,358
  

 

 

   

 

 

 

Net assets

   $     439,427,716      $ 174,598,993   
  

 

 

   

 

 

 

Shares authorized

     650,000,000            19,300,000,000   
  

 

 

   

 

 

 

Par value

   $ 0.001      $ 0.0001   
  

 

 

   

 

 

 

Class A:     Net asset value per share

   $ 8.53      $ 9.33   
  

 

 

   

 

 

 

                 Maximum offering price per share

   $ 8.93      $ 9.77   
  

 

 

   

 

 

 

                 Shares outstanding

     24,572,885        11,885,823   
  

 

 

   

 

 

 

                 Net Assets

   $ 209,536,149      $ 110,951,671   
  

 

 

   

 

 

 

Class B:     Net asset value per share

   $ 8.52      $ 9.25   
  

 

 

   

 

 

 

                 Shares outstanding

     342,802        123,879   
  

 

 

   

 

 

 

                 Net Assets

   $ 2,920,825      $ 1,145,317   
  

 

 

   

 

 

 

Class C:     Net asset value per share

   $ 8.53      $ 9.28   
  

 

 

   

 

 

 

                 Shares outstanding

     11,358,022        3,194,234   
  

 

 

   

 

 

 

                 Net Assets

   $ 96,915,264      $ 29,636,044   
  

 

 

   

 

 

 

Class I:      Net asset value per share

   $ 8.54      $ 9.36   
  

 

 

   

 

 

 

                 Shares outstanding

     15,221,071        1,438,496   
  

 

 

   

 

 

 

                 Net Assets

   $ 130,055,478      $ 13,460,987   
  

 

 

   

 

 

 

Class Y:     Net asset value per share

   $      $ 9.31   
  

 

 

   

 

 

 

                 Shares outstanding

            2,084,909   
  

 

 

   

 

 

 

                 Net Assets

   $      $ 19,404,974   
  

 

 

   

 

 

 

Cost of investments

   $ 417,329,098      $ 165,391,538   

 

The accompanying notes are an integral part of these financial statements.

 

 

  24  

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Municipal
Opportunities
Fund
    The Hartford
Municipal Real
Return Fund
 

Investment Income:

    

Dividends

   $ 229      $   

Interest

     7,357,390        3,197,884   
  

 

 

   

 

 

 

Total investment income, net

     7,357,619        3,197,884   
  

 

 

   

 

 

 

Expenses:

    

Investment management fees

     1,138,919        446,853   

Transfer agent fees

    

Class A

     35,231        29,930   

Class B

     1,590        865   

Class C

     22,379        7,458   

Class I

     28,450        5,326   

Class Y

            160   

Distribution fees

    

Class A

     251,611        140,605   

Class B

     15,515        6,357   

Class C

     471,856        152,210   

Custodian fees

     969        4,662   

Registration and filing fees

     42,447        70,406   

Accounting services fees

     37,276        14,300   

Board of Directors’ fees

     4,562        2,876   

Audit fees

     6,248        5,950   

Other expenses

     23,153        13,295   
  

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     2,080,206        901,253   

Management fee waivers

     (156,077     (113,834
  

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (156,077     (113,834
  

 

 

   

 

 

 

Total expenses, net

     1,924,129        787,419   
  

 

 

   

 

 

 

Net Investment Income (Loss)

     5,433,490        2,410,465   
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Other Financial Instruments:

    

Net realized gain (loss) on investments

     967,545        1,804,582   

Net realized gain (loss) on swap contracts

            (1,302,536
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments and Other Financial Instruments

     967,545        502,046   
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

    

Net unrealized appreciation (depreciation) of investments

     (1,875,364     (1,874,474

Net unrealized appreciation (depreciation) of future contracts

     359,305          

Net unrealized appreciation (depreciation) of swap contracts

            (1,891,759

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     (568       
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

         (1,516,627         (3,766,233
  

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     (549,082     (3,264,187
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 4,884,408      $ (853,722
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

25

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Statements of Changes in Net Assets

 

 

 

    The Hartford Municipal
Opportunities Fund
    The Hartford Municipal Real
Return Fund
 
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

       

Net investment income (loss)

  $ 5,433,490      $ 9,511,418      $ 2,410,465      $ 5,063,745   

Net realized gain (loss) on investments and other financial instruments

    967,545        2,243,064        502,046        (584,902

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

    (1,516,627     9,378,453        (3,766,233     4,718,111   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

    4,884,408        21,132,935        (853,722     9,196,954   
 

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

       

From net investment income

       

Class A

    (2,730,997     (4,986,696     (1,586,029     (3,209,040

Class B

    (30,493     (82,801     (13,283     (40,257

Class C

    (926,528     (1,949,160     (317,356     (727,521

Class I

    (1,711,629     (2,442,376     (227,249     (383,757

Class Y

                  (303,960     (676,771
 

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (5,399,647     (9,461,033     (2,447,877     (5,037,346
 

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

       

Sold

    90,009,309        165,908,672        20,111,083        40,073,031   

Issued on reinvestment of distributions

    4,423,685        7,881,709        2,109,611        4,461,510   

Redeemed

    (43,755,004         (100,015,364     (31,419,080     (61,122,925
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

    50,677,990        73,775,017        (9,198,386     (16,588,384
 

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

    50,162,751        85,446,919        (12,499,985     (12,428,776
 

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

       

Beginning of period

    389,264,965        303,818,046        187,098,978        199,527,754   
 

 

 

   

 

 

   

 

 

   

 

 

 

End of period

  $     439,427,716      $ 389,264,965      $     174,598,993      $     187,098,978   
 

 

 

   

 

 

   

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

  $ 166,541      $ 132,698      $ 30,835      $ 68,247   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

26

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements

April 30, 2015 (Unaudited)

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies” and each a “Company”) each is an open-end management investment company comprised of forty-two and four series, respectively as of April 30, 2015. The financial statements for certain series of the Companies are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Municipal Opportunities Fund (the “Municipal Opportunities Fund”)

The Hartford Mutual Funds II, Inc.:

The Hartford Municipal Real Return Fund (the “Municipal Real Return Fund”)

Each Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

The Municipal Opportunities Fund offers Class A, Class B, Class C and Class I. The Municipal Real Return Fund offers Class A, Class B, Class C, Class I and Class Y. Class A shares are sold with a front-end sales charge of up to 4.50%. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

 

2. Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a) Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b)

Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, each Fund will use the fair value of the investment as determined in good faith under

 

 

27

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  policies and procedures established by and under the supervision of each Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Fixed income investments (other than short-term obligations), non-exchange traded derivatives and centrally cleared swaps held by a Fund are normally valued on the basis of quotes obtained from independent pricing services or brokers and dealers in accordance with procedures established by each Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values through accepted market modeling, trading and pricing conventions. Inputs to the models may include, but are not limited to, prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models and the investment’s terms and conditions. Generally, the Funds may use fair valuation in regard to fixed income investments when the Funds hold defaulted or distressed investments or investments in a company in which a reorganization is pending. Short-term investments maturing in 60 days or less are generally valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days, which approximates fair value.

Investments in open-end mutual funds are valued at the respective NAV of each open-end mutual fund on the Valuation Date.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by each Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

 

    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors of each Company generally reviews and approves the “Procedures for Valuation of Portfolio Securities” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing

 

 

28

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include each Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of each Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, each Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of each Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each Company then must consider for ratification all of the fair value determinations made during the previous quarter.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follow the Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

 

  d) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2 (a)). The NAV is determined separately for each class of shares of the Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by the Funds has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of the Funds’ shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by each Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. Normally, dividends and/or distributions from net investment income are declared daily and paid monthly. Dividends from realized gains, if any, are paid at least once a year.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts).

 

3. Securities and Other Investments:

 

  a)

Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of its net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were

 

 

29

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Each Fund may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by each Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  b) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to or within the Schedules of Investments for purchased options, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Swap Contracts – Certain Funds may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared in a central clearing house (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are valued based on custom valuations furnished by an independent pricing service. Swaps for which prices are not available from an independent pricing service are valued in accordance with procedures established by the Company’s Board of Directors. Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statement of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swap. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Fund are included as part of realized gains or losses on the Statement of Operations.

Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).

 

 

30

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statement of Assets and Liabilities, as applicable) as well as the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces a Fund’s exposure to counterparty risk. A Fund is still exposed to the counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.

 

  b) Futures Contracts – The Funds may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

  c) Additional Derivative Instrument Information:

Municipal Opportunities Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on futures contracts(1)

   $ 359,305       $       $       $       $       $       $ 359,305   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     359,305       $     —       $     —       $     —       $     —       $     —       $     359,305   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)  Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities.

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                    

Net change in unrealized appreciation (depreciation) of futures

   $ 359,305       $       $       $       $       $       $ 359,305   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     359,305       $     —       $     —       $     —       $     —       $     —       $     359,305   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

31

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Municipal Real Return Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Assets:

  

     

Unrealized appreciation on OTC swap contracts

  $ 45,271      $      $      $      $      $      $ 45,271   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 45,271      $     —      $     —      $     —      $     —      $     —      $ 45,271   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

             

Unrealized depreciation on OTC swap contracts

  $ 8,434,134      $      $      $      $      $      $ 8,434,134   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $     8,434,134      $      $      $      $      $      $     8,434,134   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

                   

Net realized gain (loss) on swap contracts

   $     (1,302,536   $       $       $       $       $       $     (1,302,536
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1,302,536   $       $       $       $       $       $ (1,302,536
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

                   

Net change in unrealized appreciation (depreciation) of swap contracts

   $ (1,891,759   $       $       $       $       $       $ (1,891,759
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (1,891,759   $     —       $     —       $     —       $     —       $     —       $ (1,891,759
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  d) Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, if any, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Municipal Real Return Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Swap contracts

     45,271         (8,434,134
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  45,271      (8,434,134
  

 

 

    

 

 

 

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  45,271      (8,434,134
  

 

 

    

 

 

 

 

 

32

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Municipal Real Return Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Barclays

  5,902      (5,902               

BNP Paribas Securities Services

  23,988      (23,988               

Deutsche Bank Securities, Inc.

  1,457      (1,457               

JP Morgan Chase & Co.

  13,924      (13,924                     —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

  45,271      (45,271           —              —        
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Bank of America Securities LLC

  (450,258             260,000      (190,258

Barclays

  (2,124,297   5,902           2,118,395        

BNP Paribas Securities Services

  (80,981   23,988                (56,993

Citibank NA

  (92,967                  (92,967

Deutsche Bank Securities, Inc.

  (358,727   1,457           357,270        

JP Morgan Chase & Co.

  (2,404,117   13,924           2,390,193        

Morgan Stanley

  (127,269             127,269        

UBS AG

  (2,795,518             2,795,518        
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (8,434,134   45,271              —      8,048,645      (340,218
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

5. Principal Risks:

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Each Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment and extension risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. 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.

 

6. Federal Income Taxes:

 

  a)

Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders.

 

 

33

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Tax Exempt Income
for the Year Ended
October 31, 2014
  Ordinary Income
for the Year Ended
October 31, 2014
  Tax Exempt Income
for the Year Ended
October 31, 2013
  Ordinary Income
for the Year Ended
October 31, 2013
 

Municipal Opportunities Fund

$     9,362,323    $     72,719    $     11,647,489    $     67,786   

Municipal Real Return Fund

$ 5,041,336    $ 2,592    $ 5,666,286    $   

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

  Undistributed
Ordinary
Income
  Accumulated
Capital and
Other
Losses(1)
  Unrealized
Appreciation
(Depreciation)
on
Investments(2)
  Total
Accumulated
Earnings
(Deficit)
 

Municipal Opportunities Fund

$ 278,600    $ (28,932,232 $     17,522,183    $ (11,131,449

Municipal Real Return Fund

$     112,582    $     (43,953,986 $ 3,445,875    $     (40,395,529

 

  (1)  The Funds have capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments and short-term capital gain adjustments.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in its capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the period ended April 30, 2015, the Funds had no reclassifications.

 

  e) Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

 

 

34

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

  Year of Expiration   Unlimited
Long-Term
Capital Loss
Carryforward
 

Fund

2016   2017   2018   2019  

Municipal Opportunities Fund

$    $ 12,265,503    $ 6,120,720    $     10,546,009    $   

Municipal Real Return Fund

$     18,856,445    $     16,621,393    $     6,087,643    $ 1,653,837    $     734,668   

As a result of mergers in The Hartford Municipal Real Return Fund, certain provisions in the IRC may limit the future utilization of capital losses. During the year ended October 31, 2014, the Municipal Real Return Fund utilized $149,766 of post RIC modernization capital loss carryforwards and Municipal Opportunities Fund utilized $2,243,064 of prior year capital loss carryforwards.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with each Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Municipal Opportunities Fund

0.5500% on first $500 million and;
0.5000% on next $500 million and;
0.4750% on next $1.5 billion and;
0.4650% on next $2.5 billion and;
0.4550% on next $5 billion and;
0.4450% over $10 billion

Municipal Real Return Fund

0.50% on first $500 million and;
0.45% on next $500 million and;
0.44% on next $1.5 billion and;
0.43% on next $2.5 billion and;
0.42% on next $5 billion and;
0.41% over $10 billion

 

 

35

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and each Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fee Rates

Municipal Opportunities Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

Municipal Real Return Fund

0.016% on first $5 billion and;
0.013% on next $5 billion and;
0.010% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  c) Operating Expenses – Allocable expenses incurred by each Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class Y  

Municipal Opportunities Fund

  0.69   1.44   1.44   0.44   N/A   

Municipal Real Return Fund

  0.69   1.44   1.44   0.44   0.44

From November 1, 2014 through February 28, 2015, the investment manager contractually limited the total operating expenses of the following funds, exclusive of taxes, interest expense, brokerage commissions, acquired fund fees and expenses and extraordinary expenses as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class Y  

Municipal Opportunities Fund

  0.90   1.65   1.65   0.65   N/A   

Municipal Real Return Fund

  0.85   1.60   1.60   0.60   0.60

 

  d) Distribution and Service Plan for Class A, B and C Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of the Funds. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end Load
Sales Charges
  Contingent Deferred
Sales Charges
 

Municipal Opportunities Fund

$     351,744    $     2,837   

Municipal Real Return Fund

  130,389      1,930   

 

  e)

Other Related Party Transactions – Certain officers of the Funds are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period ended April 30, 2015, a portion of the Funds’ Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to the Funds. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Any transfer agency fee reimbursement is determined before considering the contractual operating expense limitation. For providing such services, HASCO is compensated on a per account basis that varies by account type, except with respect to Class Y, for which it is compensated based

 

 

36

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  on average daily net assets. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statement of Operations. These fees are accrued daily and paid monthly.

 

8. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Government
Obligations
 

Municipal Opportunities Fund

$ 104,849,458    $ 51,517,263   

Municipal Real Return Fund

$ 26,607,209    $ 39,162,161   
  Cost of Purchases
Including U.S.
Government
Obligations
  Sales Proceeds
Including U.S.
Government
Obligations
 

Municipal Opportunities Fund

$    $   

Municipal Real Return Fund

$    $   
  Total Cost of
Purchases
  Total Sales
Proceeds
 

Municipal Opportunities Fund

$     104,849,458    $     51,517,263   

Municipal Real Return Fund

$ 26,607,209    $ 39,162,161   

 

9. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Municipal Opportunities Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  4,269,744    $ 36,598,941      9,411,693    $ 79,052,562   

Shares Issued for Reinvested Dividends

  288,728      2,475,212      546,686      4,576,431   

Shares Redeemed

  (2,554,097       (21,867,459   (6,068,228       (50,732,364

Shares converted (from) Class B into Class A

            816      6,782   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,004,375      17,206,694      3,890,967      32,903,411   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  9,750    $ 83,922      6,605    $ 55,424   

Shares Issued for Reinvested Dividends

  2,755      23,598      7,655      63,892   

Shares Redeemed

  (46,916   (402,236   (141,778   (1,179,527

Shares converted (from) Class B into Class A

            (816   (6,782
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (34,411   (294,716   (128,334   (1,066,993
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

37

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class C

Shares Sold

  1,520,136    $ 13,050,178      2,441,067    $ 20,487,206   

Shares Issued for Reinvested Dividends

  89,255      765,500      191,265      1,600,816   

Shares Redeemed

  (931,688   (8,002,215   (2,489,065   (20,731,107
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  677,703      5,813,463      143,267      1,356,915   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  4,685,227    $ 40,276,268      7,905,472    $ 66,313,480   

Shares Issued for Reinvested Dividends

  134,966      1,159,375      195,316      1,640,570   

Shares Redeemed

  (1,571,160       (13,483,094   (3,278,613       (27,372,366
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,249,033      27,952,549      4,822,175      40,581,684   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  5,896,700    $ 50,677,990      8,728,075    $ 73,775,017   
  

 

 

   

 

 

   

 

 

   

 

 

 

Municipal Real Return Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  1,407,770    $ 13,214,531      2,426,699    $ 22,922,294   

Shares Issued for Reinvested Dividends

  150,630      1,412,665      317,370      2,988,751   

Shares Redeemed

  (1,874,789       (17,577,813   (3,921,484   (36,602,552

Shares converted (from) Class B into Class A

  992      9,280      6,274      58,966   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (315,397   (2,941,337   (1,171,141   (10,632,541
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  4,512    $ 41,783      399    $ 3,672   

Shares Issued for Reinvested Dividends

  1,365      12,687      4,127      38,486   

Shares Redeemed

  (39,964   (371,850   (77,983   (727,552

Shares converted (from) Class B into Class A

  (1,001   (9,280   (6,274   (58,966
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (35,088   (326,660   (79,731   (744,360
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  293,464    $ 2,738,840      335,006    $ 3,143,215   

Shares Issued for Reinvested Dividends

  25,235      235,262      56,403      527,991   

Shares Redeemed

  (514,285   (4,793,170   (1,143,070   (10,642,005
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (195,586   (1,819,068   (751,661   (6,970,799
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  431,337    $ 4,048,024      1,465,588    $ 13,967,717   

Shares Issued for Reinvested Dividends

  21,162      199,046      35,945      340,242   

Shares Redeemed

  (765,033   (7,187,182   (1,125,206   (10,595,529
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (312,534   (2,940,112   376,327      3,712,430   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  7,287    $ 67,905      3,898    $ 36,133   

Shares Issued for Reinvested Dividends

  26,726      249,951      60,266      566,040   

Shares Redeemed

  (158,913   (1,489,065   (272,927   (2,555,287
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (124,900   (1,171,209   (208,763   (1,953,114
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (983,505 $ (9,198,386   (1,834,969 $     (16,588,384
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

38

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

10. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, neither of the Funds had borrowings under this facility.

 

11. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

12. Indemnifications:

Under the Company’s organizational documents, each Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and the federal securities laws. In addition, each Company, on behalf of each Fund, may enter into contracts that contain a variety of indemnifications. Each Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, each Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

13. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

 

39

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain  (Loss)
on

Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Municipal Opportunities Fund   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

A

  $ 8.53      $ 0.12      $ (0.01   $ 0.11      $ (0.11   $   —      $   —      $ (0.11   $ 8.53        1.24 %(4)    $ 209,536        0.89 %(5)      0.82 %(5)      2.73 %(5)      13

B

    8.53        0.08        (0.01     0.07        (0.08                   (0.08     8.52        0.74 (4)      2,921        1.71 (5)      1.58 (5)      1.97 (5)      13   

C

    8.54        0.08        (0.01     0.07        (0.08                   (0.08     8.53        0.86 (4)      96,915        1.65 (5)      1.58 (5)      1.97 (5)      13   

I

    8.55        0.13        (0.02     0.11        (0.12                   (0.12     8.54        1.36 (4)      130,055        0.66 (5)      0.57 (5)      2.99 (5)      13   

For the Year Ended October 31, 2014

  

A

  $ 8.24      $ 0.25      $ 0.30      $ 0.55      $ (0.26   $      $      $ (0.26   $ 8.53        6.70   $ 192,531        0.90     0.85     3.03     29

B

    8.23        0.19        0.30        0.49        (0.19                   (0.19     8.53        6.04        3,216        1.72        1.60        2.30        29   

C

    8.24        0.19        0.30        0.49        (0.19                   (0.19     8.54        6.03        91,177        1.66        1.60        2.29        29   

I

    8.25        0.27        0.31        0.58        (0.28                   (0.28     8.55        7.08        102,341        0.65        0.60        3.26        29   

For the Year Ended October 31, 2013

  

A

  $ 8.66      $ 0.29      $ (0.42   $ (0.13   $ (0.29   $      $      $ (0.29   $ 8.24        (1.58 )%    $ 153,818        0.91     0.91 %(6)      3.35     37

B

    8.66        0.22        (0.43     (0.21     (0.22                   (0.22     8.23        (2.44     4,161        1.72        1.66 (6)      2.60        37   

C

    8.67        0.22        (0.43     (0.21     (0.22                   (0.22     8.24        (2.44     86,844        1.66        1.66 (6)      2.60        37   

I

    8.68        0.31        (0.43     (0.12     (0.31                   (0.31     8.25        (1.45     58,996        0.66        0.66 (6)      3.60        37   

For the Year Ended October 31, 2012(7)

  

A

  $ 8.01      $ 0.34      $ 0.65      $ 0.99      $ (0.34   $      $      $ (0.34   $ 8.66        12.58   $ 202,931        0.91     0.91 %(6)      4.05     51

B

    8.01        0.28        0.65        0.93        (0.28                   (0.28     8.66        11.75        5,597        1.72        1.66 (6)      3.32        51   

C

    8.02        0.28        0.65        0.93        (0.28                   (0.28     8.67        11.73        117,699        1.67        1.66 (6)      3.31        51   

I

    8.03        0.36        0.65        1.01        (0.36                   (0.36     8.68        12.83        78,183        0.67        0.66 (6)      4.31        51   

For the Year Ended October 31, 2011(7)

  

A

  $ 8.47      $ 0.44      $   (0.46   $   (0.02   $   (0.44   $      $      $   (0.44   $   8.01        0.03   $   177,569        0.94     0.93 %(6)      5.58     41

B

    8.47        0.38        (0.46     (0.08     (0.38                   (0.38     8.01        (0.72     5,739        1.75        1.68 (6)      4.84        41   

C

    8.48        0.38        (0.46     (0.08     (0.38                   (0.38     8.02        (0.72     103,439        1.70        1.68 (6)      4.83        41   

I

    8.49        0.46        (0.46            (0.46                   (0.46     8.03        0.28        69,575        0.70        0.68 (6)      5.82        41   

For the Year Ended October 31, 2010(7)

  

A

  $   8.02      $   0.45      $ 0.45      $ 0.90      $ (0.45   $      $      $ (0.45   $ 8.47        11.56   $ 238,332        0.92     0.92 %(8)      5.49     15

B

    8.01        0.38        0.47        0.85        (0.39                   (0.39     8.47        10.82        7,475        1.72        1.72 (8)      4.68        15   

C

    8.02        0.39        0.46        0.85        (0.39                   (0.39     8.48        10.85        128,723        1.68        1.68 (8)      4.72        15   

I

    8.03        0.47        0.46        0.93        (0.47                   (0.47     8.49        11.93        81,795        0.68        0.68 (8)      5.72        15   

 

The accompanying notes are an integral part of these financial statements.

 

 

  40  

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain  (Loss)
on

Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Municipal Real Return Fund   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

A

  $   9.50      $   0.13      $   (0.17   $   (0.04   $   (0.13   $      $      $   (0.13   $   9.33        (0.41 )%(4)    $   110,952        0.93 %(5)      0.80 %(5)      2.78 %(5)      15

B

    9.41        0.09        (0.15     (0.06     (0.10                   (0.10     9.25        (0.67 )(4)      1,145        1.76 (5)      1.55 (5)      2.03 (5)      15   

C

    9.45        0.09        (0.16     (0.07     (0.10                   (0.10     9.28        (0.78 )(4)      29,636        1.67 (5)      1.55 (5)      2.03 (5)      15   

I

    9.53        0.14        (0.17     (0.03     (0.14                   (0.14     9.36        (0.28 )(4)      13,461        0.70 (5)      0.55 (5)      3.03 (5)      15   

Y

    9.48        0.14        (0.17     (0.03     (0.14                   (0.14     9.31        (0.28 )(4)      19,405        0.63 (5)      0.55 (5)      3.03 (5)      15   

For the Year Ended October 31, 2014

  

A

  $ 9.27      $ 0.27      $ 0.23      $ 0.50      $ (0.27   $      $      $ (0.27   $ 9.50        5.46   $ 115,957        0.90     0.85     2.89     31

B

    9.19        0.20        0.22        0.42        (0.20                   (0.20     9.41        4.62        1,497        1.73        1.60        2.15        31   

C

    9.22        0.20        0.23        0.43        (0.20                   (0.20     9.45        4.71        32,022        1.64        1.60        2.14        31   

I

    9.29        0.29        0.25        0.54        (0.30                   (0.30     9.53        5.82        16,682        0.66        0.60        3.12        31   

Y

    9.25        0.29        0.23        0.52        (0.29                   (0.29     9.48        5.74        20,941        0.60        0.60        3.14        31   

For the Year Ended October 31, 2013

  

A

  $ 9.73      $ 0.24      $ (0.46   $ (0.22   $ (0.24   $      $      $ (0.24   $ 9.27        (2.30 )%    $ 124,008        0.88     0.85     2.51     20

B

    9.65        0.17        (0.46     (0.29     (0.17                   (0.17     9.19        (3.05     2,194        1.71        1.60        1.76        20   

C

    9.68        0.17        (0.46     (0.29     (0.17                   (0.17     9.22        (3.05     38,185        1.62        1.60        1.76        20   

I

    9.75        0.26        (0.46     (0.20     (0.26                   (0.26     9.29        (2.05     12,776        0.64        0.60        2.75        20   

Y

    9.70        0.26        (0.44     (0.18     (0.27                   (0.27     9.25        (1.94     22,365        0.58        0.58        2.78        20   

For the Year Ended October 31, 2012

  

A

  $ 9.20      $ 0.27      $ 0.54      $ 0.81      $ (0.28   $      $      $ (0.28   $ 9.73        8.87   $ 157,918        0.88     0.85     2.89     61

B

    9.13        0.21        0.52        0.73        (0.21                   (0.21     9.65        8.03        3,497        1.68        1.60        2.18        61   

C

    9.15        0.20        0.54        0.74        (0.21                   (0.21     9.68        8.11        49,791        1.62        1.60        2.13        61   

I

    9.22        0.29        0.54        0.83        (0.30                   (0.30     9.75        9.12        20,061        0.64        0.60        3.07        61   

Y

    9.18        0.30        0.52        0.82        (0.30                   (0.30     9.70        9.08        27,549        0.58        0.58        3.18        61   

For the Year Ended October 31, 2011(7)

  

A(9)

  $ 9.50      $ 0.41      $ (0.30   $ 0.11      $ (0.41   $   —      $   —      $ (0.41   $ 9.20        1.28   $ 137,766        0.90     0.85     4.52     29

B

    9.43        0.34        (0.30     0.04        (0.34                   (0.34     9.13        0.54        4,565        1.70        1.60        3.75        29   

C

    9.46        0.34        (0.31     0.03        (0.34                   (0.34     9.15        0.43        43,214        1.64        1.60        3.72        29   

I

    9.52        0.43        (0.30     0.13        (0.43                   (0.43     9.22        1.53        10,671        0.64        0.60        4.71        29   

Y

    9.48        0.43        (0.30     0.13        (0.43                   (0.43     9.18        1.54        29,686        0.60        0.60        4.73        29   

For the Year Ended October 31, 2010(7)

  

A

  $ 9.11      $ 0.43      $ 0.40      $ 0.83      $ (0.44   $      $      $ (0.44   $ 9.50        9.26   $ 156,092        0.86     0.85     4.69     19

B

    9.04        0.36        0.40        0.76        (0.37                   (0.37     9.43        8.53        7,376        1.67        1.60        3.94        19   

C

    9.07        0.36        0.40        0.76        (0.37                   (0.37     9.46        8.50        47,918        1.62        1.60        3.94        19   

I

    9.13        0.46        0.39        0.85        (0.46                   (0.46     9.52        9.52        8,343        0.62        0.60        4.93        19   

Y

    9.09        0.46        0.39        0.85        (0.46                   (0.46     9.48        9.59        33,050        0.57        0.57        4.97        19   

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable.
(4)  Not annualized.
(5)  Annualized.
(6)  Excluding the expenses not subject to cap, the ratio would have been 0.90%, 1.65%, 1.65% and 0.65% for Class A, Class B, Class C and Class I, respectively.
(7)  Net investment income (loss) per share amounts have been calculated using the Securities and Exchange Commission method.
(8)  Excluding the expenses not subject to cap, the ratio would have been 0.90%, 1.70%, 1.66% and 0.66% for Class A, Class B, Class C and Class I, respectively.
(9)  Class L was merged into Class A on August 5, 2011.

 

The accompanying notes are an integral part of these financial statements.

 

 

  41  

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the “Companies”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by the Board of Directors of the companies (the “Directors”). Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

42

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

43

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds’ Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

44

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

The Hartford Municipal Opportunities Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,012.40    $     4.09    $     1,000.00    $     1,020.73    $     4.11      0.82   181      365   

Class B

$ 1,000.00    $ 1,007.40    $ 7.86    $ 1,000.00    $ 1,016.96    $ 7.90      1.58   181      365   

Class C

$ 1,000.00    $ 1,008.60    $ 7.87    $ 1,000.00    $ 1,016.96    $ 7.90      1.58   181      365   

Class I

$ 1,000.00    $ 1,013.60    $ 2.85    $ 1,000.00    $ 1,021.97    $ 2.86      0.57   181      365   

The Hartford Municipal Real Return Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     995.90    $     3.96    $     1,000.00    $     1,020.83    $     4.01      0.80   181      365   

Class B

$ 1,000.00    $ 993.30    $ 7.66    $ 1,000.00    $ 1,017.11    $ 7.75      1.55   181      365   

Class C

$ 1,000.00    $ 992.20    $ 7.66    $ 1,000.00    $ 1,017.11    $ 7.75      1.55   181      365   

Class I

$ 1,000.00    $ 997.20    $ 2.72    $ 1,000.00    $ 1,022.07    $ 2.76      0.55   181      365   

Class Y

$ 1,000.00    $ 997.20    $ 2.72    $ 1,000.00    $ 1,022.07    $ 2.76      0.55   181      365   

 

 

45

 


Hartford Funds – Tax-Exempt Fixed Income Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: (Municipal Real Return Fund only) Actively trading investments may result in higher costs and higher taxable income.

Derivatives Risk: Investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

Inflation-Protected Securities Risk: (Municipal Real Return Fund only) The market for inflation-protected securities may be less developed or liquid, and more volatile, than other securities markets.

Junk Bond Risk: (Municipal Opportunities Fund only) Investments in junk bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Market, Selection and Strategy Risk: A Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, Fund could underperform its peers or lose money. There is no guarantee a Fund will achieve its stated objective.

Muni Bond Risk: Municipal securities are subject to interest rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk (the risk that the issuing company of a security is unable to pay interest and principal when due), liquidity risk (the risk that an investment may be difficult to sell at an advantageous time or price), call risk (the risk that an investment may be redeemed early), and risks related to changes in the tax-exempt status of the securities.

 

 

46

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-TEF15    6/15    118054    Printed in U.S.A.

hartfordfunds.com


LOGO


LOGO

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

LOGO

James Davey

President

Hartford Funds

 

1  The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Taxable Fixed Income Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

Hartford Duration-Hedged Strategic Income Fund

  39   

The Hartford Emerging Markets Local Debt Fund

  43   

The Hartford Floating Rate Fund

  58   

The Hartford Floating Rate High Income Fund

  69   

The Hartford High Yield Fund

  78   

The Hartford Inflation Plus Fund

  87   

The Hartford Quality Bond Fund

  93   

The Hartford Short Duration Fund

  98   

The Hartford Strategic Income Fund

  113   

The Hartford Total Return Bond Fund

  138   

The Hartford Unconstrained Bond Fund

  167   

The Hartford World Bond Fund

  190   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  210   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  216   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  222   

Notes to Financial Statements (Unaudited)

  227   

Financial Highlights (Unaudited)

  281   

Directors and Officers (Unaudited)

  294   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  296   

Quarterly Portfolio Holdings Information (Unaudited)

  296   

Expense Examples (Unaudited)

  297   

Main Risks (Unaudited)

  303   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.


Hartford Duration-Hedged Strategic Income Fund inception 11/29/2013

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income and long-term total return while seeking to reduce exposure to interest rate risk.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Cumulative Returns (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Duration-Hedged Strategic Income A3

     -1.62%         -1.94%         0.36%   

Duration-Hedged Strategic Income A4

     -6.05%         -6.35%         -2.85%   

Duration-Hedged Strategic Income C3

     -2.07%         -2.58%         -0.36%   

Duration-Hedged Strategic Income C4

     -3.02%         -3.51%         -0.36%   

Duration-Hedged Strategic Income I3

     -1.46%         -1.60%         0.67%   

Duration-Hedged Strategic Income R33

     -1.88%         -2.36%         -0.06%   

Duration-Hedged Strategic Income R43

     -1.73%         -2.07%         0.24%   

Duration-Hedged Strategic Income R53

     -1.58%         -1.77%         0.53%   

Duration-Hedged Strategic Income Y3

     -1.53%         -1.67%         0.63%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.67%   

 

1  Not Annualized
2 Inception: 11/29/2013. Cumulative returns not annualized.
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  2  

 


Hartford Duration-Hedged Strategic Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Duration-Hedged Strategic Income

   Class A      1.15%         2.40%   

Duration-Hedged Strategic Income

   Class C      1.90%         3.08%   

Duration-Hedged Strategic Income

   Class I      0.90%         2.15%   

Duration-Hedged Strategic Income

   Class R3      1.45%         2.85%   

Duration-Hedged Strategic Income

   Class R4      1.15%         2.55%   

Duration-Hedged Strategic Income

   Class R5      0.85%         2.25%   

Duration-Hedged Strategic Income

   Class Y      0.75%         2.15%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Campe Goodman, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Lucius T. Hill, III

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Joseph F. Marvan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Duration-Hedged Strategic Income Fund returned -1.62%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 2.06% for the same period. The Fund also underperformed the 1.14% average return of the Lipper Multi-Sector Income Funds peer group, a group of funds that seeks current income by allocating assets among several different fixed income securities sectors (with no more than 65% in any one sector except for defensive purposes), including U.S. government and foreign governments, with a significant portion of assets in securities rated below investment-grade.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to extraordinary measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy suffered a weather-induced setback during the first quarter of 2015, while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

 

 

 

  3  

 


Hartford Duration-Hedged Strategic Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

Consistent with the Fund’s objective to provide current income and long-term total return while seeking to reduce exposure to interest rate risk, we continued to position the Fund with an overweight to credit risk sectors, including high yield credit, bank loans, and emerging market debt. The Fund’s underperformance relative to the Barclays U.S. Aggregate Bond Index during the period was largely driven by the Fund’s low structural duration relative to the benchmark as rates declined over the period, as well an allocation to emerging markets local debt (EMD) and developed non-U.S. dollar debt, which detracted from results relative to the Barclays U.S. Aggregate Bond Index. Emerging markets exhibited very mixed performance during the period with U.S. dollar-denominated sovereign and corporate credit outperforming local debt markets. Local debt continued to lag as emerging market currencies depreciated against the U.S. dollar over the period. The Fund’s allocation to high yield credit, specifically within Industrials, also detracted from returns relative to the Barclays U.S. Aggregate Bond Index over the period. An out-of-benchmark allocation to bank loans, emphasizing the high and middle quality portions of the market, was based on strong credit fundamentals and reasonable valuations. The bank loan sector generated strong performance for the period and our positioning contributed significantly to benchmark-relative returns. An overweight to commercial mortgage backed (CMBS) securities and an out-of-

benchmark allocation to non-agency mortgage backed securities (MBS) also contributed positively to the Fund’s performance relative to the Barclays U.S. Aggregate Bond Index over the period.

We tactically managed exposures to investment grade and high yield credit through credit default swap index exposure, which detracted from overall performance.

What is the outlook?

We believe that U.S. economic growth prospects remain favorable and that capacity constraints will pressure inflation higher. We are maintaining a moderately pro-cyclical risk stance in credit markets based on supportive monetary policy, positive credit fundamentals, and what we consider to be attractive valuations. We continue to maintain a positive outlook on global high yield based on what we consider to be generally solid fundamentals, a supportive U.S. macroeconomic environment, and appealing valuations. Within bank loans, we believe that overall credit fundamentals remain strong and that collateralized loan obligation issuance will support loan demand.

At the end of the period, we maintained a structural emphasis on higher income-producing sectors such as bank loans, EMD, non-agency MBS, CMBS, and high yield. We continue to expect economic growth and increasing inflation expectations to put upward pressure on interest rates and have positioned the portfolio with a neutral duration relative to the duration-hedged benchmark at the end of the period. At the end of the period, the Fund’s effective duration was 0.14 years.

 

 

 

4

 


The Hartford Emerging Markets Local Debt Fund inception 05/31/2011

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation and income.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Emerging Markets Local Debt A3

     -7.09%         -8.44%         -1.13%   

Emerging Markets Local Debt A4

     -11.27%         -12.56%         -2.28%   

Emerging Markets Local Debt C3

     -7.47%         -9.14%         -1.88%   

Emerging Markets Local Debt C4

     -8.37%         -10.02%         -1.88%   

Emerging Markets Local Debt I3

     -6.99%         -8.30%         -0.92%   

Emerging Markets Local Debt R33

     -7.24%         -8.71%         -1.46%   

Emerging Markets Local Debt R43

     -7.10%         -8.44%         -1.17%   

Emerging Markets Local Debt R53

     -6.96%         -8.26%         -0.87%   

Emerging Markets Local Debt Y3

     -6.96%         -8.14%         -0.90%   

JP Morgan GBI Emerging Markets Global Diversified Index

     -8.24%         -9.35%         -2.26%   

 

1  Not Annualized
2  Inception: 05/31/2011
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To

obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

JP Morgan GBI Emerging Markets Global Diversified Index tracks local currency bonds issued by Emerging Markets governments. It is an investable index that includes only those countries that are directly accessible by most of the international investor base. The index excludes countries with explicit capital controls, but does not factor in regulatory/tax hurdles in assessing eligibility.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  5  

 


The Hartford Emerging Markets Local Debt Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Emerging Markets Local Debt

   Class A      1.25%         1.47%   

Emerging Markets Local Debt

   Class C      2.00%         2.23%   

Emerging Markets Local Debt

   Class I      1.00%         1.19%   

Emerging Markets Local Debt

   Class R3      1.55%         1.81%   

Emerging Markets Local Debt

   Class R4      1.25%         1.51%   

Emerging Markets Local Debt

   Class R5      0.95%         1.20%   

Emerging Markets Local Debt

   Class Y      0.90%         1.11%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses as of the date of the Fund’s most recent prospectus and reflect contractual expense waivers/reimbursements in instances when these reductions reduce the Fund’s gross expenses. Certain contractual waivers/reimbursements remain in effect until February 29, 2016. Other contractual waivers/reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

James W. Valone, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Tieu-Bich Nguyen, CFA

Senior Managing Director and Fixed Income Credit Analyst

Wellington Management Company LLP

Evan J. Ouellette

Vice President and Fixed Income Portfolio Manager

Wellington Management Company LLP

Michael T. Henry

Vice President and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Emerging Markets Local Debt Fund returned -7.09%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the JP Morgan GBI Emerging Markets Global Diversified Index, which returned -8.24% for the same period. The Fund underperformed the -6.34% average return of the Lipper Emerging Markets Local Currency Debt Funds peer group, a group of funds that seek either current income or total return by investing at least 65% of total assets in debt issues denominated in the currency of their market of issuance. “Emerging Market” is defined by a country’s GNP per capita or other economic measures.

Why did the Fund perform this way?

Performance across the emerging markets fixed income sectors was mixed over the period. Local markets debt underperformed external sovereign debt during the period, with the JP Morgan GBI Emerging Markets Global Diversified Index generating total returns of -8.24%. Depreciation of emerging markets (EM) currencies versus the U.S. dollar was the main driver of negative performance during the period. The U.S. dollar continued its rally versus EM currencies driven by

expectations that the U.S. Federal Reserve (Fed) would raise interest rates some time this year. A decline in commodity prices put pressure on commodity exporting countries; however, a partial rebound in the prices later in the period eased those pressures. The Euro area showed promising signs of an economic rebound, while the European Central Bank (ECB) embarked on a quantitative easing program which aims to expand its balance sheet by 60 billion per month. Greece remained in the center of attention as the country continues negotiations with its lenders and investors to assess possible effects of a potential Greek exit from the Eurozone. From a country perspective, Thailand, Philippines, and Indonesia were the best performers in the Index while Turkey, Brazil, and Nigeria lagged.

Emerging market corporate debt finished the period with a return of 1.92% as measured by the JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified Index. Credit spreads widened by 0.39% to 3.39% by the end of the period.

Within the Fund, during the period, currency effect and duration strategies contributed positively to performance relative to the JP Morgan Government Bond Index – Emerging Markets Global

 

 

 

  6  

 


The Hartford Emerging Markets Local Debt Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Diversified Index, while security selection detracted from overall performance. Currency positioning was the main driver of positive relative performance during the period. The Fund’s structural allocation to corporate bonds had a negative impact on relative performance as generally speaking corporate bonds underperformed the local rates component of the Emerging Markets Global Diversified Index. Within the corporate bond holdings in the Fund, security selection versus the broad EM corporate market (JP Morgan CEMBI Broad Diversified Index) detracted from results outweighing the positive contribution from country allocation strategies.

In Russia, both an underweight duration exposure earlier in the period and security selection with an allocation to external sovereign debt contributed to overall performance. Our short position in the Euro, which reflects our view that the currency is likely to remain under pressure as a result of the ECB’s quantitative easing program, proved favorable. Additionally, this short position serves as a hedge against some of our Eastern European currency exposure. In Turkey, an underweight duration exposure and an underweight exposure to the Turkish lira contributed to overall performance.

In contrast, security selection in Mexico with an underweight exposure to long-dated nominal local sovereign debt as well as exposure to mid-dated external corporate debt in the oil and gas sector hurt performance relative to the the JP Morgan GBI Emerging Markets Global Diversified Index. In Indonesia, an underweight duration exposure earlier in the period and security selection with an underweight exposure to the long end of the local sovereign curve detracted from results. We increased exposure to local sovereign debt in Indonesia and moved close to neutral positioning due to slowing credit, slowing domestic demand and easing inflation pressures. In Brazil, security selection with exposure to select mid-dated external corporate issues detracted from overall performance outweighing the marginally positive contribution from overweight duration exposure. Given the tightening of macro policies and weak economic outlook, we expect inflation to begin to trend down over the medium/long term. Valuation remains compelling given the cyclical outlook, overall policy tightening, and large output gap.

Our interest rate and credit positioning is primarily implemented through cash bond positions and derivatives such as interest rate and total return swaps and credit default swap contracts, and interest rate futures. We use local currency denominated cash bonds, currency forwards (deliverable and non-deliverable), and currency options to express our views on currency. Overall, our positioning implemented via derivatives detracted from relative performance during the period.

What is the outlook?

While multiple cross currents continue to face the emerging markets debt asset class, we find reasons to be cautiously optimistic on the outlook for the sector. For the first time in a long while, we are seeing early signs of a synchronized growth recovery in the major developed market economies. While recent U.S. data has surprised on the

downside, we believe that this decline is temporary and that more constructive readings on consumer confidence point to stronger growth ahead. At the same time, the ECB quantitative easing program seems to be coinciding with a moderate cyclical recovery in Europe as well. While the signs in Japan are more muted, the trend there also appears to be toward recovery. Over time this should be favorable for EM export demand and, ultimately, EM growth.

Turning to emerging local debt markets specifically, we are increasingly constructive on both local interest rates and currencies. Starting with rates – cyclical trends, broadly speaking, appear supportive of further rate declines. Decelerating domestic growth and relatively tame inflation are giving a number of EM central banks the room to provide monetary stimulus. In particular, we ended the period overweight duration in Colombia to take advantage of what we view as favorable cyclical dynamics. We have moved back to overweight in Russian local rates, switching out of external bonds into local bonds as the crisis situation is calming, the central bank continues to act in a sensible manner, and inflation trends are turning more favorable as the currency stabilizes. Although Brazil’s central bank continues to tighten, we believe that a combination of weak growth and fiscal tightening should lead inflation lower over the year, leaving good value in long end rates in that market. We have eliminated our short duration position in Czech Republic in recognition that growth and inflation will likely remain muted. We remain cautious in Turkey, where favorable inflation dynamics appear to be reversing while political risk is mounting. As a balance against our overall portfolio overweight to EM rates, we continued to have a short U.S. Treasury future position in the Fund at the end of the period as a tool to protect against the risk of a rising rate environment should the Fed take action later this year.

We are positioned with a pro-risk stance in EM corporates with an overweight exposure to high yield issuers where we continue finding pockets of what we believe are attractive opportunities. We are becoming more constructive on issuers in the oil and gas sector, though we have reduced exposure and moved to a market weight in Russian issuers due to a recent rally. We continue to closely monitor geopolitical and governance risks as they have profound importance to our decisions on country selection as well as positioning in the sectors such as oil and gas. Sovereign risks (Russia, Ukraine, Turkey, Argentina) have been important drivers of EMC performance over the past year. We believe valuations have become more attractive and we continue to find pockets of opportunity in individual EM corporate issuers, particularly within high yield issuers, but we are cautious on the fundamental outlook for the broad EM corporate bond sector. Technical conditions are poor from a liquidity perspective but appear to have become more manageable due to the lack of supply from Latin America and EMEA, with the absence of Russia and Brazil. Our strategy to navigate this environment is to be selective on a country and credit basis and focus on names that appear to have strong cash flows and balance sheet capacity.

 

 

 

7

 


The Hartford Floating Rate Fund inception 04/29/2005

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide high current income and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Floating Rate A2

     1.40%         1.96%         4.55%         4.01%   

Floating Rate A3

     -1.64%         -1.10%         3.92%         3.69%   

Floating Rate B2

     1.01%         1.06%         3.72%         3.36% 4 

Floating Rate B3

     -3.95%         -3.83%         3.38%         3.36% 4 

Floating Rate C2

     1.03%         1.21%         3.78%         3.23%   

Floating Rate C3

     0.04%         0.23%         3.78%         3.23%   

Floating Rate I2

     1.52%         2.22%         4.81%         4.25%   

Floating Rate R32

     1.26%         1.67%         4.27%         3.83%   

Floating Rate R42

     1.39%         1.82%         4.52%         4.02%   

Floating Rate R52

     1.65%         2.23%         4.85%         4.24%   

Floating Rate Y2

     1.68%         2.30%         4.90%         4.32%   

Credit Suisse Leveraged Loan Index

     2.31%         3.52%         5.28%         4.83%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 3.00% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of April 23, 2012, Wellington Management Company, LLP became the sub-adviser for the Fund. At the end of a transition period of approximately four weeks ending on May 18, 2012, Hartford Investment Management Company no longer served as a sub-adviser to the Fund.

Credit Suisse Leveraged Loan Index is a market-value weighted index designed to represent the investable universe of the U.S. dollar-denominated leveraged loan market.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  8  

 


The Hartford Floating Rate Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Floating Rate

   Class A      0.96%         0.96%   

Floating Rate

   Class B      1.75%         1.81%   

Floating Rate

   Class C      1.71%         1.71%   

Floating Rate

   Class I      0.70%         0.70%   

Floating Rate

   Class R3      1.25%         1.35%   

Floating Rate

   Class R4      1.00%         1.05%   

Floating Rate

   Class R5      0.70%         0.77%   

Floating Rate

   Class Y      0.64%         0.64%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Michael J. Bacevich

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Floating Rate Fund returned 1.40%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Credit Suisse Leveraged Loan Index, which returned 2.31% for the same period. The Fund also underperformed the 1.94% average return of the Lipper Loan Participation Funds peer group, a group of funds that invest primarily in interests in collateralized senior corporate loans that have floating or variable rates.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S.

economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

Over the trailing six months, the bank loans market returned 2.31%, as measured by the Credit Suisse Leveraged Loan index. After a challenging end to 2014 due to commodity price volatility, bank loans have rebounded in 2015, benefitting from light supply and good demand from moderate flows and strong CLO issuance.

The Fund underperformed the Credit Suisse Leveraged Loan Index, the Credit Suisse Leveraged Loan Index over the period. Underperformance was largely driven by sector allocation during the

 

 

 

  9  

 


The Hartford Floating Rate Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

period. With respect to sector allocations, overweight positions to the Energy and Metals & Mining sectors detracted from the Fund’s performance relative to the Credit Suisse Leveraged Loan Index. Regarding quality positioning, our overweight allocation to B-rated loans detracted from performance as single-B rated loans underperformed. An out-of-benchmark allocation to European high yield bonds and bank loans aided performance relative to the Credit Suisse Leveraged Loan Index during the period. In aggregate, security selection contributed to performance relative to the Credit Suisse Leveraged Loan Index during the period, specifically within Utilities, consumer cyclical services and Healthcare sectors, which was partially offset by weaker selection within the Energy sector.

The Fund uses derivatives moderately for risk management purposes. Over the period, the Fund employed currency forwards to minimize active currency risk from investments in non-dollar denominated securities. The currency forwards contributed positively to performance relative to the Credit Suisse Leveraged Loan Index due to the strength of the U.S. dollar throughout the period.

What is the outlook?

Despite outflows of $7.1 billion from bank loan mutual funds year-to-date, issuance of collateralized loan obligations (CLOs) – a major source of bank-loan demand – continues to be robust, with $40.8 billion priced so far this year. Although we expect CLO issuance to be a continuing source of demand in the bank-loan market this year, it should be noted that the Federal Deposit Insurance Corporation (FDIC) recently approved risk-retention rules for CLO issuers, which come into force on December 24, 2016 and will require issuers to retain a 5% stake in their CLO. These new rules are likely to force the consolidation of CLO managers and potentially curb the strong issuance that we have seen during the past two years.

In aggregate, we believe bank-loan valuations are currently attractive, given our view that the default environment will remain benign over the next few years. Additionally, we believe the potential long-term benefits of owning bank loans, including diversification and their floating-rate nature, particularly given the still-low absolute yields across most fixed income sectors, will eventually reassert themselves, enhancing the relative appeal of this asset class.

Our outlook for U.S. high-yield bonds remains positive, based on what we consider to be generally solid fundamentals and appealing valuations, as well as a supportive U.S. macroeconomic environment. While acknowledging elevated shareholder-friendly activity such as mergers and acquisitions and leveraged buyouts, we do not believe this is likely to affect default rates outside the energy sector in the near to medium term. However, should low oil prices persist, we would expect default rates to pick up within the independent energy and oil field-services subsectors, given that their revenues are more directly affected by oil prices.

Over the course of 2015, we expect that the global low-interest-rate environment will support continued demand for high-yield assets from investors seeking additional income.

At the end of the period, we maintained an out of benchmark allocation to high yield credit and favored the energy, metals & mining, and packaging sectors relative to the Credit Suisse Leveraged Loan Index.

 

 

 

10

 


The Hartford Floating Rate High Income Fund inception 09/30/2011

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide high current income, and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Floating Rate High Income A3

     0.70%         1.09%         6.54%   

Floating Rate High Income A4

     -2.32%         -1.94%         5.63%   

Floating Rate High Income C3

     0.33%         0.34%         5.74%   

Floating Rate High Income C4

     -0.64%         -0.61%         5.74%   

Floating Rate High Income I3

     0.83%         1.34%         6.82%   

Floating Rate High Income R33

     0.55%         0.79%         6.16%   

Floating Rate High Income R43

     0.70%         1.09%         6.48%   

Floating Rate High Income R53

     0.95%         1.40%         6.80%   

Floating Rate High Income Y3

     0.85%         1.40%         6.80%   

Credit Suisse Leveraged Loan Index

     2.31%         3.52%         6.52%   

 

1  Not Annualized
2  Inception: 09/30/2011
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 3.00% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of April 23, 2012, Wellington Management Company, LLP became the sub-adviser for the Fund. At the end of a transition period of approximately four weeks ending on May 18, 2012, Hartford Investment Management Company no longer served as a sub-adviser to the Fund.

Credit Suisse Leveraged Loan Index is a market-value weighted index designed to represent the investable universe of the U.S. dollar-denominated leveraged loan market.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  11  

 


The Hartford Floating Rate High Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Floating Rate High Income

   Class A      1.07%         1.12%   

Floating Rate High Income

   Class C      1.82%         1.89%   

Floating Rate High Income

   Class I      0.82%         0.86%   

Floating Rate High Income

   Class R3      1.37%         1.50%   

Floating Rate High Income

   Class R4      1.07%         1.20%   

Floating Rate High Income

   Class R5      0.77%         0.90%   

Floating Rate High Income

   Class Y      0.77%         0.80%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Michael J. Bacevich

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Floating Rate High Income Fund returned 0.70%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Credit Suisse Leveraged Loan Index, which returned 2.31% for the same period. The Fund also underperformed the 1.94% average return of the Lipper Loan Participation Funds peer group, a group of funds that that invest primarily in interests in collateralized senior corporate loans that have floating or variable rates.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S.

economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

Over the trailing six months, the bank loans market returned 2.31%, as measured by the Credit Suisse Leveraged Loan index. After a challenging end to 2014 due to commodity price volatility, bank loans have rebounded in 2015, benefiting from light supply and good demand from moderate flows and strong collateralized loan obligations (CLO) issuance.

The Fund underperformed the Credit Suisse Leveraged Loan Index over the period. Underperformance was largely driven by sector

 

 

 

  12  

 


The Hartford Floating Rate High Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

allocation during the period. In particular, overweight positions to the Energy and Metals & Mining sectors detracted from the Fund’s performance relative to the Credit Suisse Leveraged Loan Index, as commodity prices were under pressure over the period. Regarding quality positioning, our underweight allocation to BB-rated loans detracted from performance relative to the Credit Suisse Leveraged Loan Index. Our overweight to high-yield credit also hurt performance relative to the Credit Suisse Leveraged Loan Index during the period. However, an out-of-benchmark allocation to European high yield bonds aided performance relative to the Credit Suisse Leveraged Loan Index during the period. In aggregate, security selection detracted from performance relative to the Credit Suisse Leveraged Loan Index during the period, specifically within the Energy and Consumer Products sectors, which was partially offset by positive selection in the Financial services and Utilities sectors.

The Fund uses derivatives moderately for risk management purposes. Over the period, the Fund employed currency forwards to minimize active currency risk from investments in non-dollar denominated securities. The currency forwards contributed to performance relative to the Credit Suisse Leveraged Loan Index due to the strength of the U.S. dollar throughout the period.

What is the outlook?

Despite outflows of $7.1 billion from bank loan mutual funds year-to-date, issuance of CLOs – a major source of bank-loan demand – continues to be robust, with $40.8 billion priced so far this year. Although we expect CLO issuance to be a continuing source of demand in the bank-loan market this year, it should be noted that the Federal Deposit Insurance Corporation (FDIC) recently approved risk-retention rules for CLO issuers, which come into force on December 24, 2016 and will require issuers to retain a 5% stake in their CLO. These new rules are likely to force the consolidation of CLO managers and potentially curb the strong issuance that we have seen during the past two years.

In aggregate, we believe bank-loan valuations are currently attractive, given our view that the default environment will remain benign over the next few years. Additionally, we believe the potential long-term benefits of owning bank loans, including diversification and their floating-rate nature, particularly given the still-low absolute yields across most fixed income sectors, will eventually reassert themselves, enhancing the relative appeal of this asset class.

Our outlook for U.S. high-yield bonds remains positive, based on what we view as generally solid fundamentals and appealing valuations, as well as a supportive U.S. macroeconomic environment. While acknowledging elevated shareholder-friendly activity such as mergers and acquisitions and leveraged buyouts, we do not believe this is likely to affect default rates outside the Energy sector in the near to medium term. However, should low oil prices persist, we would expect default rates to pick up within the

independent energy and oil field-services subsectors, given that their revenues are more directly affected by oil prices.

Over the course of 2015, we expect that the global low-interest-rate environment will support continued demand for high-yield assets from investors seeking additional income.

At the end of the period, we maintained an out-of-benchmark allocation to high yield credit and favored the Energy, Financial Services, and Gaming sectors relative to the Credit Suisse Leveraged Loan Index.

 

 

 

13

 


The Hartford High Yield Fund inception 09/30/1998

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide high current income, and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

High Yield A2

     1.15%         2.11%         7.17%         6.94%   

High Yield A3

     -3.40%         -2.49%         6.18%         6.45%   

High Yield B2

     0.65%         1.22%         6.35%         6.30% 4 

High Yield B3

     -4.29%         -3.64%         6.03%         6.30% 4 

High Yield C2

     0.78%         1.23%         6.38%         6.16%   

High Yield C3

     -0.21%         0.25%         6.38%         6.16%   

High Yield I2

     1.14%         2.22%         7.44%         7.20%   

High Yield R32

     0.87%         1.67%         6.86%         6.75%   

High Yield R42

     1.15%         2.11%         7.17%         7.03%   

High Yield R52

     1.17%         2.28%         7.46%         7.25%   

High Yield Y2

     1.19%         2.33%         7.50%         7.32%   

Barclays U.S. Corporate High Yield Bond Index

     1.51%         2.58%         8.35%         8.42%   

 

1 Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/31/07. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. Corporate High Yield Bond 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 Securities and Exchange Commission.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  14  

 


The Hartford High Yield Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

High Yield

   Class A      1.05%         1.14%   

High Yield

   Class B      1.80%         2.02%   

High Yield

   Class C      1.80%         1.83%   

High Yield

   Class I      0.80%         0.81%   

High Yield

   Class R3      1.35%         1.47%   

High Yield

   Class R4      1.05%         1.16%   

High Yield

   Class R5      0.75%         0.85%   

High Yield

   Class Y      0.70%         0.73%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Christopher A. Jones, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

David B. Marshak

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford High Yield Fund returned 1.15%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Corporate High Yield Bond Index, which returned 1.51% for the same period. The Fund outperformed the 0.85% average 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?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In

Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

The Barclays U.S. High Yield Bond Index returned 1.51% for the six-months ended April 30, 2015 and outperformed duration equivalent treasuries by 3.84%. The Option-Adjusted Spread (OAS) of the High Yield index was 4.39% on April 30, 2015, slightly wider than six months ago (4.15%).

The primary detractor from returns relative to the Barclays U.S. Corporate High Yield Bond Index during the period was security selection within high yield. Our position in Fortescue, an Australian Iron Ore company, contributed negatively to performance relative to the Barclays U.S. Corporate High Yield Bond Index in the metal sector. Recently, the company has improved its cost structure, making Fortescue the 3rd lowest cost producer of iron ore globally. Fortescue has also cut expected capital expenditures to $650 Million for 2015, further aiding cash flow. With no significant maturities before 2019, ample liquidity, and an improved cost structure, we believe Fortescue will manage through this difficult stretch in the iron

 

 

 

  15  

 


The Hartford High Yield Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

ore cycle. Exposure to TXU, an electric utility company, which is in the midst of a restructuring, detracted from performance relative to the Barclays U.S. Corporate High Yield Bond Index in the Utilities sector. Our portfolio holds the more senior TXU securities in the capital structure, which we believe offer good value in most restructuring scenarios.

In terms of industry sector allocations, the Fund benefitted from being underweight Energy and overweight Technology. Over the last six months, oil price volatility has put pressure on energy issuers. Historically, energy companies have been voracious users of capital and we are concerned about the risks of financing uncertain oil exploration projects with debt. Regarding technology, we favor the sector primarily due to the bottom up ideas we are finding in the space. We see the best opportunities in software companies with strong recurring revenue streams and are more wary of hardware companies. Finally, an out-of-benchmark allocation to bank loans slightly detracted from performance. An allocation to non-U.S. bank loans also detracted during the period.

A lack of exposure to a number of issuers within the Energy sector aided performance relative to the Barclays U.S. Corporate High Yield Bond Index at the end of the period. We maintained our underweight to the sector, and have focused our exposure on names that we feel are low cost, and have good hedge positions and solid balance sheets. In the consumer products sector, an overweight to Sun Products, a North American provider of laundry detergent and other household products, contributed to relative returns. The laundry detergent industry was in the midst of a price war and Sun’s competitive response of price cuts, increased promotions, and operational cost cuts were viewed favorably by the market.

Over the period, the Fund had a small position in High Yield credit default swap index (CDX), which had a marginal impact on performance relative to the Barclays U.S. Corporate High Yield Bond Index. The Fund’s CDX position is used for liquidity purposes and for tactically adjusting the risk posture of the Fund.

What is the outlook?

Our outlook for U.S. high-yield bonds remains positive, based on what we view as generally solid fundamentals and appealing valuations, as well as a supportive U.S. macroeconomic environment. While acknowledging elevated shareholder-friendly activity such as mergers and acquisitions and leveraged buyouts, we do not believe this is likely to affect default rates outside the energy sector in the near to medium term. However, should low oil prices persist, we would expect default rates to pick up within the independent energy and oil field-services subsectors, given that their revenues are more directly affected by oil prices.

Over the course of 2015, we expect that a sustained and global low-interest-rate environment will support continued demand for high-yield assets from investors seeking additional income. The Fund ended the period most overweight the technology sector relative to the Barclays U.S. Corporate High Yield Bond Index and most underweight the Energy sector due to concerns about commodity price volatility.

 

 

 

16

 


The Hartford Inflation Plus Fund inception 10/31/2002

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks a total return that exceeds the rate of inflation over an economic cycle.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Inflation Plus A2

     0.24%         0.30%         2.81%         3.79%   

Inflation Plus A3

     -4.27%         -4.22%         1.87%         3.31%   

Inflation Plus B2

     -0.17%         -0.58%         2.04%         3.17% 4 

Inflation Plus B3

     -5.16%         -5.53%         1.70%         3.17% 4 

Inflation Plus C2

     -0.17%         -0.49%         2.06%         3.02%   

Inflation Plus C3

     -1.17%         -1.48%         2.06%         3.02%   

Inflation Plus I2

     0.34%         0.55%         3.08%         4.04%   

Inflation Plus R32

     0.04%         -0.08%         2.47%         3.53%   

Inflation Plus R42

     0.24%         0.19%         2.77%         3.78%   

Inflation Plus R52

     0.34%         0.55%         3.07%         4.03%   

Inflation Plus Y2

     0.34%         0.57%         3.16%         4.11%   

Barclays U.S. TIPS 1-10 Year Index

     0.60%         0.98%         2.75%         3.88%   

Barclays U.S. TIPS Index

     1.28%         2.48%         3.96%         4.43%   

 

1 Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. TIPS 1-10 Year 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 maturities of 1 to 10 years.

Barclays U.S. TIPS Index represents securities that protect against adverse inflation and provide a minimum level of real return. To be included in this index, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more than one year to maturity.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  17  

 


The Hartford Inflation Plus Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Inflation Plus

   Class A      0.85%         0.92%   

Inflation Plus

   Class B      1.60%         1.74%   

Inflation Plus

   Class C      1.60%         1.63%   

Inflation Plus

   Class I      0.60%         0.67%   

Inflation Plus

   Class R3      1.20%         1.23%   

Inflation Plus

   Class R4      0.90%         0.92%   

Inflation Plus

   Class R5      0.60%         0.64%   

Inflation Plus

   Class Y      0.52%         0.52%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Lindsay T. Politi*

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Inflation Plus Fund returned 0.24%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmarks- the Barclays U.S. TIPS 1-10 Year Index, and the Barclays U.S. TIPS Index-which returned 0.60% and 1.28%, respectively, for the same period. The Fund underperformed the 0.25% average return of the Lipper Inflation Protected Bond Funds peer group, a group of funds that invest primarily in inflation-indexed fixed income securities. Inflation-linked bonds are fixed income securities structured to provide protection against inflation.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany;

however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009, mainly because of the steep fall in energy costs.

Global government bond prices gained over the six months as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve over the six-month period.

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

 

 

* Effective May 6, 2015, Joseph P. Marvan, Senior Managing Director, Partner, and Fixed Income Portfolio Manager serves as the Fund’s portfolio manager and Ms. Politi is no longer a portfolio manager for the Fund.

 

 

  18  

 


The Hartford Inflation Plus Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Much of the movement in real rates and break-even inflation rates (which can be regarded as a proxy for the market’s inflation expectations) over the period was attributable to volatility in oil prices. Over the last two months of 2014, the price of front-month crude oil contracts fell by more than 40%. Amid market uncertainty over when and at what level oil prices would stabilize, five-year inflation breakeven rates, which can be regarded as a proxy for the market’s inflation expectations, fell and short-term real rates rose causing the yield curve for Treasury Inflation Protected Securities (TIPS) to flatten over that period. In early 2015, oil prices stabilized and began to recover. Deflationary pressures abroad and weak first quarter 2015 economic indicators also contributed to the TIPS curve’s steepening by approximately as much as it flattened in late 2014, with short-term breakevens rising sharply in January and February. Ten-year breakevens were much less volatile over the period, as they tend to be less sensitive to changes in short-term inflation expectations.

Contribution to performance from bank loans was positive over the period, but our developed currency strategy detracted moderately from performance, as did our out-of-benchmark allocations, relative to the Barclays U.S. TIPS 1-10 Year Index, to Spain, Italy and Brazil inflation-linked bonds. Positioning within TIPS contributed positively to performance in late 2014 and has detracted from performance year-to-date in 2015. Throughout the period, we have been positioned with a curve flattening bias, which added to performance in November and December 2014 as the curve flattened and short-term real rates rose, and detracted in first quarter 2015 as real rates fell again and the curve steepened.

Over the period, the portfolio made use of derivatives in pursuit of both risk management and returns relative to the Barclays U.S. TIPS 1-10 Year Index. Derivatives usage included U.S. Treasury futures to manage duration, currency forwards both to hedge emerging market currency risk and as part of the developed currency strategy,

and Consumer Price Index (CPI) swaps to add inflation sensitivity. Over the period, the impact of derivatives on performance was mixed. The developed currency strategy detracted moderately from performance, while currency hedges to manage currency exposure from the non-U.S. inflation linkers added to performance, partially offsetting negative currency effect in the global inflation linkers.

What is the outlook?

We believe the next few months may continue to be challenging for short-term TIPS, which are more sensitive to energy prices that drive near-term inflation expectations. Therefore we maintained our underweight on the front end of the curve at the end of the period. However, we believe that the improving U.S. labor market should begin to put upward pressure on wages. The unemployment rate continues to fall, and we believe that employers will need to begin raising wages at the margin to attract new workers, especially those who have the in-demand skills. We believe this should increasingly support core inflation, suggesting a compelling opportunity in longer-term breakeven inflation rates if oil prices remain stable. In light of this view, at the end of the period the Fund was underweight shorter maturity TIPS, which are sensitive to near term inflation expectations, while being simultaneously positioned to benefit if longer term breakeven inflation expectations rise. We now expect the Fed not to begin raising rates until this fall, given low inflation and weaker-than-expected first quarter 2015 economic indicators, but believe that interest rate markets generally incorporate these expectations into current prices. The Fund ended the period with a duration close to that of the Barclays U.S. TIPS 1-10 Year Index. The Fund continued to maintain an out-of-benchmark allocation to bank loans at the end of the period, as we believe that an improving economic environment should be supportive of corporate credit. The Fund also maintained an opportunistic out-of-benchmark exposure to emerging market inflation-linked bonds, as emerging market valuations are looking increasingly attractive to us.

 

 

 

19

 


The Hartford Quality Bond Fund inception 11/30/2012

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to maximize total return while providing a high level of current income consistent with prudent investment risk.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Quality Bond A3

     1.81%         4.54%         2.05%   

Quality Bond A4

     -2.77%         -0.16%         0.12%   

Quality Bond C3

     1.41%         3.76%         1.28%   

Quality Bond C4

     0.41%         2.76%         1.28%   

Quality Bond I3

     2.02%         4.90%         2.34%   

Quality Bond R33

     1.68%         4.22%         1.69%   

Quality Bond R43

     1.80%         4.60%         2.00%   

Quality Bond R53

     2.01%         4.86%         2.31%   

Quality Bond Y3

     2.03%         4.91%         2.34%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         2.03%   

 

1  Not Annualized
2  Inception: 11/30/2012
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  20  

 


The Hartford Quality Bond Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Quality Bond

   Class A      0.95%         1.26%   

Quality Bond

   Class C      1.70%         2.01%   

Quality Bond

   Class I      0.70%         0.98%   

Quality Bond

   Class R3      1.25%         1.68%   

Quality Bond

   Class R4      0.95%         1.38%   

Quality Bond

   Class R5      0.65%         1.08%   

Quality Bond

   Class Y      0.60%         0.98%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Michael F. Garrett

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Val Petrov, PhD, CFA

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Brian Conroy, CFA

Assistant Vice President and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

How did the Fund perform?

The Class A shares of The Hartford Quality Bond Fund returned 1.81%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 2.06% for the same period. The Fund also underperformed the 2.09% average return of the Lipper U.S. Mortgage Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in

particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

 

 

 

  21  

 


The Hartford Quality Bond Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds. Mortgage backed securities (MBS), as measured by the Barclays U.S. MBS Fixed Rate Index, returned 1.93% for the period with the option adjusted spread (OAS) tightening 0.13%. In general, higher coupon MBS underperformed lower coupon MBS over the period.

The Fund underperformed the Barclays U.S. Aggregate Bond Index during the six month-period due primarily to its short duration positioning relative to the Index as interest rates declined over the period. Within mortgage backed securities (MBS), a structural overweight to agency MBS pass-throughs, and an allocation to FNMA (Fannie Mae) Delegated Underwriting and Servicing (DUS) bonds, contributed positively to relative returns over the period. An out-of-benchmark allocation to non-agency residential mortgage-backed securities (RMBS) as well as exposure to collateralized loan obligations (CLOs) within the asset backed securities (ABS) sector, also contributed to performance relative to the Barclays U.S. Aggregate Bond Index for the period. Finally, the Fund’s structural underweight to investment grade (IG) corporate credit contributed positively to performance relative to the Barclays U.S. Aggregate Bond Index as the sector lagged on an excess return basis.

During the period, the Fund used Treasury Futures to manage duration. Overall, the Fund’s short duration posture relative to the Barclays U.S. Aggregate Bond Index has been a detractor.

What is the outlook?

At the end of the period we maintained a moderate bias towards economically sensitive securities, as we believe that U.S. economic momentum remains positive. We continue to believe that the agency MBS sector represents a better risk/reward trade-off at this point in the cycle than investment grade corporates. We remain positive on the non-agency RMBS sector, supported by what we believe are attractive valuations, a normalizing housing market, and gradually expanding mortgage-credit availability. Within commercial mortgage backed securities (CMBS), fundamentals appear to remain healthy, as the sector continues to be supported by the recovering economy, a better lending environment for commercial real estate, and a manageable near-term loan-maturity schedule. As a result, we continue to maintain our overweight to the sector. We remain overweight ABS, as we are optimistic that continued economic improvement, lower energy prices, and a stronger U.S. dollar will benefit consumers, which should support the sector.

 

 

22

 


The Hartford Short Duration Fund inception 10/31/2002

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Short Duration A2

     1.07%         1.31%         2.32%         2.87%   

Short Duration A3

     -0.95%         -0.72%         1.91%         2.66%   

Short Duration B2

     1.07%         1.40%         2.31%         2.46% 4 

Short Duration B3

     -3.93%         -3.58%         1.94%         2.46% 4 

Short Duration C2

     0.70%         0.66%         1.56%         2.10%   

Short Duration C3

     -0.30%         -0.33%         1.56%         2.10%   

Short Duration I2

     1.23%         1.61%         2.63%         3.04%   

Short Duration R32

     0.92%         1.01%         2.19%         2.95%   

Short Duration R42

     1.07%         1.31%         2.43%         3.07%   

Short Duration R52

     1.22%         1.72%         2.65%         3.18%   

Short Duration Y2

     1.25%         1.67%         2.66%         3.18%   

Barclays 1-3 Year U.S. Government/Credit Index

     0.56%         1.05%         1.31%         2.89%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 2.00% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 2/26/10. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 9/30/11. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a modified investment strategy. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays 1-3 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 1-3 Year U.S. Government/Credit Index includes securities in the 1-3 year maturity range in the U.S. Government/Credit Index.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  23  

 


The Hartford Short Duration Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Short Duration

   Class A      0.85%         0.91%   

Short Duration

   Class B      1.60%         1.76%   

Short Duration

   Class C      1.60%         1.60%   

Short Duration

   Class I      0.55%         0.55%   

Short Duration

   Class R3      1.15%         1.23%   

Short Duration

   Class R4      0.85%         0.92%   

Short Duration

   Class R5      0.55%         0.61%   

Short Duration

   Class Y      0.50%         0.50%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Timothy E. Smith

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Short Duration Fund returned 1.07%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Barclays 1-3 Year U.S. Government/Credit Index, which returned 0.56% for the same period. The Fund also outperformed the 0.55% average return of the Lipper Short 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?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014.

The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

The Fund’s out-of-benchmark allocation to bank loans was the primary driver of outperformance relative to the Barclays 1-3 Year U.S. Government/Credit Index over the period. An overweight to investment grade corporates also contributed to outperformance relative to the Barclays 1-3 Year U.S. Government/Credit Index during the period. Within investment grade credit, our overweights to Financials and Industrials contributed positively. The Fund’s out-of-benchmark allocation to asset backed securities (ABS), particularly collateralized loan obligations (CLOs), was also additive to relative results.

 

 

 

  24  

 


The Hartford Short Duration Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Duration and yield curve positioning contributed to relative returns, specifically being underweight the 2-year portion of the curve as short rates rose and being overweight the 5-year portion of the curve as intermediate rates fell over the period.

Derivatives were not used in a significant manner in this Fund during the period and did not have a material impact on performance during the period.

What is the outlook?

We still believe that U.S. economic momentum remains positive. U.S. employment, payrolls and consumer confidence continue to improve, but challenges to global growth have increased. Therefore, the Fund maintained a moderately pro-cyclical risk posture at the end of the period. We also believe that the Fed will begin increasing the Fed Funds rate in late 2015 and expect core inflation to dip then rise later in 2015. With this in mind, we maintained a short duration posture at the end of the period.

We believe the investment grade corporate bond market has strong credit fundamentals, and we continue to favor U.S. Financials. We also continue to favor bank loans over high yield credit. At the end of the period, we maintained allocations to agency and non-agency mortgage-backed securities and continued to favor auto, equipment, and credit card ABS, as well as senior tranches of commercial mortgage backed securities deals.

 

 

 

25

 


The Hartford Strategic Income Fund inception 05/31/2007

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide current income and long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      Since
Inception2
 

Strategic Income A3

     0.22%         2.16%         5.32%         4.78%   

Strategic Income A4

     -4.29%         -2.44%         4.35%         4.17%   

Strategic Income B3

     -0.04%         1.49%         4.53%         3.98% 5 

Strategic Income B4

     -4.85%         -3.31%         4.20%         3.98% 5 

Strategic Income C3

     -0.03%         1.52%         4.56%         4.04%   

Strategic Income C4

     -0.99%         0.56%         4.56%         4.04%   

Strategic Income I3

     0.35%         2.42%         5.60%         5.08%   

Strategic Income R33

     0.09%         1.87%         5.18%         5.18%   

Strategic Income R43

     0.23%         2.17%         5.42%         5.34%   

Strategic Income R53

     0.38%         2.47%         5.65%         5.49%   

Strategic Income R63,6

     0.39%         2.63%         5.69%         5.51%   

Strategic Income Y3

     0.40%         2.63%         5.69%         5.52%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         5.09%   

 

1  Not Annualized
2 Inception: 5/31/2007
3  Without sales charge
4  With sales charge
5  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
6 Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to

5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class Y shares commenced operations on 8/31/07. Class R3, R4 and R5 shares commenced operations on 9/30/11. Performance prior to that date is that of the Fund’s Class Y shares which had different operating expenses. Accordingly, the “Since Inception” performance shown for Class Y, R3, R4 and R5 shares is since the commencement of operations of Class Y shares on 8/31/07. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of April 2, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  26  

 


The Hartford Strategic Income Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

              Net      Gross  

Strategic Income

     Class A         0.95%         1.01%   

Strategic Income

     Class B         1.70%         1.82%   

Strategic Income

     Class C         1.70%         1.72%   

Strategic Income

     Class I         0.70%         0.71%   

Strategic Income

     Class R3         1.25%         1.40%   

Strategic Income

     Class R4         0.95%         1.05%   

Strategic Income

     Class R5         0.65%         0.73%   

Strategic Income

     Class R6         0.60%         0.63%   

Strategic Income

     Class Y         0.60%         0.63%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Campe Goodman, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Lucius T. Hill, III

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Joseph F. Marvan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Strategic Income Fund returned 0.22%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 2.06% for the same period. The Fund also underperformed the 1.14% average return of the Lipper Multi-Sector Income Funds peer group, a group of funds that seeks current income by allocating assets among several different fixed income securities sectors (with no more than 65% in any one sector except for defensive purposes), including U.S. government and foreign governments, with a significant portion of assets in securities rated below investment-grade.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to extraordinary measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates

to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy suffered a weather-induced setback during the first quarter of 2015, while growth in Europe, Japan, and China also weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

 

 

 

  27  

 


The Hartford Strategic Income Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

Consistent with the Fund’s objective to provide current income and long-term total return, we continued to position the Fund with an overweight to spread sectors, including high yield credit, bank loans, and emerging market debt. The primary driver of the Fund’s underperformance relative to the Barclays U.S. Aggregate Bond Index was an allocation to emerging markets local debt and developed non-U.S. dollar debt. Emerging markets exhibited very mixed performance during the period with U.S. dollar-denominated sovereign and corporate credit outperforming local debt markets. Local debt continued to lag as emerging market currencies depreciated against the U.S. dollar over the period. The Fund’s allocation to high yield credit, specifically within Industrials, also detracted from relative returns over the period. We tactically managed exposures to investment grade and high yield credit through credit default swap index exposure which detracted from overall performance. An out-of-benchmark allocation to bank loans, emphasizing the high and middle quality portions of the market, was based on what we consider to be strong credit fundamentals and reasonable valuations. The bank loan sector generated strong performance for the period and our positioning contributed significantly to returns relative to the Barclays U.S. Aggregate Bond Index. An overweight to commercial mortgage backed (CMBS) securities and an out-of-benchmark allocation to non-agency mortgage backed securities (MBS) also contributed positively to the Fund’s relative performance over the period.

What is the outlook?

We believe that U.S. economic growth prospects remain favorable and that capacity constraints will pressure inflation higher. We are maintaining a moderately pro-cyclical risk stance in credit markets based on what we consider to be supportive monetary policy, positive credit fundamentals, and attractive valuations. We continue to maintain a positive outlook on global high yield, based on what we believe are generally solid fundamentals, a supportive U.S. macroeconomic environment, and appealing valuations. Within bank loans, we believe that overall credit fundamentals remain strong and that collateralized loan obligation issuance will support loan demand. At the end of the period we maintained a structural emphasis on higher income-producing sectors such as bank loans, emerging market debt, non-agency MBS, CMBS, and high yield.

 

 

 

28

 


The Hartford Total Return Bond Fund inception 07/22/1996

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks a competitive total return, with income as a secondary objective.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Total Return Bond Fund A2

     1.33%         3.38%         4.09%         3.98%   

Total Return Bond Fund A3

     -3.23%         -1.27%         3.14%         3.50%   

Total Return Bond Fund B2

     0.97%         2.64%         3.32%         3.36% 4 

Total Return Bond Fund B3

     -3.94%         -2.31%         2.97%         3.36% 4 

Total Return Bond Fund C2

     1.07%         2.62%         3.34%         3.22%   

Total Return Bond Fund C3

     0.08%         1.63%         3.34%         3.22%   

Total Return Bond Fund I2

     1.49%         3.69%         4.39%         4.25%   

Total Return Bond Fund R32

     1.26%         3.01%         3.79%         3.84%   

Total Return Bond Fund R42

     1.42%         3.33%         4.11%         4.07%   

Total Return Bond Fund R52

     1.57%         3.73%         4.42%         4.32%   

Total Return Bond Fund R62,5

     1.56%         3.73%         4.52%         4.41%   

Total Return Bond Fund Y2

     1.62%         3.75%         4.52%         4.41%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         4.75%   

 

1  Not Annualized
2  Without sales charge
3 With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held.

Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 8/31/06. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 12/22/06. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses. Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  29  

 


The Hartford Total Return Bond Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Total Return Bond

   Class A      0.87%         0.88%   

Total Return Bond

   Class B      1.62%         1.81%   

Total Return Bond

   Class C      1.60%         1.60%   

Total Return Bond

   Class I      0.55%         0.55%   

Total Return Bond

   Class R3      1.16%         1.16%   

Total Return Bond

   Class R4      0.84%         0.84%   

Total Return Bond

   Class R5      0.55%         0.55%   

Total Return Bond

   Class R6      0.44%         0.44%   

Total Return Bond

   Class Y      0.44%         0.44%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Joseph F. Marvan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Lucius T. (L.T.) Hill, III

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Campe Goodman, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Total Return Bond Fund returned 1.33%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 2.06% for the same period. The Fund also underperformed the 1.92% average return of the Lipper Core Bond Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy suffered a weather-induced setback during the first quarter of 2015, while growth in Europe, Japan, and China also weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take

 

 

 

  30  

 


The Hartford Total Return Bond Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

The primary driver of the Fund’s underperformance relative to the Barclays U.S. Aggregate Bond Index was an allocation to emerging markets debt. Emerging markets exhibited very mixed performance during the period with U.S. dollar-denominated sovereign and corporate credit outperforming local debt markets. Local debt continued to lag as emerging market currencies depreciated against the U.S. dollar over the period. High yield credit default swap index positions, which were used as a source of liquidity and to manage overall portfolio risk, also detracted from relative returns over the period. Additionally, yield curve positioning detracted from performance relative to the Barclays U.S. Aggregate Bond Index over the period. On the other hand, an out-of-benchmark allocation to bank loans was additive to relative results as was positioning within structured credit, specifically an overweight to commercial mortgage backed securities (CMBS) and exposure to collateralized loan obligations (CLOs). Also, an out-of-benchmark allocation to non-agency residential mortgage backed securities (RMBS) contributed positively to performance relative to the Barclays U.S. Aggregate Bond Index over the period.

Derivatives used in the portfolio during this period primarily consisted of currency forwards, bond futures, and investment grade and high yield CDS index positions that were used as a source of liquidity and to manage overall portfolio risk. In isolation, derivative positions detracted from relative results.

What is the outlook?

Despite a weak first quarter, we believe that U.S. economic growth prospects remain favorable for the balance of the year. We believe that the consumer is in good shape and job gains are solid, though U.S. dollar strength is a negative. We are maintaining a moderately pro-cyclical risk stance in credit markets generally, based on what we view as supportive monetary policy, positive credit fundamentals, and attractive valuations. We believe capacity constraints will pressure inflation higher so we were positioned for higher inflation at the end of the period.

We ended the period neutral investment in corporates as we believed there were better opportunities in other sectors. We continued to hold an overweight to CMBS and an allocation to high quality CLOs within the Asset-Backed Security sector. We maintained an out-of-benchmark allocation to non-agency MBS and held an overweight to agency Mortgage-Backed Securities. Within high yield, we favored BB-rated securities and bank loans. We also maintained an allocation to contingent convertibles as we believe they offer attractive valuations. We also held a modest allocation to unhedged local currency emerging markets debt.

 

 

 

31

 


The Hartford Unconstrained Bond Fund inception 10/31/2002

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to maximize long-term total return.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      5 Years      10 Years  

Unconstrained Bond A2

     0.05%         1.15%         3.98%         4.01%   

Unconstrained Bond A3

     -4.45%         -3.40%         3.03%         3.54%   

Unconstrained Bond B2

     -0.22%         0.40%         3.20%         3.39% 4 

Unconstrained Bond B3

     -5.17%         -4.53%         2.85%         3.39% 4 

Unconstrained Bond C2

     -0.22%         0.49%         3.22%         3.24%   

Unconstrained Bond C3

     -1.21%         -0.49%         3.22%         3.24%   

Unconstrained Bond I2

     0.28%         1.51%         4.16%         4.10%   

Unconstrained Bond R32

     0.00%         0.95%         3.86%         4.10%   

Unconstrained Bond R42

     0.15%         1.15%         4.09%         4.21%   

Unconstrained Bond R52

     0.30%         1.55%         4.31%         4.32%   

Unconstrained Bond Y2

     0.20%         1.45%         4.28%         4.31%   

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index

     0.01%         0.02%         0.09%         1.46%   

Barclays U.S. Aggregate Bond Index

     2.06%         4.46%         4.12%         4.75%   

 

1  Not Annualized
2  Without sales charge
3  With sales charge
4  Class B shares convert to Class A shares after 8 years. The return shown reflects the conversion to Class A shares, which had different operating expenses, for the period after conversion.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class B shares reflect a contingent deferred sales charge of up to 5.00% and declining to zero, depending on the period of time the shares are held. Returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Effective 9/30/09, Class B shares of the Fund were closed to new investments.

Class I shares commenced operations on 5/25/12. Performance prior to that date is that of the Fund’s Class A shares (excluding sales charges), which had different operating expenses. Class R3, R4 and R5 shares commenced operations on 9/30/11. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company, using a different investment strategy and in pursuit of a different investment goal. As of April 23, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury bills publicly issued in the U.S. domestic markets with maturities of 90 days or less that assumes reinvestment of all income.

Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  32  

 


The Hartford Unconstrained Bond Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

Unconstrained Bond

   Class A      0.99%         1.17%   

Unconstrained Bond

   Class B      1.74%         2.08%   

Unconstrained Bond

   Class C      1.74%         1.86%   

Unconstrained Bond

   Class I      0.74%         0.77%   

Unconstrained Bond

   Class R3      1.29%         1.46%   

Unconstrained Bond

   Class R4      0.99%         1.15%   

Unconstrained Bond

   Class R5      0.69%         0.85%   

Unconstrained Bond

   Class Y      0.69%         0.73%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Campe Goodman, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Lucius T. Hill, III

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Joseph F. Marvan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Unconstrained Bond Fund returned 0.05%, before sales charge, for the six-month period ended April 30, 2015, underperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 2.06% for the same period. The Fund outperformed the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index, the Fund’s other benchmark, which returned 0.01% for the same period. The Fund also underperformed the 0.30% average return of the Lipper Alternative Credit Focus Funds peer group, a group of funds that invest in a wide-range of credit-structured vehicles by using either fundamental credit research analysis or quantitative credit portfolio modeling trying to benefit from any changes in credit quality, credit spreads, and market liquidity.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest

rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy suffered a weather-induced setback during the first quarter of 2015, while growth in Europe, Japan, and China also weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

 

 

 

  33  

 


The Hartford Unconstrained Bond Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Global government bond prices gained over the quarter as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns across the major fixed income sectors were positive as the decline in government bond yields offset the credit-spread widening in certain sectors such as high yield and emerging markets. However, credit-sensitive sectors generally underperformed duration-equivalent government bonds.

The Fund’s low duration positioning relative to the Barclays U.S. Aggregate Bond Index detracted from performance, as did an allocation to emerging markets local debt. Emerging markets exhibited very mixed performance during the period with U.S. dollar-denominated sovereign and corporate credit outperforming local markets. During the period, the Fund was underweight investment grade credit in favor of allocations to lower tier credit sectors. Within high yield, the use of high yield credit default swap index positions, which were used as a source of liquidity and to manage overall portfolio risk, detracted from performance. These factors were somewhat offset by allocations to bank loans and non-agency residential mortgage-backed securities (RMBS) and an overweight to commercial mortgage-backed securities (CMBS), which contributed to results during the period.

What is the outlook?

We believe that U.S. economic growth prospects remain favorable and that capacity constraints will pressure inflation higher. We are maintaining a moderately pro-cyclical risk stance in credit markets based on what we consider to be supportive monetary policy, positive credit fundamentals, and attractive valuations. We continue to maintain a positive outlook on global high yield based on what we consider to be generally solid fundamentals, a supportive U.S. macroeconomic environment, and appealing valuations. Within bank loans, we believe that overall credit fundamentals remain strong and that collateralized loan obligation (CLO) issuance will support loan demand. We are tactically positioning the portfolio within a duration range of 0 to 5 years as we believe over the medium-term having some duration exposure will generate attractive risk-adjusted returns, but are mindful of the likelihood of rising rates over the period. At the end of the period we maintained an emphasis on higher income-producing sectors such as bank loans, non-agency RMBS, high yield, and high quality CMBS and CLOs.

 

 

 

34

 


The Hartford World Bond Fund inception 05/31/2011

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks capital appreciation with income as a secondary goal.

 

LOGO

The chart above represents the hypothetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Return (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

World Bond A3

     0.55%         1.60%         3.89%   

World Bond A4

     -3.98%         -2.97%         2.68%   

World Bond C3

     0.19%         0.88%         3.12%   

World Bond C4

     -0.78%         -0.10%         3.12%   

World Bond I3

     0.67%         1.87%         4.16%   

World Bond R33

     0.39%         1.29%         3.54%   

World Bond R43

     0.46%         1.58%         3.86%   

World Bond R53

     0.68%         1.89%         4.15%   

World Bond R63,5

     0.72%         1.97%         4.25%   

World Bond Y3

     0.72%         1.97%         4.25%   

Citigroup World Government Bond Index

     -2.67%         -5.50%         -0.49%   

 

1  Not Annualized
2  Inception: 05/31/2011
3  Without sales charge
4  With sales charge
5  Inception: 11/07/2014. Cumulative returns not annualized.

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when

redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 4.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Class R6 shares commenced operations on 11/07/14. Performance prior to that date is that of the Fund’s Class Y shares, which had different operating expenses.

Citigroup World Government Bond Index includes the most significant and liquid government bond markets globally that carry at least an investment grade rating. Index weights are based on the market capitalization of qualifying outstanding debt stocks.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  35  

 


The Hartford World Bond Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

 

Operating Expenses*

 

            Net      Gross  

World Bond

   Class A      1.02%         1.02%   

World Bond

   Class C      1.76%         1.76%   

World Bond

   Class I      0.76%         0.76%   

World Bond

   Class R3      1.35%         1.39%   

World Bond

   Class R4      1.05%         1.07%   

World Bond

   Class R5      0.75%         0.79%   

World Bond

   Class R6      0.67%         0.67%   

World Bond

   Class Y      0.67%         0.67%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Robert L. Evans

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Mark H. Sullivan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford World Bond Fund returned 0.55%, before sales charge, for the six month period ended April 30, 2015, outperforming the Fund’s benchmark, the Citigroup World Government Bond Index, which returned -2.67% for the same period. The Fund also outperformed the -0.46% average return of the Lipper Global Income Funds peer group, a group of funds that invests primarily in U.S. dollar and non-U.S. dollar debt securities of issuers located in at least three countries, one of which may be the United States.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany;

however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

 

 

 

  36  

 


The Hartford World Bond Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note that the Fund is managed to seek capital appreciation and, secondly, income. For the six-month period, interest rate positioning and credit strategies contributed to, while currency positioning detracted from performance.

Currency strategies had negative performance. However, our continued high exposure to the U.S. dollar (USD) contributed strongly to performance relative to the Citigroup World Government Bond Index as most currencies declined versus the USD. In foreign exchange (FX) exposure, our limited allocation to European currencies as well as allocation to the dollar bloc currencies detracted on an absolute basis as these currencies depreciated against the USD. Within macro-driven currency strategies, our limited exposures in South Korean Won (KRW) and New Zealand Dollar (NZD) versus the Japanese Yen (JPY) and USD, based on our theme of competitive FX devaluation pressures in Asia Pacific economies, detracted from results. The KRW and NZD depreciated less during the fourth quarter of 2014 period of FX weakness while the JPY depreciated after the Bank of Japan (BOJ) surprised markets with its aggressive stimulus announcement. Our limited exposure to European currencies like the Euro (EUR), British Pound (GBP) and Swiss Franc (CHF) contributed to results as the USD appreciated driven by increasing monetary policy divergence. Limited exposure to the Australian Dollar (AUD) versus JPY, NZD, and USD was beneficial early in 2015 as Australia continues to be impacted by lower iron ore prices and terms of trade issues that may make future growth difficult, but detracted late in the period as People’s Bank of China (PBOC) policy loosening led to a rebound in iron-ore prices and in the Australian dollar.

Within the Fund’s country strategies, our core allocation to developed sovereign governments was a positive contributor as most sovereign yields declined driven by falling inflation and aggressive central bank easing. Within discretionary macro strategies, our overweight duration positions in Korea as well as front-end and intermediate U.K. rates contributed to performance, because the oil plunge raised worries about global growth and sovereign rates fell. In addition, overweight duration positions in Germany, Australia and U.K. contributed to performance as the ECB’s quantitative easing and a soft patch in U.S. data during the first quarter of 2015 sent yields lower. However, these positions slightly detracted during the month of April 2015 as most global government bond yields increased just prior to month-end in what appeared to be a technical-driven position unwinding across core markets. Quantitative country rotation strategies negatively affected performance during the period primarily driven by our long U.S. 10-year vs U.K. 10-year positions as spreads widened during the last quarter of 2014. However, our contrarian long U.S. 10-year vs U.K. 10-year and long Canada 10-year vs Australia 10-year positions contributed to total returns in 2015 as these spreads tightened considerably, led by rallies in the U.S. and Canada. In addition, long U.S. 10-year and 30-year versus Australia

10-year positions and long U.S. 30-year versus Canada 10-year positions also positively contributed to performance late in the period as spreads tightened further.

Within our credit strategies, our opportunistic allocations to securitized debt, high yield credit, and investment grade corporates all contributed to performance as continued liquidity provided by central banks around the world supported credit performance. Our exposure to the high yield sector was particularly beneficial because spreads tightened as investors flocked to the asset class to take advantage of more attractive valuations after the oil-driven sell-off in the fourth quarter of 2014.

The investment team makes use of derivatives in the portfolio, primarily liquid currency forwards and exchange-traded government bond futures but also in small part credit default swaps, index credit default swaps, interest rate, bond, index and currency futures or options in pursuit of the investment objective and in order to hedge against risk.

Our macro-driven duration strategies are primarily implemented through the use of exchange-traded government bond futures and cash bonds, which contributed to results. Our country rotation strategies, which are also implemented through exchange-traded government bond futures detracted from results. Our macro-driven currency strategies, which are implemented through currency forwards, detracted from results. Our credit positioning, which is implemented through the use of cash bonds, credit default swaps (index and single name), and interest rate swaps contributed to results.

What is the outlook?

We believe that global growth is sluggish but is likely to gradually improve. We believe that stabilization in commodity prices should lead to higher short-term inflation expectations. Recently, term premiums in select global sovereign markets like the U.S. have also begun to creep higher. We believe that U.S. gross domestic product (GDP) should rebound in the second quarter or third quarter of 2015 due to the lagged impact of lower oil prices and reversal of adverse weather conditions. The Fed is on a cautious path towards tightening in second half of the year, provided it is “reasonably confident” in its inflation forecasts. Core inflation remains steady with near-term downward pressure from imported goods but upward services inflation pressure. We expect U.S. core inflation to rise to 2% later this year.

The Euro area is expected to join the U.S. as a driver of global economic expansion due to favorable financial conditions, higher real income and rising consumer demand. A sustainable cycle means the EMU would no longer export disinflation and this would allow yields on the German bund and the global rate structure to rise further.

 

 

 

37

 


The Hartford World Bond Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

In Japan, inflation remains very low. Inflation leads and expectations have not fallen with oil partly due to a tight labor market. Meanwhile we believe that sub-trend growth and no inflation will push out BOJ rate hike expectations. Recent Chinese Politburo rhetoric is consistent with more fiscal and monetary easing. Australian macro-prudential policies and PBOC easing can be expected to delay but not reverse the underlying downward rate trajectory in Australia.

A gradual improvement in the developed market growth outlook, primarily driven by U.S. and Europe, is a positive development. However, a potential Fed rate hike and the Chinese slowdown may continue to pressure emerging markets economies. We feel that we need to see a synchronized improvement in labor markets and wages before global inflation can pick up in a sustainable manner. Consequently, major developed market interest rates should be stable and anchored by BOJ and ECB easing. We continue to manage duration on a tactical basis, with a bias to further reduce it, particularly if U.S. growth accelerates.

Medium term fundamentals appear to remain bullish for the U.S. dollar. Given the marked strengthening of the labor market, we believe the Fed is likely to start raising interest rates later this year. The uncertainty around the timing of a monetary tightening cycle is driven by the other part of the Fed’s inflation mandate. Although leading indicators suggest the U.S. recovery is broadening, a large deceleration in U.S. capital investment from the energy sector could slow the Fed, in addition to the low inflation concern. Primary risks to our USD view include further unwinding of USD long positions due to weaker-than-expected U.S. data releases. Rising German bond yields also exerts broad downward pressure on the dollar by aiding a recovery in European currencies. Finally, a rebound in Chinese growth could lift commodity prices further and reduce USD demand. Given these various countervailing factors, we cannot rule out the possibility of the dollar staying in a protracted sideways range after the powerful rally of the past year.

The Euro remains elevated given the size of Europe’s output gap and relative monetary policy. However, we believe shorter term dynamics are constructive for the Euro. We favor the Swedish Krona (SEK). Meanwhile, we believe the Yen is very cheap in real terms and Japan’s current account balance has also improved significantly. Policy differences still seem aligned to weaken the Yen further, but additional yen weakness is likely to be more gradual and limited. The outlook for the British Pound is mixed. Cyclical strength should be supportive but is likely to weigh on the currency in the near term. The sharp divergence in Australian and U.S. economic growth prospects points to a much weaker AUD. The weakness in the Chinese property sector and the sharp decline in commodity prices are consistent with a much lower Australian dollar as well. The Canadian economy is still contending with the lagged impacts of weak energy prices, but the Canadian Dollar should be supported by the strength in exports to the U.S. and the improvement in the larger non-energy sector.

We believe that emerging market currencies are likely to weaken further versus the U.S. dollar over the next two years. China is no longer offering economic leadership globally and commodity prices seem to be entrenched in a downward trend. The cyclical performance of emerging markets is disappointing expectations even as current account balances are deteriorating.

Our outlook for U.S. high-yield corporate bonds remains positive, based on what we believe are their generally solid fundamentals and appealing valuations, as well as a supportive U.S. macroeconomic environment. At period-end, we maintained our overweight to credit risk and favor lower rated names that offer an attractive risk/reward profile.

Within the commercial mortgage-backed securities sector, we favor new-issue deals at the top of the capital structure, AAA interest-only bonds, upper-tier single-borrower deals, and select legacy super senior and credit bonds, which should benefit from a strong recovery in commercial real estate. We remain positive on the non-agency residential mortgage-backed securities (RMBS) sector. We continue to expect home-price appreciation to moderate to more normal levels this year, but mid-single-digit gains should continue to support RMBS. We believe that mortgage-credit availability should continue to gradually expand, and looser credit standards should support the housing market, as should an eventual recovery in household formation.

 

 

 

38

 


Hartford Duration-Hedged Strategic Income Fund

 

 

 

Composition by Investments

as of April 30, 2015 (Unaudited)

 

Fund Name    Percentage of
Net Assets
 

The Hartford Strategic Income Fund

     96.1

BlackRock Liquidity Funds TempFund Portfolio

     2.4   

Other Assets & Liabilities

     1.5   
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

39

 


Hartford Duration-Hedged Strategic Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

        

Market Value*

 
AFFILIATED INVESTMENT COMPANIES - 96.1%  
      Taxable Fixed Income Funds - 96.1%         
  1,659,393     

The Hartford Strategic Income Fund

     $ 14,818,380   
      

 

 

 
 

Total Affiliated Investment Companies
(cost $15,208,499)

     $ 14,818,380   
      

 

 

 
 

Total Long-Term Investments
(cost $15,208,499)

     $ 14,818,380   
      

 

 

 
      
SHORT-TERM INVESTMENTS - 2.4%  
      Other Investment Pools & Funds - 2.4%         
  370,218     

BlackRock Liquidity Funds TempFund Portfolio

     $ 370,218   
      

 

 

 
 

Total Short-Term Investments
(cost $370,218)

     $ 370,218   
      

 

 

 
 

Total Investments
(cost $15,578,717) ^

    98.5    $ 15,188,598   
 

Other Assets and Liabilities

    1.5      237,835   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     15,426,433   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

40

 


Hartford Duration-Hedged Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $15,578,717 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 0   

Unrealized Depreciation

     (390,119
  

 

 

 

Net Unrealized Depreciation

   $     (390,119
  

 

 

 

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional Amount      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

U.S. Treasury 10-Year Note Future

     27         06/19/2015       $     3,448,706       $     3,466,125       $ (17,419

U.S. Treasury 2-Year Note Future

     14         06/30/2015         3,060,476         3,069,718         (9,242

U.S. Treasury 5-Year Note Future

     34         06/30/2015         4,063,467         4,084,516         (21,049

U.S. Treasury CME Ultra Long Term Bond Future

     2         06/19/2015         336,512         329,000         7,512   

U.S. Treasury Long Bond Future

     11         06/19/2015         1,780,223         1,755,531         24,692   
              

 

 

 

Total

               $ (15,506
              

 

 

 

Total futures contracts

               $     (15,506
              

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

41

 


Hartford Duration-Hedged Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)      Level 3  

Assets

         

Affiliated Investment Companies

   $ 14,818,380      $ 14,818,380      $       $   

Short-Term Investments

     370,218        370,218                  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $     15,188,598      $     15,188,598      $     —       $     —   
  

 

 

   

 

 

   

 

 

    

 

 

 

Futures Contracts (2)

   $ 32,204      $ 32,204      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ 32,204      $ 32,204      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Futures Contracts (2)

   $ (47,710   $ (47,710   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (47,710   $ (47,710   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

42

 


The Hartford Emerging Markets Local Debt Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     0.0

Aa / AA

     0.1   

A

     17.3   

Baa / BBB

     39.9   

Ba / BB

     11.4   

B

     5.5   

Caa / CCC or Lower

     1.4   

Not Rated

     16.4   

Non-Debt Securities and Other Short-Term Instruments

     4.1   

Other Assets & Liabilities

     3.9   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Corporate Bonds

     35.3

Foreign Government Obligations

     56.7   
  

 

 

 

Total

     92.0
  

 

 

 

Short-Term Investments

     4.0

Purchased Options

     0.1   

Other Assets & Liabilities

     3.9   
  

 

 

 

Total

     100.0
  

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

43

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3%      
            Argentina - 0.5%  
   

YPF S.A.

 
  $        1,450,000     

8.75%, 04/04/2024 (1)

  $ 1,513,220   
     

 

 

 
            Bahamas - 0.5%  
   

Intercorp Peru Ltd.

 
    1,500,000     

5.88%, 02/12/2025 (1)

    1,515,000   
     

 

 

 
            Barbados - 0.4%  
   

Columbus International, Inc.

 
    1,000,000     

7.38%, 03/30/2021 (2)

    1,088,750   
     

 

 

 
            Bermuda - 1.4%  
   

Digicel Group Ltd.

 
    405,000     

7.13%, 04/01/2022 (2)

    383,485   
    985,000     

7.13%, 04/01/2022 (1)

    932,672   
   

GCX Ltd.

 
    560,000     

7.00%, 08/01/2019 (1)

    566,359   
    200,000     

7.00%, 08/01/2019 (2)

    202,271   
   

Inkia Energy Ltd.

 
    1,180,000     

8.38%, 04/04/2021 (2)

    1,268,500   
   

Kosmos Energy Ltd.

 
    860,000     

7.88%, 08/01/2021 (1)

    834,200   
     

 

 

 
        4,187,487   
     

 

 

 
            Brazil - 0.4%  
   

Banco do Brasil S.A./Cayman Islands

 
    570,000     

9.00%, 06/18/2024 (2)(3)(4)

    527,250   
   

Votorantim Cimentos S.A.

 
    480,000     

7.25%, 04/05/2041 (2)

    494,400   
     

 

 

 
        1,021,650   
     

 

 

 
            British Virgin Islands - 2.8%  
   

CLP Power HK Finance Ltd.

 
    1,000,000     

4.25%, 11/07/2019 (2)(3)(4)

    1,027,500   
   

CNPC General Capital Ltd.

 
    1,000,000     

3.40%, 04/16/2023 (2)

    1,005,719   
   

FPC Treasury Ltd.

 
    1,030,000     

4.50%, 04/16/2023 (2)

    1,017,544   
   

HLP Finance Ltd.

 
    1,485,000     

4.75%, 06/25/2022 (2)

    1,555,622   
   

PCCW Capital No 4 Ltd.

 
    915,000     

5.75%, 04/17/2022 (2)

    1,010,774   
   

SmarTone Finance Ltd.

 
    1,700,000     

3.88%, 04/08/2023 (2)

    1,624,549   
   

Star Energy Geothermal Wayang Windu Ltd.

 
    940,000     

6.13%, 03/27/2020 (2)

    951,750   
     

 

 

 
        8,193,458   
     

 

 

 
            Canada - 0.3%  
   

Pacific Rubiales Energy Corp.

 
    1,090,000     

5.63%, 01/19/2025 (1)

    763,000   
     

 

 

 
            Cayman Islands - 3.7%  
   

Alliance Global Group, Inc.

 
    805,000     

6.50%, 08/18/2017 (2)

    859,337   
   

Comcel Trust via Comunicaciones Celulares S.A.

 
    800,000     

6.88%, 02/06/2024 (2)

    858,000   
    605,000     

6.88%, 02/06/2024 (1)

    648,863   
   

Emirates NBD Tier 1 Ltd.

 
    1,240,000     

5.75%, 05/30/2019 (2)(3)(4)

    1,234,048   
   

KWG Property Holding Ltd.

 
    765,000     

8.98%, 01/14/2019 (2)

    761,175   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3% - (continued)      
            Cayman Islands - 3.7% - (continued)  
   

Marfrig Overseas Ltd.

 
  $        425,000     

9.50%, 05/04/2020 (2)

  $ 415,438   
   

MIE Holdings Corp.

 
    200,000     

6.88%, 02/06/2018 (2)

    154,844   
    615,000     

7.50%, 04/25/2019 (1)

    448,950   
   

New World China Land Ltd.

 
    915,000     

5.38%, 11/06/2019 (2)

    955,151   
   

Odebrecht Offshore Drilling Finance Ltd.

 
    697,575     

6.75%, 10/01/2023 (2)

    601,868   
   

Semiconductor Manufacturing International Corp.

 
    940,000     

4.13%, 10/07/2019 (1)

    947,870   
    200,000     

4.13%, 10/07/2019 (2)

    201,674   
   

Shimao Property Holdings Ltd.

 
    1,025,000     

8.38%, 02/10/2022 (2)

    1,063,437   
   

UOB Cayman Ltd.

 
    800,000     

5.80%, 03/15/2016 (2)(3)(4)

    821,000   
   

Yuzhou Properties Co., Ltd.

 
    590,000     

8.63%, 01/24/2019 (2)

    584,082   
     

 

 

 
        10,555,737   
     

 

 

 
            Chile - 0.6%      
   

Cencosud S.A.

 
    750,000     

5.15%, 02/12/2025 (1)

    764,059   
   

Empresa Electrica Angamos S.A.

 
    655,000     

4.88%, 05/25/2029 (1)

    662,369   
    350,000     

4.88%, 05/25/2029 (2)

    353,938   
     

 

 

 
        1,780,366   
     

 

 

 
            China - 0.7%      
   

Bank of China Ltd.

 
  CNY        6,350,000     

6.75%, 10/23/2019 (2)(3)(4)

    1,088,329   
   

Industrial & Commercial Bank of China Ltd.

 
  $        965,000     

6.00%, 12/10/2019 (1)(3)(4)

    1,010,837   
     

 

 

 
        2,099,166   
     

 

 

 
            Colombia - 1.6%      
   

Banco de Bogota S.A.

 
    975,000     

5.38%, 02/19/2023 (2)

    1,016,632   
   

Colombia Telecomunicaciones S.A. ESP

 
    1,050,000     

8.50%, 03/30/2020 (1)(3)(4)

    1,081,500   
   

Emgesa S.A. ESP

 
  COP        2,406,000,000     

8.75%, 01/25/2021 (2)

    1,092,498   
   

Empresa de Energia de Bogota S.A. ESP

 
  $        910,000     

6.13%, 11/10/2021 (2)

    982,800   
   

Empresa de Telecomunicaciones de Bogota

 
  COP        280,000,000     

7.00%, 01/17/2023 (1)

    111,906   
   

Empresas Publicas de Medellin ESP

 
    448,000,000     

8.38%, 02/01/2021 (2)

    199,155   
     

 

 

 
        4,484,491   
     

 

 

 
            Hong Kong - 1.5%      
   

Bank of East Asia Ltd.

 
  $        1,105,000     

4.25%, 11/20/2024 (2)

    1,114,663   
   

CITIC Ltd.

 
    875,000     

8.63%, 11/22/2018 (2)(3)(4)

    1,010,625   
   

CRCC Yupeng Ltd.

 
    1,040,000     

3.95%, 08/01/2019 (2)(3)(4)

    1,069,952   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  44  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3% - (continued)      
            Hong Kong - 1.5% - (continued)      
   

Hero Asia Investment Ltd.

 
  $        1,000,000     

5.25%, 12/07/2015 (2)(3)(4)

  $ 1,009,579   
     

 

 

 
        4,204,819   
     

 

 

 
            India - 1.8%      
   

ICICI Bank Ltd.

 
    690,000     

6.38%, 04/30/2022 (2)(4)

    719,325   
    265,000     

6.38%, 04/30/2022 (2)(4)

    276,263   
   

Indian Oil Corp. Ltd.

 
    960,000     

5.75%, 08/01/2023 (2)

    1,071,497   
   

NTPC Ltd.

 
    200,000     

4.38%, 11/26/2024 (2)

    208,991   
    920,000     

4.75%, 10/03/2022 (2)

    987,230   
   

ONGC Videsh Ltd.

 
    1,060,000     

3.75%, 05/07/2023 (2)

    1,053,838   
   

Reliance Industries Ltd.

 
    1,015,000     

4.88%, 02/10/2045 (1)

    964,197   
     

 

 

 
        5,281,341   
     

 

 

 
            Ireland - 0.4%  
   

Vnesheconombank Via VEB Finance PLC

 
    1,120,000     

6.90%, 07/09/2020 (2)

    1,072,400   
     

 

 

 
            Israel - 0.5%  
   

Israel Electric Corp. Ltd.

 
    1,210,000     

9.38%, 01/28/2020 (2)

    1,548,800   
     

 

 

 
            Jersey - 0.4%  
   

West China Cement Ltd.

 
    1,075,000     

6.50%, 09/11/2019 (2)

    1,073,554   
     

 

 

 
            Kazakhstan - 0.9%  
   

Halyk Savings Bank of Kazakhstan JSC

 
    1,080,000     

7.25%, 01/28/2021 (2)

    1,103,220   
   

Kazakhstan Temir Zholy Finance B.V.

 
    505,000     

6.38%, 10/06/2020 (2)

    533,381   
   

Nostrum Oil & Gas Finance B.V.

 
    575,000     

6.38%, 02/14/2019 (1)

    547,687   
    425,000     

6.38%, 02/14/2019 (2)

    404,813   
     

 

 

 
        2,589,101   
     

 

 

 
            Luxembourg - 2.7%  
   

Altice Finco S.A.

 
    955,000     

8.13%, 01/15/2024 (2)

    1,005,137   
   

European Investment Bank

 
  ZAR        475,000     

8.76%, 12/31/2018 (5)

    30,402   
   

Gazprom Neft OAO Via GPN Capital S.A.

 
  $        1,050,000     

4.38%, 09/19/2022 (2)

    889,875   
   

Millicom International Cellular S.A.

 
    1,035,000     

6.00%, 03/15/2025 (1)

    1,047,937   
   

Offshore Drilling Holding S.A.

 
    1,230,000     

8.63%, 09/20/2020 (2)

    1,082,400   
   

Petrobras Global Finance B.V.

 
    795,000     

5.38%, 01/27/2021

    763,041   
   

Sberbank of Russia Via SB Capital S.A.

 
    1,890,000     

5.13%, 10/29/2022 (2)

    1,568,700   
   

VTB Bank OJSC Via VTB Capital S.A.

 
    1,565,000     

6.95%, 10/17/2022 (2)

    1,434,448   
     

 

 

 
        7,821,940   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3% - (continued)      
            Mauritius - 0.3%  
   

MTN Mauritius Investments Ltd.

 
  $        820,000     

4.76%, 11/11/2024 (1)

  $ 842,681   
     

 

 

 
            Mexico - 3.0%  
   

Alpek S.A.B. de C.V.

 
    345,000     

5.38%, 08/08/2023 (1)

    372,600   
    450,000     

5.38%, 08/08/2023 (2)

    486,000   
   

BBVA Bancomer S.A./Grand Cayman

 
    1,390,000     

6.01%, 05/17/2022 (2)

    1,454,287   
   

Credito Real S.A.B. de C.V.

 
    1,020,000     

7.50%, 03/13/2019 (2)

    1,076,100   
   

Empresas ICA S.A.B. de C.V.

 
    695,000     

8.88%, 05/29/2024 (1)

    606,388   
    230,000     

8.88%, 05/29/2024 (2)

    200,675   
   

Mexichem S.A.B. de C.V.

 
    1,000,000     

6.75%, 09/19/2042 (2)

    1,092,500   
   

Petroleos Mexicanos

 
  MXN        37,500,000     

7.47%, 11/12/2026

    2,345,082   
   

Tenedora Nemak S.A. de C.V.

 
  $        970,000     

5.50%, 02/28/2023 (2)

    1,018,597   
     

 

 

 
        8,652,229   
     

 

 

 
            Morocco - 0.3%  
   

OCP S.A.

 
    920,000     

6.88%, 04/25/2044 (2)

    1,009,930   
     

 

 

 
            Netherlands - 2.8%  
   

Bharti Airtel International Netherlands B.V.

 
    1,085,000     

5.13%, 03/11/2023 (2)

    1,175,597   
   

CIMPOR Financial Operations B.V.

 
    685,000     

5.75%, 07/17/2024 (1)

    619,925   
   

FBN Finance Co. B.V.

 
    565,000     

8.00%, 07/23/2021 (1)(4)

    526,863   
    360,000     

8.25%, 08/07/2020 (2)(4)

    342,900   
   

GTB Finance B.V.

 
    550,000     

6.00%, 11/08/2018 (2)

    530,860   
   

ICTSI Treasury B.V.

 
    1,385,000     

5.88%, 09/17/2025 (2)

    1,468,450   
   

Listrindo Capital B.V.

 
    890,000     

6.95%, 02/21/2019 (2)

    938,950   
   

Petrobras Global Finance B.V.

 
    40,000     

4.88%, 03/17/2020

    38,539   
    220,000     

5.63%, 05/20/2043

    181,720   
    530,000     

5.75%, 01/20/2020

    528,675   
    215,000     

6.75%, 01/27/2041

    198,325   
   

VTR Finance B.V.

 
    700,000     

6.88%, 01/15/2024 (1)

    724,290   
    850,000     

6.88%, 01/15/2024 (2)

    879,495   
     

 

 

 
        8,154,589   
     

 

 

 
            Nigeria - 0.1%  
   

Access Bank PLC

 
    300,000     

9.25%, 06/24/2021 (2)

    285,060   
     

 

 

 
            Peru - 1.2%  
   

Banco de Credito del Peru/Panama

 
    786,000     

6.88%, 09/16/2026 (2)(4)

    893,093   
   

Banco Internacional del Peru SAA

 
    130,000     

6.63%, 03/19/2029 (1)(4)

    141,050   
    1,235,000     

6.63%, 03/19/2029 (2)(4)

    1,339,975   
   

Union Andina de Cementos SAA

 
    850,000     

5.88%, 10/30/2021 (1)

    864,875   
    150,000     

5.88%, 10/30/2021 (2)

    152,625   
     

 

 

 
        3,391,618   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

45

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3% - (continued)      
            Philippines - 0.4%  
   

SM Investments Corp.

 
  $        1,020,000     

4.88%, 06/10/2024 (2)

  $ 1,026,016   
     

 

 

 
            Singapore - 1.1%  
   

ABJA Investment Co. Pte Ltd.

 
    1,025,000     

5.95%, 07/31/2024 (2)

    1,061,959   
   

Theta Capital Pte Ltd.

 
    740,000     

6.13%, 11/14/2020 (2)

    750,000   
   

United Overseas Bank Ltd.

 
    1,195,000     

3.75%, 09/19/2024 (2)

    1,233,312   
     

 

 

 
        3,045,271   
     

 

 

 
            South Africa - 0.0%  
   

Eskom Holdings SOC Ltd.

 
  ZAR        2,060,000     

10.63%, 08/18/2027 (5)

    38,486   
    700,000     

10.73%, 12/31/2032 (5)

    7,441   
   

Transnet SOC Ltd.

 
    1,000,000     

10.00%, 03/30/2029 (2)

    80,725   
     

 

 

 
        126,652   
     

 

 

 
            South Korea - 0.9%  
   

SK E&S Co., Ltd.

 
  $        650,000     

4.88%, 11/26/2019 (1)(3)(4)

    648,375   
    410,000     

4.88%, 11/26/2019 (2)(3)(4)

    408,975   
   

Woori Bank

 
    1,305,000     

4.75%, 04/30/2024 (1)

    1,385,772   
    200,000     

4.75%, 04/30/2024 (2)

    212,379   
     

 

 

 
        2,655,501   
     

 

 

 
            Thailand - 1.0%      
   

Krung Thai Bank PCL/Cayman Islands

 
    700,000     

5.20%, 12/26/2024 (2)

    728,956   
   

Krung Thai Bank PCL/Singapore

 
    450,000     

7.38%, 10/10/2016 (2)(3)(4)

    466,238   
   

PTT Exploration & Production PCL

 
    1,350,000     

4.88%, 06/18/2019 (1)(3)(4)

    1,363,500   
    200,000     

4.88%, 12/29/2049 (2)(3)

    202,000   
     

 

 

 
        2,760,694   
     

 

 

 
            Turkey - 1.7%      
   

Turkiye Is Bankasi

 
    1,010,000     

6.00%, 10/24/2022 (2)

    1,001,163   
   

Turkiye Sinai Kalkinma Bankasi A/S

 
    1,125,000     

5.38%, 10/30/2019 (2)

    1,143,281   
   

Turkiye Vakiflar Bankasi TAO

 
    1,310,000     

6.88%, 02/03/2025 (1)(4)

    1,296,900   
   

Yasar Holdings A/S

 
    1,470,000     

8.88%, 05/06/2020 (1)

    1,541,148   
     

 

 

 
        4,982,492   
     

 

 

 
            United Kingdom - 0.6%      
   

European Bank for Reconstruction & Development

 
  ZAR        550,000     

8.76%, 12/31/2020 (5)

    30,349   
   

Standard Bank PLC

 
  $        700,000     

8.13%, 12/02/2019 (2)

    799,050   
   

Tullow Oil PLC

 
    975,000     

6.25%, 04/15/2022 (2)

    892,125   
     

 

 

 
        1,721,524   
     

 

 

 
            United States - 0.8%      
   

Braskem America Finance Co.

 
    510,000     

7.13%, 07/22/2041 (2)

    490,875   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 35.3% - (continued)      
            United States - 0.8% - (continued)  
   

Cemex Finance LLC

 
  $        905,000     

9.38%, 10/12/2022 (2)

  $ 1,030,342   
   

Southern Copper Corp.

 
    730,000     

6.75%, 04/16/2040

    788,404   
     

 

 

 
        2,309,621   
     

 

 

 
   

Total Corporate Bonds
(cost $101,518,040)

  $ 101,758,158   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 56.7%      
            Argentina - 0.2%      
   

City of Buenos Aires Argentina

 
    585,000     

8.95%, 02/19/2021 (1)

  $ 625,950   
     

 

 

 
            Brazil - 7.4%      
   

Brazil Notas do Tesouro Nacional Series B

 
  BRL        634,118     

6.00%, 08/15/2030 (6)

    209,856   
    3,196,795     

6.00%, 08/15/2050 (6)

    1,052,500   
   

Brazil Notas do Tesouro Nacional Series F

 
    16,934,000     

10.00%, 01/01/2018

    5,251,129   
    26,220,000     

10.00%, 01/01/2021

    7,775,828   
    18,682,000     

10.00%, 01/01/2023

    5,410,307   
    5,605,000     

10.00%, 01/01/2025

    1,652,543   
     

 

 

 
        21,352,163   
     

 

 

 
            Bulgaria - 0.3%      
   

Bulgaria Government International Bond

 
  EUR        680,000     

2.95%, 09/03/2024 (2)

    802,669   
     

 

 

 
            Chile - 0.1%      
   

Chile Government International Bond

 
  CLP        82,500,000     

5.50%, 08/05/2020

    144,491   
     

 

 

 
            Colombia - 7.0%      
   

Colombian TES

 
  COP        8,958,776,055     

3.50%, 03/10/2021 (6)

    3,884,859   
    1,123,398,930     

4.25%, 05/17/2017 (6)

    495,571   
    5,671,700,000     

6.00%, 04/28/2028

    2,123,142   
  $        262,900,000     

7.00%, 05/04/2022

    114,140   
    3,305,400,000     

7.25%, 06/15/2016

    1,423,737   
    2,178,500,000     

7.50%, 08/26/2026

    946,867   
    4,235,000,000     

7.75%, 09/18/2030

    1,824,634   
    18,146,100,000     

10.00%, 07/24/2024

    9,297,751   
     

 

 

 
        20,110,701   
     

 

 

 
            Hungary - 1.4%  
   

Hungary Government Bond

 
  HUF        456,440,000     

5.50%, 12/22/2016

    1,787,117   
    310,550,000     

6.75%, 02/24/2017

    1,248,183   
    227,880,000     

7.50%, 11/12/2020

    1,031,644   
     

 

 

 
        4,066,944   
     

 

 

 
            Indonesia - 8.2%  
   

Indonesia Treasury Bond

 
  IDR        19,412,000,000     

6.63%, 05/15/2033

    1,291,637   
    22,065,000,000     

7.00%, 05/15/2027

    1,589,021   
    42,017,000,000     

7.88%, 04/15/2019

    3,270,600   
    14,669,000,000     

8.25%, 06/15/2032

    1,151,453   
    150,421,000,000     

8.38%, 03/15/2024

    12,097,504   
    30,485,000,000     

8.38%, 03/15/2034

    2,428,217   
    23,046,000,000     

9.00%, 03/15/2029

    1,942,353   
     

 

 

 
        23,770,785   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

46

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 56.7% - (continued)      
            Malaysia - 5.2%  
   

Malaysia Government Bond

 
  MYR        3,920,000     

3.58%, 09/28/2018

  $ 1,105,303   
    6,770,000     

3.65%, 10/31/2019

    1,906,644   
    5,765,000     

3.84%, 04/15/2033

    1,552,387   
    745,000     

3.89%, 07/31/2020

    211,393   
    16,725,000     

4.05%, 09/30/2021

    4,767,848   
    2,700,000     

4.18%, 07/15/2024

    775,711   
    3,911,000     

4.26%, 09/15/2016

    1,113,671   
    11,615,000     

4.50%, 04/15/2030

    3,425,667   
     

 

 

 
        14,858,624   
     

 

 

 
            Mexico - 4.8%  
   

Mexican Bonos

 
  MXN        8,544,600     

7.50%, 06/03/2027

    619,334   
    22,237,400     

10.00%, 12/05/2024

    1,877,211   
    20,078,600     

10.00%, 11/20/2036

    1,853,372   
   

Mexican Udibonos

 
    754,249     

2.00%, 06/09/2022 (6)

    46,983   
    58,844,213     

2.50%, 12/10/2020 (6)

    3,829,476   
    34,107,596     

4.00%, 06/13/2019 (6)

    2,379,482   
    32,307,815     

4.00%, 11/15/2040 (6)

    2,312,696   
    10,115,128     

4.50%, 11/22/2035 (6)

    776,687   
     

 

 

 
        13,695,241   
     

 

 

 
            Nigeria - 0.3%  
   

Nigeria Government Bond

 
  NGN        169,550,000     

14.20%, 03/14/2024

    864,364   
     

 

 

 
            Peru - 1.4%  
   

Peru Government Bond

 
  PEN        1,495,000     

5.70%, 08/12/2024

    471,022   
    2,143,000     

6.85%, 02/12/2042

    682,266   
    1,995,000     

6.90%, 08/12/2037

    647,650   
    5,950,000     

6.95%, 08/12/2031

    1,966,221   
    684,000     

8.20%, 08/12/2026

    255,243   
     

 

 

 
        4,022,402   
     

 

 

 
            Poland - 5.3%  
   

Poland Government Bond

 
  PLN        600,000     

2.50%, 07/25/2018

    169,173   
    12,100,000     

3.25%, 07/25/2025

    3,538,389   
    14,855,000     

4.00%, 10/25/2023

    4,573,467   
    20,300,000     

4.75%, 10/25/2016

    5,890,398   
    1,615,000     

5.75%, 09/23/2022

    547,239   
  $        1,325,000     

5.75%, 04/25/2029

    491,963   
     

 

 

 
        15,210,629   
     

 

 

 
            Romania - 1.3%  
   

Romania Government Bond

 
  RON        1,640,000     

5.80%, 07/26/2027

    507,113   
    4,150,000     

5.95%, 06/11/2021

    1,236,359   
    2,700,000     

6.75%, 06/11/2017

    755,355   
   

Romanian Government International Bond

 
  EUR        105,000     

2.88%, 10/28/2024 (2)

    126,300   
    345,000     

3.63%, 04/24/2024 (2)

    438,353   
    590,000     

4.63%, 09/18/2020 (2)

    771,195   
     

 

 

 
        3,834,675   
     

 

 

 
            Russia - 3.3%  
   

Russian Federal Bond - OFZ

 
  RUB        9,635,000     

7.00%, 01/25/2023

    152,447   
    70,710,000     

7.00%, 08/16/2023

    1,102,477   

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 56.7% - (continued)      
            Russia - 3.3% - (continued)  
  RUB        17,105,000     

7.00%, 08/16/2023

  $ 266,693   
    224,150,000     

7.05%, 01/19/2028

    3,329,396   
    18,650,000     

7.60%, 07/20/2022

    307,937   
    257,931,000     

8.15%, 02/03/2027

    4,281,324   
     

 

 

 
        9,440,274   
     

 

 

 
            Slovenia - 0.6%  
   

Slovenia Government Bond

 
  EUR        700,000     

4.63%, 09/09/2024 (2)

    1,017,172   
   

Slovenia Government International Bond

 
  $        525,000     

5.85%, 05/10/2023 (2)

    621,936   
     

 

 

 
        1,639,108   
     

 

 

 
            South Africa - 4.8%  
   

South Africa Government Bond

 
  ZAR        27,517,218     

6.25%, 03/31/2036

    1,800,758   
    5,410,000     

6.50%, 02/28/2041

    357,400   
    5,630,000     

6.75%, 03/31/2021

    455,369   
    42,500,000     

7.00%, 02/28/2031

    3,128,486   
    54,745,000     

8.00%, 01/31/2030

    4,450,008   
    22,200,000     

8.25%, 03/31/2032

    1,830,943   
    5,940,000     

8.50%, 01/31/2037

    494,685   
    14,765,000     

8.75%, 02/28/2048

    1,257,655   
     

 

 

 
        13,775,304   
     

 

 

 
            Thailand - 1.1%  
   

Thailand Government Bond

 
  THB        53,185,000     

3.63%, 06/16/2023

    1,756,412   
    11,370,000     

3.78%, 06/25/2032

    364,256   
    16,225,000     

3.85%, 12/12/2025

    553,644   
    16,905,000     

4.88%, 06/22/2029

    635,977   
     

 

 

 
        3,310,289   
     

 

 

 
            Turkey - 3.7%  
   

Turkey Government Bond

 
  TRY        1,719,738     

2.50%, 05/04/2016 (6)

    641,861   
    497,782     

3.00%, 01/06/2021 (6)

    192,680   
    2,996,284     

3.00%, 02/23/2022 (6)

    1,163,714   
    1,141,681     

4.00%, 04/01/2020 (6)

    460,713   
    1,595,000     

8.00%, 03/12/2025

    553,231   
    2,970,000     

8.50%, 07/10/2019

    1,076,828   
    6,350,000     

8.80%, 09/27/2023

    2,318,941   
    305,000     

9.00%, 01/27/2016

    113,151   
    6,170,000     

9.00%, 07/24/2024

    2,297,070   
    4,600,000     

10.40%, 03/20/2024

    1,850,258   
     

 

 

 
        10,668,447   
     

 

 

 
            Uruguay - 0.3%  
   

Uruguay Government International Bond

 
  UYU        18,054,215     

3.70%, 06/26/2037 (6)

    608,665   
  $        8,218,131     

4.38%, 12/15/2028 (6)

    311,868   
     

 

 

 
        920,533   
     

 

 

 
   

Total Foreign Government Obligations
(cost $178,212,808)

  $ 163,113,593   
     

 

 

 
   

Total Long-Term Investments
(cost $279,730,848)

  $ 264,871,751   
     

 

 

 
     
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 4.0%  
            Other Investment Pools & Funds - 4.0%  
  $        11,540,024     

BlackRock Liquidity Funds TempFund Portfolio

  $ 11,540,024   
     

 

 

 
   

Total Short-Term Investments
(cost $11,540,024)

  $ 11,540,024   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $291,270,872)

    96.0    $ 276,411,775   
   

Total Purchased Options
(cost $558,285)

    0.1    $ 431,462   
     

 

 

    

 

 

 
   

Total Investments
(cost $291,829,157) ^

    96.1    $ 276,843,237   
   

Other Assets and Liabilities

    3.9      11,122,778   
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 287,966,015   
     

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

48

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $292,570,891 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 2,780,785   

Unrealized Depreciation

     (18,508,439
  

 

 

 

Net Unrealized Depreciation

   $     (15,727,654
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $25,920,943, which represents 9.0% of total net assets.

 

(2)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $75,290,326, which represents 26.2% of total net assets.

 

(3)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(4)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(5)  The interest rate disclosed for these holdings are the effective yield on the date of the acquisition.

 

(6)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

 

 

  Counter-
party
    Exercise Price/
FX Rate/Rate
    Expiration
Date
    Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

  

             

Calls

                 

USD Call/PEN Put

      CBK        3.30 USD per PEN        01/20/16        USD        3,087,000      $ 56,424      $ 34,096      $ 22,328   
           

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                 

EUR Put/BRL Call

      JPM        3.42 EUR per BRL        09/24/15        EUR        2,825,000      $ 81,588      $ 83,087      $ (1,499

EUR Put/MXN Call

      BOA        16.27 EUR per MXN        10/13/15        EUR        2,795,000        13,451        74,664        (61,213

EUR Put/MXN Call

      JPM        16.40 EUR per MXN        10/20/15        EUR        5,080,000        32,622        105,761        (73,139

EUR Put/PLN Call

      DEUT        4.13 EUR per PLN        05/06/15        EUR        2,217,000        46,011        28,910        17,101   

EUR Put/PLN Call

      DEUT        4.04 EUR per PLN        05/06/15        EUR        2,298,000        5,746        26,966        (21,220

EUR Put/PLN Call

      UBS        4.00 EUR per PLN        10/23/15        EUR        2,785,000        35,233        44,695        (9,462

USD Put/IDR Call

      DEUT        13,145.00 USD per IDR        09/17/15        USD        2,982,000        44,486        40,526        3,960   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

              20,982,000      $ 259,137      $ 404,609      $ (145,472
           

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

  

    24,069,000      $     315,561      $     438,705      $     (123,144
           

 

 

   

 

 

   

 

 

   

 

 

 

Written option contracts:

                 

Calls

                 

EUR Call/USD Put

      JPM        1.10 EUR per USD        07/15/15        EUR        (5,555,000   $ (223,069   $ (46,197   $ (176,872
           

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                 

EUR Put/BRL Call

      GSC        3.26 EUR per BRL        05/12/15        EUR        (2,825,000   $ (7,162   $ (54,409   $ 47,247   

EUR Put/PLN Call

      UBS        4.00 EUR per PLN        05/25/15        EUR        (2,785,000     (9,235     (20,577     11,342   

EUR PutMXN Call

      BOA        16.27 EUR per MXN        05/13/15        EUR        (2,795,000     (95     (32,882     32,787   

EUR PutMXN Call

      JPM        16.00 EUR per MXN        10/20/15        EUR        (5,080,000     (16,120     (56,562     40,442   

USD Put/IDR Call

      BOA        12,820.00 USD per IDR        05/19/15        USD        (2,993,000     (7,626     (22,058     14,432   

USD Put/PEN Call

      CBK        3.05 USD per PEN        01/20/16        USD        (3,087,000     (6,241     (19,278     13,037   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

              (19,565,000   $ (46,479   $ (205,766   $ 159,287   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

              (25,120,000   $     (269,548   $     (251,963   $     (17,585
           

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

49

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
    Expiration
Date
     Number of
Contracts
     Market
Value*
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased swaption contracts:

  

             

Calls

                     

Interest Rate Swaption KRW

     BOA         2.60     11/25/16         KRW        1,034,545,000       $ 26,168       $ 19,353       $ 6,815   

Interest Rate Swaption KRW

     CBK         2.56     12/05/16         KRW        2,069,095,000         47,679         40,438         7,241   
            

 

 

    

 

 

    

 

 

    

 

 

 

Total Calls

               3,103,640,000       $ 73,847       $ 59,791       $ 14,056   
            

 

 

    

 

 

    

 

 

    

 

 

 

Puts

                     

Interest Rate Swaption KRW

     BOA         2.60     11/25/16         KRW        1,034,545,000       $ 12,971       $ 19,352       $ 6,381   

Interest Rate Swaption KRW

     CBK         2.56     12/05/16         KRW        2,069,095,000         29,083         40,437         11,354   
            

 

 

    

 

 

    

 

 

    

 

 

 

Total Puts

               3,103,640,000       $ 42,054       $ 59,789       $ 17,735   
            

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased swaption contracts

               6,207,280,000       $     115,901       $     119,580       $     (3,679
            

 

 

    

 

 

    

 

 

    

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

Euro-Bund Future

     14         06/08/2015       $ 2,464,123       $ 2,463,307       $ 816   

U.S. Treasury 10-Year Note Future

     79         06/19/2015             10,112,697             10,141,625             (28,928

U.S. Treasury Long Bond Future

     11         06/19/2015         1,779,364         1,755,532         23,832   
              

 

 

 

Total

               $ (4,280
              

 

 

 

Total futures contracts

               $ (4,280
              

 

 

 

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments
made
by Fund
   Payments
received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

BOA

   1M MXN TIIE    6.64% Fixed      MXN         15,975,000         12/06/23       $       $       $ 52,255      $ 52,255   

BOA

   5.19% Fixed    3M Banco Central De
La Republica
     COP         1,202,275,000         12/16/19                         (5,021     (5,021

DEUT

   5.18% Fixed    3M Banco Central De
La Republica
     COP         1,354,240,000         12/16/19                         (5,410     (5,410

JPM

   5.19% Fixed    3M Banco Central De
La Republica
     COP         1,806,225,000         12/16/19                         (7,544     (7,544

JPM

   5.25% Fixed    3M Banco Central De
La Republica
     COP         2,197,870,000         12/16/19                         (14,716     (14,716

JPM

   5.24% Fixed    3M Banco Central De
La Republica
     COP         2,106,949,142         12/17/19                         (10,669     (10,669

JPM

   2.39% Fixed    3M KRW CD KSDA      KRW         602,600,000         02/24/27                         3,595        3,595   

GSC

   7.40% Fixed    3M ZAR JIBAR      ZAR         487,920,000         03/30/17                         7,919        7,919   

GSC

   3M ZAR JIBAR    6.79% Fixed      ZAR         487,920,000         03/30/16                         75,781        75,781   

JPM

   3M ZAR JIBAR    8.02% Fixed      ZAR         2,185,000         09/18/23                         3,026        3,026   

GSC

   3M ZAR JIBAR    7.00% Fixed      ZAR         7,109,000         08/21/27                         (49,661     (49,661

GSC

   2.46% Fixed    6M HUF BUBOR      HUF         321,000,000         03/13/20                         (13,586     (13,586

CBK

   6M INR MIBOR    6.66% Fixed      INR         151,775,000         02/20/20                         (25,018     (25,018

DEUT

   6M INR MIBOR    6.80% Fixed      INR         150,195,000         03/04/20                         16,856        16,856   

DEUT

   6M PLN WIBOR    2.28% Fixed      PLN         1,280,000         06/17/25                         (3,848     (3,848

DEUT

   6M PLN WIBOR    2.14% Fixed      PLN         1,600,000         06/17/25                         (10,445     (10,445

DEUT

   6M THBFIX    1.82% Fixed      THB         92,225,000         09/17/24                             297,496            297,496   

MSC

   11.46% Fixed    BZDIOVRA      BRL         5,356,245         01/04/21                         108,983        108,983   

DEUT

   BZDIOVRA    10.61% Fixed      BRL         346,687         01/02/17                         (740     (740

DEUT

   BZDIOVRA    10.49% Fixed      BRL         333,245         01/02/17                         (1,539     (1,539

DEUT

   BZDIOVRA    10.55% Fixed      BRL         692,024         01/02/17                         (2,374     (2,374

 

The accompanying notes are an integral part of these financial statements.

 

 

  50  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015 - (continued)  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

GSC

   BZDIOVRA    9.03% Fixed      BRL         2,176,869         01/02/17       $       $       $ (68,418   $ (68,418

DEUT

   BZDIOVRA    9.12% Fixed      BRL         7,874,558         01/02/17                         (262,086     (262,086

BOA

   BZDIOVRA    12.32% Fixed      BRL         9,539,180         01/02/18                         (52,262     (52,262

BOA

   BZDIOVRA    12.01% Fixed      BRL         9,688,424         01/02/18                         (83,631     (83,631

BOA

   BZDIOVRA    8.95% Fixed      BRL         1,872,880         01/02/23                         (205,668     (205,668
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $     —       $     —       $     (256,725   $     (256,725
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      06/17/15       CBA    $ 265,191       $ 272,280       $ 7,089   

AUD

   Buy      06/17/15       SCB      147,815         146,005         (1,810

AUD

   Sell      06/17/15       CBA      945,464         970,738         (25,274

AUD

   Sell      06/17/15       CBK      1,963,130         2,051,966         (88,836

BRL

   Buy      05/04/15       MSC      211,235         206,541         (4,694

BRL

   Buy      05/06/15       MSC      1,658,238         1,656,890         (1,348

BRL

   Buy      05/14/15       GSC      1,313,796         1,345,697         31,901   

BRL

   Buy      06/02/15       MSC      1,708,721         1,859,533         150,812   

BRL

   Buy      06/02/15       MSC      1,435,826         1,530,473         94,647   

BRL

   Buy      06/02/15       MSC      678,144         743,092         64,948   

BRL

   Buy      06/02/15       MSC      663,564         725,047         61,483   

BRL

   Buy      06/02/15       MSC      1,010,088         1,057,716         47,628   

BRL

   Buy      06/02/15       MSC      1,070,033         1,113,817         43,784   

BRL

   Buy      06/02/15       HSBC      785,190         824,455         39,265   

BRL

   Buy      06/02/15       UBS      681,896         716,845         34,949   

BRL

   Buy      06/02/15       MSC      292,734         300,189         7,455   

BRL

   Buy      06/02/15       JPM      313         328         15   

BRL

   Buy      06/02/15       UBS      574,508         554,449         (20,059

BRL

   Buy      06/02/15       JPM      1,248,985         1,210,600         (38,385

BRL

   Buy      06/02/15       UBS      3,683,853         3,602,272         (81,581

BRL

   Buy      06/02/15       UBS      13,196,446         12,767,067         (429,379

BRL

   Sell      05/14/15       BCLY      2,777,319         2,777,253         66   

BRL

   Sell      06/02/15       UBS          10,666,350             10,319,294              347,056   

BRL

   Sell      06/02/15       MSC      209,026         204,063         4,963   

BRL

   Sell      06/02/15       MSC      1,641,727         1,637,754         3,973   

BRL

   Sell      06/02/15       GSC      2,291,039         2,288,328         2,711   

BRL

   Sell      06/02/15       MSC      173,792         184,051         (10,259

BRL

   Sell      06/02/15       MSC      392,568         411,078         (18,510

BRL

   Sell      06/02/15       MSC      568,914         593,817         (24,903

BRL

   Sell      06/02/15       UBS      839,534         866,119         (26,585

BRL

   Sell      06/02/15       MSC      1,187,794         1,248,984         (61,190

BRL

   Sell      06/02/15       MSC      931,737         1,020,972         (89,235

BRL

   Sell      06/02/15       MSC      2,231,890         2,330,978         (99,088

BRL

   Sell      06/17/15       MSC      449,057         432,217         16,840   

CAD

   Buy      06/17/15       TDB      975,159             1,018,803         43,644   

CAD

   Sell      06/17/15       TDB      2,342,760         2,447,613         (104,853

CLP

   Buy      06/17/15       SCB      1,162,918         1,201,738         38,820   

CLP

   Buy      06/17/15       DEUT      1,163,468         1,201,738         38,270   

CLP

   Buy      06/17/15       BOA      2,363,330         2,397,796         34,466   

CLP

   Buy      06/17/15       SSG      2,973,846         2,997,855         24,009   

CLP

   Sell      06/17/15       SCB      643,239         646,443         (3,204

CLP

   Sell      06/17/15       DEUT      2,078,941         2,147,323         (68,382

CLP

   Sell      06/17/15       SCB      2,077,959         2,147,324         (69,365

CNH

   Buy      06/17/15       BCLY      286,011         286,737         726   

CNH

   Sell      06/17/15       JPM      5,457,934         5,565,887         (107,953

 

The accompanying notes are an integral part of these financial statements.

 

 

  51  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

COP

   Buy      06/17/15       UBS    $ 2,477,131       $ 2,726,889       $ 249,758   

COP

   Buy      06/17/15       JPM      1,436,418         1,601,506         165,088   

COP

   Buy      06/17/15       BOA      1,309,483         1,442,798         133,315   

COP

   Buy      06/17/15       SCB      1,748,924         1,859,659         110,735   

COP

   Buy      06/17/15       CSFB      939,396         1,041,688         102,292   

COP

   Buy      06/17/15       SCB      1,527,925         1,609,821         81,896   

COP

   Buy      06/17/15       SSG      1,506,683         1,564,142         57,459   

COP

   Buy      06/17/15       SCB      1,040,175         1,092,885         52,710   

COP

   Sell      06/17/15       SCB      79,397         85,843         (6,446

COP

   Sell      06/17/15       SCB      604,919         611,555         (6,636

COP

   Sell      06/17/15       GSC      494,542         518,259         (23,717

COP

   Sell      06/17/15       SCB      629,721         689,792         (60,071

COP

   Sell      06/17/15       BOA      2,203,019         2,379,104         (176,085

COP

   Sell      06/17/15       BOA      2,714,765         2,991,149         (276,384

COP

   Sell      06/17/15       JPM      2,977,921         3,320,175         (342,254

COP

   Sell      06/17/15       UBS      5,135,484         5,653,271         (517,787

CZK

   Buy      06/17/15       HSBC      2,650,878         2,772,944         122,066   

CZK

   Buy      06/17/15       JPM      1,578,232         1,632,042         53,810   

CZK

   Sell      06/17/15       JPM      244,281         250,933         (6,652

CZK

   Sell      06/17/15       JPM      1,978,085         2,045,527         (67,442

CZK

   Sell      06/17/15       BOA      2,034,722         2,108,526         (73,804

EUR

   Buy      05/06/15       SSG      920,301         830,972         (89,329

EUR

   Buy      05/06/15       SSG      839,810         750,121         (89,689

EUR

   Buy      05/08/15       SSG      1,572,768         1,268,951         (303,817

EUR

   Buy      05/14/15       BCLY      2,763,621         2,891,870         128,249   

EUR

   Buy      06/17/15       DEUT      5,138,572         5,325,676         187,104   

EUR

   Buy      06/17/15       JPM      2,853,651         2,999,907         146,256   

EUR

   Buy      06/17/15       DEUT          3,452,978             3,572,923              119,945   

EUR

   Buy      06/17/15       DEUT      3,064,136         3,174,058         109,922   

EUR

   Buy      06/17/15       DEUT      626,296         646,047         19,751   

EUR

   Buy      06/17/15       JPM      554,863         567,398         12,535   

EUR

   Buy      06/17/15       DEUT      692,790         699,978         7,188   

EUR

   Buy      06/17/15       BNP      190,016         194,376         4,360   

EUR

   Buy      06/17/15       MSC      430,662         431,448         786   

EUR

   Buy      07/17/15       JPM      1,629,203         1,725,389         96,186   

EUR

   Buy      07/17/15       HSBC      21,227         22,480         1,253   

EUR

   Sell      05/04/15       DEUT      692,021         699,150         (7,129

EUR

   Sell      05/05/15       MSC      430,757         431,506         (749

EUR

   Sell      05/06/15       BNP      189,914         194,267         (4,353

EUR

   Sell      05/06/15       DEUT      1,335,035         1,386,825         (51,790

EUR

   Sell      05/08/15       SSG      470,908         387,423         83,485   

EUR

   Sell      05/14/15       GSC      1,324,207         1,401,575         (77,368

EUR

   Sell      06/17/15       CBK      734,153         747,168         (13,015

EUR

   Sell      06/17/15       MSC      2,071,800         2,117,912         (46,112

EUR

   Sell      06/17/15       MSC      1,469,464         1,516,806         (47,342

EUR

   Sell      06/17/15       HSBC      2,145,627         2,224,650         (79,023

EUR

   Sell      06/17/15       HSBC      3,610,538         3,814,488         (203,950

EUR

   Sell      06/17/15       NAB      5,422,822         5,731,282         (308,460

EUR

   Sell      06/17/15       RBS      5,405,643         5,730,159         (324,516

EUR

   Sell      09/25/15       UBS      1,923,159         2,008,633         (85,474

EUR

   Sell      10/22/15       JPM      1,351,108         1,409,488         (58,380

GBP

   Buy      05/05/15       RBS      244,952         242,520         (2,432

GBP

   Buy      05/05/15       GSC      1,289,879         1,277,066         (12,813

GBP

   Sell      06/17/15       BCLY      260,613         265,464         (4,851

GBP

   Sell      06/17/15       RBS      259,044         263,931         (4,887

GBP

   Sell      06/17/15       DEUT      2,199,692         2,278,700         (79,008

HUF

   Buy      06/17/15       DEUT      5,513,884         5,835,612         321,728   

HUF

   Buy      06/17/15       JPM      5,520,242         5,835,615         315,373   

HUF

   Buy      06/17/15       BOA      1,135,672         1,157,073         21,401   

 

The accompanying notes are an integral part of these financial statements.

 

 

  52  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

HUF

   Buy      06/17/15       BOA    $ 1,020,919       $ 1,040,037       $ 19,118   

HUF

   Buy      06/17/15       DEUT      775,426         793,614         18,188   

HUF

   Buy      06/17/15       CBK      253,158         262,317         9,159   

HUF

   Sell      06/17/15       BCLY      406,133         410,919         (4,786

HUF

   Sell      06/17/15       HSBC      645,975         662,714         (16,739

HUF

   Sell      06/17/15       JPM      2,824,368         2,927,018         (102,650

HUF

   Sell      06/18/15       BCLY      994,137         1,056,714         (62,577

IDR

   Buy      05/05/15       SSG      14,341         14,327         (14

IDR

   Buy      06/17/15       JPM      5,148,125         5,352,372         204,247   

IDR

   Buy      06/17/15       CSFB      1,005,613         1,039,750         34,137   

IDR

   Buy      06/17/15       CSFB      228,729         237,716         8,987   

IDR

   Buy      06/17/15       CSFB      861,046         867,592         6,546   

IDR

   Buy      06/17/15       DEUT      862,026         867,592         5,566   

IDR

   Buy      06/17/15       BCLY      858,483         859,765         1,282   

IDR

   Buy      06/17/15       BOA      650,420         651,143         723   

IDR

   Buy      06/17/15       BCLY      1,358,573         1,352,302         (6,271

IDR

   Sell      05/05/15       SSG      1,408,618         1,409,957         (1,339

IDR

   Sell      06/17/15       BOA      1,632,466         1,628,047         4,419   

IDR

   Sell      06/17/15       BCLY      95,891         97,133         (1,242

IDR

   Sell      06/17/15       BCLY      1,169,905         1,172,545         (2,640

IDR

   Sell      06/17/15       DEUT      1,339,732         1,343,062         (3,330

IDR

   Sell      06/17/15       DEUT      588,351         593,947         (5,596

IDR

   Sell      06/17/15       BOA      1,178,195         1,196,598         (18,403

IDR

   Sell      06/17/15       JPM      6,355,123         6,607,257         (252,134

ILS

   Buy      06/17/15       CBK      2,162,443         2,265,218         102,775   

ILS

   Buy      06/17/15       JPM      145,738         148,925         3,187   

ILS

   Sell      06/17/15       CBK      142,168         148,925         (6,757

ILS

   Sell      06/17/15       JPM      2,216,736         2,265,218         (48,482

INR

   Buy      06/17/15       JPM      5,310,113         5,286,126         (23,987

INR

   Sell      06/17/15       BCLY      1,208,437         1,205,238         3,199   

INR

   Sell      06/17/15       BCLY      109,770         107,683         2,087   

KRW

   Buy      06/17/15       CBK      2,382,933         2,509,954         127,021   

KRW

   Buy      06/17/15       CBK      2,394,049         2,509,953         115,904   

KRW

   Buy      06/17/15       BOA      2,777,326         2,827,622         50,296   

KRW

   Sell      06/17/15       BCLY      1,305,369         1,377,164         (71,795

KRW

   Sell      06/17/15       CBK      3,802,619         3,986,717         (184,098

KRW

   Sell      06/17/15       CBK      3,784,961         3,986,716         (201,755

MXN

   Buy      05/06/15       MSC      246,472         244,646         (1,826

MXN

   Buy      05/06/15       DEUT      1,340,058         1,301,740         (38,318

MXN

   Buy      06/17/15       MSC      9,869,771         10,007,394         137,623   

MXN

   Buy      06/17/15       RBC      9,872,036         10,007,329         135,293   

MXN

   Buy      06/17/15       CSFB      476,348         481,325         4,977   

MXN

   Buy      10/22/15       JPM      1,322,178         1,327,905         5,727   

MXN

   Sell      05/04/15       DEUT      942,774         937,016         5,758   

MXN

   Sell      05/06/15       SSG      905,642         811,144         94,498   

MXN

   Sell      05/06/15       SSG      822,804         735,242         87,562   

MXN

   Sell      06/17/15       CSFB      1,196,649         1,164,468         32,181   

MXN

   Sell      06/17/15       RBC      1,015,038         992,854         22,184   

MXN

   Sell      06/17/15       SCB      876,250         854,952         21,298   

MXN

   Sell      06/17/15       TDB      945,169         938,421         6,748   

MXN

   Sell      06/17/15       BCLY      578,740         574,211         4,529   

MXN

   Sell      06/17/15       CSFB      261,001         256,576         4,425   

MXN

   Sell      06/17/15       DEUT      142,804         139,526         3,278   

MXN

   Sell      06/17/15       MSC      245,730         243,910         1,820   

MYR

   Buy      06/17/15       HSBC      11,655,331         12,216,957         561,626   

MYR

   Buy      06/17/15       DEUT      1,955,074         2,044,034         88,960   

MYR

   Buy      06/17/15       CBK      1,692,513         1,769,763         77,250   

MYR

   Buy      06/17/15       DEUT      1,290,582         1,344,796         54,214   

MYR

   Buy      06/17/15       DEUT      1,005,257         1,042,567         37,310   

 

The accompanying notes are an integral part of these financial statements.

 

 

  53  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

MYR

   Buy      06/17/15       MSC    $ 533,441       $ 556,371       $ 22,930   

MYR

   Buy      06/17/15       BOA      426,790         425,806         (984

MYR

   Sell      06/17/15       SCB      811,268         805,201         6,067   

MYR

   Sell      06/17/15       DEUT      89,151         90,865         (1,714

MYR

   Sell      06/17/15       UBS      135,870         139,792         (3,922

MYR

   Sell      06/17/15       DEUT      140,191         145,943         (5,752

MYR

   Sell      06/17/15       DEUT      173,563         180,611         (7,048

MYR

   Sell      06/17/15       DEUT      349,454         362,619         (13,165

MYR

   Sell      06/17/15       CBK      1,165,231         1,210,596         (45,365

MYR

   Sell      06/17/15       HSBC      6,643,995         6,964,144         (320,149

NGN

   Buy      04/01/16       CBK      194,062         224,825         30,763   

NGN

   Buy      04/01/16       CBK      118,333         137,092         18,759   

NGN

   Buy      04/01/16       CBK      99,873         113,239         13,366   

NGN

   Buy      04/01/16       CBK      98,107         111,457         13,350   

NGN

   Buy      04/01/16       CBK      86,743         98,838         12,095   

NZD

   Buy      06/17/15       WEST      328,790         345,633         16,843   

NZD

   Buy      06/17/15       CBA      328,945         345,634         16,689   

NZD

   Sell      06/17/15       CBA      990,448         1,040,697         (50,249

NZD

   Sell      06/17/15       WEST      989,983         1,040,698         (50,715

PEN

   Buy      06/17/15       SCB      975,771         982,979         7,208   

PEN

   Buy      06/17/15       SSG      980,095         983,297         3,202   

PEN

   Buy      06/17/15       SSG      528,673         531,271         2,598   

PEN

   Buy      06/17/15       UBS      470,121         468,825         (1,296

PEN

   Buy      06/17/15       BNP      326,139         323,328         (2,811

PEN

   Buy      01/22/16       CBK      1,484,138         1,431,441         (52,697

PEN

   Sell      06/17/15       BNP      1,505,376         1,486,673         18,703   

PEN

   Sell      06/17/15       SSG      563,255         561,703         1,552   

PEN

   Sell      06/17/15       SSG      70,570         70,689         (119

PEN

   Sell      06/17/15       SSG      438,530         438,711         (181

PEN

   Sell      06/17/15       SSG      78,889         79,247         (358

PEN

   Sell      06/17/15       SSG      1,743,444         1,749,139         (5,695

PEN

   Sell      06/17/15       SCB      1,736,312         1,749,139         (12,827

PHP

   Buy      06/17/15       UBS      1,900,292         1,894,838         (5,454

PHP

   Buy      06/17/15       JPM      3,378,047         3,366,461         (11,586

PHP

   Sell      06/17/15       BCLY      1,390,063         1,384,517         5,546   

PLN

   Buy      05/08/15       SSG      464,023         394,361         (69,662

PLN

   Buy      06/17/15       BOA      6,418,442         6,941,694         523,252   

PLN

   Buy      06/17/15       JPM      6,433,216         6,941,972         508,756   

PLN

   Buy      06/17/15       HSBC      2,129,370         2,240,867         111,497   

PLN

   Buy      06/17/15       MSC      2,404,547         2,502,948         98,401   

PLN

   Buy      06/17/15       HSBC      1,934,159         2,024,545         90,386   

PLN

   Buy      06/17/15       DEUT      1,734,195         1,822,368         88,173   

PLN

   Buy      06/17/15       MSC      712,516         773,765         61,249   

PLN

   Buy      06/17/15       MSC      1,506,426         1,565,556         59,130   

PLN

   Buy      06/17/15       CSFB      384,328         417,390         33,062   

PLN

   Buy      09/25/15       UBS      1,898,479         1,968,410         69,931   

PLN

   Sell      05/08/15       SSG      1,541,581         1,321,943         219,638   

PLN

   Sell      06/17/15       JPM      1,303,185         1,318,727         (15,542

PLN

   Sell      06/17/15       BOA      415,476         435,416         (19,940

PLN

   Sell      06/17/15       JPM      581,841         610,137         (28,296

PLN

   Sell      06/17/15       BOA      1,112,831         1,156,487         (43,656

PLN

   Sell      06/17/15       DEUT      3,047,941         3,129,726         (81,785

PLN

   Sell      06/17/15       DEUT      4,147,218         4,268,185         (120,967

PLN

   Sell      06/17/15       DEUT      3,445,289         3,616,448         (171,159

RON

   Buy      06/17/15       BNP      1,709,807         1,811,541         101,734   

RON

   Buy      06/17/15       CBK      915,652         978,040         62,388   

RON

   Buy      06/17/15       JPM      998,920         1,031,797         32,877   

RON

   Buy      06/17/15       MSC      208,651         221,878         13,227   

RON

   Buy      06/17/15       MSC      340,415         351,455         11,040   

 

The accompanying notes are an integral part of these financial statements.

 

 

  54  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

RON

   Sell      06/17/15       DEUT    $ 62,585       $ 64,662       $ (2,077

RON

   Sell      06/17/15       JPM      263,948         267,522         (3,574

RON

   Sell      06/17/15       CBK      91,399         97,626         (6,227

RUB

   Buy      06/17/15       CBK      4,700,460         5,840,241         1,139,781   

RUB

   Buy      06/17/15       JPM      4,744,152         5,840,242         1,096,090   

RUB

   Buy      09/16/15       DEUT      1,395,858         1,746,927         351,069   

RUB

   Sell      06/17/15       GSC      397,853         395,840         2,013   

RUB

   Sell      06/17/15       DEUT      203,529         202,383         1,146   

RUB

   Sell      06/17/15       JPM      396,941         395,917         1,024   

RUB

   Sell      06/17/15       DEUT      202,478         202,612         (134

RUB

   Sell      06/17/15       CSFB      198,286         198,531         (245

RUB

   Sell      06/17/15       CSFB      222,292         223,456         (1,164

RUB

   Sell      06/17/15       CSFB      359,249         361,131         (1,882

RUB

   Sell      06/17/15       DEUT      194,192         197,024         (2,832

RUB

   Sell      06/17/15       JPM      31,135         35,567         (4,432

RUB

   Sell      06/17/15       JPM      736,372         740,931         (4,559

RUB

   Sell      06/17/15       DEUT      154,215         176,198         (21,983

RUB

   Sell      06/17/15       JPM      224,583         256,640         (32,057

RUB

   Sell      06/17/15       DEUT      633,560         709,254         (75,694

RUB

   Sell      06/17/15       JPM      668,007         763,741         (95,734

RUB

   Sell      06/17/15       CSFB      1,283,907         1,443,912         (160,005

RUB

   Sell      06/17/15       JPM      807,853         992,651         (184,798

RUB

   Sell      06/17/15       GSC      1,316,003         1,500,839         (184,836

THB

   Buy      06/17/15       SCB      3,116,109         3,135,033         18,924   

THB

   Buy      06/17/15       MSC      295,250         297,450         2,200   

THB

   Buy      06/17/15       JPM      10,752,423         10,754,374         1,951   

THB

   Buy      06/17/15       BCLY      575,268         577,028         1,760   

THB

   Buy      06/17/15       BCLY      890,575         888,713         (1,862

THB

   Buy      06/17/15       DEUT      1,446,939         1,424,849         (22,090

THB

   Sell      05/07/15       SSG      937,393         932,885         4,508   

THB

   Sell      06/17/15       CBK      815,121         806,627         8,494   

THB

   Sell      06/17/15       JPM      576,008         571,273         4,735   

THB

   Sell      06/17/15       CSFB      419,187         415,581         3,606   

TRY

   Buy      06/17/15       CSFB      378,512         376,591         (1,921

TRY

   Buy      06/17/15       MSC      233,968         230,528         (3,440

TRY

   Buy      06/17/15       DEUT      244,124         237,905         (6,219

TRY

   Buy      06/17/15       CBK      681,314         674,987         (6,327

TRY

   Buy      06/17/15       UBS      1,693,333         1,685,623         (7,710

TRY

   Buy      06/17/15       BOA      661,262         652,856         (8,406

TRY

   Buy      06/17/15       JPM      678,509         668,347         (10,162

TRY

   Buy      06/17/15       BNP      632,098         614,865         (17,233

TRY

   Buy      06/17/15       DEUT      987,952         969,325         (18,627

TRY

   Buy      06/17/15       JPM      11,417,069         11,349,000         (68,069

TRY

   Sell      05/04/15       WEST      952,111         946,536         5,575   

TRY

   Sell      05/04/15       CSFB      187,071         186,469         602   

TRY

   Sell      05/05/15       CSFB      196,117         195,540         577   

TRY

   Sell      05/29/15       HSBC      74,134         75,292         (1,158

TRY

   Sell      06/17/15       JPM      3,207,421         3,188,298         19,123   

TRY

   Sell      06/17/15       HSBC      1,076,088         1,067,807         8,281   

TRY

   Sell      06/17/15       JPM      230,194         228,684         1,510   

ZAR

   Buy      05/29/15       JPM      25,411         26,098         687   

ZAR

   Buy      06/17/15       JPM      15,355,378         15,935,461         580,083   

ZAR

   Buy      06/17/15       MSC      176,984         185,131         8,147   

ZAR

   Buy      06/17/15       DEUT      1,587,299         1,578,619         (8,680

ZAR

   Sell      05/04/15       JPM      773,811         769,098         4,713   

ZAR

   Sell      06/17/15       JPM      319,363         317,726         1,637   

ZAR

   Sell      06/17/15       CBK      49,542         50,953         (1,411

ZAR

   Sell      06/17/15       CSFB      996,130         1,002,377         (6,247

 

The accompanying notes are an integral part of these financial statements.

 

 

  55  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

ZAR

   Sell      06/17/15       DEUT    $ 873,559       $ 921,486       $ (47,927

ZAR

   Sell      06/17/15       JPM      3,933,304         4,081,893         (148,589
                 

 

 

 

Total

                  $ 3,298,119   
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CLP

   Chilean Peso

CNH

   Chinese Renminbi

CNY

   Chinese Yuan

COP

   Colombian Peso

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HUF

   Hungarian Forint

IDR

   Indonesian Rupiah

ILS

   Israeli Shekel

INR

   Indian Rupee

KRW

   South Korea Won

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NGN

   Nigerian Naira

NZD

   New Zealand Dollar

PEN

   Peruvian Nuevo Sol

PHP

   Philippine Peso

PLN

   Polish Zloty

RON

   New Romanian Leu

RUB

   Russian Ruble

THB

   Thai Baht

TRY

   Turkish Lira

UYU

   Uruguayan Peso

ZAR

   South African Rand
Other Abbreviations:

BUBOR

   Budapest Interbank Offered Rate

BZDIOVRA

   Brazil Cetip Interbank Deposit Rate

CD

   Certificate of Deposit

JIBAR

   Johannesburg Interbank Agreed Rate

JSC

   Joint Stock Company

KSDA

   Korea Securities Dealers Association

OJSC

   Open Joint Stock Company

OTC

   Over-the-Counter

WIBOR

   Warsaw Interbank Offered Rate
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  56  

 


The Hartford Emerging Markets Local Debt Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Corporate Bonds

   $ 101,758,158      $      $ 101,758,158      $   

Foreign Government Obligations

     163,113,593               163,113,593          

Short-Term Investments

     11,540,024        11,540,024                 

Purchased Options

     431,462               431,462          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     276,843,237      $     11,540,024      $     265,303,213      $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 11,490,921      $      $ 11,490,921      $   

Futures Contracts (2)

     24,648        24,648                 

Swaps - Interest Rate (2)

     565,911               565,911          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 12,081,480      $ 24,648      $ 12,056,832      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (8,192,802   $      $ (8,192,802   $   

Futures Contracts (2)

     (28,928     (28,928              

Swaps - Interest Rate (2)

     (822,636            (822,636       

Written Options

     (269,548            (269,548       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (9,313,914   $ (28,928   $ (9,284,986   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Corporate Bonds and
Foreign Government
Obligations
    Total  

Beginning balance

   $ 2,047,796      $ 2,047,796   

Purchases

     1,970,917        1,970,917   

Sales

         (1,063,517         (1,063,517

Accrued discounts/(premiums)

     18,561        18,561   

Total realized gain/(loss)

              

Net change in unrealized appreciation/depreciation

     (27,806     (27,806

Transfers into Level 3(1)

              

Transfers out of Level 3(1)

     (2,945,951     (2,945,951
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  57  

 


The Hartford Floating Rate Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Baa / BBB

     0.6

Ba / BB

     34.4   

B

     46.9   

Caa / CCC or Lower

     5.0   

Not Rated

     7.4   

Non-Debt Securities and Other Short-Term Instruments

     6.5   

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     0.1

Exchange Traded Funds

     1.6   
  

 

 

 

Total

     1.7
  

 

 

 

Fixed Income Securities

  

Corporate Bonds

     7.3

Senior Floating Rate Interests

     87.0   
  

 

 

 

Total

     94.3
  

 

 

 

Short-Term Investments

     4.8

Other Assets & Liabilities

     (0.8
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

58

 


The Hartford Floating Rate Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 7.3%      
            Auto Parts & Equipment - 0.2%  
   

Titan International, Inc.

 
  $        9,000,000     

6.88%, 10/01/2020

  $ 8,167,500   
     

 

 

 
            Chemicals - 0.3%  
   

Hexion U.S. Finance Corp / Hexion Nova Scotia Finance ULC

 
    4,500,000     

8.88%, 02/01/2018

    4,010,625   
   

Hexion U.S. Finance Corp.

 
    10,816,000     

6.63%, 04/15/2020

    10,112,960   
   

Momentive Performance Materials, Inc.

 
    4,050,000     

3.88%, 10/24/2021

    3,624,750   
     

 

 

 
        17,748,335   
     

 

 

 
            Coal - 0.0%  
   

Peabody Energy Corp.

 
    3,000,000     

6.00%, 11/15/2018

    2,364,375   
     

 

 

 
            Commercial Banks - 2.4%  
   

Access Bank plc

 
    7,000,000     

9.25%, 06/24/2021 (1)(2)

    6,651,400   
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        7,400,000     

7.00%, 02/19/2019 (2)(3)(4)

    8,516,816   
   

Banco do Brasil S.A.

 
  $        3,290,000     

9.00%, 06/18/2024 (1)(2)(3)

    3,043,250   
   

Banco Santander S.A.

 
  EUR        9,300,000     

6.25%, 03/12/2019 (2)(3)(4)

    10,481,663   
   

Bank of Ireland

 
    4,925,000     

10.00%, 07/30/2016 (4)

    5,944,700   
   

Barclays Bank plc

 
  $        8,825,000     

8.25%, 12/15/2018 (2)(3)

    9,400,372   
   

Credit Agricole S.A.

 
    4,600,000     

6.63%, 09/23/2019 (1)(2)(3)

    4,648,125   
    5,150,000     

7.88%, 01/23/2024 (1)(2)(3)

    5,507,039   
   

Credit Suisse Group AG

 
    5,490,000     

6.25%, 12/18/2024 (1)(2)(3)

    5,435,100   
    9,000,000     

7.50%, 12/11/2023 (1)(2)(3)

    9,630,000   
   

Halyk Savings Bank of Kazakhstan JSC

 
    5,000,000     

7.25%, 05/03/2017 (4)

    5,139,300   
   

HSBC Holdings plc

 
    4,220,000     

6.38%, 03/30/2025 (2)(3)

    4,357,150   
   

ING Groep N.V.

 
    1,695,000     

6.00%, 04/16/2020 (2)(3)

    1,687,584   
   

Lloyds Banking Group plc

 
  GBP        8,000,000     

7.00%, 06/27/2019 (2)(3)(4)

    12,572,015   
   

Societe Generale S.A.

 
  $        9,415,000     

6.00%, 01/27/2020 (1)(2)(3)

    8,973,437   
    12,150,000     

8.25%, 11/29/2018 (3)(4)

    12,909,375   
   

UniCredit S.p.A.

 
    9,200,000     

8.00%, 06/03/2024 (2)(3)(4)

    9,402,400   
   

VTB Bank OJSC Via VTB Capital S.A.

 
    2,030,000     

6.95%, 10/17/2022 (4)

    1,860,658   
     

 

 

 
        126,160,384   
     

 

 

 
            Commercial Services - 0.2%  
   

Ancestry.com Holdings LLC

 
    9,100,000     

9.63%, 10/15/2018 (1)(5)

    9,327,500   
     

 

 

 
            Diversified Financial Services - 0.2%  
   

CIMPOR Financial Operations B.V.

 
    4,000,000     

5.75%, 07/17/2024 (1)

    3,620,000   
   

Nationstar Mortgage LLC / Nationstar Capital Corp.

 
    4,795,000     

6.50%, 07/01/2021

    4,675,125   
     

 

 

 
        8,295,125   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 7.3% - (continued)      
            Electric - 0.3%  
   

Dynegy, Inc.

 
  $        5,710,000     

6.75%, 11/01/2019 (1)

  $ 5,966,950   
   

GenOn Energy, Inc.

 
    8,000,000     

7.88%, 06/15/2017

    8,020,000   
     

 

 

 
        13,986,950   
     

 

 

 
            Engineering & Construction - 0.4%  
   

Abengoa Finance

 
  EUR        3,630,000     

6.00%, 03/31/2021 (1)

    3,811,009   
   

Abengoa Greenfield S.A.

 
  $        10,000,000     

6.50%, 10/01/2019 (1)

    9,375,000   
   

Empresas ICA S.A.B. de C.V.

 
    9,715,000     

8.88%, 05/29/2024 (1)

    8,476,337   
     

 

 

 
        21,662,346   
     

 

 

 
            Food - 0.4%  
   

Iceland Bondco plc

 
  GBP        10,335,000     

4.82%, 07/15/2020 (1)(2)

    13,325,945   
   

Marfrig Holding Europe B.V.

 
  $        10,000,000     

6.88%, 06/24/2019 (1)

    8,900,000   
     

 

 

 
        22,225,945   
     

 

 

 
            Forest Products & Paper - 0.1%  
   

Tembec Industries, Inc.

 
    7,685,000     

9.00%, 12/15/2019 (1)

    7,838,700   
     

 

 

 
            Holding Companies-Diversified - 0.2%  
   

Equiniti Newco 2 plc

 
  GBP        7,000,000     

6.31%, 12/15/2018 (1)(2)

    10,422,647   
     

 

 

 
            Lodging - 0.5%  
   

Chester Downs & Marina LLC / Chester Downs Finance Corp.

 
  $        12,189,000     

9.25%, 02/01/2020 (1)

    9,324,585   
   

Cirsa Funding Luxemburg Co.

 
  EUR        6,580,000     

5.88%, 05/15/2023 (1)

    7,330,058   
   

Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp.

 
  $        8,075,000     

6.38%, 06/01/2021 (1)

    7,691,438   
     

 

 

 
        24,346,081   
     

 

 

 
            Metal Fabricate/Hardware - 0.1%  
   

TMK OAO Via TMK Capital S.A.

 
    8,000,000     

6.75%, 04/03/2020 (4)

    6,808,000   
     

 

 

 
            Oil & Gas - 0.8%  
   

American Energy-Permian Basin LLC / AEPB Finance Corp.

 
    18,600,000     

6.78%, 08/01/2019 (1)(2)

    13,950,000   
   

KCA Deutag UK Finance plc

 
    6,065,000     

7.25%, 05/15/2021 (1)

    5,200,737   
   

Kosmos Energy Ltd.

 
    2,500,000     

7.88%, 08/01/2021 (4)

    2,425,000   
   

Paragon Offshore plc

 
    8,570,000     

7.25%, 08/15/2024 (1)

    3,556,550   
   

Rice Energy, Inc.

 
    1,600,000     

7.25%, 05/01/2023 (1)

    1,664,000   
   

Rosetta Resources, Inc.

 
    2,310,000     

5.63%, 05/01/2021

    2,312,888   
    2,690,000     

5.88%, 06/01/2022

    2,683,275   
   

Shelf Drilling Holdings Ltd.

 
    6,065,000     

8.63%, 11/01/2018 (1)

    5,261,387   
   

Ultra Petroleum Corp.

 
    2,180,000     

6.13%, 10/01/2024 (1)

    1,923,850   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  59  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 7.3% - (continued)      
            Oil & Gas - 0.8% - (continued)  
   

YPF S.A.

 
  $        6,000,000     

8.88%, 12/19/2018 (4)

  $ 6,337,500   
     

 

 

 
        45,315,187   
     

 

 

 
            Oil & Gas Services - 0.1%  
   

Borets Finance Ltd. Co.

 
    6,500,000     

7.63%, 09/26/2018 (4)

    5,135,000   
     

 

 

 
            Packaging & Containers - 0.2%  
   

Ardagh Finance Holdings S.A.

 
  EUR        3,200,698     

8.38%, 06/15/2019 (1)(5)

    3,812,772   
  $        5,762,017     

8.63%, 06/15/2019 (1)(5)

    6,150,953   
     

 

 

 
        9,963,725   
     

 

 

 
            Retail - 0.2%  
   

Claire’s Stores, Inc.

 
    10,000,000     

9.00%, 03/15/2019 (1)

    8,926,000   
   

Michaels FinCo Holdings LLC / Michaels FinCo, Inc.

 
    1,167,000     

7.50%, 08/01/2018 (1)(5)

    1,190,340   
     

 

 

 
        10,116,340   
     

 

 

 
            Savings & Loans - 0.2%  
   

Nationwide Building Society

 
  GBP        7,600,000     

6.88%, 06/20/2019 (3)(4)

    11,724,326   
     

 

 

 
            Software - 0.2%  
   

First Data Corp.

 
  $        2,110,000     

8.25%, 01/15/2021 (1)

    2,237,254   
    3,492,000     

11.75%, 08/15/2021

    4,007,070   
   

Infor Software Parent LLC

 
    5,165,000     

7.13%, 05/01/2021 (1)(5)

    5,177,913   
     

 

 

 
        11,422,237   
     

 

 

 
            Telecommunications - 0.3%  
   

Wind Acquisition Finance S.A.

 
  EUR        3,730,000     

4.01%, 07/15/2020 (1)(2)

    4,182,995   
    8,375,000     

5.25%, 04/30/2019 (1)(2)

    9,485,681   
     

 

 

 
        13,668,676   
     

 

 

 
   

Total Corporate Bonds
(cost $418,155,277)

  $ 386,699,379   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 87.0% (6)  
            Aerospace/Defense - 0.2%  
   

Fly Funding II

 
  $        8,801,336     

4.50%, 08/09/2019

  $ 8,813,922   
     

 

 

 
            Agriculture - 0.3%  
   

Pinnacle Operating Corp.

 
    15,435,833     

4.75%, 11/15/2018

    15,455,128   
     

 

 

 
            Airlines - 0.3%  
   

American Airlines, Inc.

 
    14,991,873     

3.75%, 06/27/2019

    15,044,944   
     

 

 

 
            Auto Manufacturers - 0.6%  
   

Navistar International Corp.

 
    33,676,895     

5.75%, 08/17/2017

    33,824,400   
     

 

 

 
            Auto Parts & Equipment - 0.3%  
   

CS Intermediate Holdco 2 LLC

 
    11,805,788     

4.00%, 04/04/2021

    11,857,497   
   

Tower Automotive Holdings USA LLC

 
    6,519,506     

4.00%, 04/23/2020

    6,511,357   
     

 

 

 
        18,368,854   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Beverages - 0.5%  
   

Charger OpCo B.V.

 
  $        24,250,000     

3.50%, 07/23/2021

  $ 24,325,902   
     

 

 

 
            Biotechnology - 0.3%  
   

PQ Corp.

 
    14,617,843     

4.00%, 08/07/2017

    14,619,889   
     

 

 

 
            Chemicals - 2.8%  
   

AIlnex (Luxembourg) & Cy SCA

 
    3,715,389     

4.50%, 10/03/2019

    3,738,610   
   

AIlnex USA, Inc.

 
    1,927,736     

4.50%, 10/03/2019

    1,939,785   
   

Ferro Corp.

 
    7,094,350     

4.00%, 07/31/2021

    7,067,746   
   

Hii Holding Corp.

 
    13,188,906     

4.00%, 12/20/2019

    13,188,906   
   

Ineos U.S. Finance LLC

 
    41,390,050     

3.75%, 05/04/2018

    41,447,168   
    2,330,000     

4.25%, 03/31/2022

    2,343,118   
   

Nexeo Solutions LLC

 
    11,041,528     

5.00%, 09/08/2017

    10,889,707   
    10,681,125     

5.00%, 09/08/2017

    10,534,259   
   

Solenis International L.P. Co.

 
    9,984,825     

4.25%, 07/31/2021

    10,022,268   
  EUR        2,985,000     

4.50%, 07/31/2021

    3,362,198   
   

Univar, Inc.

 
  $        46,658,352     

5.00%, 06/30/2017

    46,816,058   
     

 

 

 
        151,349,823   
     

 

 

 
            Coal - 1.7%      
   

American Energy - Marcellus LLC

  

    21,880,000     

5.25%, 08/04/2020

    18,014,460   
    3,335,000     

8.50%, 08/04/2021

    2,403,301   
   

Arch Coal, Inc.

 
    69,914,315     

6.25%, 05/16/2018

    51,978,497   
   

Peabody Energy

 
    22,236,642     

4.25%, 09/24/2020

    20,018,092   
     

 

 

 
        92,414,350   
     

 

 

 
            Commercial Services - 6.8%  
   

Acosta Holdco, Inc.

 
    35,820,000     

5.00%, 09/26/2021

    36,207,931   
   

Affinion Group, Inc.

 
    25,843,922     

6.75%, 04/30/2018

    24,731,599   
   

AlixPartners LLP

 
    14,220,301     

4.00%, 07/10/2020

    14,291,119   
    4,575,000     

9.00%, 07/10/2021

    4,615,031   
   

Alliance Laundry System LLC

 
    12,879,440     

4.25%, 12/10/2018

    12,911,638   
   

Brickman Group Holdings, Inc.

 
    11,912,388     

7.50%, 12/17/2021

    12,006,734   
   

Brickman Group Ltd.

 
    40,592,160     

4.00%, 12/18/2020

    40,629,098   
   

Brock Holdings III, Inc.

 
    16,928,352     

6.00%, 03/16/2017

    16,674,427   
    5,898,000     

10.00%, 03/16/2018

    5,514,630   
   

Capital Automotive L.P.

 
    5,969,660     

4.00%, 04/10/2019

    5,997,658   
    3,805,000     

6.00%, 04/30/2020

    3,881,100   
   

Interactive Data Corp.

 
    19,350,881     

4.75%, 05/02/2021

    19,465,826   
   

LM U.S. Member LLC

 
    16,652,332     

4.75%, 10/25/2019

    16,731,431   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  60  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Commercial Services - 6.8% - (continued)  
  $        660,917     

4.75%, 10/25/2019

  $ 664,057   
   

Minimax GmbH & Co.

 
    7,575,280     

4.25%, 08/14/2020

    7,622,625   
  EUR        2,649,536     

4.25%, 08/17/2020

    3,008,500   
   

Moneygram International, Inc.

 
  $        8,040,148     

4.25%, 03/27/2020

    7,557,739   
   

Quikrete Holdings, Inc.

 
    17,120,501     

4.00%, 09/28/2020

    17,170,493   
    7,104,632     

7.00%, 03/26/2021

    7,140,155   
   

RH Donnelley, Inc.

 
    3,894,131     

9.75%, 12/31/2016

    2,568,179   
   

ServiceMaster Co.

 
    36,328,192     

4.25%, 07/01/2021

    36,432,090   
   

Summit Materials LLC

 
    10,706,500     

5.00%, 01/30/2019

    10,706,500   
   

TransUnion LLC

 
    17,075,210     

4.00%, 04/09/2021

    17,144,535   
   

US Coatings Acquisition, Inc.

 
    11,894,387     

3.75%, 02/01/2020

    11,918,176   
   

Vantiv Holding LLC

 
    8,700,322     

3.75%, 06/13/2021

    8,730,251   
   

Weight Watchers International, Inc.

 
    27,120,266     

4.00%, 04/02/2020

    14,425,812   
     

 

 

 
        358,747,334   
     

 

 

 
            Distribution/Wholesale - 1.0%  
   

FPC Holdings, Inc.

 
    15,640,000     

5.25%, 11/19/2019

    15,513,003   
   

HD Supply, Inc.

 
    18,629,314     

4.00%, 06/28/2018

    18,687,624   
   

Power Buyer LLC

 
    15,645,767     

4.25%, 05/06/2020

    15,626,209   
    837,545     

4.25%, 05/06/2020

    836,498   
    2,665,000     

8.25%, 11/06/2020

    2,608,369   
     

 

 

 
        53,271,703   
     

 

 

 
            Diversified Financial Services - 4.7%  
   

Grosvenor Capital Management Holdings L.P.

 
    9,702,548     

3.75%, 01/04/2021

    9,690,420   
   

Guggenheim Partners Investment Management

 
    15,070,488     

4.25%, 07/22/2020

    15,183,516   
   

Ipreo Holdings LLC

 
    8,571,925     

4.00%, 08/06/2021

    8,559,067   
   

Nets Holding A/S

 
  EUR        13,150,000     

4.25%, 07/09/2021

    14,843,881   
   

RBS Holding Co. LLC

 
  $        11,715,922     

9.50%, 03/23/2017

    8,201,146   
   

ReAble Therapeutics Finance LLC

 
    17,983,555     

4.25%, 09/15/2017

    17,972,405   
   

RP Crown Parent LLC

 
    16,577,026     

6.00%, 12/21/2018

    16,095,298   
   

SAM Finance

 
    31,283,689     

4.25%, 12/17/2020

    31,426,968   
  EUR        7,900,000     

4.50%, 12/17/2020

    8,896,416   
   

Samson Investment Co.

 
  $        35,075,000     

5.00%, 09/25/2018

    16,695,700   
   

Silver II U.S. Holdings LLC

 
    49,271,849     

4.00%, 12/13/2019

    48,027,735   
   

Vikings Mergers & Acquisitions

 
    8,271,856     

6.00%, 11/05/2016

    8,290,467   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Diversified Financial Services - 4.7% - (continued)  
   

Walter Investment Management Corp.

 
  $        48,032,220     

4.75%, 12/19/2020

  $ 45,830,903   
     

 

 

 
        249,713,922   
     

 

 

 
            Electric - 4.7%  
   

Calpine Corp.

 
    11,615,000     

3.00%, 05/03/2020

    11,546,588   
    33,170,686     

3.25%, 01/31/2022

    32,997,867   
    18,413,371     

4.00%, 04/01/2018

    18,509,672   
    12,846,722     

4.00%, 10/09/2019

    12,900,293   
    4,221,563     

4.00%, 10/30/2020

    4,241,615   
   

Chief Exploration & Development LLC

 
    17,650,000     

7.50%, 05/12/2021

    16,688,075   
   

Energy Future Intermediate Holding Co. LLC

 
    14,205,000     

4.25%, 06/19/2016

    14,281,991   
   

ExGen Texas Power LLC

 
    10,933,632     

5.75%, 09/16/2021

    11,042,968   
   

LA Frontera Generation LLC

 
    8,917,985     

4.50%, 09/30/2020

    8,934,750   
   

Pike Corp.

 
    13,526,100     

5.50%, 12/22/2021

    13,526,100   
    8,625,000     

9.50%, 06/22/2022

    8,545,909   
   

Seadrill Partners Finco LLC

 
    48,204,259     

4.00%, 02/21/2021

    39,406,982   
   

Star West Generation LLC

 
    10,017,652     

4.25%, 03/13/2020

    10,055,218   
   

Texas Competitive Electric Holdings Co. LLC

 
    75,000,000     

4.67%, 10/10/2017 (7)

    46,363,500   
     

 

 

 
        249,041,528   
     

 

 

 
            Electronics - 1.5%      
   

CDW LLC

 
    33,791,165     

3.25%, 04/29/2020

    33,744,871   
   

Ceridian LLC

 
    18,458,944     

4.50%, 09/15/2020

    18,366,649   
   

Eagle Parent, Inc.

 
    30,133,449     

4.00%, 05/16/2018

    30,246,449   
   

Provo Craft & Novelty, Inc.

 
    8,021,967     

0.00%, 03/22/2016 (8)(9)(10)

      
     

 

 

 
        82,357,969   
     

 

 

 
            Energy-Alternate Sources - 0.1%      
   

EMG Utica LLC

 
    4,800,000     

4.75%, 03/27/2020

    4,584,000   
     

 

 

 
            Entertainment - 2.4%      
   

CityCenter Holdings LLC

 
    25,073,309     

4.25%, 10/16/2020

    25,230,017   
   

Party City Holdings, Inc.

 
    24,577,065     

4.00%, 07/27/2019

    24,635,067   
   

Scientific Games Corp.

 
    30,742,950     

6.00%, 10/01/2021

    31,050,380   
   

Tribune Co.

 
    33,964,714     

4.00%, 12/27/2020

    34,113,479   
   

US Finco LLC

 
    6,661,350     

4.00%, 05/29/2020

    6,653,023   
    6,212,378     

8.25%, 11/30/2020

    6,142,488   
     

 

 

 
        127,824,454   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

61

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Environmental Control - 0.6%      
   

ADS Waste Holdings, Inc.

 
  $        30,294,187     

3.75%, 10/09/2019

  $ 30,203,305   
     

 

 

 
            Food - 2.3%      
   

Albertson’s Holdings LLC

 
    31,395,000     

5.50%, 08/25/2021

    31,713,345   
   

Burtons Foods Ltd.

 
  GBP        6,300,000     

5.57%, 11/27/2020

    8,558,390   
   

Hostess Brands, Inc.

 
  $        14,588,453     

6.75%, 04/09/2020

    14,843,751   
   

JBS USA LLC

 
    19,389,410     

3.75%, 05/25/2018

    19,437,883   
    6,997,914     

3.75%, 09/18/2020

    7,006,662   
   

Roundy’s Supermarkets, Inc.

 
    21,918,209     

5.75%, 03/03/2021

    21,135,510   
   

U.S. Foods, Inc.

 
    21,765,278     

4.50%, 03/31/2019

    21,828,833   
     

 

 

 
        124,524,374   
     

 

 

 
            Food Service - 0.3%      
   

CJ Holding Co.

 
    4,500,000     

7.25%, 03/24/2022

    4,230,000   
   

Hearthside Food Solutions

 
    11,964,588     

4.50%, 06/02/2021

    12,014,480   
     

 

 

 
        16,244,480   
     

 

 

 
            Forest Products & Paper - 0.3%      
   

Wilsonart LLC

 
    15,955,989     

4.00%, 10/31/2019

    15,929,343   
     

 

 

 
            Hand/Machine Tools - 0.5%      
   

Ameriforge Group, Inc.

 
    10,416,957     

5.00%, 12/19/2019

    9,075,774   
   

Apex Tool Group LLC

 
    16,845,895     

4.50%, 01/31/2020

    16,814,393   
     

 

 

 
        25,890,167   
     

 

 

 
            Healthcare-Products - 0.7%      
   

Immucor, Inc.

 
    17,176,964     

5.00%, 08/17/2018

    17,236,053   
   

Milk Specialties Co.

 
    7,053,453     

8.25%, 11/07/2018

    7,088,720   
   

Truven Health Analytics

 
    12,204,074     

4.50%, 06/06/2019

    12,209,199   
     

 

 

 
        36,533,972   
     

 

 

 
            Healthcare-Services - 6.4%      
   

AccentCare, Inc.

 
    5,745,397     

6.50%, 12/22/2016

    5,515,581   
   

Air Medical Group Holdings, Inc.

 
    12,500,000     

0.00%, 04/06/2022 (11)

    12,486,625   
   

Alere, Inc.

 
    21,227,906     

4.25%, 06/30/2017

    21,339,353   
   

American Renal Holdings, Inc.

 
    19,905,660     

4.50%, 09/22/2019

    19,905,660   
    11,234,739     

8.50%, 03/20/2020

    11,192,609   
   

Ardent Medical Services, Inc.

 
    6,339,145     

6.75%, 07/02/2018

    6,347,069   
   

Aspen Dental Management, Inc.

 
    5,665,000     

0.00%, 04/10/2022 (11)

    5,696,894   
   

Dialysis Newco, Inc.

 
    5,632,438     

4.50%, 04/23/2021

    5,639,478   
   

DSI Renal, Inc.

 
    6,200,000     

7.75%, 10/22/2021

    6,200,000   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Healthcare-Services - 6.4% - (continued)      
   

Emergency Medical Services Corp.

 
  $        27,264,043     

4.00%, 05/25/2018

  $ 27,381,006   
   

Healogics, Inc.

 
    10,220,595     

5.25%, 07/01/2021

    10,278,137   
   

IASIS Healthcare LLC

 
    18,068,522     

4.50%, 05/03/2018

    18,125,076   
   

IMS Health, Inc.

 
    12,251,586     

3.50%, 03/17/2021

    12,245,461   
   

InVentiv Health, Inc.

 
    15,310,851     

7.75%, 05/15/2018

    15,272,574   
    17,418,355     

7.75%, 05/15/2018

    17,425,670   
   

MPH Acquisition Holdings LLC

 
    16,138,374     

3.75%, 03/31/2021

    16,124,818   
   

Opal Acquisition, Inc.

 
    26,662,410     

5.00%, 11/27/2020

    26,695,738   
   

Ortho-Clinical Diagnostics, Inc.

 
    35,320,687     

4.75%, 06/30/2021

    35,197,065   
   

STHI Holding Corp.

 
    13,089,225     

4.50%, 08/06/2021

    13,067,366   
   

Surgery Center Holdings, Inc.

 
    12,897,675     

5.25%, 11/03/2020

    12,994,407   
    11,200,000     

8.50%, 11/03/2021

    11,125,296   
   

U.S. Renal Care, Inc.

 
    21,293,009     

4.25%, 07/03/2019

    21,390,531   
    3,510,000     

8.50%, 01/03/2020

    3,545,100   
    2,666,000     

10.25%, 01/03/2020

    2,682,662   
     

 

 

 
        337,874,176   
     

 

 

 
            Home Furnishings - 0.2%      
   

Hillman Group

 
    12,426,150     

4.50%, 06/30/2021

    12,433,978   
     

 

 

 
            Insurance - 3.9%      
   

Asurion LLC

 
    7,299,852     

4.25%, 07/08/2020

    7,314,670   
    34,916,280     

5.00%, 05/24/2019

    35,084,576   
    11,215,000     

8.50%, 03/03/2021

    11,366,403   
   

CGSC of Delaware Holdings Corp.

 
    9,260,063     

5.00%, 04/16/2020

    8,797,059   
    5,140,000     

8.25%, 10/16/2020

    4,484,650   
   

Evertec Group LLC

 
    12,547,513     

3.50%, 04/17/2020

    12,442,992   
   

HUB International Ltd.

 
    33,122,752     

4.00%, 10/02/2020

    33,019,409   
   

National Financial Partners Corp.

 
    7,402,018     

4.50%, 07/01/2020

    7,429,775   
   

Sedgwick Claims Management Services, Inc.

 
    47,759,907     

3.75%, 03/01/2021

    47,444,214   
    18,125,000     

6.75%, 02/28/2022

    17,870,163   
   

USI, Inc.

 
    22,840,440     

4.25%, 12/27/2019

    22,830,847   
     

 

 

 
        208,084,758   
     

 

 

 
            Internet - 1.8%  
   

Ancestry.com, Inc.

 
    22,578,823     

4.50%, 12/28/2018

    22,601,402   
   

ION Trading Technologies Ltd.

 
  EUR        15,120,000     

4.50%, 06/10/2021

    17,126,043   
   

ION Trading Technologies S.a.r.l.

 
  $        10,815,000     

7.25%, 06/10/2022

    10,715,827   
   

Lands’ End, Inc.

 
    34,451,262     

4.25%, 04/04/2021

    33,891,429   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  62  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Internet - 1.8% - (continued)  
   

Zayo Group LLC

 
  $        12,789,922     

4.00%, 05/06/2021

  $ 12,789,922   
     

 

 

 
        97,124,623   
     

 

 

 
            Leisure Time - 2.4%  
   

Aristocrat Leisure Ltd.

 
    38,827,808     

4.75%, 10/20/2021

    39,148,137   
   

Bombardier Recreational Products

 
    12,674,629     

4.00%, 01/30/2019

    12,731,158   
   

Delta 2 (LUX) S.a.r.l.

 
    55,299,500     

4.75%, 07/30/2021

    55,343,186   
    19,285,000     

7.75%, 07/31/2022

    19,303,128   
     

 

 

 
        126,525,609   
     

 

 

 
            Lodging - 2.9%  
   

Caesars Entertainment Operating Co.

 
    21,854,975     

13.00%, 01/28/2018

    20,048,880   
   

Caesars Entertainment Resort Properties

 
    38,661,483     

7.00%, 10/11/2020

    36,946,073   
   

Caesars Growth Properties Holdings LLC

 
    30,217,643     

6.25%, 05/08/2021

    26,999,464   
   

Four Seasons Holdings, Inc.

 
    4,690,000     

6.25%, 12/27/2020

    4,719,312   
   

MGM Resorts International

 
    29,789,167     

3.50%, 12/20/2019

    29,776,656   
   

Station Casinos LLC

 
    33,119,915     

4.25%, 03/02/2020

    33,304,062   
     

 

 

 
        151,794,447   
     

 

 

 
            Machinery-Contruction & Mining - 1.1%  
   

Alpha Natural Resources, Inc.

 
    20,829,912     

3.50%, 05/22/2020

    14,125,388   
   

American Rock Salt Holdings LLC

 
    23,820,000     

4.75%, 05/20/2021

    23,951,010   
    6,550,000     

8.00%, 05/16/2022

    6,545,939   
   

Neff Rental LLC

 
    16,305,409     

7.25%, 06/09/2021

    16,040,446   
     

 

 

 
        60,662,783   
     

 

 

 
            Machinery-Diversified - 3.3%  
   

Brand Energy and Infrastructure

 
    24,396,188     

4.75%, 11/26/2020

    24,121,730   
   

Dynacast International LLC

 
    7,500,000     

5.25%, 01/28/2022

    7,587,525   
   

Gardner Denver, Inc.

 
    54,320,944     

4.25%, 07/30/2020

    52,968,352   
  EUR        15,679,757     

4.75%, 07/30/2020

    17,431,890   
   

Gates Global, Inc.

 
  $        50,237,550     

4.25%, 07/05/2021

    50,237,550   
   

Headwaters, Inc.

 
    7,875,000     

4.50%, 03/24/2022

    7,909,493   
   

International Equipment Solutions LLC

 
    10,648,702     

6.75%, 08/16/2019

    10,662,013   
   

Trinseo Materials Operating S.C.A.

 
    4,590,000     

0.00%, 10/13/2021 (11)

    4,608,635   
     

 

 

 
        175,527,188   
     

 

 

 
            Media - 3.0%  
   

Advantage Sales & Marketing, Inc.

 
    28,695,969     

4.25%, 07/23/2021

    28,782,057   
    7,580,000     

7.50%, 07/25/2022

    7,608,425   
   

AVSC Holding Corp.

 
    11,053,350     

4.50%, 01/24/2021

    11,080,983   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Media - 3.0% - (continued)  
   

Dex Media West LLC

 
  $        6,049,024     

8.00%, 12/30/2016

  $ 4,953,727   
   

ION Media Networks, Inc.

 
    8,925,019     

4.75%, 12/18/2020

    8,991,957   
   

Media General, Inc.

 
    18,433,981     

4.25%, 07/31/2020

    18,557,857   
   

Numericable U.S. LLC

 
    4,006,866     

4.50%, 05/21/2020

    4,021,892   
    4,631,484     

4.50%, 05/21/2020

    4,648,852   
   

Quebecor Media, Inc.

 
    21,620,750     

3.25%, 08/17/2020

    21,418,163   
   

Sinclair Television Group, Inc.

 
    2,500,000     

0.00%, 07/30/2021 (11)

    2,501,050   
   

Virgin Media Bristol LLC

 
    13,061,488     

3.50%, 06/07/2020

    13,067,235   
   

Virgin Media Investment Holdings Ltd.

 
  GBP        18,800,000     

4.25%, 06/30/2023

    28,949,471   
   

WMG Acquisition Corp.

 
  $        7,126,077     

3.75%, 07/01/2020

    7,080,399   
     

 

 

 
        161,662,068   
     

 

 

 
            Metal Fabricate/Hardware - 0.6%  
   

Rexnord LLC

 
    32,970,085     

4.00%, 08/21/2020

    33,070,974   
     

 

 

 
            Mining - 1.1%  
   

Ardagh Holdings USA, Inc.

 
    8,875,350     

4.00%, 12/17/2019

    8,913,070   
   

FMG Resources August 2006 Pty Ltd.

 
    35,137,817     

3.75%, 06/30/2019

    31,684,824   
   

Novelis, Inc.

 
    16,743,788     

3.75%, 03/10/2017

    16,764,718   
     

 

 

 
        57,362,612   
     

 

 

 
            Miscellaneous Manufacturing - 0.4%  
   

Filtration Group, Inc.

 
    4,596,763     

4.25%, 11/21/2020

    4,622,551   
    2,070,000     

8.25%, 11/21/2021

    2,078,384   
   

Husky Injection Molding Systems, Ltd.

 
    8,567,096     

4.25%, 06/30/2021

    8,618,841   
    4,344,882     

7.25%, 06/30/2022

    4,290,571   
     

 

 

 
        19,610,347   
     

 

 

 
            Oil & Gas - 2.5%  
   

Callon Petroleum Co.

 
    7,195,000     

8.50%, 10/08/2021

    7,177,013   
   

Drillships Ocean Ventures, Inc.

 
    20,319,348     

5.50%, 07/25/2021

    17,569,937   
   

Energy Transfer Equity L.P.

 
    10,630,000     

4.00%, 12/02/2019

    10,654,874   
   

Fieldwood Energy LLC

 
    10,544,690     

3.88%, 09/28/2018

    10,201,988   
   

Jefferson Gulf Coast Energy Partners LLC

 
    7,462,500     

9.00%, 02/27/2018

    7,313,250   
   

KCA Deutag

 
    21,978,913     

6.25%, 05/13/2020

    19,726,074   
   

Pinnacle Holding Co.

 
    13,532,499     

4.75%, 07/30/2019

    12,314,574   
   

Shelf Drilling Midco Ltd.

 
    21,820,000     

10.00%, 10/08/2018

    14,783,050   
   

Templar Energy LLC

 
    16,045,000     

8.50%, 11/25/2020

    12,093,919   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  63  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Oil & Gas - 2.5% - (continued)  
   

Western Refining, Inc.

 
  $        18,515,625     

4.25%, 11/12/2020

  $ 18,561,914   
     

 

 

 
        130,396,593   
     

 

 

 
            Oil & Gas Services - 1.4%  
   

Crosby U.S. Acquisition Corp.

 
    21,912,625     

3.75%, 11/23/2020

    20,323,960   
   

Drillships Financial Holding, Inc.

 
    25,126,804     

6.00%, 03/31/2021

    20,298,940   
   

Pacific Drilling S.A.

 
    10,537,313     

4.50%, 06/03/2018

    9,267,145   
   

Paragon Offshore Finance Co.

 
    17,910,012     

3.75%, 07/18/2021

    13,342,959   
   

Utex Industries, Inc.

 
    9,463,488     

5.00%, 05/22/2021

    8,931,166   
    3,000,000     

8.25%, 05/22/2022

    2,520,000   
     

 

 

 
        74,684,170   
     

 

 

 
            Packaging & Containers - 3.1%  
   

Berry Plastics Holding Corp.

 
    19,368,547     

3.50%, 02/08/2020

    19,364,867   
   

BWAY Holding Co., Inc.

 
    27,259,013     

5.50%, 08/14/2020

    27,531,603   
   

CD&R Millenium Holding Co.

 
    13,193,700     

4.50%, 07/31/2021

    13,199,241   
    12,725,000     

8.25%, 07/31/2022

    12,510,329   
   

Exopack Holdings S.A.

 
    12,881,938     

5.25%, 05/08/2019

    12,951,758   
   

Reynolds Group Holdings, Inc.

 
    27,314,083     

4.50%, 12/01/2018

    27,573,567   
   

Signode Industrial Group U.S., Inc.

 
    35,931,582     

3.75%, 05/01/2021

    35,852,892   
   

Tekni-Plex, Inc.

 
    2,910,000     

0.00%, 04/01/2022 (11)

    2,916,373   
    3,650,000     

0.00%, 03/31/2023 (11)

    3,659,125   
   

TricorBraun, Inc.

 
    7,061,823     

4.00%, 05/03/2018

    7,035,341   
     

 

 

 
        162,595,096   
     

 

 

 
            Pharmaceuticals - 2.1%  
   

Pharmaceutical Product Development

 
    4,264,487     

4.00%, 12/05/2018

    4,282,014   
   

PharMedium Healthcare Corp

 
    4,051,705     

4.25%, 01/28/2021

    4,017,955   
    3,280,000     

7.75%, 01/28/2022

    3,275,900   
   

PRA Holdings, Inc.

 
    23,872,202     

4.50%, 09/23/2020

    24,009,467   
   

Valeant Pharmaceuticals International, Inc.

 
    8,737,933     

3.50%, 12/11/2019

    8,761,001   
    21,965,691     

3.50%, 08/05/2020

    22,026,096   
    43,261,303     

4.00%, 04/01/2022

    43,541,636   
     

 

 

 
        109,914,069   
     

 

 

 
            Pipelines - 0.4%  
   

Philadelphia Energy Solutions LLC

 
    20,039,729     

6.25%, 04/04/2018

    19,638,935   
     

 

 

 
            Real Estate - 1.1%  
   

DTZ U.S. Borrower LLC

 
    11,106,473     

5.50%, 11/04/2021

    11,208,320   
    5,330,000     

9.25%, 11/04/2022

    5,378,876   
   

Realogy Corp.

 
    37,194,937     

3.75%, 03/05/2020

    37,322,888   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Real Estate - 1.1% - (continued)  
  $        3,922,265     

4.40%, 10/10/2016

  $ 3,883,042   
     

 

 

 
        57,793,126   
     

 

 

 
            Retail - 5.8%  
   

99 Cents Only Stores

 
    7,897,511     

4.50%, 01/11/2019

    7,885,586   
   

Aristocrat Leisure Ltd.

 
    37,600,000     

5.00%, 03/11/2022

    38,044,808   
   

Dollar Tree, Inc.

 
    16,155,000     

4.25%, 03/09/2022

    16,354,999   
   

Harbor Freight Tools USA, Inc.

 
    9,147,024     

4.75%, 07/26/2019

    9,204,193   
   

LTS Buyer LLC

 
    17,309,452     

4.00%, 04/13/2020

    17,287,815   
    2,078,413     

8.00%, 04/12/2021

    2,074,942   
   

Michaels Stores, Inc.

 
    18,057,878     

3.75%, 01/28/2020

    18,097,966   
    17,105,738     

4.00%, 01/28/2020

    17,188,871   
   

Neiman Marcus Group, Inc.

 
    42,201,763     

4.25%, 10/25/2020

    42,284,479   
   

Revlon

 
    18,604,433     

4.00%, 10/08/2019

    18,697,456   
   

Rite Aid Corp.

 
    23,330,000     

4.88%, 06/21/2021

    23,402,556   
    7,755,000     

5.75%, 08/21/2020

    7,842,244   
   

Serta Simmons Holdings LLC

 
    30,991,610     

4.25%, 10/01/2019

    31,172,291   
   

Sports Authority, Inc.

 
    23,672,067     

7.50%, 11/16/2017

    20,634,230   
   

Staples, Inc.

 
    16,665,000     

0.00%, 04/07/2021 (11)

    16,721,328   
   

SuperValu, Inc.

 
    23,305,408     

4.50%, 03/21/2019

    23,380,218   
     

 

 

 
        310,273,982   
     

 

 

 
            Semiconductors - 1.3%  
   

Avago Technologies Cayman Ltd.

 
    15,592,689     

3.75%, 05/06/2021

    15,657,711   
   

Freescale Semiconductor, Inc.

 
    35,934,172     

4.25%, 02/28/2020

    36,068,925   
    12,361,750     

5.00%, 01/15/2021

    12,462,251   
   

Lattice Semiconductor Corp.

 
    7,500,000     

5.25%, 03/10/2021

    7,537,500   
     

 

 

 
        71,726,387   
     

 

 

 
            Software - 4.4%  
   

First Data Corp.

 
    60,763,810     

3.68%, 03/24/2018

    60,878,046   
    3,060,000     

3.68%, 09/24/2018

    3,063,825   
    14,744,032     

4.18%, 03/24/2021

    14,845,471   
   

Hyland Software, Inc.

 
    10,234,967     

4.75%, 02/19/2021

    10,278,465   
   

Infor U.S., Inc.

 
    3,980,417     

3.75%, 06/03/2020

    3,971,461   
    24,508,127     

3.75%, 06/03/2020

    24,460,581   
  EUR        3,528,409     

4.00%, 06/03/2020

    3,956,922   
   

Kronos, Inc.

 
  $        18,041,828     

4.50%, 10/30/2019

    18,135,285   
    4,034,221     

9.75%, 04/30/2020

    4,161,541   
   

MA FinanceCo., LLC

 
    28,676,471     

5.25%, 11/19/2021

    28,773,684   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  64  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 87.0% (6) - (continued)  
            Software - 4.4% - (continued)  
   

Magic Newco LLC

 
  $        25,654,331     

5.00%, 12/12/2018

  $ 25,745,147   
   

Peak 10, Inc.

 
    2,798,850     

5.00%, 06/17/2021

    2,804,979   
    4,310,000     

8.25%, 06/17/2022

    4,187,898   
   

SS&C Technologies, Inc.

 
    27,000,000     

0.00%, 02/20/2016 (11)

    27,000,000   
     

 

 

 
        232,263,305   
     

 

 

 
            Telecommunications - 4.8%  
   

Altice Financing S.A.

 
    5,090,000     

5.25%, 02/04/2022

    5,147,262   
  EUR        1,390,000     

5.25%, 02/04/2022

    1,579,881   
  $        37,450,378     

5.50%, 07/02/2019

    38,043,217   
   

Entravision Communications Corp.

 
    15,199,475     

3.50%, 05/31/2020

    15,117,094   
   

Intelsat Jackson Holdings S.A.

 
    18,502,954     

3.75%, 06/30/2019

    18,479,825   
   

Level 3 Financing, Inc.

 
    29,045,000     

4.00%, 08/01/2019

    29,099,314   
    24,442,500     

4.00%, 01/15/2020

    24,496,029   
    9,185,000     

4.50%, 01/31/2022

    9,190,787   
   

Salem Communications Corp.

 
    15,925,497     

4.50%, 03/13/2020

    15,932,186   
   

Syniverse Holdings, Inc.

 
    3,429,320     

4.00%, 04/23/2019

    3,299,658   
   

TransFirst Holding, Inc.

 
    5,486,250     

5.50%, 11/12/2021

    5,523,995   
    2,225,000     

9.00%, 11/12/2022

    2,239,841   
   

Univision Communications, Inc.

 
    17,858,843     

4.00%, 03/01/2020

    17,864,379   
    58,797,690     

4.00%, 03/01/2020

    58,830,029   
   

XO Communications LLC

 
    11,219,007     

4.25%, 03/17/2021

    11,230,226   
     

 

 

 
        256,073,723   
     

 

 

 
            Trucking & Leasing - 0.1%      
   

Consolidated Container Co.

 
    6,825,000     

5.00%, 07/03/2019

    6,801,113   
     

 

 

 
   

Total Senior Floating Rate Interests (cost $4,751,014,116)

  $ 4,622,977,825   
     

 

 

 
     
COMMON STOCKS - 0.1%  
            Energy - 0.0%  
    418,220,006     

KCA Deutag (9)(10)

  $ 1,117,902   
     

 

 

 
            Media - 0.1%  
    15,581     

F & W Publications, Inc.

    1,558,050   
    138,305     

MPM Holdings, Inc. (8)(9)(10)

    3,678,775   
     

 

 

 
        5,236,825   
     

 

 

 
            Technology Hardware & Equipment - 0.0%  
    2,664     

Provo Craft & Novelty, Inc. (8)(9)(10)

      
     

 

 

 
   

Total Common Stocks
(cost $10,663,263)

  $ 6,354,727   
     

 

 

 
     

Shares or Principal Amount

 

Market Value*

 
EXCHANGE TRADED FUNDS - 1.6%  
          Other Investment Pools & Funds - 1.6%  
    45,751     

iShares 1-3 Year Credit Bond ETF

  $ 4,828,560   
    136,600     

iShares US Preferred Stock ETF

    5,455,804   
    270,000     

PowerShares Financial Preferred Portfolio

    4,981,500   
    464,100     

PowerShares Preferred Portfolio

    6,868,680   
    415,400     

PowerShares Senior Loan Portfolio

    10,044,372   
    254,300     

SPDR Barclays High Yield Bond ETF

    10,029,592   
    689,300     

SPDR Barclays Short Term High Yield Bond ETF

    20,224,062   
    204,400     

SPDR Blackstone / GSO Senior Loan ETF

    10,136,196   
    214,500     

SPDR S&P International Dividend ETF

    9,871,290   
     

 

 

 
   

Total Exchange Traded Funds
(cost $81,937,252)

  $ 82,440,056   
     

 

 

 
   

Total Long-Term Investments
(cost $5,261,769,908)

  $ 5,098,471,987   
     

 

 

 
SHORT-TERM INVESTMENTS - 4.8%  
    Other Investment Pools & Funds - 4.8%      
    254,157,951     

BlackRock Liquidity Funds TempFund Portfolio

  $ 254,157,951   
     

 

 

 
   

Total Short-Term Investments
(cost $254,157,951)

  $ 254,157,951   
     

 

 

 
   

Total Investments
(cost $5,515,927,859) ^

    100.8    $ 5,352,629,938   
   

Other Assets and Liabilities

    (0.8 )%       (41,749,425
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 5,310,880,513   
     

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

65

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $5,520,589,089 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $        34,134,731   

Unrealized Depreciation

     (202,093,882
  

 

 

 

Net Unrealized Depreciation

   $ (167,959,151
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $222,018,952, which represents 4.2% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(4)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $99,256,753, which represents 1.7% of total net assets.

 

(5)  This security may pay interest in additional principal instead of cash.

 

(6)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(7)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(8)  Non-income producing.

 

(9)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $4,796,677, which represents 0.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(10)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

03/2011

     418,220,006       KCA Deutag    $ 5,667,718   

04/2014

     138,305       MPM Holdings, Inc.      4,993,987   

09/2011

     2,664       Provo Craft & Novelty, Inc.        

09/2013-10/2014

     8,021,967       Provo Craft & Novelty, Inc.      2,353,420   
        

 

 

 
         $     13,015,125   
        

 

 

 

At April 30, 2015, the aggregate value of these securities were $4,796,677, which represents 0.1% of total net assets.

 

(11)  All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

 

The accompanying notes are an integral part of these financial statements.

 

 

66

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

CAD

   Buy      05/29/15       TDB    $ 126,001       $ 126,761       $ 760   

CAD

   Buy      05/29/15       BMO      126,022         126,761         739   

EUR

   Buy      05/06/15       CSFB          7,180,683             7,330,058             149,375   

EUR

   Buy      05/29/15       UBS      6,775,605         7,082,310         306,705   

EUR

   Buy      05/29/15       CBK      1,758,016         1,807,365         49,349   

EUR

   Buy      05/29/15       BOA      870,838         903,121         32,283   

EUR

   Sell      05/29/15       CSFB      7,182,464         7,332,802         (150,338

EUR

   Sell      05/29/15       BOA      63,379,147         65,471,770         (2,092,623

EUR

   Sell      05/29/15       MSC      63,063,412         65,471,770         (2,408,358

GBP

   Buy      05/29/15       BOA      8,878,967         9,051,486         172,519   

GBP

   Buy      05/29/15       DEUT      7,669,896         7,757,759         87,863   

GBP

   Sell      05/29/15       GSC          102,447,950             104,633,828         (2,185,878
                 

 

 

 

Total

                  $ (6,037,604
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BMO

   Bank of Montreal

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

MSC

   Morgan Stanley

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

CAD

   Canadian Dollar

EUR

   Euro

GBP

   British Pound
Index Abbreviations:

S&P

   Standard & Poors
Other Abbreviations:

ETF

   Exchange Traded Fund

JSC

   Joint Stock Company

LIBOR

   London Interbank Offered Rate

OJSC

   Open Joint Stock Company

SPDR

   Standard & Poor’s Depositary Receipt

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


The Hartford Floating Rate Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)      Level 2 (1)     Level 3  

Assets

         

Corporate Bonds

   $ 386,699,379      $       $ 386,699,379      $   

Senior Floating Rate Interests

     4,622,977,825                4,622,977,825          

Common Stocks

         

Energy

     1,117,902                       1,117,902   

Media

     5,236,825        1,558,050                3,678,775   

Technology Hardware & Equipment

                             

Exchange Traded Funds

     82,440,056        82,440,056                  

Short-Term Investments

     254,157,951        254,157,951                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     5,352,629,938      $     338,156,057       $     5,009,677,204      $     4,796,677   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 799,593      $       $ 799,593      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 799,593      $       $ 799,593      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts (2)

   $ (6,837,197   $       $ (6,837,197   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (6,837,197   $       $ (6,837,197   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) For the six-month period ended April 30, 2015, there were no transfers from Level 1 to Level 2, and investments valued at $1,090,635 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Senior Floating
Rate Interests
    Total  

Beginning balance

   $ 6,746,409      $      $ 6,746,409   

Purchases

                     

Sales

            (991     (991

Accrued discounts/(premiums)

            59,805        59,805   

Total realized gain/(loss)

            707        707   

Net change in unrealized appreciation/depreciation

     (1,949,732     (2,353,420     (4,303,152

Transfers into Level 3(1)

            2,293,899        2,293,899   

Transfers out of Level 3(1)

                     
  

 

 

   

 

 

   

 

 

 

Ending balance

   $     4,796,677      $     —      $     4,796,677   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $(1,949,732).

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a)  Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b)  Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c)  Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  68  

 


The Hartford Floating Rate High Income Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Ba / BB

     20.5

B

     51.6   

Caa / CCC or Lower

     11.7   

Not Rated

     9.6   

Non-Debt Securities and Other Short-Term Instruments

     8.0   

Other Assets & Liabilities

     (1.4
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     0.4

Exchange Traded Funds

     1.8   
  

 

 

 

Total

     2.2
  

 

 

 

Fixed Income Securities

  

Corporate Bonds

     15.1

Senior Floating Rate Interests

     78.3   
  

 

 

 

Total

     93.4
  

 

 

 

Short-Term Investments

     5.8

Other Assets & Liabilities

     (1.4
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

69

 


The Hartford Floating Rate High Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 0.4%      
            Media - 0.4%  
    69,152     

MPM Holdings, Inc. (1)(2)(3)

  $ 1,839,374   
     

 

 

 
   

Total Common Stocks
(cost $2,496,994)

  $ 1,839,374   
     

 

 

 
     
CORPORATE BONDS - 15.1%      
            Auto Parts & Equipment - 0.4%  
   

Titan International, Inc.

 
  $        2,000,000     

6.88%, 10/01/2020

  $ 1,815,000   
     

 

 

 
            Chemicals - 0.7%  
   

Hexion U.S. Finance Corp / Hexion Nova Scotia Finance ULC

 
    800,000     

8.88%, 02/01/2018

    713,000   
   

Hexion U.S. Finance Corp.

 
    1,000,000     

6.63%, 04/15/2020

    935,000   
   

Momentive Performance Materials, Inc.

 
    1,740,000     

3.88%, 10/24/2021

    1,557,300   
     

 

 

 
        3,205,300   
     

 

 

 
            Coal - 0.1%  
   

Peabody Energy Corp.

 
    500,000     

6.00%, 11/15/2018

    394,063   
     

 

 

 
            Commercial Banks - 4.7%  
   

Access Bank plc

 
    1,500,000     

9.25%, 06/24/2021 (4)(5)

    1,425,300   
   

Banco do Brasil S.A.

 
    695,000     

9.00%, 06/18/2024 (4)(5)(6)

    642,875   
   

Banco Santander S.A.

 
  EUR        1,400,000     

6.25%, 03/12/2019 (5)(6)(7)

    1,577,885   
   

Bank of Ireland

 
    650,000     

10.00%, 07/30/2016 (7)

    784,580   
   

Barclays Bank plc

 
  $        925,000     

8.25%, 12/15/2018 (5)(6)

    985,308   
   

Credit Agricole S.A.

 
    1,650,000     

6.63%, 09/23/2019 (4)(5)(6)

    1,667,262   
    1,585,000     

7.88%, 01/23/2024 (4)(5)(6)

    1,694,885   
   

Credit Suisse Group AG

 
    1,800,000     

7.50%, 12/11/2023 (4)(5)(6)

    1,926,000   
   

Halyk Savings Bank of Kazakhstan JSC

 
    1,000,000     

7.25%, 05/03/2017 (7)

    1,027,860   
   

ING Groep N.V.

 
    680,000     

6.00%, 04/16/2020 (5)(6)

    677,025   
   

Lloyds Banking Group plc

 
  GBP        2,000,000     

7.00%, 06/27/2019 (5)(6)(7)

    3,143,004   
   

Societe Generale S.A.

 
  $        3,470,000     

6.00%, 01/27/2020 (4)(5)(6)

    3,307,257   
    725,000     

8.25%, 11/29/2018 (5)(6)(7)

    770,312   
   

UniCredit S.p.A.

 
    1,850,000     

8.00%, 06/03/2024 (5)(6)(7)

    1,890,700   
   

VTB Bank OJSC Via VTB Capital S.A.

 
    280,000     

6.95%, 10/17/2022 (7)

    256,642   
     

 

 

 
        21,776,895   
     

 

 

 
            Commercial Services - 0.7%  
   

Ancestry.com Holdings LLC

 
    3,150,000     

9.63%, 10/15/2018 (4)(8)

    3,228,750   
     

 

 

 
            Diversified Financial Services - 0.1%  
   

CIMPOR Financial Operations B.V.

 
    500,000     

5.75%, 07/17/2024 (4)

    452,500   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 15.1% - (continued)      
            Electric - 0.4%  
   

GenOn Energy, Inc.

 
  $        2,000,000     

7.88%, 06/15/2017

  $ 2,005,000   
     

 

 

 
            Engineering & Construction - 0.6%  
   

Abengoa Finance

 
  EUR        905,000     

6.00%, 03/31/2021 (4)

    950,128   
   

Empresas ICA S.A.B. de C.V.

 
  $        1,925,000     

8.88%, 05/29/2024 (4)

    1,679,562   
     

 

 

 
        2,629,690   
     

 

 

 
            Food - 1.3%  
   

Iceland Bondco plc

 
  GBP        2,665,000     

4.82%, 07/15/2020 (4)(5)

    3,436,250   
   

Marfrig Holding Europe B.V.

 
  $        3,000,000     

6.88%, 06/24/2019 (4)

    2,670,000   
     

 

 

 
        6,106,250   
     

 

 

 
            Forest Products & Paper - 0.3%  
   

Tembec Industries, Inc.

 
    1,420,000     

9.00%, 12/15/2019 (4)

    1,448,400   
     

 

 

 
            Holding Companies-Diversified - 0.3%  
   

Equiniti Newco 2 plc

 
  GBP        1,000,000     

6.31%, 12/15/2018 (4)(5)

    1,488,950   
     

 

 

 
            Lodging - 1.0%  
   

Chester Downs & Marina LLC / Chester Downs Finance Corp.

 
  $        2,840,000     

9.25%, 02/01/2020 (4)

    2,172,600   
   

Cirsa Funding Luxemburg Co.

 
  EUR        1,315,000     

5.88%, 05/15/2023 (4)

    1,464,898   
   

Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp.

 
  $        990,000     

6.38%, 06/01/2021 (4)

    942,975   
     

 

 

 
        4,580,473   
     

 

 

 
            Metal Fabricate/Hardware - 0.4%  
   

TMK OAO Via TMK Capital S.A.

 
    2,000,000     

6.75%, 04/03/2020 (7)

    1,702,000   
     

 

 

 
            Oil & Gas - 2.0%  
   

American Energy-Permian Basin LLC / AEPB Finance Corp.

 
    5,400,000     

6.78%, 08/01/2019 (4)(5)

    4,050,000   
   

KCA Deutag UK Finance plc

 
    935,000     

7.25%, 05/15/2021 (4)

    801,762   
   

Kosmos Energy Ltd.

 
    750,000     

7.88%, 08/01/2021 (7)

    727,500   
   

Paragon Offshore plc

 
    3,430,000     

7.25%, 08/15/2024 (4)

    1,423,450   
   

Rosetta Resources, Inc.

 
    690,000     

5.63%, 05/01/2021

    690,863   
    810,000     

5.88%, 06/01/2022

    807,975   
   

Shelf Drilling Holdings Ltd.

 
    955,000     

8.63%, 11/01/2018 (4)

    828,462   
     

 

 

 
        9,330,012   
     

 

 

 
            Oil & Gas Services - 0.3%  
   

Borets Finance Ltd. Co.

 
    2,000,000     

7.63%, 09/26/2018 (7)

    1,580,000   
     

 

 

 
            Packaging & Containers - 0.7%  
   

Ardagh Finance Holdings S.A.

 
  EUR        1,522,156     

8.38%, 06/15/2019 (4)(8)

    1,813,240   
  $        1,289,147     

8.63%, 06/15/2019 (4)(8)

    1,376,164   
     

 

 

 
        3,189,404   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

70

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 15.1% - (continued)      
            Retail - 0.4%  
   

Claire’s Stores, Inc.

 
  $        2,000,000     

9.00%, 03/15/2019 (4)

  $ 1,785,200   
   

Michaels FinCo Holdings LLC / Michaels FinCo, Inc.

 
    306,000     

7.50%, 08/01/2018 (4)(8)

    312,120   
     

 

 

 
        2,097,320   
     

 

 

 
            Savings & Loans - 0.4%  
   

Nationwide Building Society

 
  GBP        1,200,000     

6.88%, 06/20/2019 (5)(6)(7)

    1,851,209   
     

 

 

 
            Software - 0.3%  
   

Infor Software Parent LLC

 
  $        1,555,000     

7.13%, 05/01/2021 (4)(8)

    1,558,888   
     

 

 

 
   

Total Corporate Bonds
(cost $77,324,491)

  $ 70,440,104   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 78.3% (9)  
            Agriculture - 0.2%  
   

Pinnacle Operating Corp.

 
    814,209     

4.75%, 11/15/2018

  $ 815,226   
     

 

 

 
            Auto Manufacturers - 0.2%  
   

Navistar International Corp.

 
    914,638     

5.75%, 08/17/2017

    918,644   
     

 

 

 
            Auto Parts & Equipment - 0.2%  
   

Tower Automotive Holdings USA LLC

 
    934,587     

4.00%, 04/23/2020

    933,419   
     

 

 

 
            Beverages - 0.6%  
   

Charger OpCo B.V.

 
    2,915,000     

3.50%, 07/23/2021

    2,924,124   
     

 

 

 
            Chemicals - 2.9%  
   

AIlnex (Luxembourg) & Cy SCA

 
    197,249     

4.50%, 10/03/2019

    198,482   
   

AIlnex USA, Inc.

 
    102,343     

4.50%, 10/03/2019

    102,982   
   

Ineos U.S. Finance LLC

 
    2,330,000     

4.25%, 03/31/2022

    2,343,118   
   

Nexeo Solutions LLC

 
    1,475,696     

5.00%, 09/08/2017

    1,455,405   
    765,375     

5.00%, 09/08/2017

    754,851   
   

Solenis International L.P. Co.

 
    1,427,825     

4.25%, 07/31/2021

    1,433,179   
  EUR        1,492,500     

4.50%, 07/31/2021

    1,681,099   
   

Univar, Inc.

 
  $        5,420,255     

5.00%, 06/30/2017

    5,438,576   
     

 

 

 
        13,407,692   
     

 

 

 
            Coal - 2.0%  
   

American Energy - Marcellus LLC

 
    3,560,000     

5.25%, 08/04/2020

    2,931,055   
    830,000     

8.50%, 08/04/2021

    598,123   
   

Arch Coal, Inc.

 
    3,513,567     

6.25%, 05/16/2018

    2,612,196   
   

Peabody Energy

 
    3,284,000     

4.25%, 09/24/2020

    2,956,355   
     

 

 

 
        9,097,729   
     

 

 

 
            Commercial Services - 5.1%  
   

Acosta Holdco, Inc.

 
    2,840,725     

4.25%, 09/26/2021

    2,871,490   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Commercial Services - 5.1% - (continued)  
   

Affinion Group, Inc.

 
  $        1,852,840     

6.75%, 04/30/2018

  $ 1,773,094   
   

AlixPartners LLP

 
    292,599     

4.00%, 07/10/2020

    294,056   
    141,000     

9.00%, 07/10/2021

    142,234   
   

Alliance Laundry System LLC

 
    953,196     

4.25%, 12/10/2018

    955,578   
   

Brickman Group Holdings, Inc.

 
    3,587,411     

7.50%, 12/17/2021

    3,615,823   
   

Brickman Group Ltd.

 
    2,468,896     

4.00%, 12/18/2020

    2,471,143   
   

Brock Holdings III, Inc.

 
    1,451,423     

6.00%, 03/16/2017

    1,429,652   
    402,000     

10.00%, 03/16/2018

    375,870   
   

Capital Automotive L.P.

 
    470,000     

6.00%, 04/30/2020

    479,400   
   

Interactive Data Corp.

 
    1,104,150     

4.75%, 05/02/2021

    1,110,709   
   

LM U.S. Member LLC

 
    1,751,614     

4.75%, 10/25/2019

    1,759,934   
    69,520     

4.75%, 10/25/2019

    69,850   
   

Minimax GmbH & Co.

 
    650,963     

4.25%, 08/14/2020

    655,031   
  EUR        240,867     

4.25%, 08/17/2020

    273,500   
   

Quikrete Holdings, Inc.

 
  $        473,053     

7.00%, 03/26/2021

    475,418   
   

ServiceMaster Co.

 
    4,372,959     

4.25%, 07/01/2021

    4,385,465   
   

Weight Watchers International, Inc.

 
    1,477,254     

4.00%, 04/02/2020

    785,781   
     

 

 

 
        23,924,028   
     

 

 

 
            Distribution/Wholesale - 0.2%  
   

Power Buyer LLC

 
    419,200     

4.25%, 05/06/2020

    418,676   
    22,441     

4.25%, 05/06/2020

    22,412   
    665,000     

8.25%, 11/06/2020

    650,869   
     

 

 

 
        1,091,957   
     

 

 

 
            Diversified Financial Services - 3.2%  
   

Guggenheim Partners Investment Management

 
    891,425     

4.25%, 07/22/2020

    898,111   
   

Ipreo Holdings LLC

 
    1,427,825     

4.00%, 08/06/2021

    1,425,683   
   

ReAble Therapeutics Finance LLC

 
    796,611     

4.25%, 09/15/2017

    796,117   
   

RP Crown Parent LLC

 
    2,518,706     

6.00%, 12/21/2018

    2,445,513   
   

SAM Finance

 
  EUR        1,975,000     

4.50%, 12/17/2020

    2,224,104   
   

Samson Investment Co.

 
  $        2,285,000     

5.00%, 09/25/2018

    1,087,660   
   

Silver II U.S. Holdings LLC

 
    3,113,509     

4.00%, 12/13/2019

    3,034,893   
   

Walter Investment Management Corp.

 
    3,076,345     

4.75%, 12/19/2020

    2,935,356   
     

 

 

 
        14,847,437   
     

 

 

 
            Electric - 3.9%  
   

Chief Exploration & Development LLC

 
    3,115,000     

7.50%, 05/12/2021

    2,945,233   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  71  

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Electric - 3.9% - (continued)  
   

ExGen Texas Power LLC

 
  $        1,486,542     

5.75%, 09/16/2021

  $ 1,501,407   
   

Pike Corp.

 
    2,633,400     

5.50%, 12/22/2021

    2,633,400   
    2,375,000     

9.50%, 06/22/2022

    2,353,221   
   

Seadrill Partners Finco LLC

 
    5,107,094     

4.00%, 02/21/2021

    4,175,050   
   

Texas Competitive Electric Holdings Co. LLC

 
    7,000,000     

4.67%, 10/10/2017 (10)

    4,327,260   
     

 

 

 
        17,935,571   
     

 

 

 
            Electronics - 0.4%  
   

Ceridian LLC

 
    2,068,131     

4.50%, 09/15/2020

    2,057,791   
     

 

 

 
            Energy-Alternate Sources - 0.1%  
   

EMG Utica LLC

 
    535,000     

4.75%, 03/27/2020

    510,925   
     

 

 

 
            Entertainment - 3.0%  
   

CityCenter Holdings LLC

 
    1,477,794     

4.25%, 10/16/2020

    1,487,030   
   

Party City Holdings, Inc.

 
    1,783,371     

4.00%, 07/27/2019

    1,787,580   
   

Scientific Games Corp.

 
    3,251,850     

6.00%, 10/01/2021

    3,284,369   
   

Tribune Co.

 
    3,565,450     

4.00%, 12/27/2020

    3,581,066   
   

US Finco LLC

 
    2,711,712     

4.00%, 05/29/2020

    2,708,323   
    1,140,000     

8.25%, 11/30/2020

    1,127,175   
     

 

 

 
        13,975,543   
     

 

 

 
            Food - 2.1%  
   

Albertson’s Holdings LLC

 
    2,210,000     

5.50%, 08/25/2021

    2,232,409   
   

Burtons Foods Ltd.

 
  GBP        1,500,000     

5.57%, 11/27/2020

    2,037,712   
   

Hostess Brands, Inc.

 
  $        2,421,023     

6.75%, 04/09/2020

    2,463,391   
   

Roundy’s Supermarkets, Inc.

 
    3,379,120     

5.75%, 03/03/2021

    3,258,452   
     

 

 

 
        9,991,964   
     

 

 

 
            Food Service - 0.5%  
   

CJ Holding Co.

 
    500,000     

7.25%, 03/24/2022

    470,000   
   

Hearthside Food Solutions

 
    1,994,925     

4.50%, 06/02/2021

    2,003,244   
     

 

 

 
        2,473,244   
     

 

 

 
            Forest Products & Paper - 0.5%  
   

Wilsonart LLC

 
    2,385,213     

4.00%, 10/31/2019

    2,381,229   
     

 

 

 
            Hand/Machine Tools - 0.8%  
   

Ameriforge Group, Inc.

 
    2,014,411     

5.00%, 12/19/2019

    1,755,055   
   

Apex Tool Group LLC

 
    1,762,864     

4.50%, 01/31/2020

    1,759,567   
     

 

 

 
        3,514,622   
     

 

 

 
            Healthcare-Products - 0.9%  
   

Immucor, Inc.

 
    485,095     

5.00%, 08/17/2018

    486,764   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Healthcare-Products - 0.9% - (continued)  
   

Milk Specialties Co.

 
  $        392,950     

8.25%, 11/07/2018

  $ 394,915   
   

Truven Health Analytics

 
    3,414,654     

4.50%, 06/06/2019

    3,416,088   
     

 

 

 
        4,297,767   
     

 

 

 
            Healthcare-Services - 6.6%  
   

American Renal Holdings, Inc.

 
    1,046,908     

4.50%, 09/22/2019

    1,046,908   
    1,429,709     

8.50%, 03/20/2020

    1,424,347   
   

Ardent Medical Services, Inc.

 
    454,267     

6.75%, 07/02/2018

    454,835   
   

Aspen Dental Management, Inc.

 
    1,000,000     

0.00%, 04/10/2022 (11)

    1,005,630   
   

Dialysis Newco, Inc.

 
    769,188     

4.50%, 04/23/2021

    770,149   
   

DSI Renal, Inc.

 
    1,050,000     

7.75%, 10/22/2021

    1,050,000   
   

Healogics, Inc.

 
    1,623,583     

5.25%, 07/01/2021

    1,632,724   
   

InVentiv Health, Inc.

 
    2,152,357     

7.75%, 05/15/2018

    2,146,976   
    3,581,645     

7.75%, 05/15/2018

    3,583,149   
   

Opal Acquisition, Inc.

 
    3,962,638     

5.00%, 11/27/2020

    3,967,591   
   

Ortho-Clinical Diagnostics, Inc.

 
    3,022,163     

4.75%, 06/30/2021

    3,011,585   
   

STHI Holding Corp.

 
    2,278,550     

4.50%, 08/06/2021

    2,274,745   
   

Surgery Center Holdings, Inc.

 
    992,513     

5.25%, 11/03/2020

    999,956   
    3,300,000     

8.50%, 11/03/2021

    3,277,989   
   

U.S. Renal Care, Inc.

 
    2,381,194     

4.25%, 07/03/2019

    2,392,100   
    1,140,000     

8.50%, 01/03/2020

    1,151,400   
    666,000     

10.25%, 01/03/2020

    670,163   
     

 

 

 
        30,860,247   
     

 

 

 
            Home Furnishings - 0.6%  
   

Hillman Group

 
    2,999,844     

4.50%, 06/30/2021

    3,001,734   
     

 

 

 
            Insurance - 5.0%  
   

Asurion LLC

 
    4,289,054     

5.00%, 05/24/2019

    4,309,727   
    1,930,000     

8.50%, 03/03/2021

    1,956,055   
   

CGSC of Delaware Holdings Corp.

 
    1,262,513     

5.00%, 04/16/2020

    1,199,387   
    2,430,000     

8.25%, 10/16/2020

    2,120,175   
   

Evertec Group LLC

 
    3,020,338     

3.50%, 04/17/2020

    2,995,179   
   

HUB International Ltd.

 
    3,890,997     

4.00%, 10/02/2020

    3,878,857   
   

National Financial Partners Corp.

 
    1,425,785     

4.50%, 07/01/2020

    1,431,132   
   

Sedgwick Claims Management Services, Inc.

 
    3,078,900     

3.75%, 03/01/2021

    3,058,549   
    2,500,000     

6.75%, 02/28/2022

    2,464,850   
     

 

 

 
        23,413,911   
     

 

 

 
            Internet - 2.1%  
   

ION Trading Technologies Ltd.

 
  EUR        2,880,000     

4.50%, 06/10/2021

    3,262,103   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  72  

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Internet - 2.1% - (continued)  
   

ION Trading Technologies S.a.r.l.

 
  $        2,210,000     

7.25%, 06/10/2022

  $ 2,189,734   
   

Lands’ End, Inc.

 
    3,023,731     

4.25%, 04/04/2021

    2,974,596   
   

Zayo Group LLC

 
    1,469,711     

4.00%, 05/06/2021

    1,469,711   
     

 

 

 
        9,896,144   
     

 

 

 
            Leisure Time - 3.0%  
   

Aristocrat Leisure Ltd.

 
    3,932,115     

4.75%, 10/20/2021

    3,964,556   
   

Delta 2 (LUX) S.a.r.l.

 
    6,917,063     

4.75%, 07/30/2021

    6,922,527   
    2,830,000     

7.75%, 07/31/2022

    2,832,660   
     

 

 

 
        13,719,743   
     

 

 

 
            Lodging - 2.7%  
   

Caesars Entertainment Operating Co.

 
    1,976,241     

13.00%, 01/28/2018

    1,812,924   
   

Caesars Entertainment Resort Properties

 
    5,958,580     

7.00%, 10/11/2020

    5,694,198   
   

Caesars Growth Properties Holdings LLC

 
    1,540,812     

6.25%, 05/08/2021

    1,376,716   
   

Four Seasons Holdings, Inc.

 
    640,000     

6.25%, 12/27/2020

    644,000   
   

Station Casinos LLC

 
    2,920,234     

4.25%, 03/02/2020

    2,936,470   
     

 

 

 
        12,464,308   
     

 

 

 
            Machinery-Contruction & Mining - 1.5%  
   

American Rock Salt Holdings LLC

 
    2,645,013     

4.75%, 05/20/2021

    2,659,560   
    1,635,000     

8.00%, 05/16/2022

    1,633,986   
   

Neff Rental LLC

 
    2,699,270     

7.25%, 06/09/2021

    2,655,407   
     

 

 

 
        6,948,953   
     

 

 

 
            Machinery-Diversified - 3.7%  
   

Brand Energy and Infrastructure

 
    2,737,900     

4.75%, 11/26/2020

    2,707,098   
   

Dynacast International LLC

 
    1,500,000     

5.25%, 01/28/2022

    1,517,505   
   

Gardner Denver, Inc.

 
    6,215,512     

4.25%, 07/30/2020

    6,060,746   
   

Gates Global, Inc.

 
    3,569,556     

4.25%, 07/05/2021

    3,569,556   
   

Headwaters, Inc.

 
    1,500,000     

4.50%, 03/24/2022

    1,506,570   
   

International Equipment Solutions LLC

 
    1,388,961     

6.76%, 08/16/2019

    1,390,697   
   

Trinseo Materials Operating S.C.A.

 
    575,000     

0.00%, 10/13/2021 (11)

    577,335   
     

 

 

 
        17,329,507   
     

 

 

 
            Media - 3.0%  
   

Advantage Sales & Marketing, Inc.

 
    3,243,700     

4.25%, 07/23/2021

    3,253,431   
    1,895,000     

7.50%, 07/25/2022

    1,902,106   
   

AVSC Holding Corp.

 
    1,227,600     

4.50%, 01/24/2021

    1,230,669   
   

ION Media Networks, Inc.

 
    891,017     

4.75%, 12/18/2020

    897,699   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Media - 3.0% - (continued)  
   

Numericable U.S. LLC

 
  $        802,761     

4.50%, 05/21/2020

  $ 805,772   
    927,901     

4.50%, 05/21/2020

    931,381   
   

Virgin Media Investment Holdings Ltd.

 
  GBP        3,200,000     

4.25%, 06/30/2023

    4,927,570   
     

 

 

 
        13,948,628   
     

 

 

 
            Mining - 0.2%  
   

Ardagh Holdings USA, Inc.

 
  $        985,050     

4.00%, 12/17/2019

    989,236   
     

 

 

 
            Miscellaneous Manufacturing - 0.4%  
   

Filtration Group, Inc.

 
    419,688     

4.25%, 11/21/2020

    422,042   
    520,000     

8.25%, 11/21/2021

    522,106   
   

Husky Injection Molding Systems, Ltd.

 
    875,788     

7.25%, 06/30/2022

    864,841   
     

 

 

 
        1,808,989   
     

 

 

 
            Oil & Gas - 3.3%  
   

Callon Petroleum Co.

 
    1,800,000     

8.50%, 10/08/2021

    1,795,500   
   

Drillships Ocean Ventures, Inc.

 
    3,679,700     

5.50%, 07/25/2021

    3,181,800   
   

Jefferson Gulf Coast Energy Partners LLC

 
    1,990,000     

9.00%, 02/27/2018

    1,950,200   
   

KCA Deutag

 
    2,833,588     

6.25%, 05/13/2020

    2,543,145   
   

Pinnacle Holding Co.

 
    966,607     

4.75%, 07/30/2019

    879,612   
   

Shelf Drilling Midco Ltd.

 
    3,435,000     

10.00%, 10/08/2018

    2,327,212   
   

Templar Energy LLC

 
    3,240,000     

8.50%, 11/25/2020

    2,442,150   
     

 

 

 
        15,119,619   
     

 

 

 
            Oil & Gas Services - 1.9%  
   

Crosby U.S. Acquisition Corp.

 
    3,209,375     

3.75%, 11/23/2020

    2,976,695   
   

Drillships Financial Holding, Inc.

 
    3,667,714     

6.00%, 03/31/2021

    2,963,000   
   

Pacific Drilling S.A.

 
    510,900     

4.50%, 06/03/2018

    449,316   
   

Paragon Offshore Finance Co.

 
    997,494     

3.75%, 07/18/2021

    743,133   
   

Utex Industries, Inc.

 
    1,290,250     

5.00%, 05/22/2021

    1,217,673   
    750,000     

8.25%, 05/22/2022

    630,000   
     

 

 

 
        8,979,817   
     

 

 

 
            Packaging & Containers - 2.4%  
   

BWAY Holding Co., Inc.

 
    3,409,238     

5.50%, 08/14/2020

    3,443,330   
   

CD&R Millenium Holding Co.

 
    1,174,100     

4.50%, 07/31/2021

    1,174,593   
    2,570,000     

8.25%, 07/31/2022

    2,526,644   
   

Exopack Holdings S.A.

 
    765,313     

5.25%, 05/08/2019

    769,460   
   

Signode Industrial Group U.S., Inc.

 
    2,017,532     

3.75%, 05/01/2021

    2,013,114   
   

Tekni-Plex, Inc.

 
    270,000     

0.00%, 04/01/2022 (11)

    270,591   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  73  

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Packaging & Containers - 2.4% - (continued)  
  $        915,000     

0.00%, 03/31/2023 (11)

  $ 917,288   
     

 

 

 
        11,115,020   
     

 

 

 
            Pharmaceuticals - 1.6%  
   

PharMedium Healthcare Corp

 
    378,222     

4.25%, 01/28/2021

    375,072   
    580,000     

7.75%, 01/28/2022

    579,275   
   

PRA Holdings, Inc.

 
    2,602,297     

4.50%, 09/23/2020

    2,617,260   
   

Valeant Pharmaceuticals International, Inc.

 
    3,896,000     

4.00%, 04/01/2022

    3,921,246   
     

 

 

 
        7,492,853   
     

 

 

 
            Pipelines - 0.5%  
   

Philadelphia Energy Solutions LLC

 
    2,383,761     

6.25%, 04/04/2018

    2,336,086   
     

 

 

 
            Real Estate - 1.0%  
   

DTZ U.S. Borrower LLC

 
    2,776,618     

5.50%, 11/04/2021

    2,802,080   
    1,775,000     

9.25%, 11/04/2022

    1,791,277   
   

Realogy Corp.

 
    38,197     

2.26%, 10/10/2016

    37,815   
     

 

 

 
        4,631,172   
     

 

 

 
            Retail - 4.0%  
   

Aristocrat Leisure Ltd.

 
    4,200,000     

5.00%, 03/11/2022

    4,249,686   
   

Harbor Freight Tools USA, Inc.

 
    345,055     

4.75%, 07/26/2019

    347,212   
   

LTS Buyer LLC

 
    633,713     

4.00%, 04/13/2020

    632,920   
    1,319,413     

8.00%, 04/12/2021

    1,317,209   
   

Neiman Marcus Group, Inc.

 
    2,215,036     

4.25%, 10/25/2020

    2,219,378   
   

Rite Aid Corp.

 
    725,000     

5.75%, 08/21/2020

    733,156   
   

Sports Authority, Inc.

 
    3,653,325     

7.50%, 11/16/2017

    3,184,494   
   

Staples, Inc.

 
    3,175,000     

0.00%, 04/07/2021 (11)

    3,185,731   
   

SuperValu, Inc.

 
    2,654,928     

4.50%, 03/21/2019

    2,663,451   
     

 

 

 
        18,533,237   
     

 

 

 
            Semiconductors - 1.5%  
   

Freescale Semiconductor, Inc.

 
    2,270,902     

4.25%, 02/28/2020

    2,279,418   
    2,620,100     

5.00%, 01/15/2021

    2,641,401   
   

Lattice Semiconductor Corp.

 
    1,875,000     

5.25%, 03/10/2021

    1,884,375   
     

 

 

 
        6,805,194   
     

 

 

 
            Software - 3.9%  
   

First Data Corp.

 
    2,322,710     

4.18%, 03/24/2021

    2,338,691   
   

Hyland Software, Inc.

 
    653,400     

4.75%, 02/19/2021

    656,177   
   

Kronos, Inc.

 
    2,379,221     

4.50%, 10/30/2019

    2,391,545   
    2,256,978     

9.75%, 04/30/2020

    2,328,209   
   

MA FinanceCo., LLC

 
    3,088,235     

5.25%, 11/19/2021

    3,098,704   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 78.3% (9) - (continued)  
            Software - 3.9% - (continued)  
   

Magic Newco LLC

 
  $        1,779,161     

5.00%, 12/12/2018

  $ 1,785,460   
   

Peak 10, Inc.

 
    699,713     

5.00%, 06/17/2021

    701,245   
    1,845,000     

8.25%, 06/17/2022

    1,792,731   
   

SS&C Technologies, Inc.

 
    3,000,000     

0.00%, 02/20/2016 (11)

    3,000,000   
     

 

 

 
        18,092,762   
     

 

 

 
            Telecommunications - 2.6%  
   

Altice Financing S.A.

 
    1,390,000     

5.25%, 02/04/2022

    1,405,638   
  EUR        275,000     

5.25%, 02/04/2022

    312,566   
  $        3,006,825     

5.50%, 07/02/2019

    3,054,423   
   

Level 3 Financing, Inc.

 
    1,270,000     

4.50%, 01/31/2022

    1,270,800   
   

Salem Communications Corp.

 
    3,786,399     

4.50%, 03/13/2020

    3,787,989   
   

TransFirst Holding, Inc.

 
    1,097,250     

5.50%, 11/12/2021

    1,104,799   
    1,115,000     

9.00%, 11/12/2022

    1,122,437   
     

 

 

 
        12,058,652   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $375,035,270)

  $ 364,644,724   
     

 

 

 
EXCHANGE TRADED FUNDS - 1.8%  
            Other Investment Pools & Funds - 1.8%  
    4,000     

iShares 1-3 Year Credit Bond ETF

  $ 422,160   
    25,300     

iShares US Preferred Stock ETF

    1,010,482   
    18,400     

PowerShares Financial Preferred Portfolio

    339,480   
    45,800     

PowerShares Preferred Portfolio

    677,840   
    36,800     

PowerShares Senior Loan Portfolio

    889,824   
    22,500     

SPDR Barclays High Yield Bond ETF

    887,400   
    69,200     

SPDR Barclays Short Term High Yield Bond ETF

    2,030,328   
    18,000     

SPDR Blackstone / GSO Senior Loan ETF

    892,620   
    22,000     

SPDR S&P International Dividend ETF

    1,012,440   
     

 

 

 
   

Total Exchange Traded Funds
(cost $8,112,493)

  $ 8,162,574   
     

 

 

 
   

Total Long-Term Investments
(cost $462,969,248)

  $ 445,086,776   
     

 

 

 
SHORT-TERM INVESTMENTS - 5.8%  
      Other Investment Pools & Funds - 5.8%  
    27,029,860     

BlackRock Liquidity Funds TempFund Portfolio

  $ 27,029,860   
     

 

 

 
   

Total Short-Term Investments
(cost $27,029,860)

  $ 27,029,860   
     

 

 

 
   

Total Investments
(cost $489,999,108) ^

     101.4    $ 472,116,636   
   

Other Assets and Liabilities

     (1.4 )%       (6,308,353
      

 

 

    

 

 

 
   

Total Net Assets

     100.0    $ 465,808,283   
      

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

74

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $490,000,246 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 3,280,947   

Unrealized Depreciation

     (21,164,557
  

 

 

 

Net Unrealized Depreciation

   $     (17,883,610
  

 

 

 

 

(1)  Non-income producing.

 

(2)  This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of this security was $1,839,374, which represents 0.4% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(3)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

04/2014

     69,152       MPM Holdings, Inc.    $     2,496,994   

At April 30, 2015, the aggregate value of these securities were $1,839,374, which represents 0.4% of total net assets.

 

(4)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $44,547,878, which represents 9.6% of total net assets.

 

(5)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(6)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(7)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $15,311,692, which represents 3.3% of total net assets.

 

(8)  This security may pay interest in additional principal instead of cash.

 

(9)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(10)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(11)  All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

 

The accompanying notes are an integral part of these financial statements.

 

 

  75  

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell   Delivery
Date
    Counterparty   Contract
Amount
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

CAD

   Buy     05/29/15      TDB   $ 14,000      $ 14,084      $ 84   

CAD

   Buy     05/29/15      BMO     13,179        13,256        77   

EUR

   Buy     05/06/15      CSFB     1,435,045        1,464,897        29,852   

EUR

   Buy     05/29/15      UBS     794,159        830,107        35,948   

EUR

   Buy     05/29/15      CBK     439,231        451,561        12,330   

EUR

   Buy     05/29/15      BOA     217,710        225,781        8,071   

EUR

   Sell     05/29/15      CSFB     1,435,833        1,465,887        (30,054

EUR

   Sell     05/29/15      DEUT         13,804,732            14,273,578            (468,846

GBP

   Buy     05/29/15      BOA     1,773,385        1,807,842        34,457   

GBP

   Buy     05/29/15      DEUT     1,533,979        1,551,552        17,573   

GBP

   Sell     05/29/15      GSC         19,412,219            19,826,407        (414,188
            

 

 

 

Total

             $     (774,696
            

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BMO

   Bank of Montreal

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

CAD

   Canadian Dollar

EUR

   Euro

GBP

   British Pound
Index Abbreviations:

S&P

   Standard & Poors
Other Abbreviations:

ETF

   Exchange Traded Fund

JSC

   Joint Stock Company

LIBOR

   London Interbank Offered Rate

OJSC

   Open Joint Stock Company

SPDR

   Standard & Poor’s Depositary Receipt

 

The accompanying notes are an integral part of these financial statements.

 

 

  76  

 


The Hartford Floating Rate High Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)      Level 2 (1)     Level 3  

Assets

         

Common Stocks

   $ 1,839,374      $       $      $ 1,839,374   

Corporate Bonds

     70,440,104                70,440,104          

Senior Floating Rate Interests

     364,644,724                364,644,724          

Exchange Traded Funds

     8,162,574        8,162,574                  

Short-TermInvestments

     27,029,860        27,029,860                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     472,116,636      $     35,192,434       $     435,084,828      $     1,839,374   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 138,392      $       $ 138,392      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 138,392      $       $ 138,392      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts (2)

   $ (913,088   $       $ (913,088   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (913,088   $       $ (913,088   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Total  

Beginning balance

   $ 2,351,699      $ 2,351,699   

Purchases

     1,452,945        1,452,945   

Sales

         (1,452,945         (1,452,945

Accrued discounts/(premiums)

              

Total realized gain/(loss)

              

Net change in unrealized appreciation/depreciation

     (512,325     (512,325

Transfers into Level 3(1)

              

Transfers out of Level 3(1)

              
  

 

 

   

 

 

 

Ending balance

   $ 1,839,374      $ 1,839,374   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $512,325.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a)  Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b)  Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c)  Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  77  

 


The Hartford High Yield Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Baa / BBB

     1.4

Ba / BB

     34.3   

B

     47.7   

Caa / CCC or Lower

     7.7   

Not Rated

     1.9   

Non-Debt Securities and Other Short-Term Instruments

     5.6   

Other Assets & Liabilities

     1.4   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     0.1

Preferred Stocks

     0.7   
  

 

 

 

Total

     0.8
  

 

 

 

Fixed Income Securities

  

Convertible Bonds

     0.4

Corporate Bonds

     90.5   

Senior Floating Rate Interests

     2.1   
  

 

 

 

Total

     93.0
  

 

 

 

Short-Term Investments

     4.8

Other Assets & Liabilities

     1.4   
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

78

 


The Hartford High Yield Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
COMMON STOCKS - 0.1%  
            Energy - 0.1%      
    104,555,002     

KCA Deutag (1)(2)

  $ 279,476   
     

 

 

 
   

Total Common Stocks
(cost $1,416,929)

  $ 279,476   
     

 

 

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 0.0%  
            Asset-Backed - Finance & Insurance -0.0%  
   

Soundview NIM Trust

 
  $        920,000     

8.25%, 12/25/2036 (1)(3)(4)

      
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $915,920)

  $   
     

 

 

 
CORPORATE BONDS - 90.5%  
            Advertising - 0.2%      
   

Getty Images, Inc.

 
    1,505,000     

7.00%, 10/15/2020 (3)

  $ 880,425   
     

 

 

 
            Auto Manufacturers - 2.0%      
   

FCA US LLC / CG Co-Issuer, Inc.

 
    690,000     

8.00%, 06/15/2019

    722,810   
    3,745,000     

8.25%, 06/15/2021

    4,133,544   
   

General Motors Co.

 
    2,315,000     

4.88%, 10/02/2023

    2,507,191   
    820,000     

6.25%, 10/02/2043

    978,683   
     

 

 

 
        8,342,228   
     

 

 

 
            Auto Parts & Equipment - 0.4%      
   

ZF North America Capital, Inc.

 
    505,000     

4.50%, 04/29/2022 (3)

    504,053   
    1,210,000     

4.75%, 04/29/2025

    1,213,025   
     

 

 

 
        1,717,078   
     

 

 

 
            Chemicals - 1.4%      
   

Ineos Group Holdings plc

 
    2,285,000     

5.88%, 02/15/2019 (3)

    2,313,563   
    3,695,000     

6.13%, 08/15/2018 (3)

    3,759,662   
     

 

 

 
        6,073,225   
     

 

 

 
            Commercial Banks - 6.2%      
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        2,600,000     

7.00%, 02/19/2019 (5)(6)(7)

    2,992,395   
  $        800,000     

9.00%, 05/09/2018 (5)(6)(7)

    865,000   
   

Barclays Bank plc

 
    2,525,000     

8.25%, 12/15/2018 (5)(7)

    2,689,625   
   

Barclays plc

 
    525,000     

6.63%, 09/15/2019 (5)(7)

    520,487   
   

CIT Group, Inc.

 
    2,554,000     

5.50%, 02/15/2019 (3)

    2,672,122   
   

Credit Agricole S.A.

 
    945,000     

7.88%, 01/23/2024 (3)(5)(7)

    1,010,515   
   

Credit Suisse Group AG

 
    1,320,000     

7.50%, 12/11/2023 (3)(5)(7)

    1,412,400   
   

HBOS Capital Funding L.P.

 
    1,250,000     

6.85%, 06/23/2015 (5)(6)

    1,282,004   
   

ING Groep N.V.

 
    710,000     

6.00%, 04/16/2020 (5)(7)

    706,894   
    560,000     

6.50%, 04/16/2025 (5)(7)

    556,850   
   

Provident Funding Associates L.P.

 
    905,000     

6.75%, 06/15/2021 (3)

    862,012   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Commercial Banks - 6.2% - (continued)      
   

Royal Bank of Scotland Group plc

 
  $        2,700,000     

6.99%, 10/05/2017 (3)(5)(7)

  $ 3,199,500   
    1,800,000     

7.64%, 09/30/2017 (5)(7)

    1,971,000   
   

Societe Generale S.A.

 
    1,075,000     

6.00%, 01/27/2020 (3)(5)(7)

    1,024,582   
    745,000     

7.88%, 12/18/2023 (3)(5)(7)

    772,938   
    3,305,000     

8.25%, 11/29/2018 (5)(6)

    3,511,562   
     

 

 

 
        26,049,886   
     

 

 

 
            Commercial Services - 2.4%  
   

Quad/Graphics, Inc.

 
    3,265,000     

7.00%, 05/01/2022

    3,144,521   
   

Service Corp. International

 
    3,070,000     

4.50%, 11/15/2020

    3,139,075   
   

Servicemaster Co.

 
    3,522,000     

7.00%, 08/15/2020

    3,724,515   
     

 

 

 
        10,008,111   
     

 

 

 
            Construction Materials - 3.9%  
   

Associated Materials LLC

 
    1,210,000     

9.13%, 11/01/2017

    1,028,500   
   

Building Materials Corp. of America

 
    3,990,000     

5.38%, 11/15/2024 (3)

    4,089,750   
   

Cemex Finance LLC

 
    1,990,000     

6.00%, 04/01/2024 (3)

    2,040,944   
   

Cemex S.A.B. de C.V.

 
    1,995,000     

5.70%, 01/11/2025 (3)

    1,999,389   
    940,000     

6.13%, 05/05/2025 (3)

    964,628   
   

Nortek, Inc.

 
    2,760,000     

8.50%, 04/15/2021

    2,980,800   
   

Ply Gem Industries, Inc.

 
    3,330,000     

6.50%, 02/01/2022

    3,263,400   
     

 

 

 
        16,367,411   
     

 

 

 
            Diversified Financial Services - 3.0%  
   

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
    1,670,000     

4.50%, 05/15/2021 (3)

    1,757,675   
   

International Lease Finance Corp.

 
    4,065,000     

5.88%, 04/01/2019

    4,420,687   
    2,075,000     

5.88%, 08/15/2022

    2,339,563   
   

Nationstar Mortgage LLC / Nationstar Capital Corp.

 
    2,270,000     

6.50%, 08/01/2018

    2,309,725   
    410,000     

6.50%, 07/01/2021

    399,750   
    366,000     

7.88%, 10/01/2020

    376,980   
   

TMX Finance LLC

 
    1,570,000     

8.50%, 09/15/2018 (3)

    1,122,550   
     

 

 

 
        12,726,930   
     

 

 

 
            Electric - 1.9%  
   

DPL, Inc.

 
    3,170,000     

7.25%, 10/15/2021

    3,423,600   
   

Dynegy, Inc.

 
    1,275,000     

5.88%, 06/01/2023

    1,259,063   
   

GenOn Americas Generation LLC

 
    740,000     

8.50%, 10/01/2021

    721,500   
    1,570,000     

9.13%, 05/01/2031

    1,493,462   
   

Texas Competitive Electric Holdings Co. LLC

 
    1,460,000     

11.50%, 10/01/2020 (3)(8)

    959,950   
     

 

 

 
        7,857,575   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

79

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Engineering & Construction - 1.1%  
   

Abengoa Finance

 
  EUR        745,000     

6.00%, 03/31/2021 (3)

  $ 782,149   
    630,000     

6.00%, 03/31/2021 (6)

    661,415   
  $        1,800,000     

7.75%, 02/01/2020 (3)

    1,792,800   
   

Abengoa Greenfield S.A.

 
    1,485,000     

6.50%, 10/01/2019 (3)

    1,392,187   
     

 

 

 
        4,628,551   
     

 

 

 
            Food - 0.2%  
   

Albertson’s Holdings LLC

 
    637,000     

7.75%, 10/15/2022 (3)

    694,330   
     

 

 

 
            Food Service - 0.7%  
   

Aramark Services, Inc.

 
    2,875,000     

5.75%, 03/15/2020

    2,997,188   
     

 

 

 
            Forest Products & Paper - 0.7%  
   

Tembec Industries, Inc.

 
    2,995,000     

9.00%, 12/15/2019 (3)

    3,054,900   
     

 

 

 
            Healthcare-Products - 1.0%  
   

Alere, Inc.

 
    2,645,000     

6.50%, 06/15/2020

    2,750,800   
   

Biomet, Inc.

  

    1,205,000     

6.50%, 08/01/2020

    1,275,794   
     

 

 

 
        4,026,594   
     

 

 

 
            Healthcare-Services - 7.1%  
   

Amsurg Corp.

 
    2,380,000     

5.63%, 07/15/2022

    2,416,176   
   

Community Health Systems, Inc.

 
    615,000     

5.13%, 08/15/2018

    638,063   
    4,105,000     

6.88%, 02/01/2022

    4,356,431   
    3,320,000     

7.13%, 07/15/2020

    3,560,700   
   

Envision Healthcare Corp.

 
    970,000     

5.13%, 07/01/2022 (3)

    999,100   
   

HCA Holdings, Inc.

 
    2,645,000     

6.25%, 02/15/2021

    2,888,340   
   

HCA, Inc.

 
    1,180,000     

5.38%, 02/01/2025

    1,239,000   
    4,626,000     

7.50%, 11/15/2095

    4,510,350   
   

inVentiv Health, Inc.

 
    520,000     

9.00%, 01/15/2018 (3)

    546,000   
   

MPH Acquisition Holdings LLC

 
    1,390,000     

6.63%, 04/01/2022 (3)

    1,459,514   
   

Tenet Healthcare Corp.

 
    2,565,000     

4.75%, 06/01/2020

    2,603,475   
    1,640,000     

5.00%, 03/01/2019 (3)

    1,629,750   
    1,585,000     

8.13%, 04/01/2022

    1,729,631   
   

Wellcare Health Plans, Inc.

 
    1,160,000     

5.75%, 11/15/2020

    1,229,600   
     

 

 

 
        29,806,130   
     

 

 

 
            Holding Companies-Diversified - 0.2%  
   

Argos Merger Sub, Inc.

 
    836,000     

7.13%, 03/15/2023 (3)

    877,800   
     

 

 

 
            Home Builders - 2.7%  
   

K Hovnanian Enterprises, Inc.

 
    570,000     

7.00%, 01/15/2019 (3)

    544,350   
    245,000     

8.00%, 11/01/2019 (3)

    237,650   
    2,426,000     

9.13%, 11/15/2020 (3)

    2,571,560   
   

KB Home

 
    1,030,000     

7.00%, 12/15/2021

    1,073,775   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Home Builders - 2.7% - (continued)  
  $        1,895,000     

7.50%, 09/15/2022

  $ 1,980,275   
    1,510,000     

8.00%, 03/15/2020

    1,668,550   
   

Lennar Corp.

 
    1,005,000     

4.75%, 12/15/2017

    1,050,225   
    2,095,000     

4.75%, 11/15/2022

    2,118,569   
     

 

 

 
        11,244,954   
     

 

 

 
            Household Products/Wares - 0.6%  
   

Sun Products Corp.

 
    2,760,000     

7.75%, 03/15/2021 (3)

    2,432,250   
     

 

 

 
            Internet - 1.2%  
   

Netflix, Inc.

 
    760,000     

5.50%, 02/15/2022 (3)

    799,900   
    1,190,000     

5.88%, 02/15/2025 (3)

    1,267,350   
   

Zayo Group LLC

 
    2,985,000     

6.00%, 04/01/2023 (3)

    2,999,925   
     

 

 

 
        5,067,175   
     

 

 

 
            Iron/Steel - 2.2%  
   

AK Steel Corp.

 
    1,580,000     

7.63%, 05/15/2020

    1,370,650   
    1,935,000     

7.63%, 10/01/2021

    1,596,375   
    1,460,000     

8.38%, 04/01/2022

    1,255,600   
   

ArcelorMittal

 
    210,000     

7.50%, 03/01/2041

    214,725   
    1,175,000     

7.75%, 10/15/2039

    1,213,187   
   

Steel Dynamics, Inc.

 
    1,095,000     

5.50%, 10/01/2024 (3)

    1,130,588   
   

United States Steel Corp.

 
    2,526,000     

7.38%, 04/01/2020

    2,639,670   
     

 

 

 
        9,420,795   
     

 

 

 
            IT Services - 1.0%  
   

SunGard Data Systems, Inc.

 
    3,190,000     

6.63%, 11/01/2019

    3,325,575   
    783,000     

7.38%, 11/15/2018

    814,320   
     

 

 

 
        4,139,895   
     

 

 

 
            Machinery-Diversified - 0.8%  
   

Case New Holland Industrial, Inc.

 
    3,104,000     

7.88%, 12/01/2017

    3,422,160   
     

 

 

 
            Media - 7.7%  
   

CCO Holdings LLC

 
    105,000     

5.13%, 02/15/2023

    103,787   
    495,000     

5.75%, 09/01/2023

    499,950   
    2,920,000     

7.38%, 06/01/2020

    3,109,800   
   

Cequel Communications Holdings I LLC

 
    630,000     

5.13%, 12/15/2021 (3)

    630,914   
    3,305,000     

5.13%, 12/15/2021 (3)

    3,317,394   
   

DISH DBS Corp.

 
    1,250,000     

5.00%, 03/15/2023

    1,184,375   
    3,270,000     

6.75%, 06/01/2021

    3,462,374   
    2,812,000     

7.88%, 09/01/2019

    3,174,045   
   

Gannett Co., Inc.

 
    2,820,000     

4.88%, 09/15/2021 (3)

    2,897,550   
    2,380,000     

5.13%, 10/15/2019

    2,507,925   
    270,000     

5.50%, 09/15/2024 (3)

    280,800   
    800,000     

6.38%, 10/15/2023

    866,000   
   

Gray Television, Inc.

 
    895,000     

7.50%, 10/01/2020

    950,937   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  80  

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Media - 7.7% - (continued)  
   

Harron Communications LP/Harron Finance Corp.

 
  $        950,000     

9.13%, 04/01/2020 (3)

  $ 1,042,625   
   

NBCUniversal Enterprise, Inc.

 
    1,980,000     

5.25%, 03/29/2049 (3)(5)

    2,088,900   
   

Quebecor Media, Inc.

 
    1,540,000     

5.75%, 01/15/2023

    1,590,050   
   

Unitymedia Hessen GmbH & Co.

 
    3,045,000     

5.50%, 01/15/2023 (3)

    3,185,831   
   

Videotron Ltd.

 
    990,000     

5.00%, 07/15/2022

    1,021,482   
    170,000     

9.13%, 04/15/2018

    173,502   
     

 

 

 
        32,088,241   
     

 

 

 
            Mining - 1.9%  
   

Constellium N.V.

 
    1,125,000     

5.75%, 05/15/2024 (3)

    1,082,812   
    1,820,000     

8.00%, 01/15/2023 (3)

    1,963,325   
   

FMG Resources August 2006 Pty Ltd.

 
    6,550,000     

6.88%, 04/01/2022 (3)

    4,961,625   
    110,000     

9.75%, 03/01/2022 (3)

    113,369   
     

 

 

 
        8,121,131   
     

 

 

 
            Office/Business Equipment - 1.3%  
   

CDW LLC / CDW Finance Corp.

 
    405,000     

5.00%, 09/01/2023

    417,150   
    560,000     

5.50%, 12/01/2024

    595,280   
    4,085,000     

6.00%, 08/15/2022

    4,401,588   
     

 

 

 
        5,414,018   
     

 

 

 
            Oil & Gas - 7.1%  
   

Antero Resources Corp.

 
    470,000     

5.38%, 11/01/2021

    474,700   
    575,000     

5.63%, 06/01/2023 (3)

    587,219   
    2,510,000     

6.00%, 12/01/2020

    2,563,337   
   

Blue Racer Midstream LLC

 
    1,040,000     

6.13%, 11/15/2022 (3)

    1,081,600   
   

Bonanza Creek Energy, Inc.

 
    2,395,000     

6.75%, 04/15/2021

    2,436,912   
   

Concho Resources, Inc.

 
    925,000     

5.50%, 10/01/2022

    941,280   
   

Diamondback Energy, Inc.

 
    2,215,000     

7.63%, 10/01/2021

    2,397,737   
   

Everest Acquisition LLC

 
    1,800,000     

9.38%, 05/01/2020

    1,926,000   
   

Laredo Petroleum, Inc.

 
    700,000     

5.63%, 01/15/2022

    704,375   
    1,360,000     

6.25%, 03/15/2023

    1,407,600   
    575,000     

7.38%, 05/01/2022

    615,250   
   

Matador Resources Co.

 
    375,000     

6.88%, 04/15/2023 (3)

    384,844   
   

MEG Energy Corp.

 
    2,760,000     

7.00%, 03/31/2024 (3)

    2,719,152   
   

Paragon Offshore plc

 
    3,345,000     

6.75%, 07/15/2022 (3)

    1,388,175   
   

QEP Resources, Inc.

 
    35,000     

5.25%, 05/01/2023

    35,088   
    200,000     

5.38%, 10/01/2022

    202,500   
    235,000     

6.80%, 03/01/2020

    247,338   
   

Range Resources Corp.

 
    455,000     

5.00%, 08/15/2022

    461,825   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Oil & Gas - 7.1% - (continued)  
   

Rice Energy, Inc.

 
  $        500,000     

7.25%, 05/01/2023 (3)

  $ 520,000   
   

Rosetta Resources, Inc.

 
    1,590,000     

5.63%, 05/01/2021

    1,591,988   
    1,120,000     

5.88%, 06/01/2022

    1,117,200   
   

Tullow Oil plc

 
    2,270,000     

6.00%, 11/01/2020 (3)

    2,088,400   
    2,030,000     

6.25%, 04/15/2022 (3)

    1,857,450   
   

WPX Energy, Inc.

 
    1,380,000     

5.25%, 09/15/2024

    1,273,050   
    920,000     

6.00%, 01/15/2022

    901,950   
     

 

 

 
        29,924,970   
     

 

 

 
            Packaging & Containers - 0.9%  
   

Ardagh Finance Holdings S.A.

 
    1,252,612     

8.63%, 06/15/2019 (3)(9)

    1,337,163   
   

Ardagh Packaging Finance plc

 
    685,000     

6.00%, 06/30/2021 (3)

    695,275   
    1,457,000     

9.13%, 10/15/2020 (3)

    1,566,275   
     

 

 

 
        3,598,713   
     

 

 

 
            Pharmaceuticals - 3.5%  
   

Endo Finance LLC

 
    2,645,000     

6.00%, 02/01/2025 (3)

    2,712,778   
   

Grifols Worldwide Operations Ltd.

 
    1,015,000     

5.25%, 04/01/2022 (3)

    1,037,838   
   

PRA Holdings, Inc.

 
    1,692,000     

9.50%, 10/01/2023 (3)

    1,909,845   
   

Salix Pharmaceuticals Ltd.

 
    4,076,000     

6.50%, 01/15/2021 (3)

    4,626,260   
   

Valeant Pharmaceuticals International, Inc.

 
    965,000     

6.13%, 04/15/2025 (3)

    995,759   
   

VRX Escrow Corp.

 
    3,280,000     

5.88%, 05/15/2023 (3)

    3,366,100   
     

 

 

 
        14,648,580   
     

 

 

 
            Pipelines - 0.6%  
   

El Paso Corp.

 
    595,000     

7.00%, 06/15/2017

    652,570   
   

Energy Transfer Equity L.P.

 
    1,757,000     

7.50%, 10/15/2020

    1,976,625   
     

 

 

 
        2,629,195   
     

 

 

 
            Retail - 3.7%  
   

99 Cents Only Stores

 
    2,405,000     

11.00%, 12/15/2019

    2,513,225   
   

CEC Entertainment, Inc.

 
    1,415,000     

8.00%, 02/15/2022

    1,448,606   
   

Family Tree Escrow LLC

 
    230,000     

5.25%, 03/01/2020 (3)

    240,925   
    1,125,000     

5.75%, 03/01/2023 (3)

    1,181,250   
   

GRD Holding III Corp.

 
    2,210,000     

10.75%, 06/01/2019 (3)

    2,397,850   
   

Michaels Stores, Inc.

 
    3,060,000     

5.88%, 12/15/2020 (3)

    3,174,750   
   

Party City Holdings, Inc.

 
    1,755,000     

8.88%, 08/01/2020

    1,897,594   
   

PC Nextco Holdings LLC / PC Nextco Finance, Inc.

 
    2,585,000     

8.75%, 08/15/2019

    2,636,700   
     

 

 

 
        15,490,900   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

81

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Semiconductors - 2.6%  
   

Entegris, Inc.

 
  $        2,775,000     

6.00%, 04/01/2022 (3)

  $ 2,899,875   
   

Freescale Semiconductor, Inc.

 
    5,565,000     

6.00%, 01/15/2022 (3)

    6,012,982   
   

Sensata Technologies B.V.

 
    1,165,000     

5.00%, 10/01/2025 (3)

    1,202,862   
    685,000     

5.63%, 11/01/2024 (3)

    731,238   
     

 

 

 
        10,846,957   
     

 

 

 
            Software - 7.0%  
   

Activision Blizzard, Inc.

 
    4,802,000     

5.63%, 09/15/2021 (3)

    5,132,137   
    1,465,000     

6.13%, 09/15/2023 (3)

    1,614,254   
   

Audatex North America, Inc.

 
    3,841,000     

6.00%, 06/15/2021 (3)

    3,967,023   
   

Emdeon, Inc.

 
    1,625,000     

11.00%, 12/31/2019

    1,779,375   
   

First Data Corp.

 
    990,000     

6.75%, 11/01/2020 (3)

    1,054,350   
    1,960,000     

7.38%, 06/15/2019 (3)

    2,035,950   
    4,350,000     

8.25%, 01/15/2021 (3)

    4,612,349   
   

Infor Software Parent LLC

 
    3,315,000     

7.13%, 05/01/2021 (3)(9)

    3,323,288   
   

Infor US, Inc.

 
    2,710,000     

6.50%, 05/15/2022 (3)

    2,784,525   
    855,000     

11.50%, 07/15/2018

    924,469   
   

MSCI, Inc.

 
    2,005,000     

5.25%, 11/15/2024 (3)

    2,085,200   
     

 

 

 
        29,312,920   
     

 

 

 
            Telecommunications - 13.3%  
   

Alcatel-Lucent USA, Inc.

 
    3,070,000     

6.45%, 03/15/2029

    3,430,725   
    660,000     

6.50%, 01/15/2028

    739,200   
    1,810,000     

6.75%, 11/15/2020 (3)

    1,950,275   
   

Altice Financing S.A.

 
    235,000     

6.50%, 01/15/2022 (3)

    239,700   
    530,000     

6.63%, 02/15/2023 (3)

    545,900   
    2,100,000     

7.88%, 12/15/2019 (3)

    2,231,355   
    250,000     

8.13%, 01/15/2024 (3)

    263,125   
    925,000     

9.88%, 12/15/2020 (3)

    1,020,969   
   

DigitalGlobe, Inc.

 
    2,190,000     

5.25%, 02/01/2021 (3)

    2,206,425   
   

Intelsat Jackson Holdings S.A.

 
    190,000     

6.63%, 12/15/2022

    187,625   
    1,140,000     

7.50%, 04/01/2021

    1,184,175   
   

Level 3 Financing, Inc.

 
    2,380,000     

5.38%, 08/15/2022

    2,430,575   
    2,245,000     

6.13%, 01/15/2021

    2,376,894   
    2,319,000     

7.00%, 06/01/2020

    2,484,229   
   

PAETEC Holding Corp.

 
    961,000     

9.88%, 12/01/2018

    1,011,212   
   

SoftBank Corp.

 
    2,940,000     

4.50%, 04/15/2020 (3)

    3,009,825   
   

Sprint Communications, Inc.

 
    3,470,000     

7.00%, 03/01/2020 (3)

    3,838,687   
    1,533,000     

9.00%, 11/15/2018 (3)

    1,744,263   
   

Sprint Corp.

 
    4,070,000     

7.25%, 09/15/2021

    4,085,262   
    2,935,000     

7.88%, 09/15/2023

    2,946,006   
   

Syniverse Holdings, Inc.

 
    3,945,000     

9.13%, 01/15/2019

    3,708,300   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 90.5% - (continued)  
            Telecommunications - 13.3% - (continued)  
   

T-Mobile USA, Inc.

 
  $        225,000     

6.13%, 01/15/2022

  $ 232,031   
    795,000     

6.46%, 04/28/2019

    820,837   
    330,000     

6.50%, 01/15/2024

    344,438   
    3,125,000     

6.63%, 11/15/2020

    3,261,719   
    2,440,000     

6.63%, 04/28/2021

    2,574,200   
    1,505,000     

6.73%, 04/28/2022

    1,585,894   
   

Wind Acquisition Finance S.A.

 
  EUR        3,805,000     

4.00%, 07/15/2020 (3)

    4,326,533   
  $        770,000     

6.50%, 04/30/2020 (3)

    818,125   
     

 

 

 
        55,598,504   
     

 

 

 
   

Total Corporate Bonds
(cost $377,295,118)

  $ 379,509,720   
     

 

 

 
SENIOR FLOATING RATE INTERESTS - 2.1% (10)  
            Coal - 0.3%  
   

Arch Coal, Inc.

 
    2,042,186     

6.25%, 05/16/2018

  $ 1,518,284   
     

 

 

 
            Electric - 0.6%  
   

Texas Competitive Electric Holdings Co. LLC

 
    4,200,000     

4.67%, 10/10/2017 (4)

    2,596,356   
     

 

 

 
            Insurance - 0.2%  
   

Asurion LLC

 
    830,000     

8.50%, 03/03/2021

    841,205   
     

 

 

 
            Machinery-Diversified - 0.5%  
   

Gardner Denver, Inc.

 
    2,028,553     

4.25%, 07/30/2020

    1,978,042   
     

 

 

 
            Retail - 0.5%  
   

Neiman Marcus Group, Inc.

 
    1,975,533     

4.25%, 10/25/2020

    1,979,404   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $9,893,171)

  $ 8,913,291   
     

 

 

 
CONVERTIBLE BONDS - 0.4%  
            Home Builders - 0.1%  
   

M/I Homes, Inc.

 
    543,000     

3.00%, 03/01/2018

  $ 536,891   
     

 

 

 
            Oil & Gas - 0.3%  
   

Cobalt International Energy, Inc.

 
    1,645,000     

2.63%, 12/01/2019

    1,262,538   
     

 

 

 
   

Total Convertible Bonds
(cost $2,341,557)

  $ 1,799,429   
     

 

 

 
PREFERRED STOCKS - 0.7%  
            Diversified Financials - 0.7%  
    75     

Citigroup Capital

  $ 1,942   
    108,616     

GMAC Capital Trust I Series 2

    2,854,428   
     

 

 

 
   

Total Preferred Stocks
(cost $2,568,705)

  $ 2,856,370   
     

 

 

 
   

Total Long-Term Investments
(cost $394,431,400)

  $ 393,358,286   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

82

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 4.8%  
          Other Investment Pools & Funds -4.8%      
    20,305,952     

Fidelity Money Market Class 1

  $ 20,305,952   
     

 

 

 
   

Total Short-Term Investments
(cost $20,305,952)

  $ 20,305,952   
     

 

 

 
       
   

Total Investments
(cost $414,737,352) ^

    98.6   $ 413,664,238   
   

Other Assets and Liabilities

    1.4     5,764,085   
     

 

 

   

 

 

 
   

Total Net Assets

    100.0   $ 419,428,323   
     

 

 

   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

83

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $414,944,971 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     12,099,580   

Unrealized Depreciation

     (13,380,313
  

 

 

 

Net Unrealized Depreciation

   $ (1,280,733
  

 

 

 

 

(1)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $279,476, which represents 0.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(2)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

03/2011

     104,555,002       KCA Deutag    $     1,416,929   

At April 30, 2015, the aggregate value of these securities were $279,476, which represents 0.1% of total net assets.

 

(3)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $173,644,029, which represents 41.4% of total net assets.

 

(4)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(5)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(6)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $9,312,376, which represents 2.2% of total net assets.

 

(7)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(8)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(9)  This security may pay interest in additional principal instead of cash.

 

(10)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

The accompanying notes are an integral part of these financial statements.

 

 

  84  

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015

 

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost
Basis
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.HY.22

  USD     8,322,600        5.00   06/20/19     514,239      $ 761,043      $ 246,804   

CDX.NA.HY.23

  USD     7,237,300        5.00   12/20/19     398,595        632,583        233,988   
         

 

 

   

 

 

   

 

 

 

Total

          $ 912,834      $ 1,393,626      $ 480,792   
         

 

 

   

 

 

   

 

 

 

Total

          $ 912,834      $ 1,393,626      $ 480,792   
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Sell      05/29/15       DEUT    $ 8,705,227       $ 9,000,880       $ (295,653
  

 

  

 

 

    

 

  

 

 

    

 

 

    

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.
Currency Abbreviations:

EUR

   Euro

USD

   United States Dollar
Index Abbreviations:

CDX.NA.HY

   Credit Derivatives North American High Yield

MSCI

   Morgan Stanley Capital International
Other Abbreviations:

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

 

The accompanying notes are an integral part of these financial statements.

 

 

  85  

 


The Hartford High Yield Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)      Level 2 (1)     Level 3  

Assets

         

Common Stocks

   $ 279,476      $       $      $ 279,476   

Asset & Commercial Mortgage Backed Securities

                             

Corporate Bonds

     379,509,720                379,509,720          

Senior Floating Rate Interests

     8,913,291                8,913,291          

Convertible Bonds

     1,799,429                1,799,429          

Preferred Stocks

     2,856,370        2,856,370                  

Short-Term Investments

     20,305,952        20,305,952                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     413,664,238      $     23,162,322       $     390,222,440      $     279,476   
  

 

 

   

 

 

    

 

 

   

 

 

 

Swaps - Credit Default (2)

   $ 480,792      $       $ 480,792      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 480,792      $       $ 480,792      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts (2)

   $ (295,653   $       $ (295,653   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (295,653   $       $ (295,653   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common Stocks     Total  

Beginning balance

   $ 510,751      $ 510,751   

Purchases

              

Sales

              

Accrued discounts/(premiums)

              

Total realized gain/(loss)

              

Net change in unrealized appreciation/depreciation

     (231,275     (231,275

Transfers into Level 3(1)

              

Transfers out of Level 3(1)

              
  

 

 

   

 

 

 

Ending balance

   $ 279,476      $ 279,476   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $(231,275).

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a)  Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b)  Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c)  Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  86  

 


The Hartford Inflation Plus Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     93.8

A

     0.2   

Baa/BBB

     2.1   

Ba/BB

     2.4   

B

     0.9   

Not Rated

     0.3   

Non-Debt Securities and Other Short-Term Instruments

     0.9   

Other Assets & Liabilities

     (0.6
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Foreign Government Obligations

     1.3

Senior Floating Rate Interests

     4.6   

U.S. Government Securities

     93.8   
  

 

 

 

Total

     99.7
  

 

 

 

Short-Term Investments

     0.9

Other Assets & Liabilities

     (0.6
  

 

 

 

Total

     100.0
  

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

87

 


The Hartford Inflation Plus Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 1.3%  
            Brazil - 0.3%  
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        8,639,209     

6.00%, 05/15/2019 (1)

  $ 2,850,969   
     

 

 

 
            Chile - 0.2%  
   

Bonos de la Tesoreria de la Republica

 
  CLP        737,637,600     

3.00%, 01/01/2040 (1)

    1,527,176   
     

 

 

 
            Colombia - 0.2%  
   

Colombian TES

 
  COP        4,440,729,888     

3.50%, 03/10/2021 (1)

    1,925,666   
     

 

 

 
            Mexico - 0.2%  
   

Mexican Udibonos

 
  MXN        31,366,997     

4.00%, 11/15/2040 (1)

    2,245,349   
     

 

 

 
            Turkey - 0.1%  
   

Turkey Government Bond

 
  TRY        2,368,747     

2.50%, 05/04/2016 (1)

    884,093   
     

 

 

 
            Uruguay - 0.3%  
   

Uruguay Government International Bond

 
  UYU        62,177,850     

4.25%, 04/05/2027 (1)

    2,336,635   
     

 

 

 
   

Total Foreign Government Obligations
(cost $12,109,280)

  $ 11,769,888   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 4.6% (2)  
            Aerospace/Defense - 0.1%  
   

BE Aerospace, Inc.

 
  $        538,650     

4.00%, 12/16/2021

  $ 544,036   
   

DigitalGlobe, Inc.

 
    583,100     

3.75%, 01/31/2020

    584,313   
     

 

 

 
        1,128,349   
     

 

 

 
            Airlines - 0.1%  
   

Delta Air Lines, Inc.

 
    1,305,247     

3.25%, 04/20/2017

    1,304,764   
     

 

 

 
            Auto Manufacturers - 0.2%  
   

Chrysler Group LLC

 
    1,447,548     

3.50%, 05/24/2017

    1,448,995   
     

 

 

 
            Auto Parts & Equipment - 0.2%  
   

Goodyear Tire and Rubber Co.

 
    1,666,667     

4.75%, 04/30/2019

    1,680,817   
     

 

 

 
            Biotechnology - 0.3%  
   

Royalty Pharma

 
    2,288,420     

3.25%, 11/09/2018

    2,292,424   
     

 

 

 
            Chemicals - 0.2%  
   

Ineos U.S. Finance LLC

 
    995,757     

3.75%, 05/04/2018

    997,131   
   

Minerals Technologies, Inc.

 
    654,592     

4.00%, 05/07/2021

    657,459   
     

 

 

 
        1,654,590   
     

 

 

 
            Commercial Services - 0.0%  
   

Vantiv Holding LLC

 
    348,354     

3.75%, 06/13/2021

    349,552   
     

 

 

 
            Diversified Financial Services - 0.1%  
   

Delos Finance S.a.r.l.

 
    685,000     

3.50%, 03/06/2021

    686,343   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 4.6% (2) - (continued)  
            Electric - 0.1%  
   

Calpine Corp.

 
  $        1,194,375     

4.00%, 10/09/2019

  $ 1,199,356   
     

 

 

 
            Energy-Alternate Sources - 0.1%  
   

MEG Energy Corp.

 
    855,121     

3.75%, 03/31/2020

    843,629   
     

 

 

 
            Food - 0.1%  
   

H.J. Heinz Co.

 
    612,543     

3.25%, 06/05/2020

    613,308   
     

 

 

 
            Healthcare-Products - 0.1%  
   

Truven Health Analytics

 
    486,325     

4.50%, 06/06/2019

    486,529   
     

 

 

 
            Healthcare-Services - 0.5%  
   

Community Health Systems, Inc.

 
    316,000     

4.25%, 01/27/2021

    317,874   
   

HCA, Inc.

 
    1,970,000     

3.03%, 05/01/2018

    1,973,132   
   

IMS Health, Inc.

 
    1,476,964     

3.50%, 03/17/2021

    1,476,225   
   

MPH Acquisition Holdings LLC

 
    388,636     

3.75%, 03/31/2021

    388,310   
   

Ortho-Clinical Diagnostics, Inc.

 
    431,738     

4.75%, 06/30/2021

    430,227   
     

 

 

 
        4,585,768   
     

 

 

 
            Insurance - 0.2%  
   

Asurion LLC

 
    1,509,199     

5.00%, 05/24/2019

    1,516,473   
     

 

 

 
            Media - 0.3%  
   

Charter Communications Operating LLC

 
    961,522     

3.00%, 01/03/2021

    958,714   
   

Numericable U.S. LLC

 
    254,478     

4.50%, 05/21/2020

    255,432   
    294,147     

4.50%, 05/21/2020

    295,250   
   

Virgin Media Bristol LLC

 
    854,809     

3.50%, 06/07/2020

    855,186   
     

 

 

 
        2,364,582   
     

 

 

 
            Metal Fabricate/Hardware - 0.2%  
   

Rexnord LLC

 
    2,168,313     

4.00%, 08/21/2020

    2,174,948   
     

 

 

 
            Mining - 0.1%  
   

FMG Resources August 2006 Pty Ltd.

 
    1,004,405     

3.75%, 06/30/2019

    905,702   
     

 

 

 
            Oil & Gas - 0.1%  
   

Energy Transfer Equity L.P.

 
    1,200,250     

3.25%, 12/02/2019

    1,194,405   
     

 

 

 
            Packaging & Containers - 0.2%  
   

Berry Plastics Holding Corp.

 
    1,004,500     

3.50%, 02/08/2020

    1,004,309   
   

Reynolds Group Holdings, Inc.

 
    1,050,803     

4.50%, 12/01/2018

    1,060,786   
     

 

 

 
        2,065,095   
     

 

 

 
            Pharmaceuticals - 0.1%  
   

Grifols Worldwide Operations Ltd.

 
    866,250     

3.18%, 02/27/2021

    868,164   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

88

 


The Hartford Inflation Plus Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 4.6% (2) - (continued)  
            Retail - 0.1%  
   

Michaels Stores, Inc.

 
  $        397,000     

4.00%, 01/28/2020

  $ 398,929   
   

Staples, Inc.

 
    160,000     

0.00%, 04/07/2021 (3)

    160,541   
     

 

 

 
        559,470   
     

 

 

 
            Semiconductors - 0.3%  
   

Avago Technologies Cayman Ltd.

 
    1,161,430     

3.75%, 05/06/2021

    1,166,273   
   

Freescale Semiconductor, Inc.

 
    1,960,188     

4.25%, 02/28/2020

    1,967,538   
     

 

 

 
        3,133,811   
     

 

 

 
            Software - 0.4%  
   

Infor U.S., Inc.

 
    1,178,582     

3.75%, 06/03/2020

    1,176,295   
   

Kronos, Inc.

 
    1,019,837     

4.50%, 10/30/2019

    1,025,119   
   

Magic Newco LLC

 
    1,711,156     

5.00%, 12/12/2018

    1,717,214   
     

 

 

 
        3,918,628   
     

 

 

 
            Telecommunications - 0.4%  
   

Level 3 Financing, Inc.

 
    630,000     

4.50%, 01/31/2022

    630,397   
   

Telesat Canada

 
    1,512,897     

3.50%, 03/28/2019

    1,510,068   
   

Univision Communications, Inc.

 
    1,004,406     

4.00%, 03/01/2020

    1,004,958   
   

Ziggo Financing Partnership

 
    305,074     

3.50%, 01/15/2022

    305,107   
    196,596     

3.50%, 01/15/2022

    196,618   
    323,330     

3.50%, 01/15/2022

    323,366   
     

 

 

 
        3,970,514   
     

 

 

 
            Textiles - 0.1%  
   

PVH Corp.

 
    692,622     

3.25%, 02/13/2020

    696,182   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $41,513,079)

  $ 41,642,398   
     

 

 

 
U.S. GOVERNMENT AGENCIES - 0.0%  
            FNMA - 0.0%  
   

FNMA

 
    1,733     

10.50%, 12/01/2018

  $ 1,742   
     

 

 

 
            GNMA - 0.0%  
   

GNMA

 
    413     

11.00%, 12/20/2015

    417   
     

 

 

 
   

Total U.S. Government Agencies
(cost $2,210)

  $ 2,159   
     

 

 

 
U.S. GOVERNMENT SECURITIES - 93.8%  
            U.S. Treasury Securities - 93.8%  
            U.S. Treasury Bonds - 5.8%  
    14,060,303     

0.25%, 01/15/2025 (1)

  $ 14,240,444   
    31,032,871     

2.38%, 01/15/2025 (1)

    37,738,888   
     

 

 

 
        51,979,332   
     

 

 

 
            U.S. Treasury Notes - 88.0%  
    45,903,020     

0.13%, 04/15/2017 (1)

    46,882,039   
    56,778,416     

0.13%, 04/15/2018 (1)

    58,131,332   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT SECURITIES - 93.8% - (continued)  
            U.S. Treasury Notes - 88.0% - (continued)  
  $        49,602,754     

0.13%, 04/15/2019 (1)

  $ 50,738,211   
    39,886,926     

0.13%, 04/15/2020 (1)

    40,693,999   
    71,601,746     

0.13%, 01/15/2022 (1)

    72,440,847   
    62,432,146     

0.13%, 07/15/2022 (1)

    63,397,909   
    62,021,750     

0.13%, 01/15/2023 (1)

    62,535,352   
    47,368,591     

0.13%, 07/15/2024 (1)

    47,635,039   
    55,874,280     

0.38%, 07/15/2023 (1)

    57,554,867   
    41,781,360     

0.63%, 07/15/2021 (1)

    43,912,878   
    60,525,219     

0.63%, 01/15/2024 (1)

    63,390,725   
    40,983,943     

1.13%, 01/15/2021 (1)

    44,096,182   
    51,350,771     

1.25%, 07/15/2020 (1)

    55,847,969   
    26,616,492     

1.38%, 01/15/2020 (1)

    28,849,775   
    10,931,000     

2.13%, 01/15/2019 (1)

    12,049,722   
    26,242,788     

2.38%, 01/15/2017 (1)

    27,821,449   
    17,925,393     

2.50%, 07/15/2016 (1)

    18,830,069   
     

 

 

 
        794,808,364   
     

 

 

 
   

Total U.S. Government Securities
(cost $846,407,354)

  $ 846,787,696   
     

 

 

 
   

Total Long-Term Investments
(cost $900,031,923)

  $ 900,202,141   
     

 

 

 
SHORT-TERM INVESTMENTS - 0.9%  
            Other Investment Pools & Funds - 0.9%      
    8,395,377     

Fidelity Money Market Class 1

  $ 8,395,377   
     

 

 

 
   

Total Short-Term Investments
(cost $8,395,377)

  $ 8,395,377   
     

 

 

 
     

Total Investments
(cost $908,427,300) ^

    100.6   $ 908,597,518   
     

Other Assets and Liabilities

    (0.6 )%      (5,193,579
       

 

 

   

 

 

 
     

Total Net Assets

    100.0   $ 903,403,939   
       

 

 

   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

89

 


The Hartford Inflation Plus Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $915,653,263 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 4,936,109   

Unrealized Depreciation

         (11,991,854
  

 

 

 

Net Unrealized Depreciation

   $ (7,055,745
  

 

 

 

 

(1)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(2)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(3)  All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015

 

Counterparty

   Payments made
by Fund
  Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

DEUT

   1.11% Fixed   CPURNSA      USD         18,925,000         01/15/17       $       $       $ 6,738      $ 6,738   

BCLY

   1.41% Fixed   CPURNSA      USD         16,050,000         01/15/18                             (21,823         (21,823
                

 

 

    

 

 

    

 

 

   

 

 

 

Total

                 $     —       $     —       $ (15,085   $ (15,085
                

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value*
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/29/15       GSC    $ 5,260,308       $ 5,354,138       $ 93,830   

AUD

   Sell      05/29/15       CBA      5,333,328         5,309,105         24,223   

AUD

   Sell      05/29/15       CBA      2,633,999         2,655,343         (21,344

AUD

   Sell      05/29/15       BOA      2,633,098         2,654,553         (21,455

BRL

   Buy      06/17/15       HSBC      1,297,001         1,390,668         93,667   

BRL

   Sell      06/17/15       HSBC      1,332,958         1,390,668         (57,710

CAD

   Buy      05/29/15       TDB      2,662,499         2,678,558         16,059   

CAD

   Buy      05/29/15       BMO      2,662,120         2,677,729         15,609   

CAD

   Buy      05/29/15       CBA      5,251,121         5,250,238         (883

CHF

   Sell      05/29/15       UBS      10,758,073         11,109,618         (351,545

COP

   Sell      06/17/15       BNP      892,976         984,683         (91,707

EUR

   Sell      05/29/15       DEUT      11,011,629         11,385,614         (373,985

GBP

   Sell      05/29/15       GSC      5,329,758         5,443,476         (113,718

JPY

   Sell      05/29/15       DEUT      1,801,094         1,793,509         7,585   

JPY

   Sell      05/29/15       MSC      5,261,556         5,271,611         (10,055

TRY

   Sell      06/17/15       BOA      456,507         438,926         17,581   
                 

 

 

 

Total

                  $     (773,848
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

90

 


The Hartford Inflation Plus Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

MSC

   Morgan Stanley

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CLP

   Chilean Peso

COP

   Colombian Peso

EUR

   Euro

GBP

   British Pound

JPY

   Japanese Yen

MXN

   Mexican Peso

TRY

   Turkish Lira

UYU

   Uruguayan Peso
Index Abbreviations:

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted
Other Abbreviations:

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

LIBOR

   London Interbank Offered Rate

OTC

   Over-the-Counter

 

The accompanying notes are an integral part of these financial statements.

 

 

  91  

 


The Hartford Inflation Plus Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)      Level 2 (1)     Level 3  

Assets

         

Foreign Government Obligations

   $ 11,769,888      $       $ 11,769,888      $   

Senior Floating Rate Interests

     41,642,398                41,642,398          

U.S. Government Agencies

     2,159                2,159          

U.S. Government Securities

     846,787,696                846,787,696          

Short-Term Investments

     8,395,377        8,395,377                  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $     908,597,518      $     8,395,377       $     900,202,141      $     —   
  

 

 

   

 

 

    

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 268,554      $       $ 268,554      $   

Swaps - Interest Rate (2)

     6,738                6,738          
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 275,292      $       $ 275,292      $   
  

 

 

   

 

 

    

 

 

   

 

 

 

Liabilities

         

Foreign Currency Contracts (2)

   $ (1,042,402   $       $ (1,042,402   $   

Swaps - Interest Rate (2)

     (21,823             (21,823       
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (1,064,225   $       $ (1,064,225   $   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $135,197,385 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

92

 


The Hartford Quality Bond Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     83.4

Aa/AA

     5.0   

A

     3.4   

Ba/BB

     0.2   

B

     0.2   

Caa/CCC or Lower

     4.7   

Not Rated

     1.6   

Non-Debt Securities and Other Short-Term Instruments

     54.2   

Other Assets & Liabilities

     (52.7
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     26.3

Municipal Bonds

     0.4   

U.S. Government Agencies

     68.5   

U.S. Government Securities

     3.3   
  

 

 

 

Total

     98.5
  

 

 

 

Short-Term Investments

     54.2

Other Assets & Liabilities

     (52.7
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

93

 


The Hartford Quality Bond Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.3%  
            Asset-Backed - Automobile - 2.2%  
   

AmeriCredit Automobile Receivables Trust

 
  $        250,000     

3.38%, 04/09/2018

  $ 256,321   
   

Carfinance Capital Automotive Trust

 
    5,414     

1.65%, 07/17/2017 (1)

    5,416   
   

First Investors Automotive Owner Trust

 
    150,000     

2.47%, 05/15/2018 (1)

    151,062   
   

Santander Drive Automotive Receivables Trust

 
    44,028     

3.82%, 08/15/2017

    44,329   
   

Westlake Automobile Receivables Trust

 
    200,000     

2.24%, 04/15/2020 (1)

    200,885   
     

 

 

 
        658,013   
     

 

 

 
            Asset-Backed - Credit Card - 2.0%  
   

Bank of America Credit Card Trust

 
    125,000     

0.47%, 01/15/2020 (2)

    125,090   
   

Barclays Dryrock Issuance Trust

 
    300,000     

0.52%, 03/16/2020 (2)

    299,704   
   

Cabela’s Master Credit Card Trust

 
    170,000     

0.63%, 07/15/2022 (2)

    169,500   
     

 

 

 
        594,294   
     

 

 

 
            Asset-Backed - Finance & Insurance - 6.4%  
   

Ally Master Owner Trust

 
    250,000     

1.72%, 07/15/2019

    252,127   
   

Carlyle Global Market Strategies Ltd.

 
    250,000     

1.79%, 04/17/2025 (1)(2)

    249,875   
   

Dryden Senior Loan Fund

 
    250,000     

1.76%, 07/15/2026 (1)(2)

    250,200   
   

Magnetite CLO Ltd.

 
    250,000     

1.75%, 04/15/2026 (1)(2)

    250,200   
    250,000     

2.23%, 07/25/2026 (1)(2)

    248,975   
   

SpringCastle America Funding LLC

 
    163,793     

2.70%, 05/25/2023 (1)

    164,622   
   

Springleaf Funding Trust

 
    110,000     

2.41%, 12/15/2022 (1)

    110,171   
    250,000     

3.16%, 11/15/2024 (1)

    252,335   
   

TAL Advantage LLC

 
    176,250     

2.83%, 02/22/2038 (1)

    176,063   
     

 

 

 
        1,954,568   
     

 

 

 
            Asset-Backed - Home Equity - 0.6%  
   

Asset Backed Securities Corp. Home Equity Loan Trust

 
    211,629     

0.68%, 08/25/2034 (2)

    189,310   
     

 

 

 
            Commercial Mortgage-Backed Securities - 4.3%  
   

Commercial Mortgage Trust

 
    241,000     

5.44%, 03/10/2039

    253,726   
   

FREMF Mortgage Trust

 
    153,000     

3.56%, 11/25/2046 (1)(2)

    156,285   
    165,000     

4.38%, 06/25/2047 (1)(2)

    173,601   
    200,000     

4.69%, 10/25/2030 (1)(2)

    213,765   
   

LB-UBS Commercial Mortgage Trust

 
    90,000     

5.37%, 09/15/2039 (2)

    94,033   
   

Morgan Stanley Re-Remic Trust

 
    386,046     

5.99%, 08/15/2045 (1)(2)

    411,431   
     

 

 

 
        1,302,841   
     

 

 

 
            Whole Loan Collateral CMO - 10.8%  
   

Connecticut Avenue Securities Series

 
    30,000     

2.78%, 05/25/2024 (2)

    27,833   
    20,000     

2.78%, 05/25/2024 (2)

    18,648   
    300,000     

4.58%, 01/25/2024 (2)

    312,900   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 26.3% - (continued)
 
            Whole Loan Collateral CMO - 10.8% - (continued)  
  $        100,000     

5.43%, 10/25/2023 (2)

  $ 109,352   
   

First Horizon Mortgage Pass-Through

 
    236,274     

2.60%, 08/25/2037 (2)

    194,052   
   

GSR Mortgage Loan Trust

 
    195,264     

2.59%, 04/25/2036 (2)

    165,383   
   

IndyMac Index Mortgage Loan Trust

 
    101,267     

2.86%, 06/25/2036 (2)

    80,037   
    67,695     

4.77%, 08/25/2036 (2)

    65,835   
   

JP Morgan Mortgage Trust

 
    146,037     

3.00%, 09/25/2044 (1)

    147,639   
   

Morgan Stanley Dean Witter Capital I

 
    73,836     

1.70%, 03/25/2033 (2)

    69,150   
   

MortgageIT Trust

 
    208,268     

0.82%, 02/25/2035 (2)

    203,074   
   

Residential Accredit Loans, Inc.

 
    247,621     

3.54%, 09/25/2035 (2)

    211,337   
   

Residential Funding Mortgage Securities, Inc.

 
    165,992     

2.77%, 09/25/2035 (2)

    154,176   
    247,892     

3.21%, 02/25/2036 (2)

    221,506   
    168,652     

5.75%, 01/25/2036

    137,244   
   

Sequoia Mortgage Trust

 
    93,576     

0.41%, 02/20/2035 (2)

    87,893   
   

Springleaf Mortgage Loan Trust

 
    200,447     

2.31%, 06/25/2058 (1)(2)

    196,777   
    155,172     

3.52%, 12/25/2065 (1)(2)

    158,143   
   

Thornburg Mortgage Securities Trust

 
    266,281     

2.22%, 04/25/2045 (2)

    267,581   
   

Washington Mutual Mortgage Pass-Through Certificates WMALT

 
    41,924     

0.34%, 02/25/2037 (2)

    31,784   
    228,000     

5.50%, 03/25/2035

    227,171   
   

Wells Fargo Mortgage Backed Securities Trust

 
    206,360     

2.62%, 10/25/2036 (2)

    191,300   
     

 

 

 
        3,278,815   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $7,865,130)

  $ 7,977,841   
     

 

 

 
     
MUNICIPAL BONDS - 0.4%  
            Power - 0.4%      
   

Utility Debt Securitization Auth, New York

 
    110,000     

3.44%, 12/15/2025

  $ 115,549   
     

 

 

 
   

Total Municipal Bonds
(cost $109,994)

  $ 115,549   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 68.5%  
            FHLMC - 18.9%      
    3,700,000     

1.67%, 08/25/2040 (3)

  $ 228,786   
    695,000     

1.71%, 07/25/2041 (3)

    76,676   
    2,250,000     

1.81%, 11/25/2040 (3)

    247,482   
    200,000     

3.00%, 05/01/2030 (4)

    209,344   
    700,000     

3.00%, 05/01/2045 (4)

    710,937   
    200,000     

3.50%, 05/01/2030 (4)

    212,568   
    1,310,000     

3.50%, 05/01/2045 (4)

    1,370,460   
    600,000     

3.50%, 06/01/2045 (4)

    626,262   
    725,000     

4.00%, 05/01/2045 (4)

    773,643   
    700,000     

4.00%, 06/01/2045 (4)

    745,981   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  94  

 


The Hartford Quality Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 68.5% - (continued)  
          FHLMC - 18.9% - (continued)      
  $ 500,000     

4.50%, 05/01/2045 (4)

  $ 543,625   
     

 

 

 
        5,745,764   
     

 

 

 
          FNMA - 41.5%      
    221,447     

0.43%, 02/25/2043

    221,116   
    255,877     

2.48%, 08/01/2022

    259,835   
    600,000     

2.50%, 05/01/2030 (4)

    615,105   
    479,189     

2.71%, 12/01/2027

    481,012   
    25,000     

2.76%, 05/01/2021

    25,913   
    4,898     

2.78%, 04/01/2022

    5,066   
    361,579     

2.95%, 01/01/2028

    368,207   
    4,725     

2.98%, 01/01/2022

    4,941   
    765,000     

3.00%, 05/01/2045 (4)

    778,404   
    4,804     

3.20%, 04/01/2022

    5,087   
    25,000     

3.21%, 05/01/2023

    26,408   
    15,000     

3.34%, 04/01/2024

    15,959   
    4,981     

3.45%, 01/01/2024

    5,330   
    4,980     

3.47%, 01/01/2024

    5,336   
    5,075,000     

3.50%, 05/01/2045 (4)

    5,316,855   
    250,000     

3.54%, 02/01/2024

    269,197   
    14,676     

3.67%, 08/01/2023

    15,985   
    5,000     

3.76%, 03/01/2024

    5,468   
    5,000     

3.86%, 12/01/2025

    5,499   
    14,685     

3.87%, 10/01/2025

    16,186   
    14,869     

3.89%, 05/01/2030

    16,370   
    15,286     

3.93%, 10/01/2023

    16,953   
    4,940     

3.96%, 05/01/2034

    5,526   
    10,000     

3.97%, 05/01/2029

    11,173   
    200,000     

4.00%, 05/01/2030 (4)

    211,094   
    304,444     

4.00%, 03/01/2041

    326,397   
    245,000     

4.00%, 05/01/2045 (4)

    261,801   
    400,000     

4.00%, 06/01/2045 (4)

    426,867   
    9,698     

4.06%, 10/01/2028

    10,903   
    499,683     

4.06%, 03/01/2030

    563,405   
    187,754     

4.50%, 08/01/2041

    207,862   
    71,732     

4.50%, 09/01/2041

    78,364   
    1,820,000     

4.50%, 05/01/2045 (4)

    1,980,814   
     

 

 

 
        12,564,438   
     

 

 

 
          GNMA - 8.1%  
    100,000     

3.00%, 05/01/2045 (4)

    102,734   
    200,000     

3.50%, 05/01/2045 (4)

    210,789   
    200,000     

3.50%, 05/01/2045 (4)

    210,984   
    200,000     

3.50%, 06/01/2045 (4)

    210,312   
    450,000     

3.50%, 06/01/2045 (4)

    473,520   
    130,729     

4.50%, 09/20/2041

    142,190   
    87,595     

5.00%, 07/15/2039

    99,982   
    86,187     

5.00%, 06/15/2041

    96,398   
    157,954     

5.00%, 10/16/2041 (3)

    28,836   
    87,919     

5.00%, 03/15/2044

    98,597   
    100,000     

5.00%, 05/01/2045 (4)

    111,796   
    100,000     

5.50%, 05/01/2045 (4)

    112,944   
    54,454     

6.00%, 01/15/2039

    61,974   
    427,095     

6.00%, 09/15/2040

    486,225   
     

 

 

 
        2,447,281   
     

 

 

 
   

Total U.S. Government Agencies
(cost $20,678,150)

  $ 20,757,483   
     

 

 

 
     

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT SECURITIES - 3.3%  
            U.S. Treasury Securities - 3.3%  
            U.S. Treasury Notes - 3.3%      
   

U.S. Treasury Notes

 
  $        975,000     

2.00%, 02/15/2022

  $ 989,168   
     

 

 

 
        989,168   
     

 

 

 
   

Total U.S. Government Securities
(cost $965,540)

  $ 989,168   
     

 

 

 
   

Total Long-Term Investments
(cost $29,618,814)

  $ 29,840,041   
     

 

 

 
     
SHORT-TERM INVESTMENTS - 54.2%  
            Other Investment Pools & Funds - 54.2%  
    16,412,615     

Fidelity Money Market Class 1

  $ 16,412,615   
     

 

 

 
   

Total Short-Term Investments
(cost $16,412,615)

  $ 16,412,615   
     

 

 

 
     

Total Investments
(cost $46,031,429) ^

    152.7    $     46,252,656   
     

Other Assets and Liabilities

    (52.7 )%       (15,963,078
       

 

 

    

 

 

 
     

Total Net Assets

    100.0    $ 30,289,578   
       

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

95

 


The Hartford Quality Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $46,042,810 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 273,614   

Unrealized Depreciation

     (63,768
  

 

 

 

Net Unrealized Appreciation

   $     209,846   
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $3,517,445, which represents 11.6% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  Securities disclosed are interest-only strips.

 

(4)  Represents or includes a TBA transaction.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional Amount      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

U.S. Treasury 10-Year Note Future

     25         06/19/2015       $     3,226,084       $     3,209,375       $ (16,709

U.S. Treasury 5-Year Note Future

     21         06/30/2015         2,525,541         2,522,789         (2,752

U.S. Treasury CME Ultra Long Term Bond Future

     9         06/19/2015         1,511,750         1,480,500         (31,250

U.S. Treasury Long Bond Future

     2         06/19/2015         323,453         319,188         (4,265
              

 

 

 

Total

               $ (54,976
              

 

 

 

Total futures contracts

               $ (54,976
              

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015

 

Description

   Principal
Amount
     Maturity Date      Market Value*      Unrealized
Appreciation/
(Depreciation)
 

FHLMC, 5.00%

   $ 200,000         05/01/2045       $ 222,165       $ 241   

FNMA, 3.50%

     400,000         05/01/2030         424,625         188   

FNMA, 4.00%

         1,800,000         05/01/2045         1,923,434         (1,219

FNMA, 4.50%

     700,000         06/01/2045         760,976         (1,148

GNMA, 3.50%

     200,000         05/01/2045         210,789         168   

GNMA, 4.00%

     500,000         05/01/2045         534,277         (1,074

GNMA, 4.50%

     200,000         05/01/2045         220,352         (39

GNMA, 4.50%

     630,000         05/01/2045         682,689         (25
        

 

 

    

 

 

 

Total

         $     4,979,307       $     (2,908)   
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (16.4)% of total net assets.

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

CLO

   Collateralized Loan Obligation

CMO

   Collateralized Mortgage Obligation

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

TBA

   To Be Announced

 

The accompanying notes are an integral part of these financial statements.

 

 

  96  

 


The Hartford Quality Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 7,977,841      $      $ 7,977,841      $   

Municipal Bonds

     115,549               115,549          

U.S. Government Agencies

     20,757,483               20,757,483          

U.S. Government Securities

     989,168               989,168          

Short-Term Investments

     16,412,615        16,412,615                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     46,252,656      $     16,412,615      $     29,840,041      $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Futures Contracts (2)

   $ (54,976   $ (54,976   $      $   

TBA Sale Commitments

     (4,979,307            (4,979,307       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (5,034,283   $ (54,976   $ (4,979,307   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Total  

Beginning balance

   $     1,132,427      $     1,132,427   

Purchases

              

Sales

     (6,186     (6,186

Accrued discounts/(premiums)

     922        922   

Total realized gain/(loss)

     224        224   

Net change in unrealized appreciation/depreciation

     (2,787     (2,787

Transfers into Level 3 (1)

              

Transfers out of Level 3 (1)

     (1,124,600     (1,124,600
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a)  Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b)  Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c)  Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  97  

 


The Hartford Short Duration Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     20.2

Aa/AA

     7.0   

A

     30.7   

Baa/BBB

     24.7   

Ba/BB

     13.8   

B

     5.1   

Caa/CCC or Lower

     0.0   

Not Rated

     0.8   

Non-Debt Securities and Other Short-Term Instruments

     0.6   

Other Assets & Liabilities

     (2.9
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     18.5

Corporate Bonds

     57.5   

Foreign Government Obligations

     0.2   

Municipal Bonds

     0.3   

Senior Floating Rate Interests

     20.3   

U.S. Government Agencies

     5.5   
  

 

 

 

Total

     102.3
  

 

 

 

Short-Term Investments

     0.6

Other Assets & Liabilities

     (2.9
  

 

 

 

Total

     100.0
  

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

98

 


The Hartford Short Duration Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 18.5%  
      Asset-Backed-Automobile - 2.3%  
 

American Credit Acceptance Receivables Trust

 
$ 453,803     

1.45%, 04/16/2018 (1)

  $ 453,969   
 

AmeriCredit Automobile Receivables Trust

 
  1,290,000     

1.60%, 07/08/2019

    1,291,339   
  2,000,000     

2.72%, 09/09/2019

    2,048,304   
 

ARI Fleet Lease Trust

 
  347,740     

0.48%, 01/15/2021 (1)(2)

    347,120   
 

CarMax Automotive Owner Trust

 
  395,000     

1.50%, 08/15/2018

    397,676   
 

Chesapeake Funding LLC

 
  685,798     

0.63%, 01/07/2025 (1)(2)

    686,098   
 

Chrysler Capital Auto Receivables Trust

 
  970,286     

0.91%, 04/16/2018 (1)

    971,857   
 

Credit Acceptance Automotive Loan Trust

 
  1,650,000     

1.50%, 04/15/2021 (1)

    1,654,627   
  1,380,000     

1.55%, 10/15/2021 (1)

    1,378,521   
 

First Investors Automotive Owner Trust

 
  864,303     

1.23%, 03/15/2019 (1)

    865,121   
 

Ford Credit Automotive Owner Trust

 
  2,500,000     

2.62%, 10/15/2016

    2,501,922   
 

M&T Bank Automotive Receivables Trust

 
  1,595,000     

1.57%, 08/15/2018 (1)

    1,611,775   
 

Prestige Automotive Receivables Trust

 
  920,000     

1.52%, 04/15/2020 (1)

    921,088   
 

Santander Drive Automotive Receivables Trust

 
  1,960,000     

3.64%, 05/15/2018

    2,015,331   
 

SNAAC Auto Receivables Trust

 
  1,580     

1.14%, 07/16/2018 (1)

    1,580   
 

Westlake Automobile Receivables Trust

 
  284,450     

1.12%, 01/15/2018 (1)

    284,565   
   

 

 

 
      17,430,893   
   

 

 

 
      Asset-Backed - Credit Card - 0.1%  
 

American Express Credit Account Master Trust

 
  455,000     

0.98%, 05/15/2019

    455,749   
   

 

 

 
      Asset-Backed - Finance & Insurance - 7.6%  
 

Ally Master Owner Trust

 
  3,900,000     

1.43%, 06/17/2019

    3,915,093   
  2,695,000     

1.54%, 09/15/2019

    2,705,007   
 

American Tower Trust I

 
  3,000,000     

1.55%, 03/15/2043 (1)

    2,995,119   
 

Apidos CLO

 
  2,250,000     

1.38%, 04/15/2025 (1)(2)

    2,217,375   
  1,495,000     

1.77%, 04/17/2026 (1)(2)

    1,496,196   
 

Carlyle Global Market Strategies

 
  870,000     

1.43%, 04/18/2025 (1)(2)

    860,952   
  2,750,000     

2.38%, 07/20/2023 (1)(2)

    2,710,400   
 

Cent CLO 20 Ltd.

 
  1,500,000     

1.76%, 01/25/2026 (1)(2)

    1,501,650   
 

CIFC Funding Ltd.

 
  2,125,000     

1.40%, 04/16/2025 (1)(2)

    2,098,862   
  2,180,000     

2.36%, 08/14/2024 (1)(2)

    2,197,222   
 

Countrywide Asset-Backed Certificates

 
  401,003     

1.12%, 03/25/2035 (2)

    401,131   
 

DB Master Finance LLC

 
  515,000     

3.26%, 02/20/2045 (1)

    518,566   
 

Dryden Senior Loan Fund

 
  1,460,000     

1.63%, 04/18/2026 (1)(2)

    1,453,138   
 

First Franklin Mortgage Loan Trust

 
  354,023     

0.61%, 05/25/2035 (2)

    351,390   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 18.5% - (continued)
 
      Asset-Backed - Finance & Insurance - 7.6% - (continued)  
 

Ford Credit Floorplan Master Owner Trust A

 
$ 435,000     

1.40%, 02/15/2019

  $ 436,419   
 

Gramercy Park CLO Ltd.

 
  1,700,000     

2.17%, 07/17/2023 (1)(2)

    1,717,850   
 

Hasco HIM Trust

 
  51,017     

6.25%, 12/26/2035 (1)(3)(4)

      
 

ING Investment Management CLO Ltd.

 
  1,455,000     

1.78%, 04/18/2026 (1)(2)

    1,453,109   
  2,000,000     

2.09%, 03/14/2022 (1)(2)

    2,001,000   
 

Limerock CLO

 
  2,000,000     

1.78%, 04/18/2026 (1)(2)

    1,999,800   
 

Long Beach Asset Holdings Corp.

 
  180,481     

5.78%, 04/25/2046 (1)(3)(4)

      
 

Magnetite CLO Ltd.

 
  4,680,000     

2.23%, 07/25/2026 (1)(2)

    4,660,812   
 

MMAF Equipment Finance LLC

 
  2,670,000     

1.59%, 02/08/2022 (1)

    2,658,823   
 

Neuberger Berman CLO Ltd.

 
  1,470,000     

1.75%, 04/15/2026 (1)(2)

    1,469,853   
 

New York City Tax Lien

 
  55,461     

1.19%, 11/10/2026 (1)

    55,422   
 

Octagon Investment Partners Ltd.

 
  2,500,000     

1.39%, 07/17/2025 (1)(2)

    2,462,750   
 

OHA Intrepid Leveraged Loan Fund Ltd.

 
  857,716     

1.20%, 04/20/2021 (1)(2)

    856,515   
 

Race Point CLO Ltd.

 
  2,500,000     

2.41%, 05/24/2023 (1)(2)

    2,464,750   
 

SBA Tower Trust

 
  2,060,000     

2.90%, 10/15/2044 (1)

    2,079,115   
 

Springleaf Funding Trust

 
  2,125,000     

2.41%, 12/15/2022 (1)

    2,128,313   
 

Structured Asset Investment Loan Trust

 
  296,242     

0.75%, 04/25/2035 (2)

    295,680   
 

Structured Asset Securities Corp.

 
  842,313     

0.33%, 02/25/2036 (2)

    831,150   
 

Symphony CLO L.P.

 
  4,035,000     

2.00%, 01/09/2023 (1)(2)

    4,034,596   
   

 

 

 
      57,028,058   
   

 

 

 
      Asset-Backed - Home Equity - 0.8%  
 

Accredited Mortgage Loan Trust

 
  1,081,967     

0.85%, 01/25/2035 (2)

    1,063,250   
 

Aegis Asset Backed Securities Trust

 
  847,266     

1.28%, 09/25/2034 (2)

    836,716   
 

Home Equity Asset Trust

 
  2,196,119     

0.82%, 11/25/2034 (2)

    2,182,701   
 

Morgan Stanley Capital

 
  1,395,474     

0.94%, 01/25/2035 (2)

    1,373,980   
 

Renaissance Home Equity Loan Trust

 
  107,852     

9.79%, 04/25/2037 (1)(2)(4)

    1   
 

Residential Asset Securities Corp.

 
  979,754     

5.39%, 07/25/2034 (2)

    1,009,413   
   

 

 

 
      6,466,061   
   

 

 

 
      Commercial Mortgage-Backed Securities - 6.9%  
 

Bayview Commercial Asset Trust

 
  4,598,271     

0.00%, 01/25/2037 (1)(2)(5)

    460   
  4,984,133     

3.49%, 09/25/2037 (1)(5)

    200,362   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  99  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 18.5% - (continued)
 
      Commercial Mortgage-Backed Securities - 6.9% - (continued)  
 

Bear Stearns Commercial Mortgage Securities, Inc.

 
$ 1,526,436     

5.41%, 12/11/2040 (2)

  $ 1,545,151   
 

CBA Commercial Small Balance Commercial Mortgage

 
  3,890,695     

0.00%, 01/25/2039 (1)(2)(5)

      
 

CD Mortgage Trust

 
  2,828,468     

5.89%, 11/15/2044 (2)

    3,061,683   
 

CFCRE Commercial Mortgage Trust

 
  1,394,060     

3.76%, 04/15/2044 (1)

    1,414,837   
 

Citigroup Commercial Mortgage Trust

 
  1,175,341     

0.69%, 09/10/2045

    1,174,770   
 

Citigroup/Deutsche Bank Commercial Mortgage Trust

 
  3,475,000     

5.32%, 12/11/2049

    3,648,309   
 

COMM Mortgage Trust

 
  714,435     

0.70%, 10/15/2045

    712,993   
  620,206     

0.82%, 08/15/2045

    620,802   
  1,066,474     

1.28%, 08/10/2046

    1,066,201   
  937,282     

1.34%, 07/10/2045

    942,720   
 

Commercial Mortgage Pass-Through Certificates

 
  649,237     

0.67%, 10/15/2045

    647,056   
 

Community or Commercial Mortgage Trust

 
  1,411,092     

1.30%, 03/10/2047

    1,411,871   
  1,468,389     

3.16%, 07/10/2046 (1)

    1,474,736   
 

Credit Suisse Mortgage Capital Certificates

 
  2,785,841     

5.47%, 09/15/2039

    2,903,576   
 

DBUBS Mortgage Trust

 
  2,926,781     

1.54%, 11/10/2046 (1)(2)(5)

    60,148   
  1,345,000     

3.64%, 08/10/2044

    1,376,671   
  2,185,037     

3.74%, 11/10/2046 (1)

    2,218,070   
 

FREMF Mortgage Trust

 
  2,320,000     

3.08%, 10/25/2047 (1)(2)

    2,348,016   
 

GS Mortgage Securities Trust

 
  841,986     

0.66%, 11/10/2045

    841,361   
  655,686     

1.21%, 07/10/2046

    656,802   
  1,500,000     

5.55%, 04/10/2038 (2)

    1,518,098   
 

Hilton USA Trust

 
  1,300,814     

1.17%, 11/05/2030 (1)(2)

    1,300,814   
 

JP Morgan Chase Commercial Mortgage Securities Corp.

 
  292,461     

0.71%, 10/15/2045

    292,437   
  1,231,691     

1.30%, 01/15/2046

    1,236,996   
  224,711     

3.85%, 06/15/2043 (1)

    224,676   
  1,328,094     

5.41%, 12/15/2044 (2)

    1,338,593   
  1,609,357     

6.06%, 04/15/2045 (2)

    1,657,560   
 

Merrill Lynch Mortgage Trust

 
  261,388     

6.03%, 06/12/2050 (2)

    262,788   
 

Merrill Lynch/Countrywide Commercial Mortgage Trust

 
  610,265     

5.38%, 08/12/2048

    643,110   
 

Morgan Stanley Bank of America Merrill Lynch Trust

 
  404,604     

0.66%, 11/15/2045

    402,906   
 

Morgan Stanley Capital

 
  1,268,039     

3.22%, 07/15/2049

    1,298,077   
  1,500,000     

3.88%, 09/15/2047 (1)

    1,519,789   
 

Morgan Stanley Reremic Trust

 
  1,479,364     

1.00%, 03/27/2051 (1)

    1,475,665   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 18.5% - (continued)
 
      Commercial Mortgage-Backed Securities - 6.9% - (continued)  
 

NCUA Guaranteed Notes Trust

 
$ 201,852     

1.60%, 10/29/2020

  $ 202,066   
 

UBS Commercial Mortgage Trust

 
  607,572     

1.03%, 05/10/2045

    608,739   
 

UBS-Barclays Commercial Mortgage Trust

 
  1,400,321     

0.73%, 08/10/2049

    1,397,282   
 

Wachovia Bank Commercial Mortgage Trust

 
  2,911,534     

5.31%, 11/15/2048

    3,046,777   
  2,180,461     

5.44%, 12/15/2044 (2)

    2,198,877   
  1,500,000     

5.48%, 04/15/2047

    1,516,362   
 

WF-RBS Commercial Mortgage Trust

 
  1,455,170     

0.67%, 11/15/2045

    1,451,330   
   

 

 

 
      51,919,537   
   

 

 

 
      Whole Loan Collateral CMO - 0.8%  
 

Connecticut Avenue Securities Series

 
  2,102,669     

1.13%, 05/25/2024 (2)

    2,089,525   
  3,551,415     

1.38%, 07/25/2024 (2)

    3,546,709   
 

Silverstone Master Issuer plc

 
  138,333     

1.83%, 01/21/2055 (1)(2)

    139,113   
 

Springleaf Mortgage Loan Trust

 
  448,287     

1.27%, 06/25/2058 (1)(2)

    447,726   
   

 

 

 
      6,223,073   
   

 

 

 
 

Total Asset & Commercial Mortgage Backed Securities
(cost $141,308,631)

  $ 139,523,371   
   

 

 

 
   
CORPORATE BONDS - 57.5%  
      Agriculture - 0.5%  
 

Imperial Tobacco Finance plc

 
  2,000,000     

2.05%, 02/11/2018 (1)

  $ 2,009,884   
 

Lorillard Tobacco Co.

 
  180,000     

2.30%, 08/21/2017

    182,182   
 

Reynolds American, Inc.

 
  1,300,000     

1.05%, 10/30/2015

    1,300,038   
   

 

 

 
      3,492,104   
   

 

 

 
      Auto Manufacturers - 4.3%  
 

American Honda Finance Corp.

 
  675,000     

1.60%, 02/16/2018 (1)

    679,056   
 

Daimler Finance NA LLC

 
  2,000,000     

1.88%, 01/11/2018 (1)

    2,024,192   
  2,500,000     

2.25%, 09/03/2019 (1)

    2,525,480   
 

FCA US LLC / CG Co-Issuer, Inc.

 
  2,690,000     

8.00%, 06/15/2019

    2,817,910   
 

Ford Motor Credit Co. LLC

 
  3,500,000     

2.38%, 01/16/2018

    3,553,291   
  2,000,000     

2.46%, 03/27/2020

    1,996,890   
 

General Motors Co.

 
  2,500,000     

3.50%, 10/02/2018

    2,572,575   
 

General Motors Financial Co., Inc.

 
  3,500,000     

2.63%, 07/10/2017

    3,542,424   
 

Harley-Davidson Financial Services, Inc.

 
  840,000     

2.40%, 09/15/2019 (1)

    853,157   
 

Hyundai Capital America

 
  2,500,000     

2.13%, 10/02/2017 (1)

    2,521,525   
  2,490,000     

2.60%, 03/19/2020 (1)

    2,522,753   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  100  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Auto Manufacturers - 4.3% - (continued)  
 

Nissan Motor Acceptance Corp.

 
$ 2,500,000     

2.35%, 03/04/2019 (1)

  $ 2,537,385   
 

Toyota Motor Credit Corp.

 
  1,500,000     

2.00%, 10/24/2018

    1,529,157   
  2,000,000     

2.13%, 07/18/2019

    2,026,770   
 

Volkswagen Group of America Finance LLC

 
  750,000     

2.45%, 11/20/2019 (1)

    764,492   
   

 

 

 
      32,467,057   
   

 

 

 
      Auto Parts & Equipment - 1.0%  
 

Continental Rubber of America Corp.

 
  4,000,000     

4.50%, 09/15/2019 (1)

    4,127,728   
 

Johnson Controls, Inc.

 
  1,200,000     

1.40%, 11/02/2017

    1,195,674   
 

TRW Automotive, Inc.

 
  1,980,000     

7.25%, 03/15/2017 (1)

    2,168,100   
   

 

 

 
      7,491,502   
   

 

 

 
      Beverages - 0.7%  
 

Constellation Brands, Inc.

 
  1,210,000     

7.25%, 09/01/2016

    1,297,604   
 

Molson Coors Brewing Co.

 
  311,000     

2.00%, 05/01/2017

    314,629   
 

Pernod Ricard S.A.

 
  1,000,000     

2.95%, 01/15/2017 (1)

    1,026,227   
 

SABMiller Holdings, Inc.

 
  2,500,000     

0.97%, 08/01/2018 (1)(2)

    2,507,167   
   

 

 

 
      5,145,627   
   

 

 

 
      Biotechnology - 0.2%  
 

Amgen, Inc.

 
  1,500,000     

2.13%, 05/01/2020

    1,496,636   
   

 

 

 
      Chemicals - 0.5%  
 

CF Industries, Inc.

 
  1,310,000     

7.13%, 05/01/2020

    1,574,954   
 

Ecolab, Inc.

 
  375,000     

1.45%, 12/08/2017

    374,495   
 

Monsanto Co.

 
  1,820,000     

2.13%, 07/15/2019

    1,835,483   
   

 

 

 
      3,784,932   
   

 

 

 
      Commercial Banks - 21.7%      
 

Abbey National Treasury Services plc

 
  2,250,000     

2.38%, 03/16/2020

    2,264,654   
 

ABN Amro Bank N.V.

 
  1,429,000     

4.25%, 02/02/2017 (1)

    1,498,311   
 

Banco Santander Brasil S.A.

 
  980,000     

4.25%, 01/14/2016 (1)

    997,738   
 

Bank of America Corp.

 
  2,200,000     

1.34%, 03/22/2018 (2)

    2,227,496   
  2,500,000     

2.25%, 04/21/2020

    2,480,502   
  5,000,000     

2.60%, 01/15/2019

    5,077,160   
  2,500,000     

2.65%, 04/01/2019

    2,543,015   
  610,000     

5.65%, 05/01/2018

    674,589   
 

Bank of Montreal

 
  1,500,000     

2.38%, 01/25/2019

    1,528,529   
 

Bank of New York Mellon Corp.

 
  1,750,000     

2.20%, 05/15/2019

    1,774,360   
  1,500,000     

2.30%, 09/11/2019

    1,521,839   
 

Bank of Nova Scotia

 
  1,000,000     

1.30%, 07/21/2017

    1,003,959   
  1,500,000     

1.38%, 12/18/2017

    1,502,573   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Commercial Banks - 21.7% - (continued)      
 

Bank of Tokyo-Mitsubishi UFJ Ltd.

 
$ 3,250,000     

2.35%, 09/08/2019 (1)

  $ 3,278,424   
 

Barclays plc

 
  2,500,000     

2.75%, 11/08/2019

    2,528,950   
 

BB&T Corp.

 
  1,245,000     

1.13%, 06/15/2018 (2)

    1,256,447   
  815,000     

1.60%, 08/15/2017

    820,828   
 

BNP Paribas S.A.

 
  1,650,000     

2.38%, 09/14/2017

    1,685,709   
  2,000,000     

2.70%, 08/20/2018

    2,059,598   
 

BPCE S.A.

 
  1,390,000     

2.50%, 12/10/2018

    1,425,018   
  1,650,000     

2.50%, 07/15/2019

    1,672,747   
 

Capital One Financial Corp.

 
  1,190,000     

2.45%, 04/24/2019

    1,201,354   
 

CIT Group, Inc.

 
  2,500,000     

4.25%, 08/15/2017

    2,543,750   
  1,250,000     

5.00%, 05/15/2017

    1,293,750   
 

Citigroup, Inc.

 
  1,500,000     

1.70%, 04/27/2018

    1,492,916   
  2,000,000     

2.40%, 02/18/2020

    2,001,074   
  965,000     

2.50%, 07/29/2019

    973,984   
  3,000,000     

2.55%, 04/08/2019

    3,048,009   
 

Citizens Bank NA/Providence

 
  3,250,000     

2.45%, 12/04/2019

    3,280,062   
 

Commonwealth Bank of Australia

 
  1,500,000     

2.30%, 03/12/2020

    1,512,878   
 

Compass Bank

 
  1,555,000     

2.75%, 09/29/2019

    1,571,912   
 

Credit Suisse New York

 
  1,250,000     

1.70%, 04/27/2018

    1,247,338   
  2,250,000     

2.30%, 05/28/2019

    2,264,566   
 

Deutsche Bank AG

 
  2,000,000     

1.88%, 02/13/2018

    2,004,896   
 

Deutsche Bank AG London

 
  2,000,000     

1.35%, 05/30/2017

    1,994,592   
 

DNB Bank ASA

 
  2,000,000     

3.20%, 04/03/2017 (1)

    2,068,482   
 

Fifth Third Bancorp

 
  4,250,000     

2.38%, 04/25/2019

    4,304,158   
 

Goldman Sachs Group, Inc.

 
  4,000,000     

1.36%, 11/15/2018 (2)

    4,044,220   
  4,000,000     

2.38%, 01/22/2018

    4,070,868   
  1,000,000     

2.55%, 10/23/2019

    1,011,287   
  1,850,000     

2.60%, 04/23/2020

    1,857,814   
 

HSBC USA, Inc.

 
  3,590,000     

1.63%, 01/16/2018

    3,604,281   
  1,550,000     

2.35%, 03/05/2020

    1,553,314   
 

Huntington National Bank

 
  1,785,000     

2.20%, 04/01/2019

    1,786,126   
 

ING Bank N.V.

 
  2,395,000     

2.50%, 10/01/2019 (1)

    2,430,772   
 

Intesa Sanpaolo S.p.A.

 
  1,500,000     

3.13%, 01/15/2016

    1,517,906   
  2,000,000     

3.88%, 01/15/2019

    2,102,366   
 

JP Morgan Chase & Co.

 
  3,000,000     

1.35%, 02/15/2017

    3,009,036   
  1,100,000     

1.63%, 05/15/2018

    1,099,877   
  3,000,000     

1.80%, 01/25/2018

    3,018,792   
  1,500,000     

2.00%, 08/15/2017

    1,523,715   
  3,000,000     

2.25%, 01/23/2020

    2,991,597   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  101  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Commercial Banks - 21.7% - (continued)      
 

KeyBank NA

 
$ 1,000,000     

1.65%, 02/01/2018

  $ 1,003,903   
  2,000,000     

2.50%, 12/15/2019

    2,035,604   
 

Lloyds Bank plc

 
  980,000     

2.30%, 11/27/2018

    997,376   
  1,000,000     

2.40%, 03/17/2020

    1,009,508   
  820,000     

4.20%, 03/28/2017

    866,111   
 

Manufacturers & Traders Trust Co.

 
  2,500,000     

2.25%, 07/25/2019

    2,523,432   
  1,045,000     

5.59%, 12/28/2020 (2)

    1,073,066   
 

Morgan Stanley

 
  2,000,000     

1.13%, 01/24/2019 (2)

    2,006,392   
  1,500,000     

2.65%, 01/27/2020

    1,517,129   
  1,750,000     

5.63%, 09/23/2019

    1,981,672   
  1,500,000     

6.63%, 04/01/2018

    1,699,224   
 

MUFG Union Bank NA

 
  2,000,000     

5.95%, 05/11/2016

    2,100,416   
 

PNC Bank NA

 
  3,500,000     

2.25%, 07/02/2019

    3,542,619   
 

Royal Bank of Canada

 
  1,500,000     

1.50%, 01/16/2018

    1,506,378   
 

Royal Bank of Scotland Group plc

 
  2,000,000     

1.88%, 03/31/2017

    2,003,600   
 

Santander Bank NA

 
  850,000     

2.00%, 01/12/2018

    851,737   
 

Santander Holdings USA, Inc.

 
  1,115,000     

2.65%, 04/17/2020

    1,108,194   
  715,000     

3.00%, 09/24/2015

    719,569   
  738,000     

4.63%, 04/19/2016

    763,409   
 

Skandinaviska Enskilda Banken AB

 
  1,250,000     

1.75%, 03/19/2018 (1)

    1,253,600   
  1,545,000     

2.38%, 11/20/2018 (1)

    1,571,342   
 

Societe Generale S.A.

 
  2,395,000     

2.63%, 10/01/2018

    2,455,009   
 

Standard Chartered plc

 
  3,000,000     

2.40%, 09/08/2019 (1)

    3,024,030   
 

SunTrust Banks, Inc.

 
  1,750,000     

2.50%, 05/01/2019

    1,775,295   
 

Svenska Handelsbanken AB

 
  2,000,000     

2.25%, 06/17/2019

    2,020,228   
 

Swedbank AB

 
  1,800,000     

1.75%, 03/12/2018 (1)

    1,806,298   
 

UBS AG Stamford CT

 
  3,250,000     

5.88%, 12/20/2017

    3,601,435   
 

US Bancorp

 
  2,250,000     

1.65%, 05/15/2017

    2,282,107   
 

Wells Fargo & Co.

 
  2,035,000     

1.50%, 01/16/2018

    2,042,845   
  2,000,000     

2.13%, 04/22/2019

    2,021,100   
  1,875,000     

2.15%, 01/30/2020

    1,874,751   
   

 

 

 
      163,285,517   
   

 

 

 
      Commercial Services - 0.6%  
 

Catholic Health Initiatives

 
  195,000     

1.60%, 11/01/2017

    195,199   
 

ERAC USA Finance Co.

 
  1,870,000     

2.35%, 10/15/2019 (1)

    1,873,706   
 

Total System Services, Inc.

 
  2,075,000     

2.38%, 06/01/2018

    2,087,639   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Commercial Services - 0.6% - (continued)  
 

Western Union Co.

 
$ 430,000     

2.38%, 12/10/2015

  $ 433,600   
   

 

 

 
      4,590,144   
   

 

 

 
      Construction Materials - 0.2%  
 

Masco Corp.

 
  1,450,000     

4.80%, 06/15/2015

    1,455,561   
   

 

 

 
      Diversified Financial Services - 3.0%  
 

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
  1,665,000     

2.75%, 05/15/2017 (1)

    1,658,756   
 

Air Lease Corp.

 
  2,705,000     

2.13%, 01/15/2018

    2,691,475   
 

American Express Credit Corp.

 
  1,225,000     

1.13%, 06/05/2017

    1,224,544   
  2,000,000     

2.25%, 08/15/2019

    2,025,088   
 

Capital One Bank USA NA

 
  2,500,000     

2.30%, 06/05/2019

    2,502,598   
 

General Electric Capital Corp.

 
  3,000,000     

2.20%, 01/09/2020

    3,040,374   
  1,250,000     

2.90%, 01/09/2017

    1,294,226   
 

International Lease Finance Corp.

 
  1,750,000     

6.75%, 09/01/2016 (1)

    1,850,625   
 

Macquarie Group Ltd.

 
  2,500,000     

3.00%, 12/03/2018 (1)

    2,569,038   
 

Navient Corp.

 
  750,000     

3.88%, 09/10/2015

    754,875   
 

Synchrony Financial

 
  610,000     

2.70%, 02/03/2020

    611,251   
  2,255,000     

3.00%, 08/15/2019

    2,300,269   
   

 

 

 
      22,523,119   
   

 

 

 
      Electric - 0.9%  
 

Ameren Illinois Co.

 
  1,000,000     

9.75%, 11/15/2018

    1,263,168   
 

American Electric Power Co., Inc.

 
  500,000     

1.65%, 12/15/2017

    502,870   
 

Commonwealth Edison Co.

 
  2,400,000     

6.95%, 07/15/2018

    2,764,658   
 

Dominion Resources, Inc.

 
  2,500,000     

2.50%, 12/01/2019

    2,540,725   
   

 

 

 
      7,071,421   
   

 

 

 
      Electronics - 0.2%  
 

Arrow Electronics, Inc.

 
  630,000     

3.00%, 03/01/2018

    646,493   
 

Thermo Fisher Scientific, Inc.

 
  1,225,000     

1.30%, 02/01/2017

    1,225,928   
   

 

 

 
      1,872,421   
   

 

 

 
      Engineering & Construction - 0.4%  
 

SBA Tower Trust

 
  1,300,000     

2.24%, 04/15/2043 (1)

    1,297,450   
  1,310,000     

2.93%, 12/15/2042 (1)

    1,332,113   
   

 

 

 
      2,629,563   
   

 

 

 
      Food - 1.0%  
 

JM Smucker Co.

 
  330,000     

2.50%, 03/15/2020 (1)

    332,217   
 

Kroger Co.

 
  1,250,000     

7.00%, 05/01/2018

    1,420,816   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  102  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Food - 1.0% - (continued)  
 

Mondelez International, Inc.

 
$ 3,000,000     

0.80%, 02/01/2019 (2)

  $ 2,969,259   
 

Sysco Corp.

 
  1,090,000     

2.35%, 10/02/2019

    1,110,379   
 

Tyson Foods, Inc.

 
  1,195,000     

2.65%, 08/15/2019

    1,219,187   
 

Wm Wrigley Jr Co.

 
  720,000     

1.40%, 10/21/2016 (1)

    723,038   
   

 

 

 
      7,774,896   
   

 

 

 
      Forest Products & Paper - 0.4%  
 

Georgia-Pacific LLC

 
  2,650,000     

2.54%, 11/15/2019 (1)

    2,673,529   
   

 

 

 
      Gas - 0.3%  
 

Dominion Gas Holdings LLC

 
  2,500,000     

1.05%, 11/01/2016

    2,503,760   
   

 

 

 
      Healthcare-Products - 0.8%  
 

Becton Dickinson and Co.

 
  1,650,000     

2.68%, 12/15/2019

    1,682,518   
 

Medtronic, Inc.

 
  1,680,000     

2.50%, 03/15/2020 (1)

    1,715,362   
 

Zimmer Holdings, Inc.

 
  2,750,000     

2.00%, 04/01/2018

    2,774,533   
   

 

 

 
      6,172,413   
   

 

 

 
      Healthcare-Services - 1.6%  
 

Aetna, Inc.

 
  2,135,000     

1.50%, 11/15/2017

    2,145,605   
 

Anthem, Inc.

 
  4,000,000     

2.25%, 08/15/2019

    4,015,772   
  1,000,000     

2.38%, 02/15/2017

    1,020,455   
 

Dignity Health

 
  1,810,000     

2.64%, 11/01/2019

    1,834,891   
 

Humana, Inc.

 
  690,000     

2.63%, 10/01/2019

    702,601   
 

Laboratory Corp. of America Holdings

 
  1,411,000     

2.20%, 08/23/2017

    1,434,101   
  590,000     

2.63%, 02/01/2020

    594,774   
   

 

 

 
      11,748,199   
   

 

 

 
      Holding Companies-Diversified - 0.3%  
 

Hutchison Whampoa International Ltd.

 
  2,500,000     

1.63%, 10/31/2017 (1)

    2,490,735   
   

 

 

 
      Home Furnishings - 0.4%  
 

Whirlpool Corp.

 
  1,235,000     

1.35%, 03/01/2017

    1,238,368   
  1,400,000     

2.40%, 03/01/2019

    1,414,162   
   

 

 

 
      2,652,530   
   

 

 

 
      Housewares - 0.0%  
 

Newell Rubbermaid, Inc.

 
  355,000     

2.05%, 12/01/2017

    357,862   
   

 

 

 
      Insurance - 2.4%  
 

American International Group, Inc.

 
  4,000,000     

2.30%, 07/16/2019

    4,043,552   
 

CNA Financial Corp.

 
  2,000,000     

6.50%, 08/15/2016

    2,134,812   
 

Marsh & McLennan Cos., Inc.

 
  985,000     

2.35%, 09/10/2019

    995,685   
  770,000     

2.55%, 10/15/2018

    790,310   
 

Metropolitan Life Global Funding

 
  1,480,000     

1.50%, 01/10/2018 (1)

    1,488,010   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Insurance - 2.4% - (continued)  
 

Principal Life Global Funding

 
$ 1,255,000     

2.20%, 04/08/2020 (1)

  $ 1,258,627   
 

Prudential Financial, Inc.

 
  2,000,000     

1.04%, 08/15/2018 (2)

    2,011,608   
  1,500,000     

2.35%, 08/15/2019

    1,516,001   
 

QBE Insurance Group Ltd.

 
  390,000     

2.40%, 05/01/2018 (1)

    394,575   
 

TIAA Asset Management Finance Co. LLC

 
  861,000     

2.95%, 11/01/2019 (1)

    879,463   
 

Voya Financial, Inc.

 
  2,250,000     

2.90%, 02/15/2018

    2,317,117   
   

 

 

 
      17,829,760   
   

 

 

 
      Internet - 0.4%  
 

Amazon.com, Inc.

 
  1,385,000     

1.20%, 11/29/2017

    1,384,717   
  1,250,000     

2.60%, 12/05/2019

    1,274,399   
   

 

 

 
      2,659,116   
   

 

 

 
      Iron/Steel - 0.8%  
 

ArcelorMittal

 
  280,000     

4.50%, 03/01/2016

    284,550   
 

Glencore Funding LLC

 
  3,000,000     

1.42%, 05/27/2016 (1)(2)

    3,009,444   
  891,000     

3.13%, 04/29/2019 (1)

    907,662   
 

Vale Overseas Ltd.

 
  1,720,000     

6.25%, 01/23/2017

    1,831,318   
   

 

 

 
      6,032,974   
   

 

 

 
      IT Services - 0.6%  
 

Hewlett-Packard Co.

 
  2,000,000     

1.22%, 01/14/2019 (2)

    2,009,974   
  1,090,000     

2.75%, 01/14/2019

    1,117,655   
 

Xerox Business Services LLC

 
  1,000,000     

5.20%, 06/01/2015

    1,003,238   
   

 

 

 
      4,130,867   
   

 

 

 
      Machinery-Diversified - 0.2%  
 

CNH Industrial Capital LLC

 
  1,750,000     

3.88%, 11/01/2015

    1,758,750   
   

 

 

 
      Media - 2.2%  
 

CBS Corp.

 
  3,000,000     

2.30%, 08/15/2019

    3,001,449   
 

Columbus International, Inc.

 
  400,000     

7.38%, 03/30/2021 (1)

    435,500   
 

DirecTV Holdings LLC

 
  915,000     

1.75%, 01/15/2018

    915,862   
 

DIRECTV Holdings LLC

 
  2,681,000     

2.40%, 03/15/2017

    2,728,172   
 

DISH DBS Corp.

 
  725,000     

7.13%, 02/01/2016

    750,375   
 

Sky plc

 
  1,770,000     

2.63%, 09/16/2019 (1)

    1,794,268   
 

Thomson Reuters Corp.

 
  2,500,000     

1.30%, 02/23/2017

    2,499,188   
 

Time Warner Cable, Inc.

 
  2,000,000     

5.85%, 05/01/2017

    2,144,206   
 

Viacom, Inc.

 
  955,000     

2.20%, 04/01/2019

    952,589   
  1,500,000     

2.75%, 12/15/2019

    1,521,573   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  103  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Media - 2.2% - (continued)  
 

Videotron Ltd.

 
$ 123,000     

9.13%, 04/15/2018

  $ 125,534   
   

 

 

 
      16,868,716   
   

 

 

 
      Mining - 0.6%  
 

Freeport-McMoRan, Inc.

 
  1,015,000     

2.38%, 03/15/2018

    1,012,233   
 

Rio Tinto Finance USA Ltd.

 
  2,050,000     

2.00%, 03/22/2017

    2,081,238   
 

Teck Resources Ltd.

 
  1,500,000     

2.50%, 02/01/2018

    1,495,095   
   

 

 

 
      4,588,566   
   

 

 

 
      Miscellaneous Manufacturing - 0.5%  
 

Eaton Corp.

 
  2,000,000     

1.50%, 11/02/2017

    2,011,834   
 

Textron, Inc.

 
  1,500,000     

4.63%, 09/21/2016

    1,570,650   
   

 

 

 
      3,582,484   
   

 

 

 
      Oil & Gas - 1.2%  
 

BP Capital Markets plc

 
  2,250,000     

1.85%, 05/05/2017

    2,283,651   
  1,575,000     

2.32%, 02/13/2020

    1,596,541   
 

Hess Corp.

 
  1,150,000     

1.30%, 06/15/2017

    1,137,947   
 

Petrobras Global Finance B.V.

 
  1,250,000     

2.00%, 05/20/2016

    1,225,000   
  1,100,000     

3.88%, 01/27/2016

    1,101,782   
 

Southwestern Energy Co.

 
  1,250,000     

3.30%, 01/23/2018

    1,282,417   
 

Total Capital Canada Ltd.

 
  685,000     

1.45%, 01/15/2018

    688,911   
   

 

 

 
      9,316,249   
   

 

 

 
      Oil & Gas Services - 0.1%      
 

Schlumberger Norge AS

 
  925,000     

1.25%, 08/01/2017 (1)

    926,055   
   

 

 

 
      Pharmaceuticals - 2.0%      
 

Actavis Funding SCS

 
  490,000     

2.45%, 06/15/2019

    491,279   
  3,855,000     

3.00%, 03/12/2020

    3,920,651   
 

Bayer US Finance LLC

 
  1,300,000     

2.38%, 10/08/2019 (1)

    1,319,284   
 

Cardinal Health, Inc.

 
  370,000     

1.70%, 03/15/2018

    372,283   
  1,435,000     

2.40%, 11/15/2019

    1,445,899   
 

Express Scripts Holding Co.

 
  2,115,000     

2.25%, 06/15/2019

    2,116,823   
  2,000,000     

2.65%, 02/15/2017

    2,045,568   
 

Mylan, Inc.

 
  2,500,000     

1.35%, 11/29/2016

    2,493,130   
 

Perrigo Co. Ltd.

 
  800,000     

1.30%, 11/08/2016

    798,596   
   

 

 

 
      15,003,513   
   

 

 

 
      Pipelines - 0.8%      
 

Enbridge, Inc.

 
  2,250,000     

0.71%, 06/02/2017 (2)

    2,222,784   
 

Enterprise Products Operating LLC

 
  235,000     

1.25%, 08/13/2015

    235,342   
  1,195,000     

2.55%, 10/15/2019

    1,214,666   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Pipelines - 0.8% - (continued)      
 

Kinder Morgan Energy Partners L.P.

 
$ 790,000     

3.50%, 03/01/2016

  $ 805,820   
 

Kinder Morgan, Inc.

 
  1,435,000     

3.05%, 12/01/2019

    1,449,267   
   

 

 

 
      5,927,879   
   

 

 

 
      Real Estate - 0.3%  
 

WEA Finance LLC / Westfield UK & Europe Finance plc

 
  2,480,000     

2.70%, 09/17/2019 (1)

    2,512,359   
   

 

 

 
      Real Estate Investment Trusts - 2.0%  
 

ERP Operating L.P.

 
  2,580,000     

2.38%, 07/01/2019

    2,609,288   
 

Health Care REIT, Inc.

 
  1,010,000     

2.25%, 03/15/2018

    1,023,351   
  688,000     

3.63%, 03/15/2016

    703,541   
 

Host Hotels & Resorts L.P.

 
  1,250,000     

6.00%, 11/01/2020

    1,318,540   
 

Scentre Group

 
  1,870,000     

2.38%, 11/05/2019 (1)

    1,882,722   
 

Simon Property Group L.P.

 
  1,965,000     

1.50%, 02/01/2018 (1)

    1,967,830   
 

Ventas Realty L.P.

 
  570,000     

1.25%, 04/17/2017

    569,255   
  1,750,000     

1.55%, 09/26/2016

    1,760,524   
 

Ventas Realty L.P. / Ventas Capital Corp.

 
  3,000,000     

2.00%, 02/15/2018

    3,031,212   
   

 

 

 
      14,866,263   
   

 

 

 
      Retail - 0.3%  
 

CVS Health Corp.

 
  2,350,000     

2.25%, 08/12/2019

    2,381,730   
   

 

 

 
      Savings & Loans - 0.1%  
 

Nationwide Building Society

 
  885,000     

2.35%, 01/21/2020 (1)

    887,356   
   

 

 

 
      Semiconductors - 0.5%  
 

TSMC Global Ltd.

 
  3,450,000     

1.63%, 04/03/2018 (1)

    3,412,243   
   

 

 

 
      Software - 0.5%  
 

Fidelity National Information Services, Inc.

 
  750,000     

1.45%, 06/05/2017

    749,116   
 

Oracle Corp.

 
  3,000,000     

2.25%, 10/08/2019

    3,047,838   
   

 

 

 
      3,796,954   
   

 

 

 
      Telecommunications - 1.4%  
 

America Movil S.A.B. de C.V.

 
  1,200,000     

2.38%, 09/08/2016

    1,219,116   
 

AT&T, Inc.

 
  2,790,000     

2.45%, 06/30/2020 (6)

    2,786,873   
 

British Telecommunications plc

 
  1,785,000     

1.25%, 02/14/2017

    1,786,617   
 

Verizon Communications, Inc.

 
  2,350,000     

1.35%, 06/09/2017

    2,348,637   
  2,355,000     

3.65%, 09/14/2018

    2,494,053   
   

 

 

 
      10,635,296   
   

 

 

 
      Toys/Games/Hobbies - 0.3%  
 

Mattel, Inc.

 
  2,000,000     

2.35%, 05/06/2019

    1,994,866   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

104

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 57.5% - (continued)  
      Transportation - 1.1%  
 

AP Moeller - Maersk AS

 
$ 3,450,000     

2.55%, 09/22/2019 (1)

  $ 3,502,626   
 

FedEx Corp.

 
  825,000     

2.30%, 02/01/2020

    828,946   
 

Penske Truck Leasing Co.

 
  1,000,000     

2.50%, 03/15/2016 (1)

    1,012,104   
  2,050,000     

2.50%, 06/15/2019 (1)

    2,048,965   
  45,000     

2.88%, 07/17/2018 (1)

    45,983   
 

Ryder System, Inc.

 
  1,075,000     

2.45%, 09/03/2019

    1,083,968   
   

 

 

 
      8,522,592   
   

 

 

 
      Trucking & Leasing - 0.2%  
 

GATX Corp.

 
  1,145,000     

1.25%, 03/04/2017

    1,140,707   
   

 

 

 
 

Total Corporate Bonds
(cost $427,925,831)

  $ 432,454,823   
   

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 0.2%  
      Supranational - 0.2%  
 

Corp. Andina de Fomento

 
  1,500,000     

3.75%, 01/15/2016

  $ 1,537,325   
   

 

 

 
 

Total Foreign Government Obligations
(cost $1,502,156)

  $ 1,537,325   
   

 

 

 
MUNICIPAL BONDS - 0.3%  
      General - 0.1%  
 

New Jersey Economic Dev. Auth.

 
  365,000     

0.00%, 02/15/2018 (7)

  $ 343,797   
   

 

 

 
      General Obligation - 0.0%  
 

Illinois State, GO

 
  265,000     

5.88%, 03/01/2019

    295,043   
   

 

 

 
      Pollution - 0.2%  
 

Gloucester Cnty. Improvement Auth.

 
  1,300,000     

2.50%, 12/01/2029 (2)

    1,342,003   
   

 

 

 
 

Total Municipal Bonds
(cost $1,940,143)

  $ 1,980,843   
   

 

 

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8)  
      Aerospace/Defense - 0.5%  
 

BE Aerospace, Inc.

 
  1,017,450     

4.00%, 12/16/2021

  $ 1,027,624   
 

DigitalGlobe, Inc.

 
  1,019,200     

3.75%, 01/31/2020

    1,021,320   
 

Fly Funding II

 
  529,688     

3.50%, 08/09/2019

    530,445   
 

Transdigm, Inc.

 
  744,029     

3.75%, 02/28/2020

    745,808   
  570,688     

3.75%, 06/04/2021

    571,578   
   

 

 

 
      3,896,775   
   

 

 

 
      Airlines - 0.6%  
 

American Airlines, Inc.

 
  1,593,411     

3.75%, 06/27/2019

    1,599,051   
  1,000,000     

4.25%, 10/10/2021

    1,004,990   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Airlines - 0.6% - (continued)  
 

Delta Air Lines, Inc.

 
$ 1,506,526     

3.25%, 04/20/2017

  $ 1,505,969   
  283,475     

3.25%, 10/18/2018

    283,404   
   

 

 

 
      4,393,414   
   

 

 

 
      Auto Manufacturers - 0.4%  
 

Chrysler Group LLC

 
  618,750     

3.25%, 12/31/2018

    619,189   
  2,162,601     

3.50%, 05/24/2017

    2,164,763   
   

 

 

 
      2,783,952   
   

 

 

 
      Auto Parts & Equipment - 0.2%  
 

Goodyear Tire and Rubber Co.

 
  833,333     

4.75%, 04/30/2019

    840,408   
 

MPG Holdco I Inc.

 
  967,945     

4.25%, 10/20/2021

    967,945   
   

 

 

 
      1,808,353   
   

 

 

 
      Beverages - 0.1%  
 

Charger OpCo B.V.

 
  800,000     

3.50%, 07/23/2021

    802,504   
   

 

 

 
      Biotechnology - 0.6%  
 

Alkermes, Inc.

 
  2,932,331     

3.50%, 09/18/2019

    2,933,240   
 

Royalty Pharma

 
  1,525,613     

3.25%, 11/09/2018

    1,528,283   
   

 

 

 
      4,461,523   
   

 

 

 
      Chemicals - 0.5%  
 

Huntsman International LLC

 
  2,009,963     

3.75%, 08/12/2021

    2,015,992   
 

Ineos U.S. Finance LLC

 
  1,219,124     

3.75%, 05/04/2018

    1,220,806   
 

Minerals Technologies, Inc.

 
  654,592     

4.00%, 05/07/2021

    657,459   
   

 

 

 
      3,894,257   
   

 

 

 
      Coal - 0.1%  
 

American Energy - Marcellus LLC

 
  820,000     

5.25%, 08/04/2020

    675,131   
   

 

 

 
      Commercial Services - 0.7%  
 

Acosta Holdco, Inc.

 
  1,706,425     

5.00%, 09/26/2021

    1,724,906   
 

Bright Horizons Family Solutions, Inc.

 
  503,413     

4.00%, 01/30/2020

    505,139   
 

Quikrete Holdings, Inc.

 
  1,002,066     

4.00%, 09/28/2020

    1,004,992   
 

TransUnion LLC

 
  1,412,156     

4.00%, 04/09/2021

    1,417,889   
 

Vantiv Holding LLC

 
  811,409     

3.75%, 06/13/2021

    814,200   
   

 

 

 
      5,467,126   
   

 

 

 
      Distribution/Wholesale - 0.1%  
 

ABC Supply Co., Inc.

 
  231,475     

3.50%, 04/16/2020

    231,910   
 

Swift Transportation Co.

 
  569,250     

3.75%, 06/09/2021

    571,100   
   

 

 

 
      803,010   
   

 

 

 
      Diversified Financial Services - 0.2%  
 

Delos Finance S.a.r.l.

 
  685,000     

3.50%, 03/06/2021

    686,343   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  105  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Diversified Financial Services - 0.2% - (continued)  
 

SAM Finance

 
$ 1,056,625     

4.25%, 12/17/2020

  $ 1,061,464   
   

 

 

 
      1,747,807   
   

 

 

 
      Electric - 0.7%  
 

Calpine Corp.

 
  1,194,375     

4.00%, 10/09/2019

    1,199,356   
 

EFS Cogen Holdings I LLC

 
  292,361     

3.75%, 12/17/2020

    293,822   
 

NRG Energy, Inc.

 
  2,336,729     

2.75%, 07/02/2018

    2,328,807   
 

Seadrill Partners Finco LLC

 
  1,217,669     

4.00%, 02/21/2021

    995,445   
 

Star West Generation LLC

 
  398,467     

4.25%, 03/13/2020

    399,961   
   

 

 

 
      5,217,391   
   

 

 

 
      Electrical Components & Equipment - 0.1%  
 

Southwire Co.

 
  801,900     

3.25%, 02/10/2021

    799,695   
   

 

 

 
      Electronics - 0.1%  
 

CDW LLC

 
  1,035,330     

3.25%, 04/29/2020

    1,033,912   
   

 

 

 
      Energy-Alternate Sources - 0.2%  
 

MEG Energy Corp.

 
  1,710,243     

3.75%, 03/31/2020

    1,687,257   
   

 

 

 
      Engineering & Construction - 0.1%  
 

AECOM Technology Corp.

 
  708,410     

3.75%, 10/15/2021

    715,784   
   

 

 

 
      Entertainment - 0.6%  
 

Cedar Fair L.P.

 
  502,543     

3.25%, 03/06/2020

    504,116   
 

Penn National Gaming, Inc.

 
  1,076,375     

3.25%, 10/30/2020

    1,075,417   
 

Scientific Games Corp.

 
  1,032,413     

6.00%, 10/01/2021

    1,042,737   
 

Tribune Co.

 
  1,954,881     

4.00%, 12/27/2020

    1,963,443   
   

 

 

 
      4,585,713   
   

 

 

 
      Environmental Control - 0.2%  
 

ADS Waste Holdings, Inc.

 
  542,733     

3.75%, 10/09/2019

    541,105   
 

US Ecology, Inc.

 
  760,748     

3.75%, 06/17/2021

    762,164   
   

 

 

 
      1,303,269   
   

 

 

 
      Food - 1.1%  
 

Albertson’s Holdings LLC

 
  2,015,000     

5.50%, 08/25/2021

    2,035,432   
 

Burger King

 
  951,524     

4.50%, 12/12/2021

    961,905   
 

Darling International, Inc.

 
  960,300     

3.25%, 01/06/2021

    959,100   
 

H.J. Heinz Co.

 
  904,074     

3.25%, 06/05/2020

    905,204   
 

JBS USA LLC

 
  1,462,725     

3.75%, 09/18/2020

    1,464,553   
 

Pinnacle Foods Group LLC

 
  1,182,000     

3.00%, 04/29/2020

    1,181,444   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Food - 1.1% - (continued)  
 

U.S. Foods, Inc.

 
$ 800,738     

4.50%, 03/31/2019

  $ 803,076   
   

 

 

 
      8,310,714   
   

 

 

 
      Food Service - 0.0%  
 

Aramark Services, Inc.

 
  61,707     

1.84%, 07/26/2016

    61,244   
   

 

 

 
      Healthcare-Products - 0.2%  
 

Immucor, Inc.

 
  1,589,864     

5.00%, 08/17/2018

    1,595,333   
   

 

 

 
      Healthcare-Services - 1.4%  
 

Alere, Inc.

 
  1,334,399     

4.25%, 06/30/2017

    1,341,405   
 

American Renal Holdings, Inc.

 
  1,229,397     

4.50%, 09/22/2019

    1,229,397   
 

Amsurg Corp.

 
  1,081,825     

3.75%, 07/16/2021

    1,085,611   
 

Community Health Systems, Inc.

 
  469,063     

4.25%, 01/27/2021

    471,844   
 

DaVita HealthCare Partners, Inc.

 
  1,498,675     

3.50%, 06/24/2021

    1,502,617   
 

HCA, Inc.

 
  990,641     

2.93%, 03/31/2017

    992,107   
  289,859     

3.03%, 05/01/2018

    290,320   
 

IMS Health, Inc.

 
  1,655,164     

3.50%, 03/17/2021

    1,654,336   
 

MPH Acquisition Holdings LLC

 
  522,500     

3.75%, 03/31/2021

    522,061   
 

Ortho-Clinical Diagnostics, Inc.

 
  863,475     

4.75%, 06/30/2021

    860,453   
 

Surgery Center Holdings, Inc.

 
  399,000     

5.25%, 11/03/2020

    401,992   
   

 

 

 
      10,352,143   
   

 

 

 
      Insurance - 0.5%  
 

Asurion LLC

 
  2,012,629     

5.00%, 05/24/2019

    2,022,330   
 

HUB International Ltd.

 
  1,753,414     

4.00%, 10/02/2020

    1,747,943   
   

 

 

 
      3,770,273   
   

 

 

 
      Leisure Time - 0.6%  
 

Aristocrat Leisure Ltd.

 
  1,328,615     

4.75%, 10/20/2021

    1,339,576   
 

Delta 2 (LUX) S.a.r.l.

 
  2,980,839     

4.75%, 07/30/2021

    2,983,194   
   

 

 

 
      4,322,770   
   

 

 

 
      Lodging - 0.7%  
 

Four Seasons Holdings, Inc.

 
  289,020     

3.50%, 06/27/2020

    289,621   
 

Hilton Worldwide Finance LLC

 
  1,534,375     

3.50%, 10/26/2020

    1,539,561   
 

La Quinta Intermediate Holdings LLC

 
  856,392     

4.00%, 04/14/2021

    858,799   
 

MGM Resorts International

 
  1,895,907     

3.50%, 12/20/2019

    1,895,111   
 

Station Casinos LLC

 
  856,586     

4.25%, 03/02/2020

    861,349   
   

 

 

 
      5,444,441   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

106

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Machinery-Diversified - 0.5%  
 

Gardner Denver, Inc.

 
$ 1,970,000     

4.25%, 07/30/2020

  $ 1,920,947   
 

Gates Global, Inc.

 
  1,512,400     

4.25%, 07/05/2021

    1,512,400   
   

 

 

 
      3,433,347   
   

 

 

 
      Media - 0.9%  
 

Advantage Sales & Marketing, Inc.

 
  1,298,475     

4.25%, 07/23/2021

    1,302,370   
 

Charter Communications Operating LLC

 
  407,738     

3.00%, 07/01/2020

    406,526   
  992,951     

3.00%, 01/03/2021

    990,051   
 

CSC Holdings, Inc

 
  106,855     

2.68%, 04/17/2020

    106,504   
 

Media General, Inc.

 
  1,287,623     

4.25%, 07/31/2020

    1,296,276   
 

Numericable U.S. LLC

 
  379,403     

4.50%, 05/21/2020

    380,826   
  438,547     

4.50%, 05/21/2020

    440,192   
 

Sinclair Television Group, Inc.

 
  290,000     

0.00%, 07/30/2021 (9)

    290,122   
 

Virgin Media Bristol LLC

 
  1,730,989     

3.50%, 06/07/2020

    1,731,751   
   

 

 

 
      6,944,618   
   

 

 

 
      Metal Fabricate/Hardware - 0.4%  
 

Rexnord LLC

 
  2,621,440     

4.00%, 08/21/2020

    2,629,462   
   

 

 

 
      Mining - 0.7%  
 

FMG Resources August 2006 Pty Ltd.

 
  2,979,777     

3.75%, 06/30/2019

    2,686,955   
 

Novelis, Inc.

 
  2,825,814     

3.75%, 03/10/2017

    2,829,346   
   

 

 

 
      5,516,301   
   

 

 

 
      Miscellaneous Manufacturing - 0.1%  
 

Filtration Group, Inc.

 
  296,250     

4.25%, 11/21/2020

    297,912   
 

Husky Injection Molding Systems, Ltd.

 
  250,816     

4.25%, 06/30/2021

    252,331   
   

 

 

 
      550,243   
   

 

 

 
      Oil & Gas - 0.4%  
 

Energy Transfer Equity L.P.

 
  2,007,000     

3.25%, 12/02/2019

    1,997,226   
 

EP Energy LLC

 
  490,000     

3.50%, 05/24/2018

    483,571   
 

Fieldwood Energy LLC

 
  659,955     

3.88%, 09/28/2018

    638,506   
   

 

 

 
      3,119,303   
   

 

 

 
      Oil & Gas Services - 0.4%  
 

Crosby U.S. Acquisition Corp.

 
  2,004,625     

3.75%, 11/23/2020

    1,859,290   
 

Pacific Drilling S.A.

 
  280,013     

4.50%, 06/03/2018

    246,260   
 

Paragon Offshore Finance Co.

 
  1,238,775     

3.75%, 07/18/2021

    922,887   
   

 

 

 
      3,028,437   
   

 

 

 
      Packaging & Containers - 0.8%  
 

Berry Plastics Holding Corp.

 
  3,087,000     

3.50%, 02/08/2020

    3,086,413   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Packaging & Containers - 0.8% - (continued)  
 

BWAY Holding Co., Inc.

 
$ 1,364,688     

5.50%, 08/14/2020

  $ 1,378,334   
 

Exopack Holdings S.A.

 
  444,375     

5.25%, 05/08/2019

    446,784   
 

Reynolds Group Holdings, Inc.

 
  874,077     

4.50%, 12/01/2018

    882,381   
   

 

 

 
      5,793,912   
   

 

 

 
      Pharmaceuticals - 0.2%  
 

Grifols Worldwide Operations Ltd.

 
  990,000     

3.18%, 02/27/2021

    992,188   
 

Valeant Pharmaceuticals International, Inc.

 
  820,000     

4.00%, 04/01/2022

    825,313   
   

 

 

 
      1,817,501   
   

 

 

 
      Provincial - 0.1%  
 

Seminole Tribe of Florida, Inc.

 
  468,700     

3.00%, 04/29/2020

    468,583   
   

 

 

 
      Real Estate - 0.0%  
 

Realogy Corp.

 
  166,616     

3.75%, 03/05/2020

    167,189   
   

 

 

 
      Retail - 1.4%  
 

99 Cents Only Stores

 
  428,475     

4.50%, 01/11/2019

    427,828   
 

Aristocrat Leisure Ltd.

 
  700,000     

5.00%, 03/11/2022

    708,281   
 

Armstrong World Industries, Inc.

 
  1,421,000     

3.50%, 03/15/2020

    1,421,597   
 

BJ’s Wholesale Club, Inc.

 
  1,975,000     

4.50%, 09/26/2019

    1,985,132   
 

Dollar Tree, Inc.

 
  920,000     

4.25%, 03/09/2022

    931,390   
 

Michaels Stores, Inc.

 
  431,200     

3.75%, 01/28/2020

    432,157   
  789,038     

4.00%, 01/28/2020

    792,872   
 

Neiman Marcus Group, Inc.

 
  2,187,368     

4.25%, 10/25/2020

    2,191,655   
 

Serta Simmons Holdings LLC

 
  1,125,010     

4.25%, 10/01/2019

    1,131,569   
 

Staples, Inc.

 
  490,000     

0.00%, 04/07/2021 (9)

    491,656   
   

 

 

 
      10,514,137   
   

 

 

 
      Semiconductors - 0.8%  
 

Avago Technologies Cayman Ltd.

 
  1,161,430     

3.75%, 05/06/2021

    1,166,273   
 

Entegris, Inc.

 
  872,007     

3.50%, 04/30/2021

    872,374   
 

Freescale Semiconductor, Inc.

 
  1,833,664     

4.25%, 02/28/2020

    1,840,540   
  374,300     

5.00%, 01/15/2021

    377,343   
 

Sensata Technologies B.V.

 
  1,990,000     

3.50%, 10/14/2021

    1,996,965   
   

 

 

 
      6,253,495   
   

 

 

 
      Software - 1.0%  
 

Activision Blizzard, Inc.

 
  1,495,000     

3.25%, 10/12/2020

    1,504,075   
 

Emdeon, Inc.

 
  1,564,601     

3.75%, 11/02/2018

    1,568,841   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  107  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 20.3% (8) - (continued)  
      Software - 1.0% - (continued)  
 

First Data Corp.

 
$ 515,000     

3.68%, 09/24/2018

  $ 515,644   
 

Infor U.S., Inc.

 
  787,171     

3.75%, 06/03/2020

    785,643   
 

Kronos, Inc.

 
  1,019,837     

4.50%, 10/30/2019

    1,025,119   
 

Magic Newco LLC

 
  1,711,156     

5.00%, 12/12/2018

    1,717,214   
   

 

 

 
      7,116,536   
   

 

 

 
      Telecommunications - 1.9%  
 

Altice Financing S.A.

 
  275,000     

5.25%, 02/04/2022

    278,094   
  1,007,250     

5.50%, 07/02/2019

    1,023,195   
 

Crown Castle Operating Co.

 
  592,500     

3.00%, 01/31/2021

    592,701   
 

Intelsat Jackson Holdings S.A.

 
  2,128,196     

3.75%, 06/30/2019

    2,125,535   
 

Level 3 Financing, Inc.

 
  510,000     

4.00%, 08/01/2019

    510,954   
  1,228,500     

4.00%, 01/15/2020

    1,231,190   
  1,255,000     

4.50%, 01/31/2022

    1,255,791   
 

Syniverse Holdings, Inc.

 
  2,051,357     

4.00%, 04/23/2019

    1,975,293   
 

Telesat Canada

 
  1,596,119     

3.50%, 03/28/2019

    1,593,134   
 

TransFirst Holding, Inc.

 
  329,175     

5.50%, 11/12/2021

    331,440   
 

Univision Communications, Inc.

 
  1,959,816     

4.00%, 03/01/2020

    1,960,894   
  298,843     

4.00%, 03/01/2020

    298,935   
 

Ziggo Financing Partnership

 
  305,074     

3.50%, 01/15/2022

    305,107   
  196,596     

3.50%, 01/15/2022

    196,618   
  323,330     

3.50%, 01/15/2022

    323,366   
   

 

 

 
      14,002,247   
   

 

 

 
      Textiles - 0.2%  
 

PVH Corp.

 
  1,153,002     

3.25%, 02/13/2020

    1,158,928   
   

 

 

 
      Trucking & Leasing - 0.0%  
 

AWAS Finance Luxembourg S.A.

 
  246,101     

3.50%, 06/10/2016

    246,204   
   

 

 

 
 

Total Senior Floating Rate Interests
(cost $152,964,496)

  $ 152,694,234   
   

 

 

 
U.S. GOVERNMENT AGENCIES - 5.5%      
      FHLMC - 1.5%  
  5,000,000     

0.88%, 03/07/2018

  $ 4,990,075   
  1,245,294     

1.03%, 04/25/2024 (2)

    1,241,243   
  576,254     

1.18%, 02/25/2024 (2)

    575,036   
  12,434,727     

1.82%, 07/25/2021 (2)(5)

    1,050,585   
  13,967,187     

2.13%, 08/25/2018 (2)(5)

    774,411   
  2,205,062     

3.50%, 04/01/2027

    2,357,602   
   

 

 

 
          10,988,952  
   

 

 

 
      FNMA - 3.9%  
  14,000,000     

3.00%, 05/01/2030 (10)

    14,650,125   
  8,171,642     

3.50%, 12/01/2026

    8,686,483   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 5.5% - (continued)      
      FNMA - 3.9% - (continued)  
$ 5,600,000     

3.50%, 05/01/2030 (10)

  $ 5,944,750   
   

 

 

 
      29,281,358   
   

 

 

 
      GNMA - 0.1%      
  552,979     

5.00%, 08/20/2039

    597,621   
  461,884     

6.50%, 05/16/2031

    538,985   
   

 

 

 
      1,136,606   
   

 

 

 
 

Total U.S. Government Agencies
(cost $40,691,750)

  $ 41,406,916   
   

 

 

 
 

Total Long-Term Investments
(cost $766,333,007)

  $ 769,597,512   
   

 

 

 
SHORT-TERM INVESTMENTS - 0.6%      
      Other Investment Pools & Funds - 0.6%  
  4,421,983     

Fidelity Money Market Class 1

  $ 4,421,983   
   

 

 

 
 

Total Short-Term Investments
(cost $4,421,983)

  $ 4,421,983   
   

 

 

 
 

Total Investments
(cost $770,754,990) ^

    102.9    $ 774,019,495   
 

Other Assets and Liabilities

    (2.9 )%       (21,501,571
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $     752,517,924   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

108

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $770,754,990 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     7,038,304   

Unrealized Depreciation

     (3,773,799
  

 

 

 

Net Unrealized Appreciation

   $ 3,264,505   
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $162,490,710, which represents 21.6% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $0, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(5)  Securities disclosed are interest-only strips.

 

(6)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of this security was $2,788,577 at April 30, 2015.

 

(7) The interest rate disclosed for this holding is the effective yield on the date of the acquisition.

 

(8)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(9)  All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

 

(10)  Represents or includes a TBA transaction.

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional Amount      Market Value *      Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

U.S. Treasury 2-Year Note Future

     597         06/30/2015       $     130,538,500       $     130,901,579       $ 363,079   

Short position contracts:

              

U.S. Treasury 10-Year Note Future

     37         06/19/2015       $ 4,732,749       $ 4,749,875       $ (17,126

U.S. Treasury 5-Year Note Future

     1,175         06/30/2015         140,297,615         141,156,056         (858,441

U.S. Treasury Long Bond Future

     10         06/19/2015         1,621,350         1,595,937                25,413   
              

 

 

 

Total

               $ (850,154
              

 

 

 

Total futures contracts

               $ (487,075
              

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

109

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Other Abbreviations:

CD

   Certificate of Deposit

CLO

   Collateralized Loan Obligation

CMO

   Collateralized Mortgage Obligation

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

LIBOR

   London Interbank Offered Rate

REIT

   Real Estate Investment Trust

TBA

   To Be Announced
Municipal Abbreviations:

GO

   General Obligation

 

The accompanying notes are an integral part of these financial statements.

 

 

  110  

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)      Level 3  

Assets

         

Asset & Commercial Mortgage Backed Securities

   $     139,523,371      $      $ 139,523,371       $     —   

Corporate Bonds

     432,454,823               432,454,823           

Foreign Government Obligations

     1,537,325               1,537,325           

Municipal Bonds

     1,980,843               1,980,843           

Senior Floating Rate Interests

     152,694,234               152,694,234           

U.S. Government Agencies

     41,406,916               41,406,916           

Short-Term Investments

     4,421,983        4,421,983                  
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ 774,019,495      $     4,421,983      $     769,597,512       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Futures Contracts (2)

   $ 388,492      $ 388,492      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ 388,492      $ 388,492      $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Liabilities

         

Futures Contracts (2)

   $ (875,567   $ (875,567   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ (875,567   $ (875,567   $       $   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

111

 


The Hartford Short Duration Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Total  

Beginning balance

   $      14,715,944      $      14,715,944   

Purchases

     462,967        462,967   

Sales

     (1,338,313     (1,338,313

Accrued discounts/(premiums)

     (11,255     (11,255

Total realized gain/(loss)

     447        447   

Net change in unrealized appreciation/depreciation

     7,895        7,895   

Transfers into Level 3 (1)

              

Transfers out of Level 3 (1)

     (13,837,685     (13,837,685
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  112  

 


The Hartford Strategic Income Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     29.1

Aa/AA

     1.7   

A

     7.1   

Baa/BBB

     18.9   

Ba/BB

     30.1   

B

     13.8   

Caa/CCC or Lower

     11.9   

Not Rated

     6.9   

Non-Debt Securities and Other Short-Term Instruments

     6.1   

Other Assets & Liabilities

     (25.6
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     0.1

Preferred Stocks

     0.1   
  

 

 

 

Total

     0.2
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     15.8

Corporate Bonds

     28.8   

Foreign Government Obligations

     22.4   

Municipal Bonds

     1.0   

Senior Floating Rate Interests

     24.3   

U.S. Government Agencies

     26.2   

U.S. Government Securities

     1.0   
  

 

 

 

Total

     119.5
  

 

 

 

Short-Term Investments

     5.8

Purchased Options

     0.1   

Other Assets & Liabilities

     (25.6
  

 

 

 

Total

     100.0
  

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

113

 


The Hartford Strategic Income Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 15.8%  
            Asset-Backed - Finance & Insurance - 1.4%  
   

Cent CLO Ltd.

 
  $        1,235,000     

1.51%, 08/01/2024 (1)(2)

  $ 1,234,382   
   

First Franklin Mortgage Loan Trust

 
    1,155,000     

0.42%, 04/25/2036 (2)

    746,083   
   

GSAMP Trust

 
    2,104,078     

0.27%, 01/25/2037 (2)

    1,247,735   
   

Race Point IX CLO Ltd.

 
    1,190,000     

1.77%, 04/15/2027 (1)(2)

    1,191,190   
   

SpringCastle America Funding LLC

 
    1,238,438     

2.70%, 05/25/2023 (1)

    1,244,701   
     

 

 

 
        5,664,091   
     

 

 

 
            Asset-Backed - Home Equity - 1.6%  
   

GSAA Home Equity Trust

 
    912,746     

0.25%, 12/25/2046 (2)

    536,662   
    1,944,095     

0.26%, 02/25/2037 (2)

    1,046,806   
    485,415     

0.27%, 03/25/2037 (2)

    262,665   
    673,134     

0.35%, 03/25/2047 (2)

    341,040   
    1,567,661     

0.36%, 11/25/2036 (2)

    850,722   
    1,404,682     

0.41%, 04/25/2047 (2)

    930,154   
    630,474     

5.88%, 09/25/2036

    368,763   
   

Morgan Stanley ABS Capital I

 
    183,075     

0.33%, 06/25/2036 (2)

    167,083   
   

Morgan Stanley Mortgage Loan Trust

 
    1,117,739     

0.35%, 11/25/2036 (2)

    541,051   
   

Renaissance Home Equity Loan Trust

 
    87,086     

5.91%, 04/25/2037

    49,646   
   

Soundview Home Loan Trust

 
    1,565,937     

0.42%, 07/25/2036 (2)

    983,466   
    280,000     

0.43%, 11/25/2036 (2)

    192,974   
     

 

 

 
        6,271,032   
     

 

 

 
            Commercial Mortgage-Backed Securities - 2.2%  
   

Citigroup Commercial Mortgage Trust

 
    180,000     

4.56%, 03/10/2047 (1)(2)

    147,308   
   

Commercial Mortgage Pass-Through Certificates

 
    330,000     

4.75%, 10/15/2045 (1)(2)

    260,908   
   

Community or Commercial Mortgage Trust

 
    105,000     

4.73%, 10/15/2045 (1)(2)

    87,040   
   

GS Mortgage Securities Trust

 
    270,000     

3.58%, 06/10/2047

    200,529   
    465,167     

3.67%, 04/10/2047 (1)

    332,013   
    1,795,000     

5.02%, 11/10/2045 (1)(2)

    1,817,567   
   

Hilton USA Trust

 
    1,374,724     

3.92%, 11/05/2030 (1)(2)

    1,374,280   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    485,000     

4.57%, 12/15/2047 (1)(2)

    446,013   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    205,776     

2.75%, 10/15/2045 (1)(2)

    165,137   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    390,000     

4.50%, 08/15/2045 (1)

    307,106   
   

Morgan Stanley Capital I Trust

 
    365,000     

5.36%, 07/15/2049 (1)(2)

    334,459   
   

UBS-Barclays Commercial Mortgage Trust

 
    240,000     

4.23%, 03/10/2046 (1)(2)

    203,142   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 15.8% - (continued)
 
          Commercial Mortgage-Backed Securities - 2.2% -
(continued)
 
   

VNDO Mortgage Trust

 
  $ 710,000     

4.08%, 12/13/2029 (1)(2)

  $ 738,327   
   

WF-RBS Commercial Mortgage Trust

 
    875,000     

3.02%, 11/15/2047 (1)

    622,329   
    1,750,000     

4.96%, 11/15/2045 (1)(2)

    1,621,903   
    170,000     

5.00%, 06/15/2044 (1)(2)

    161,506   
    195,505     

5.00%, 04/15/2045 (1)(2)

    159,875   
     

 

 

 
        8,979,442   
     

 

 

 
          Whole Loan Collateral CMO - 10.6%  
   

Adjustable Rate Mortgage Trust

 
    121,292     

0.43%, 01/25/2036 (2)

    101,783   
    128,352     

0.68%, 01/25/2036 (2)

    110,893   
   

American Home Mortgage Assets Trust

 
    450,786     

0.31%, 03/25/2047 (2)

    357,654   
    140,867     

0.37%, 09/25/2046 (2)

    105,093   
    814,359     

1.08%, 10/25/2046 (2)

    579,004   
   

Banc of America Funding Corp.

 
    639,715     

0.37%, 10/20/2036 (2)

    478,656   
    214,149     

5.85%, 01/25/2037

    171,798   
   

Banc of America Mortgage Trust

 
    381,038     

2.67%, 09/25/2035 (2)

    348,936   
   

BCAP LLC Trust

 
    774,173     

0.35%, 01/25/2037 (2)

    613,685   
    746,959     

0.36%, 03/25/2037 (2)

    633,714   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    871,173     

2.41%, 10/25/2035 (2)

    858,180   
   

Bear Stearns Alt-A Trust

 
    270,441     

0.50%, 08/25/2036 (2)

    202,717   
   

Bear Stearns Mortgage Funding Trust

 
    387,250     

0.36%, 10/25/2036 (2)

    301,669   
   

Chase Mortgage Finance Trust

 
    1,050,000     

5.50%, 11/25/2035

    1,031,692   
   

Connecticut Avenue Securities Series

 
    185,000     

2.78%, 05/25/2024 (2)

    172,490   
    880,000     

3.08%, 07/25/2024 (2)

    833,909   
    1,155,000     

3.18%, 07/25/2024 (2)

    1,106,492   
    475,000     

5.08%, 11/25/2024 (2)

    505,308   
   

Countrywide Alternative Loan Trust

 
    728,173     

0.50%, 11/25/2035 (2)

    596,435   
    2,448,167     

0.58%, 10/25/2036 (2)

    1,755,647   
    948,363     

5.50%, 12/25/2035

    834,711   
    1,508,635     

5.75%, 05/25/2036

    1,340,850   
    1,124,395     

6.00%, 05/25/2036

    969,144   
   

Countrywide Home Loans, Inc.

 
    1,226,911     

2.55%, 09/25/2047 (2)

    1,091,473   
    1,197,337     

5.75%, 08/25/2037

    1,138,617   
   

Deutsche Alt-A Securities Mortgage Loan Trust

 
    406,415     

0.33%, 03/25/2037 (2)

    290,757   
   

Downey S & L Association Mortgage Loan Trust

 
    596,729     

1.05%, 03/19/2046 (2)

    458,469   
   

First Horizon Mortgage Pass-Through Trust

 
    166,933     

2.60%, 08/25/2037 (2)

    137,102   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  114  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 15.8% - (continued)
 
            Whole Loan Collateral CMO - 10.6% - (continued)  
   

GMAC Mortgage Corp. Loan Trust

 
  $        1,045,807     

2.94%, 09/19/2035 (2)

  $ 976,291   
    143,245     

2.98%, 04/19/2036 (2)

    127,040   
   

GSR Mortgage Loan Trust

 
    1,239,718     

2.65%, 04/25/2035 (2)

    1,196,686   
    1,665,088     

2.71%, 01/25/2036 (2)

    1,542,190   
    153,504     

2.76%, 10/25/2035 (2)

    133,657   
   

HarborView Mortgage Loan Trust

 
    3,651,441     

0.42%, 12/19/2036 (2)

    2,582,335   
    924,557     

0.51%, 09/19/2035 (2)

    729,811   
   

Impac CMB Trust

 
    92,016     

1.68%, 02/25/2036 (2)

    88,323   
   

Impac Secured Assets Corp.

 
    2,309,303     

0.46%, 08/25/2036 (2)

    1,705,164   
   

IndyMac Index Mortgage Loan Trust

 
    258,836     

0.42%, 07/25/2035 (2)

    224,786   
    553,448     

0.46%, 07/25/2035 (2)

    460,739   
    340,897     

0.47%, 01/25/2036 (2)

    236,755   
    1,949,309     

0.58%, 07/25/2046 (2)

    1,088,812   
   

JP Morgan Mortgage Trust

 
    512,893     

2.39%, 11/25/2035 (2)

    486,015   
    4,984     

2.54%, 08/25/2036 (2)

    4,389   
    368,327     

2.55%, 09/25/2035 (2)

    351,057   
    591,049     

2.61%, 05/25/2036 (2)

    542,002   
    714,559     

2.61%, 05/25/2036 (2)

    634,261   
   

Lehman XS Trust

 
    521,430     

0.39%, 07/25/2046 (2)

    413,034   
    201,277     

0.42%, 06/25/2047 (2)

    135,120   
    109,384     

1.03%, 09/25/2047 (2)

    87,454   
   

Merrill Lynch Mortgage Investors Trust

 
    432,165     

2.55%, 07/25/2035 (2)

    350,148   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    2,113,439     

3.47%, 06/25/2036 (2)

    1,618,387   
   

RBSGC Mortgage Pass-Through Certificates

 
    640,685     

6.25%, 01/25/2037

    579,070   
   

Residential Accredit Loans, Inc.

 
    231,251     

0.48%, 04/25/2036 (2)

    165,613   
    260,690     

0.94%, 09/25/2046 (2)

    176,330   
    2,331,426     

1.39%, 11/25/2037 (2)

    1,488,579   
   

Residential Asset Securitization Trust

 
    822,879     

0.63%, 03/25/2035 (2)

    668,108   
   

Residential Funding Mortgage Securities, Inc.

 
    1,341,134     

2.70%, 08/25/2035 (2)

    1,062,857   
    125,459     

3.03%, 04/25/2037 (2)

    109,363   
   

Sequoia Mortgage Trust

 
    265,092     

0.45%, 01/20/2035 (2)

    250,885   
    68,863     

2.49%, 07/20/2037 (2)

    58,852   
   

Springleaf Mortgage Loan Trust

 
    1,035,172     

3.52%, 12/25/2065 (1)(2)

    1,054,991   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    2,104,153     

2.49%, 02/25/2036 (2)

    1,690,102   
   

Structured Asset Mortgage Investments II Trust

 
    1,663,997     

0.41%, 02/25/2036 (2)

    1,326,268   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED
SECURITIES - 15.8% - (continued)
 
            Whole Loan Collateral CMO - 10.6% - (continued)  
   

WaMu Mortgage Pass-Through Certificates Trust

 
  $        194,095     

0.60%, 06/25/2044 (2)

  $ 179,570   
    171,058     

2.20%, 11/25/2046 (2)

    154,178   
   

Wells Fargo Alternative Loan Trust

 
    241,564     

2.57%, 12/28/2037 (2)

    207,684   
    3,548     

6.25%, 11/25/2037

    3,460   
   

Wells Fargo Mortgage Backed Securities Trust

 
    394,292     

2.50%, 09/25/2036 (2)

    366,194   
     

 

 

 
        42,383,438   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $60,683,635)

  $ 63,298,003   
     

 

 

 
     
CORPORATE BONDS - 28.8%  
            Apparel - 0.2%  
   

William Carter Co.

 
    950,000     

5.25%, 08/15/2021

  $ 985,625   
     

 

 

 
            Auto Parts & Equipment - 0.0%  
   

ZF North America Capital, Inc.

 
    150,000     

4.75%, 04/29/2025

    150,375   
     

 

 

 
            Chemicals - 0.4%  
   

Eagle Spinco, Inc.

 
    545,000     

4.63%, 02/15/2021

    551,812   
   

NOVA Chemicals Corp.

 
    845,000     

5.00%, 05/01/2025 (1)

    890,419   
     

 

 

 
        1,442,231   
     

 

 

 
            Coal - 0.1%  
   

Peabody Energy Corp.

 
    40,000     

6.00%, 11/15/2018

    31,525   
    860,000     

6.50%, 09/15/2020

    533,200   
     

 

 

 
        564,725   
     

 

 

 
            Commercial Banks - 9.3%  
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        2,200,000     

7.00%, 02/19/2019 (2)(3)(4)

    2,532,026   
  $        1,200,000     

9.00%, 05/09/2018 (2)(3)(4)

    1,297,500   
   

Banco do Brasil S.A.

 
    1,861,000     

3.88%, 10/10/2022

    1,759,575   
    425,000     

6.25%, 04/15/2024 (2)(3)(4)

    314,585   
   

Banco Santander S.A.

 
  EUR        2,900,000     

6.25%, 03/12/2019 (2)(3)(4)

    3,268,476   
    100,000     

6.25%, 09/11/2021 (2)(3)(4)

    111,909   
   

Barclays Bank plc

 
    925,000     

8.00%, 12/15/2020 (2)(3)

    1,142,624   
  $        1,050,000     

8.25%, 12/15/2018 (2)(3)

    1,118,458   
   

CIT Group, Inc.

 
    1,017,000     

5.50%, 02/15/2019 (1)

    1,064,036   
   

Citigroup, Inc.

 
    310,000     

6.68%, 09/13/2043

    397,754   
   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

 
  EUR        250,000     

5.50%, 06/29/2020 (2)(3)(4)

    293,906   
   

Credit Agricole S.A.

 
    1,050,000     

6.50%, 06/23/2021 (2)(3)(4)

    1,234,377   
  $        435,000     

6.63%, 09/23/2019 (1)(2)(3)

    439,551   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  115  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Commercial Banks - 9.3% - (continued)  
   

Credit Suisse Group AG

 
  EUR        475,000     

5.75%, 09/18/2025 (2)(4)

  $ 616,183   
  $        990,000     

6.25%, 12/18/2024 (1)(2)(3)

    980,100   
    675,000     

7.88%, 02/24/2041 (2)(4)

    714,656   
   

Export-Import Bank of India

 
    3,944,000     

2.75%, 08/12/2020 (4)

    3,899,275   
   

HSBC Holdings plc

 
    450,000     

5.25%, 03/14/2044

    500,251   
    675,000     

5.63%, 01/17/2020 (2)(3)

    690,188   
    600,000     

6.38%, 09/17/2024 (2)(3)

    620,400   
   

ING Groep N.V.

 
    650,000     

6.00%, 04/16/2020 (2)(3)

    647,156   
    445,000     

6.50%, 04/16/2025 (2)(3)

    442,497   
   

JP Morgan Chase & Co.

 
    2,345,000     

5.63%, 08/16/2043

    2,735,044   
   

KBC Groep N.V.

 
  EUR        575,000     

5.63%, 03/19/2019 (2)(3)(4)

    648,060   
   

Lloyds Banking Group plc

 
    1,825,000     

6.38%, 06/27/2020 (2)(3)(4)

    2,182,760   
  GBP        750,000     

7.00%, 06/27/2019 (2)(3)(4)

    1,178,626   
   

Morgan Stanley

 
  $        360,000     

4.30%, 01/27/2045

    354,000   
   

Societe Generale S.A.

 
    785,000     

6.00%, 01/27/2020 (1)(2)(3)

    748,183   
  EUR        650,000     

6.75%, 04/07/2021 (2)(3)(4)

    752,916   
  $        2,350,000     

8.25%, 11/29/2018 (3)(4)

    2,496,875   
   

Standard Chartered plc

 
    1,350,000     

6.50%, 04/02/2020 (1)(2)(3)

    1,364,043   
   

UniCredit S.p.A.

 
    500,000     

8.00%, 06/03/2024 (2)(3)(4)

    511,000   
     

 

 

 
        37,056,990   
     

 

 

 
            Commercial Services - 0.7%  
   

ADT Corp.

 
    1,025,000     

6.25%, 10/15/2021

    1,101,875   
   

Cardtronics, Inc.

 
    315,000     

5.13%, 08/01/2022 (1)

    312,638   
   

Sotheby’s

 
    820,000     

5.25%, 10/01/2022 (1)

    817,950   
   

United Rentals North America, Inc.

 
    220,000     

4.63%, 07/15/2023

    223,027   
    280,000     

5.50%, 07/15/2025

    283,654   
     

 

 

 
        2,739,144   
     

 

 

 
            Construction Materials - 0.7%  
   

Building Materials Corp. of America

 
    680,000     

5.38%, 11/15/2024 (1)

    697,000   
    174,000     

6.75%, 05/01/2021 (1)

    184,875   
   

Cemex S.A.B. de C.V.

 
  EUR        145,000     

4.38%, 03/05/2023 (1)

    162,471   
   

Grupo Cementos de Chihuahua S.A.B. de C.V.

 
  $        1,180,000     

8.13%, 02/08/2020 (1)

    1,277,350   
   

Norbord, Inc.

 
    440,000     

6.25%, 04/15/2023 (1)

    444,950   
   

USG Corp.

 
    15,000     

5.50%, 03/01/2025 (1)

    15,750   
     

 

 

 
        2,782,396   
     

 

 

 
            Diversified Financial Services - 0.9%  
   

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
    970,000     

4.50%, 05/15/2021 (1)

    1,020,925   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Diversified Financial Services - 0.9% - (continued)  
   

Aircastle Ltd.

 
  $        160,000     

5.50%, 02/15/2022

  $ 170,800   
   

Intercorp Peru Ltd.

 
    420,000     

5.88%, 02/12/2025 (1)

    424,200   
   

International Lease Finance Corp.

 
    390,000     

5.88%, 04/01/2019

    424,125   
    100,000     

5.88%, 08/15/2022

    112,750   
   

Navient Corp.

 
    340,000     

5.50%, 01/15/2019

    345,610   
    400,000     

7.25%, 01/25/2022

    424,000   
    490,000     

8.45%, 06/15/2018

    546,693   
     

 

 

 
        3,469,103   
     

 

 

 
            Electric - 1.4%  
   

AES Corp.

 
    1,110,000     

8.00%, 06/01/2020

    1,293,150   
   

DPL, Inc.

 
    265,000     

7.25%, 10/15/2021

    286,200   
   

Empresa Electrica Angamos S.A.

 
    600,000     

4.88%, 05/25/2029 (1)

    606,750   
   

NRG Energy, Inc.

 
    645,000     

6.25%, 07/15/2022

    669,187   
   

Perusahaan Listrik Negara PT

 
    2,675,000     

5.50%, 11/22/2021 (4)

    2,902,375   
     

 

 

 
        5,757,662   
     

 

 

 
            Electrical Components & Equipment - 0.1%  
   

EnerSys

 
    430,000     

5.00%, 04/30/2023 (1)

    435,375   
     

 

 

 
            Engineering & Construction - 0.3%  
   

SBA Tower Trust

 
    1,355,000     

3.60%, 04/15/2043 (1)

    1,353,328   
     

 

 

 
            Environmental Control - 0.2%  
   

Clean Harbors, Inc.

 
    60,000     

5.13%, 06/01/2021

    61,200   
    601,000     

5.25%, 08/01/2020

    619,030   
     

 

 

 
        680,230   
     

 

 

 
            Food - 0.3%  
   

Marfrig Holding Europe B.V.

 
    600,000     

6.88%, 06/24/2019 (4)

    534,000   
   

Minerva Luxembourg S.A.

 
    560,000     

7.75%, 01/31/2023 (1)

    558,600   
     

 

 

 
        1,092,600   
     

 

 

 
            Forest Products & Paper - 0.1%  
   

Cascades, Inc.

 
    120,000     

5.50%, 07/15/2022 (1)

    121,500   
   

Clearwater Paper Corp.

 
    440,000     

5.38%, 02/01/2025 (1)

    447,700   
     

 

 

 
        569,200   
     

 

 

 
            Gas - 0.0%  
   

Southern Star Central Corp.

 
    70,000     

5.13%, 07/15/2022 (1)

    72,800   
     

 

 

 
            Healthcare-Services - 1.0%  
   

Community Health Systems, Inc.

 
    645,000     

5.13%, 08/01/2021

    667,575   
   

HCA, Inc.

 
    305,000     

4.75%, 05/01/2023

    320,250   
    880,000     

6.50%, 02/15/2020

    1,003,200   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  116  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Healthcare-Services - 1.0% - (continued)  
   

Tenet Healthcare Corp.

 
  $        1,380,000     

6.00%, 10/01/2020

  $ 1,473,150   
   

Wellcare Health Plans, Inc.

 
    420,000     

5.75%, 11/15/2020

    445,200   
     

 

 

 
        3,909,375   
     

 

 

 
            Holding Companies-Diversified - 0.1%  
   

Hutchison Whampoa Europe Finance Ltd.

 
  EUR        500,000     

3.75%, 05/10/2018 (2)(3)(4)

    576,640   
     

 

 

 
            Home Builders - 0.3%  
   

Lennar Corp.

 
  $        885,000     

4.50%, 06/15/2019

    911,550   
   

Ryland Group, Inc.

 
    451,000     

5.38%, 10/01/2022

    458,892   
     

 

 

 
        1,370,442   
     

 

 

 
            Insurance - 0.8%  
   

AXA S.A.

 
    1,330,000     

6.46%, 12/14/2018 (1)(2)(3)

    1,410,598   
   

Mapfre S.A.

 
  EUR        1,450,000     

5.92%, 07/24/2037 (2)

    1,754,303   
     

 

 

 
        3,164,901   
     

 

 

 
            Internet - 0.3%  
   

Alibaba Group Holding Ltd.

 
  $        400,000     

3.60%, 11/28/2024 (4)

    398,203   
   

Equinix, Inc.

 
    540,000     

4.88%, 04/01/2020

    557,550   
    105,000     

5.38%, 04/01/2023

    108,413   
     

 

 

 
        1,064,166   
     

 

 

 
            Iron/Steel - 0.6%  
   

ArcelorMittal

 
    900,000     

6.00%, 08/05/2020

    939,375   
   

Steel Dynamics, Inc.

 
    270,000     

5.13%, 10/01/2021 (1)

    276,075   
    155,000     

5.50%, 10/01/2024 (1)

    160,037   
   

United States Steel Corp.

 
    840,000     

7.38%, 04/01/2020

    877,800   
     

 

 

 
        2,253,287   
     

 

 

 
            Lodging - 0.1%  
   

Choice Hotels International, Inc.

 
    420,000     

5.75%, 07/01/2022

    459,900   
     

 

 

 
            Machinery - Contruction & Mining - 0.1%  
   

Oshkosh Corp.

 
    245,000     

5.38%, 03/01/2025 (1)

    254,188   
     

 

 

 
            Machinery-Diversified - 0.2%  
   

Case New Holland Industrial, Inc.

 
    585,000     

7.88%, 12/01/2017

    644,962   
   

CNH Industrial Capital LLC

 
    130,000     

3.38%, 07/15/2019 (1)

    127,400   
     

 

 

 
        772,362   
     

 

 

 
            Media - 1.5%  
   

CCO Holdings LLC

 
    30,000     

5.13%, 02/15/2023

    29,654   
    770,000     

5.25%, 09/30/2022

    769,423   
    70,000     

5.75%, 09/01/2023

    70,700   
   

DISH DBS Corp.

 
    55,000     

5.88%, 11/15/2024

    54,175   
    525,000     

6.75%, 06/01/2021

    555,886   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Media - 1.5% - (continued)  
  $        425,000     

7.88%, 09/01/2019

  $ 479,719   
   

Gannett Co., Inc.

 
    200,000     

4.88%, 09/15/2021 (1)

    205,500   
    825,000     

5.13%, 10/15/2019

    869,344   
    470,000     

5.13%, 07/15/2020

    492,118   
   

Liberty Interactive LLC

 
    785,000     

8.25%, 02/01/2030

    869,387   
   

NBCUniversal Enterprise, Inc.

 
    440,000     

5.25%, 03/29/2049 (1)(3)

    464,200   
   

Numericable-SFR SAS

 
    235,000     

4.88%, 05/15/2019 (1)

    237,056   
   

Videotron Ltd.

 
    110,000     

5.00%, 07/15/2022

    113,498   
    750,000     

5.38%, 06/15/2024 (1)

    777,187   
     

 

 

 
        5,987,847   
     

 

 

 
            Mining - 0.3%  
   

FMG Resources August 2006 Pty Ltd.

 
    396,000     

6.88%, 04/01/2022 (1)

    299,970   
   

Southern Copper Corp.

 
    221,000     

5.25%, 11/08/2042

    203,170   
    400,000     

5.88%, 04/23/2045

    393,320   
   

Vedanta Resources plc

 
    310,000     

6.00%, 01/31/2019 (4)

    292,175   
     

 

 

 
        1,188,635   
     

 

 

 
            Oil & Gas - 3.7%  
   

Antero Resources Corp.

 
    205,000     

5.63%, 06/01/2023 (1)

    209,356   
   

Concho Resources, Inc.

 
    115,000     

6.50%, 01/15/2022

    121,037   
   

Ecopetrol S.A.

 
    2,701,000     

5.88%, 05/28/2045

    2,589,584   
   

Harvest Operations Corp.

 
    181,000     

6.88%, 10/01/2017

    167,199   
   

MEG Energy Corp.

 
    251,000     

7.00%, 03/31/2024 (1)

    247,285   
   

Nexen Energy ULC

 
    75,000     

5.88%, 03/10/2035

    86,280   
    390,000     

6.40%, 05/15/2037

    478,477   
   

Petrobras Global Finance B.V.

 
    4,020,000     

4.38%, 05/20/2023

    3,575,107   
  GBP        325,000     

5.38%, 10/01/2029

    431,689   
   

Petroleos Mexicanos

 
  $        3,698,000     

5.50%, 06/27/2044

    3,648,077   
  MXN        12,500,000     

7.47%, 11/12/2026

    781,694   
   

QEP Resources, Inc.

 
  $        20,000     

5.38%, 10/01/2022

    20,250   
    25,000     

6.80%, 03/01/2020

    26,313   
   

SM Energy Co.

 
    95,000     

6.13%, 11/15/2022 (1)

    99,750   
   

Tesoro Corp.

 
    455,000     

5.13%, 04/01/2024

    466,375   
   

WPX Energy, Inc.

 
    260,000     

5.25%, 09/15/2024

    239,850   
    425,000     

6.00%, 01/15/2022

    416,661   
   

YPF S.A.

 
    1,046,000     

8.75%, 04/04/2024 (4)

    1,091,606   
     

 

 

 
        14,696,590   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

117

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Packaging & Containers - 0.2%  
   

Graphic Packaging International, Inc.

 
  $        635,000     

4.88%, 11/15/2022

  $ 657,225   
     

 

 

 
            Pipelines - 1.3%  
   

Crestwood Midstream Partners L.P. /Crestwood Midstream Finance Corp.

 
    200,000     

6.25%, 04/01/2023 (1)

    209,000   
   

DCP Midstream Operating L.P.

 
    110,000     

4.95%, 04/01/2022

    109,374   
    100,000     

5.60%, 04/01/2044

    86,693   
   

Energy Transfer Equity L.P.

 
    2,125,000     

5.95%, 10/01/2043

    2,303,472   
    1,005,000     

7.50%, 10/15/2020

    1,130,625   
   

MarkWest Energy Partners L.P.

 
    210,000     

4.88%, 12/01/2024

    217,224   
    190,000     

6.75%, 11/01/2020

    198,550   
   

Tesoro Logistics L.P.

 
    230,000     

5.50%, 10/15/2019 (1)

    243,225   
    625,000     

6.25%, 10/15/2022 (1)

    663,281   
     

 

 

 
        5,161,444   
     

 

 

 
            Retail - 0.3%  
   

Family Tree Escrow LLC

 
    255,000     

5.75%, 03/01/2023 (1)

    267,750   
   

Group 1 Automotive, Inc.

 
    425,000     

5.00%, 06/01/2022 (1)

    427,125   
   

Sally Holdings LLC

 
    410,000     

5.75%, 06/01/2022

    435,625   
     

 

 

 
        1,130,500   
     

 

 

 
            Savings & Loans - 0.6%  
   

Nationwide Building Society

 
  GBP        1,525,000     

6.88%, 06/20/2019 (3)(4)

    2,352,579   
     

 

 

 
            Semiconductors - 0.1%  
   

Sensata Technologies B.V.

 
  $        235,000     

5.00%, 10/01/2025 (1)

    242,637   
    35,000     

5.63%, 11/01/2024 (1)

    37,363   
     

 

 

 
        280,000   
     

 

 

 
            Shipbuilding - 0.1%  
   

Huntington Ingalls Industries, Inc.

 
    405,000     

7.13%, 03/15/2021

    434,363   
     

 

 

 
            Software - 0.6%  
   

Activision Blizzard, Inc.

 
    1,390,000     

5.63%, 09/15/2021 (1)

    1,485,562   
   

Audatex North America, Inc.

 
    620,000     

6.00%, 06/15/2021 (1)

    640,342   
    225,000     

6.13%, 11/01/2023 (1)

    234,563   
   

MSCI, Inc.

 
    140,000     

5.25%, 11/15/2024 (1)

    145,600   
   

Open Text Corp.

 
    130,000     

5.63%, 01/15/2023 (1)

    134,875   
     

 

 

 
        2,640,942   
     

 

 

 
            Telecommunications - 1.7%  
   

America Movil S.A.B. de C.V.

 
  MXN        9,000,000     

7.13%, 12/09/2024

    581,111   
   

AT&T, Inc.

 
  $        390,000     

4.75%, 05/15/2046 (5)

    381,278   
   

Mobile Telesystems OJSC via MTS International Funding Ltd.

 
    1,040,000     

5.00%, 05/30/2023 (1)

    931,320   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 28.8% - (continued)  
            Telecommunications - 1.7% - (continued)  
   

Sprint Communications, Inc.

 
  $        1,114,000     

7.00%, 03/01/2020 (1)

  $ 1,232,363   
    451,000     

9.00%, 11/15/2018 (1)

    513,152   
   

T-Mobile USA, Inc.

 
    315,000     

5.25%, 09/01/2018

    326,025   
    85,000     

6.13%, 01/15/2022

    87,656   
    400,000     

6.46%, 04/28/2019

    413,000   
    710,000     

6.63%, 04/28/2021

    749,050   
    195,000     

6.73%, 04/28/2022

    205,481   
   

VimpelCom Holdings B.V.

 
    1,285,000     

5.95%, 02/13/2023 (1)

    1,169,350   
   

Wind Acquisition Finance S.A.

 
    350,000     

4.75%, 07/15/2020 (1)

    350,000   
     

 

 

 
        6,939,786   
     

 

 

 
            Transportation - 0.2%  
   

Kazakhstan Temir Zholy Finance B.V.

 
    385,000     

6.95%, 07/10/2042 (4)

    392,700   
    410,000     

6.95%, 07/10/2042 (4)

    418,200   
     

 

 

 
        810,900   
     

 

 

 
   

Total Corporate Bonds
(cost $117,091,136)

  $ 115,257,856   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 22.4%      
            Argentina - 0.8%  
   

Argentine Republic Government International Bond

 
    3,350,000     

8.75%, 06/02/2017 (6)

  $ 3,266,250   
     

 

 

 
            Austria - 0.1%  
   

Austria Government Bond

 
  EUR        220,000     

1.65%, 10/21/2024 (1)(4)

    273,822   
    225,000     

1.95%, 06/18/2019 (1)(4)

    272,594   
     

 

 

 
        546,416   
     

 

 

 
            Belgium - 0.3%  
   

Belgium Government Bond

 
    635,000     

1.25%, 06/22/2018 (4)

    742,381   
    250,000     

2.60%, 06/22/2024 (1)(4)

    331,943   
     

 

 

 
        1,074,324   
     

 

 

 
            Brazil - 1.2%  
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        2,434,281     

6.00%, 08/15/2016 (7)

    800,981   
    5,641,558     

6.00%, 05/15/2019 (7)

    1,861,734   
   

Brazilian Government International Bond

 
  $        1,295,000     

12.25%, 03/06/2030

    2,331,000   
     

 

 

 
        4,993,715   
     

 

 

 
            Canada - 0.1%  
   

Canadian Government Bond

 
  CAD        675,000     

1.75%, 09/01/2019

    579,566   
     

 

 

 
            Colombia - 1.3%  
   

Colombian TES

  

  COP        1,609,324,036     

3.00%, 03/25/2033 (7)

    595,900   
    965,021,708     

3.50%, 03/10/2021 (7)

    418,469   
    5,315,500,000     

5.00%, 11/21/2018

    2,218,079   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  118  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 22.4% - (continued)      
            Colombia - 1.3% - (continued)  
   

Empresa de Telecomunicaciones de Bogota

 
  $        5,084,000,000     

7.00%, 01/17/2023 (4)

  $ 2,031,892   
     

 

 

 
        5,264,340   
     

 

 

 
            Costa Rica - 0.1%  
   

Costa Rica Government International Bond

 
  CRC        215,750,000     

9.20%, 03/27/2019 (1)

    409,556   
     

 

 

 
            Denmark - 0.1%  
   

Denmark Government Bond

 
  DKK        1,745,000     

4.00%, 11/15/2019

    310,938   
     

 

 

 
            Dominican Republic - 0.5%  
   

Dominican Republic International Bond

 
  $        570,000     

5.50%, 01/27/2025 (1)

    588,525   
    1,437,000     

5.50%, 01/27/2025 (4)

    1,483,703   
     

 

 

 
        2,072,228   
     

 

 

 
            El Salvador - 0.4%  
   

El Salvador Government International Bond

 
    1,519,000     

5.88%, 01/30/2025 (4)

    1,509,506   
     

 

 

 
            Finland - 0.1%  
   

Finland Government Bond

 
  EUR        150,000     

1.13%, 09/15/2018 (1)(4)

    175,140   
    90,000     

1.50%, 04/15/2023 (1)(4)

    110,293   
     

 

 

 
        285,433   
     

 

 

 
            France - 0.6%  
   

France Government Bond OAT

 
    1,025,000     

0.50%, 11/25/2019

    1,172,859   
    1,000,000     

1.00%, 11/25/2018

    1,163,717   
     

 

 

 
        2,336,576   
     

 

 

 
            Gabon - 0.2%  
   

Gabonese Republic

  

  $        605,000     

6.38%, 12/12/2024 (4)

    610,748   
     

 

 

 
            Hungary - 0.7%  
   

Hungary Government International Bond

 
    784,000     

5.38%, 02/21/2023

    877,273   
    712,000     

5.38%, 03/25/2024

    800,003   
    296,000     

5.75%, 11/22/2023

    340,178   
    360,000     

6.25%, 01/29/2020

    411,665   
    444,000     

6.38%, 03/29/2021

    516,985   
     

 

 

 
        2,946,104   
     

 

 

 
            Indonesia - 1.6%  
   

Indonesia Government International Bond

 
    710,000     

6.63%, 02/17/2037 (4)

    861,763   
    965,000     

6.75%, 01/15/2044 (4)

    1,220,725   
    1,800,000     

7.75%, 01/17/2038 (4)

    2,454,750   
    860,000     

8.50%, 10/12/2035 (4)

    1,242,700   
   

Indonesia Treasury Bond

 
  IDR        7,366,000,000     

8.38%, 03/15/2024

    592,405   
     

 

 

 
        6,372,343   
     

 

 

 
            Ireland - 0.1%  
   

Ireland Government Bond

 
  EUR        160,000     

3.40%, 03/18/2024 (4)

    219,680   
    230,000     

4.50%, 10/18/2018

    298,130   
     

 

 

 
        517,810   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 22.4% - (continued)      
            Italy - 0.8%  
   

Italy Buoni Poliennali Del Tesoro

 
  EUR        610,000     

1.15%, 05/15/2017

  $ 698,603   
    1,525,000     

1.50%, 08/01/2019

    1,781,920   
    525,000     

3.75%, 09/01/2024

    706,487   
     

 

 

 
        3,187,010   
     

 

 

 
            Japan - 0.7%  
   

Japan Government Five Year Bond

 
  JPY        77,000,000     

0.30%, 03/20/2017

    648,266   
    165,000,000     

0.30%, 09/20/2018

    1,394,620   
   

Japan Government Ten Year Bond

 
    55,000,000     

0.80%, 09/20/2023

    482,298   
    50,000,000     

1.10%, 03/20/2021

    443,191   
     

 

 

 
        2,968,375   
     

 

 

 
            Malaysia - 0.1%  
   

Malaysia Government Bond

 
  MYR        1,620,000     

4.26%, 09/15/2016

    461,301   
    325,000     

5.73%, 07/30/2019

    98,801   
     

 

 

 
        560,102   
     

 

 

 
            Mexico - 3.2%  
   

Mexican Bonos

 
  MXN        36,880,300     

5.00%, 12/11/2019

    2,380,426   
    2,237,600     

6.50%, 06/09/2022

    152,398   
    1,749,000     

8.00%, 06/11/2020

    127,435   
   

Mexican Udibonos

 
    21,979,009     

4.00%, 11/15/2040 (7)

    1,573,327   
   

Mexico Government International Bond

 
  EUR        2,792,000     

3.00%, 03/06/2045

    3,174,184   
  $        580,000     

3.50%, 01/21/2021

    602,910   
  EUR        825,000     

4.00%, 03/15/2115

    925,425   
  $        3,126,000     

4.75%, 03/08/2044

    3,209,621   
  GBP        345,000     

5.63%, 03/19/2114

    551,994   
     

 

 

 
        12,697,720   
     

 

 

 
            Montenegro - 0.2%  
   

Montenegro Government International Bond

 
  EUR        690,000     

3.88%, 03/18/2020 (1)

    755,940   
     

 

 

 
            Netherlands - 0.3%  
   

Netherlands Government Bond

 
    700,000     

1.25%, 01/15/2019 (1)(4)

    823,056   
    195,000     

2.00%, 07/15/2024

    250,152   
     

 

 

 
        1,073,208   
     

 

 

 
            Norway - 0.0%  
   

Norway Government Bond

 
  NOK        955,000     

3.75%, 05/25/2021

    144,963   
     

 

 

 
            Panama - 0.5%  
   

Panama Government International Bond

 
  $        820,000     

3.75%, 03/16/2025

    830,250   
    870,000     

8.88%, 09/30/2027

    1,263,675   
     

 

 

 
        2,093,925   
     

 

 

 
            Peru - 0.6%  
   

Peruvian Government International Bond

 
    350,000     

5.63%, 11/18/2050

    420,875   
    1,125,000     

8.75%, 11/21/2033

    1,774,687   
     

 

 

 
        2,195,562   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

119

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 22.4% - (continued)      
            Poland - 0.1%      
   

Poland Government Bond

 
  PLN        205,000     

4.00%, 10/25/2023

  $ 63,114   
    1,100,000     

5.25%, 10/25/2017

    331,307   
     

 

 

 
        394,421   
     

 

 

 
            Romania - 0.9%  
   

Romania Government Bond

 
  RON        1,900,000     

5.85%, 04/26/2023

    572,376   
   

Romanian Government International Bond

 
  EUR        2,478,000     

2.88%, 10/28/2024 (4)

    2,980,670   
     

 

 

 
        3,553,046   
     

 

 

 
            Russia - 1.8%  
   

Russian Federal Bond - OFZ

 
  RUB        47,200,000     

7.50%, 02/27/2019

    822,403   
   

Russian Foreign Bond - Eurobond

 
  $        1,400,000     

3.25%, 04/04/2017 (4)

    1,423,030   
    2,200,000     

4.88%, 09/16/2023 (4)

    2,156,000   
    1,100,000     

5.00%, 04/29/2020 (4)

    1,119,250   
    1,298,750     

7.50%, 03/31/2030 (4)

    1,519,187   
     

 

 

 
        7,039,870   
     

 

 

 
            Singapore - 0.1%  
   

Singapore Government Bond

 
  SGD        60,000     

3.00%, 09/01/2024

    48,306   
    400,000     

3.75%, 09/01/2016

    312,961   
     

 

 

 
        361,267   
     

 

 

 
            South Africa - 1.1%  
   

South Africa Government Bond

 
  ZAR        18,175,000     

7.75%, 02/28/2023

    1,525,654   
    8,420,000     

8.00%, 01/31/2030

    684,429   
   

South Africa Government International Bond

 
  $        1,930,000     

5.88%, 09/16/2025

    2,199,235   
     

 

 

 
        4,409,318   
     

 

 

 
            Spain - 0.7%  
   

Spain Government Bond

 
  EUR        340,000     

0.50%, 10/31/2017 (1)(4)

    384,823   
    125,000     

2.75%, 10/31/2024 (1)(4)

    156,506   
    700,000     

4.50%, 01/31/2018

    878,363   
    915,000     

5.50%, 04/30/2021

    1,304,434   
     

 

 

 
        2,724,126   
     

 

 

 
            Sweden - 0.1%  
   

Sweden Government Bond

 
  SEK        350,000     

1.50%, 11/13/2023

    45,960   
    2,615,000     

3.75%, 08/12/2017

    342,546   
     

 

 

 
        388,506   
     

 

 

 
            Switzerland - 0.1%  
   

Switzerland Government Bond

 
  CHF        50,000     

2.00%, 05/25/2022 (4)

    61,704   
    145,000     

3.00%, 01/08/2018 (4)

    171,181   
     

 

 

 
        232,885   
     

 

 

 
            Tunisia - 0.1%  
   

Banque Centrale de Tunisie S.A.

 
  $        450,000     

5.75%, 01/30/2025 (1)

    464,625   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 22.4% - (continued)      
            Turkey - 1.9%  
   

Turkey Government Bond

 
  TRY        2,501,561     

2.50%, 05/04/2016 (7)

  $ 933,663   
    2,085,000     

9.00%, 01/27/2016

    773,508   
   

Turkey Government International Bond

 
  $        2,020,000     

5.13%, 03/25/2022

    2,138,675   
    1,230,000     

6.75%, 04/03/2018

    1,359,150   
    1,100,000     

7.00%, 09/26/2016

    1,182,500   
    1,058,000     

7.50%, 07/14/2017

    1,169,301   
     

 

 

 
        7,556,797   
     

 

 

 
            United Kingdom - 0.3%  
   

United Kingdom Gilt

 
  GBP        220,000     

1.00%, 09/07/2017 (4)

    340,063   
    365,000     

1.75%, 07/22/2019 (4)

    573,066   
    130,000     

2.00%, 07/22/2020 (4)

    205,825   
    50,000     

3.50%, 01/22/2045 (4)

    92,207   
     

 

 

 
        1,211,161   
     

 

 

 
            Uruguay - 0.6%  
   

Uruguay Government International Bond

 
  $        460,000     

4.13%, 11/20/2045

    422,050   
  UYU        38,166,269     

4.25%, 04/05/2027 (7)

    1,434,283   
    12,731,475     

4.38%, 12/15/2028 (7)

    483,143   
     

 

 

 
        2,339,476   
     

 

 

 
   

Total Foreign Government Obligations
(cost $90,756,566)

  $ 89,448,156   
     

 

 

 
     
MUNICIPAL BONDS - 1.0%      
            General - 0.8%  
   

Chicago Transit Auth.

 
  $        750,000     

6.90%, 12/01/2040

  $ 949,778   
   

Puerto Rico Commonwealth Gov’t Employees Retirement System

 
    1,900,000     

6.15%, 07/01/2038

    714,894   
    1,300,000     

6.20%, 07/01/2039

    489,138   
    2,365,000     

6.30%, 07/01/2043

    889,831   
    485,000     

6.55%, 07/01/2058

    182,481   
     

 

 

 
        3,226,122   
     

 

 

 
            Higher Education - 0.2%  
   

University of California

 
    835,000     

4.60%, 05/15/2031

    902,835   
     

 

 

 
   

Total Municipal Bonds
(cost $5,091,835)

  $ 4,128,957   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 24.3% (8)      
            Aerospace/Defense - 0.5%  
   

DigitalGlobe, Inc.

 
    333,200     

3.75%, 01/31/2020

  $ 333,893   
   

Fly Funding II

 
    773,438     

4.50%, 08/09/2019

    774,543   
   

Transdigm, Inc.

 
    819,058     

3.75%, 02/28/2020

    821,016   
     

 

 

 
        1,929,452   
     

 

 

 
            Agriculture - 0.2%  
   

Pinnacle Operating Corp.

 
    887,341     

4.75%, 11/15/2018

    888,450   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

120

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Airlines - 0.4%  
   

Delta Air Lines, Inc.

 
  $        969,773     

3.25%, 04/20/2017

  $ 969,415   
    601,163     

3.25%, 10/18/2018

    601,012   
     

 

 

 
        1,570,427   
     

 

 

 
            Auto Manufacturers - 0.3%  
   

Chrysler Group LLC

 
    1,207,131     

3.50%, 05/24/2017

    1,208,338   
     

 

 

 
            Auto Parts & Equipment - 0.3%  
   

Goodyear Tire and Rubber Co.

 
    750,000     

4.75%, 04/30/2019

    756,368   
   

MPG Holdco I Inc.

 
    486,429     

4.25%, 10/20/2021

    486,429   
     

 

 

 
        1,242,797   
     

 

 

 
            Biotechnology - 0.3%  
   

Alkermes, Inc.

 
    433,875     

3.50%, 09/18/2019

    434,010   
   

PQ Corp.

 
    610,876     

4.00%, 08/07/2017

    610,961   
     

 

 

 
        1,044,971   
     

 

 

 
            Chemicals - 0.7%  
   

AIlnex (Luxembourg) & Cy SCA

 
    64,672     

4.50%, 10/03/2019

    65,076   
   

AIlnex USA, Inc.

 
    33,555     

4.50%, 10/03/2019

    33,765   
   

Ferro Corp.

 
    338,300     

4.00%, 07/31/2021

    337,031   
   

Ineos U.S. Finance LLC

 
    154,921     

3.25%, 03/31/2022

    155,793   
    696,747     

3.75%, 05/04/2018

    697,709   
   

Minerals Technologies, Inc.

 
    521,842     

4.00%, 05/07/2021

    524,128   
   

Nexeo Solutions LLC

 
    741,421     

5.00%, 09/08/2017

    731,226   
   

Solenis International L.P. Co.

 
    278,600     

4.25%, 07/31/2021

    279,645   
     

 

 

 
        2,824,373   
     

 

 

 
            Coal - 0.3%  
   

American Energy - Marcellus LLC

 
    270,000     

5.25%, 08/04/2020

    222,299   
   

Arch Coal, Inc.

 
    1,190,578     

6.25%, 05/16/2018

    885,147   
     

 

 

 
        1,107,446   
     

 

 

 
            Commercial Services - 0.6%  
   

Acosta Holdco, Inc.

 
    597,000     

5.00%, 09/26/2021

    603,466   
   

AlixPartners LLP

 
    580,321     

4.00%, 07/10/2020

    583,211   
    236,000     

9.00%, 07/10/2021

    238,065   
   

Alliance Laundry System LLC

 
    449,767     

4.25%, 12/10/2018

    450,891   
   

Brickman Group Ltd.

 
    251,817     

4.00%, 12/18/2020

    252,046   
   

Moneygram International, Inc.

 
    241,960     

4.25%, 03/27/2020

    227,442   
   

Vantiv Holding LLC

 
    242,148     

3.75%, 06/13/2021

    242,981   
     

 

 

 
        2,598,102   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Distribution/Wholesale - 0.3%  
   

FPC Holdings, Inc.

 
  $        782,000     

5.25%, 11/19/2019

  $ 775,650   
   

Power Buyer LLC

 
    292,567     

4.25%, 05/06/2020

    292,201   
    15,662     

4.25%, 05/06/2020

    15,642   
   

Swift Transportation Co.

 
    212,850     

3.75%, 06/09/2021

    213,542   
     

 

 

 
        1,297,035   
     

 

 

 
            Diversified Financial Services - 0.4%  
   

SAM Finance

 
    987,500     

4.25%, 12/17/2020

    992,023   
   

Walter Investment Management Corp.

 
    500,177     

4.75%, 12/19/2020

    477,253   
     

 

 

 
        1,469,276   
     

 

 

 
            Electric - 1.0%  
   

Calpine Corp.

 
    595,725     

4.00%, 10/09/2019

    598,209   
   

Chief Exploration & Development LLC

 
    415,000     

7.50%, 05/12/2021

    392,382   
   

Energy Future Intermediate Holding Co. LLC

 
    235,000     

4.25%, 06/19/2016

    236,274   
   

NRG Energy, Inc.

 
    601,611     

2.75%, 07/02/2018

    599,572   
   

Seadrill Partners Finco LLC

 
    998,724     

4.00%, 02/21/2021

    816,457   
   

Star West Generation LLC

 
    500,400     

4.25%, 03/13/2020

    502,276   
   

Texas Competitive Electric Holdings Co. LLC

 
    500,000     

4.67%, 10/10/2017 (9)

    309,090   
   

TXU Energy

 
    564,356     

3.75%, 05/05/2016

    567,037   
     

 

 

 
        4,021,297   
     

 

 

 
            Electronics - 0.5%  
   

CDW LLC

 
    1,136,004     

3.25%, 04/29/2020

    1,134,448   
   

Ceridian LLC

 
    333,614     

4.50%, 09/15/2020

    331,945   
   

Eagle Parent, Inc.

 
    704,303     

4.00%, 05/16/2018

    706,944   
     

 

 

 
        2,173,337   
     

 

 

 
            Entertainment - 0.7%  
   

Party City Holdings, Inc.

 
    536,350     

4.00%, 07/27/2019

    537,615   
   

Scientific Games Corp.

 
    359,100     

6.00%, 10/01/2021

    362,691   
   

Tribune Co.

 
    1,088,094     

4.00%, 12/27/2020

    1,092,860   
   

US Finco LLC

 
    746,700     

4.00%, 05/29/2020

    745,767   
     

 

 

 
        2,738,933   
     

 

 

 
            Environmental Control - 0.1%  
   

ADS Waste Holdings, Inc.

 
    421,588     

3.75%, 10/09/2019

    420,323   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

121

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Food - 0.9%  
   

Albertson’s Holdings LLC

 
  $        1,045,000     

5.50%, 08/25/2021

  $ 1,055,596   
   

Burger King

 
    505,497     

4.50%, 12/12/2021

    511,012   
   

H.J. Heinz Co.

 
    399,627     

3.25%, 06/05/2020

    400,126   
   

Hostess Brands, Inc.

 
    183,150     

6.75%, 04/09/2020

    186,355   
   

U.S. Foods, Inc.

 
    1,245,585     

4.50%, 03/31/2019

    1,249,222   
     

 

 

 
        3,402,311   
     

 

 

 
            Food Service - 0.1%  
   

Hearthside Food Solutions

 
    372,188     

4.50%, 06/02/2021

    373,740   
     

 

 

 
            Forest Products & Paper - 0.2%  
   

Wilsonart LLC

 
    792,033     

4.00%, 10/31/2019

    790,710   
     

 

 

 
            Healthcare-Products - 0.1%  
   

Truven Health Analytics

 
    475,271     

4.50%, 06/06/2019

    475,471   
     

 

 

 
            Healthcare-Services - 1.6%  
   

American Renal Holdings, Inc.

 
    519,894     

8.50%, 03/20/2020

    517,944   
   

Community Health Systems, Inc.

 
    755,438     

4.25%, 01/27/2021

    759,917   
   

DaVita HealthCare Partners, Inc.

 
    565,725     

3.50%, 06/24/2021

    567,213   
   

HCA, Inc.

 
    589,020     

3.03%, 05/01/2018

    589,957   
   

Healogics, Inc.

 
    179,100     

5.25%, 07/01/2021

    180,108   
   

Medpace Holdings, Inc.

 
    524,292     

4.75%, 04/01/2021

    526,259   
   

Opal Acquisition, Inc.

 
    260,804     

5.00%, 11/27/2020

    261,130   
   

Ortho-Clinical Diagnostics, Inc.

 
    853,550     

4.75%, 06/30/2021

    850,563   
   

STHI Holding Corp.

 
    243,775     

4.50%, 08/06/2021

    243,368   
   

Surgery Center Holdings, Inc.

 
    264,338     

5.25%, 11/03/2020

    266,320   
   

U.S. Renal Care, Inc.

 
    1,163,693     

4.25%, 07/03/2019

    1,169,023   
    616,000     

10.25%, 01/03/2020

    619,850   
     

 

 

 
        6,551,652   
     

 

 

 
            Insurance - 1.0%  
   

Asurion LLC

 
    806,959     

5.00%, 05/24/2019

    810,849   
    980,000     

8.50%, 03/03/2021

    993,230   
   

CGSC of Delaware Holdings Corp.

 
    334,050     

5.00%, 04/16/2020

    317,347   
   

Evertec Group LLC

 
    397,913     

3.50%, 04/17/2020

    394,598   
   

National Financial Partners Corp.

 
    659,986     

4.50%, 07/01/2020

    662,461   
   

Sedgwick Claims Management Services, Inc.

 
    375,000     

6.75%, 02/28/2022

    369,727   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Insurance - 1.0% - (continued)  
   

USI, Inc.

 
  $        410,597     

4.25%, 12/27/2019

  $ 410,425   
     

 

 

 
        3,958,637   
     

 

 

 
            Internet - 0.4%  
   

ARG IH Corp.

 
    192,563     

4.78%, 11/15/2020

    193,352   
   

ION Trading Technologies S.a.r.l.

 
    525,000     

7.25%, 06/10/2022

    520,186   
   

Zayo Group LLC

 
    827,254     

4.00%, 05/06/2021

    827,254   
     

 

 

 
        1,540,792   
     

 

 

 
            Leisure Time - 0.9%  
   

Aristocrat Leisure Ltd.

 
    708,269     

4.75%, 10/20/2021

    714,113   
   

Delta 2 (LUX) S.a.r.l.

 
    1,541,221     

4.75%, 07/30/2021

    1,542,438   
    810,000     

7.75%, 07/31/2022

    810,761   
   

Town Sports International LLC

 
    392,661     

4.50%, 11/15/2020

    331,940   
     

 

 

 
        3,399,252   
     

 

 

 
            Lodging - 0.9%  
   

Caesars Entertainment Operating Co.

 
    1,325,721     

11.00%, 03/01/2017

    1,209,720   
   

Caesars Growth Properties Holdings LLC

 
    456,550     

6.25%, 05/08/2021

    407,928   
   

Four Seasons Holdings, Inc.

 
    303,716     

3.50%, 06/27/2020

    304,348   
    275,000     

6.25%, 12/27/2020

    276,719   
   

La Quinta Intermediate Holdings LLC

 
    486,883     

4.00%, 04/14/2021

    488,251   
   

MGM Resorts International

 
    899,300     

3.50%, 12/20/2019

    898,922   
     

 

 

 
        3,585,888   
     

 

 

 
            Machinery-Contruction & Mining - 0.3%  
   

American Rock Salt Holdings LLC

 
    992,500     

4.75%, 05/20/2021

    997,959   
   

Neff Rental LLC

 
    387,365     

7.25%, 06/09/2021

    381,070   
     

 

 

 
        1,379,029   
     

 

 

 
            Machinery-Diversified - 0.6%  
   

Brand Energy and Infrastructure

 
    814,688     

4.75%, 11/26/2020

    805,522   
   

Gates Global, Inc.

 
    955,200     

4.25%, 07/05/2021

    955,200   
   

MacDermaid, Inc.

 
    628,800     

4.50%, 06/07/2020

    634,202   
     

 

 

 
        2,394,924   
     

 

 

 
            Media - 1.0%  
   

Advantage Sales & Marketing, Inc.

 
    527,700     

4.25%, 07/23/2021

    529,283   
   

AVSC Holding Corp.

 
    252,450     

4.50%, 01/24/2021

    253,081   
   

Charter Communications Operating LLC

 
    628,037     

3.00%, 01/03/2021

    626,203   
   

Getty Images, Inc.

 
    527,850     

4.75%, 10/18/2019

    455,339   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  122  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Media - 1.0% - (continued)  
   

ION Media Networks, Inc.

 
  $        570,009     

4.75%, 12/18/2020

  $ 574,284   
   

Media General, Inc.

 
    535,494     

4.25%, 07/31/2020

    539,093   
   

Numericable U.S. LLC

 
    254,478     

4.50%, 05/21/2020

    255,432   
    294,147     

4.50%, 05/21/2020

    295,250   
   

Virgin Media Bristol LLC

 
    662,477     

3.50%, 06/07/2020

    662,769   
     

 

 

 
        4,190,734   
     

 

 

 
            Metal Fabricate/Hardware - 0.2%  
   

Rexnord LLC

 
    822,475     

4.00%, 08/21/2020

    824,992   
     

 

 

 
            Mining - 0.4%  
   

Ardagh Holdings USA, Inc.

 
    133,650     

4.00%, 12/17/2019

    134,218   
   

FMG Resources August 2006 Pty Ltd.

 
    1,021,383     

3.75%, 06/30/2019

    921,012   
   

Novelis, Inc.

 
    678,413     

3.75%, 03/10/2017

    679,261   
     

 

 

 
        1,734,491   
     

 

 

 
            Miscellaneous Manufacturing - 0.5%  
   

Bauer Performance Sports Ltd.

 
    242,335     

4.00%, 04/15/2021

    240,518   
   

Filtration Group, Inc.

 
    246,875     

4.25%, 11/21/2020

    248,260   
    105,000     

8.25%, 11/21/2021

    105,425   
   

Husky Injection Molding Systems, Ltd.

 
    108,195     

4.25%, 06/30/2021

    108,849   
    184,889     

7.25%, 06/30/2022

    182,578   
   

Sram LLC

 
    788,050     

4.02%, 04/10/2020

    786,734   
   

Wireco Worldgroup, Inc.

 
    525,471     

6.00%, 02/15/2017

    525,471   
     

 

 

 
        2,197,835   
     

 

 

 
            Oil & Gas - 0.9%  
   

Callon Petroleum Co.

 
    270,000     

8.50%, 10/08/2021

    269,325   
   

Drillships Ocean Ventures, Inc.

 
    272,938     

5.50%, 07/25/2021

    236,006   
   

Energy Transfer Equity L.P.

 
    265,000     

4.00%, 12/02/2019

    265,620   
   

EP Energy LLC

 
    526,667     

3.50%, 05/24/2018

    519,757   
   

NGPL Pipeco LLC

 
    516,869     

6.75%, 09/15/2017

    500,153   
   

Pinnacle Holding Co.

 
    628,295     

4.75%, 07/30/2019

    571,748   
   

Shelf Drilling Midco Ltd.

 
    305,000     

10.00%, 10/08/2018

    206,638   
   

Templar Energy LLC

 
    605,000     

8.50%, 11/25/2020

    456,019   
   

Western Refining, Inc.

 
    528,313     

4.25%, 11/12/2020

    529,633   
     

 

 

 
        3,554,899   
     

 

 

 
            Oil & Gas Services - 0.3%  
   

Crosby U.S. Acquisition Corp.

 
    903,563     

3.75%, 11/23/2020

    838,054   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Oil & Gas Services - 0.3% - (continued)  
   

Paragon Offshore Finance Co.

 
  $        293,525     

3.75%, 07/18/2021

  $ 218,676   
     

 

 

 
        1,056,730   
     

 

 

 
            Packaging & Containers - 0.6%  
   

BWAY Holding Co., Inc.

 
    357,300     

5.50%, 08/14/2020

    360,873   
   

CD&R Millenium Holding Co.

 
    228,850     

4.50%, 07/31/2021

    228,946   
   

Reynolds Group Holdings, Inc.

 
    995,195     

4.50%, 12/01/2018

    1,004,650   
   

Signode Industrial Group U.S., Inc.

 
    835,444     

3.75%, 05/01/2021

    833,615   
   

Tekni-Plex, Inc.

 
    95,000     

3.50%, 04/01/2022

    95,208   
     

 

 

 
        2,523,292   
     

 

 

 
            Pharmaceuticals - 0.4%  
   

PRA Holdings, Inc.

 
    884,851     

4.50%, 09/23/2020

    889,939   
   

Valeant Pharmaceuticals International, Inc.

 
    820,000     

4.00%, 04/01/2022

    825,313   
     

 

 

 
        1,715,252   
     

 

 

 
            Real Estate - 0.3%  
   

DTZ U.S. Borrower LLC

 
    291,544     

5.50%, 11/04/2021

    294,218   
    265,000     

9.25%, 11/04/2022

    267,430   
   

Realogy Corp.

 
    22,229     

2.26%, 10/10/2016

    22,007   
    727,042     

3.75%, 03/05/2020

    729,543   
     

 

 

 
        1,313,198   
     

 

 

 
            Retail - 1.6%  
   

Aristocrat Leisure Ltd.

 
    715,000     

5.00%, 03/11/2022

    723,459   
   

BJ’s Wholesale Club, Inc.

 
    536,582     

4.50%, 09/26/2019

    539,335   
   

Dollar Tree, Inc.

 
    360,000     

4.25%, 03/09/2022

    364,457   
   

J Crew Group, Inc

 
    522,312     

4.00%, 03/05/2021

    488,753   
   

Kate Spade & Co.

 
    913,100     

4.00%, 04/09/2021

    913,328   
   

Michaels Stores, Inc.

 
    514,500     

3.75%, 01/28/2020

    515,642   
    203,463     

4.00%, 01/28/2020

    204,451   
   

Neiman Marcus Group, Inc.

 
    1,060,373     

4.25%, 10/25/2020

    1,062,452   
   

Rite Aid Corp.

 
    745,000     

4.88%, 06/21/2021

    747,317   
    325,000     

5.75%, 08/21/2020

    328,656   
   

Staples, Inc.

 
    320,000     

3.50%, 04/07/2021

    321,082   
     

 

 

 
        6,208,932   
     

 

 

 
            Semiconductors - 0.6%  
   

Avago Technologies Cayman Ltd.

 
    785,800     

3.75%, 05/06/2021

    789,077   
   

Freescale Semiconductor, Inc.

 
    975,153     

4.25%, 02/28/2020

    978,810   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  123  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 24.3% (8) - (continued)      
            Semiconductors - 0.6% - (continued)  
   

NXP B.V.

 
  $        503,430     

3.25%, 01/11/2020

  $ 502,957   
     

 

 

 
        2,270,844   
     

 

 

 
            Software - 1.4%  
   

First Data Corp.

 
    1,200,000     

3.68%, 03/24/2018

    1,202,256   
    500,000     

3.68%, 09/24/2018

    500,625   
   

Infor U.S., Inc.

 
    869,802     

3.75%, 06/03/2020

    868,115   
   

Kronos, Inc.

 
    1,421,776     

4.50%, 10/30/2019

    1,429,141   
    668,215     

9.75%, 04/30/2020

    689,303   
   

Magic Newco LLC

 
    877,516     

5.00%, 12/12/2018

    880,622   
     

 

 

 
        5,570,062   
     

 

 

 
            Telecommunications - 2.3%  
   

Altice Financing S.A.

 
    100,000     

5.25%, 02/04/2022

    101,125   
    1,410,393     

5.50%, 07/02/2019 (10)

    1,432,719   
   

Crown Castle Operating Co.

 
    436,623     

3.00%, 01/31/2021

    436,771   
   

Entravision Communications Corp.

 
    945,725     

3.50%, 05/31/2020

    940,599   
   

Gray Television, Inc.

 
    151,351     

3.75%, 06/10/2021

    151,683   
   

Intelsat Jackson Holdings S.A.

 
    795,629     

3.75%, 06/30/2019

    794,635   
   

Level 3 Financing, Inc.

 
    860,000     

4.00%, 08/01/2019

    861,608   
    625,000     

4.50%, 01/31/2022

    625,394   
   

Salem Communications Corp.

 
    150,700     

4.50%, 03/13/2020

    150,763   
   

Syniverse Holdings, Inc.

 
    883,040     

4.00%, 04/23/2019

    850,297   
   

TransFirst Holding, Inc.

 
    214,463     

5.50%, 11/12/2021

    215,938   
    115,000     

9.00%, 11/12/2022

    115,767   
   

Univision Communications, Inc.

 
    741,936     

4.00%, 03/01/2020

    742,166   
    626,713     

4.00%, 03/01/2020

    627,058   
   

West Corp.

 
    607,894     

3.25%, 06/30/2018

    608,654   
   

XO Communications LLC

 
    381,150     

4.25%, 03/17/2021

    381,531   
     

 

 

 
        9,036,708   
     

 

 

 
            Trucking & Leasing - 0.2%  
   

Consolidated Container Co.

 
    619,174     

5.00%, 07/03/2019

    617,007   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $98,017,551)

  $ 97,201,939   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 26.2%  
            FHLMC - 1.7%      
    5,818,769     

0.52%, 10/25/2020 (2)(11)

  $ 70,814   
    900,000     

3.50%, 05/01/2045 (12)

    941,537   
    400,000     

3.50%, 06/01/2045 (12)

    417,508   
    1,000,000     

4.00%, 05/01/2045 (12)

    1,067,094   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 26.2% - (continued)  
            FHLMC - 1.7% - (continued)      
  $        1,100,000     

4.00%, 06/01/2045 (12)

  $ 1,172,256   
    1,500,000     

4.50%, 05/01/2045 (12)

    1,630,875   
    1,400,000     

5.00%, 05/01/2045 (12)

    1,555,153   
    100,000     

5.50%, 05/01/2045 (12)

    112,851   
     

 

 

 
        6,968,088   
     

 

 

 
            FNMA - 23.8%      
    2,030,000     

2.50%, 05/01/2030 (12)

    2,081,106   
    1,000,000     

3.00%, 05/01/2030 (12)

    1,046,438   
    36,869,000     

3.00%, 05/01/2045 (12)

    37,514,993   
    1,400,000     

3.50%, 05/01/2030 (12)

    1,486,187   
    42,800,000     

3.50%, 05/01/2045 (12)

    44,839,685   
    1,000,000     

4.00%, 05/01/2030 (12)

    1,055,469   
    6,100,000     

4.50%, 05/01/2045 (12)

    6,638,991   
    300,000     

5.00%, 05/13/2045 (12)

    334,132   
    472,497     

5.50%, 06/25/2042 (11)

    75,960   
     

 

 

 
        95,072,961   
     

 

 

 
            GNMA - 0.7%      
    500,000     

3.00%, 05/01/2045 (12)

    513,672   
    800,000     

4.00%, 05/01/2045 (12)

    854,844   
    900,000     

4.00%, 06/01/2045 (12)

    960,504   
    400,000     

5.00%, 05/01/2045 (12)

    447,182   
    100,000     

6.00%, 05/01/2045 (12)

    113,750   
     

 

 

 
        2,889,952   
     

 

 

 
   

Total U.S. Government Agencies
(cost $105,075,304)

  $ 104,931,001   
     

 

 

 
     
U.S. GOVERNMENT SECURITIES - 1.0%  
            U.S. Treasury Securities - 1.0%      
            U.S. Treasury Bonds - 0.4%      
    1,335,000     

3.75%, 11/15/2043 (13)

  $ 1,606,590   
    50,000     

5.38%, 02/15/2031 (13)

    69,734   
     

 

 

 
        1,676,324   
     

 

 

 
            U.S. Treasury Notes - 0.6%      
    900,000     

0.88%, 01/31/2018

    900,492   
    80,000     

1.88%, 09/30/2017 (13)

    82,181   
    495,000     

2.00%, 02/15/2025

    492,990   
    910,000     

2.13%, 08/15/2021 (13)

    931,329   
     

 

 

 
        2,406,992   
     

 

 

 
   

Total U.S. Government Securities
(cost $3,823,693)

  $ 4,083,316   
     

 

 

 
     
COMMON STOCKS - 0.1%      
            Energy - 0.1%      
    83,644,001     

KCA Deutag (6)(14)(15)

  $ 223,580   
     

 

 

 
   

Total Common Stocks
(cost $1,133,544)

  $ 223,580   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

124

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
PREFERRED STOCKS - 0.1%      
          Diversified Financials - 0.1%      
    50     

Citigroup Capital

  $ 1,294   
    20,000     

GMAC Capital Trust I Series 2

    525,600   
     

 

 

 
   

Total Preferred Stocks
(cost $515,309)

  $ 526,894   
     

 

 

 
   

Total Long-Term Investments
(cost $482,188,573)

  $ 479,099,702   
     
SHORT-TERM INVESTMENTS - 5.8%      
          Other Investment Pools & Funds - 5.8%      
    23,175,166     

Fidelity Money Market Class 1

  $ 23,175,166   
     

 

 

 
   

Total Short-Term Investments
(cost $23,175,166)

  $ 23,175,166   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $505,363,739)

    125.5    $ 502,274,868   
   

Total Purchased Options
(cost $309,020)

    0.1    $ 151,703   
     

 

 

    

 

 

 
   

Total Investments
(cost $505,672,759) ^

    125.6    $ 502,426,571   
   

Other Assets and Liabilities

    (25.6 )%           (102,258,063
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 400,168,508   
     

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

125

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $505,808,279 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 8,976,308   

Unrealized Depreciation

         (12,358,016
  

 

 

 

Net Unrealized Depreciation

   $ (3,381,708
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $46,387,604, which represents 11.6% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(4)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $56,559,816, which represents 14.3% of total net assets.

 

(5)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of this security was $388,611 at April 30, 2015.

 

(6)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(7)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(8)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(9)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(10)  This security, or a portion of this security, has unfunded loan commitments. As of April 30, 2015, the aggregate value of the unfunded commitment was $1,432,719, which rounds to zero percent of total net assets.

 

(11)  Securities disclosed are interest-only strips.

 

(12)  Represents or includes a TBA transaction.

 

(13)  This security, or a portion of this security, has been pledged as collateral in connection with futures contracts.

 

(14)  The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  

03/2011

     83,644,001       KCA Deutag    $     1,133,544   

 

  At April 30, 2015, the aggregate value of these securities were $223,580, which represents 0.1% of total net assets.

 

(15)  This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of this security was $223,580, which represents 0.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

The accompanying notes are an integral part of these financial statements.

 

 

  126  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Option Contracts Outstanding at April 30, 2015

 

Description

  

 

  Counter-
party
    Exercise Price/
FX Rate/ Rate
    Expiration
Date
    Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

  

             

Calls

                  

BRL Call/USD Put

       JPM        2.42 BRL per USD        09/28/15        BRL        2,600,000      $ 359      $ 18,515      $ (18,156

BRL Call/USD Put

       BOA        2.97 BRL per USD        06/02/15        BRL        2,870,000        13,187        22,293        (9,106

CNY Call/USD Put

       DEUT        6.15 CNY per USD        05/07/15        CNY        43,790,000        3,156        14,953        (11,797

EUR Call/USD Put

       BOA        1.14 EUR per USD        08/20/15        EUR        1,065,000        20,283        34,199        (13,916

EUR Call/USD Put

       BNP        1.12 EUR per USD        06/02/15        EUR        1,310,000        28,642        20,888        7,754   

EUR Call/USD Put

       BOA        1.27 EUR per USD        01/07/16        EUR        8,000,000        20,625        119,309        (98,684

HKD Call/USD Put

       GSC        7.75 HKD per USD        03/01/16        HKD        8,710,000        3,684        3,808        (124

MYR Call/USD Put

       GSC        3.65 MYR per USD        05/22/15        MYR        4,320,000        27,739        25,628        2,111   

RUB Call/USD Put

       BOA        51.49 RUB per USD        05/14/15        RUB        6,000,000        2,851        3,863        (1,012

RUB Call/USD Put

       GSC        36.97 RUB per USD        09/02/15        RUB        39,000,000        1,155        14,098        (12,943

TRY Call/USD Put

       BOA        2.72 TRY per USD        06/29/15        TRY        3,140,000        30,022        31,466        (1,444
            

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

               120,805,000      $     151,703      $     309,020      $     (157,317
            

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

               120,805,000      $     151,703      $     309,020      $ (157,317
            

 

 

   

 

 

   

 

 

   

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015

 

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

                    

Calls

                    

Credit Default Swaption ITRAXX.EUR.23

     CSI         287.50 EUR         05/20/15         EUR         (18,745,000   $     (236,620   $ (201,274   $     (35,346

Credit Default Swaption ITRAXX.EUR.23

     BOA         262.50 EUR         05/20/15         EUR         (13,085,000     (52,089     (139,414     87,325   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

                 (31,830,000   $ (288,709   $     (340,688   $ 51,979   
              

 

 

   

 

 

   

 

 

   

 

 

 

Written swaption contracts:

                    

Puts

                    

Credit Default Swaption ITRAXX.EUR.23

     CSI         287.50 EUR         05/20/15         EUR         (18,745,000   $ (100,683   $ (161,020   $ 60,337   

Credit Default Swaption ITRAXX.EUR.23

     BOA         262.50 EUR         05/20/15         EUR         (13,085,000     (142,546     (110,834     (31,712
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                 (31,830,000   $ (243,229   $ (271,854   $ 28,625   
              

 

 

   

 

 

   

 

 

   

 

 

 

Futures Contracts Outstanding at April 30, 2015

 

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Australian 3-Year Bond Future

     9         06/15/2015       $ 801,334       $ 796,314       $ (5,020

Canadian 10-Year Bond Future

     1         06/19/2015         116,366         114,632         (1,734

Euro-BOBL Future

     11         06/08/2015         1,546,893         1,540,874         (6,019

Euro-BTP Future

     6         06/08/2015         931,707         927,861         (3,846

Euro-OAT Future

     8         06/08/2015         1,375,816         1,378,891         3,075   

Euro-Schatz Future

     8         06/08/2015         985,019         985,146         127   

Japan 10-Year Bond Future

     4         06/11/2015         4,882,088         4,901,488         19,400   

Japan 10-Year Mini Bond Future

     3         06/10/2015         365,096         366,547         1,451   

Long Gilt Future

     48         06/26/2015         8,733,303         8,690,040         (43,263

U.S. Treasury 10-Year Note Future

     35         06/19/2015         4,530,745         4,493,125         (37,620

U.S. Treasury 2-Year Note Future

     97         06/30/2015         21,257,205         21,268,766         11,561   

U.S. Treasury 5-Year Note Future

     340         06/30/2015         41,039,234         40,845,157         (194,077

U.S. Treasury Long Bond Future

     38         06/19/2015         6,271,069         6,064,563         (206,506
              

 

 

 

Total

               $     (462,471
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

127

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Futures Contracts Outstanding at April 30, 2015 - (continued)

 

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

90-Day Euro Future

     122         12/14/2015       $     30,318,274       $     30,313,950       $ 4,324   

Euro-Bund Future

     15         06/08/2015         2,627,373         2,611,593         15,780   

U.S. Treasury CME Ultra Long Term Bond Future

     70         06/19/2015         11,960,743         11,515,000             445,743   
              

 

 

 

Total

               $ 465,847   
              

 

 

 

Total futures contracts

               $ 3,376   
              

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015

 

Description

   Principal
Amount
     Maturity
Date
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

FNMA, 5.50%

   $ 400,000         05/01/2045       $ 452,839       $     (589

GNMA, 4.50%

         1,400,000         05/01/2045             1,542,461         (274

GNMA, 4.50%

     700,000         05/01/2045         758,543         (27
        

 

 

    

 

 

 

Total

         $ 2,753,843       $ (890
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (0.7)% of total net assets.

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  
    Counter-
party
              (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Reference Entity

    Notional
Amount (a)
             

Credit default swaps on indices:

                 

Buy protection:

                 

ABX.HE.AA.06-1

  BCLY     USD        64,452      (0.32%)     07/25/45      $ 16,454      $      $ 13,245      $ (3,209

ABX.HE.AA.06-1

  JPM     USD        87,470      (0.32%)     07/25/45        23,125               17,976        (5,149

ABX.HE.AA.06-1

  BCLY     USD        69,976      (0.32%)     07/25/45        39,537               14,380        (25,157

ABX.HE.AA.06-1

  BCLY     USD        78,263      (0.32%)     07/25/45        44,219               16,083        (28,136

ABX.HE.AA.06-1

  JPM     USD        621,500      (0.32%)     07/25/45        163,144               127,721        (35,423

ABX.HE.AAA.06-1

  JPM     USD        141,597      (0.18%)     07/25/45        2,655               2,687        32   

ABX.HE.AAA.06-1

  MSC     USD        45,366      (0.18%)     07/25/45        919               861        (58

ABX.HE.AAA.06-1

  JPM     USD        10,998      (0.18%)     07/25/45        275               209        (66

ABX.HE.AAA.06-1

  JPM     USD        54,989      (0.18%)     07/25/45        1,339               1,044        (295

ABX.HE.AAA.06-1

  JPM     USD        19,246      (0.18%)     07/25/45        722               366        (356

ABX.HE.AAA.06-1

  JPM     USD        57,738      (0.18%)     07/25/45        1,545               1,096        (449

ABX.HE.AAA.06-1

  GSC     USD        42,616      (0.18%)     07/25/45        3,942               809        (3,133

ABX.HE.AAA.06-1

  BCLY     USD        42,616      (0.18%)     07/25/45        4,909               808        (4,101

ABX.HE.AAA.06-1

  MSC     USD        70,111      (0.18%)     07/25/45        7,800               1,331        (6,469

ABX.HE.AAA.06-1

  GSC     USD        148,470      (0.18%)     07/25/45        13,362               2,817        (10,545

ABX.HE.AAA.06-2

  BOA     USD        1,323,594      (0.11%)     05/25/46        273,331               251,322        (22,009

ABX.HE.AAA.07-1

  MSC     USD        629,331      (0.09%)     08/25/37        151,796               149,137        (2,659

ABX.HE.AAA.07-1

  MSC     USD        760,102      (0.09%)     08/25/37        183,382               180,124        (3,258

ABX.HE.AAA.07-1

  GSC     USD        453,609      (0.09%)     08/25/37        112,658               107,493        (5,165

ABX.HE.AAA.07-1

  JPM     USD        286,060      (0.09%)     08/25/37        73,693               67,789        (5,904

ABX.HE.AAA.07-1

  CSI     USD        1,295,442      (0.09%)     08/25/37        369,938               306,986        (62,952

ABX.HE.PENAAA.06-2

  BOA     USD        6,933      (0.11%)     05/25/46        1,577               843        (734

ABX.HE.PENAAA.06-2

  JPM     USD        321,714      (0.11%)     05/25/46        43,681               39,105        (4,576

ABX.HE.PENAAA.06-2

  JPM     USD        409,076      (0.11%)     05/25/46        79,179               49,724        (29,455

ABX.HE.PENAAA.06-2

  CSI     USD        1,148,186      (0.11%)     05/25/46        345,891               139,564        (206,327

CMBX.NA.A.7

  JPM     USD        755,000      (2.00%)     01/17/47               (15,642     (3,441     12,201   

CMBX.NA.A.7

  JPM     USD        145,000      (2.00%)     01/17/47               (280     (661     (381

CMBX.NA.AA.2

  CSI     USD        1,027,701      (0.15%)     03/15/49        315,521               328,838        13,317   

 

The accompanying notes are an integral part of these financial statements.

 

 

  128  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  
    Counter-
party
              (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Reference Entity

    Notional
Amount (a)
             

CMBX.NA.AA.2

  CSI     USD        688,277      (0.15%)     03/15/49      $ 218,209      $      $ 220,231      $ 2,022   

CMBX.NA.AA.2

  CSI     USD        127,284      (0.15%)     03/15/49        39,297               40,728        1,431   

CMBX.NA.AA.2

  MSC     USD        117,856      (0.15%)     03/15/49        46,622               37,710        (8,912

CMBX.NA.AA.2

  BOA     USD        711,848      (0.15%)     03/15/49        269,838               227,773        (42,065

CMBX.NA.AA.2

  BOA     USD        857,989      (0.15%)     03/15/49        325,235               274,535        (50,700

CMBX.NA.AA.2

  JPM     USD        1,385,982      (0.15%)     03/15/49        521,034               443,480        (77,554

CMBX.NA.AA.7

  CSI     USD        820,000      (1.50%)     01/17/47               (7,488     (2,796     4,692   

CMBX.NA.AA.7

  MSC     USD        355,000      (1.50%)     01/17/47               (4,207     (1,211     2,996   

CMBX.NA.AA.7

  MSC     USD        515,000      (1.50%)     01/17/47               (4,463     (1,756     2,707   

CMBX.NA.AA.7

  CSI     USD        1,025,000      (1.50%)     01/17/47               (248     (3,495     (3,247

CMBX.NA.AA.7

  CSI     USD        625,000      (1.50%)     01/17/47        2,917               (2,131     (5,048

CMBX.NA.AA.7

  CSI     USD        620,000      (1.50%)     01/17/47        3,368               (2,114     (5,482

CMBX.NA.AA.7

  CSI     USD        810,000      (1.50%)     01/17/47        3,201               (2,762     (5,963

CMBX.NA.AJ.1

  JPM     USD        310,000      (0.84%)     10/12/52        6,000               4,695        (1,305

CMBX.NA.AJ.1

  MSC     USD        390,000      (0.84%)     10/12/52        27,300               5,908        (21,392

CMBX.NA.AJ.1

  JPM     USD        735,000      (0.84%)     10/12/52        51,932               11,133        (40,799

CMBX.NA.AJ.2

  CSI     USD        877,630      (1.09%)     03/15/49        71,500               72,903        1,403   

CMBX.NA.AJ.2

  JPM     USD        292,543      (1.09%)     03/15/49        24,595               24,301        (294

CMBX.NA.AJ.2

  DEUT     USD        1,061,089      (1.09%)     03/15/49        94,909               88,143        (6,766

CMBX.NA.AJ.3

  GSC     USD        411,438      (1.47%)     12/13/49        79,807               75,596        (4,211

CMBX.NA.AJ.4

  GSC     USD        562,772      (0.96%)     02/17/51        95,330               102,862        7,532   

CMBX.NA.AJ.4

  GSC     USD        363,561      (0.96%)     02/17/51        61,113               66,451        5,338   

CMBX.NA.AJ.4

  GSC     USD        373,521      (0.96%)     02/17/51        64,424               68,272        3,848   

CMBX.NA.AJ.4

  CSI     USD        493,048      (0.96%)     02/17/51        86,276               90,118        3,842   

CMBX.NA.AJ.4

  MSC     USD        368,541      (0.96%)     02/17/51        63,859               67,361        3,502   

CMBX.NA.AJ.4

  GSC     USD        149,408      (0.96%)     02/17/51        27,645               27,309        (336

CMBX.NA.AJ.4

  CSI     USD        747,043      (0.96%)     02/17/51        138,265               136,543        (1,722

CMBX.NA.AJ.4

  CSI     USD        707,199      (0.96%)     02/17/51        132,609               129,260        (3,349

CMBX.NA.AJ.4

  CSI     USD        263,955      (0.96%)     02/17/51        52,054               48,245        (3,809

CMBX.NA.AJ.4

  MSC     USD        358,581      (0.96%)     02/17/51        71,572               65,540        (6,032

CMBX.NA.AJ.4

  MSC     USD        363,561      (0.96%)     02/17/51        72,561               66,451        (6,110

CMBX.NA.AJ.4

  DEUT     USD        891,471      (0.96%)     02/17/51        171,586               162,941        (8,645

CMBX.NA.AJ.4

  JPM     USD        1,429,343      (0.96%)     02/17/51        281,560               261,252        (20,308

CMBX.NA.AJ.4

  MSC     USD        966,175      (0.96%)     02/17/51        377,797               176,595        (201,202

CMBX.NA.AM.2

  JPM     USD        1,230,000      (0.50%)     03/15/49        8,997               5,517        (3,480

CMBX.NA.AM.2

  CSI     USD        1,545,000      (0.50%)     03/15/49        94,631               6,930        (87,701

CMBX.NA.AM.2

  MSC     USD        2,945,000      (0.50%)     03/15/49        145,354               13,209        (132,145

CMBX.NA.AM.4

  CSI     USD        185,000      (0.50%)     02/17/51        5,218               4,152        (1,066

CMBX.NA.AM.4

  MSC     USD        445,000      (0.50%)     02/17/51        44,837               9,987        (34,850

CMBX.NA.AM.4

  MSC     USD        230,000      (0.50%)     02/17/51        51,546               5,162        (46,384

CMBX.NA.AS.6

  CSI     USD        465,000      (1.00%)     05/11/63        3,824               (228     (4,052

CMBX.NA.AS.6

  CSI     USD        1,700,000      (1.00%)     05/11/63        22,417               (837     (23,254

CMBX.NA.AS.7

  CSI     USD        230,000      (1.00%)     01/17/47        3,693               1,559        (2,134

CMBX.NA.AS.7

  GSC     USD        725,000      (1.00%)     01/17/47        16,845               4,915        (11,930

CMBX.NA.AS.7

  CSI     USD        1,080,000      (1.00%)     01/17/47        25,198               7,322        (17,876
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 6,179,569      $ (32,328   $ 4,856,015      $ (1,291,226
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

                 

CDX.EM.22

  BNP     USD        499,500      1.00%     12/20/19               (57,681     (53,256     4,425   

CMBX.BB.7

  CSI     USD        930,000      5.00%     01/17/47               (14,368     (8,123     6,245   

CMBX.NA.A.2

  JPM     USD        117,541      0.25%     03/15/49               (76,370     (74,829     1,541   

CMBX.NA.A.2

  BOA     USD        429,632      0.25%     03/15/49               (245,101     (273,423     (28,322

CMBX.NA.AAA.6

  DEUT     USD        36,800,000      0.50%     05/11/63               (1,856,214     (493,183     1,363,031   

CMBX.NA.AAA.6

  JPM     USD        4,995,000      0.50%     05/11/63               (164,554     (66,941     97,613   

CMBX.NA.AAA.6

  DEUT     USD        4,265,000      0.50%     05/11/63               (103,958     (57,158     46,800   

CMBX.NA.AAA.6

  GSC     USD        6,665,000      0.50%     05/11/63               (130,855     (89,322     41,533   

CMBX.NA.AAA.6

  CSI     USD        3,830,000      0.50%     05/11/63               (85,848     (51,328     34,520   

CMBX.NA.AAA.6

  CSI     USD        4,060,000      0.50%     05/11/63               (81,454     (54,411     27,043   

 

The accompanying notes are an integral part of these financial statements.

 

 

  129  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  
    Counter-
party
              (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

Reference Entity

    Notional
Amount (a)
             

CMBX.NA.AAA.6

  MSC     USD        2,324,000      0.50%     05/11/63      $      $ (50,762   $ (31,145   $ 19,617   

CMBX.NA.AAA.6

  BOA     USD        825,000      0.50%     05/11/63               (21,559     (11,056     10,503   

CMBX.NA.AAA.6

  UBS     USD        885,000      0.50%     05/11/63               (19,955     (11,860     8,095   

CMBX.NA.AAA.6

  MSC     USD        1,780,000      0.50%     05/11/63               (26,101     (23,107     2,994   

CMBX.NA.BB.6

  CSI     USD        195,000      5.00%     10/17/57               (11,908     (10,950     958   

CMBX.NA.BB.6

  MSC     USD        3,355,000      5.00%     05/11/63               (214,867     32,329        247,196   

CMBX.NA.BB.6

  BOA     USD        1,113,000      5.00%     05/11/63               (10,625     10,726        21,351   

CMBX.NA.BB.6

  CSI     USD        1,795,000      5.00%     05/11/63        12,257               17,297        5,040   

CMBX.NA.BB.7

  GSC     USD        1,135,000      5.00%     01/17/47               (67,370     (9,913     57,457   

CMBX.NA.BB.7

  CSI     USD        490,000      5.00%     01/17/47               (24,224     (4,279     19,945   

CMBX.NA.BB.7

  CSI     USD        800,000      5.00%     01/17/47               (26,877     (6,986     19,891   

CMBX.NA.BB.8

  BOA     USD        535,000      5.00%     10/17/57               (38,666     (30,042     8,624   

CMBX.NA.BB.8

  CSI     USD        175,000      5.00%     10/17/57               (12,750     (9,826     2,924   

CMBX.NA.BB.8

  CSI     USD        225,000      5.00%     10/17/57               (14,240     (12,634     1,606   

CMBX.NA.BB.8

  GSC     USD        225,000      5.00%     10/17/57               (11,886     (12,634     (748

CMBX.NA.BB.8

  GSC     USD        450,000      5.00%     10/17/57               (24,110     (25,331     (1,221

PrimeX.ARM.2

  MSC     USD        116,545      4.58%     12/25/37               (8,553     4,910        13,463   

PrimeX.ARM.2

  MSC     USD        1,067,309      4.58%     12/25/37        35,655               45,105        9,450   

PrimeX.ARM.2

  JPM     USD        323,382      4.58%     12/25/37        9,894               13,625        3,731   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 57,806      $ (3,400,856   $     (1,297,745   $ 2,045,305   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

            $ 6,237,375      $ (3,433,184   $ 3,558,270      $ 754,079   
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Buy protection:

                 

Brazil (Federative Republic of)

  JPM     USD        270,000      (1.00%)/2.21%     12/20/19      $ 12,711      $      $ 13,913      $ 1,202   

Brazil (Federative Republic of)

  GSC     USD        72,500      (1.00%)/2.21%     12/20/19        2,910               3,736        826   

Russia (Federation of)

  GSC     USD        100,000      (1.00%)/3.51%     12/20/19        20,129               10,338        (9,791
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 35,750      $      $ 27,987      $ (7,763
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Sell protection:

                 

Bank of America Corp.

  GSC     USD        7,600,000      1.00%/0.33%     09/20/17      $      $ (528,523   $ 130,370      $ 658,893   

Citigroup, Inc.

  GSC     USD        7,225,000      1.00%/0.41%     09/20/17               (470,447     111,383        581,830   

Goldman Sachs Group, Inc.

  UBS     USD        3,625,000      1.00%/0.45%     09/20/17               (267,776     51,513        319,289   

Morgan Stanley

  BCLY     USD        3,625,000      1.00%/0.45%     09/20/17               (405,954     52,076        458,030   

Penerbangan Malaysia Bhd

  JPM     USD        405,000      1.00%/1.21%     06/20/20               (4,667     (3,793     874   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $      $ (1,677,367   $ 341,549      $ 2,018,916   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 35,750      $ (1,677,367   $ 369,536      $ 2,011,153   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $     6,273,125      $     (5,110,551   $ 3,927,806      $     2,765,232   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

The accompanying notes are an integral part of these financial statements.

 

 

130

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Buy protection:

             

ITRAXX.EUR.23

  EUR     4,432,000        (1.00 %)    06/20/20   $ (93,843   $ (105,312   $ (11,469

ITRAXX.XOV.22

  EUR     10,309,000        (5.00 %)    12/20/19     (839,344     (1,190,660     (351,316
         

 

 

   

 

 

   

 

 

 

Total

          $ (933,187   $     (1,295,972   $     (362,785
         

 

 

   

 

 

   

 

 

 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.HY.24

  USD     49,235,000        5.00   06/20/20   $ 3,774,572      $ 3,783,521      $ 8,949   

CDX.NA.IG.23

  USD     19,445,500        1.00   12/20/19     342,027        340,206        (1,821

CDX.NA.IG.24

  USD     670,000        1.00   06/20/20     12,212        12,604        392   

ITRAXX.XOV.23

  EUR     1,240,000        5.00   06/20/20     137,904        148,836        10,932   
         

 

 

   

 

 

   

 

 

 

Total

          $ 4,266,715      $ 4,285,167      $ 18,452   
         

 

 

   

 

 

   

 

 

 

Total

          $     3,333,528      $ 2,989,195      $ (344,333
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments
received by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   3M KRW CD KSDA    2.05% Fixed      KRW         8,915,000         06/17/25       $       $       $ (181   $ (181

GSC

   3M KRW CD KSDA    2.05% Fixed      KRW         49,610,000         06/17/25                             (1,006     (1,006

DEUT

   3.87% Fixed    3M NZD NZDBB      NZD         45,000         09/16/25                         15        15   

JPM

   3.90% Fixed    3M NZD NZDBB      NZD         35,000         09/16/25                         (43     (43

DEUT

   2.28% Fixed    6M PLN WIBOR      PLN         70,000         06/17/25                         206        206   

GSC

   2.29% Fixed    6M PLN WIBOR      PLN         70,000         06/17/25                         189        189   

DEUT

   2.30% Fixed    6M PLN WIBOR      PLN         60,000         06/17/25                         154        154   

DEUT

   1.46% Fixed    CPURNSA      USD         10,225,000         03/02/17                         2,196        2,196   

DEUT

   1.48% Fixed    CPURNSA      USD         4,755,000         03/02/17                         (664     (664

BCLY

   1.53% Fixed    CPURNSA      USD         5,024,000         03/03/17                         (4,828     (4,828

DEUT

   1.98% Fixed    CPURNSA      USD         7,560,000         04/02/25                         96,997        96,997   
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $     —       $     —       $ 93,035      $     93,035   
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

Centrally Cleared Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments
received by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
    Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

GSC

   0.87% Fixed    3M JPY LIBOR      JPY         11,810,000         09/16/25       $       $      $ 173       $ 173   

GSC

   2.34% Fixed    3M USD LIBOR      USD         585,000         06/15/26                 (2,370     3,297         5,667   

GSC

   3M USD LIBOR    1.62% Fixed      USD         2,755,000         06/15/18         4,152                3,673         (479
                 

 

 

    

 

 

   

 

 

    

 

 

 

Total

                  $     4,152       $     (2,370   $     7,143       $     5,361   
                 

 

 

    

 

 

   

 

 

    

 

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount
    Payments
received (paid)
by the Fund
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM Corp EMBI

  JPM     USD        12,625,000      3M LIBOR - 1.25%     06/24/15      $     —      $     —      $     (530,069   $     (530,069
           

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

131

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/29/15       GSC    $ 877,106       $ 892,751       $ 15,645   

AUD

   Buy      05/29/15       BMO      82,712         82,955         243   

AUD

   Buy      05/29/15       GSC      18,903         18,961         58   

AUD

   Buy      05/29/15       JPM      18,947         18,961         14   

AUD

   Buy      05/29/15       CBA      19,963         19,751         (212

AUD

   Sell      05/29/15       BOA      41,554         41,082         472   

AUD

   Sell      05/29/15       BOA      15,811         15,801         10   

AUD

   Sell      05/29/15       GSC      175,421         178,550         (3,129

BRL

   Buy      05/05/15       GSC      223,811         221,984         (1,827

BRL

   Buy      05/05/15       UBS      623,661         598,031         (25,630

BRL

   Buy      06/02/15       GSC      1,813,946         1,851,988         38,042   

BRL

   Sell      05/05/15       UBS      223,811         221,984         1,827   

BRL

   Sell      05/05/15       GSC      213,546         221,984         (8,438

BRL

   Sell      05/05/15       UBS      352,874         376,048         (23,174

BRL

   Sell      06/02/15       UBS      617,770         592,177         25,593   

CAD

   Buy      05/29/15       TDB      253,650         255,180         1,530   

CAD

   Buy      05/29/15       BMO      252,868         254,351         1,483   

CAD

   Buy      05/29/15       BMO      33,012         33,140         128   

CAD

   Buy      06/17/15       RBC      839,119         832,437         (6,682

CAD

   Sell      06/17/15       TDB      796,776         832,437         (35,661

CHF

   Buy      05/29/15       JPM      18,701         19,314         613   

CHF

   Buy      05/29/15       JPM      9,315         9,657         342   

CHF

   Buy      05/29/15       JPM      9,321         9,657         336   

CHF

   Sell      05/29/15       JPM      25,969         26,824         (855

CHF

   Sell      05/29/15       UBS      125,722         129,830         (4,108

CNH

   Sell      05/29/15       HSBC      19,484         19,437         47   

COP

   Buy      06/17/15       SCB      268,712         294,682         25,970   

COP

   Buy      06/17/15       SSG      204,025         213,937         9,912   

COP

   Sell      06/17/15       BOA      136,452         150,344         (13,892

COP

   Sell      06/17/15       JPM      149,679         166,882         (17,203

COP

   Sell      06/17/15       JPM      193,681         213,938         (20,257

COP

   Sell      06/17/15       UBS      258,125         284,151         (26,026

COP

   Sell      06/17/15       SCB      3,914,094         4,343,086         (428,992

CZK

   Sell      06/17/15       BNP      597,126         605,839         (8,713

EUR

   Buy      05/04/15       DEUT      20,893         21,108         215   

EUR

   Buy      05/29/15       DEUT      8,595,502         8,887,428         291,926   

EUR

   Buy      05/29/15       JPM      26,886         28,083         1,197   

EUR

   Buy      05/29/15       CBK      27,858         28,082         224   

EUR

   Buy      05/29/15       SSG      33,628         33,698         70   

EUR

   Buy      06/17/15       RBS      7,628,316         8,086,265         457,949   

EUR

   Buy      06/17/15       NAB      7,652,122         8,087,389         435,267   

EUR

   Buy      06/17/15       BOA      1,602,710         1,634,780         32,070   

EUR

   Buy      06/17/15       BNP      1,251,695         1,280,859         29,164   

EUR

   Buy      06/17/15       BNP      598,801         606,723         7,922   

EUR

   Buy      06/17/15       DEUT      193,492         195,500         2,008   

EUR

   Sell      05/04/15       DEUT      193,345         195,337         (1,992

EUR

   Sell      05/29/15       JPM      9,661         10,110         (449

EUR

   Sell      05/29/15       JPM      9,657         10,110         (453

EUR

   Sell      05/29/15       DEUT      60,161         60,657         (496

EUR

   Sell      05/29/15       BMO      246,604         247,123         (519

EUR

   Sell      05/29/15       JPM      19,331         20,219         (888

EUR

   Sell      05/29/15       JPM      54,499         56,164         (1,665

EUR

   Sell      05/29/15       DEUT      12,779,182         13,213,197         (434,015

EUR

   Sell      06/17/15       UBS      145,662         150,557         (4,895

EUR

   Sell      06/17/15       SSG      154,309         162,916         (8,607

EUR

   Sell      06/17/15       BCLY      407,288         421,336         (14,048

EUR

   Sell      06/17/15       SSG      438,061         452,795         (14,734

EUR

   Sell      06/17/15       RBC      1,011,175         1,065,136         (53,961

 

The accompanying notes are an integral part of these financial statements.

 

 

  132  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Sell      06/17/15       NAB    $ 1,354,377       $ 1,431,416       $ (77,039

EUR

   Sell      06/17/15       RBS      1,349,291         1,430,293         (81,002

EUR

   Sell      06/17/15       MSC      3,741,969         3,859,431         (117,462

EUR

   Sell      06/17/15       BMO      3,736,126         3,865,049         (128,923

EUR

   Sell      06/17/15       BCLY      2,737,647         2,915,639         (177,992

EUR

   Sell      09/18/15       SSG      847,210         736,976         110,234   

EUR

   Sell      03/15/17       BOA      1,080,446         1,152,148         (71,702

EUR

   Sell      03/15/17       BOA      5,927,233         6,086,325         (159,092

GBP

   Buy      05/29/15       GSC      1,978,937         2,021,161         42,224   

GBP

   Buy      05/29/15       JPM      21,612         21,485         (127

GBP

   Buy      05/29/15       JPM      23,171         23,020         (151

GBP

   Buy      05/29/15       DEUT      60,261         59,852         (409

GBP

   Buy      05/29/15       MSC      95,991         95,150         (841

GBP

   Buy      06/17/15       RBS      2,018,130         2,056,201         38,071   

GBP

   Buy      06/17/15       BCLY      2,018,623         2,056,201         37,578   

GBP

   Sell      05/07/15       MSC      96,613         95,773         840   

GBP

   Sell      05/29/15       JPM      40,078         39,901         177   

GBP

   Sell      05/29/15       MSC      18,589         18,416         173   

GBP

   Sell      05/29/15       BOA      20,099         19,951         148   

GBP

   Sell      05/29/15       JPM      39,941         39,901         40   

GBP

   Sell      05/29/15       CBK      30,705         30,694         11   

GBP

   Sell      05/29/15       CBK      29,939         30,693         (754

GBP

   Sell      05/29/15       GSC      4,189,277         4,278,661         (89,384

GBP

   Sell      06/17/15       BOA      594,344         592,309         2,035   

GBP

   Sell      06/17/15       BCLY      192,824         196,414         (3,590

GBP

   Sell      06/17/15       RBS      191,271         194,879         (3,608

HKD

   Sell      03/03/16       GSC      561,631         561,945         (314

IDR

   Buy      06/17/15       DEUT      420,884         421,673         789   

IDR

   Sell      06/17/15       UBS      604,089         620,444         (16,355

INR

   Buy      05/29/15       HSBC      33,946         33,620         (326

INR

   Buy      06/17/15       BCLY      792,621         776,689         (15,932

JPY

   Buy      05/29/15       MSC      9,136,843         9,154,304         17,461   

JPY

   Buy      05/29/15       BMO      40,952         41,050         98   

JPY

   Buy      05/29/15       JPM      78,530         78,413         (117

JPY

   Buy      06/17/15       JPM      9,387,337         9,524,373         137,036   

JPY

   Buy      06/17/15       DEUT      9,388,268         9,524,374         136,106   

JPY

   Sell      05/29/15       CBA      19,777         19,687         90   

JPY

   Sell      05/29/15       JPM      78,503         78,413         90   

JPY

   Sell      06/17/15       BMO      3,734,467         3,723,103         11,364   

JPY

   Sell      06/17/15       MSC      3,730,522         3,721,427         9,095   

KRW

   Sell      05/29/15       SCB      19,576         19,660         (84

KRW

   Sell      05/29/15       HSBC      40,676         40,828         (152

KZT

   Sell      05/18/15       JPM      434,005         460,095         (26,090

MXN

   Buy      05/04/15       JPM      687,015         683,365         (3,650

MXN

   Buy      05/29/15       RBC      206,883         208,200         1,317   

MXN

   Buy      06/17/15       JPM      549,194         542,059         (7,135

MXN

   Buy      06/17/15       JPM      549,758         542,058         (7,700

MXN

   Buy      06/17/15       GSC      1,344,082         1,308,215         (35,867

MXN

   Sell      06/17/15       GSC      574,267         558,622         15,645   

MXN

   Sell      06/17/15       BOA      601,937         592,205         9,732   

MXN

   Sell      06/17/15       RBC      1,422,722         1,442,220         (19,498

MXN

   Sell      06/17/15       MSC      1,422,386         1,442,220         (19,834

MYR

   Buy      06/17/15       DEUT      316,216         327,112         10,896   

MYR

   Sell      05/29/15       UBS      284,245         287,850         (3,605

NOK

   Buy      05/29/15       JPM      35,575         37,154         1,579   

NZD

   Buy      05/29/15       NAB      21,196         21,309         113   

PLN

   Buy      05/29/15       BNP      88,103         91,578         3,475   

PLN

   Sell      05/29/15       BNP      10,679         11,100         (421

 

The accompanying notes are an integral part of these financial statements.

 

 

  133  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

RON

   Buy      06/17/15       BNP    $ 1,115,977       $ 1,191,803       $ 75,826   

RON

   Sell      06/17/15       CBK      1,115,780         1,191,803         (76,023)   

RSD

   Buy      09/18/15       SSG      786,053         716,882         (69,171)   

RUB

   Buy      05/15/15       CSFB      586,586         577,478         (9,108)   

RUB

   Sell      05/15/15       JPM      574,309         577,478         (3,169)   

SEK

   Buy      05/29/15       SSG      264,219         274,599         10,380   

SEK

   Buy      05/29/15       BOA      20,428         20,411         (17)   

SEK

   Buy      05/29/15       BOA      14,441         14,408         (33)   

SEK

   Buy      05/29/15       MSC      20,504         20,412         (92)   

SEK

   Sell      05/29/15       JPM      22,746         22,573         173   

SEK

   Sell      05/29/15       JPM      20,277         20,172         105   

SEK

   Sell      05/29/15       SSG      123,733         128,594         (4,861)   

SGD

   Sell      05/29/15       UBS      178,833         182,021         (3,188)   

TRY

   Sell      06/17/15       JPM      527,536         520,072         7,464   

TRY

   Sell      06/17/15       JPM      694,620         690,479         4,141   

TRY

   Sell      06/17/15       JPM      477,467         486,876         (9,409)   

UYU

   Sell      06/17/15       HSBC      933,482         937,663         (4,181)   

ZAR

   Buy      05/29/15       JPM      85,110         87,412         2,302   

ZAR

   Buy      06/17/15       DEUT      773,071         761,373         (11,698)   

ZAR

   Sell      06/17/15       SSG      634,803         641,704         (6,901)   

ZAR

   Sell      06/17/15       BCLY      741,991         761,373         (19,382)   
                 

 

 

 

Total

                  $     (380,825
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CME

   Chicago Mercantile Exchange

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CNH

   Chinese Renminbi

CNY

   Chinese Yuan

COP

   Colombian Peso

CRC

   Costa Rican Colon

CZK

   Czech Koruna

DKK

   Danish Krone

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   South Korea Won

KZT

   Kazakhstani Tenge

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NOK

   Norwegian Krone

NZD

   New Zealand Dollar

PLN

   Polish Zloty

RON

   New Romanian Leu

RSD

   Serbian Dinar

RUB

   Russian Ruble

SEK

   Swedish Krona

SGD

   Singapore Dollar

TRY

   Turkish Lira

UYU

   Uruguayan Peso

ZAR

   South African Rand
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  134  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments) -
(continued)
Index Abbreviations:

ABX.HE

   Markit Asset Backed Security Home Equity

ABX.HE.PEN

   Markit Asset Backed Security Home Equity Penultimate

CDX.EM

   Credit Derivatives Emerging Markets

CDX.NA.HY

   Credit Derivatives North American High Yield

CDX.NA.IG

   Credit Derivatives North American Investment Grade

CMBX.NA

   Markit Commercial Mortgage Backed North American

CME

   Chicago Mercantile Index

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted

EMBI

   Emerging Markets Bond Index

MSCI

   Morgan Stanley Capital International

ITRAXX.EUR

   Markit iTraxx - Europe

ITRAXX.XOV

   Markit iTraxx Index - Europe Crossover

PrimeX.ARM

   Markit PrimeX Adjustable Rate Mortgage Backed Security
Other Abbreviations:

CD

   Certificate of Deposit

CLO

   Collateralized Loan Obligation

CME

   Chicago Mercantile Index

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

KSDA

   Korea Securities Dealers Association

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

NZDBB

   New Zealand Bank Bill

OJSC

   Open Joint Stock Company

OTC

   Over-the-Counter

TBA

   To Be Announced

WIBOR

   Warsaw Interbank Offered Rate
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  135  

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 63,298,003      $      $ 63,298,003      $   

Corporate Bonds

     115,257,856               115,257,856          

Foreign Government Obligations

     89,448,156               89,448,156          

Municipal Bonds

     4,128,957               4,128,957          

Senior Floating Rate Interests

     97,201,939               97,201,939          

U.S. Government Agencies

     104,931,001               104,931,001          

U.S. Government Securities

     4,083,316               4,083,316          

Common Stocks

     223,580                      223,580   

Preferred Stocks

     526,894        526,894                 

Short-Term Investments

     23,175,166        23,175,166                 

Purchased Options

     151,703               151,703          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     502,426,571      $     23,702,060      $     478,500,931      $     223,580   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 2,067,085      $      $ 2,067,085      $   

Futures Contracts (2)

     501,461        501,461                 

Swaps - Credit Default (2)

     4,181,676               4,181,676          

Swaps - Interest Rate (2)

     105,597               105,597          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 6,855,819      $ 501,461      $ 6,354,358      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (2,447,910   $      $ (2,447,910   $   

Futures Contracts (2)

     (498,085     (498,085              

Swaps - Credit Default (2)

     (1,760,777            (1,760,777       

Swaps - Interest Rate (2)

     (7,201            (7,201       

Swaps - Total Return (2)

     (530,069            (530,069       

TBA Sale Commitments

     (2,753,843            (2,753,843       

Written Options

     (531,938            (531,938       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (8,529,823   $ (498,085   $ (8,031,738   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

136

 


The Hartford Strategic Income Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Common Stocks     Corporate Bonds     Total  

Beginning balance

   $ 17,125,036        408,601        930,000      $ 18,463,637   

Purchases

     1,989,158                      1,989,158   

Sales

         (5,685,682                   (5,685,682

Accrued discounts/(premiums)

     362,760                      362,760   

Total realized gain/(loss)

     777,781                      777,781   

Net change in unrealized appreciation/depreciation

     (760,152         (185,021         (930,000         (1,875,173

Transfers into Level 3 (1)

                            

Transfers out of Level 3 (1)

     (13,808,901                   (13,808,901
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $      $ 223,580      $      $ 223,580   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $(185,021).

 

(1) Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  137  

 


The Hartford Total Return Bond Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     72.9

Aa / AA

     7.4   

A

     11.4   

Baa / BBB

     17.3   

Ba / BB

     7.6   

B

     2.2   

Caa / CCC or Lower

     4.1   

Not Rated

     2.9   

Non-Debt Securities and Other Short-Term Instruments

     13.0   

Other Assets & Liabilities

     (38.8
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Preferred Stocks

     0.1
  

 

 

 

Total

     0.1
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     30.6

Corporate Bonds

     32.6   

Foreign Government Obligations

     2.7   

Municipal Bonds

     1.0   

Senior Floating Rate Interests

     5.1   

U.S. Government Agencies

     44.9   

U.S. Government Securities

     8.9   
  

 

 

 

Total

     125.8
  

 

 

 

Short-Term Investments

     12.9

Purchased Options

     0.0   

Other Assets & Liabilities

     (38.8
  

 

 

 

Total

     100.0
  

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

138

 


The Hartford Total Return Bond Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6%  
            Asset-Backed - Automobile - 2.1%  
   

AmeriCredit Automobile Receivables Trust

 
  $        2,030,000     

2.72%, 09/09/2019

  $ 2,079,029   
   

CPS Automotive Trust

 
    749,220     

1.54%, 07/16/2018 (1)

    749,051   
    533,019     

1.82%, 12/16/2019 (1)

    534,527   
    90,796     

5.01%, 06/17/2019 (1)

    92,619   
   

Credit Acceptance Automotive Loan Trust

 
    2,380,000     

1.21%, 10/15/2020 (1)

    2,381,116   
    1,595,000     

1.50%, 04/15/2021 (1)

    1,599,472   
    2,075,000     

1.55%, 10/15/2021 (1)

    2,072,776   
    4,100,000     

1.88%, 03/15/2022 (1)

    4,112,124   
    805,000     

2.21%, 09/15/2020 (1)

    808,850   
   

First Investors Automotive Owner Trust

 
    1,175,000     

1.49%, 01/15/2020 (1)

    1,176,141   
    3,440,000     

1.67%, 11/16/2020 (1)

    3,438,163   
    605,000     

1.81%, 10/15/2018 (1)

    607,340   
    930,000     

2.39%, 11/16/2020 (1)

    931,949   
   

Flagship Credit Auto Trust

 
    771,408     

1.21%, 04/15/2019 (1)

    770,024   
   

GM Financial Automobile Leasing Trust

 
    650,000     

1.96%, 03/20/2018 (1)

    652,479   
   

Prestige Auto Receivables Trust

 
    1,685,000     

2.49%, 04/16/2018 (1)

    1,703,222   
   

Santander Drive Automotive Receivables Trust

 
    2,610,000     

1.55%, 10/15/2018

    2,620,980   
    980,000     

1.82%, 05/15/2019

    981,110   
    4,500,000     

1.83%, 01/15/2020

    4,493,016   
    715,000     

2.25%, 06/17/2019

    723,722   
    2,415,000     

2.36%, 04/15/2020

    2,435,003   
   

Westlake Automobile Receivables Trust

 
    4,275,000     

1.58%, 04/15/2020 (1)

    4,285,743   
     

 

 

 
        39,248,456   
     

 

 

 
            Asset-Backed - Finance & Insurance - 12.5%  
   

American Money Management Corp

 
    4,200,000     

1.73%, 07/27/2026 (1)(2)

    4,188,660   
   

Apidos CDO

 
    1,510,000     

2.13%, 07/15/2023 (1)(2)

    1,508,188   
   

Apidos CLO

 
    2,935,000     

1.73%, 01/19/2025 (1)(2)

    2,925,315   
    1,445,000     

1.77%, 01/16/2027 (1)(2)

    1,447,023   
    4,775,000     

1.77%, 04/17/2026 (1)(2)

    4,778,820   
   

Ares CLO Ltd.

 
    3,692,633     

1.13%, 04/20/2023 (1)(2)

    3,678,231   
    3,580,000     

1.51%, 07/28/2025 (1)(2)

    3,554,582   
    4,460,000     

1.80%, 04/17/2026 (1)(2)

    4,467,136   
   

Atlas Senior Loan Fund Ltd.

 
    3,775,000     

1.82%, 10/15/2026 (1)(2)

    3,779,908   
    1,905,000     

1.83%, 07/16/2026 (1)(2)

    1,908,239   
   

Atrium CDO

 
    3,420,000     

2.43%, 10/23/2025 (1)(2)

    3,455,568   
   

Atrium CDO Corp.

 
    1,740,000     

2.01%, 11/16/2022 (1)(2)

    1,723,992   
   

Avalon IV Capital Ltd.

 
    1,755,000     

2.12%, 04/17/2023 (1)(2)

    1,755,878   
   

Avery Point CLO Ltd.

 
    4,375,000     

1.80%, 04/25/2026 (1)(2)

    4,376,312   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Asset-Backed - Finance & Insurance - 12.5% -
(continued)
 
   

Babson CLO Ltd.

 
  $        1,030,000     

1.77%, 07/20/2025 (1)(2)

  $ 1,031,236   
   

Cal Funding II Ltd.

 
    693,750     

3.47%, 10/25/2027 (1)

    697,489   
   

Carlyle Global Market Strategies

 
    4,630,000     

1.74%, 04/27/2027 (1)(2)(3)

    4,627,685   
   

Cent CLO 20 Ltd.

 
    3,995,000     

1.76%, 01/25/2026 (1)(2)

    3,999,395   
   

Cent CLO 23 Ltd.

 
    1,810,000     

2.33%, 04/17/2026 (1)(2)

    1,802,036   
   

Cent CLO Ltd.

 
    4,475,000     

1.77%, 04/17/2026 (1)(2)

    4,472,762   
    2,865,000     

1.77%, 07/27/2026 (1)(2)

    2,867,292   
   

CIFC Funding Ltd.

 
    4,175,000     

1.74%, 05/24/2026 (1)(2)

    4,169,155   
    4,745,000     

1.78%, 04/18/2025 (1)(2)

    4,742,627   
    3,940,000     

2.36%, 08/14/2024 (1)(2)

    3,971,126   
   

Consumer Credit Origination Loan Trust

 
    1,254,129     

2.82%, 03/15/2021 (1)

    1,261,205   
   

Dryden Senior Loan Fund

 
    3,240,000     

1.56%, 11/15/2023

    3,240,000   
    4,695,000     

1.63%, 04/18/2026 (1)(2)

    4,672,933   
    3,970,000     

1.70%, 07/15/2027

    3,968,015   
    4,800,000     

1.76%, 07/15/2026 (1)(2)

    4,803,840   
   

First Franklin Mortgage Loan Trust

 
    2,250,478     

0.42%, 04/25/2036 (2)

    1,453,717   
   

Flatiron CLO Ltd.

 
    1,015,000     

2.17%, 07/17/2026 (1)(2)

    1,007,895   
   

Ford Credit Floorplan Master Owner Trust A

 
    695,000     

1.40%, 02/15/2019

    697,266   
   

Gramercy Park CLO Ltd.

 
    4,250,000     

1.57%, 07/17/2023 (1)(2)

    4,266,150   
   

ING Investment Management CLO Ltd.

 
    2,300,000     

1.47%, 03/14/2022 (1)(2)

    2,300,000   
    4,690,000     

1.78%, 04/18/2026 (1)(2)

    4,683,903   
    1,565,000     

2.09%, 03/14/2022 (1)(2)

    1,565,783   
   

LCM Ltd.

 
    615,000     

2.17%, 04/15/2022 (1)(2)

    615,369   
   

Limerock CLO

 
    4,765,000     

1.78%, 04/18/2026 (1)(2)

    4,764,523   
   

Madison Park Funding Ltd.

 
    2,800,000     

1.73%, 01/19/2025 (1)(2)

    2,796,360   
    4,525,000     

1.78%, 07/20/2026 (1)(2)

    4,522,737   
    415,000     

2.48%, 04/22/2022 (1)(2)

    417,905   
    3,370,000     

2.61%, 01/27/2026 (1)(2)

    3,415,495   
   

Magnetite CLO Ltd.

 
    3,890,000     

1.70%, 07/25/2026 (1)(2)

    3,882,998   
    2,895,000     

1.75%, 04/15/2026 (1)(2)

    2,897,316   
    3,170,000     

1.82%, 04/15/2027 (1)(2)

    3,176,340   
    3,115,000     

2.23%, 07/25/2026 (1)(2)

    3,102,229   
   

Neuberger Berman CLO Ltd.

 
    3,795,000     

1.72%, 08/04/2025 (1)(2)

    3,788,169   
    3,510,000     

1.75%, 04/15/2026 (1)(2)

    3,509,649   
   

Oaktree EIF II Ltd.

 
    4,495,000     

1.91%, 02/15/2026 (1)(2)

    4,503,091   
   

OCP CLO Ltd.

 
    4,015,000     

1.80%, 04/17/2027 (1)(2)

    4,008,977   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  139  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Asset-Backed - Finance & Insurance - 12.5% -
(continued)
 
   

Octagon Investment Partners Ltd.

 
  $        2,385,000     

1.39%, 07/17/2025 (1)(2)

  $ 2,349,464   
   

OHA Credit Partners Ltd.

 
    1,395,000     

1.75%, 07/20/2026 (1)(2)

    1,395,558   
   

OHA Loan Funding Ltd.

 
    5,360,000     

1.77%, 02/15/2027 (1)(2)

    5,370,184   
   

OZLM Funding Ltd.

 
    4,470,000     

1.73%, 04/30/2027

    4,457,037   
    4,595,000     

1.82%, 04/17/2026 (1)(2)

    4,596,838   
   

Race Point IX CLO Ltd.

 
    5,355,000     

1.77%, 04/15/2027 (1)(2)

    5,360,355   
   

SBA Tower Trust

 
    2,710,000     

2.90%, 10/15/2044 (1)

    2,735,146   
   

Seneca Park CLO Ltd.

 
    3,320,000     

1.76%, 07/17/2026 (1)(2)

    3,335,936   
   

Shackleton CLO Ltd.

 
    3,430,000     

1.75%, 07/17/2026 (1)(2)

    3,417,652   
   

Sound Point CLO Ltd.

 
    3,768,000     

1.65%, 01/21/2026 (1)(2)

    3,746,146   
    4,385,000     

1.79%, 04/15/2027 (1)(2)

    4,371,845   
   

SpringCastle America Funding LLC

 
    3,523,557     

2.70%, 05/25/2023 (1)

    3,541,375   
   

Springleaf Funding Trust

 
    3,405,000     

2.41%, 12/15/2022 (1)

    3,410,308   
   

Symphony CLO L.P.

 
    4,090,000     

2.00%, 01/09/2023 (1)(2)

    4,089,591   
   

Symphony CLO Ltd.

 
    4,675,000     

1.54%, 07/23/2023 (1)(2)

    4,672,662   
    3,950,000     

1.75%, 07/14/2026 (1)(2)

    3,965,405   
   

Thacher Park CLO Ltd.

 
    2,740,000     

1.75%, 10/20/2026 (1)(2)

    2,741,096   
   

Tremen Park Ltd.

 
    4,500,000     

1.76%, 04/20/2027 (1)(2)

    4,497,750   
   

Venture CLO Ltd.

 
    4,720,000     

1.58%, 11/14/2022 (1)(2)(3)

    4,717,640   
   

Voya CLO Ltd.

 
    1,500,000     

1.73%, 07/17/2026 (1)(2)

    1,499,250   
    4,220,000     

1.76%, 04/18/2027 (1)(2)

    4,224,220   
    1,505,000     

2.38%, 04/18/2027 (1)(2)

    1,512,224   
     

 

 

 
        235,258,202   
     

 

 

 
            Asset-Backed - Home Equity - 0.7%  
   

GSAA Home Equity Trust

 
    7,212,735     

0.26%, 02/25/2037 (2)

    3,883,726   
    1,326,111     

0.27%, 12/25/2036 (2)

    645,574   
    2,054,741     

0.27%, 03/25/2037 (2)

    1,111,847   
    2,901,489     

0.36%, 11/25/2036 (2)

    1,574,551   
    664,001     

0.48%, 03/25/2036 (2)

    474,953   
    1,859,930     

5.99%, 06/25/2036 (2)

    1,077,867   
   

Morgan Stanley ABS Capital I

 
    342,271     

0.33%, 06/25/2036 (2)

    312,373   
   

Morgan Stanley Mortgage Loan Trust

 
    1,650,492     

0.35%, 11/25/2036 (2)

    798,936   
   

Renaissance Home Equity Loan Trust

 
    798,292     

5.91%, 04/25/2037

    455,087   
   

Soundview Home Loan Trust

 
    3,500,000     

0.36%, 07/25/2037 (2)

    2,187,790   
    830,000     

0.42%, 07/25/2036 (2)

    521,271   
    1,485,000     

0.43%, 11/25/2036 (2)

    1,023,449   
     

 

 

 
        14,067,424   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Collateralized-Mortgage Obligations - 0.0%  
   

National Credit Union Administration

 
  $        316,158     

1.84%, 10/07/2020 (2)

  $ 317,538   
     

 

 

 
            Commercial Mortgage-Backed Securities - 11.4%  
   

Banc of America Commercial Mortgage Trust

 
    2,322,608     

5.49%, 02/10/2051

    2,468,691   
    249,125     

5.94%, 02/10/2051 (2)

    269,288   
   

Banc of America Commercial Mortgage, Inc.

 
    1,236,084     

5.33%, 09/10/2047 (2)

    1,245,528   
   

Bear Stearns Commercial Mortgage Securities, Inc.

 
    758,725     

5.29%, 10/12/2042 (2)

    763,793   
    510,000     

5.29%, 10/12/2042

    510,596   
    1,284,450     

5.33%, 02/11/2044

    1,361,754   
    3,352,648     

5.41%, 12/11/2040 (2)

    3,393,752   
    478,551     

5.47%, 01/12/2045 (2)

    509,154   
    1,045,007     

5.54%, 10/12/2041

    1,095,349   
    3,690,907     

5.69%, 06/11/2050 (2)

    3,976,938   
    346,543     

5.76%, 04/12/2038 (2)

    359,423   
    3,105,000     

5.90%, 06/11/2040 (2)

    3,345,072   
   

Citigroup Commercial Mortgage Trust

 
    16,405,000     

1.18%, 04/10/2048 (2)(4)

    1,361,156   
    15,243,419     

1.30%, 07/10/2047 (2)(4)

    1,167,051   
    2,100,000     

4.02%, 03/10/2047

    2,299,704   
    415,000     

4.56%, 03/10/2047 (1)(2)

    339,627   
    305,000     

5.06%, 03/10/2047 (1)(2)

    300,879   
    1,195,000     

5.90%, 12/10/2049 (2)

    1,287,940   
    1,125,624     

5.96%, 03/15/2049 (2)

    1,160,079   
    612,181     

6.35%, 12/10/2049 (2)

    667,226   
   

Citigroup/Deutsche Bank Commercial Mortgage Trust

 
    5,185,000     

5.32%, 12/11/2049

    5,443,592   
    2,257,895     

5.48%, 01/15/2046 (2)

    2,292,806   
   

Cobalt CMBS Commercial Mortgage Trust

 
    1,588,885     

5.22%, 08/15/2048

    1,662,251   
    575,000     

5.25%, 08/15/2048

    592,163   
   

Commercial Mortgage Loan Trust

 
    6,009,585     

6.24%, 12/10/2049 (2)

    6,397,095   
   

Commercial Mortgage Pass-Through Certificates

 
    8,398,077     

2.42%, 07/10/2046 (1)(2)(4)

    369,969   
    1,160,158     

2.85%, 10/15/2045

    1,184,758   
    2,255,000     

3.96%, 03/10/2047

    2,453,420   
    1,425,000     

4.02%, 07/10/2045

    1,558,008   
    2,350,000     

4.05%, 04/10/2047

    2,570,176   
    735,000     

4.75%, 10/15/2045 (1)(2)

    581,113   
    1,321,370     

5.94%, 06/10/2046 (2)

    1,363,737   
   

Commercial Mortgage Trust

 
    3,050,000     

3.42%, 03/10/2031 (1)

    3,180,570   
    460,000     

5.44%, 03/10/2039

    484,290   
    4,645,000     

5.74%, 12/10/2049

    4,993,152   
    957,167     

6.01%, 07/10/2038 (2)

    988,995   
   

Community or Commercial Mortgage Trust

 
    1,630,000     

4.01%, 04/10/2047

    1,780,597   
    2,060,000     

4.38%, 07/10/2045 (2)

    2,301,776   
    630,000     

4.73%, 10/15/2045 (1)(2)

    522,238   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  140  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Commercial Mortgage-Backed Securities - 11.4% -
(continued)
 
   

Credit Suisse Commercial Mortgage Trust

 
  $        1,948,002     

5.89%, 06/15/2039 (2)

  $ 2,082,991   
    1,120,414     

6.17%, 02/15/2041 (2)

    1,224,020   
   

CS First Boston Mortgage Securities Corp.

 
    1,375,000     

4.77%, 07/15/2037

    1,374,270   
    2,588,041     

4.88%, 04/15/2037

    2,590,570   
   

CSAIL Commercial Mortgage Trust

 
    1,530,000     

1.12%, 04/15/2050 (2)(4)

    106,079   
   

DBUBS Mortgage Trust

 
    11,054,146     

1.54%, 11/10/2046 (1)(2)(4)

    227,174   
   

Four Times Square Trust

 
    1,710,000     

5.40%, 12/13/2028 (1)

    1,952,085   
   

FREMF Mortgage Trust

 
    2,495,000     

3.08%, 10/25/2047 (1)(2)

    2,525,130   
    2,710,000     

5.41%, 09/25/2043 (1)(2)

    3,039,812   
   

GE Business Loan Trust

 
    826,189     

1.18%, 05/15/2034 (1)(2)

    685,337   
   

GE Capital Commercial Mortgage Corp.

 
    950,244     

5.49%, 11/10/2045 (2)

    958,977   
   

GE Commercial Mortgage Corp. Series

 
    605,000     

5.61%, 12/10/2049 (2)

    633,842   
   

GMAC Commercial Mortgage Securities, Inc.

 
    1,747,920     

5.24%, 11/10/2045 (2)

    1,761,917   
   

GS Mortgage Securities Trust

 
    27,369,966     

0.35%, 07/10/2046 (2)(4)

    291,627   
    5,194,785     

1.83%, 08/10/2044 (1)(2)(4)

    280,238   
    2,010,000     

2.95%, 11/05/2034 (1)

    2,043,923   
    635,000     

3.58%, 06/10/2047

    471,615   
    695,000     

3.67%, 04/10/2047 (1)

    496,056   
    1,920,000     

3.68%, 04/10/2047

    2,040,432   
    3,305,000     

3.86%, 06/10/2047

    3,572,008   
    2,090,000     

4.00%, 04/10/2047

    2,283,496   
    1,310,000     

5.03%, 04/10/2047 (1)(2)

    1,274,733   
   

Hilton USA Trust

 
    3,260,000     

2.66%, 11/05/2030

    3,255,237   
    502,587     

2.92%, 11/05/2030 (1)(2)

    502,587   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    2,740,000     

4.17%, 12/15/2046

    3,019,883   
    730,000     

4.57%, 12/15/2047 (1)(2)

    671,318   
    2,373,899     

5.41%, 12/15/2044 (2)

    2,392,667   
    1,023,717     

6.06%, 04/15/2045 (2)

    1,054,379   
    931,826     

6.07%, 02/12/2051

    1,013,754   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    3,557,881     

1.68%, 02/12/2051 (2)

    3,500,613   
    810,775     

2.75%, 10/15/2045 (1)(2)

    650,656   
    1,435,000     

2.83%, 10/15/2045

    1,463,393   
    1,305,000     

3.91%, 05/05/2030 (1)

    1,383,087   
    625,001     

4.82%, 10/15/2045 (1)(2)

    633,134   
    5,005,609     

5.34%, 05/15/2047

    5,227,672   
    2,917,039     

5.42%, 01/12/2043 (2)

    2,932,438   
    1,944,579     

5.72%, 02/15/2051

    2,063,967   
    4,192,786     

5.89%, 02/12/2049 (2)

    4,494,436   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Commercial Mortgage-Backed Securities - 11.4% -
(continued)
 
   

JPMBB Commercial Mortgage Securities Trust

 
  $        15,459,589     

1.03%, 09/15/2047 (2)(4)

  $ 768,001   
    1,650,000     

3.78%, 08/15/2047

    1,763,084   
    1,665,000     

3.80%, 09/15/2047

    1,779,993   
    2,085,000     

4.00%, 04/15/2047

    2,271,733   
    1,250,000     

4.20%, 01/15/2047

    1,385,336   
   

LB-UBS Commercial Mortgage Trust

 
    346,751     

5.43%, 02/15/2040

    366,252   
    4,799,406     

5.86%, 07/15/2040 (2)

    5,029,163   
    913,514     

6.32%, 04/15/2041 (2)

    998,893   
   

Lehman Brothers Small Balance Commercial

 
    168,625     

0.16%, 09/25/2030 (1)

    169,429   
   

Merrill Lynch Mortgage Investors Trust

 
    935,000     

5.14%, 07/12/2038 (2)

    938,362   
   

Merrill Lynch/Countrywide Commercial Mortgage Trust

 
    4,087,381     

5.38%, 08/12/2048

    4,307,368   
    1,040,000     

5.42%, 08/12/2048

    1,096,362   
    2,185,000     

5.70%, 09/12/2049

    2,341,481   
    2,886,953     

5.81%, 06/12/2050 (2)

    3,102,236   
   

Morgan Stanley BAML Trust

 
    9,705,471     

1.32%, 12/15/2047 (2)(4)

    709,878   
    2,315,000     

3.74%, 08/15/2047

    2,471,172   
    775,000     

4.06%, 02/15/2047

    848,096   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    775,000     

4.50%, 08/15/2045 (1)

    610,276   
   

Morgan Stanley Capital I Trust

 
    42,311,490     

1.06%, 09/15/2047 (1)(2)(4)

    562,362   
    2,605,000     

3.47%, 08/11/2029 (1)

    2,739,871   
    860,000     

5.36%, 07/15/2049 (1)(2)

    788,040   
    556,076     

5.36%, 11/14/2042 (2)

    558,507   
    250,000     

5.55%, 10/12/2052 (1)(2)

    253,215   
    175,000     

5.55%, 10/12/2052 (1)(2)

    175,971   
    2,340,000     

5.57%, 12/15/2044

    2,496,462   
    3,450,000     

5.69%, 04/15/2049 (2)

    3,679,435   
    2,042,691     

5.81%, 12/12/2049

    2,211,305   
    600,000     

6.46%, 01/11/2043 (1)(2)

    626,873   
   

Morgan Stanley Re-Remic Trust

 
    1,921,725     

5.99%, 08/12/2045 (1)(2)

    2,051,949   
    1,549,332     

5.99%, 08/15/2045 (1)(2)

    1,651,208   
   

UBS-Barclays Commercial Mortgage Trust

 
    2,380,000     

3.19%, 03/10/2046

    2,461,648   
    4,120,000     

3.24%, 04/10/2046

    4,276,754   
    485,000     

4.23%, 03/10/2046 (1)(2)

    410,516   
   

Wachovia Bank Commercial Mortgage Trust

 
    601,717     

5.31%, 11/15/2048

    629,667   
    1,025,000     

5.66%, 03/15/2042 (1)(2)

    1,022,740   
   

Wells Fargo Commercial Mortgage Trust

 
    13,115,000     

1.22%, 05/15/2048 (2)(4)

    1,082,683   
    1,420,000     

2.92%, 10/15/2045

    1,459,083   
    1,660,000     

3.82%, 08/15/2050

    1,780,514   
    395,000     

4.11%, 05/15/2048 (2)

    362,718   
    60,000     

4.94%, 10/15/2045 (1)(2)

    61,694   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  141  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Commercial Mortgage-Backed Securities - 11.4% -
(continued)
 
   

WF-RBS Commercial Mortgage Trust

 
  $        1,180,233     

2.92%, 08/15/2047

  $ 1,227,551   
    1,545,000     

3.02%, 11/15/2047 (1)

    1,098,855   
    3,315,000     

3.68%, 08/15/2047

    3,533,061   
    2,570,000     

4.00%, 05/15/2047

    2,800,760   
    3,255,000     

4.05%, 03/15/2047

    3,565,397   
    1,624,511     

4.10%, 03/15/2047

    1,788,440   
    2,130,000     

4.90%, 06/15/2044 (1)(2)

    2,424,862   
    345,000     

5.00%, 06/15/2044 (1)(2)

    327,763   
    400,505     

5.00%, 04/15/2045 (1)(2)

    327,514   
    960,000     

5.75%, 04/15/2045 (1)(2)

    1,037,362   
     

 

 

 
        215,211,154   
     

 

 

 
            Whole Loan Collateral CMO - 3.9%  
   

Adjustable Rate Mortgage Trust

 
    289,881     

0.43%, 01/25/2036 (2)

    243,254   
    1,272,958     

0.45%, 11/25/2035 (2)

    1,159,880   
    1,484,191     

0.68%, 01/25/2036 (2)

    1,282,311   
   

American Home Mortgage Assets Trust

 
    807,406     

0.37%, 09/25/2046 (2)

    602,363   
    1,007,999     

1.08%, 10/25/2046 (2)

    716,681   
   

Banc of America Funding Corp.

 
    180,927     

0.37%, 10/20/2036 (2)

    135,376   
    230,413     

0.41%, 02/20/2047 (2)

    199,854   
    2,720,867     

0.48%, 05/20/2047 (2)

    2,242,571   
    3,343,795     

5.77%, 05/25/2037 (2)

    2,958,523   
    156,203     

5.85%, 01/25/2037

    125,311   
   

BCAP LLC Trust

 
    581,793     

0.35%, 01/25/2037 (2)

    461,186   
    1,518,681     

0.36%, 03/25/2037 (2)

    1,288,437   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    1,575,652     

2.41%, 10/25/2035 (2)

    1,552,153   
   

Bear Stearns Alt-A Trust

 
    291,689     

0.50%, 08/25/2036 (2)

    218,645   
    1,603,515     

0.56%, 05/25/2036 (2)

    1,318,482   
    3,516,856     

0.68%, 01/25/2036 (2)

    2,771,230   
   

Bear Stearns Mortgage Funding Trust

 
    1,823,822     

0.36%, 10/25/2036 (2)

    1,420,763   
   

CHL Mortgage Pass-Through Trust

 
    1,477,008     

0.52%, 03/25/2035 (2)

    1,211,031   
    703,172     

2.42%, 06/20/2035 (2)

    670,537   
   

Connecticut Avenue Securities Series

 
    335,000     

2.78%, 05/25/2024 (2)

    312,346   
    1,400,000     

3.08%, 07/25/2024 (2)

    1,326,674   
    1,900,000     

3.18%, 07/25/2024 (2)

    1,820,204   
    850,000     

5.08%, 11/25/2024 (2)

    904,235   
   

Countrywide Alternative Loan Trust

 
    2,789,005     

0.45%, 01/25/2036 (2)

    2,479,512   
    1,463,195     

0.50%, 11/25/2035 (2)

    1,198,479   
    273,874     

0.58%, 10/25/2036 (2)

    196,403   
    1,212,288     

5.75%, 05/25/2036

    1,077,462   
    422,797     

6.00%, 05/25/2036

    364,419   
    272,639     

6.00%, 12/25/2036

    213,495   
   

Countrywide Home Loans, Inc.

 
    2,598,773     

2.55%, 09/25/2047 (2)

    2,311,895   
    1,011,012     

2.70%, 04/20/2036 (2)

    723,278   
    1,454,177     

4.76%, 11/20/2035 (2)

    1,297,619   
    1,902,459     

5.75%, 08/25/2037

    1,809,158   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Whole Loan Collateral CMO - 3.9% - (continued)  
   

CS First Boston Mortgage Securities Corp.

 
  $        1,824,394     

5.50%, 06/25/2035

  $ 1,731,636   
   

Downey S & L Association Mortgage Loan Trust

 
    1,084,350     

1.05%, 03/19/2046 (2)

    833,110   
   

GMAC Mortgage Corp. Loan Trust

 
    1,438,527     

2.94%, 09/19/2035 (2)

    1,342,906   
    209,477     

2.98%, 04/19/2036 (2)

    185,779   
   

GSR Mortgage Loan Trust

 
    308,366     

0.68%, 11/25/2035 (2)

    223,431   
    5,105,356     

2.71%, 01/25/2036 (2)

    4,728,535   
   

HarborView Mortgage Loan Trust

 
    1,891,003     

0.37%, 01/19/2038 (2)

    1,595,672   
    2,052,956     

0.42%, 12/19/2036 (2)

    1,451,871   
    1,105,048     

0.88%, 01/19/2035 (2)

    769,233   
   

IndyMac Index Mortgage Loan Trust

 
    853,690     

0.42%, 07/25/2035 (2)

    741,386   
    1,600,499     

0.46%, 07/25/2035 (2)

    1,332,398   
    290,153     

0.47%, 01/25/2036 (2)

    201,513   
    1,482,883     

0.58%, 07/25/2046 (2)

    828,284   
    1,022,497     

2.42%, 01/25/2036 (2)

    944,162   
    697,220     

2.50%, 08/25/2035 (2)

    555,892   
   

JP Morgan Mortgage Trust

 
    299,113     

2.53%, 04/25/2037 (2)

    267,015   
    1,243,972     

2.55%, 09/25/2035 (2)

    1,185,646   
    872,464     

2.61%, 05/25/2036 (2)

    774,423   
   

Lehman XS Trust

 
    1,106,994     

0.39%, 07/25/2046 (2)

    876,870   
   

Merrill Lynch Mortgage Investors Trust

 
    664,749     

2.55%, 07/25/2035 (2)

    538,591   
   

Morgan Stanley Mortgage Loan Trust

 
    1,945,240     

2.76%, 05/25/2036 (2)

    1,412,412   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    258,979     

3.47%, 06/25/2036 (2)

    198,316   
   

RBSGC Mortgage Pass-Through Certificates

 
    3,564,235     

6.25%, 01/25/2037

    3,221,455   
   

Residential Accredit Loans, Inc.

 
    265,753     

0.40%, 02/25/2046 (2)

    126,154   
    2,150,632     

0.48%, 04/25/2036 (2)

    1,540,197   
    389,328     

0.94%, 09/25/2046 (2)

    263,340   
    3,874,295     

1.39%, 11/25/2037 (2)

    2,473,675   
   

Residential Asset Securitization Trust

 
    986,545     

0.63%, 03/25/2035 (2)

    800,991   
   

Residential Funding Mortgage Securities, Inc.

 
    975,310     

2.70%, 08/25/2035 (2)

    772,939   
   

Sequoia Mortgage Trust

 
    397,110     

2.49%, 07/20/2037 (2)

    339,381   
   

Springleaf Mortgage Loan Trust

 
    2,860,171     

3.52%, 12/25/2065 (1)(2)

    2,914,932   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    666,408     

0.48%, 09/25/2034 (2)

    586,811   
   

WaMu Mortgage Pass-Through Certificates Trust

 
    1,033,239     

0.60%, 06/25/2044 (2)

    955,916   
    825,063     

1.12%, 07/25/2046 (2)

    684,641   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  142  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 30.6% -
(continued)
 
            Whole Loan Collateral CMO - 3.9% - (continued)  
  $        402,742     

2.20%, 11/25/2046 (2)

  $ 363,000   
   

Wells Fargo Alternative Loan Trust

 
    4,420     

6.25%, 11/25/2037

    4,310   
     

 

 

 
        74,380,590   
     

 

 

 
            Whole Loan Collateral PAC - 0.0%  
   

Countrywide Alternative Loan Trust

 
    254,543     

0.68%, 12/25/2035 (2)

    182,583   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $569,831,169)

  $ 578,665,947   
     

 

 

 
     
CORPORATE BONDS - 32.6%  
            Aerospace/Defense - 0.3%  
   

HLM

 
  $        2,910,000     

1.79%, 05/05/2027

  $ 2,899,233   
   

Raytheon Co.

 
    1,225,000     

3.13%, 10/15/2020

    1,286,519   
   

Triumph Group, Inc.

 
    485,000     

5.25%, 06/01/2022

    480,150   
     

 

 

 
        4,665,902   
     

 

 

 
            Agriculture - 0.1%  
   

Altria Group, Inc.

 
    534,000     

10.20%, 02/06/2039

    927,393   
     

 

 

 
            Apparel - 0.1%  
   

William Carter Co.

 
    1,375,000     

5.25%, 08/15/2021

    1,426,562   
     

 

 

 
            Auto Manufacturers - 1.3%  
   

Daimler Finance NA LLC

 
    5,450,000     

1.65%, 03/02/2018 (1)

    5,483,992   
   

Ford Motor Credit Co. LLC

 
    5,755,000     

1.46%, 03/27/2017

    5,754,223   
    430,000     

4.21%, 04/15/2016

    442,323   
    1,370,000     

4.25%, 02/03/2017

    1,436,471   
   

General Motors Financial Co., Inc.

 
    1,900,000     

2.40%, 04/10/2018

    1,901,925   
    3,400,000     

3.50%, 07/10/2019

    3,482,011   
    3,640,000     

4.75%, 08/15/2017

    3,840,127   
   

Volkswagen Group of America Finance LLC

 
    2,715,000     

1.60%, 11/20/2017 (1)

    2,730,674   
     

 

 

 
        25,071,746   
     

 

 

 
            Auto Parts & Equipment - 0.0%  
   

ZF North America Capital, Inc.

 
    165,000     

4.75%, 04/29/2025

    165,413   
     

 

 

 
            Beverages - 0.1%  
   

Anheuser-Busch InBev Worldwide, Inc.

 
    1,050,000     

0.80%, 07/15/2015

    1,050,894   
     

 

 

 
            Biotechnology - 0.2%  
   

Celgene Corp.

 
    2,360,000     

4.63%, 05/15/2044

    2,416,425   
   

Gilead Sciences, Inc.

 
    1,385,000     

3.50%, 02/01/2025

    1,436,414   
     

 

 

 
        3,852,839   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Chemicals - 0.4%  
   

CF Industries Holdings, Inc.

 
  $        1,650,000     

4.95%, 06/01/2043

  $ 1,700,634   
    3,165,000     

5.15%, 03/15/2034

    3,382,461   
   

Dow Chemical Co.

 
    1,500,000     

8.55%, 05/15/2019

    1,862,407   
     

 

 

 
        6,945,502   
     

 

 

 
            Coal - 0.0%  
   

Peabody Energy Corp.

 
    1,030,000     

6.50%, 09/15/2020

    638,600   
     

 

 

 
            Commercial Banks - 10.7%  
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        3,200,000     

7.00%, 02/19/2019 (5)(6)

    3,682,948   
  $        2,400,000     

9.00%, 05/09/2018 (5)(6)

    2,595,000   
   

Banco do Brasil S.A.

 
    885,000     

6.25%, 04/15/2024 (5)(6)

    655,077   
   

Banco Santander S.A.

 
  EUR        4,600,000     

6.25%, 03/12/2019 (5)(6)

    5,184,479   
    700,000     

6.25%, 09/11/2021 (5)(6)

    783,363   
   

Bank of America Corp.

 
  $        900,000     

4.00%, 01/22/2025

    892,031   
    8,210,000     

4.20%, 08/26/2024

    8,294,235   
    500,000     

4.88%, 04/01/2044

    544,609   
   

Bank of New York Mellon Corp.

 
    9,080,000     

2.15%, 02/24/2020

    9,115,430   
   

Barclays Bank plc

 
    6,900,000     

6.05%, 12/04/2017 (1)

    7,563,097   
  EUR        500,000     

6.50%, 09/15/2019 (5)

    570,956   
  $        600,000     

7.75%, 04/10/2023

    666,000   
  EUR        1,100,000     

8.00%, 12/15/2020 (5)

    1,358,797   
  $        1,605,000     

8.25%, 12/15/2018 (5)

    1,709,643   
   

BPCE S.A.

 
    2,380,000     

2.50%, 12/10/2018

    2,439,959   
    2,780,000     

5.15%, 07/21/2024 (1)

    2,920,012   
    1,900,000     

5.70%, 10/22/2023 (1)

    2,074,015   
   

Capital One Financial Corp.

 
    1,750,000     

6.15%, 09/01/2016

    1,856,382   
   

Capital One NA/Mclean

 
    7,075,000     

1.65%, 02/05/2018

    7,040,226   
   

CIT Group, Inc.

 
    40,000     

5.00%, 05/15/2017

    41,400   
    1,329,000     

5.50%, 02/15/2019 (1)

    1,390,466   
    485,000     

6.63%, 04/01/2018 (1)

    520,162   
   

Citigroup, Inc.

 
    4,050,000     

1.85%, 11/24/2017

    4,075,920   
    975,000     

2.50%, 09/26/2018

    993,675   
    2,425,000     

4.30%, 11/20/2026

    2,454,529   
    1,835,000     

6.13%, 08/25/2036

    2,164,984   
    3,450,000     

6.68%, 09/13/2043

    4,426,616   
    683,000     

8.50%, 05/22/2019

    845,067   
   

Credit Agricole S.A.

 
    2,000,000     

4.38%, 03/17/2025 (1)

    1,978,256   
  EUR        1,440,000     

6.50%, 06/23/2021 (5)(6)

    1,692,860   
  $        845,000     

6.63%, 09/23/2019 (1)(5)

    853,840   
   

Credit Suisse Group AG

 
  EUR        1,010,000     

5.75%, 09/18/2025 (6)

    1,310,200   
  $        955,000     

6.25%, 12/18/2024 (1)(5)

    945,450   
    800,000     

7.88%, 02/24/2041 (6)

    847,000   
   

Deutsche Bank AG

 
    3,290,000     

4.50%, 04/01/2025

    3,221,443   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  143  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Commercial Banks - 10.7% - (continued)  
   

Export-Import Bank of India

 
  $        950,000     

2.75%, 08/12/2020 (6)

  $ 939,227   
    910,000     

4.00%, 01/14/2023 (6)

    930,954   
   

Goldman Sachs Group, Inc.

 
    360,000     

1.44%, 04/23/2020

    364,138   
    1,725,000     

2.38%, 01/22/2018

    1,755,562   
    1,900,000     

2.60%, 04/23/2020

    1,908,026   
    2,696,000     

6.00%, 06/15/2020

    3,123,208   
    1,410,000     

6.25%, 02/01/2041

    1,779,827   
    1,700,000     

6.45%, 05/01/2036

    2,065,692   
    3,515,000     

6.75%, 10/01/2037

    4,415,216   
   

HSBC Holdings plc

 
  EUR        1,775,000     

5.25%, 09/16/2022 (5)(6)

    2,082,746   
  $        800,000     

5.25%, 03/14/2044

    889,335   
    1,250,000     

5.63%, 01/17/2020 (5)

    1,278,125   
    425,000     

6.10%, 01/14/2042

    552,141   
    700,000     

6.50%, 09/15/2037

    879,864   
    1,800,000     

6.80%, 06/01/2038

    2,362,189   
   

ING Bank N.V.

 
    3,585,000     

1.80%, 03/16/2018 (1)

    3,603,588   
   

ING Groep N.V.

 
    1,095,000     

6.00%, 04/16/2020 (5)

    1,090,209   
    750,000     

6.50%, 04/16/2025 (5)

    745,781   
   

JP Morgan Chase & Co.

 
    645,000     

2.60%, 01/15/2016

    653,206   
    755,000     

3.38%, 05/01/2023

    753,119   
    2,800,000     

4.35%, 08/15/2021

    3,061,209   
    500,000     

4.63%, 05/10/2021

    554,054   
    2,170,000     

4.85%, 02/01/2044

    2,407,600   
    415,000     

5.60%, 07/15/2041

    497,009   
    4,305,000     

5.63%, 08/16/2043

    5,021,051   
    2,745,000     

6.00%, 01/15/2018

    3,058,443   
   

KBC Groep N.V.

 
  EUR        630,000     

5.63%, 03/19/2019 (5)(6)

    710,048   
   

Lloyds Banking Group plc

 
    2,860,000     

6.38%, 06/27/2020 (5)(6)

    3,420,654   
  GBP        915,000     

7.00%, 06/27/2019 (5)(6)

    1,437,924   
   

Merrill Lynch & Co., Inc.

 
  $        1,316,000     

5.70%, 05/02/2017

    1,414,408   
    6,420,000     

6.05%, 05/16/2016

    6,724,956   
    2,235,000     

7.75%, 05/14/2038

    3,094,628   
   

Morgan Stanley

 
    1,975,000     

2.13%, 04/25/2018

    1,990,990   
    1,175,000     

2.50%, 01/24/2019

    1,191,812   
    2,315,000     

3.95%, 04/23/2027

    2,272,538   
    2,720,000     

4.30%, 01/27/2045

    2,674,666   
    1,410,000     

4.35%, 09/08/2026

    1,436,408   
    2,275,000     

4.88%, 11/01/2022

    2,464,562   
    4,950,000     

5.55%, 04/27/2017

    5,337,902   
    505,000     

7.30%, 05/13/2019

    599,704   
   

PNC Bank NA

 
    813,000     

6.88%, 04/01/2018

    928,858   
   

Royal Bank of Scotland Group plc

 
    1,695,000     

5.13%, 05/28/2024

    1,750,669   
    1,665,000     

6.13%, 12/15/2022

    1,847,168   
   

Societe Generale S.A.

 
    1,160,000     

6.00%, 01/27/2020 (1)(5)

    1,105,596   
  EUR        1,545,000     

6.75%, 04/07/2021 (5)(6)

    1,789,623   
  $        3,740,000     

8.25%, 11/29/2018 (5)(6)

    3,973,750   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Commercial Banks - 10.7% - (continued)  
   

Standard Chartered plc

 
  $        2,250,000     

6.50%, 04/02/2020 (1)(5)

  $ 2,273,404   
   

Sumitomo Mitsui Financial Group, Inc.

 
    1,645,000     

4.44%, 04/02/2024 (1)

    1,749,502   
   

SunTrust Banks, Inc.

 
    3,080,000     

3.50%, 01/20/2017

    3,194,253   
   

UBS AG

 
    680,000     

7.63%, 08/17/2022

    817,169   
   

UBS Group AG

 
    425,000     

7.13%, 02/19/2020 (5)(6)

    442,433   
   

UniCredit S.p.A.

 
    720,000     

8.00%, 06/03/2024 (5)(6)

    735,840   
   

Wells Fargo & Co.

 
    3,070,000     

3.00%, 02/19/2025

    3,027,339   
    1,740,000     

3.45%, 02/13/2023

    1,773,170   
    2,690,000     

4.10%, 06/03/2026

    2,788,029   
    1,975,000     

4.13%, 08/15/2023

    2,100,075   
    120,000     

4.65%, 11/04/2044

    122,514   
    50,000     

5.38%, 11/02/2043

    56,631   
    1,460,000     

5.61%, 01/15/2044

    1,698,879   
     

 

 

 
        201,425,748   
     

 

 

 
            Commercial Services - 0.1%  
   

Cardtronics, Inc.

 
    695,000     

5.13%, 08/01/2022 (1)

    689,787   
   

Sotheby’s

 
    910,000     

5.25%, 10/01/2022 (1)

    907,725   
   

United Rentals North America, Inc.

 
    230,000     

4.63%, 07/15/2023

    233,165   
    290,000     

5.50%, 07/15/2025

    293,785   
     

 

 

 
        2,124,462   
     

 

 

 
            Construction Materials - 0.1%  
   

Building Materials Corp. of America

 
    665,000     

5.38%, 11/15/2024 (1)

    681,625   
   

Cemex S.A.B. de C.V.

 
  EUR        425,000     

4.38%, 03/05/2023 (1)

    476,209   
   

Norbord, Inc.

 
  $        500,000     

6.25%, 04/15/2023 (1)

    505,625   
   

USG Corp.

 
    15,000     

5.50%, 03/01/2025 (1)

    15,750   
     

 

 

 
        1,679,209   
     

 

 

 
            Diversified Financial Services - 1.2%  
   

Aircastle Ltd.

 
    125,000     

5.50%, 02/15/2022

    133,438   
   

American Express Co.

 
    1,175,000     

3.63%, 12/05/2024

    1,190,016   
   

Bear Stearns & Co., Inc.

 
    1,905,000     

5.55%, 01/22/2017

    2,035,755   
   

General Electric Capital Corp.

 
    7,000,000     

0.55%, 01/09/2017 (2)

    7,018,368   
    1,800,000     

5.30%, 02/11/2021

    2,084,459   
    530,000     

5.88%, 01/14/2038

    688,471   
    1,700,000     

6.25%, 12/15/2022 (2)(5)

    1,912,500   
    815,000     

6.88%, 01/10/2039

    1,180,943   
   

Intercorp Peru Ltd.

 
    940,000     

5.88%, 02/12/2025 (1)

    949,400   
   

International Lease Finance Corp.

 
    2,105,000     

5.88%, 04/01/2019

    2,289,187   
    1,025,000     

6.75%, 09/01/2016 (1)

    1,083,938   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  144  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Diversified Financial Services - 1.2% - (continued)  
   

Navient Corp.

 
  $        630,000     

5.50%, 01/15/2019

  $ 640,395   
    395,000     

7.25%, 01/25/2022

    418,700   
    945,000     

8.45%, 06/15/2018

    1,054,337   
     

 

 

 
        22,679,907   
     

 

 

 
            Electric - 0.7%  
   

AES Corp.

 
    195,000     

5.50%, 03/15/2024

    195,000   
   

Alabama Power Co.

 
    3,100,000     

2.80%, 04/01/2025

    3,095,769   
   

Consolidated Edison Co. of New York, Inc.

 
    1,270,000     

3.30%, 12/01/2024

    1,316,944   
   

DPL, Inc.

 
    295,000     

7.25%, 10/15/2021

    318,600   
   

Duke Energy Carolinas LLC

 
    1,465,000     

4.25%, 12/15/2041

    1,583,508   
   

Duke Energy Florida, Inc.

 
    750,000     

5.65%, 06/15/2018

    847,031   
   

Duke Energy Progress, Inc.

 
    1,910,000     

4.38%, 03/30/2044

    2,099,491   
   

EDP Finance B.V.

 
    360,000     

5.25%, 01/14/2021 (1)

    387,644   
   

Empresa Electrica Angamos S.A.

 
    575,000     

4.88%, 05/25/2029 (1)

    581,469   
   

Eskom Holdings Ltd.

 
    1,195,000     

5.75%, 01/26/2021 (1)

    1,190,220   
   

Pacific Gas & Electric Co.

 
    725,000     

3.75%, 02/15/2024

    770,365   
    675,000     

8.25%, 10/15/2018

    820,612   
     

 

 

 
        13,206,653   
     

 

 

 
            Electrical Components & Equipment - 0.0%  
   

EnerSys

 
    465,000     

5.00%, 04/30/2023 (1)

    470,812   
     

 

 

 
            Engineering & Construction - 0.3%  
   

SBA Tower Trust

 
    2,400,000     

2.93%, 12/15/2042 (1)

    2,440,512   
    3,435,000     

3.60%, 04/15/2043 (1)

    3,430,761   
     

 

 

 
        5,871,273   
     

 

 

 
            Environmental Control - 0.1%  
   

Clean Harbors, Inc.

 
    150,000     

5.13%, 06/01/2021

    153,000   
    605,000     

5.25%, 08/01/2020

    623,150   
   

Waste Management, Inc.

 
    1,640,000     

3.13%, 03/01/2025

    1,637,078   
     

 

 

 
        2,413,228   
     

 

 

 
            Food - 0.2%  
   

JM Smucker Co.

 
    690,000     

2.50%, 03/15/2020 (1)

    694,636   
   

Marfrig Holding Europe B.V.

 
    2,150,000     

6.88%, 06/24/2019 (6)

    1,913,500   
   

Minerva Luxembourg S.A.

 
    750,000     

7.75%, 01/31/2023 (1)

    748,125   
     

 

 

 
        3,356,261   
     

 

 

 
            Forest Products & Paper - 0.0%  
   

Cascades, Inc.

 
    165,000     

5.50%, 07/15/2022 (1)

    167,062   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Forest Products & Paper - 0.0% - (continued)  
   

Clearwater Paper Corp.

 
  $        700,000     

5.38%, 02/01/2025 (1)

  $ 712,250   
     

 

 

 
        879,312   
     

 

 

 
            Gas - 0.1%  
   

CenterPoint Energy, Inc.

 
    1,700,000     

6.85%, 06/01/2015

    1,707,647   
   

Southern Star Central Corp.

 
    75,000     

5.13%, 07/15/2022 (1)

    78,000   
     

 

 

 
        1,785,647   
     

 

 

 
            Healthcare-Products - 0.7%  
   

Medtronic, Inc.

 
    2,900,000     

2.50%, 03/15/2020 (1)

    2,961,042   
    2,585,000     

3.15%, 03/15/2022 (1)

    2,670,186   
    1,995,000     

4.38%, 03/15/2035 (1)

    2,107,835   
    1,265,000     

4.63%, 03/15/2045 (1)

    1,362,562   
   

Zimmer Holdings, Inc.

 
    3,645,000     

1.45%, 04/01/2017

    3,655,370   
     

 

 

 
        12,756,995   
     

 

 

 
            Healthcare-Services - 0.9%  
   

Anthem, Inc.

 
    4,575,000     

3.50%, 08/15/2024

    4,679,731   
    1,300,000     

4.63%, 05/15/2042

    1,360,577   
   

Community Health Systems, Inc.

 
    350,000     

5.13%, 08/01/2021

    362,250   
   

HCA, Inc.

 
    1,485,000     

6.50%, 02/15/2020

    1,692,900   
    1,336,000     

7.50%, 11/15/2095

    1,302,600   
   

Laboratory Corp. of America Holdings

 
    1,155,000     

3.20%, 02/01/2022

    1,163,631   
   

Roche Holdings, Inc.

 
    2,580,000     

3.35%, 09/30/2024 (1)

    2,694,766   
   

Tenet Healthcare Corp.

 
    1,575,000     

6.00%, 10/01/2020

    1,681,313   
   

UnitedHealth Group, Inc.

 
    2,145,000     

1.40%, 10/15/2017

    2,164,728   
   

Wellcare Health Plans, Inc.

 
    295,000     

5.75%, 11/15/2020

    312,700   
     

 

 

 
        17,415,196   
     

 

 

 
            Holding Companies-Diversified - 0.3%  
   

Hutchison Whampoa Europe Finance Ltd.

 
  EUR        1,535,000     

3.75%, 05/10/2018 (5)(6)

    1,770,283   
   

Hutchison Whampoa International Ltd.

 
  $        325,000     

1.63%, 10/31/2017 (1)

    323,796   
    4,025,000     

2.00%, 11/08/2017 (1)

    4,048,796   
     

 

 

 
        6,142,875   
     

 

 

 
            Home Builders - 0.1%  
   

Lennar Corp.

 
    910,000     

4.50%, 06/15/2019

    937,300   
   

Ryland Group, Inc.

 
    850,000     

5.38%, 10/01/2022

    864,875   
     

 

 

 
        1,802,175   
     

 

 

 
            Insurance - 0.6%  
   

American International Group, Inc.

 
    380,000     

4.50%, 07/16/2044

    393,353   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  145  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Insurance - 0.6% - (continued)  
   

Marsh & McLennan Cos., Inc.

 
  $        635,000     

2.55%, 10/15/2018

  $ 651,749   
    1,535,000     

3.50%, 03/10/2025

    1,572,681   
   

Massachusetts Mutual Life Insurance Co.

 
    1,497,000     

8.88%, 06/01/2039 (1)

    2,364,844   
   

MetLife, Inc.

 
    1,850,000     

1.76%, 12/15/2017

    1,873,386   
   

Nationwide Mutual Insurance Co.

 
    2,455,000     

9.38%, 08/15/2039 (1)

    3,849,148   
   

Pacific Life Insurance Co.

 
    215,000     

9.25%, 06/15/2039 (1)

    329,791   
     

 

 

 
        11,034,952   
     

 

 

 
            Internet - 0.0%  
   

Alibaba Group Holding Ltd.

 
    200,000     

3.60%, 11/28/2024 (6)

    199,102   
   

Equinix, Inc.

 
    560,000     

4.88%, 04/01/2020

    578,200   
    95,000     

5.38%, 04/01/2023

    98,087   
     

 

 

 
        875,389   
     

 

 

 
            Iron/Steel - 0.2%  
   

Glencore Funding LLC

 
    1,735,000     

1.70%, 05/27/2016 (1)

    1,740,712   
   

Steel Dynamics, Inc.

 
    300,000     

5.13%, 10/01/2021 (1)

    306,750   
    325,000     

5.50%, 10/01/2024 (1)

    335,562   
   

United States Steel Corp.

 
    550,000     

7.38%, 04/01/2020

    574,750   
     

 

 

 
        2,957,774   
     

 

 

 
            IT Services - 0.4%  
   

Apple, Inc.

 
    3,335,000     

2.50%, 02/09/2025

    3,228,907   
    3,955,000     

3.45%, 02/09/2045

    3,536,676   
     

 

 

 
        6,765,583   
     

 

 

 
            Machinery - Contruction & Mining - 0.0%  
   

Oshkosh Corp.

 
    255,000     

5.38%, 03/01/2025 (1)

    264,563   
     

 

 

 
            Machinery-Diversified - 0.1%  
   

Case New Holland Industrial, Inc.

 
    995,000     

7.88%, 12/01/2017

    1,096,987   
     

 

 

 
            Media - 1.9%  
   

21st Century Fox America, Inc.

 
    2,400,000     

6.15%, 03/01/2037

    2,942,510   
    750,000     

6.20%, 12/15/2034

    932,822   
    1,028,000     

8.00%, 10/17/2016

    1,130,094   
   

CCO Holdings LLC

 
    35,000     

5.13%, 02/15/2023

    34,596   
    30,000     

5.25%, 09/30/2022

    29,978   
    170,000     

5.75%, 09/01/2023

    171,700   
   

Comcast Corp.

 
    1,740,000     

4.75%, 03/01/2044

    1,906,492   
    425,000     

5.70%, 07/01/2019

    489,545   
   

Cox Communications, Inc.

 
    20,000     

2.95%, 06/30/2023 (1)

    19,307   
    1,750,000     

3.85%, 02/01/2025 (1)

    1,772,718   
   

DIRECTV Holdings LLC

 
    1,750,000     

3.95%, 01/15/2025

    1,779,528   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Media - 1.9% - (continued)  
  $        1,420,000     

5.00%, 03/01/2021

  $ 1,571,210   
   

DISH DBS Corp.

 
    365,000     

5.88%, 11/15/2024

    359,525   
    1,200,000     

7.88%, 09/01/2019

    1,354,500   
   

Gannett Co., Inc.

 
    1,670,000     

5.13%, 10/15/2019

    1,759,762   
   

Liberty Interactive LLC

 
    845,000     

8.25%, 02/01/2030

    935,837   
   

NBC Universal Media LLC

 
    1,379,000     

5.95%, 04/01/2041

    1,730,888   
   

Numericable-SFR SAS

 
    280,000     

4.88%, 05/15/2019 (1)

    282,450   
   

Sky plc

 
    2,590,000     

2.63%, 09/16/2019 (1)

    2,625,511   
    1,870,000     

3.13%, 11/26/2022 (1)

    1,851,223   
   

Time Warner Cable, Inc.

 
    1,175,000     

4.50%, 09/15/2042

    999,313   
    165,000     

5.88%, 11/15/2040

    162,516   
    125,000     

6.75%, 06/15/2039

    131,505   
    150,000     

7.30%, 07/01/2038

    166,157   
    2,145,000     

8.75%, 02/14/2019

    2,532,082   
   

Time Warner Entertainment Co., L.P.

 
    80,000     

8.38%, 03/15/2023

    98,150   
    3,190,000     

8.38%, 07/15/2033

    3,864,656   
   

Time Warner, Inc.

 
    1,650,000     

5.88%, 11/15/2016

    1,770,392   
    1,445,000     

6.10%, 07/15/2040

    1,761,147   
    1,100,000     

6.50%, 11/15/2036

    1,387,030   
     

 

 

 
        36,553,144   
     

 

 

 
            Mining - 0.3%  
   

FMG Resources August 2006 Pty Ltd.

 
    645,000     

6.88%, 04/01/2022 (1)

    488,588   
   

Freeport-McMoRan, Inc.

 
    2,850,000     

4.00%, 11/14/2021

    2,817,308   
    55,000     

5.40%, 11/14/2034

    49,478   
    225,000     

5.45%, 03/15/2043

    196,812   
   

Southern Copper Corp.

 
    705,000     

5.25%, 11/08/2042

    648,121   
    1,235,000     

5.88%, 04/23/2045

    1,214,375   
   

Vedanta Resources plc

 
    1,040,000     

6.00%, 01/31/2019 (6)

    980,200   
     

 

 

 
        6,394,882   
     

 

 

 
            Oil & Gas - 2.3%  
   

Anadarko Petroleum Corp.

 
    650,000     

3.45%, 07/15/2024

    659,720   
    1,345,000     

6.38%, 09/15/2017

    1,494,588   
   

Antero Resources Corp.

 
    220,000     

5.63%, 06/01/2023 (1)

    224,675   
   

BP Capital Markets plc

 
    5,080,000     

1.67%, 02/13/2018

    5,115,784   
    1,240,000     

2.52%, 01/15/2020

    1,268,363   
   

Cenovus Energy, Inc.

 
    1,490,000     

5.20%, 09/15/2043

    1,502,911   
   

CNPC General Capital

 
    3,700,000     

1.45%, 04/16/2016 (1)

    3,702,002   
   

ConocoPhillips Co.

 
    1,745,000     

3.35%, 11/15/2024

    1,780,558   
   

Continental Resources, Inc.

 
    740,000     

5.00%, 09/15/2022

    751,100   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  146  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Oil & Gas - 2.3% - (continued)  
   

Ecopetrol S.A.

 
  $        1,930,000     

5.88%, 05/28/2045

  $ 1,850,387   
   

EnCana Corp.

 
    2,655,000     

6.50%, 05/15/2019

    3,044,388   
   

Harvest Operations Corp.

 
    736,000     

6.88%, 10/01/2017

    679,880   
   

Hess Corp.

 
    635,000     

5.60%, 02/15/2041

    705,525   
   

Kerr-McGee Corp.

 
    1,945,000     

6.95%, 07/01/2024

    2,437,879   
   

Lukoil International Finance B.V.

 
    3,300,000     

3.42%, 04/24/2018 (1)

    3,106,950   
   

Nexen Energy

 
    485,000     

7.50%, 07/30/2039

    684,578   
   

Nexen Energy ULC

 
    230,000     

5.88%, 03/10/2035

    264,592   
    1,225,000     

6.40%, 05/15/2037

    1,502,907   
   

Pemex Project Funding Master Trust

 
    2,350,000     

6.63%, 06/15/2035

    2,648,450   
   

Petrobras Global Finance B.V.

 
  GBP        975,000     

5.38%, 10/01/2029

    1,295,068   
   

Petroleos Mexicanos

 
  $        235,000     

3.50%, 07/23/2020 (1)

    240,287   
  MXN        40,000,000     

7.47%, 11/12/2026

    2,501,421   
   

Pioneer Natural Resources Co.

 
  $        290,000     

6.65%, 03/15/2017

    316,921   
   

QEP Resources, Inc.

 
    20,000     

5.38%, 10/01/2022

    20,250   
    25,000     

6.80%, 03/01/2020

    26,313   
   

Statoil ASA

 
    300,000     

3.70%, 03/01/2024

    320,100   
    1,855,000     

3.95%, 05/15/2043

    1,867,328   
   

Tesoro Corp.

 
    105,000     

5.13%, 04/01/2024

    107,625   
   

Valero Energy Corp.

 
    1,911,000     

9.38%, 03/15/2019

    2,388,179   
   

WPX Energy, Inc.

 
    95,000     

5.25%, 09/15/2024

    87,637   
     

 

 

 
        42,596,366   
     

 

 

 
            Oil & Gas Services - 0.1%  
   

Plains Exploration & Production Co.

 
    775,000     

6.63%, 05/01/2021

    819,562   
    713,000     

6.88%, 02/15/2023

    766,475   
     

 

 

 
        1,586,037   
     

 

 

 
            Packaging & Containers - 0.0%  
   

Graphic Packaging International, Inc.

 
    535,000     

4.88%, 11/15/2022

    553,725   
     

 

 

 
            Pharmaceuticals - 1.7%  
   

Actavis Funding SCS

 
    7,150,000     

2.35%, 03/12/2018

    7,236,115   
    6,150,000     

3.00%, 03/12/2020

    6,254,734   
    3,905,000     

3.80%, 03/15/2025

    3,947,080   
    145,000     

4.75%, 03/15/2045

    146,586   
   

Bayer US Finance LLC

 
    2,725,000     

3.00%, 10/08/2021 (1)

    2,811,489   
   

Cardinal Health, Inc.

 
    3,560,000     

3.50%, 11/15/2024

    3,637,786   
   

EMD Finance LLC

 
    2,240,000     

2.95%, 03/19/2022 (1)

    2,272,679   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Pharmaceuticals - 1.7% - (continued)  
   

Merck & Co., Inc.

 
  $        5,405,000     

0.63%, 02/10/2020 (2)

  $ 5,436,738   
   

Perrigo Co. Ltd.

 
    1,125,000     

1.30%, 11/08/2016

    1,123,026   
     

 

 

 
        32,866,233   
     

 

 

 
            Pipelines - 1.2%  
   

Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp.

 
    210,000     

6.25%, 04/01/2023 (1)

    219,450   
   

DCP Midstream Operating L.P.

 
    110,000     

4.95%, 04/01/2022

    109,374   
    100,000     

5.60%, 04/01/2044

    86,693   
   

Energy Transfer Equity L.P.

 
    3,975,000     

5.95%, 10/01/2043

    4,308,848   
    1,138,000     

7.50%, 10/15/2020

    1,280,250   
   

Kinder Morgan Energy Partners L.P.

 
    2,070,000     

5.50%, 03/01/2044

    2,081,484   
   

Kinder Morgan, Inc.

 
    665,000     

3.05%, 12/01/2019

    671,612   
    1,460,000     

4.30%, 06/01/2025

    1,480,374   
    2,500,000     

5.05%, 02/15/2046

    2,372,583   
   

MarkWest Energy Partners L.P.

 
    235,000     

4.88%, 12/01/2024

    243,084   
    235,000     

6.75%, 11/01/2020

    245,575   
   

Sunoco Logistics Partners Operations L.P.

 
    1,355,000     

4.25%, 04/01/2024

    1,390,481   
   

Tesoro Logistics L.P.

 
    320,000     

5.50%, 10/15/2019 (1)

    338,400   
    480,000     

6.25%, 10/15/2022 (1)

    509,400   
   

Williams Partners L.P.

 
    4,275,000     

3.60%, 03/15/2022

    4,278,129   
    1,000,000     

3.90%, 01/15/2025

    985,199   
    2,200,000     

4.30%, 03/04/2024

    2,246,578   
     

 

 

 
        22,847,514   
     

 

 

 
            Real Estate - 0.6%  
   

Falls at Highpoint

 
    4,220,000     

2.97%, 07/01/2030

    4,223,627   
   

ProLogis L.P.

 
    4,260,000     

3.35%, 02/01/2021

    4,408,593   
   

West Oaks - Morgan Communities

 
    3,225,000     

2.97%, 06/01/2027

    3,273,375   
     

 

 

 
        11,905,595   
     

 

 

 
            Real Estate Investment Trusts - 1.3%  
   

American Tower Corp.

 
    2,160,000     

3.40%, 02/15/2019

    2,238,093   
    1,125,000     

4.50%, 01/15/2018

    1,203,786   
   

Brandywine Operating Partnership L.P.

 
    2,400,000     

3.95%, 02/15/2023

    2,426,354   
   

Duke Realty L.P.

 
    1,625,000     

3.63%, 04/15/2023

    1,652,258   
    780,000     

3.75%, 12/01/2024

    798,157   
   

HCP, Inc.

 
    1,605,000     

4.25%, 11/15/2023

    1,673,792   
   

Health Care REIT, Inc.

 
    2,950,000     

4.50%, 01/15/2024

    3,155,234   
   

Kimco Realty Corp.

 
    2,975,000     

3.13%, 06/01/2023

    2,939,184   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  147  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Real Estate Investment Trusts - 1.3% - (continued)  
   

Liberty Property L.P.

 
$          950,000     

3.38%, 06/15/2023

  $ 935,986   
    860,000     

4.13%, 06/15/2022

    894,355   
   

Realty Income Corp.

 
    1,865,000     

3.25%, 10/15/2022

    1,861,815   
   

UDR, Inc.

 
    785,000     

3.70%, 10/01/2020

    826,703   
   

Ventas Realty L.P.

 
    1,520,000     

2.70%, 04/01/2020

    1,536,454   
    1,875,000     

3.25%, 08/15/2022

    1,870,800   
     

 

 

 
        24,012,971   
     

 

 

 
            Retail - 0.5%  
   

CVS Health Corp.

 
    3,072,823     

8.35%, 07/10/2031 (1)

    4,172,915   
   

Family Tree Escrow LLC

 
    270,000     

5.75%, 03/01/2023 (1)

    283,500   
   

Group 1 Automotive, Inc.

 
    640,000     

5.00%, 06/01/2022 (1)

    643,200   
   

Home Depot, Inc.

 
    260,000     

4.20%, 04/01/2043

    275,057   
    1,670,000     

4.40%, 04/01/2021

    1,885,458   
   

Wal-Mart Stores, Inc.

 
    1,400,000     

4.30%, 04/22/2044

    1,508,173   
     

 

 

 
        8,768,303   
     

 

 

 
            Savings & Loans - 0.2%  
   

Nationwide Building Society

 
    710,000     

2.35%, 01/21/2020 (1)

    711,890   
  GBP        2,480,000     

6.88%, 06/20/2019 (5)(6)

    3,825,833   
     

 

 

 
        4,537,723   
     

 

 

 
            Semiconductors - 0.1%  
   

Sensata Technologies B.V.

 
  $        255,000     

5.00%, 10/01/2025 (1)

    263,287   
   

TSMC Global Ltd.

 
    2,265,000     

1.63%, 04/03/2018 (1)

    2,240,212   
     

 

 

 
        2,503,499   
     

 

 

 
            Software - 0.6%  
   

Activision Blizzard, Inc.

 
    1,570,000     

5.63%, 09/15/2021 (1)

    1,677,937   
   

Audatex North America, Inc.

 
    825,000     

6.00%, 06/15/2021 (1)

    852,068   
    40,000     

6.13%, 11/01/2023 (1)

    41,700   
   

First Data Corp.

 
    112,000     

6.75%, 11/01/2020 (1)

    119,280   
   

Microsoft Corp.

 
    2,735,000     

2.38%, 02/12/2022

    2,730,222   
   

Open Text Corp.

 
    170,000     

5.63%, 01/15/2023 (1)

    176,375   
   

Oracle Corp.

 
    4,900,000     

2.50%, 05/15/2022

    4,869,983   
     

 

 

 
        10,467,565   
     

 

 

 
            Telecommunications - 1.8%  
   

America Movil S.A.B. de C.V.

 
  MXN        27,100,000     

7.13%, 12/09/2024

    1,749,789   
   

AT&T, Inc.

 
  $        1,420,000     

2.45%, 06/30/2020 (3)

    1,418,408   
    1,325,000     

3.00%, 06/30/2022 (3)

    1,316,381   
    835,000     

4.50%, 05/15/2035 (3)

    817,637   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 32.6% - (continued)  
            Telecommunications - 1.8% - (continued)  
  $        1,860,000     

4.75%, 05/15/2046 (3)

  $ 1,818,403   
    1,450,000     

4.80%, 06/15/2044

    1,429,625   
    270,000     

5.50%, 02/01/2018

    297,383   
    155,000     

5.80%, 02/15/2019

    175,220   
   

Inmarsat Finance plc

 
    385,000     

4.88%, 05/15/2022 (1)

    386,925   
   

Sprint Communications, Inc.

 
    1,055,000     

7.00%, 03/01/2020 (1)

    1,167,094   
    862,000     

9.00%, 11/15/2018 (1)

    980,792   
   

T-Mobile USA, Inc.

 
    1,035,000     

6.46%, 04/28/2019

    1,068,637   
    425,000     

6.63%, 04/28/2021

    448,375   
   

Verizon Communications, Inc.

 
    2,656,000     

2.63%, 02/21/2020

    2,686,154   
    310,000     

3.85%, 11/01/2042

    277,016   
    4,236,000     

4.27%, 01/15/2036 (1)

    4,073,325   
    1,785,000     

4.40%, 11/01/2034

    1,752,736   
    2,629,000     

4.52%, 09/15/2048 (1)

    2,488,780   
    6,389,000     

4.67%, 03/15/2055 (1)

    5,980,334   
    1,620,000     

4.86%, 08/21/2046

    1,633,261   
    640,000     

5.01%, 08/21/2054

    631,966   
   

VimpelCom Holdings B.V.

 
    1,810,000     

5.95%, 02/13/2023 (1)

    1,647,100   
   

Wind Acquisition Finance S.A.

 
    540,000     

4.75%, 07/15/2020 (1)

    540,000   
     

 

 

 
        34,785,341   
     

 

 

 
            Transportation - 0.7%  
   

Canadian Pacific Railway Co.

 
    725,000     

9.45%, 08/01/2021

    992,052   
   

FedEx Corp.

 
    405,000     

3.20%, 02/01/2025

    404,448   
    660,000     

4.10%, 02/01/2045

    631,429   
   

Kansas City Southern de Mexico S.A. de C.V.

 
    3,850,000     

3.00%, 05/15/2023

    3,778,209   
   

Kazakhstan Temir Zholy Finance B.V.

 
    1,345,000     

6.95%, 07/10/2042

    1,371,900   
   

Penske Truck Leasing Co.

 
    565,000     

2.50%, 06/15/2019 (1)

    564,715   
    3,700,000     

2.88%, 07/17/2018 (1)

    3,780,874   
    915,000     

4.88%, 07/11/2022 (1)

    983,672   
   

Ryder System, Inc.

 
    1,095,000     

2.55%, 06/01/2019

    1,106,937   
     

 

 

 
        13,614,236   
     

 

 

 
   

Total Corporate Bonds
(cost $607,418,459)

  $ 615,742,986   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 2.7%  
            Brazil - 0.6%  
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        8,649,690     

6.00%, 08/15/2016 (7)

  $ 2,846,113   
    12,957,503     

6.00%, 05/15/2019 (7)

    4,276,021   
   

Brazilian Government International Bond

 
  $        3,275,000     

4.88%, 01/22/2021

    3,499,337   
     

 

 

 
        10,621,471   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

148

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 2.7% - (continued)  
            Colombia - 0.1%  
   

Colombian TES

 
  COP        4,214,948,731     

3.00%, 03/25/2033 (7)

  $ 1,560,709   
    2,211,333,698     

3.50%, 03/10/2021 (7)

    958,917   
     

 

 

 
        2,519,626   
     

 

 

 
            Costa Rica - 0.0%  
   

Costa Rica Government International Bond

 
  CRC        487,950,000     

9.20%, 03/27/2019 (1)

    926,271   
     

 

 

 
            Dominican Republic - 0.1%  
   

Dominican Republic International Bond

 
  $        1,800,000     

5.50%, 01/27/2025 (1)

    1,858,500   
     

 

 

 
            Gabon - 0.1%  
   

Gabonese Republic

 
    1,895,000     

6.38%, 12/12/2024 (6)

    1,913,002   
     

 

 

 
            Indonesia - 0.1%  
   

Indonesia Treasury Bond

 
  IDR        29,000,000,000     

8.38%, 03/15/2024

    2,332,305   
     

 

 

 
            Mexico - 0.8%  
   

Mexican Bonos

  

  MXN        82,016,700     

5.00%, 12/11/2019

    5,293,739   
   

Mexican Udibonos

 
    38,864,842     

4.00%, 11/15/2040

    2,782,069   
   

Mexico Government International Bond

 
  EUR        1,085,000     

3.00%, 03/06/2045

    1,233,521   
  $        1,850,000     

4.60%, 01/23/2046

    1,843,062   
    2,350,000     

4.75%, 03/08/2044

    2,412,862   
  GBP        1,045,000     

5.63%, 03/19/2114

    1,671,983   
     

 

 

 
        15,237,236   
     

 

 

 
            Montenegro - 0.1%  
   

Montenegro Government International Bond

 
  EUR        2,130,000     

3.88%, 03/18/2020 (1)

    2,333,553   
     

 

 

 
            Romania - 0.0%  
   

Romania Government Bond

 
  RON        2,880,000     

5.85%, 04/26/2023

    867,602   
     

 

 

 
            Russia - 0.1%  
   

Russian Federal Bond - OFZ

 
  RUB        96,950,000     

7.50%, 02/27/2019 (2)

    1,689,238   
     

 

 

 
            South Africa - 0.2%  
   

South Africa Government Bond

 
  ZAR        20,025,000     

7.75%, 02/28/2023

    1,680,947   
    23,950,000     

8.00%, 01/31/2030

    1,946,802   
     

 

 

 
        3,627,749   
     

 

 

 
            Tunisia - 0.1%  
   

Banque Centrale de Tunisie S.A.

 
  $        1,015,000     

5.75%, 01/30/2025 (1)

    1,047,988   
     

 

 

 
            Turkey - 0.2%  
   

Turkey Government Bond

 
  TRY        4,251,422     

2.50%, 05/04/2016 (7)

    1,586,767   
    4,301,000     

9.00%, 01/27/2016

    1,595,615   
     

 

 

 
        3,182,382   
     

 

 

 
            Uruguay - 0.2%  
   

Uruguay Government International Bond

 
  UYU        77,687,277     

4.25%, 04/05/2027 (7)

    2,919,478   

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 2.7% - (continued)  
            Uruguay - 0.2% - (continued)  
  UYU        18,013,612     

4.38%, 12/15/2028 (7)

  $ 683,593   
     

 

 

 
        3,603,071   
     

 

 

 
   

Total Foreign Government Obligations
(cost $53,362,579)

  $ 51,759,994   
     

 

 

 
     
MUNICIPAL BONDS - 1.0%      
            Development - 0.1%  
   

State of California

  

  $        1,300,000     

7.50%, 04/01/2034

  $ 1,915,901   
    345,000     

7.60%, 11/01/2040

    536,654   
    80,000     

7.63%, 03/01/2040

    122,882   
     

 

 

 
        2,575,437   
     

 

 

 
            General - 0.3%  
   

Chicago Transit Auth.

 
    2,350,000     

6.90%, 12/01/2040

    2,975,969   
   

Puerto Rico Commonwealth Gov’t Employees Retirement System

 
    2,870,000     

6.15%, 07/01/2038

    1,079,866   
    750,000     

6.20%, 07/01/2039

    282,195   
    3,350,000     

6.30%, 07/01/2043

    1,260,438   
    975,000     

6.55%, 07/01/2058

    366,844   
     

 

 

 
        5,965,312   
     

 

 

 
            General Obligation - 0.5%  
   

California State GO, Taxable

 
    4,035,000     

7.55%, 04/01/2039

    6,202,118   
   

Illinois State, GO

 
    985,000     

5.10%, 06/01/2033

    976,726   
   

Municipal Elec Auth Georgia

 
    1,285,000     

6.64%, 04/01/2057

    1,662,674   
     

 

 

 
        8,841,518   
     

 

 

 
            Higher Education - 0.1%  
   

University of California

 
    2,365,000     

4.60%, 05/15/2031

    2,557,133   
     

 

 

 
   

Total Municipal Bonds
(cost $19,829,787)

  $ 19,939,400   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 5.1% (8)  
            Aerospace/Defense - 0.1%  
   

BE Aerospace, Inc.

 
  $        1,017,450     

4.00%, 12/16/2021

  $ 1,027,624   
   

DigitalGlobe, Inc.

 
    357,700     

3.75%, 01/31/2020

    358,444   
     

 

 

 
        1,386,068   
     

 

 

 
            Agriculture - 0.0%  
   

Pinnacle Operating Corp.

 
    390,040     

4.75%, 11/15/2018

    390,528   
     

 

 

 
            Airlines - 0.0%  
   

Delta Air Lines, Inc.

 
    444,763     

3.25%, 10/18/2018

    444,651   
     

 

 

 
            Auto Manufacturers - 0.1%  
   

Chrysler Group LLC

 
    1,079,100     

3.25%, 12/31/2018

    1,079,866   
    1,365,169     

3.50%, 05/24/2017

    1,366,535   
     

 

 

 
        2,446,401   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

149

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Auto Parts & Equipment - 0.1%  
   

Affinia Group Intermediate Holdings, Inc.

 
  $        242,509     

4.75%, 04/27/2020

  $ 242,965   
   

CS Intermediate Holdco 2 LLC

 
    337,450     

4.00%, 04/04/2021

    338,928   
   

MPG Holdco I Inc.

 
    422,554     

4.25%, 10/20/2021

    422,554   
   

Tower Automotive Holdings USA LLC

 
    1,034,687     

4.00%, 04/23/2020

    1,033,394   
     

 

 

 
        2,037,841   
     

 

 

 
            Chemicals - 0.2%  
   

AIlnex (Luxembourg) & Cy SCA

 
    203,716     

4.50%, 10/03/2019

    204,989   
   

AIlnex USA, Inc.

 
    105,698     

4.50%, 10/03/2019

    106,359   
   

Ferro Corp.

 
    348,250     

4.00%, 07/31/2021

    346,944   
   

Hunstman International LLC

 
    342,905     

2.72%, 04/19/2017

    344,191   
   

Ineos U.S. Finance LLC

 
    1,757,715     

3.75%, 05/04/2018

    1,760,141   
    435,000     

4.25%, 03/31/2022

    437,449   
   

Minerals Technologies, Inc.

 
    407,403     

4.00%, 05/07/2021

    409,188   
   

Nexeo Solutions LLC

 
    287,625     

5.00%, 09/08/2017

    283,670   
   

Univar, Inc.

 
    187,556     

5.00%, 06/30/2017

    188,190   
     

 

 

 
        4,081,121   
     

 

 

 
            Coal - 0.1%  
   

American Energy - Marcellus LLC

 
    325,000     

5.25%, 08/04/2020

    267,582   
   

Arch Coal, Inc.

 
    1,824,201     

6.25%, 05/16/2018

    1,356,221   
     

 

 

 
        1,623,803   
     

 

 

 
            Commercial Services - 0.2%  
   

Acosta Holdco, Inc.

 
    482,575     

4.25%, 09/26/2021

    487,801   
   

Interactive Data Corp.

 
    388,068     

4.75%, 05/02/2021

    390,373   
   

Moneygram International, Inc.

 
    421,893     

4.25%, 03/27/2020

    396,579   
   

ServiceMaster Co.

 
    1,124,676     

4.25%, 07/01/2021

    1,127,893   
   

Weight Watchers International, Inc.

 
    1,883,898     

4.00%, 04/02/2020

    1,002,083   
     

 

 

 
        3,404,729   
     

 

 

 
            Distribution/Wholesale - 0.0%  
   

ABC Supply Co., Inc.

 
    418,625     

3.50%, 04/16/2020

    419,412   
     

 

 

 
            Diversified Financial Services - 0.1%  
   

Delos Finance S.a.r.l.

 
    325,000     

3.50%, 03/06/2021

    325,637   
   

Walter Investment Management Corp.

 
    582,265     

4.75%, 12/19/2020

    555,580   
     

 

 

 
        881,217   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Electric - 0.2%  
   

Calpine Corp.

 
  $        1,012,161     

3.25%, 01/31/2022

  $ 1,006,888   
   

Chief Exploration & Development LLC

 
    330,000     

7.50%, 05/12/2021

    312,015   
   

Energy Future Intermediate Holding Co. LLC

 
    280,000     

4.25%, 06/19/2016

    281,518   
   

Seadrill Partners Finco LLC

 
    1,117,051     

4.00%, 02/21/2021

    913,189   
   

Star West Generation LLC

 
    1,278,800     

4.25%, 03/13/2020

    1,283,595   
   

Texas Competitive Electric Holdings Co. LLC

 
    350,000     

4.66%, 10/10/2017 (9)

    216,363   
     

 

 

 
        4,013,568   
     

 

 

 
            Electronics - 0.1%      
   

CDW LLC

 
    1,512,938     

3.25%, 04/29/2020

    1,510,865   
   

Eagle Parent, Inc.

 
    189,528     

4.00%, 05/16/2018

    190,239   
     

 

 

 
        1,701,104   
     

 

 

 
            Entertainment - 0.1%      
   

Scientific Games Corp.

 
    269,325     

6.00%, 10/01/2021

    272,018   
   

Tribune Co.

 
    1,180,215     

4.00%, 12/27/2020

    1,185,385   
     

 

 

 
        1,457,403   
     

 

 

 
            Food - 0.3%      
   

Albertson’s Holdings LLC

 
    1,000,000     

5.50%, 08/25/2021

    1,010,140   
   

Aramark Services, Inc.

 
    1,108,800     

3.25%, 02/24/2021

    1,108,800   
   

Burger King

 
    411,336     

4.50%, 12/12/2021

    415,823   
   

H.J. Heinz Co.

 
    1,493,687     

3.25%, 06/05/2020

    1,495,554   
   

Hostess Brands, Inc.

 
    158,400     

6.75%, 04/09/2020

    161,172   
   

Roundy’s Supermarkets, Inc.

 
    256,186     

5.75%, 03/03/2021

    247,038   
   

U.S. Foods, Inc.

 
    454,096     

4.50%, 03/31/2019

    455,422   
     

 

 

 
        4,893,949   
     

 

 

 
            Food Service - 0.0%      
   

Hearthside Food Solutions

 
    287,825     

4.50%, 06/02/2021

    289,025   
     

 

 

 
            Forest Products & Paper - 0.0%      
   

Wilsonart LLC

 
    312,800     

4.00%, 10/31/2019

    312,278   
     

 

 

 
            Healthcare-Products - 0.0%      
   

Mallinckrodt International Finance S.A.

 
    668,250     

3.25%, 03/19/2021

    667,669   
     

 

 

 
            Healthcare-Services - 0.4%      
   

American Renal Holdings, Inc.

 
    508,055     

4.50%, 09/22/2019

    508,055   
   

Amsurg Corp.

 
    446,625     

3.75%, 07/16/2021

    448,188   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  150  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Healthcare-Services - 0.4% - (continued)  
   

Community Health Systems, Inc.

 
  $        1,300,000     

3.43%, 12/31/2018

  $ 1,306,825   
    602,375     

4.25%, 01/27/2021

    605,947   
   

DaVita HealthCare Partners, Inc.

 
    868,438     

3.50%, 06/24/2021

    870,722   
   

HCA, Inc.

 
    960,375     

3.03%, 05/01/2018

    961,902   
   

Healogics, Inc.

 
    189,050     

5.25%, 07/01/2021

    190,114   
   

IMS Health, Inc.

 
    456,697     

3.50%, 03/17/2021

    456,468   
   

MPH Acquisition Holdings LLC

 
    814,951     

3.75%, 03/31/2021

    814,267   
   

Opal Acquisition, Inc.

 
    823,839     

5.00%, 11/27/2020

    824,869   
   

Ortho-Clinical Diagnostics, Inc.

 
    863,475     

4.75%, 06/30/2021

    860,453   
   

STHI Holding Corp.

 
    159,200     

4.50%, 08/06/2021

    158,934   
   

Surgery Center Holdings, Inc.

 
    259,350     

5.25%, 11/03/2020

    261,295   
     

 

 

 
        8,268,039   
     

 

 

 
            Home Furnishings - 0.0%      
   

Tempur-Pedic International, Inc.

 
    353,496     

3.50%, 03/18/2020

    354,468   
     

 

 

 
            Insurance - 0.3%      
   

Asurion LLC

 
    956,671     

5.00%, 05/24/2019

    961,282   
    715,000     

8.50%, 03/03/2021

    724,653   
   

CGSC of Delaware Holdings Corp.

 
    358,613     

5.00%, 04/16/2020

    340,682   
   

Evertec Group LLC

 
    938,288     

3.50%, 04/17/2020

    930,472   
   

National Financial Partners Corp.

 
    198,351     

4.50%, 07/01/2020

    199,094   
   

Sedgwick Claims Management Services, Inc.

 
    1,731,259     

3.75%, 03/01/2021

    1,719,816   
    580,000     

6.75%, 02/28/2022

    571,845   
   

USI, Inc.

 
    885,773     

4.25%, 12/27/2019

    885,401   
     

 

 

 
        6,333,245   
     

 

 

 
            Internet - 0.1%      
   

Lands’ End, Inc.

 
    316,550     

4.25%, 04/04/2021

    311,406   
   

Zayo Group LLC

 
    970,018     

4.00%, 05/06/2021

    970,018   
     

 

 

 
        1,281,424   
     

 

 

 
            Leisure Time - 0.2%      
   

Aristocrat Leisure Ltd.

 
    571,500     

4.75%, 10/20/2021

    576,215   
   

Delta 2 (LUX) S.a.r.l.

 
    2,125,000     

4.75%, 07/30/2021

    2,126,679   
    755,000     

7.75%, 07/31/2022

    755,709   
     

 

 

 
        3,458,603   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Lodging - 0.2%      
   

Caesars Entertainment Operating Co.

 
  $        2,096,286     

11.00%, 03/01/2017

  $ 1,912,861   
   

Caesars Growth Properties Holdings LLC

 
    332,488     

6.25%, 05/08/2021

    297,078   
   

Hilton Worldwide Finance LLC

 
    593,750     

3.50%, 10/26/2020

    595,757   
   

La Quinta Intermediate Holdings LLC

 
    547,743     

4.00%, 04/14/2021

    549,282   
   

MGM Resorts International

 
    610,938     

3.50%, 12/20/2019

    610,681   
   

Station Casinos LLC

 
    174,448     

4.25%, 03/02/2020

    175,418   
     

 

 

 
        4,141,077   
     

 

 

 
            Machinery-Contruction & Mining - 0.1%  
   

American Rock Salt Holdings LLC

 
    972,650     

4.75%, 05/20/2021

    978,000   
   

Neff Rental LLC

 
    466,557     

7.25%, 06/09/2021

    458,975   
     

 

 

 
        1,436,975   
     

 

 

 
            Machinery-Diversified - 0.1%  
   

Gates Global, Inc.

 
    955,200     

4.25%, 07/05/2021

    955,200   
     

 

 

 
            Media - 0.3%  
   

Advantage Sales & Marketing, Inc.

 
    597,800     

4.25%, 07/23/2021

    599,593   
   

AVSC Holding Corp.

 
    534,600     

4.50%, 01/24/2021

    535,937   
   

Charter Communications Operating LLC

 
    1,355,850     

3.00%, 07/01/2020

    1,351,823   
    486,338     

3.00%, 01/03/2021

    484,917   
   

Media General, Inc.

 
    602,346     

4.25%, 07/31/2020

    606,393   
   

Numericable U.S. LLC

 
    254,478     

4.50%, 05/21/2020

    255,432   
    294,147     

4.50%, 05/21/2020

    295,251   
   

Virgin Media Bristol LLC

 
    1,256,570     

3.50%, 06/07/2020

    1,257,123   
     

 

 

 
        5,386,469   
     

 

 

 
            Metal Fabricate/Hardware - 0.0%  
   

Rexnord LLC

 
    861,875     

4.00%, 08/21/2020

    864,512   
     

 

 

 
            Mining - 0.2%  
   

Ardagh Holdings USA, Inc.

 
    207,900     

4.00%, 12/17/2019

    208,783   
   

FMG Resources August 2006 Pty Ltd.

 
    1,092,168     

3.75%, 06/30/2019

    984,841   
   

Novelis, Inc.

 
    1,754,933     

3.75%, 03/10/2017

    1,757,126   
     

 

 

 
        2,950,750   
     

 

 

 
            Miscellaneous Manufacturing - 0.0%  
   

Husky Injection Molding Systems, Ltd.

 
    152,457     

4.25%, 06/30/2021

    153,378   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

151

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Oil & Gas - 0.1%  
   

Drillships Ocean Ventures, Inc.

 
  $        258,050     

5.50%, 07/25/2021

  $ 223,133   
   

Energy Transfer Equity L.P.

 
    700,000     

4.00%, 12/02/2019

    701,638   
   

Fieldwood Energy LLC

 
    651,734     

3.88%, 09/28/2018

    630,553   
   

Templar Energy LLC

 
    350,000     

8.50%, 11/25/2020

    263,812   
     

 

 

 
        1,819,136   
     

 

 

 
            Packaging & Containers - 0.2%  
   

Berry Plastics Holding Corp.

 
    1,519,000     

3.50%, 02/08/2020

    1,518,712   
   

BWAY Holding Co., Inc.

 
    680,795     

5.50%, 08/14/2020

    687,603   
   

CD&R Millenium Holding Co.

 
    218,900     

4.50%, 07/31/2021

    218,992   
   

Reynolds Group Holdings, Inc.

 
    1,464,724     

4.50%, 12/01/2018

    1,478,639   
   

Signode Industrial Group U.S., Inc.

 
    608,333     

3.75%, 05/01/2021

    607,001   
   

Tekni-Plex, Inc.

 
    115,000     

0.00%, 04/01/2022 (10)

    115,252   
     

 

 

 
        4,626,199   
     

 

 

 
            Pharmaceuticals - 0.1%  
   

Jazz Pharmaceuticals, Inc.

 
    424,625     

3.25%, 06/12/2018

    426,039   
   

Valeant Pharmaceuticals International

 
    1,391,000     

4.00%, 04/01/2022

    1,400,014   
     

 

 

 
        1,826,053   
     

 

 

 
            Pipelines - 0.1%  
   

EP Energy LLC

 
    645,000     

4.50%, 04/30/2019

    644,194   
   

Philadelphia Energy Solutions LLC

 
    362,600     

6.25%, 04/04/2018

    355,348   
     

 

 

 
        999,542   
     

 

 

 
            Real Estate - 0.0%  
   

DTZ U.S. Borrower LLC

 
    610,856     

5.50%, 11/04/2021

    616,458   
    235,000     

9.25%, 11/04/2022

    237,155   
     

 

 

 
        853,613   
     

 

 

 
            Retail - 0.2%  
   

Aristocrat Leisure Ltd.

 
    840,000     

5.00%, 03/11/2022

    849,937   
   

Dollar Tree, Inc.

 
    460,000     

4.25%, 03/09/2022

    465,695   
   

Michaels Stores, Inc.

 
    848,770     

3.75%, 01/28/2020

    850,654   
    600,463     

4.00%, 01/28/2020

    603,380   
   

Neiman Marcus Group, Inc.

 
    682,419     

4.25%, 10/25/2020

    683,757   
   

Rite Aid Corp.

 
    115,000     

5.75%, 08/21/2020

    116,294   
   

Staples, Inc.

 
    695,000     

0.00%, 04/07/2021 (10)

    697,349   
     

 

 

 
        4,267,066   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 5.1% (8) - (continued)  
            Semiconductors - 0.2%  
   

Avago Technologies Cayman Ltd.

 
  $        565,604     

3.75%, 05/06/2021

  $ 567,962   
   

Freescale Semiconductor, Inc.

 
    445,867     

4.25%, 02/28/2020

    447,540   
    592,481     

5.00%, 01/15/2021

    597,298   
   

Lattice Semiconductor Corp.

 
    750,000     

5.25%, 03/10/2021

    753,750   
   

NXP B.V.

 
    703,881     

3.25%, 01/11/2020

    703,219   
     

 

 

 
        3,069,769   
     

 

 

 
            Software - 0.4%  
   

First Data Corp.

 
    3,005,000     

3.68%, 03/24/2018

    3,010,650   
    380,000     

4.18%, 03/24/2021

    382,614   
   

Hyland Software, Inc.

 
    154,440     

4.75%, 02/19/2021

    155,096   
   

Infor U.S., Inc.

 
    1,017,234     

3.75%, 06/03/2020

    1,015,261   
   

Kronos, Inc.

 
    1,219,415     

4.50%, 10/30/2019

    1,225,731   
    314,424     

9.75%, 04/30/2020

    324,347   
   

Verint Systems, Inc.

 
    721,186     

3.50%, 09/06/2019

    721,366   
     

 

 

 
        6,835,065   
     

 

 

 
            Telecommunications - 0.3%  
   

Altice Financing S.A.

 
    465,000     

5.25%, 02/04/2022

    470,231   
   

Level 3 Financing, Inc.

 
    1,090,000     

4.50%, 01/31/2022

    1,090,687   
   

SBA Senior Finance II LLC

 
    1,826,200     

3.25%, 03/24/2021

    1,824,684   
   

Syniverse Holdings, Inc.

 
    455,675     

4.00%, 04/23/2019

    438,446   
   

TransFirst Holding, Inc.

 
    214,463     

5.50%, 11/12/2021

    215,938   
    135,000     

9.00%, 11/12/2022

    135,901   
   

Ziggo Financing Partnership

 
    480,723     

3.50%, 01/15/2022

    480,776   
    309,788     

3.50%, 01/15/2022

    309,822   
    509,489     

3.50%, 01/15/2022

    509,545   
     

 

 

 
        5,476,030   
     

 

 

 
            Trucking & Leasing - 0.0%  
   

Consolidated Container Co.

 
    507,000     

5.00%, 07/03/2019

    505,225   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $97,793,038)

  $ 96,312,605   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 44.9%  
            FHLMC - 8.0%      
  $        29,797,695     

0.52%, 10/25/2020 (2)(4)

  $ 362,638   
    13,808,214     

2.13%, 08/25/2018 (2)(4)

    765,596   
    2,459,278     

3.00%, 08/01/2029

    2,591,164   
    9,640,000     

3.00%, 05/01/2030 (11)

    10,090,369   
    18,900,000     

3.00%, 05/01/2045 (11)

    19,195,313   
    4,600,000     

3.50%, 05/01/2030 (11)

    4,889,081   
    5,136,218     

3.50%, 08/01/2034

    5,406,934   
    25,000,000     

3.50%, 05/01/2045 (11)

    26,153,812   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  152  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 44.9% - (continued)  
            FHLMC - 8.0% - (continued)      
  $        12,500,000     

3.50%, 06/01/2045 (11)

  $ 13,047,120   
    5,978,281     

4.00%, 08/01/2025

    6,429,940   
    4,900,978     

4.00%, 05/01/2042

    5,243,556   
    1,174,774     

4.00%, 08/01/2042

    1,263,497   
    1,854,280     

4.00%, 09/01/2042

    1,994,556   
    646,175     

4.00%, 07/01/2044

    696,004   
    11,000,000     

4.00%, 05/01/2045 (11)

    11,738,031   
    11,100,000     

4.00%, 06/01/2045 (11)

    11,829,126   
    14,400,000     

4.50%, 05/01/2045 (11)

    15,656,400   
    26,070     

5.50%, 11/01/2037

    29,427   
    2,292     

5.50%, 02/01/2038

    2,618   
    6,093     

5.50%, 04/01/2038

    6,872   
    113,513     

5.50%, 04/01/2038

    127,936   
    105,736     

5.50%, 06/01/2038

    119,321   
    6,409,421     

5.50%, 08/01/2038

    7,234,479   
    66,793     

5.50%, 05/01/2040

    75,375   
    243,372     

5.50%, 05/01/2040

    274,518   
    1,337,770     

5.50%, 08/01/2040

    1,509,010   
    1,081,339     

5.50%, 06/01/2041

    1,219,755   
    540,357     

6.00%, 01/01/2023

    598,560   
    111,962     

6.00%, 11/01/2032

    128,907   
    227,229     

6.00%, 11/01/2033

    261,636   
    179,265     

6.00%, 02/01/2034

    206,472   
    293,240     

6.00%, 07/01/2034

    337,636   
    96,125     

6.00%, 08/01/2034

    110,659   
    88,156     

6.00%, 09/01/2034

    101,537   
    24,745     

6.00%, 09/01/2034

    28,348   
    68,777     

6.00%, 09/01/2034

    79,196   
    57,797     

6.00%, 01/01/2035

    66,243   
    84,879     

6.00%, 03/01/2035

    97,730   
    50,520     

6.00%, 05/01/2038

    57,452   
    638,425     

6.00%, 06/01/2038

    726,311   
    200,000     

6.00%, 05/01/2045 (11)

    227,806   
     

 

 

 
        150,980,941   
     

 

 

 
            FNMA - 31.9%  
    3,126,676     

2.14%, 11/01/2022

    3,117,419   
    4,461,047     

2.15%, 10/01/2022

    4,452,445   
    2,140,621     

2.20%, 12/01/2022

    2,142,327   
    1,258,013     

2.28%, 11/01/2022

    1,260,240   
    1,064,887     

2.34%, 11/01/2022

    1,070,574   
    981,386     

2.40%, 10/01/2022

    987,241   
    834,977     

2.42%, 11/01/2022

    840,733   
    60,000     

2.44%, 01/01/2023

    60,191   
    47,676     

2.45%, 08/01/2022

    48,137   
    858,164     

2.47%, 11/01/2022

    866,565   
    17,750,000     

2.50%, 05/01/2030 (11)

    18,196,867   
    575,245     

2.50%, 01/01/2043

    565,512   
    2,751,705     

2.50%, 02/01/2043

    2,705,120   
    585,300     

2.50%, 02/01/2043

    575,427   
    1,661,542     

2.50%, 03/01/2043

    1,633,404   
    862,001     

2.50%, 03/01/2043

    847,409   
    965,253     

2.50%, 04/01/2043

    948,910   
    468,240     

2.50%, 06/01/2043

    460,306   
    989,647     

2.50%, 08/01/2043

    972,898   
    600,000     

2.50%, 05/01/2045 (11)

    589,313   
    1,023,542     

2.64%, 03/01/2027

    1,021,725   
    57,628     

2.66%, 09/01/2022

    58,891   
    510,000     

2.76%, 05/01/2021

    528,623   
    80,332     

2.78%, 04/01/2022

    83,080   
    2,175,000     

2.78%, 02/01/2027

    2,198,934   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 44.9% - (continued)  
            FNMA - 31.9% - (continued)  
  $        2,029,000     

2.78%, 03/01/2027

  $ 2,050,827   
    2,630,000     

2.85%, 02/01/2027

    2,674,693   
    350,000     

2.94%, 06/01/2022

    365,911   
    80,322     

2.98%, 01/01/2022

    84,002   
    4,710,000     

3.00%, 05/01/2030 (11)

    4,928,721   
    114,550,000     

3.00%, 05/01/2045 (11)

    116,557,065   
    1,950,253     

3.10%, 09/01/2024

    2,038,112   
    1,371,000     

3.13%, 02/01/2027

    1,427,159   
    285,000     

3.16%, 12/01/2026

    298,300   
    57,401     

3.20%, 04/01/2022

    60,776   
    1,465,000     

3.21%, 05/01/2023

    1,547,513   
    265,200     

3.24%, 12/01/2026

    279,324   
    493,198     

3.26%, 05/01/2024

    521,453   
    696,184     

3.30%, 12/01/2026

    734,743   
    255,000     

3.34%, 04/01/2024

    271,299   
    576,633     

3.41%, 11/01/2024

    613,266   
    1,956,279     

3.42%, 04/01/2024

    2,092,887   
    99,621     

3.45%, 01/01/2024

    106,606   
    103,187     

3.47%, 01/01/2024

    110,582   
    295,300,000     

3.50%, 05/01/2045 (11)

    309,372,876   
    254,531     

3.67%, 08/01/2023

    277,233   
    70,000     

3.70%, 10/01/2023

    76,365   
    95,000     

3.76%, 03/01/2024

    103,888   
    140,000     

3.86%, 12/01/2025

    153,970   
    70,000     

3.86%, 11/01/2023

    77,438   
    239,857     

3.87%, 10/01/2025

    264,367   
    312,246     

3.89%, 05/01/2030

    343,761   
    325,000     

3.93%, 10/01/2023

    360,451   
    138,317     

3.96%, 05/01/2034

    154,736   
    85,000     

3.97%, 05/01/2029

    94,968   
    1,840,779     

4.00%, 06/01/2025

    1,979,773   
    700,595     

4.00%, 08/01/2042

    754,619   
    3,441,000     

4.00%, 05/01/2045 (11)

    3,676,963   
    12,600,000     

4.00%, 06/01/2045 (11)

    13,446,317   
    685,922     

4.02%, 11/01/2028

    768,698   
    563,436     

4.02%, 11/01/2028

    631,431   
    203,652     

4.06%, 10/01/2028

    228,967   
    961,448     

4.50%, 08/01/2024

    1,034,597   
    91,246     

4.50%, 04/01/2025

    98,137   
    131,939     

4.50%, 08/01/2040

    145,806   
    210,369     

4.50%, 08/01/2040

    231,033   
    126,617     

4.50%, 08/01/2040

    139,033   
    50,600,000     

4.50%, 05/01/2045 (11)

    55,070,976   
    27,749     

5.00%, 04/01/2018

    29,150   
    35,599     

5.00%, 05/01/2018

    37,396   
    30,839     

5.00%, 05/01/2018

    32,395   
    60,688     

5.00%, 06/01/2018

    63,778   
    221,454     

5.00%, 06/01/2018

    232,707   
    33,245     

5.00%, 06/01/2018

    34,923   
    28,394     

5.00%, 06/01/2018

    29,828   
    32,300     

5.00%, 06/01/2018

    33,930   
    45,531     

5.00%, 06/01/2018

    47,830   
    14,067     

5.00%, 06/01/2018

    14,777   
    21,927     

5.00%, 06/01/2018

    23,033   
    29,708     

5.00%, 07/01/2018

    31,208   
    104,026     

5.00%, 12/01/2019

    110,270   
    520,903     

5.00%, 01/01/2022

    562,399   
    808,429     

5.00%, 04/25/2038

    878,763   
    9,700,000     

5.00%, 05/13/2045

    10,803,602   
    15,212     

5.50%, 01/01/2017

    15,950   
    27,437     

5.50%, 11/01/2018

    28,769   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  153  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 44.9% - (continued)  
            FNMA - 31.9% - (continued)  
  $        104,985     

5.50%, 08/01/2019

  $ 112,141   
    112,740     

5.50%, 09/01/2019

    119,828   
    66,657     

5.50%, 10/01/2019

    70,605   
    100,459     

5.50%, 10/01/2019

    106,596   
    26,932     

5.50%, 05/01/2020

    28,843   
    894,742     

5.50%, 06/01/2022

    976,463   
    360,262     

5.50%, 06/01/2033

    409,894   
    1,655     

5.50%, 06/01/2033

    1,871   
    384,788     

5.50%, 07/01/2033

    437,855   
    1,013,775     

5.50%, 07/01/2033

    1,153,662   
    102,117     

5.50%, 08/01/2033

    116,205   
    4,886,012     

5.50%, 11/01/2035

    5,551,136   
    1,324,685     

5.50%, 04/01/2036

    1,497,824   
    2,293,297     

5.50%, 11/01/2037

    2,597,134   
    2,763,388     

5.50%, 06/25/2042 (4)

    444,249   
    2,005     

6.00%, 05/01/2016

    2,016   
    33,922     

6.00%, 05/01/2017

    34,273   
    21,180     

6.00%, 11/01/2031

    24,199   
    261,495     

6.00%, 12/01/2032

    303,089   
    450,540     

6.00%, 03/01/2033

    518,942   
    1,239,526     

6.00%, 02/01/2037

    1,418,935   
    1,021,756     

6.00%, 12/01/2037

    1,169,740   
    411,741     

6.00%, 03/01/2038

    471,274   
    309,462     

6.00%, 10/01/2038

    353,155   
    35,558     

7.00%, 10/01/2037

    37,394   
    2,654     

7.50%, 12/01/2029

    2,831   
    22,589     

7.50%, 03/01/2030

    28,146   
    40,620     

7.50%, 09/01/2031

    46,854   
     

 

 

 
        603,527,795   
     

 

 

 
            GNMA - 5.0%  
    12,400,000     

3.00%, 05/01/2045 (11)

    12,739,063   
    788,490     

3.50%, 05/15/2042

    837,803   
    329,937     

3.50%, 05/15/2042

    350,522   
    2,412,643     

3.50%, 12/15/2042

    2,563,186   
    1,694,413     

3.50%, 03/15/2043

    1,800,151   
    1,767,520     

3.50%, 04/15/2043

    1,873,413   
    887,040     

3.50%, 05/15/2043

    949,006   
    2,875,240     

3.50%, 05/15/2043

    3,035,094   
    2,040,689     

3.50%, 05/15/2043

    2,173,169   
    745,341     

3.50%, 05/15/2043

    793,688   
    4,000,000     

3.50%, 05/01/2045 (11)

    4,215,780   
    600,000     

3.50%, 05/01/2045 (11)

    632,953   
    50,000     

3.50%, 06/01/2045 (11)

    52,578   
    1,000,000     

3.50%, 06/01/2045 (11)

    1,052,266   
    5,775,350     

4.00%, 09/20/2040

    6,217,315   
    747,091     

4.00%, 10/20/2040

    807,185   
    1,218,464     

4.00%, 12/20/2040

    1,313,790   
    10,300,000     

4.00%, 05/01/2045 (11)

    11,125,287   
    6,900,000     

4.00%, 05/01/2045 (11)

    7,373,027   
    96,244     

4.50%, 07/15/2033

    106,749   
    258,269     

4.50%, 05/15/2040

    287,020   
    778,438     

4.50%, 06/15/2041

    864,945   
    117,930     

4.50%, 06/15/2041

    130,423   
    2,154,665     

5.00%, 06/15/2041

    2,409,961   
    2,653,633     

5.00%, 10/16/2041 (4)

    484,437   
    3,604,670     

5.00%, 03/15/2044

    4,042,467   
    5,600,000     

5.00%, 05/01/2045 (11)

    6,260,551   
    369,023     

5.50%, 05/15/2033

    425,326   
    487,805     

5.50%, 05/15/2033

    554,870   
    74,721     

5.50%, 06/15/2035

    85,246   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 44.9% - (continued)  
            GNMA - 5.0% - (continued)  
  $        478,545     

5.50%, 04/15/2038

  $ 540,696   
    3,800,000     

5.50%, 05/01/2045 (11)

    4,291,877   
    85,758     

6.00%, 02/15/2029

    97,651   
    206,847     

6.00%, 11/15/2032

    240,964   
    310,859     

6.00%, 02/15/2033

    357,689   
    86,566     

6.00%, 07/15/2033

    100,687   
    198,120     

6.00%, 10/15/2034

    230,474   
    699,864     

6.00%, 03/15/2036

    813,380   
    74,407     

6.00%, 03/15/2036

    86,546   
    9,269     

6.00%, 05/15/2036

    10,777   
    266,686     

6.00%, 10/15/2036

    309,677   
    122,437     

6.00%, 01/15/2037

    140,616   
    305,876     

6.00%, 02/15/2037

    355,362   
    181,886     

6.00%, 06/15/2037

    209,982   
    285,547     

6.00%, 06/15/2037

    331,900   
    94,146     

6.00%, 06/15/2037

    107,148   
    56,024     

6.00%, 11/15/2037

    63,762   
    168,307     

6.00%, 11/15/2037

    191,552   
    8,449     

6.00%, 11/15/2037

    9,621   
    2,714     

6.00%, 03/15/2038

    3,089   
    86,120     

6.00%, 06/15/2038

    98,983   
    81,095     

6.00%, 06/15/2038

    93,036   
    348,751     

6.00%, 08/15/2038

    397,530   
    6,856     

6.00%, 08/15/2038

    7,803   
    66,261     

6.00%, 08/15/2038

    76,562   
    3,620     

6.00%, 10/15/2038

    4,122   
    286,772     

6.00%, 10/15/2038

    326,827   
    235,955     

6.00%, 11/15/2038

    268,543   
    88,990     

6.00%, 11/15/2038

    101,863   
    114,044     

6.00%, 11/15/2038

    129,795   
    183,915     

6.00%, 12/15/2038

    209,493   
    68,932     

6.00%, 12/15/2038

    79,013   
    110,777     

6.00%, 01/15/2039

    126,077   
    154,938     

6.00%, 01/15/2039

    176,337   
    6,379     

6.00%, 03/15/2039

    7,269   
    1,224,419     

6.00%, 04/15/2039

    1,415,518   
    435,296     

6.00%, 08/15/2039

    495,753   
    124,367     

6.00%, 08/15/2039

    141,614   
    50,932     

6.00%, 09/15/2039

    58,230   
    217,547     

6.00%, 11/15/2039

    247,754   
    57,223     

6.00%, 11/15/2039

    65,126   
    101,327     

6.00%, 03/15/2040

    115,353   
    31,320     

6.00%, 06/15/2040

    35,693   
    386,553     

6.00%, 12/15/2040

    439,941   
    1,322,084     

6.00%, 06/15/2041

    1,504,728   
    2,200,000     

6.00%, 05/01/2045 (11)

    2,502,500   
    15,287     

6.50%, 09/15/2028

    17,632   
    2,442     

6.50%, 09/15/2028

    2,816   
    3,181     

6.50%, 10/15/2028

    3,669   
    5,865     

6.50%, 12/15/2028

    6,765   
    87,947     

6.50%, 05/15/2029

    104,237   
    34,907     

6.50%, 08/15/2031

    40,349   
    89,661     

6.50%, 08/15/2031

    103,417   
    17,846     

6.50%, 09/15/2031

    20,583   
    66,366     

6.50%, 10/15/2031

    76,548   
    125,279     

6.50%, 11/15/2031

    144,500   
    9,264     

6.50%, 11/15/2031

    10,685   
    74,575     

6.50%, 11/15/2031

    86,439   
    60,204     

6.50%, 01/15/2032

    69,827   
    3,801     

6.50%, 01/15/2032

    4,384   
    490     

6.50%, 01/15/2032

    565   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  154  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 44.9% - (continued)  
            GNMA - 5.0% - (continued)  
  $        41,451     

6.50%, 03/15/2032

  $ 49,717   
    8,603     

6.50%, 04/15/2032

    9,923   
    51,915     

6.50%, 07/15/2032

    59,880   
     

 

 

 
        93,988,120   
     

 

 

 
   

Total U.S. Government Agencies
(cost $845,110,884)

  $ 848,496,856   
     

 

 

 
     
U.S. GOVERNMENT SECURITIES - 8.9%      
            U.S. Treasury Securities - 8.9%  
            U.S. Treasury Bonds - 7.0%  
   

Treasury Inflation Protected Security

 
  $        67,442,886     

0.25%, 01/15/2025 (7)

  $ 68,306,964   
    16,530,000     

2.50%, 02/15/2045 (12)

    15,703,500   
    13,070,000     

3.00%, 11/15/2044 (12)

    13,753,117   
    10,790,000     

3.13%, 08/15/2044 (12)

    11,620,323   
    16,050,000     

3.38%, 05/15/2044 (12)

    18,093,871   
    3,560,000     

3.63%, 02/15/2044

    4,193,292   
     

 

 

 
        131,671,067   
     

 

 

 
            U.S. Treasury Notes - 1.9%      
    12,740,000     

0.88%, 04/30/2017 (12)

    12,806,681   
    530,000     

1.00%, 09/15/2017

    533,354   
    16,000,000     

1.50%, 12/31/2018 (12)

    16,196,256   
    450,000     

2.25%, 11/15/2024

    458,332   
    775,000     

2.38%, 08/15/2024

    798,250   
    4,700,000     

3.13%, 04/30/2017 (12)(13)

    4,935,000   
     

 

 

 
        35,727,873   
     

 

 

 
   

Total U.S. Government Securities
(cost $164,141,570)

  $ 167,398,940   
     

 

 

 
     
PREFERRED STOCKS - 0.1%      
            Banks - 0.0%  
    469     

U.S. Bancorp Series A

  $ 390,442   
     

 

 

 
            Diversified Financials - 0.1%  
    20,100     

Citigroup Capital

    520,389   
    5,600     

Discover Financial Services Series B

    144,256   
     

 

 

 
        664,645   
     

 

 

 
   

Total Preferred Stocks
(cost $1,031,533)

  $ 1,055,087   
     

 

 

 
   

Total Long-Term Investments
(cost $2,358,519,019)

  $ 2,379,371,815   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 12.9%      
            Other Investment Pools & Funds - 10.5%  
  $        198,797,619     

Federated Prime Obligations Fund

  $ 198,797,619   
     

 

 

 
            U.S. Government Agencies - 2.4%  
   

FHLB

  

    44,500,000     

0.00%, 05/01/2015 (14)

    44,500,000   
     

 

 

 
   

Total Short-Term Investments
(cost $243,297,619)

  $ 243,297,619   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $2,601,816,638)

    138.8   $ 2,622,669,434   
   

Total Purchased Options
(cost $444,618)

    0.0   $ 245,423   
       

 

 

 
   

Total Investments
(cost $2,602,261,256) ^

    138.8   $ 2,622,914,857   
   

Other Assets and Liabilities

    (38.8 )%      (732,856,415
     

 

 

   

 

 

 
   

Total Net Assets

    100.0   $     1,890,058,442   
     

 

 

   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

155

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $2,604,267,469 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 37,923,463   

Unrealized Depreciation

     (19,276,075
  

 

 

 

Net Unrealized Appreciation

   $     18,647,388   
  

 

 

 

 

(1) Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $425,444,234, which represents 22.5% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3) This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $14,779,844 at April 30, 2015.

 

(4) Securities disclosed are interest-only strips.

 

(5)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(6)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $43,816,046, which represents 2.3% of total net assets.

 

(7) The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(8) Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(9) The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(10) All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement.

 

(11) Represents or includes a TBA transaction.

 

(12) This security, or a portion of this security, has been pledged as collateral in connection with OTC swap contracts

 

(13) This security, or a portion of this security, has been pledged as collateral in connection with futures contracts.

 

(14) The interest rate disclosed for this holding is the effective yield on the date of the acquisition.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
     Market
Value *
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                       

Calls

                       

BRL Call/USD Put

   BOA      2.97 BRL per USD         06/02/15         BRL         6,765,000       $ 31,084       $ 52,548       $ (21,464

BRL Call/USD Put

   JPM      2.42 BRL per USD         09/28/15         BRL         10,500,000         1,450         74,774         (73,324

CNY Call/USD Put

   DEUT      6.15 CNY per USD         05/07/15         CNY         146,492,500         10,557         50,022         (39,465

 

The accompanying notes are an integral part of these financial statements.

 

 

  156  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Option Contracts Outstanding at April 30, 2015 - (continued)  

Description

   Counter-
party
   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
     Market
Value *
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

EUR Call/USD Put

   BOA      1.14 EUR per USD         08/20/15         EUR         1,600,000       $ 30,472       $ 51,379       $ (20,907

EUR Call/USD Put

   BNP      1.12 EUR per USD         06/02/15         EUR         2,220,000         48,538         35,397         13,141   

HKD Call/USD Put

   GSC      7.75 HKD per USD         03/01/16         HKD         39,540,000         16,723         17,286         (563

MYR Call/USD Put

   GSC      3.65 MYR per USD         05/22/15         MYR         6,440,000         41,352         38,205         3,147   

RUB Call/USD Put

   BOA      51.49 RUB per USD         05/14/15         RUB         28,000,000         13,304         18,027         (4,723

RUB Call/USD Put

   GSC      36.97 RUB per USD         09/02/15         RUB         159,000,000         4,711         57,477         (52,766

TRY Call/USD Put

   BOA      2.72 TRY per USD         06/29/15         TRY         4,940,000         47,232         49,503         (2,271
              

 

 

    

 

 

    

 

 

    

 

 

 

Total Calls

                 405,497,500       $ 245,423       $ 444,618       $ (199,195
              

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased option contracts

                 405,497,500       $     245,423       $     444,618       $     (199,195
              

 

 

    

 

 

    

 

 

    

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
     Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

  

                 

Calls

                    

Interest Rate Swaption USD

     BNP         2.67% USD         04/14/25         USD         (5,225,000   $     (698,757     (765,985   $ 67,228   
              

 

 

   

 

 

   

 

 

   

 

 

 

Written swaption contracts:

  

                 

Puts

                    

Interest Rate Swaption USD

     BNP         2.67% USD         04/14/25         USD         (5,225,000   $ (783,709     (765,985   $     (17,724
              

 

 

   

 

 

   

 

 

   

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Long Gilt Future

     127         06/26/2015       $ 23,057,572       $ 23,026,896       $ (30,676

U.S. Treasury 5-Year Note Future

     3,244         06/30/2015             389,975,716             389,710,845         (264,871

U.S. Treasury Long Bond Future

     269         06/19/2015         43,828,868         42,930,718         (898,150
              

 

 

 

Total

               $     (1,193,697
              

 

 

 

Short position contracts:

              

90-Day Euro Future

     381         12/14/2015       $ 94,682,478       $ 94,668,975       $ 13,503   

Euro-Bund Future

     65         06/08/2015         11,385,442         11,316,897         68,545   

U.S. Treasury 10-Year Note Future

     3,879         06/19/2015         497,890,936         497,966,625         (75,689

U.S. Treasury 2-Year Note Future

     271         06/30/2015         59,437,478         59,420,985         16,493   

U.S. Treasury CME Ultra Long Term Bond Future

     131         06/19/2015         21,813,924         21,549,500         264,425   
              

 

 

 

Total

               $ 287,277   
              

 

 

 

Total futures contracts

               $ (906,420
              

 

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015  

Description

   Principal
Amount
     Maturity Date      Market Value *      Unrealized
Appreciation/
(Depreciation)
 

FHLMC, 5.00%

   $ 1,900,000         05/01/2045       $ 2,110,566       $ 2,294   

FHLMC, 5.50%

     1,800,000         05/01/2045         2,031,315         (6,034

FNMA, 3.00%

     12,800,000         05/01/2030         13,394,400         7,600   

FNMA, 3.50%

     5,200,000         05/01/2030         5,520,125         2,438   

FNMA, 4.00%

     18,300,000         05/01/2045         19,554,904             (11,076

FNMA, 4.50%

     20,700,000         06/01/2045         22,503,160         (33,957

FNMA, 5.50%

     19,600,000         05/01/2045         22,189,111         (28,861

 

The accompanying notes are an integral part of these financial statements.

 

 

  157  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015 - (continued)  

Description

   Principal
Amount
     Maturity Date      Market Value *      Unrealized
Appreciation/
(Depreciation)
 

FNMA, 6.00%

   $ 2,000,000         05/01/2045       $ 2,285,608       $ (2,874

GNMA, 3.00%

     1,200,000         05/01/2045         1,233,820         5,367   

GNMA, 3.50%

     4,000,000         05/01/2045         4,215,780         3,361   

GNMA, 4.00%

     1,100,000         06/01/2045         1,185,989         (1,083

GNMA, 4.00%

     10,300,000         05/01/2045         11,006,113         (22,128

GNMA, 4.50%

     1,650,000         05/01/2045         1,817,901         (323

GNMA, 4.50%

     1,300,000         05/01/2045         1,408,723         (51
        

 

 

    

 

 

 

Total

         $     110,457,515       $ (85,327
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (5.8)% of total net assets.

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

                 

Buy protection:

                 

ABX.HE.AA.06-1

  BCLY     USD        119,696      (0.32%)     07/25/45      $ 67,629      $      $ 24,598      $ (43,031

ABX.HE.AA.06-1

  BCLY     USD        133,507      (0.32%)     07/25/45        75,433               27,436        (47,997

ABX.HE.AA.06-1

  BCLY     USD        829,588      (0.32%)     07/25/45        251,987               170,483        (81,504

ABX.HE.AAA.06-1

  CSI     USD        75,610      (0.18%)     07/25/45        1,134               1,435        301   

ABX.HE.AAA.06-1

  JPM     USD        2,749      (0.18%)     07/25/45        68               52        (16

ABX.HE.AAA.06-1

  JPM     USD        2,749      (0.18%)     07/25/45        69               52        (17

ABX.HE.AAA.06-1

  JPM     USD        8,248      (0.18%)     07/25/45        321               157        (164

ABX.HE.AAA.06-1

  MSC     USD        16,497      (0.18%)     07/25/45        536               313        (223

ABX.HE.AAA.06-1

  BCLY     USD        103,104      (0.18%)     07/25/45        9,602               1,957        (7,645

ABX.HE.AAA.06-1

  GSC     USD        141,596      (0.18%)     07/25/45        12,744               2,665        (10,079

ABX.HE.AAA.06-1

  BCLY     USD        112,727      (0.18%)     07/25/45        12,986               2,139        (10,847

ABX.HE.AAA.06-2

  MSC     USD             (0.11%)     05/25/46        47               (84     (131

ABX.HE.AAA.06-2

  JPM     USD        1,824,413      (0.11%)     05/25/46        360,969               346,419        (14,550

ABX.HE.AAA.06-2

  BOA     USD        3,094,347      (0.11%)     05/25/46        639,005               587,575        (51,430

ABX.HE.AAA.07

  MSC     USD        441,349      (0.09%)     08/25/37        112,111               104,589        (7,522

ABX.HE.AAA.07-1

  JPM     USD        65,385      (0.09%)     08/25/37        16,534               15,494        (1,040

ABX.HE.AAA.07-1

  JPM     USD        61,299      (0.09%)     08/25/37        15,791               14,526        (1,265

ABX.HE.AAA.07-1

  GSC     USD        204,328      (0.09%)     08/25/37        50,487               48,420        (2,067

ABX.HE.AAA.07-1

  JPM     USD        65,385      (0.09%)     08/25/37        18,672               15,495        (3,177

ABX.HE.AAA.07-1

  MSC     USD        1,193,278      (0.09%)     08/25/37        287,821               282,776        (5,045

ABX.HE.AAA.07-1

  GSC     USD        894,958      (0.09%)     08/25/37        222,272               212,082        (10,190

ABX.HE.AAA.07-1

  CSI     USD        1,941,119      (0.09%)     08/25/37        554,323               459,994        (94,329

ABX.HE.PENAAA.06-2

  JPM     USD        302,300      (0.11%)     05/25/46        41,045               36,745        (4,300

ABX.HE.PENAAA.06-2

  BCLY     USD        112,322      (0.11%)     05/25/46        18,393               13,653        (4,740

ABX.HE.PENAAA.06-2

  JPM     USD        954,048      (0.11%)     05/25/46        225,096               115,967        (109,129

ABX.HE.PENAAA.06-2

  MSC     USD        952,661      (0.11%)     05/25/46        231,020               115,797        (115,223

ABX.HE.PENAAA.06-2

  JPM     USD        997,036      (0.11%)     05/25/46        261,722               121,192        (140,530

ABX.HE.PENAAA.06-2

  GSC     USD        1,817,961      (0.11%)     05/25/46        454,490               220,976        (233,514

CDX.EM.22

  CBK     USD        11,275,000      (1.00%)     12/20/19            1,315,231               1,201,811        (113,420

CDX.EM.22

  CBK     USD        27,746,000      (1.00%)     12/20/19        3,257,279                   2,957,469            (299,810

CMBX.NA.A.7

  JPM     USD        1,520,000      (2.00%)     01/17/47                   (31,492     (6,929     24,563   

CMBX.NA.A.7

  JPM     USD        30,000      (2.00%)     01/17/47               (58     (137     (79

CMBX.NA.A.7

  JPM     USD        35,000      (2.00%)     01/17/47        501               (160     (661

CMBX.NA.AA.2

  CSI     USD        1,480,266      (0.15%)     03/15/49        454,467               473,648        19,181   

CMBX.NA.AA.2

  CSI     USD        188,569      (0.15%)     03/15/49        58,217               60,337        2,120   

CMBX.NA.AA.2

  CSI     USD        146,141      (0.15%)     03/15/49        46,332               46,761        429   

CMBX.NA.AA.2

  CSI     USD        155,569      (0.15%)     03/15/49        50,082               49,778        (304

CMBX.NA.AA.2

  MSC     USD        65,999      (0.15%)     03/15/49        22,716               21,118        (1,598

 

The accompanying notes are an integral part of these financial statements.

 

 

  158  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

CMBX.NA.AA.2

  GSC     USD        598,706      (0.15%)     03/15/49      $ 208,286      $      $ 191,571      $ (16,715

CMBX.NA.AA.2

  BOA     USD        1,560,408      (0.15%)     03/15/49        591,500               499,292        (92,208

CMBX.NA.AA.2

  BOA     USD        1,876,261      (0.15%)     03/15/49        711,229               600,357        (110,872

CMBX.NA.AA.7

  CSI     USD        1,185,000      (1.50%)     01/17/47               (10,821     (4,041     6,780   

CMBX.NA.AA.7

  MSC     USD        760,000      (1.50%)     01/17/47               (9,006     (2,591     6,415   

CMBX.NA.AA.7

  CSI     USD        700,000      (1.50%)     01/17/47               (7,739     (2,387     5,352   

CMBX.NA.AA.7

  MSC     USD        805,000      (1.50%)     01/17/47               (6,976     (2,745     4,231   

CMBX.NA.AA.7

  BOA     USD        350,000      (1.50%)     01/17/47               (3,869     (1,193     2,676   

CMBX.NA.AA.7

  CSI     USD        180,000      (1.50%)     01/17/47               (1,110     (613     497   

CMBX.NA.AA.7

  CSI     USD        220,000      (1.50%)     01/17/47               (53     (750     (697

CMBX.NA.AA.7

  CSI     USD        230,000      (1.50%)     01/17/47        3,451               (784     (4,235

CMBX.NA.AA.7

  CSI     USD        1,170,000      (1.50%)     01/17/47        4,623               (3,990     (8,613

CMBX.NA.AA.7

  CSI     USD        1,185,000      (1.50%)     01/17/47        5,530               (4,040     (9,570

CMBX.NA.AA.7

  CSI     USD        1,185,000      (1.50%)     01/17/47        6,437               (4,041     (10,478

CMBX.NA.AJ.1

  JPM     USD        65,000      (0.84%)     10/12/52        1,258               984        (274

CMBX.NA.AJ.1

  JPM     USD        70,000      (0.84%)     10/12/52        2,033               1,060        (973

CMBX.NA.AJ.1

  DEUT     USD        165,000      (0.84%)     10/12/52        3,634               2,499        (1,135

CMBX.NA.AJ.1

  JPM     USD        95,000      (0.84%)     10/12/52        4,181               1,439        (2,742

CMBX.NA.AJ.1

  JPM     USD        175,000      (0.84%)     10/12/52        12,365               2,651        (9,714

CMBX.NA.AJ.1

  DEUT     USD        655,000      (0.84%)     10/12/52        45,850               9,922        (35,928

CMBX.NA.AJ.1

  MSC     USD        1,170,000      (0.84%)     10/12/52        81,900               17,723        (64,177

CMBX.NA.AJ.2

  GSC     USD        3,019,642      (1.09%)     03/15/49        224,627               250,837        26,210   

CMBX.NA.AJ.2

  GSC     USD        803,255      (1.09%)     03/15/49        59,753               66,725        6,972   

CMBX.NA.AJ.2

  CSI     USD        1,750,302      (1.09%)     03/15/49        142,596               145,394        2,798   

CMBX.NA.AJ.2

  DEUT     USD        158,668      (1.09%)     03/15/49        12,138               13,180        1,042   

CMBX.NA.AJ.2

  JPM     USD        64,459      (1.09%)     03/15/49        5,419               5,354        (65

CMBX.NA.AJ.2

  DEUT     USD        64,459      (1.09%)     03/15/49        5,669               5,355        (314

CMBX.NA.AJ.2

  DEUT     USD        1,978,386      (1.09%)     03/15/49        176,956               164,341        (12,615

CMBX.NA.AJ.3

  GSC     USD        922,017      (1.47%)     12/13/49        178,846               169,408        (9,438

CMBX.NA.AJ.4

  GSC     USD        1,065,782      (0.96%)     02/17/51        180,536               194,801        14,265   

CMBX.NA.AJ.4

  MSC     USD        1,250,052      (0.96%)     02/17/51        216,602               228,481        11,879   

CMBX.NA.AJ.4

  GSC     USD        722,141      (0.96%)     02/17/51        121,388               131,991        10,603   

CMBX.NA.AJ.4

  GSC     USD        712,181      (0.96%)     02/17/51        122,835               130,171        7,336   

CMBX.NA.AJ.4

  CSI     USD        732,101      (0.96%)     02/17/51        128,107               133,812        5,705   

CMBX.NA.AJ.4

  CSI     USD        179,290      (0.96%)     02/17/51        34,257               32,770        (1,487

CMBX.NA.AJ.4

  GSC     USD        672,338      (0.96%)     02/17/51        124,435               122,889        (1,546

CMBX.NA.AJ.4

  JPM     USD        383,482      (0.96%)     02/17/51        72,061               70,092        (1,969

CMBX.NA.AJ.4

  MSC     USD        328,699      (0.96%)     02/17/51        62,439               60,079        (2,360

CMBX.NA.AJ.4

  CSI     USD        1,419,382      (0.96%)     02/17/51        262,704               259,431        (3,273

CMBX.NA.AJ.4

  JPM     USD        258,975      (0.96%)     02/17/51        50,993               47,335        (3,658

CMBX.NA.AJ.4

  CBK     USD        1,020,959      (0.96%)     02/17/51        190,821               186,608        (4,213

CMBX.NA.AJ.4

  JPM     USD        308,778      (0.96%)     02/17/51        60,825               56,438        (4,387

CMBX.NA.AJ.4

  JPM     USD        89,645      (0.96%)     02/17/51        21,828               16,385        (5,443

CMBX.NA.AJ.4

  CSI     USD        547,832      (0.96%)     02/17/51        108,037               100,131        (7,906

CMBX.NA.AJ.4

  DEUT     USD        1,284,914      (0.96%)     02/17/51        247,314               234,854        (12,460

CMBX.NA.AJ.4

  MSC     USD        747,043      (0.96%)     02/17/51        149,109               136,543        (12,566

CMBX.NA.AJ.4

  MSC     USD        752,023      (0.96%)     02/17/51        150,091               137,452        (12,639

CMBX.NA.AJ.4

  MSC     USD        1,867,608      (0.96%)     02/17/51        730,279               341,356        (388,923

CMBX.NA.AM.2

  JPM     USD        265,000      (0.50%)     03/15/49        1,938               1,188        (750

CMBX.NA.AM.2

  JPM     USD        275,000      (0.50%)     03/15/49        4,320               1,234        (3,086

CMBX.NA.AM.2

  JPM     USD        650,000      (0.50%)     03/15/49        8,329               2,915        (5,414

CMBX.NA.AM.2

  JPM     USD        385,000      (0.50%)     03/15/49        12,518               1,727        (10,791

CMBX.NA.AM.2

  MSC     USD        705,000      (0.50%)     03/15/49        34,796               3,162        (31,634

CMBX.NA.AM.2

  DEUT     USD        3,645,000      (0.50%)     03/15/49        209,588               16,350        (193,238

CMBX.NA.AM.2

  CSI     USD        3,645,000      (0.50%)     03/15/49        223,256               16,349        (206,907

CMBX.NA.AM.4

  CSI     USD        40,000      (0.50%)     02/17/51        1,128               898        (230

CMBX.NA.AM.4

  JPM     USD        40,000      (0.50%)     02/17/51        1,921               897        (1,024

CMBX.NA.AM.4

  JPM     USD        100,000      (0.50%)     02/17/51        4,180               2,244        (1,936

 

The accompanying notes are an integral part of these financial statements.

 

 

  159  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

CMBX.NA.AM.4

  JPM     USD        60,000      (0.50%)     02/17/51      $ 4,802      $      $ 1,347      $ (3,455

CMBX.NA.AM.4

  MSC     USD        105,000      (0.50%)     02/17/51        10,579               2,356        (8,223

CMBX.NA.AM.4

  MSC     USD        1,105,000      (0.50%)     02/17/51        247,644               24,798        (222,846

CMBX.NA.AS.6

  CSI     USD        100,000      (1.00%)     05/11/63        822               (49     (871

CMBX.NA.AS.6

  CSI     USD        245,000      (1.00%)     05/11/63        1,048               (120     (1,168

CMBX.NA.AS.6

  CSI     USD        105,000      (1.00%)     05/11/63        1,647               (51     (1,698

CMBX.NA.AS.6

  CSI     USD        3,165,000      (1.00%)     05/11/63        41,736               (1,557     (43,293

CMBX.NA.AS.7

  CSI     USD        120,000      (1.00%)     01/17/47        975               814        (161

CMBX.NA.AS.7

  CSI     USD        50,000      (1.00%)     01/17/47        803               339        (464

CMBX.NA.AS.7

  CSI     USD        50,000      (1.00%)     01/17/47        1,158               339        (819

CMBX.NA.AS.7

  CSI     USD        780,000      (1.00%)     01/17/47        13,534               5,288        (8,246

CMBX.NA.AS.7

  CBK     USD        1,445,000      (1.00%)     01/17/47        33,574               9,797        (23,777

CMBX.NA.AS.7

  CSI     USD        1,560,000      (1.00%)     01/17/47        36,397               10,576        (25,821
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     15,566,767      $     (71,124   $     12,589,976      $     (2,905,667
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

                 

CMBX.NA.A.2

  JPM     USD        24,319      0.25%     03/15/49      $      $ (15,801   $ (15,482   $ 319   

CMBX.NA.A.2

  DEUT     USD        28,331      0.25%     03/15/49               (17,546     (18,036     (490

CMBX.NA.A.2

  BOA     USD        867,371      0.25%     03/15/49                   (494,826         (552,004     (57,178

CMBX.NA.A.8

  BOA     USD        1,175,000      2.00%     10/17/57               (13,324     (15,903     (2,579

CMBX.NA.AAA.6

  UBS     USD        7,225,000      0.50%     05/11/63               (192,487     (96,827     95,660   

CMBX.NA.AAA.6

  DEUT     USD        5,425,000      0.50%     05/11/63               (132,233     (72,705     59,528   

CMBX.NA.AAA.6

  CSI     USD        2,235,000      0.50%     05/11/63               (82,963     (29,953     53,010   

CMBX.NA.AAA.6

  CSI     USD        4,875,000      0.50%     05/11/63               (109,272     (65,333     43,939   

CMBX.NA.AAA.6

  BOA     USD        2,545,000      0.50%     05/11/63               (66,507     (34,108     32,399   

CMBX.NA.AAA.6

  UBS     USD        2,775,000      0.50%     05/11/63               (64,492     (37,190     27,302   

CMBX.NA.AAA.6

  MSC     USD        2,435,000      0.50%     05/11/63               (54,573     (32,633     21,940   

CMBX.NA.AAA.6

  CSI     USD        3,310,000      0.50%     05/11/63               (64,493     (44,360     20,133   

CMBX.NA.AAA.6

  MSC     USD        1,390,000      0.50%     05/11/63               (36,856     (18,628     18,228   

CMBX.NA.AAA.6

  UBS     USD        1,840,000      0.50%     05/11/63               (41,489     (24,659     16,830   

CMBX.NA.AAA.6

  CSI     USD        1,840,000      0.50%     05/11/63               (35,477     (24,659     10,818   

CMBX.NA.AAA.6

  DEUT     USD        1,220,000      0.50%     05/11/63               (26,977     (16,350     10,627   

CMBX.NA.AAA.6

  CSI     USD        855,000      0.50%     05/11/63               (21,007     (11,459     9,548   

CMBX.NA.AAA.6

  CSI     USD        875,000      0.50%     05/11/63               (17,555     (11,727     5,828   

CMBX.NA.AAA.6

  DEUT     USD        2,430,000      0.50%     05/11/63               (36,756     (32,566     4,190   

CMBX.NA.AAA.6

  GSC     USD        130,000      0.50%     05/11/63               (2,792     (1,742     1,050   

CMBX.NA.AAA.7

  CSI     USD        1,455,000      0.50%     01/17/47               (40,858     (34,172     6,686   

CMBX.NA.AAA.7

  CSI     USD        975,000      0.50%     01/17/47               (24,971     (22,899     2,072   

CMBX.NA.AAA.7

  BOA     USD        2,375,000      0.50%     01/17/47               (57,806     (55,781     2,025   

CMBX.NA.AAA.7

  MSC     USD        145,000      0.50%     01/17/47               (4,370     (3,406     964   

CMBX.NA.AAA.8

  CSI     USD        3,800,000      0.50%     10/17/57               (173,848     (134,145     39,703   

CMBX.NA.AAA.8

  MSC     USD        1,210,000      0.50%     10/17/57               (56,035     (42,715     13,320   

CMBX.NA.AAA.8

  BCLY     USD        770,000      0.50%     10/17/57               (35,852     (27,182     8,670   

CMBX.NA.AAA.8

  MSC     USD        340,000      0.50%     10/17/57               (15,796     (12,002     3,794   

CMBX.NA.AAA.8

  MSC     USD        140,000      0.50%     10/17/57               (5,827     (4,942     885   

CMBX.NA.BB.6

  CSI     USD        40,000      5.00%     10/17/57               (2,443     (2,247     196   

CMBX.NA.BB.6

  BOA     USD        1,945,000      5.00%     05/11/63               (18,567     18,743        37,310   

CMBX.NA.BB.6

  CSI     USD        1,280,000      5.00%     05/11/63               (22,960     12,335        35,295   

CMBX.NA.BB.6

  CBK     USD        1,515,000      5.00%     05/11/63               (11,555     14,599        26,154   

CMBX.NA.BB.6

  CSI     USD        1,470,000      5.00%     05/11/63               (9,820     14,165        23,985   

CMBX.NA.BB.6

  CSI     USD        1,520,000      5.00%     05/11/63                      14,647        14,647   

CMBX.NA.BB.6

  CSI     USD        525,000      5.00%     05/11/63        3,057               5,095        2,038   

CMBX.NA.BB.6

  CSI     USD        2,495,000      5.00%     05/11/63        42,405               24,043        (18,362

CMBX.NA.BB.7

  GSC     USD        1,625,000      5.00%     01/17/47               (96,455     (14,193     82,262   

CMBX.NA.BB.7

  CSI     USD        990,000      5.00%     01/17/47               (48,943     (8,647     40,296   

CMBX.NA.BB.7

  CSI     USD        655,000      5.00%     01/17/47               (41,028     (5,721     35,307   

CMBX.NA.BB.7

  CSI     USD        630,000      5.00%     01/17/47               (34,481     (5,502     28,979   

CMBX.NA.BB.7

  BOA     USD        685,000      5.00%     01/17/47               (31,613     (5,982     25,631   

 

The accompanying notes are an integral part of these financial statements.

 

 

  160  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

CMBX.NA.BB.7

  DEUT     USD        290,000      5.00%     01/17/47      $      $ (2,917   $ (2,533   $ 384   

CMBX.NA.BB.7

  CSI     USD        705,000      5.00%     01/17/47        7,179               (6,157     (13,336

CMBX.NA.BB.8

  BOA     USD        1,100,000      5.00%     10/17/57               (79,499     (61,767     17,732   

CMBX.NA.BB.8

  CSI     USD        365,000      5.00%     10/17/57               (26,594     (20,496     6,098   

CMBX.NA.BB.8

  CSI     USD        375,000      5.00%     10/17/57               (23,734     (21,057     2,677   

CMBX.NA.BB.8

  GSC     USD        380,000      5.00%     10/17/57               (20,074     (21,337     (1,263

CMBX.NA.BB.8

  GSC     USD        755,000      5.00%     10/17/57               (40,452     (42,500     (2,048

CMBX.NA.BBB.7

  CSI     USD        1,160,000      3.00%     01/17/47               (19,880     (9,741     10,139   

CMBX.NA.BBB.8

  CSI     USD        1,285,000      3.00%     10/17/57               (68,872     (59,027     9,845   

PrimeX.ARM.2

  MSC     USD        2,053,649      4.58%     12/25/37               (150,712     86,788        237,500   

PrimeX.ARM.2

  JPM     USD        171,751      4.58%     12/25/37        5,472               7,259        1,787   

PrimeX.ARM.2

  JPM     USD        72,381      4.58%     12/25/37        2,189               3,059        870   

PrimeX.ARM.2

  JPM     USD        69,927      4.58%     12/25/37        2,140               2,947        807   

PrimeX.ARM.2

  JPM     USD        55,206      4.58%     12/25/37        1,537               2,326        789   

PrimeX.ARM.2

  MSC     USD        101,824      4.58%     12/25/37        3,402               3,809        407   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 67,381      $ (2,693,388   $ (1,570,660   $ 1,055,347   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

            $ 15,634,148      $ (2,764,512   $ 11,019,316      $ (1,850,320
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Buy protection:

                 

Brazil (Federative Republic of)

  GSC     USD        1,155,000     (1.00%) /2.68%     12/20/19      $ 46,354      $      $ 59,548      $ 13,194   

Brazil (Federative Republic of)

  JPM     USD        570,000     (1.00%) /2.69%     12/20/19        26,834               29,372        2,538   

Darden Restaurants, Inc.

  BCLY     USD             (1.00%) /0.88%     12/20/19        60                      (60

Russia (Federation of)

  GSC     USD        1,200,000      (1.00%) /4.07%     12/20/19        241,555               124,061        (117,494
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 314,803      $      $ 212,981      $ (101,822
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Sell protection:

                 

Penerbangan Malaysia Bhd

  JPM     USD        960,000      1.00% /1.21%     06/20/20      $      $ (11,062   $ (8,991   $ 2,071   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 314,803      $ (11,062   $ 203,990      $ (99,751
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $     15,948,951      $     (2,775,574   $     11,223,306      $     (1,950,071
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
    Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Buy protection:

             

CDX.NA.HY.24

    USD        23,922,000        (5.00 %)      06/20/20        (1,769,095   $ (1,808,906   $ (39,811

ITRAXX.EUR.23

    EUR        9,869,000        (1.00 %)      06/20/20        (208,965     (234,505     (25,540

ITRAXX.XOV.22

    EUR        22,262,000        (5.00 %)      12/20/19        (2,133,277     (2,573,096     (439,819
         

 

 

   

 

 

   

 

 

 

Total

          $ (4,111,337   $ (4,616,507   $ (505,170
         

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

161

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015 - (continued)  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
    Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.IG.23

    USD        42,538,500        1.00     12/20/19      $ 748,210      $ 745,305      $ (2,905
         

 

 

   

 

 

   

 

 

 

Total

          $ (3,363,127   $ (3,871,202   $ (508,075
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counter-party

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

DEUT

   1.46% Fixed    CPURNSA      USD         46,460,000         03/02/17       $     —       $     —       $ 9,977      $ 9,977   

DEUT

   1.48% Fixed    CPURNSA      USD         21,610,000         03/02/17                         (2,953     (2,953

BCLY

   1.53% Fixed    CPURNSA      USD         22,823,000         03/03/17                         (21,935     (21,935
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $       $       $     (14,911   $     (14,911
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/05/15       GSC    $ 771,646       $ 765,348       $ (6,298

BRL

   Buy      05/05/15       UBS      2,116,301         2,029,331         (86,970

BRL

   Buy      06/02/15       GSC      1,519,923         1,551,798         31,875   

BRL

   Sell      05/05/15       UBS      771,646         765,348         6,298   

BRL

   Sell      05/05/15       GSC      736,255         765,348         (29,093

BRL

   Sell      05/05/15       UBS      1,186,090         1,263,983         (77,893

BRL

   Sell      06/02/15       UBS      2,096,311         2,009,464         86,847   

CAD

   Buy      06/17/15       RBC      2,813,762         2,791,355         (22,407

CAD

   Sell      06/17/15       TDB      2,671,777         2,791,355         (119,578

COP

   Buy      06/17/15       SCB      633,651         694,891         61,240   

COP

   Buy      06/17/15       SSG      467,557         490,273         22,716   

COP

   Sell      06/17/15       BOA      344,558         379,637         (35,079

COP

   Sell      06/17/15       JPM      377,957         421,396         (43,439

COP

   Sell      06/17/15       JPM      443,852         490,273         (46,421

COP

   Sell      06/17/15       UBS      651,795         717,513         (65,718

CZK

   Sell      06/17/15       BNP      1,817,200         1,843,717         (26,517

EUR

   Buy      05/04/15       DEUT      283,090         286,006         2,916   

EUR

   Buy      05/29/15       DEUT      2,357,462         2,437,528         80,066   

EUR

   Buy      06/17/15       BNP      2,031,259         2,078,587         47,328   

EUR

   Buy      06/17/15       BOA      1,734,892         1,769,607         34,715   

EUR

   Buy      06/17/15       BNP      1,818,580         1,842,640         24,060   

EUR

   Buy      06/17/15       DEUT      1,110,911         1,122,437         11,526   

EUR

   Sell      05/04/15       DEUT      1,110,831         1,122,275         (11,444

EUR

   Sell      05/29/15       DEUT      247,921         250,493         (2,572

EUR

   Sell      05/29/15       DEUT          21,753,833             22,492,652             (738,819)   

EUR

   Sell      06/17/15       UBS      379,374         392,123         (12,749

EUR

   Sell      06/17/15       RBC      538,653         567,398         (28,745

EUR

   Sell      06/17/15       BCLY      939,477         971,880         (32,403

EUR

   Sell      06/17/15       SSG      1,413,100         1,460,629         (47,529

EUR

   Sell      06/17/15       SSG      936,498         988,733         (52,235

EUR

   Sell      06/17/15       NAB      1,871,038         1,977,466         (106,428

EUR

   Sell      06/17/15       RBS      1,863,357         1,975,219         (111,862

 

The accompanying notes are an integral part of these financial statements.

 

 

  162  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Sell      06/17/15       BCLY    $ 3,613,272       $ 3,848,194       $ (234,922

EUR

   Sell      09/18/15       SSG      1,713,821         1,490,829         222,992   

EUR

   Sell      03/15/17       BOA      3,472,479         3,702,925         (230,446

GBP

   Buy      06/17/15       RBS      192,777         196,414         3,637   

GBP

   Buy      06/17/15       BCLY      194,330         197,948         3,618   

GBP

   Sell      05/29/15       GSC      5,622,767         5,742,737         (119,970

GBP

   Sell      06/17/15       BOA      1,798,428         1,792,271         6,157   

GBP

   Sell      06/17/15       BCLY      617,638         629,136         (11,498

GBP

   Sell      06/17/15       RBS      617,487         629,136         (11,649

HKD

   Sell      03/03/16       GSC      2,549,586         2,551,013         (1,427

IDR

   Sell      06/17/15       DEUT      149,924         150,205         (281

IDR

   Sell      06/17/15       UBS      1,219,851         1,252,878         (33,027

INR

   Buy      06/17/15       BCLY      1,832,379         1,795,546         (36,833

KZT

   Sell      05/18/15       JPM      1,450,365         1,537,554         (87,189

MXN

   Buy      06/17/15       JPM      1,884,172         1,859,692         (24,480

MXN

   Buy      06/17/15       JPM      1,886,109         1,859,693         (26,416

MXN

   Buy      06/17/15       GSC      2,177,627         2,119,517         (58,110

MXN

   Sell      06/17/15       GSC      1,815,620         1,766,156         49,464   

MXN

   Sell      06/17/15       BOA      1,812,546         1,783,240         29,306   

MXN

   Sell      06/17/15       RBC      4,075,035         4,130,882         (55,847

MXN

   Sell      06/17/15       MSC      4,074,074         4,130,882         (56,808

MYR

   Buy      06/17/15       DEUT      929,730         961,767         32,037   

NGN

   Buy      10/08/15       SSG      2,733,818         2,372,154         (361,664

NGN

   Sell      10/08/15       SSG      1,153,664         1,166,504         (12,840

NGN

   Sell      10/08/15       CBK      1,106,088         1,205,650         (99,562

RON

   Buy      06/17/15       BNP      2,231,954         2,383,607         151,653   

RON

   Sell      06/17/15       CBK      2,231,560         2,383,607         (152,047

RSD

   Buy      09/18/15       SSG      1,582,183         1,442,954         (139,229

RUB

   Buy      05/15/15       CSFB      666,993         656,637         (10,356

RUB

   Sell      05/15/15       JPM      1,372,312         1,379,885         (7,573

TRY

   Sell      06/17/15       JPM      811,881         800,394         11,487   

TRY

   Sell      06/17/15       JPM      1,546,939         1,537,716         9,223   

UYU

   Sell      06/17/15       HSBC      1,746,563         1,754,386         (7,823

ZAR

   Buy      06/17/15       DEUT      851,817         838,928         (12,889

ZAR

   Sell      06/17/15       BCLY      817,572         838,928         (21,356

ZAR

   Sell      06/17/15       SSG          1,992,681             2,014,345         (21,664
                 

 

 

 

Total

                  $     (2,610,944
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

BRL

   Brazilian Real

CAD

   Canadian Dollar

CNY

   Chinese Yuan

COP

   Colombian Peso

CRC

   Costa Rican Colon

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

INR

   Indian Rupee

KZT

   Kazakhstani Tenge

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NGN

   Nigerian Naira

RON

   New Romanian Leu

RSD

   Serbian Dinar

RUB

   Russian Ruble

TRY

   Turkish Lira

UYU

   Uruguayan Peso

ZAR

   South African Rand
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  163  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments) -

(continued)

Index Abbreviations:

ABX.HE

   Markit Asset Backed Security Home Equity

ABX.HE.PEN

   Markit Asset Backed Security Home Equity Penultimate

CDX.EM

   Credit Derivatives Emerging Markets

CDX.NA.HY

   Credit Derivatives North American High Yield

CDX.NA.IG

   Credit Derivatives North American Investment Grade

CMBX.NA

   Markit Commercial Mortgage Backed North American

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted

ITRAXX.EUR

   Markit i Traxx - Europe

ITRAXX.XOV

   Markit i Traxx Index - Europe Crossover

PrimeX.ARM

   Markit PrimeX Adjustable Rate Mortgage Backed Security
Other Abbreviations:

CDO

   Collateralized Debt Obligation

CLO

   Collateralized Loan Obligation

CME

   Chicago Mercantile Exchange

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

FHLB

   Federal Home Loan Bank

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

LIBOR

   London Interbank Offered Rate

OTC

   Over-the-Counter

REIT

   Real Estate Investment Trust

TBA

   To Be Announced
Municipal Abbreviations:

GO

   General Obligation
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  164  

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 578,665,947      $      $ 578,665,947      $     —   

Corporate Bonds

     615,742,986               615,742,986          

Foreign Government Obligations

     51,759,994               51,759,994          

Municipal Bonds

     19,939,400               19,939,400          

Senior Floating Rate Interests

     96,312,605               96,312,605          

U.S. Government Agencies

     848,496,856               848,496,856          

U.S. Government Securities

     167,398,940               167,398,940          

Preferred Stocks

     1,055,087        1,055,087                 

Short-Term Investments

     243,297,619        198,797,619        44,500,000          

Purchased Options

     245,423               245,423          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     2,622,914,857      $     199,852,706      $     2,423,062,151      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 929,161      $      $ 929,161      $   

Futures Contracts (2)

     362,966        362,966                 

Swaps - Credit Default (2)

     1,327,761               1,327,761          

Swaps - Interest Rate (2)

     9,977               9,977          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,629,865      $ 362,966      $ 2,266,899      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (3,540,105   $      $ (3,540,105   $   

Futures Contracts (2)

     (1,269,386     (1,269,386              

Swaps - Credit Default (2)

     (3,785,907            (3,785,907       

Swaps - Interest Rate (2)

     (24,888            (24,888       

TBA Sale Commitments

     (110,457,515            (110,457,515       

Written Options

     (1,482,466            (1,482,466       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (120,560,267   $ (1,269,386   $ (119,290,881   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) For the six-month period ended April 30, 2015, investments valued at $24,763,619 were transferred from Level 1 to Level 2, and investments valued at $382,528 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

165

 


The Hartford Total Return Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Corporate Bonds     Total  

Beginning balance

   $ 47,161,181      $ 1,250,000      $ 48,411,181   

Purchases

     910,665               910,665   

Sales

     (9,958,762            (9,958,762

Accrued discounts/(premiums)

     391,535               391,535   

Total realized gain/(loss)

     1,441,829               1,441,829   

Net change in unrealized appreciation/depreciation

     (1,621,683            (1,621,683

Transfers into Level 3(1)

                     

Transfers out of Level 3(1)

     (38,324,765     (1,250,000     (39,574,765
  

 

 

   

 

 

   

 

 

 

Ending balance

   $      $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1) Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  166  

 


The Hartford Unconstrained Bond Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     62.3

Aa / AA

     2.7   

A

     3.1   

Baa / BBB

     10.2   

Ba / BB

     20.9   

B

     10.9   

Caa / CCC or Lower

     11.1   

Not Rated

     5.1   

Non-Debt Securities and Other Short-Term Instruments

     1.9   

Other Assets & Liabilities

     (28.2
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Preferred Stocks

     0.1
  

 

 

 

Total

     0.1
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     27.6

Corporate Bonds

     21.9   

Foreign Government Obligations

     6.4   

Municipal Bonds

     1.0   

Senior Floating Rate Interests

     17.3   

U.S. Government Agencies

     41.1   

U.S. Government Securities

     11.0   
  

 

 

 

Total

     126.3
  

 

 

 

Short-Term Investments

     1.8   

Purchased Options

     0.0   

Other Assets & Liabilities

     (28.2
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

167

 


The Hartford Unconstrained Bond Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 27.6%  
            Asset-Backed - Finance & Insurance - 11.6%  
   

Apidos CLO

 
  $        390,000     

1.77%, 01/16/2027 (1)(2)

  $ 390,546   
   

Atlas Senior Loan Fund Ltd.

 
    395,000     

1.82%, 10/15/2026 (1)(2)

    395,513   
    335,000     

1.83%, 07/16/2026 (1)(2)

    335,569   
   

Babson CLO Ltd.

 
    425,000     

1.71%, 04/20/2027 (1)(2)

    424,405   
   

Carlyle Global Market Strategies

 
    390,000     

1.58%, 07/20/2023 (1)(2)

    389,922   
    270,000     

1.74%, 04/27/2027 (1)(2)(3)

    269,865   
   

Cent CLO Ltd.

 
    500,000     

1.51%, 08/01/2024 (1)(2)

    499,750   
    275,000     

1.77%, 04/17/2026 (1)(2)

    274,863   
    360,000     

1.77%, 07/27/2026 (1)(2)

    360,288   
   

CIFC Funding Ltd.

 
    205,000     

1.41%, 08/14/2024 (1)(2)

    204,980   
    395,000     

1.74%, 05/24/2026 (1)(2)

    394,447   
   

Dryden Senior Loan Fund

 
    300,000     

1.56%, 11/15/2023 (1)(2)

    300,000   
    275,000     

2.62%, 11/09/2025 (1)(2)

    280,583   
   

Equity One ABS, Inc.

 
    20,989     

5.46%, 12/25/2033 (2)

    13,558   
   

Galaxy CLO Ltd.

 
    315,000     

1.81%, 01/24/2027 (1)(2)

    314,370   
    250,000     

2.38%, 07/15/2026 (1)(2)

    253,250   
   

Gramercy Park CLO Ltd.

 
    340,000     

1.57%, 07/17/2023 (1)(2)

    341,292   
   

GSAMP Trust

 
    171,672     

0.27%, 01/25/2037 (2)

    101,803   
   

ING Investment Management CLO Ltd.

 
    280,000     

1.78%, 04/18/2026 (1)(2)

    279,636   
   

Long Beach Asset Holdings Corp.

 
    45,120     

5.78%, 04/25/2046 (1)(4)(5)

      
   

Madison Park Funding Ltd.

 
    250,000     

2.43%, 07/20/2026 (1)(2)

    249,975   
    325,000     

2.61%, 01/27/2026 (1)(2)

    329,388   
   

Magnetite CLO Ltd.

 
    480,000     

1.70%, 07/25/2026 (1)(2)

    479,136   
    250,000     

1.75%, 04/15/2026 (1)(2)

    250,200   
   

Neuberger Berman CLO Ltd.

 
    400,000     

1.72%, 08/04/2025 (1)(2)

    399,280   
   

Oaktree EIF II Ltd.

 
    275,000     

1.91%, 02/15/2026 (1)(2)

    275,495   
   

OCP CLO Ltd.

 
    375,000     

1.80%, 04/17/2027 (1)(2)

    374,437   
   

OHA Credit Partners VII Ltd.

 
    200,000     

1.68%, 11/20/2023 (1)(2)

    199,480   
   

OHA Loan Funding Ltd.

 
    345,000     

1.77%, 02/15/2027 (1)(2)

    345,655   
   

OZLM Funding Ltd.

 
    360,000     

1.73%, 04/30/2027 (2)

    358,956   
   

Race Point IX CLO Ltd.

 
    325,000     

1.77%, 04/15/2027 (1)(2)

    325,325   
   

Securitized Asset Backed Receivables LLC

 
    278,135     

0.27%, 07/25/2036 (2)

    137,405   
   

Sound Point CLO Ltd.

 
    250,000     

1.65%, 01/21/2026 (1)(2)

    248,550   
    270,000     

1.79%, 04/15/2027 (1)(2)

    269,190   
   

SpringCastle America Funding LLC

 
    335,577     

2.70%, 05/25/2023 (1)

    337,274   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 27.6% -
(continued)
 
            Asset-Backed - Finance & Insurance - 11.6% - (continued)  
   

Symphony CLO Ltd.

 
  $        430,000     

1.54%, 07/23/2023 (1)(2)

  $ 429,785   
    395,000     

1.72%, 10/17/2026 (1)(2)

    394,802   
   

Tremen Park Ltd.

 
    275,000     

1.76%, 04/20/2027 (1)(2)

    274,863   
   

Venture CLO Ltd.

 
    500,000     

1.58%, 11/14/2022 (1)(2)(3)

    499,750   
   

Voya CLO Ltd.

 
    255,000     

1.76%, 04/18/2027 (1)(2)

    255,255   
    350,000     

2.68%, 10/14/2026 (1)(2)

    351,575   
     

 

 

 
        12,610,416   
     

 

 

 
            Asset-Backed - Home Equity - 1.7%      
   

Asset Backed Funding Certificates

 
    69,746     

0.40%, 01/25/2037 (2)

    43,159   
   

GSAA Home Equity Trust

 
    23,022     

0.23%, 12/25/2046 (2)

    15,985   
    472,888     

0.26%, 02/25/2037 (2)

    254,628   
    134,125     

0.27%, 03/25/2037 (2)

    72,577   
    32,997     

0.35%, 03/25/2047 (2)

    16,718   
    319,460     

0.36%, 11/25/2036 (2)

    173,361   
    176,295     

0.42%, 11/25/2036 (2)

    107,972   
    33,200     

0.48%, 03/25/2036 (2)

    23,748   
    154,173     

0.50%, 04/25/2047 (2)

    102,904   
    397,658     

5.99%, 06/25/2036 (2)

    230,451   
   

Morgan Stanley ABS Capital I

 
    39,799     

0.33%, 06/25/2036 (2)

    36,322   
   

Morgan Stanley Mortgage Loan Trust

 
    508,380     

0.35%, 11/25/2036 (2)

    246,086   
   

Nationstar NIM Ltd.

 
    22,008     

9.79%, 03/25/2037 (1)(4)(5)

      
   

Soundview Home Loan Trust

 
    685,063     

0.42%, 07/25/2036 (2)

    430,245   
    160,000     

0.43%, 11/25/2036 (2)

    110,270   
     

 

 

 
        1,864,426   
     

 

 

 
            Commercial Mortgage-Backed Securities - 3.7%  
   

Bear Stearns Commercial Mortgage Securities, Inc.

 
    100,000     

5.29%, 10/12/2042

    100,117   
   

Citigroup Commercial Mortgage Trust

 
    40,000     

4.56%, 03/10/2047 (1)(2)

    32,735   
    30,000     

5.06%, 03/10/2047 (1)(2)

    29,595   
   

Cobalt CMBS Commercial Mortgage Trust

 
    40,000     

5.25%, 08/15/2048

    41,194   
   

Commercial Mortgage Pass-Through Certificates

 
    1,309,655     

2.42%, 07/10/2046 (1)(2)(6)

    57,695   
    15,000     

3.96%, 03/10/2047

    16,320   
    100,000     

4.75%, 10/15/2045 (1)(2)

    79,063   
   

Community or Commercial Mortgage Trust

 
    65,000     

4.73%, 10/15/2045 (1)(2)

    53,882   
   

CS First Boston Mortgage Securities Corp.

 
    170,000     

4.77%, 07/15/2037

    169,910   
    347,855     

4.88%, 04/15/2037

    348,195   
   

GS Mortgage Securities Trust

 
    4,810,896     

0.35%, 07/10/2046 (2)(6)

    51,260   
    623,374     

1.83%, 08/10/2044 (1)(2)(6)

    33,628   
    90,000     

3.58%, 06/10/2047 (1)

    66,843   
    100,166     

3.67%, 04/10/2047 (1)

    71,493   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  168  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 27.6% -
(continued)
 
            Commercial Mortgage-Backed Securities - 3.7% -
(continued)
 
  $        395,000     

5.02%, 11/10/2045 (1)(2)

  $ 399,966   
    175,000     

5.03%, 04/10/2047 (1)(2)

    170,289   
   

Hilton USA Trust

 
    98,547     

2.92%, 11/05/2030 (1)(2)

    98,546   
    310,422     

3.92%, 11/05/2030 (1)(2)

    310,321   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    110,923     

4.57%, 12/15/2047 (1)(2)

    102,006   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    105,000     

2.75%, 10/15/2045 (1)(2)

    84,264   
    100,000     

4.82%, 10/15/2045 (1)(2)

    101,301   
   

JPMBB Commercial Mortgage Securities Trust

 
    1,775,932     

1.03%, 09/15/2047 (2)(6)

    88,225   
   

Merrill Lynch Mortgage Investors Trust

 
    100,000     

5.14%, 07/12/2038 (2)

    100,360   
   

Merrill Lynch/Countrywide Commercial Mortgage Trust

 
    130,000     

5.42%, 08/12/2048

    137,045   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    105,000     

4.50%, 08/15/2045 (1)

    82,683   
   

Morgan Stanley Capital I Trust

 
    100,000     

5.36%, 07/15/2049 (1)(2)

    91,633   
    30,000     

5.55%, 10/12/2052 (1)(2)

    30,386   
    20,000     

5.55%, 10/12/2052 (1)(2)

    20,111   
   

UBS-Barclays Commercial Mortgage Trust

 
    65,000     

4.23%, 03/10/2046 (1)(2)

    55,018   
   

VNDO Mortgage Trust

 
    160,000     

4.08%, 12/13/2029 (1)(2)

    166,383   
   

Wachovia Bank Commercial Mortgage Trust

 
    125,000     

5.66%, 03/15/2042 (1)(2)

    124,724   
   

Wells Fargo Commercial Mortgage Trust

 
    15,000     

4.11%, 05/15/2048 (2)

    13,774   
   

WF-RBS Commercial Mortgage Trust

 
    235,599     

3.02%, 11/15/2047 (1)

    167,566   
    375,000     

4.96%, 11/15/2045 (1)(2)

    347,551   
    45,000     

5.00%, 06/15/2044 (1)(2)

    42,752   
    55,215     

5.00%, 04/15/2045 (1)(2)

    45,152   
    65,000     

5.75%, 04/15/2045 (1)(2)

    70,238   
     

 

 

 
        4,002,224   
     

 

 

 
            Whole Loan Collateral CMO - 10.5%      
   

Adjustable Rate Mortgage Trust

 
    32,833     

0.43%, 01/25/2036 (2)

    27,552   
    84,508     

0.45%, 11/25/2035 (2)

    77,001   
    127,780     

0.68%, 01/25/2036 (2)

    110,399   
   

American Home Mortgage Assets Trust

 
    88,197     

0.31%, 03/25/2047 (2)

    69,976   
    183,273     

1.08%, 10/25/2046 (2)

    130,306   
   

Banc of America Funding Corp.

 
    173,990     

0.37%, 10/20/2036 (2)

    130,185   
    52,907     

5.85%, 01/25/2037

    42,444   
   

Banc of America Mortgage Trust

 
    107,918     

2.67%, 09/25/2035 (2)

    98,826   
   

BCAP LLC Trust

 
    174,020     

0.35%, 01/25/2037 (2)

    137,945   
    213,481     

0.36%, 03/25/2037 (2)

    181,115   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    53,860     

2.36%, 02/25/2036 (2)

    53,698   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 27.6% -
(continued)
 
            Whole Loan Collateral CMO - 10.5% - (continued)  
   

Bear Stearns Alt-A Trust

 
  $        413,744     

0.50%, 08/25/2036 (2)

  $ 310,135   
    88,770     

0.68%, 01/25/2036 (2)

    69,950   
   

Bear Stearns Mortgage Funding Trust

 
    124,919     

0.36%, 10/25/2036 (2)

    97,312   
   

Chase Mortgage Finance Trust

 
    350,000     

5.50%, 11/25/2035

    343,897   
   

CHL Mortgage Pass-Through Trust

 
    20,345     

0.52%, 03/25/2035 (2)

    16,681   
   

Connecticut Avenue Securities Series

 
    50,000     

2.78%, 05/25/2024 (2)

    46,619   
    235,000     

3.08%, 07/25/2024 (2)

    222,692   
    310,000     

3.18%, 07/25/2024 (2)

    296,981   
    125,000     

5.08%, 11/25/2024 (2)

    132,976   
   

Countrywide Alternative Loan Trust

 
    159,787     

0.50%, 11/25/2035 (2)

    130,879   
    656,935     

0.58%, 10/25/2036 (2)

    471,106   
    282,451     

5.50%, 12/25/2035

    248,602   
    391,884     

5.75%, 05/25/2036

    348,301   
    321,998     

6.00%, 05/25/2036

    277,538   
   

Countrywide Home Loans, Inc.

 
    281,371     

2.55%, 09/25/2047 (2)

    250,311   
    103,021     

5.75%, 08/25/2037

    97,969   
   

Deutsche Alt-A Securities Mortgage Loan Trust

 
    93,212     

0.33%, 03/25/2037 (2)

    66,686   
   

Downey S & L Association Mortgage Loan Trust

 
    489,921     

1.05%, 03/19/2046 (2)

    376,408   
   

First Horizon Mortgage Pass-Through Trust

 
    235,415     

2.60%, 08/25/2037 (2)

    193,346   
   

GMAC Mortgage Corp. Loan Trust

 
    114,995     

2.94%, 09/19/2035 (2)

    107,351   
    29,265     

2.98%, 04/19/2036 (2)

    25,954   
   

GSR Mortgage Loan Trust

 
    381,366     

2.65%, 04/25/2035 (2)

    368,129   
    477,808     

2.71%, 01/25/2036 (2)

    442,541   
    102,330     

2.76%, 10/25/2035 (2)

    89,100   
   

HarborView Mortgage Loan Trust

 
    223,586     

0.37%, 01/19/2038 (2)

    188,667   
    873,682     

0.42%, 12/19/2036 (2)

    617,876   
    204,704     

0.51%, 09/19/2035 (2)

    161,586   
    13,155     

0.88%, 01/19/2035 (2)

    9,158   
    378,619     

2.62%, 01/19/2035 (2)

    351,149   
   

IndyMac Index Mortgage Loan Trust

 
    70,592     

0.42%, 07/25/2035 (2)

    61,305   
    123,778     

0.46%, 07/25/2035 (2)

    103,044   
    79,369     

0.47%, 01/25/2036 (2)

    55,122   
    470,826     

0.58%, 07/25/2046 (2)

    262,986   
   

JP Morgan Mortgage Trust

 
    147,978     

2.39%, 11/25/2035 (2)

    140,224   
    128,349     

2.53%, 04/25/2037 (2)

    114,576   
    104,244     

2.55%, 09/25/2035 (2)

    99,356   
    147,945     

2.61%, 05/25/2036 (2)

    131,320   
    345,913     

2.61%, 05/25/2036 (2)

    317,208   
   

Lehman XS Trust

 
    116,906     

0.39%, 07/25/2046 (2)

    92,603   
   

Merrill Lynch Mortgage Investors Trust

 
    102,148     

2.55%, 07/25/2035 (2)

    82,762   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  169  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 27.6% -
(continued)
 
            Whole Loan Collateral CMO - 10.5% - (continued)  
   

Morgan Stanley Mortgage Loan Trust

 
  $        84,750     

2.76%, 05/25/2036 (2)

  $ 61,536   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    582,370     

3.47%, 06/25/2036 (2)

    445,956   
   

RBSGC Mortgage Pass-Through Certificates

 
    124,765     

6.25%, 01/25/2037

    112,766   
   

Residential Accredit Loans, Inc.

 
    58,217     

0.94%, 09/25/2046 (2)

    39,378   
    522,154     

1.39%, 11/25/2037 (2)

    333,387   
   

Residential Asset Securitization Trust

 
    85,243     

0.63%, 03/25/2035 (2)

    69,210   
   

Residential Funding Mortgage Securities, Inc.

 
    350,320     

2.70%, 08/25/2035 (2)

    277,630   
    13,206     

3.03%, 04/25/2037 (2)

    11,512   
   

Sequoia Mortgage Trust

 
    92,219     

2.49%, 07/20/2037 (2)

    78,813   
   

Springleaf Mortgage Loan Trust

 
    240,000     

3.52%, 12/25/2065 (1)(2)

    244,595   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    601,195     

2.49%, 02/25/2036 (2)

    482,893   
   

Structured Asset Mortgage Investments II Trust

 
    383,064     

0.41%, 02/25/2036 (2)

    305,316   
   

WaMu Mortgage Pass-Through Certificates Trust

 
    62,052     

0.60%, 06/25/2044 (2)

    57,408   
    46,006     

2.20%, 11/25/2046 (2)

    41,466   
   

Wells Fargo Alternative Loan Trust

 
    53,902     

2.57%, 12/28/2037 (2)

    46,342   
     

 

 

 
        11,488,061   
     

 

 

 
            Whole Loan Collateral PAC - 0.1%      
   

Countrywide Alternative Loan Trust

 
    101,062     

0.68%, 12/25/2035 (2)

    72,491   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities (cost $29,224,430)

  $ 30,037,618   
     

 

 

 
     
CORPORATE BONDS - 21.9%  
            Aerospace/Defense - 0.0%      
   

Triumph Group, Inc.

 
  $        50,000     

5.25%, 06/01/2022

  $ 49,500   
     

 

 

 
            Apparel - 0.3%      
   

Hanesbrands, Inc.

 
    90,000     

6.38%, 12/15/2020

    95,175   
   

William Carter Co.

 
    170,000     

5.25%, 08/15/2021

    176,375   
     

 

 

 
        271,550   
     

 

 

 
            Chemicals - 0.3%      
   

Eagle Spinco, Inc.

 
    110,000     

4.63%, 02/15/2021

    111,375   
   

NOVA Chemicals Corp.

 
    170,000     

5.00%, 05/01/2025 (1)

    179,137   
     

 

 

 
        290,512   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Coal - 0.1%      
   

Peabody Energy Corp.

 
  $        15,000     

6.00%, 11/15/2018

  $ 11,822   
    90,000     

6.50%, 09/15/2020

    55,800   
     

 

 

 
        67,622   
     

 

 

 
            Commercial Banks - 8.1%      
   

Banco Bilbao Vizcaya Argentaria S.A.

 
  EUR        600,000     

7.00%, 02/19/2019 (2)(7)(8)

    690,553   
  $        400,000     

9.00%, 05/09/2018 (2)(7)(8)

    432,500   
   

Banco do Brasil S.A.

 
    200,000     

3.88%, 10/10/2022

    189,100   
    245,000     

6.25%, 04/15/2024 (2)(7)(8)

    181,349   
   

Banco Santander S.A.

 
  EUR        900,000     

6.25%, 03/12/2019 (2)(7)(8)

    1,014,355   
   

Barclays Bank plc

 
  $        200,000     

7.75%, 04/10/2023 (2)

    222,000   
  EUR        200,000     

8.00%, 12/15/2020 (2)(7)

    247,054   
  $        200,000     

8.25%, 12/15/2018 (2)(7)

    213,040   
   

CIT Group, Inc.

 
    80,000     

5.25%, 03/15/2018

    82,920   
    104,000     

5.50%, 02/15/2019 (1)

    108,810   
   

Citigroup, Inc.

 
    190,000     

6.68%, 09/13/2043

    243,785   
   

Credit Agricole S.A.

 
  EUR        225,000     

6.50%, 06/23/2021 (2)(7)(8)

    264,509   
  $        200,000     

8.13%, 09/19/2033 (1)(2)

    225,750   
   

Credit Suisse Group AG

 
  EUR        200,000     

5.75%, 09/18/2025 (2)(8)

    259,445   
  $        100,000     

7.88%, 02/24/2041 (2)(8)

    105,875   
   

Export-Import Bank of India

 
    400,000     

2.75%, 08/12/2020 (8)

    395,464   
   

HSBC Holdings plc

 
    375,000     

5.63%, 01/17/2020 (2)(7)

    383,437   
   

JP Morgan Chase & Co.

 
    720,000     

5.63%, 08/16/2043

    839,758   
   

KBC Groep N.V.

 
  EUR        125,000     

5.63%, 03/19/2019 (2)(7)(8)

    140,883   
   

Lloyds Banking Group plc

 
    375,000     

6.38%, 06/27/2020 (2)(7)(8)

    448,512   
  GBP        200,000     

7.00%, 06/27/2019 (2)(7)(8)

    314,300   
   

Morgan Stanley

 
  $        90,000     

4.30%, 01/27/2045

    88,500   
   

Royal Bank of Scotland Group plc

 
    80,000     

6.13%, 12/15/2022

    88,753   
   

Societe Generale S.A.

 
    200,000     

6.00%, 01/27/2020 (1)(2)(7)

    190,620   
  EUR        275,000     

6.75%, 04/07/2021 (2)(7)(8)

    318,541   
  $        275,000     

8.25%, 11/29/2018 (7)(8)

    292,187   
   

Standard Chartered plc

 
    360,000     

6.50%, 04/02/2020 (1)(2)(7)

    363,745   
   

UBS Group AG

 
    200,000     

7.13%, 02/19/2020 (2)(7)(8)

    208,204   
   

UniCredit S.p.A.

 
    200,000     

8.00%, 06/03/2024 (2)(7)(8)

    204,400   
     

 

 

 
        8,758,349   
     

 

 

 
            Commercial Services - 0.5%  
   

ADT Corp.

 
    205,000     

6.25%, 10/15/2021

    220,375   
   

Cardtronics, Inc.

 
    50,000     

5.13%, 08/01/2022 (1)

    49,625   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  170  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Commercial Services - 0.5% - (continued)  
   

Sotheby’s

 
  $        135,000     

5.25%, 10/01/2022 (1)

  $ 134,663   
   

United Rentals North America, Inc.

 
    40,000     

4.63%, 07/15/2023

    40,550   
    55,000     

5.50%, 07/15/2025

    55,718   
     

 

 

 
        500,931   
     

 

 

 
            Construction Materials - 0.6%  
   

Building Materials Corp. of America

 
    95,000     

5.38%, 11/15/2024 (1)

    97,375   
    75,000     

6.75%, 05/01/2021 (1)

    79,688   
   

Cemex S.A.B. de C.V.

 
  EUR        100,000     

4.38%, 03/05/2023 (1)

    112,049   
   

Grupo Cementos de Chihuahua S.A.B. de C.V.

 
  $        260,000     

8.13%, 02/08/2020 (1)

    281,450   
   

Norbord, Inc.

 
    90,000     

6.25%, 04/15/2023 (1)

    91,012   
     

 

 

 
        661,574   
     

 

 

 
            Diversified Financial Services - 0.7%  
   

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
    150,000     

4.50%, 05/15/2021 (1)

    157,875   
   

Aircastle Ltd.

 
    35,000     

5.50%, 02/15/2022

    37,363   
   

Intercorp Peru Ltd.

 
    120,000     

5.88%, 02/12/2025 (1)

    121,200   
   

International Lease Finance Corp.

 
    140,000     

5.88%, 04/01/2019

    152,250   
   

Navient Corp.

 
    150,000     

5.50%, 01/15/2019

    152,475   
    95,000     

8.45%, 06/15/2018

    105,991   
     

 

 

 
        727,154   
     

 

 

 
            Electric - 0.7%  
   

AES Corp.

 
    270,000     

8.00%, 06/01/2020

    314,550   
   

Eskom Holdings Ltd.

 
    325,000     

5.75%, 01/26/2021 (1)

    323,700   
   

NRG Energy, Inc.

 
    130,000     

6.25%, 07/15/2022

    134,875   
     

 

 

 
        773,125   
     

 

 

 
            Electrical Components & Equipment - 0.1%  
   

EnerSys

 
    85,000     

5.00%, 04/30/2023 (1)

    86,063   
     

 

 

 
            Engineering & Construction - 0.3%  
   

SBA Tower Trust

 
    310,000     

3.60%, 04/15/2043 (1)

    309,617   
     

 

 

 
            Environmental Control - 0.1%  
   

Clean Harbors, Inc.

 
    130,000     

5.25%, 08/01/2020

    133,900   
     

 

 

 
            Food - 0.2%  
   

Marfrig Holding Europe B.V.

 
    200,000     

6.88%, 06/24/2019 (8)

    178,000   
     

 

 

 
            Forest Products & Paper - 0.1%  
   

Cascades, Inc.

 
    20,000     

5.50%, 07/15/2022 (1)

    20,250   
   

Clearwater Paper Corp.

 
    90,000     

5.38%, 02/01/2025 (1)

    91,575   
     

 

 

 
        111,825   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Gas - 0.0%  
   

Southern Star Central Corp.

 
  $        15,000     

5.13%, 07/15/2022 (1)

  $ 15,600   
            Healthcare-Services - 0.7%  
   

Community Health Systems, Inc.

 
    130,000     

5.13%, 08/01/2021

    134,550   
   

HCA, Inc.

 
    230,000     

6.50%, 02/15/2020

    262,200   
   

Tenet Healthcare Corp.

 
    240,000     

6.00%, 10/01/2020

    256,200   
   

Wellcare Health Plans, Inc.

 
    85,000     

5.75%, 11/15/2020

    90,100   
     

 

 

 
        743,050   
     

 

 

 
            Holding Companies-Diversified - 0.1%  
   

Hutchison Whampoa Europe Finance Ltd.

 
  EUR        140,000     

3.75%, 05/10/2018 (2)(7)(8)

    161,459   
     

 

 

 
            Home Builders - 0.2%  
   

Lennar Corp.

 
  $        175,000     

4.50%, 06/15/2019

    180,250   
   

Ryland Group, Inc.

 
    67,000     

5.38%, 10/01/2022

    68,172   
     

 

 

 
        248,422   
     

 

 

 
            Insurance - 0.6%  
   

AXA S.A.

 
    295,000     

6.46%, 12/14/2018 (1)(2)(7)

    312,877   
   

Mapfre S.A.

 
  EUR        300,000     

5.92%, 07/24/2037 (2)

    362,959   
     

 

 

 
        675,836   
     

 

 

 
            Internet - 0.3%  
   

Alibaba Group Holding Ltd.

 
  $        220,000     

3.60%, 11/28/2024 (8)

    219,012   
   

Equinix, Inc.

 
    130,000     

4.88%, 04/01/2020

    134,225   
     

 

 

 
        353,237   
     

 

 

 
            Iron/Steel - 0.4%  
   

ArcelorMittal

 
    160,000     

6.00%, 08/05/2020

    167,000   
   

Steel Dynamics, Inc.

 
    45,000     

5.13%, 10/01/2021 (1)

    46,012   
    20,000     

5.50%, 10/01/2024 (1)

    20,650   
   

United States Steel Corp.

 
    25,000     

6.88%, 04/01/2021

    25,188   
    155,000     

7.38%, 04/01/2020

    161,975   
     

 

 

 
        420,825   
     

 

 

 
            IT Services - 0.1%  
   

NCR Corp.

 
    80,000     

4.63%, 02/15/2021

    79,400   
    5,000     

5.00%, 07/15/2022

    4,938   
     

 

 

 
        84,338   
     

 

 

 
            Machinery - Contruction & Mining - 0.0%  
   

Oshkosh Corp.

 
    50,000     

5.38%, 03/01/2025 (1)

    51,875   
     

 

 

 
            Machinery-Diversified - 0.1%  
   

Case New Holland Industrial, Inc.

 
    100,000     

7.88%, 12/01/2017

    110,250   
   

CNH Industrial Capital LLC

 
    45,000     

3.38%, 07/15/2019 (1)

    44,100   
     

 

 

 
        154,350   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

171

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Media - 1.0%  
   

CCO Holdings LLC

 
  $        165,000     

5.25%, 09/30/2022

  $ 164,876   
    10,000     

5.75%, 09/01/2023

    10,100   
   

DISH DBS Corp.

 
    121,000     

5.88%, 07/15/2022

    121,908   
    95,000     

6.75%, 06/01/2021

    100,589   
   

Gannett Co., Inc.

 
    165,000     

4.88%, 09/15/2021 (1)

    169,537   
    20,000     

5.13%, 10/15/2019

    21,075   
    115,000     

5.13%, 07/15/2020

    120,412   
   

Liberty Interactive LLC

 
    160,000     

8.25%, 02/01/2030

    177,200   
   

Videotron Ltd.

 
    45,000     

5.00%, 07/15/2022

    46,431   
    125,000     

5.38%, 06/15/2024 (1)

    129,531   
     

 

 

 
        1,061,659   
     

 

 

 
            Mining - 0.4%  
   

FMG Resources August 2006 Pty Ltd.

 
    90,000     

6.88%, 04/01/2022 (1)

    68,175   
   

Southern Copper Corp.

 
    60,000     

5.25%, 11/08/2042

    55,159   
    110,000     

5.88%, 04/23/2045

    108,163   
   

Vedanta Resources plc

 
    200,000     

6.00%, 01/31/2019 (8)

    188,500   
     

 

 

 
        419,997   
     

 

 

 
            Oil & Gas - 1.1%  
   

Antero Resources Corp.

 
    45,000     

5.63%, 06/01/2023 (1)

    45,956   
   

Concho Resources, Inc.

 
    25,000     

6.50%, 01/15/2022

    26,312   
   

Ecopetrol S.A.

 
    268,000     

5.88%, 05/28/2045

    256,945   
   

Harvest Operations Corp.

 
    21,000     

6.88%, 10/01/2017

    19,399   
   

MEG Energy Corp.

 
    50,000     

7.00%, 03/31/2024 (1)

    49,260   
   

Nexen Energy ULC

 
    20,000     

5.88%, 03/10/2035

    23,008   
    105,000     

6.40%, 05/15/2037

    128,821   
   

Petrobras Global Finance B.V.

 
    120,000     

4.38%, 05/20/2023

    106,720   
   

Petroleos Mexicanos

 
    136,000     

5.50%, 06/27/2044

    134,164   
  MXN        2,500,000     

7.47%, 11/12/2026

    156,339   
   

QEP Resources, Inc.

 
  $        5,000     

6.80%, 03/01/2020

    5,263   
   

SM Energy Co.

 
    15,000     

6.13%, 11/15/2022 (1)

    15,750   
   

Tesoro Corp.

 
    75,000     

5.13%, 04/01/2024

    76,875   
   

WPX Energy, Inc.

 
    35,000     

5.25%, 09/15/2024

    32,287   
    105,000     

6.00%, 01/15/2022

    102,940   
   

YPF S.A.

 
    57,000     

8.75%, 04/04/2024 (8)

    59,485   
     

 

 

 
        1,239,524   
     

 

 

 
            Packaging & Containers - 0.1%  
   

Graphic Packaging International, Inc.

 
    125,000     

4.88%, 11/15/2022

    129,375   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Pipelines - 1.1%  
   

Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp.

 
  $        40,000     

6.25%, 04/01/2023 (1)

  $ 41,800   
   

DCP Midstream Operating L.P.

 
    16,000     

4.95%, 04/01/2022

    15,909   
    15,000     

5.60%, 04/01/2044

    13,004   
   

Energy Transfer Equity L.P.

 
    650,000     

5.95%, 10/01/2043

    704,592   
    130,000     

7.50%, 10/15/2020

    146,250   
   

MarkWest Energy Partners L.P.

 
    40,000     

4.88%, 12/01/2024

    41,376   
    35,000     

6.75%, 11/01/2020

    36,575   
   

Tesoro Logistics L.P.

 
    45,000     

5.50%, 10/15/2019 (1)

    47,587   
    125,000     

6.25%, 10/15/2022 (1)

    132,656   
     

 

 

 
        1,179,749   
     

 

 

 
            Retail - 0.2%  
   

Family Tree Escrow LLC

 
    30,000     

5.75%, 03/01/2023 (1)

    31,500   
   

Group 1 Automotive, Inc.

 
    80,000     

5.00%, 06/01/2022 (1)

    80,400   
   

Sally Holdings LLC

 
    105,000     

5.75%, 06/01/2022

    111,562   
     

 

 

 
        223,462   
     

 

 

 
            Savings & Loans - 0.5%  
   

Nationwide Building Society

 
  GBP        350,000     

6.88%, 06/20/2019 (7)(8)

    539,936   
            Semiconductors - 0.0%  
   

Sensata Technologies B.V.

 
  $        45,000     

5.00%, 10/01/2025 (1)

    46,462   
    5,000     

5.63%, 11/01/2024 (1)

    5,338   
     

 

 

 
        51,800   
     

 

 

 
            Shipbuilding - 0.1%  
   

Huntington Ingalls Industries, Inc.

 
    65,000     

7.13%, 03/15/2021

    69,713   
     

 

 

 
            Software - 0.5%  
   

Activision Blizzard, Inc.

 
    245,000     

5.63%, 09/15/2021 (1)

    261,844   
   

Audatex North America, Inc.

 
    105,000     

6.00%, 06/15/2021 (1)

    108,445   
    65,000     

6.13%, 11/01/2023 (1)

    67,762   
   

MSCI, Inc.

 
    25,000     

5.25%, 11/15/2024 (1)

    26,000   
   

Open Text Corp.

 
    25,000     

5.63%, 01/15/2023 (1)

    25,938   
     

 

 

 
        489,989   
     

 

 

 
            Telecommunications - 2.1%  
   

America Movil S.A.B. de C.V.

 
  MXN        2,450,000     

7.13%, 12/09/2024

    158,191   
   

AT&T, Inc.

 
  $        110,000     

4.75%, 05/15/2046 (3)

    107,540   
   

Mobile Telesystems OJSC via MTS International Funding Ltd.

 
    240,000     

5.00%, 05/30/2023 (1)

    214,920   
   

Rogers Communications, Inc.

 
    475,000     

8.75%, 05/01/2032

    673,814   
   

SoftBank Corp.

 
    200,000     

4.50%, 04/15/2020 (1)

    204,750   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  172  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 21.9% - (continued)  
            Telecommunications - 2.1% - (continued)  
   

Sprint Communications, Inc.

 
  $        147,000     

7.00%, 03/01/2020 (1)

  $ 162,619   
    53,000     

9.00%, 11/15/2018 (1)

    60,304   
   

Sprint Corp.

 
    130,000     

7.13%, 06/15/2024

    124,962   
   

T-Mobile USA, Inc.

 
    125,000     

6.46%, 04/28/2019

    129,062   
    125,000     

6.63%, 11/15/2020

    130,469   
    100,000     

6.84%, 04/28/2023

    105,750   
    285,000     

VimpelCom Holdings B.V.
5.95%, 02/13/2023 (1)

    259,350   
     

 

 

 
        2,331,731   
     

 

 

 
            Transportation - 0.2%      
   

Kazakhstan Temir Zholy Finance B.V.

 
    200,000     

6.95%, 07/10/2042

    204,000   
     

 

 

 
   

Total Corporate Bonds
(cost $24,202,403)

  $ 23,769,649   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 6.4%      
            Argentina - 0.1%      
   

Argentine Republic Government International Bond

 
    102,000     

8.75%, 06/02/2017 (5)

  $ 99,450   
     

 

 

 
            Brazil - 0.7%      
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        662,942     

6.00%, 08/15/2016 (9)

    218,136   
    1,548,612     

6.00%, 05/15/2019 (9)

    511,047   
     

 

 

 
        729,183   
     

 

 

 
            Colombia - 0.4%      
   

Colombian TES

 
  COP        441,429,697     

3.00%, 03/25/2033 (9)

    163,452   
    264,549,434     

3.50%, 03/10/2021 (9)

    114,718   
    163,200,000     

5.00%, 11/21/2018

    68,101   
   

Empresa de Telecomunicaciones de Bogota

 
    156,000,000     

7.00%, 01/17/2023 (8)

    62,348   
     

 

 

 
        408,619   
     

 

 

 
            Costa Rica - 0.1%      
   

Costa Rica Government International Bond

 
  CRC        59,300,000     

9.20%, 03/27/2019 (1)

    112,569   
     

 

 

 
            Dominican Republic - 0.2%      
   

Dominican Republic International Bond

 
  $        155,000     

5.50%, 01/27/2025 (1)

    160,038   
    100,000     

5.50%, 01/27/2025 (8)

    103,250   
     

 

 

 
        263,288   
     

 

 

 
            El Salvador - 0.1%      
   

El Salvador Government International Bond

 
    56,000     

5.88%, 01/30/2025 (8)

    55,650   
     

 

 

 
            Gabon - 0.2%      
   

Gabonese Republic

 
    200,000     

6.38%, 12/12/2024 (8)

    201,900   
     

 

 

 
            Hungary - 0.1%      
   

Hungary Government International Bond

 
    96,000     

5.38%, 03/25/2024

    107,866   
     

 

 

 
            Indonesia - 0.4%      
   

Indonesia Government International Bond

 
    327,000     

4.63%, 04/15/2043 (8)

    317,190   

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 6.4% - (continued)      
            Indonesia - 0.4% - (continued)      
   

Indonesia Treasury Bond

 
  IDR        2,004,000,000     

8.38%, 03/15/2024

  $ 161,170   
     

 

 

 
        478,360   
     

 

 

 
            Mexico - 1.2%      
   

Mexican Bonos

 
  MXN        5,780,100     

5.00%, 12/11/2019

    373,074   
   

Mexican Udibonos

 
    5,980,310     

4.00%, 11/15/2040 (9)

    428,090   
   

Mexico Government International Bond

 
  EUR        316,000     

3.00%, 03/06/2045

    359,256   
  GBP        100,000     

5.63%, 03/19/2114

    159,998   
     

 

 

 
        1,320,418   
     

 

 

 
            Montenegro - 0.2%  
   

Montenegro Government International Bond

 
  EUR        190,000     

3.88%, 03/18/2020 (1)

    208,157   
     

 

 

 
            Panama - 0.2%  
   

Panama Government International Bond

 
  $        200,000     

3.75%, 03/16/2025

    202,500   
     

 

 

 
            Peru - 0.1%  
   

Peruvian Government International Bond

 
    67,000     

5.63%, 11/18/2050

    80,568   
     

 

 

 
            Romania - 0.2%  
   

Romania Government Bond

 
  RON        350,000     

5.85%, 04/26/2023

    105,438   
   

Romanian Government International Bond

 
  EUR        91,000     

2.88%, 10/28/2024 (8)

    109,459   
     

 

 

 
        214,897   
     

 

 

 
            Russia - 0.5%  
   

Russian Federal Bond - OFZ

 
  RUB        13,125,000     

7.50%, 02/27/2019

    228,688   
   

Russian Foreign Bond - Eurobond

 
  EUR        200,000     

3.63%, 09/16/2020 (8)

    219,461   
  $        110,625     

7.50%, 03/31/2030 (8)

    129,401   
     

 

 

 
        577,550   
     

 

 

 
            South Africa - 0.4%  
   

South Africa Government Bond

 
  ZAR        3,825,000     

7.75%, 02/28/2023

    321,080   
    2,070,000     

8.00%, 01/31/2030

    168,262   
     

 

 

 
        489,342   
     

 

 

 
            Turkey - 0.6%  
   

Turkey Government Bond

 
  TRY        546,318     

2.50%, 05/04/2016 (9)

    203,903   
    572,000     

9.00%, 01/27/2016

    212,205   
   

Turkey Government International Bond

 
  $        200,000     

5.75%, 03/22/2024

    220,408   
     

 

 

 
        636,516   
     

 

 

 
            Uruguay - 0.7%  
   

Uruguay Government International Bond

 
  UYU        16,948,253     

4.25%, 04/05/2027

    636,913   
    4,612,757     

4.38%, 12/15/2028 (9)

    175,048   
     

 

 

 
        811,961   
     

 

 

 
   

Total Foreign Government Obligations
(cost $7,236,778)

  $ 6,998,794   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

173

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
MUNICIPAL BONDS - 1.0%  
            General - 0.8%  
   

Chicago Transit Auth.

 
  $        210,000     

6.90%, 12/01/2040

  $ 265,938   
   

Puerto Rico Commonwealth Gov’t Employees Retirement System

 
    530,000     

6.15%, 07/01/2038

    199,418   
    350,000     

6.20%, 07/01/2039

    131,691   
    530,000     

6.30%, 07/01/2043

    199,412   
    120,000     

6.55%, 07/01/2058

    45,150   
     

 

 

 
        841,609   
     

 

 

 
            Higher Education - 0.2%  
   

University of California

 
    190,000     

4.60%, 05/15/2031

    205,436   
     

 

 

 
   

Total Municipal Bonds
(cost $1,287,928)

  $ 1,047,045   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 17.3% (10)  
            Aerospace/Defense - 0.5%  
   

DigitalGlobe, Inc.

 
    318,500     

3.75%, 01/31/2020

  $ 319,163   
   

Fly Funding II

 
    232,910     

3.50%, 08/09/2019

    233,243   
     

 

 

 
        552,406   
     

 

 

 
            Agriculture - 0.2%  
   

Pinnacle Operating Corp.

 
    170,643     

4.75%, 11/15/2018

    170,856   
     

 

 

 
            Airlines - 0.2%  
   

Delta Air Lines, Inc.

 
    215,693     

3.25%, 04/20/2017

    215,613   
     

 

 

 
            Auto Manufacturers - 0.1%  
   

Navistar International Corp.

 
    80,910     

5.75%, 08/17/2017

    81,264   
     

 

 

 
            Auto Parts & Equipment - 0.3%  
   

Goodyear Tire and Rubber Co.

 
    208,333     

4.75%, 04/30/2019

    210,102   
   

MPG Holdco I Inc.

 
    98,269     

4.25%, 10/20/2021

    98,269   
     

 

 

 
        308,371   
     

 

 

 
            Biotechnology - 0.3%  
   

Alkermes, Inc.

 
    97,500     

3.50%, 09/18/2019

    97,530   
   

PQ Corp.

 
    200,388     

4.00%, 08/07/2017

    200,416   
     

 

 

 
        297,946   
     

 

 

 
            Chemicals - 0.6%  
   

AIlnex (Luxembourg) & Cy SCA

 
    74,372     

4.50%, 10/03/2019

    74,837   
   

AIlnex USA, Inc.

 
    38,588     

4.50%, 10/03/2019

    38,829   
   

Ineos U.S. Finance LLC

 
    212,440     

3.75%, 05/04/2018

    212,733   
   

Minerals Technologies, Inc.

 
    132,749     

4.00%, 05/07/2021

    133,331   
   

Nexeo Solutions LLC

 
    204,750     

5.00%, 09/08/2017

    201,935   
     

 

 

 
        661,665   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 17.3% (10) - (continued)  
            Coal - 0.2%  
   

Arch Coal, Inc.

 
  $        277,174     

6.25%, 05/16/2018

  $ 206,067   
     

 

 

 
            Commercial Services - 0.8%  
   

Acosta Holdco, Inc.

 
    129,350     

1.00%, 09/26/2021

    130,751   
   

AlixPartners LLP

 
    195,066     

4.00%, 07/10/2020

    196,037   
    105,000     

9.00%, 07/10/2021

    105,919   
   

Alliance Laundry System LLC

 
    95,143     

4.25%, 12/10/2018

    95,381   
   

Interactive Data Corp.

 
    114,138     

4.75%, 05/02/2021

    114,815   
   

Moneygram International, Inc.

 
    100,193     

4.25%, 03/27/2020

    94,181   
   

Weight Watchers International, Inc.

 
    227,073     

4.00%, 04/02/2020

    120,785   
     

 

 

 
        857,869   
     

 

 

 
            Distribution/Wholesale - 0.2%  
   

FPC Holdings, Inc.

 
    156,400     

5.25%, 11/19/2019

    155,130   
   

Power Buyer LLC

 
    87,333     

4.25%, 05/06/2020

    87,224   
    4,675     

4.25%, 05/06/2020

    4,669   
     

 

 

 
        247,023   
     

 

 

 
            Diversified Financial Services - 0.1%      
   

Samson Investment Co.

 
    100,000     

5.00%, 09/25/2018

    47,600   
   

Walter Investment Management Corp.

 
    98,534     

4.75%, 12/19/2020

    94,018   
     

 

 

 
        141,618   
     

 

 

 
            Electric - 0.5%      
   

Calpine Corp.

 
    103,350     

4.00%, 10/09/2019

    103,781   
   

Chief Exploration & Development LLC

 
    100,000     

7.50%, 05/12/2021

    94,550   
   

Seadrill Partners Finco LLC

 
    227,397     

4.00%, 02/21/2021

    185,897   
   

Texas Competitive Electric Holdings Co. LLC

 
    100,000     

4.67%, 10/10/2017 (11)

    61,818   
   

TXU Energy

 
    84,653     

3.75%, 05/05/2016

    85,055   
     

 

 

 
        531,101   
     

 

 

 
            Electronics - 0.6%      
   

CDW LLC

 
    340,586     

3.25%, 04/29/2020

    340,120   
   

Ceridian LLC

 
    122,672     

4.50%, 09/15/2020

    122,058   
   

Eagle Parent, Inc.

 
    234,768     

4.00%, 05/16/2018

    235,648   
     

 

 

 
        697,826   
     

 

 

 
            Energy-Alternate Sources - 0.1%      
   

EMG Utica LLC

 
    130,000     

4.75%, 03/27/2020

    124,150   
     

 

 

 
            Entertainment - 0.5%      
   

Party City Holdings, Inc.

 
    190,160     

4.00%, 07/27/2019

    190,609   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  174  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 17.3% (10) - (continued)  
            Entertainment - 0.5% - (continued)      
   

Scientific Games Corp.

 
  $        134,663     

6.00%, 10/01/2021

  $ 136,009   
   

Tribune Co.

 
    200,000     

4.00%, 12/27/2020

    200,876   
     

 

 

 
        527,494   
     

 

 

 
            Food - 0.7%      
   

Albertson’s Holdings LLC

 
    180,000     

5.50%, 08/25/2021

    181,825   
   

Burger King

 
    99,117     

4.50%, 12/12/2021

    100,199   
   

H.J. Heinz Co.

 
    277,191     

3.25%, 06/05/2020

    277,537   
   

U.S. Foods, Inc.

 
    221,063     

4.50%, 03/31/2019

    221,708   
     

 

 

 
        781,269   
     

 

 

 
            Healthcare-Products - 0.1%      
   

Truven Health Analytics

 
    97,265     

4.50%, 06/06/2019

    97,306   
            Healthcare-Services - 1.0%      
   

American Renal Holdings, Inc.

 
    104,979     

8.50%, 03/20/2020

    104,585   
   

Catalent Pharma Solutions, Inc

 
    121,593     

4.25%, 05/20/2021

    122,589   
   

Community Health Systems, Inc.

 
    148,125     

4.25%, 01/27/2021

    149,003   
   

DaVita HealthCare Partners, Inc.

 
    119,100     

3.50%, 06/24/2021

    119,413   
   

Medpace Holdings, Inc.

 
    120,991     

4.75%, 04/01/2021

    121,444   
   

Ortho-Clinical Diagnostics, Inc.

 
    138,950     

4.75%, 06/30/2021

    138,464   
   

U.S. Renal Care, Inc.

 
    195,030     

4.25%, 07/03/2019

    195,923   
    135,000     

10.25%, 01/03/2020

    135,844   
     

 

 

 
        1,087,265   
     

 

 

 
            Insurance - 1.2%      
   

Asurion LLC

 
    238,463     

5.00%, 05/24/2019

    239,612   
    205,000     

8.50%, 03/03/2021

    207,767   
   

CGSC of Delaware Holdings Corp.

 
    98,250     

5.00%, 04/16/2020

    93,337   
   

Evertec Group LLC

 
    108,075     

3.50%, 04/17/2020

    107,175   
   

National Financial Partners Corp.

 
    98,505     

4.50%, 07/01/2020

    98,875   
   

Sedgwick Claims Management Services, Inc.

 
    420,750     

3.75%, 03/01/2021

    417,969   
    140,000     

6.75%, 02/28/2022

    138,032   
     

 

 

 
        1,302,767   
     

 

 

 
            Internet - 0.1%      
   

ION Trading Technologies S.a.r.l.

 
    150,000     

7.25%, 06/10/2022

    148,624   
     

 

 

 
            Leisure Time - 0.4%      
   

Aristocrat Leisure Ltd.

 
    131,885     

4.75%, 10/20/2021

    132,973   
   

Delta 2 (LUX) S.a.r.l.

 
    200,000     

4.75%, 07/30/2021

    200,158   
    130,000     

7.75%, 07/31/2022

    130,122   
     

 

 

 
        463,253   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 17.3% (10) - (continued)  
            Lodging - 0.6%      
   

Caesars Entertainment Operating Co.

 
  $        486,554     

11.00%, 03/01/2017

  $ 443,981   
   

Caesars Growth Properties Holdings LLC

 
    99,250     

6.25%, 05/08/2021

    88,680   
   

La Quinta Intermediate Holdings LLC

 
    95,638     

4.00%, 04/14/2021

    95,906   
     

 

 

 
        628,567   
     

 

 

 
            Machinery - Contruction & Mining - 0.2%      
   

American Rock Salt Holdings LLC

 
    218,350     

4.75%, 05/20/2021

    219,551   
     

 

 

 
            Machinery-Diversified - 0.2%      
   

Gates Global, Inc.

 
    189,050     

4.25%, 07/05/2021

    189,050   
     

 

 

 
            Media - 0.6%      
   

Advantage Sales & Marketing, Inc.

 
    134,500     

4.25%, 07/23/2021

    134,904   
   

Getty Images, Inc.

 
    127,075     

4.75%, 10/18/2019

    109,619   
   

ION Media Networks, Inc.

 
    99,002     

4.75%, 12/18/2020

    99,744   
   

Numericable U.S. LLC

 
    138,806     

4.50%, 05/21/2020

    139,326   
    160,444     

4.50%, 05/21/2020

    161,046   
     

 

 

 
        644,639   
     

 

 

 
            Metal Fabricate/Hardware - 0.2%      
   

Rexnord LLC

 
    192,075     

4.00%, 08/21/2020

    192,663   
     

 

 

 
            Mining - 0.4%  
   

FMG Resources August 2006 Pty Ltd.

 
    297,421     

3.75%, 06/30/2019

    268,193   
   

Novelis, Inc.

 
    155,857     

3.75%, 03/10/2017

    156,052   
     

 

 

 
        424,245   
     

 

 

 
            Miscellaneous Manufacturing - 0.4%  
   

Sram LLC

 
    281,010     

4.02%, 04/10/2020

    280,540   
   

Wireco Worldgroup, Inc.

 
    133,673     

6.00%, 02/15/2017

    133,673   
     

 

 

 
        414,213   
     

 

 

 
            Oil & Gas - 0.6%  
   

Energy Transfer Equity L.P.

 
    105,000     

4.00%, 12/02/2019

    105,246   
   

NGPL Pipeco LLC

 
    274,240     

6.75%, 09/15/2017

    265,370   
   

Pinnacle Holding Co.

 
    217,487     

4.75%, 07/30/2019

    197,913   
   

Shelf Drilling Midco Ltd.

 
    100,000     

10.00%, 10/08/2018

    67,750   
   

Templar Energy LLC

 
    100,000     

8.50%, 11/25/2020

    75,375   
     

 

 

 
        711,654   
     

 

 

 
            Packaging & Containers - 0.6%  
   

BWAY Holding Co., Inc.

 
    133,988     

5.50%, 08/14/2020

    135,327   
   

Reynolds Group Holdings, Inc.

 
    315,241     

4.50%, 12/01/2018

    318,236   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  175  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 17.3% (10) - (continued)  
            Packaging & Containers - 0.6% - (continued)  
   

Signode Industrial Group U.S., Inc.

 
  $        174,389     

3.75%, 05/01/2021

  $ 174,007   
   

Tekni-Plex, Inc.

 
    25,000     

3.50%, 04/01/2022( 12)

    25,055   
     

 

 

 
        652,625   
     

 

 

 
            Pharmaceuticals - 0.1%  
   

PRA Holdings, Inc.

 
    160,852     

4.50%, 09/23/2020

    161,776   
     

 

 

 
            Pipelines - 0.2%  
   

EP Energy LLC

 
    142,500     

4.50%, 04/30/2019

    142,322   
   

Philadelphia Energy Solutions LLC

 
    98,000     

6.25%, 04/04/2018

    96,040   
     

 

 

 
        238,362   
     

 

 

 
            Real Estate - 0.1%  
   

Realogy Corp.

 
    4,168     

2.26%, 10/10/2016

    4,126   
    136,320     

3.75%, 03/05/2020

    136,790   
     

 

 

 
        140,916   
     

 

 

 
            Retail - 0.5%  
   

Aristocrat Leisure Ltd.

 
    140,000     

5.00%, 03/11/2022

    141,656   
   

Dollar Tree, Inc.

 
    105,000     

4.25%, 03/09/2022

    106,300   
   

Michaels Stores, Inc.

 
    112,700     

3.75%, 01/28/2020

    112,950   
   

Neiman Marcus Group, Inc.

 
    153,450     

4.25%, 10/25/2020

    153,751   
   

Staples, Inc.

 
    65,000     

3.50%, 04/07/2021 (12)

    65,220   
     

 

 

 
        579,877   
     

 

 

 
            Semiconductors - 0.6%  
   

Avago Technologies Cayman Ltd.

 
    172,703     

3.75%, 05/06/2021

    173,423   
   

Freescale Semiconductor, Inc.

 
    490,047     

4.25%, 02/28/2020

    491,885   
     

 

 

 
        665,308   
     

 

 

 
            Software - 1.7%  
   

First Data Corp.

 
    750,000     

3.68%, 03/24/2018

    751,410   
   

Infor U.S., Inc.

 
    195,923     

3.75%, 06/03/2020

    195,543   
   

Kronos, Inc.

 
    441,929     

4.50%, 10/30/2019

    444,219   
    129,654     

9.75%, 04/30/2020

    133,745   
   

Magic Newco LLC

 
    287,630     

5.00%, 12/12/2018

    288,649   
     

 

 

 
        1,813,566   
     

 

 

 
            Telecommunications - 1.3%  
   

Altice Financing S.A.

 
    158,000     

5.50%, 07/02/2019

    160,501   
   

Entravision Communications Corp.

 
    90,500     

3.50%, 05/31/2020

    90,009   
   

Intelsat Jackson Holdings S.A.

 
    191,301     

3.75%, 06/30/2019

    191,062   
   

Level 3 Financing, Inc.

 
    320,000     

4.00%, 08/01/2019

    320,598   

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 17.3% (10) - (continued)  
            Telecommunications - 1.3% - (continued)  
   

Salem Communications Corp.

 
  $        191,800     

4.50%, 03/13/2020

  $ 191,881   
   

Univision Communications, Inc.

 
    102,880     

4.00%, 03/01/2020

    102,912   
    195,848     

4.00%, 03/01/2020

    195,956   
   

West Corp.

 
    116,174     

3.25%, 06/30/2018

    116,319   
     

 

 

 
        1,369,238   
     

 

 

 
            Trucking & Leasing - 0.3%  
   

Consolidated Container Co.

 
    277,875     

5.00%, 07/03/2019

    276,902   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $19,135,296)

  $ 18,824,905   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 41.1%  
            FHLMC - 10.7%  
    182,169     

3.00%, 08/01/2029

  $ 191,938   
    600,000     

3.00%, 05/01/2030 (13)

    628,031   
    1,400,000     

3.00%, 05/01/2045 (13)

    1,421,875   
    500,000     

3.50%, 05/01/2030 (13)

    531,422   
    456,299     

3.50%, 08/01/2034

    480,350   
    1,900,000     

3.50%, 05/01/2045 (13)

    1,987,690   
    1,000,000     

3.50%, 06/01/2045 (13)

    1,043,770   
    392,078     

4.00%, 05/01/2042

    419,484   
    103,657     

4.00%, 08/01/2042

    111,485   
    163,613     

4.00%, 09/01/2042

    175,990   
    92,310     

4.00%, 07/01/2044

    99,429   
    675,000     

4.00%, 05/01/2045 (13)

    720,288   
    700,000     

4.00%, 06/01/2045 (13)

    745,981   
    1,200,000     

4.50%, 05/01/2045 (13)

    1,304,700   
    100,000     

5.00%, 05/01/2045 (13)

    111,082   
    663,427     

5.50%, 12/01/2037

    748,045   
    759,912     

5.50%, 01/01/2039

    857,345   
     

 

 

 
        11,578,905   
     

 

 

 
            FNMA - 22.8%  
    571,953     

2.14%, 11/01/2022

    570,260   
    423,417     

2.15%, 10/01/2022

    422,600   
    195,034     

2.20%, 12/01/2022

    195,190   
    114,800     

2.28%, 11/01/2022

    115,003   
    100,733     

2.34%, 11/01/2022

    101,271   
    90,348     

2.40%, 10/01/2022

    90,887   
    76,341     

2.42%, 11/01/2022

    76,867   
    5,000     

2.44%, 01/01/2023

    5,016   
    81,502     

2.47%, 11/01/2022

    82,300   
    1,350,000     

2.50%, 05/01/2030 (13)

    1,383,987   
    4,802     

2.66%, 09/01/2022

    4,908   
    305,000     

2.66%, 03/01/2027

    304,965   
    310,000     

2.66%, 03/01/2027

    309,964   
    55,000     

2.76%, 05/01/2021

    57,008   
    9,451     

2.78%, 04/01/2022

    9,774   
    235,000     

2.78%, 02/01/2027

    237,586   
    123,000     

2.78%, 03/01/2027

    124,323   
    9,450     

2.98%, 01/01/2022

    9,883   
    200,000     

3.00%, 05/01/2030 (13)

    209,287   
    1,885,000     

3.00%, 05/01/2045 (13)

    1,918,028   
    30,000     

3.16%, 12/01/2026

    31,400   
    4,804     

3.20%, 04/01/2022

    5,087   
    50,000     

3.21%, 05/01/2023

    52,816   
    25,200     

3.24%, 12/01/2026

    26,542   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  176  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 41.1% - (continued)  
            FNMA - 22.8% - (continued)  
  $        80,000     

3.24%, 12/01/2026

  $ 82,965   
    49,320     

3.26%, 05/01/2024

    52,145   
    275,000     

3.30%, 11/01/2026

    288,468   
    198,910     

3.30%, 12/01/2026

    209,926   
    25,083     

3.34%, 04/01/2024

    26,686   
    9,962     

3.45%, 01/01/2024

    10,661   
    9,893     

3.47%, 01/01/2024

    10,602   
    8,900,000     

3.50%, 05/01/2045 (13)

    9,324,140   
    24,608     

3.67%, 08/01/2023

    26,803   
    5,000     

3.70%, 10/01/2023

    5,455   
    10,000     

3.76%, 03/01/2024

    10,936   
    15,000     

3.86%, 12/01/2025

    16,497   
    5,000     

3.86%, 11/01/2023

    5,531   
    24,475     

3.87%, 10/01/2025

    26,976   
    34,694     

3.89%, 05/01/2030

    38,196   
    35,000     

3.93%, 10/01/2023

    38,818   
    9,880     

3.96%, 05/01/2034

    11,053   
    10,000     

3.97%, 05/01/2029

    11,173   
    600,000     

4.00%, 05/01/2030 (13)

    633,281   
    70,059     

4.00%, 08/01/2042

    75,461   
    1,225,000     

4.00%, 05/01/2045 (13)

    1,309,003   
    900,000     

4.00%, 06/01/2045 (13)

    960,451   
    97,989     

4.02%, 11/01/2028

    109,814   
    48,995     

4.02%, 11/01/2028

    54,907   
    19,395     

4.06%, 10/01/2028

    21,806   
    3,800,000     

4.50%, 05/01/2045 (13)

    4,135,765   
    500,000     

5.00%, 05/13/2045

    556,887   
    317,384     

5.50%, 06/25/2042 (6)

    51,023   
    295,211     

6.00%, 09/01/2039

    336,892   
     

 

 

 
        24,787,273   
     

 

 

 
            GNMA - 7.6%  
    1,100,000     

3.00%, 05/01/2045 (13)

    1,130,078   
    1,200,000     

3.50%, 05/01/2045 (13)

    1,264,734   
    500,000     

3.50%, 05/01/2045 (13)

    527,461   
    300,000     

3.50%, 06/01/2045 (13)

    315,469   
    300,000     

3.50%, 06/01/2045 (13)

    315,680   
    800,000     

4.00%, 05/01/2045 (13)

    864,100   
    800,000     

4.00%, 05/01/2045 (13)

    854,844   
    849,739     

4.50%, 09/20/2041

    924,232   
    172,373     

5.00%, 06/15/2041

    192,797   
    221,136     

5.00%, 10/16/2041 (6)

    40,370   
    351,675     

5.00%, 03/15/2044

    394,387   
    400,000     

5.00%, 05/01/2045 (13)

    447,182   
    3,027     

6.00%, 08/15/2032

    3,451   
    260,660     

6.00%, 06/15/2036

    302,026   
    72,122     

6.00%, 08/15/2036

    82,083   
    57,908     

6.00%, 12/15/2038

    65,906   
    54,454     

6.00%, 01/15/2039

    61,974   
    123,950     

6.00%, 01/15/2039

    141,069   
    193,874     

6.00%, 12/15/2040

    220,650   
    100,000     

6.00%, 05/01/2045 (13)

    113,750   
     

 

 

 
        8,262,243   
     

 

 

 
   

Total U.S. Government Agencies
(cost $44,504,857)

  $ 44,628,421   
     

 

 

 
     
U.S. GOVERNMENT SECURITIES - 11.0%  
            U.S. Treasury Securities - 11.0%  
            U.S. Treasury Bonds - 0.8%  
    89,177     

0.25%, 01/15/2025 (9)

  $ 90,320   
    124,505     

2.38%, 01/15/2025 (9)

    151,410   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT SECURITIES - 11.0% - (continued)  
            U.S. Treasury Securities - 11.0% - (continued)  
            U.S. Treasury Bonds - 0.8% - (continued)  
  $        150,000     

2.50%, 02/15/2045

  $ 142,500   
    103,000     

2.88%, 05/15/2043

    105,535   
    70,000     

3.13%, 02/15/2042

    75,299   
    100,000     

3.13%, 08/15/2044

    107,695   
    89,000     

3.50%, 02/15/2039

    101,808   
    53,000     

5.38%, 02/15/2031

    73,918   
     

 

 

 
        848,485   
     

 

 

 
            U.S. Treasury Notes - 10.2%  
    505,039     

0.13%, 04/15/2016 (9)

    511,234   
    258,318     

0.13%, 04/15/2017 (9)

    263,827   
    203,052     

0.13%, 04/15/2018 (9)

    207,890   
    75,118     

0.13%, 04/15/2019 (9)

    76,837   
    215,497     

0.13%, 04/15/2020 (9)

    219,857   
    202,197     

0.13%, 01/15/2022 (9)

    204,567   
    178,596     

0.13%, 07/15/2022 (9)

    181,359   
    254,188     

0.13%, 01/15/2023 (9)

    256,292   
    148,259     

0.13%, 07/15/2024 (9)

    149,092   
    136,143     

0.38%, 07/15/2023 (9)

    140,238   
    260,320     

0.63%, 07/15/2021 (9)

    273,601   
    160,931     

0.63%, 01/15/2024 (9)

    168,550   
    160,928     

1.13%, 01/15/2021 (9)

    173,148   
    134,516     

1.25%, 07/15/2020 (9)

    146,297   
    136,041     

1.38%, 07/15/2018 (9)

    145,925   
    135,660     

1.38%, 01/15/2020 (9)

    147,043   
    84,019     

1.63%, 01/15/2018 (9)

    89,703   
    82,436     

1.88%, 07/15/2019 (9)

    91,079   
    266,049     

2.00%, 01/15/2016 (9)

    272,721   
    136,638     

2.13%, 01/15/2019 (9)

    150,622   
    203,658     

2.38%, 01/15/2017 (9)

    215,909   
    203,368     

2.50%, 07/15/2016 (9)

    213,631   
    169,854     

2.63%, 07/15/2017 (9)

    184,597   
    225,000     

0.50%, 02/28/2017

    224,877   
    375,000     

0.88%, 07/31/2019

    368,408   
    200,000     

1.00%, 03/15/2018

    200,594   
    2,775,000     

1.00%, 05/31/2018 (14)

    2,778,036   
    215,000     

1.38%, 02/28/2019

    216,361   
    225,000     

1.38%, 02/29/2020

    224,473   
    150,000     

1.75%, 02/28/2022

    149,566   
    125,000     

2.25%, 11/15/2024

    127,315   
    200,000     

2.50%, 05/15/2024

    208,234   
    2,065,000     

3.25%, 03/31/2017 (15)(16)

    2,169,863   
     

 

 

 
        11,151,746   
     

 

 

 
   

Total U.S. Government Securities
(cost $11,890,359)

  $ 12,000,231   
     

 

 

 
     
PREFERRED STOCKS - 0.1%  
            Diversified Financials - 0.1%  
    30     

Citigroup Capital

  $ 777   
    2,150     

GMAC Capital Trust I Series 2

    56,502   
     

 

 

 
   

Total Preferred Stocks
(cost $55,122)

  $ 57,279   
     

 

 

 
   

Total Long-Term Investments
(cost $137,537,173)

  $ 137,363,942   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

177

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

SHORT-TERM INVESTMENTS - 1.8%  
          Other Investment Pools & Funds - 1.8%  
  $        1,998,698     

Fidelity Money Market Class 1

     $ 1,998,698   
        

 

 

 
   

Total Short-Term Investments
(cost $1,998,698)

     $ 1,998,698   
        

 

 

 
   

Total Investments Excluding Purchased Options
(cost $139,535,871)

    128.2    $     139,362,640   
   

Total Purchased Options
(cost $73,775)

    0.0    $ 33,768   
     

 

 

    

 

 

 
   

Total Investments
(cost $139,609,646) ^

    128.2    $ 139,396,408   
   

Other Assets and Liabilities

    (28.2 )%       (30,689,094
     

 

 

    

 

 

 
   

Total Net Assets

    100.0    $ 108,707,314   
     

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

178

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^  At April 30, 2015, the cost of securities for federal income tax purposes was $139,621,824 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     2,226,154   

Unrealized Depreciation

     (2,451,570
  

 

 

 

Net Unrealized Depreciation

   $ (225,416
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $21,431,079, which represents 19.7% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $879,608 at April 30, 2015.

 

(4)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $0, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(5)  Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal.

 

(6)  Securities disclosed are interest-only strips.

 

(7)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(8)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $7,816,128, which represents 7.2% of total net assets.

 

(9)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(10)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

(11)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(12)  This security, or a portion of this security, has unfunded loan commitments. As of April 30, 2015, the aggregate value of the unfunded commitment was $90,275, which rounds to zero percent of total net assets.

 

(13)  Represents or includes a TBA transaction.

 

(14)  This security, or a portion of this security, has been pledged as collateral in connection with OTC swap contracts

 

(15)  This security, or a portion of this security, has been pledged as collateral in connection with centrally cleared swap contracts.

 

(16)  This security, or a portion of this security, has been pledged as collateral in connection with futures contracts.

 

The accompanying notes are an integral part of these financial statements.

 

 

179

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
  Exercise Price/
FX Rate/ Rate
    Expiration
Date
    Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

               

Calls

               

BRL Call/USD Put

  JPM     2.42 BRL per USD        09/28/15        BRL        70,000      $ 9      $ 498      $ (489

BRL Call/USD Put

  JPM     2.42 BRL per USD        09/28/15        BRL        650,000        90        1,010        (920

BRL Call/USD Put

  BOA     2.97 BRL per USD        06/02/15        BRL        1,090,000            5,008            8,466            (3,458

CNY Call/USD Put

  DEUT     6.15 CNY per USD        05/07/15        CNY        11,852,500        854        4,047        (3,193

EUR Call/USD Put

  BOA     1.14 EUR per USD        08/20/15        EUR        195,000        3,714        6,262        (2,548

EUR Call/USD Put

  BNP     1.12 EUR per USD        06/02/15        EUR        255,000        5,575        4,066        1,509   

EUR Call/USD Put

  BOA     1.27 EUR per USD        01/07/16        EUR        2,190,000        5,646        32,661        (27,015

HKD Call/USD Put

  GSC     7.75 HKD per USD        03/01/16        HKD        2,385,000        1,009        1,043        (34

MYR Call/USD Put

  GSC     3.65 MYR per USD        05/22/15        MYR        800,000        5,137        4,746        391   

RUB Call/USD Put

  BOA     51.49 RUB per USD        05/14/15        RUB        2,000,000        950        1,287        (337

RUB Call/USD Put

  GSC     36.97 RUB per USD        09/02/15        RUB        11,000,000        326        3,977        (3,651

TRY Call/USD Put

  BOA     2.72 TRY per USD        06/29/15        TRY        570,000        5,450        5,712        (262
         

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

            33,057,500      $        33,768      $        73,775      $     (40,007
         

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

            33,057,500      $ 33,768      $ 73,775      $ (40,007
         

 

 

   

 

 

   

 

 

   

 

 

 
OTC Swaption Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
  Exercise Price/ FX
Rate/ Rate
    Expiration
Date
    Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

               

Calls

               

Credit Default Swaption ITRAXX.EUR.23

  CSI     287.50 EUR        05/20/15        EUR        (5,105,000   $ (64,441     (54,815   $ (9,626

Credit Default Swaption ITRAXX.EUR.23

  BOA     262.50 EUR        05/20/15        EUR        (3,555,000     (14,152     (37,877     23,725   

Interest Rate Swaption USD

  BNP     2.67% USD        04/14/25        USD        (275,000     (36,776     (40,314     3,538   
         

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

            (8,935,000   $ (115,369   $ (133,006   $ 17,637   
         

 

 

   

 

 

   

 

 

   

 

 

 

Written swaption contracts:

               

Puts

               

Credit Default Swaption ITRAXX.EUR.23

  CSI     287.50 EUR        05/20/15        EUR        (5,105,000   $ (27,420     (43,852   $ 16,432   

Credit Default Swaption ITRAXX.EUR.23

  BOA     262.50 EUR        05/20/15        EUR        (3,555,000     (38,728     (30,112     (8,616

Interest Rate Swaption USD

  BNP     2.67% USD        04/14/25        USD        (275,000     (41,248     (40,315     (933
         

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

            (8,935,000   $ (107,396   $ (114,279   $ 6,883   
         

 

 

   

 

 

   

 

 

   

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Long Gilt Future

     15         06/26/2015       $ 2,723,335       $ 2,719,712       $ (3,623

U.S. Treasury 5-Year Note Future

     95         06/30/2015         11,455,217         11,412,618         (42,599

U.S. Treasury CME Ultra Long Term Bond Future

     3         06/19/2015         509,536         493,500         (16,036
              

 

 

 

Total

               $ (62,258
              

 

 

 

Short position contracts:

              

90-Day Euro Future

     44         12/14/2015       $     10,934,459       $     10,932,900       $ 1,559   

Euro-Bund Future

     8         06/08/2015         1,416,038         1,407,605         8,433   

U.S. Treasury 10-Year Note Future

     210         06/19/2015         27,027,445         26,958,750         68,695   

U.S. Treasury 2-Year Note Future

     52         06/30/2015         11,404,977         11,401,812         3,165   

U.S. Treasury Long Bond Future

     6         06/19/2015         963,560         957,563         5,997   
              

 

 

 

Total

               $     87,849   
              

 

 

 

Total futures contracts

               $ 25,591   
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

180

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

TBA Sale Commitments Outstanding at April 30, 2015

Description

   Principal
Amount
     Maturity Date      Market Value *      Unrealized
Appreciation/
(Depreciation)
 

FHLMC, 5.50%

   $ 300,000         05/01/2045       $ 338,553       $ (1,006

FNMA, 3.00%

     900,000         05/01/2030         941,794         535   

FNMA, 3.00%

         1,725,000         05/01/2045         1,755,224         1,846   

FNMA, 3.50%

     500,000         05/01/2030         530,781         234   

FNMA, 4.00%

     1,500,000         05/01/2045         1,602,861         (1,611

FNMA, 4.50%

     1,400,000         06/01/2045         1,521,953         (2,297

FNMA, 5.50%

     300,000         05/01/2045         339,629         (442

GNMA, 3.00%

     200,000         05/01/2045         205,637         895   

GNMA, 3.50%

     1,200,000         05/01/2045         1,264,734         1,008   

GNMA, 4.00%

     800,000         05/01/2045         854,844         (1,719

GNMA, 4.50%

     200,000         05/01/2045         220,352         (39

GNMA, 4.50%

     1,000,000         05/01/2045         1,083,633         (39
        

 

 

    

 

 

 

Total

         $     10,659,995       $     (2,635
        

 

 

    

 

 

 

At April 30, 2015, the aggregate market value of these securities represents (9.8)% of total net assets.

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

                 

Buy protection:

                 

ABX.HE.AA.06-1

  JPM     USD        119,696      (0.32%)     07/25/45      $ 31,420      $      $ 24,598      $ (6,822

ABX.HE.AAA.06-1

  JPM     USD        38,492      (0.18%)     07/25/45        722               731        9   

ABX.HE.AAA.06-1

  MSC     USD        8,248      (0.18%)     07/25/45        167               157        (10

ABX.HE.AAA.06-1

  JPM     USD        2,749      (0.18%)     07/25/45        69               53        (16

ABX.HE.AAA.06-1

  JPM     USD        1,375      (0.18%)     07/25/45        53               26        (27

ABX.HE.AAA.06-1

  JPM     USD        9,623      (0.18%)     07/25/45        234               184        (50

ABX.HE.AAA.06-1

  JPM     USD        6,874      (0.18%)     07/25/45        184               131        (53

ABX.HE.AAA.06-1

  MSC     USD        20,621      (0.18%)     07/25/45        612               392        (220

ABX.HE.AAA.06-1

  BOA     USD        13,747      (0.18%)     07/25/45        748               262        (486

ABX.HE.AAA.06-1

  BCLY     USD        8,248      (0.18%)     07/25/45        768               158        (610

ABX.HE.AAA.06-1

  MSC     USD        12,373      (0.18%)     07/25/45        1,257               236        (1,021

ABX.HE.AAA.06-1

  GSC     USD        24,745      (0.18%)     07/25/45        2,227               469        (1,758

ABX.HE.AAA.06-2

  BOA     USD        344,313      (0.11%)     05/25/46        71,103               65,362        (5,741

ABX.HE.AAA.07

  MSC     USD        98,078      (0.09%)     08/25/37        24,913               23,241        (1,672

ABX.HE.AAA.07-1

  MSC     USD        171,636      (0.09%)     08/25/37        41,399               40,673        (726

ABX.HE.AAA.07-1

  MSC     USD        298,319      (0.09%)     08/25/37        71,972               70,693        (1,279

ABX.HE.AAA.07-1

  GSC     USD        114,424      (0.09%)     08/25/37        28,418               27,115        (1,303

ABX.HE.AAA.07-1

  JPM     USD        85,818      (0.09%)     08/25/37        22,108               20,337        (1,771

ABX.HE.AAA.07-1

  CSI     USD        290,146      (0.09%)     08/25/37        82,857               68,757        (14,100

ABX.HE.PENAAA.06-2

  JPM     USD        54,081      (0.11%)     05/25/46        7,343               6,574        (769

ABX.HE.PENAAA.06-2

  JPM     USD        51,308      (0.11%)     05/25/46        9,931               6,237        (3,694

ABX.HE.PENAAA.06-2

  BCLY     USD        30,507      (0.11%)     05/25/46        8,724               3,708        (5,016

ABX.HE.PENAAA.06-2

  MSC     USD        183,044      (0.11%)     05/25/46        40,041               22,249        (17,792

ABX.HE.PENAAA.06-2

  GSC     USD        169,177      (0.11%)     05/25/46        42,294               20,564        (21,730

ABX.HE.PENAAA.06-2

  JPM     USD        177,497      (0.11%)     05/25/46        46,593               21,575        (25,018

CDX.EM.22

  BNP     USD        335,000      (1.00%)     12/20/19        38,314               35,717        (2,597

CDX.EM.22

  DEUT     USD        1,090,000      (1.00%)     12/20/19        122,621               116,214        (6,407

CDX.EM.22

  GSC     USD        3,419,000      (1.00%)     12/20/19            403,268                   364,434            (38,834

CMBX.NA.A.7

  JPM     USD        205,000      (2.00%)     01/17/47                   (4,247     (934     3,313   

CMBX.NA.A.7

  JPM     USD        45,000      (2.00%)     01/17/47               (87     (205     (118

CMBX.NA.AA.2

  CSI     USD        226,283      (0.15%)     03/15/49        69,473               72,405        2,932   

CMBX.NA.AA.2

  CSI     USD        212,140      (0.15%)     03/15/49        67,256               67,879        623   

CMBX.NA.AA.2

  CSI     USD        37,714      (0.15%)     03/15/49        11,643               12,067        424   

CMBX.NA.AA.2

  MSC     USD        127,284      (0.15%)     03/15/49        50,782               40,728        (10,054

 

The accompanying notes are an integral part of these financial statements.

 

 

  181  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices: - (continued)

                 

Buy protection: - (continued)

                 

CMBX.NA.AA.2

  BOA     USD        183,855      (0.15%)     03/15/49      $ 69,693      $      $ 58,829      $ (10,864

CMBX.NA.AA.2

  BOA     USD        216,854      (0.15%)     03/15/49        82,202               69,388        (12,814

CMBX.NA.AA.2

  JPM     USD        273,425      (0.15%)     03/15/49        102,789                   87,489            (15,300

CMBX.NA.AA.7

  CSI     USD        185,000      (1.50%)     01/17/47                   (1,689     (630     1,059   

CMBX.NA.AA.7

  MSC     USD        105,000      (1.50%)     01/17/47               (1,244     (358     886   

CMBX.NA.AA.7

  MSC     USD        120,000      (1.50%)     01/17/47               (1,040     (409     631   

CMBX.NA.AA.7

  CSI     USD        70,000      (1.50%)     01/17/47               (774     (239     535   

CMBX.NA.AA.7

  CSI     USD        315,000      (1.50%)     01/17/47               (76     (1,074     (998

CMBX.NA.AA.7

  CSI     USD        180,000      (1.50%)     01/17/47        711               (614     (1,325

CMBX.NA.AA.7

  CSI     USD        170,000      (1.50%)     01/17/47        793               (580     (1,373

CMBX.NA.AA.7

  CSI     USD        170,000      (1.50%)     01/17/47        923               (580     (1,503

CMBX.NA.AJ.1

  JPM     USD        10,000      (0.84%)     10/12/52        440               151        (289

CMBX.NA.AJ.1

  JPM     USD        95,000      (0.84%)     10/12/52        1,839               1,439        (400

CMBX.NA.AJ.1

  MSC     USD        140,000      (0.84%)     10/12/52        9,800               2,121        (7,679

CMBX.NA.AJ.1

  JPM     USD        145,000      (0.84%)     10/12/52        10,245               2,196        (8,049

CMBX.NA.AJ.2

  GSC     USD        99,167      (1.09%)     03/15/49        7,377               8,238        861   

CMBX.NA.AJ.2

  CSI     USD        242,960      (1.09%)     03/15/49        19,794               20,182        388   

CMBX.NA.AJ.2

  JPM     USD        89,251      (1.09%)     03/15/49        7,504               7,414        (90

CMBX.NA.AJ.2

  DEUT     USD        307,418      (1.09%)     03/15/49        27,497               25,537        (1,960

CMBX.NA.AJ.3

  GSC     USD        123,927      (1.47%)     12/13/49        24,038               22,770        (1,268

CMBX.NA.AJ.4

  GSC     USD        154,388      (0.96%)     02/17/51        26,152               28,218        2,066   

CMBX.NA.AJ.4

  MSC     USD        164,349      (0.96%)     02/17/51        28,477               30,039        1,562   

CMBX.NA.AJ.4

  GSC     USD        99,605      (0.96%)     02/17/51        16,743               18,206        1,463   

CMBX.NA.AJ.4

  GSC     USD        99,605      (0.96%)     02/17/51        17,180               18,206        1,026   

CMBX.NA.AJ.4

  CSI     USD        104,585      (0.96%)     02/17/51        18,301               19,116        815   

CMBX.NA.AJ.4

  GSC     USD        104,585      (0.96%)     02/17/51        19,356               19,115        (241

CMBX.NA.AJ.4

  CSI     USD        204,191      (0.96%)     02/17/51        37,792               37,321        (471

CMBX.NA.AJ.4

  CSI     USD        159,368      (0.96%)     02/17/51        29,884               29,129        (755

CMBX.NA.AJ.4

  CSI     USD        69,724      (0.96%)     02/17/51        13,750               12,744        (1,006

CMBX.NA.AJ.4

  MSC     USD        94,625      (0.96%)     02/17/51        18,886               17,296        (1,590

CMBX.NA.AJ.4

  MSC     USD        99,606      (0.96%)     02/17/51        19,881               18,206        (1,675

CMBX.NA.AJ.4

  DEUT     USD        199,211      (0.96%)     02/17/51        38,343               36,411        (1,932

CMBX.NA.AJ.4

  MSC     USD        34,862      (0.96%)     02/17/51        10,306               6,372        (3,934

CMBX.NA.AJ.4

  JPM     USD        438,265      (0.96%)     02/17/51        86,332               80,105        (6,227

CMBX.NA.AJ.4

  MSC     USD        224,112      (0.96%)     02/17/51        87,633               40,962        (46,671

CMBX.NA.AM.2

  JPM     USD        35,000      (0.50%)     03/15/49        1,138               157        (981

CMBX.NA.AM.2

  JPM     USD        375,000      (0.50%)     03/15/49        2,743               1,682        (1,061

CMBX.NA.AM.2

  DEUT     USD        170,000      (0.50%)     03/15/49        9,775               763        (9,012

CMBX.NA.AM.2

  CSI     USD        425,000      (0.50%)     03/15/49        26,031               1,906        (24,125

CMBX.NA.AM.2

  MSC     USD        575,000      (0.50%)     03/15/49        28,380               2,579        (25,801

CMBX.NA.AM.4

  CSI     USD        55,000      (0.50%)     02/17/51        1,551               1,234        (317

CMBX.NA.AM.4

  JPM     USD        20,000      (0.50%)     02/17/51        1,601               449        (1,152

CMBX.NA.AM.4

  GSC     USD        160,000      (0.50%)     02/17/51        25,100               3,591        (21,509

CMBX.NA.AS.6

  CSI     USD        145,000      (1.00%)     05/11/63        1,192               (72     (1,264

CMBX.NA.AS.6

  CSI     USD        455,000      (1.00%)     05/11/63        6,000               (224     (6,224

CMBX.NA.AS.7

  CSI     USD        45,000      (1.00%)     01/17/47        781               305        (476

CMBX.NA.AS.7

  CSI     USD        70,000      (1.00%)     01/17/47        1,124               475        (649

CMBX.NA.AS.7

  GSC     USD        195,000      (1.00%)     01/17/47        4,531               1,322        (3,209

CMBX.NA.AS.7

  CSI     USD        240,000      (1.00%)     01/17/47        5,600               1,628        (3,972
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     2,249,722      $ (9,157   $ 1,861,298      $     (379,267
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

                 

CMBX.BB.7

  CSI     USD        285,000      5.00%     01/17/47      $      $ (4,403   $ (2,489   $ 1,914   

CMBX.NA.A.2

  JPM     USD        36,478      0.25%     03/15/49               (23,701     (23,223     478   

CMBX.NA.A.2

  BOA     USD        117,541      0.25%     03/15/49               (67,056     (74,830     (7,774

CMBX.NA.AAA.6

  CSI     USD        7,860,000      0.50%     05/11/63               (187,987         (105,337     82,650   

 

The accompanying notes are an integral part of these financial statements.

 

 

  182  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices: - (continued)

                 

Sell protection: - (continued)

                 

CMBX.NA.AAA.6

  UBS     USD        3,125,000      0.50%     05/11/63      $      $     (122,603   $ (41,880   $ 80,723   

CMBX.NA.AAA.6

  JPM     USD        975,000      0.50%     05/11/63               (32,120     (13,066     19,054   

CMBX.NA.AAA.6

  DEUT     USD        965,000      0.50%     05/11/63               (23,522     (12,933     10,589   

CMBX.NA.AAA.6

  CSI     USD        1,245,000      0.50%     05/11/63               (24,978     (16,685     8,293   

CMBX.NA.AAA.6

  MSC     USD        960,000      0.50%     05/11/63               (20,969     (12,866     8,103   

CMBX.NA.AAA.6

  CSI     USD        865,000      0.50%     05/11/63               (19,389     (11,593     7,796   

CMBX.NA.AAA.6

  BOA     USD        365,000      0.50%     05/11/63               (9,538     (4,891     4,647   

CMBX.NA.AAA.6

  CSI     USD        515,000      0.50%     05/11/63               (10,034     (6,901     3,133   

CMBX.NA.AAA.6

  UBS     USD        235,000      0.50%     05/11/63               (5,299     (3,150     2,149   

CMBX.NA.AAA.6

  MSC     USD        666,000      0.50%     05/11/63               (9,766     (8,639     1,127   

CMBX.NA.AAA.6

  UBS     USD        40,000      0.50%     05/11/63               (1,066     (536     530   

CMBX.NA.AAA.6

  DEUT     USD        276,500      0.50%     05/11/63               (4,182     (3,705     477   

CMBX.NA.AAA.7

  CSI     USD        175,000      0.50%     01/17/47               (4,914     (4,110     804   

CMBX.NA.AAA.7

  BOA     USD        290,000      0.50%     01/17/47               (7,058     (6,788     270   

CMBX.NA.AAA.7

  CSI     USD        120,000      0.50%     01/17/47               (3,073     (2,818     255   

CMBX.NA.BB.6

  CSI     USD        60,000      5.00%     10/17/57               (3,664     (3,369     295   

CMBX.NA.BB.6

  MSC     USD        655,000      5.00%     05/11/63               (41,949     6,311        48,260   

CMBX.NA.BB.6

  BOA     USD        380,000      5.00%     05/11/63               (3,627     3,662        7,289   

CMBX.NA.BB.6

  CSI     USD        550,000      5.00%     05/11/63        3,756               5,300        1,544   

CMBX.NA.BB.6

  CSI     USD        204,000      5.00%     05/11/63        3,468               1,979        (1,489

CMBX.NA.BB.7

  CSI     USD        155,000      5.00%     01/17/47               (7,663     (1,354     6,309   

CMBX.NA.BB.7

  CSI     USD        180,000      5.00%     01/17/47               (6,047     (1,572     4,475   

CMBX.NA.BB.7

  BOA     USD        105,000      5.00%     01/17/47               (4,846     (917     3,929   

CMBX.NA.BB.7

  DEUT     USD        155,000      5.00%     01/17/47               (3,934     (1,354     2,580   

CMBX.NA.BB.7

  CSI     USD        45,000      5.00%     01/17/47               (2,463     (393     2,070   

CMBX.NA.BB.8

  BOA     USD        145,000      5.00%     10/17/57               (10,479     (8,142     2,337   

CMBX.NA.BB.8

  CSI     USD        45,000      5.00%     10/17/57               (3,279     (2,527     752   

CMBX.NA.BB.8

  CSI     USD        60,000      5.00%     10/17/57               (3,797     (3,369     428   

CMBX.NA.BB.8

  GSC     USD        60,000      5.00%     10/17/57               (3,170     (3,369     (199

CMBX.NA.BB.8

  GSC     USD        125,000      5.00%     10/17/57               (6,697     (7,036     (339

PrimeX.ARM.2

  MSC     USD        280,935      4.58%     12/25/37               (21,970     11,872        33,842   

PrimeX.ARM.2

  JPM     USD        99,370      4.58%     12/25/37        3,040               4,186        1,146   

PrimeX.ARM.2

  MSC     USD        35,086      4.58%     12/25/37        1,172               1,483        311   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 11,436      $ (705,243   $ (355,049   $ 338,758   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

            $ 2,261,158      $ (714,400   $ 1,506,249      $ (40,509
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Buy protection:

                 

Brazil (Federative Republic of)

  GSC     USD        30,000      (1.00%)/2.21%     12/20/19      $ 1,212      $      $ 1,555      $ 343   

Brazil (Federative Republic of)

  JPM     USD        70,000      (1.00%)/2.21%     12/20/19        3,295               3,609        314   

Russia (Federation of)

  GSC     USD        30,000      (1.00%)/3.51%     12/20/19        6,039               3,102        (2,937
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 10,546      $      $ 8,266      $ (2,280
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Sell protection:

                 

Bank of America Corp.

  GSC     USD        2,200,000      1.00%/0.33%     09/20/17      $      $ (152,993   $ 37,678      $ 190,671   

Bank of America Corp.

  CSI     USD        945,000      1.00%/0.36%     12/20/17               (20,214     17,053        37,267   

Citigroup, Inc.

  GSC     USD        2,350,000      1.00%/0.41%     09/20/17               (153,017     36,164        189,181   

Citigroup, Inc.

  GSC     USD        785,000      1.00%/0.44%     12/20/17               (14,221     12,493        26,714   

Goldman Sachs Group, Inc.

  UBS     USD        1,100,000      1.00%/0.45%     09/20/17               (81,256     15,601        96,857   

Goldman Sachs Group, Inc.

  CSI     USD        495,000      1.00%/0.49%     12/20/17               (15,167     7,205        22,372   

Morgan Stanley

  BCLY     USD        1,100,000      1.00%/0.45%     09/20/17               (123,186     15,772        138,958   

Morgan Stanley

  GSC     USD        520,000      1.00%/0.48%     12/20/17               (26,468     7,692        34,160   

Penerbangan Malaysia Bhd

  JPM     USD        110,000      1.00%/1.21%     06/20/20               (1,268     (1,031     237   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $      $ (587,790   $ 148,627      $ 736,417   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 10,546      $ (587,790   $ 156,893      $ 734,137   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $     2,271,704      $     (1,302,190   $     1,663,142      $     693,628   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

183

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
  Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Buy protection:

             

CDX.NA.HY.24

    USD        938,000        (5.00 %)    06/20/20   $ (69,807   $ (72,082   $ (2,275

ITRAXX.EUR.23

    EUR        1,207,000        (1.00 %)    06/20/20     (25,557     (29,358     (3,801

ITRAXX.XOV.22

    EUR        2,835,000        (5.00 %)    12/20/19     (230,719     (327,838     (97,119
         

 

 

   

 

 

   

 

 

 

Total

          $ (326,083   $ (429,278   $ (103,195
         

 

 

   

 

 

   

 

 

 

Credit default swaps on indices:

             

Sell protection:

             

CDX.NA.IG.23

    USD        5,285,500        1.00   12/20/19   $ 92,967      $ 92,606      $ (361

CDX.NA.IG.24

    USD        105,000        1.00   06/20/20     1,914        1,976        62   

ITRAXX.XOV.23

    EUR        335,000        5.00   06/20/20     37,256        40,209        2,953   
         

 

 

   

 

 

   

 

 

 

Total

          $ 132,137      $ 134,791      $ 2,654   
         

 

 

   

 

 

   

 

 

 

Total

          $     (193,946   $     (294,487   $     (100,541
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

DEUT

   1.46% Fixed    CPURNSA      USD         4,170,000         03/02/17       $       $       $ 895      $ 895   

DEUT

   1.48% Fixed    CPURNSA      USD         1,940,000         03/02/17                         (265     (265

BCLY

   1.53% Fixed    CPURNSA      USD         2,051,000         03/03/17                         (1,971     (1,971

DEUT

   1.98% Fixed    CPURNSA      USD         3,085,000         04/02/25                         39,582        39,582   
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $     —       $     —       $     38,241      $     38,241   
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

   Counter-
party
   Notional
Amount
    

Payments received
(paid) by the Fund

   Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM Corp EMBI

   JPM    USD      3,400,000       3M LIBOR - 1.25%      06/24/15       $     —       $     —       $     (142,750   $     (142,750
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/29/15       GSC    $     404,401       $     411,614       $     7,213   

AUD

   Sell      05/29/15       GSC      410,298         402,923         7,375   

AUD

   Sell      05/29/15       CBA      410,317         408,453         1,864   

 

The accompanying notes are an integral part of these financial statements.

 

 

  184  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Sell      05/29/15       BOA    $ 202,977       $ 204,622       $ (1,645

AUD

   Sell      05/29/15       BOA      202,184         203,831         (1,647

BRL

   Buy      05/05/15       GSC      58,458         57,981         (477

BRL

   Buy      05/05/15       UBS      169,304         162,346         (6,958

BRL

   Buy      06/02/15       GSC      163,882         167,319         3,437   

BRL

   Sell      05/05/15       UBS      58,458         57,981         477   

BRL

   Sell      05/05/15       GSC      55,777         57,981         (2,204

BRL

   Sell      05/05/15       UBS      97,934         104,366         (6,432

BRL

   Sell      06/02/15       UBS      167,705         160,757         6,948   

CAD

   Buy      05/29/15       TDB      205,061         206,298         1,237   

CAD

   Buy      05/29/15       BMO      204,272         205,470         1,198   

CAD

   Buy      05/29/15       CBA      404,379         404,311         (68

CAD

   Buy      05/29/15       BOA      823,815         816,906         (6,909

CAD

   Buy      06/17/15       RBC      233,784         231,922         (1,862

CAD

   Sell      06/17/15       TDB      221,987         231,922         (9,935

CHF

   Sell      05/29/15       BOA      784,239         797,223         (12,984

CHF

   Sell      05/29/15       UBS      845,767         873,404         (27,637

COP

   Buy      06/17/15       SCB      228,773         250,883         22,110   

COP

   Buy      06/17/15       SSG      55,959         58,678         2,719   

COP

   Sell      06/17/15       BOA      37,717         41,557         (3,840

COP

   Sell      06/17/15       JPM      41,373         46,128         (4,755

COP

   Sell      06/17/15       JPM      53,121         58,677         (5,556

COP

   Sell      06/17/15       UBS      71,349         78,543         (7,194

COP

   Sell      06/17/15       SCB      123,040         136,525         (13,485

CZK

   Sell      06/17/15       BNP      162,999         165,377         (2,378

EUR

   Buy      05/04/15       DEUT      4,067         4,109         42   

EUR

   Buy      05/29/15       DEUT      174,908         180,848         5,940   

EUR

   Buy      06/17/15       BOA      313,933         320,215         6,282   

EUR

   Buy      06/17/15       BNP      137,247         140,445         3,198   

EUR

   Buy      06/17/15       BNP      160,789         162,916         2,127   

EUR

   Sell      05/29/15       BOA      789,023         795,286         (6,263

EUR

   Sell      05/29/15       DEUT          4,146,743             4,287,578         (140,835

EUR

   Sell      06/17/15       BCLY      114,040         117,973         (3,933

EUR

   Sell      06/17/15       UBS      163,054         168,534         (5,480

EUR

   Sell      06/17/15       SSG      106,420         112,356         (5,936

EUR

   Sell      06/17/15       NAB      231,754         244,937         (13,183

EUR

   Sell      06/17/15       RBS      231,065         244,936         (13,871

EUR

   Sell      06/17/15       BCLY      432,538         460,660         (28,122

EUR

   Sell      09/18/15       SSG      174,616         151,896         22,720   

EUR

   Sell      03/15/17       BOA      583,903         599,575         (15,672

EUR

   Sell      03/15/17       BOA      311,771         332,461         (20,690

GBP

   Sell      05/29/15       BOA      403,107         400,549         2,558   

GBP

   Sell      05/29/15       GSC      1,257,685         1,284,520         (26,835

GBP

   Sell      06/17/15       BOA      172,452         171,862         590   

HKD

   Sell      03/03/16       GSC      154,110         154,196         (86

IDR

   Buy      06/17/15       DEUT      96,341         96,522         181   

IDR

   Sell      06/17/15       UBS      167,658         172,197         (4,539

INR

   Buy      06/17/15       BCLY      218,193         213,807         (4,386

JPY

   Sell      05/29/15       BOA      548,236         546,219         2,017   

JPY

   Sell      05/29/15       DEUT      138,544         137,961         583   

JPY

   Sell      05/29/15       MSC      404,722         405,495         (773

KZT

   Sell      05/18/15       JPM      119,315         126,488         (7,173

MXN

   Buy      06/17/15       JPM      138,203         136,407         (1,796

MXN

   Buy      06/17/15       JPM      138,345         136,407         (1,938

MXN

   Buy      06/17/15       GSC      288,971         281,260         (7,711

MXN

   Sell      06/17/15       GSC      144,902         140,954         3,948   

MXN

   Sell      06/17/15       BOA      163,871         161,221         2,650   

MXN

   Sell      06/17/15       RBC      323,658         328,094         (4,436

 

The accompanying notes are an integral part of these financial statements.

 

 

  185  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

MXN

   Sell      06/17/15       MSC    $     323,645       $     328,158       $ (4,513

MYR

   Buy      06/17/15       DEUT      86,487         89,467         2,980   

RON

   Buy      06/17/15       BNP      261,186         278,933         17,747   

RON

   Sell      06/17/15       CBK      261,140         278,933         (17,793

RSD

   Buy      09/18/15       SSG      161,242         147,053         (14,189

RUB

   Buy      05/15/15       CSFB      43,930         43,248         (682

RUB

   Sell      05/15/15       JPM      43,011         43,248         (237

TRY

   Sell      06/17/15       SCB      97,087         95,899         1,188   

TRY

   Sell      06/17/15       JPM      196,660         195,488         1,172   

TRY

   Sell      06/17/15       JPM      14,217         14,016         201   

TRY

   Sell      06/17/15       JPM      104,898         106,965         (2,067

UYU

   Sell      06/17/15       HSBC      394,835         396,604         (1,769

ZAR

   Buy      06/17/15       DEUT      163,420         160,947         (2,473

ZAR

   Sell      06/17/15       SSG      172,251         174,124         (1,873

ZAR

   Sell      06/17/15       BCLY      156,850         160,947         (4,097
                 

 

 

 

Total

                  $     (348,615
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CME

   Chicago Mercantile Exchange

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CNY

   Chinese Yuan

COP

   Colombian Peso

CRC

   Costa Rican Colon

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

IDR

   Indonesian Rupiah

INR

   Indian Rupee

JPY

   Japanese Yen

KZT

   Kazakhstani Tenge

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

RON

   New Romanian Leu

RSD

   Serbian Dinar

RUB

   Russian Ruble

TRY

   Turkish Lira

USD

   United States Dollar

UYU

   Uruguayan Peso

ZAR

   South African Rand
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  186  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of
Investments) - (continued)
Index Abbreviations:

ABX.HE

   Markit Asset Backed Security Home Equity

ABX.HE.PEN

   Markit Asset Backed Security Home Equity Penultimate

CDX.EM

   Credit Derivatives Emerging Markets

CDX.NA.HY

   Credit Derivatives North American High Yield

CDX.NA.IG

   Credit Derivatives North American Investment Grade

CMBX.NA

   Markit Commercial Mortgage Backed North American

CPURNSA

   Consumer Price All Urban Non-Seasonally Adjusted

EMBI

   Emerging Markets Bond Index

ITRAXX.EUR

   Markit i Traxx - Europe

ITRAXX.XOV

   Markit i Traxx Index - Europe Crossover

MSCI

   Morgan Stanley Capital International

PrimeX.ARM

   Markit PrimeX Adjustable Rate Mortgage Backed Security
Other Abbreviations:

CLO

   Collateralized Loan Obligation

CME

   Chicago Mercantile Index

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

FHLMC

   Federal Home Loan Mortgage Corp.

FNMA

   Federal National Mortgage Association

GNMA

   Government National Mortgage Association

LIBOR

   London Interbank Offered Rate

MSCI

   Morgan Stanley Capital International

OJSC

   Open Joint Stock Company

OTC

   Over-the-Counter

TBA

   To Be Announced
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  187  

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 30,037,618      $      $ 30,037,618      $   

Corporate Bonds

     23,769,649               23,769,649          

Foreign Government Obligations

     6,998,794               6,998,794          

Municipal Bonds

     1,047,045               1,047,045          

Senior Floating Rate Interests

     18,824,905               18,824,905          

U.S. Government Agencies

     44,628,421               44,628,421          

U.S. Government Securities

     12,000,231               12,000,231          

Preferred Stocks

     57,279        57,279                 

Short-Term Investments

     1,998,698        1,998,698                 

Purchased Options

     33,768               33,768          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     139,396,408      $     2,055,977      $     137,340,431      $     —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 130,702      $      $ 130,702      $   

Futures Contracts (2)

     87,849        87,849                 

Swaps - Credit Default (2)

     1,107,241               1,107,241          

Swaps - Interest Rate (2)

     40,477               40,477          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,366,269      $ 87,849      $ 1,278,420      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (479,317   $      $ (479,317   $   

Futures Contracts (2)

     (62,258     (62,258              

Swaps - Credit Default (2)

     (514,154            (514,154       

Swaps - Interest Rate (2)

     (2,236            (2,236       

Swaps - Total Return (2)

     (142,750            (142,750       

TBA Sale Commitments

     (10,659,995            (10,659,995       

Written Options

     (222,765            (222,765       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (12,083,475   $ (62,258   $ (12,021,217   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, investments valued at $631,673 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

188

 


The Hartford Unconstrained Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial
Mortgage Backed
Securities
    Corporate Bonds     Swaps     Total  

Beginning balance

   $ 4,950,790      $ 281,746      $ 10,744      $ 5,243,280   

Purchases

     644,411                      644,411   

Sales

     (1,415,386         (281,746                (1,697,132

Accrued discounts/(premiums)

     66,415                      66,415   

Total realized gain/(loss)

     203,169                      203,169   

Net change in unrealized appreciation/depreciation

     (161,392                (10,744     (172,136

Transfers into Level 3(1)

                            

Transfers out of Level 3(1)

         (4,288,007                   (4,288,007
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $      $      $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  189  

 


The Hartford World Bond Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     53.8

Aa / AA

     16.0   

A

     1.8   

Baa / BBB

     3.0   

Ba / BB

     6.2   

B

     5.2   

Caa / CCC or Lower

     2.2   

Not Rated

     5.1   

Non-Debt Securities and Other Short-Term Instruments

     2.9   

Other Assets & Liabilities

     3.8   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Convertible Preferred Stocks

     0.1

Preferred Stocks

     0.1   
  

 

 

 

Total

     0.2
  

 

 

 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     13.6

Convertible Bonds

     0.2   

Corporate Bonds

     10.4   

Foreign Government Obligations

     55.8   

Senior Floating Rate Interests

     2.6   

U.S. Government Agencies

     0.7   

U.S. Government Securities

     10.0   
  

 

 

 

Total

     93.3
  

 

 

 

Short-Term Investments

     2.6   

Purchased Options

     0.1   

Other Assets & Liabilities

     3.8   
  

 

 

 

Total

     100.0
  

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

190

 


The Hartford World Bond Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6%  
            Bermuda - 0.0%  
   

Cal Funding II Ltd.

 
  $        495,000     

3.47%, 10/25/2027 (1)

  $ 497,667   
     

 

 

 
            Cayman Islands - 5.1%  
   

A Voce CLO Ltd.

 
    5,000,000     

1.74%, 07/15/2026 (1)(2)

    4,988,500   
   

American Money Management Corp

 
    4,615,000     

1.73%, 07/27/2026 (1)(2)

    4,602,539   
   

Apidos CDO

 
    555,000     

2.13%, 07/15/2023 (1)(2)

    554,334   
   

Apidos CLO

 
    2,900,000     

1.38%, 04/15/2025 (1)(2)

    2,857,950   
    4,500,000     

1.69%, 07/22/2026 (1)(2)

    4,492,350   
    3,840,000     

1.73%, 01/19/2025 (1)(2)

    3,827,328   
    2,005,000     

3.42%, 01/16/2027 (1)(2)

    2,024,649   
   

Ares CLO Ltd.

 
    2,519,358     

1.13%, 04/20/2023 (1)(2)

    2,509,532   
    4,040,000     

1.77%, 10/12/2023 (1)(2)

    4,061,412   
    3,845,000     

1.80%, 04/17/2026 (1)(2)

    3,851,152   
   

Atrium CDO Corp.

 
    1,735,000     

2.01%, 11/16/2022 (1)(2)

    1,719,038   
   

Babson CLO Ltd.

 
    2,725,000     

1.38%, 04/20/2025 (1)(2)

    2,692,028   
   

Carlyle Global Market Strategies

 
    875,000     

1.43%, 04/18/2025 (1)(2)

    865,900   
    1,570,000     

2.07%, 04/20/2022 (1)(2)(3)

    1,570,000   
   

Carlyle Global Market Strategies CLO Ltd.

 
    3,390,000     

1.40%, 07/15/2025 (1)(2)

    3,345,252   
   

Cent CLO 20 Ltd.

 
    3,970,000     

1.76%, 01/25/2026 (1)(2)

    3,974,367   
   

Cent CLO 22 Ltd.

 
    2,335,000     

1.71%, 11/07/2026 (1)(2)

    2,331,731   
   

Cent CLO Ltd.

 
    2,780,000     

1.77%, 07/27/2026 (1)(2)

    2,782,224   
   

CIFC Funding Ltd.

 
    4,065,000     

1.78%, 04/18/2025 (1)(2)

    4,062,968   
   

Dryden Senior Loan Fund

 
    4,575,000     

1.53%, 07/17/2023 (1)(2)

    4,574,085   
    3,420,000     

1.56%, 11/15/2023 (1)(2)

    3,420,000   
    3,990,000     

1.63%, 04/18/2026 (1)(2)

    3,971,247   
    4,375,000     

1.73%, 07/15/2027 (1)(2)

    4,372,813   
    7,900,000     

1.76%, 07/15/2026 (1)(2)

    7,906,320   
   

Eaton Vance CLO 2014-1 Ltd.

 
    2,455,000     

1.73%, 07/15/2026 (1)(2)

    2,453,773   
   

Gramercy Park CLO Ltd.

 
    2,235,000     

1.57%, 07/17/2023 (1)(2)

    2,243,493   
   

ING Investment Management CLO Ltd.

 
    4,175,000     

1.47%, 03/14/2022 (1)(2)

    4,175,000   
    3,970,000     

1.78%, 04/18/2026 (1)(2)

    3,964,839   
   

LCM Ltd.

 
    1,100,000     

2.17%, 04/15/2022 (1)(2)

    1,100,660   
   

Limerock CLO

 
    4,130,000     

1.78%, 04/18/2026 (1)(2)

    4,129,587   
   

Madison Park Funding Ltd.

 
    2,390,000     

1.73%, 01/19/2025 (1)(2)

    2,386,893   
    3,760,000     

1.78%, 07/20/2026 (1)(2)

    3,758,120   
    1,585,000     

2.48%, 04/22/2022 (1)(2)

    1,596,095   
   

Magnetite CLO Ltd.

 
    4,365,000     

1.70%, 07/25/2026 (1)(2)

    4,357,143   
    2,290,000     

1.75%, 04/15/2026 (1)(2)

    2,291,832   
    1,320,000     

2.52%, 04/15/2027 (1)(2)

    1,334,784   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            Cayman Islands - 5.1% - (continued)  
   

Neuberger Berman CLO Ltd.

 
  $        4,245,000     

1.72%, 08/04/2025 (1)(2)

  $ 4,237,359   
    3,030,000     

1.75%, 04/15/2026 (1)(2)

    3,029,697   
   

OCP CLO Ltd.

 
    4,455,000     

1.80%, 04/17/2027 (1)(2)

    4,448,317   
   

OHA Intrepid Leveraged Loan Fund Ltd.

 
    1,854,810     

1.20%, 04/20/2021 (1)(2)

    1,852,213   
   

OZLM Funding Ltd.

 
    3,880,000     

1.77%, 01/17/2026 (1)(2)

    3,878,060   
    11,510,000     

1.82%, 04/17/2026 (1)(2)

    11,514,604   
   

Race Point CLO Ltd.

 
    2,290,000     

1.48%, 02/20/2025 (1)(2)

    2,264,810   
    3,825,000     

2.41%, 05/24/2023 (1)(2)

    3,771,068   
    825,000     

2.51%, 04/15/2027 (1)(2)

    824,010   
   

Seneca Park CLO Ltd.

 
    1,555,000     

1.76%, 07/17/2026 (1)(2)

    1,562,464   
   

Sheridan Square CLO Ltd.

 
    2,435,000     

1.45%, 04/15/2025 (1)(2)

    2,410,163   
   

Symphony CLO Ltd.

 
    5,165,000     

1.54%, 07/23/2023 (1)(2)

    5,162,417   
    6,095,000     

1.72%, 10/17/2026 (1)(2)

    6,091,952   
    4,355,000     

1.75%, 07/14/2026 (1)(2)

    4,371,985   
   

Venture CLO Ltd.

 
    4,975,000     

1.58%, 11/14/2022 (1)(2)(4)

    4,972,512   
   

Voya CLO Ltd.

 
    1,725,000     

1.73%, 07/17/2026 (1)(2)

    1,724,138   
    1,695,000     

2.22%, 10/15/2022 (1)(2)

    1,692,966   
     

 

 

 
        178,958,673   
     

 

 

 
            United Kingdom - 0.1%  
   

Canary Wharf Finance II plc

 
  GBP        425,000     

5.95%, 10/22/2037 (5)

    809,219   
   

Granite Master Issuer plc

 
  $        1,087,873     

0.25%, 12/20/2054 (1)(2)

    1,080,150   
    333,070     

0.26%, 12/17/2054 (2)

    330,705   
    471,995     

0.26%, 12/20/2054 (2)

    468,691   
    221,011     

0.26%, 12/20/2054 (2)

    219,464   
    300,159     

0.32%, 12/20/2054 (2)

    298,328   
    373,294     

0.36%, 12/17/2054 (2)

    371,129   
     

 

 

 
        3,577,686   
     

 

 

 
            United States - 8.4%  
   

Adjustable Rate Mortgage Trust

 
    830,708     

0.45%, 11/25/2035 (2)

    756,916   
    249,557     

0.68%, 01/25/2036 (2)

    215,612   
   

Ally Master Owner Trust

 
    1,245,000     

1.54%, 09/15/2019

    1,249,623   
   

American Credit Acceptance Receivables Trust

 
    1,697,707     

1.14%, 03/12/2018 (1)

    1,698,213   
    898,271     

1.33%, 07/10/2018 (1)

    899,151   
    1,915,000     

3.96%, 05/15/2019 (1)

    1,928,790   
   

American Home Mortgage Assets Trust

 
    136,729     

0.31%, 03/25/2047 (2)

    108,481   
    1,171,598     

0.37%, 09/25/2046 (2)

    874,067   
    825,423     

0.37%, 10/25/2046 (2)

    585,818   
    610,167     

1.08%, 10/25/2046 (2)

    433,825   
   

AmeriCredit Automobile Receivables Trust

 
    42,210     

0.74%, 11/08/2016

    42,210   
    465,000     

1.69%, 11/08/2018

    467,568   
    1,780,000     

2.35%, 12/10/2018

    1,792,031   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  191  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

Banc of America Commercial Mortgage Trust

 
  $        1,556,960     

5.49%, 02/10/2051

  $ 1,654,887   
   

Banc of America Funding Corp.

 
    2,129,478     

0.41%, 02/20/2047 (2)

    1,847,052   
    372,536     

5.77%, 05/25/2037 (2)

    329,612   
    488,764     

5.85%, 01/25/2037

    392,103   
   

Banc of America Mortgage Trust

 
    1,033,650     

2.62%, 07/25/2033 (2)

    1,037,197   
   

Bear Stearns Adjustable Rate Mortgage Trust

 
    2,178,345     

2.26%, 08/25/2035 (2)

    2,190,701   
    1,460,341     

2.71%, 07/25/2036 (2)

    1,243,025   
    1,507,217     

4.89%, 06/25/2047 (2)

    1,350,941   
   

Bear Stearns Alt-A Trust

 
    780,403     

0.50%, 08/25/2036 (2)

    584,976   
    1,943,693     

0.68%, 01/25/2036 (2)

    1,531,601   
    864,577     

2.63%, 09/25/2035 (2)

    793,113   
    2,250     

2.75%, 08/25/2036 (2)

    1,679   
   

Bear Stearns Mortgage Funding Trust

 
    2,198,580     

0.36%, 10/25/2036 (2)

    1,712,700   
    645,376     

0.38%, 02/25/2037 (2)

    489,293   
   

Cabela’s Master Credit Card Trust

 
    1,805,000     

0.83%, 08/16/2021 (1)(2)

    1,816,935   
   

CD Mortgage Trust

 
    7,555     

5.89%, 11/15/2044 (2)

    8,177   
   

CFCRE Commercial Mortgage Trust

 
    1,935,000     

3.83%, 12/15/2047

    2,088,705   
   

Chase Issuance Trust

 
    4,700,000     

0.61%, 09/15/2020 (2)

    4,722,532   
   

ChaseFlex Trust

 
    254,000     

5.50%, 06/25/2035

    231,133   
   

CHL Mortgage Pass-Through Trust

 
    1,840,418     

0.52%, 03/25/2035 (2)

    1,508,999   
    1,618,702     

2.42%, 06/20/2035 (2)

    1,543,576   
    1,342,154     

2.42%, 06/20/2035 (2)

    1,279,863   
    2,389,761     

2.67%, 04/25/2037 (2)

    2,143,198   
   

Citigroup Commercial Mortgage Trust

 
    2,320,000     

1.93%, 06/15/2033 (1)(2)

    2,313,098   
    770,000     

4.56%, 03/10/2047 (1)(2)

    630,151   
   

Citigroup Mortgage Loan Trust

 
    698,946     

2.54%, 07/25/2036 (2)

    471,031   
   

Cobalt CMBS Commercial Mortgage Trust

 
    1,175,000     

5.25%, 08/15/2048

    1,210,071   
   

Commercial Mortgage Loan Trust

 
    4,282,059     

6.24%, 12/10/2049 (2)

    4,558,175   
   

Commercial Mortgage Pass-Through Certificates

 
    2,605,000     

2.85%, 10/15/2045

    2,660,236   
    2,140,000     

4.02%, 07/10/2045

    2,339,745   
    2,950,000     

4.05%, 04/10/2047

    3,226,391   
    1,795,000     

4.75%, 10/15/2045 (1)(2)

    1,419,181   
   

Commercial Mortgage Trust

 
    735,000     

5.44%, 03/10/2039

    773,811   
    400,000     

5.74%, 12/10/2049

    429,981   
    143,575     

6.01%, 07/10/2038 (2)

    148,350   
   

Community or Commercial Mortgage Trust

 
    1,880,000     

4.38%, 07/10/2045 (2)

    2,100,650   
    1,885,000     

4.73%, 10/15/2045 (1)(2)

    1,562,571   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

Connecticut Avenue Securities Series

 
  $        2,570,723     

2.13%, 11/25/2024 (2)

  $ 2,598,846   
    2,629,139     

2.18%, 10/25/2023 (2)

    2,669,446   
   

Countrywide Alternative Loan Trust

 
    830,401     

0.32%, 04/25/2047 (2)

    699,843   
    907,720     

0.45%, 01/25/2036 (2)

    806,991   
    568,386     

0.50%, 11/25/2035 (2)

    465,556   
    749,714     

0.58%, 10/25/2036 (2)

    537,640   
    709,388     

0.68%, 12/25/2035 (2)

    508,842   
    1,095,037     

0.98%, 12/25/2035 (2)

    897,551   
    991,385     

5.50%, 12/25/2035

    872,577   
    1,101,533     

5.75%, 05/25/2036

    979,025   
    501,196     

6.00%, 05/25/2036

    431,994   
    766,311     

6.50%, 08/25/2037

    537,628   
   

Countrywide Home Loans, Inc.

 
    991,360     

2.55%, 09/25/2047 (2)

    881,923   
    1,592,357     

4.76%, 11/20/2035 (2)

    1,420,922   
   

CPS Auto Receivables Trust

 
    1,896,182     

1.64%, 04/16/2018 (1)

    1,898,144   
    48,306     

2.78%, 06/17/2019 (1)

    48,773   
   

CPS Automotive Trust

 
    649,571     

1.94%, 03/16/2020 (1)

    650,208   
   

Credit Acceptance Automotive Loan Trust

 
    1,360,000     

1.21%, 10/15/2020 (1)

    1,360,638   
   

Credit Suisse Commercial Mortgage Trust

 
    1,086,336     

5.75%, 03/25/2036

    1,026,991   
    70,000     

6.17%, 02/15/2041 (2)

    76,473   
   

CS First Boston Mortgage Securities Corp.

 
    129,866     

4.88%, 04/15/2037

    129,993   
   

CSAIL Commercial Mortgage Trust

 
    15,145,000     

1.12%, 04/15/2050 (2)(6)

    1,050,048   
   

CSMC Trust

 
    3,197,655     

3.50%, 08/25/2043 (1)(2)

    3,262,107   
   

DB Master Finance LLC

 
    915,000     

3.26%, 02/20/2045 (1)

    921,335   
   

DBUBS Mortgage Trust

 
    2,944,853     

1.54%, 11/10/2046 (1)(2)(6)

    60,520   
   

Downey S & L Association Mortgage Loan Trust

 
    2,064,170     

1.05%, 03/19/2046 (2)

    1,585,908   
   

Enterprise Fleet Financing LLC

 
    915,000     

0.93%, 04/20/2018 (1)

    915,586   
    2,010,000     

1.51%, 03/20/2019 (1)

    2,020,910   
   

First Investors Automotive Owner Trust

 
    273,766     

0.90%, 10/15/2018 (1)

    273,650   
   

Ford Credit Floorplan Master Owner Trust A

 
    500,000     

1.69%, 09/15/2019

    501,975   
   

GE Commercial Mortgage Corp. Series

 
    825,000     

5.61%, 12/10/2049 (2)

    864,329   
   

GMAC Mortgage Corp. Loan Trust

 
    678,039     

2.94%, 09/19/2035 (2)

    632,969   
    1,008,859     

2.98%, 04/19/2036 (2)

    894,730   
   

GreenPoint Mortgage Funding Trust

 
    610,238     

0.44%, 10/25/2045 (2)

    519,244   
   

GS Mortgage Securities Trust

 
    2,470,000     

3.38%, 05/10/2045

    2,609,822   
    2,330,000     

3.58%, 06/10/2047 (1)

    1,730,493   
    615,000     

3.67%, 04/10/2047 (1)

    438,956   
    1,742,000     

3.72%, 01/10/2047 (1)

    1,098,075   
    1,300,000     

5.03%, 04/10/2047 (1)(2)

    1,265,003   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  192  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

GSAA Home Equity Trust

 
  $        290,806     

0.23%, 12/25/2046 (2)

  $ 201,917   
    2,113,842     

0.25%, 12/25/2046 (2)

    1,242,863   
    1,799,601     

0.26%, 02/25/2037 (2)

    969,002   
    2,790,355     

0.27%, 03/25/2037 (2)

    1,509,897   
    2,849,457     

0.30%, 05/25/2047 (2)

    2,017,296   
    1,379,937     

0.36%, 11/25/2036 (2)

    748,850   
    1,969,980     

0.41%, 04/25/2047 (2)

    1,304,484   
    2,100,174     

0.50%, 04/25/2047 (2)

    1,401,776   
   

GSR Mortgage Loan Trust

 
    1,114,234     

2.59%, 07/25/2035 (2)

    1,078,024   
    2,826,629     

2.71%, 01/25/2036 (2)

    2,617,998   
    322,024     

2.72%, 05/25/2037 (2)

    264,403   
   

HarborView Mortgage Loan Trust

 
    964,450     

0.37%, 01/19/2038 (2)

    813,825   
    3,322,341     

0.42%, 12/19/2036 (2)

    2,349,593   
    262,997     

0.51%, 09/19/2035 (2)

    207,600   
    2,121,297     

0.88%, 01/19/2035 (2)

    1,476,652   
   

Hilton USA Trust

 
    965,756     

2.92%, 11/05/2030 (1)(2)

    965,755   
   

HLSS Servicer Advance Receivables Backed Notes

 
    3,230,000     

1.98%, 11/15/2046 (1)

    3,201,253   
   

HLSS Servicer Advance Receivables Trust

 
    2,286,000     

1.50%, 01/16/2046 (1)

    2,283,714   
    2,300,000     

1.99%, 10/15/2045 (1)

    2,299,846   
    1,620,000     

2.22%, 01/15/2047 (1)

    1,623,240   
    3,555,000     

2.48%, 10/15/2045 (1)

    3,555,000   
   

Impac CMB Trust Series

 
    844,723     

0.98%, 10/25/2034 (2)

    803,527   
   

IndyMac INDA Mortgage Loan Trust

 
    356,109     

2.56%, 09/25/2036 (2)

    297,377   
    1,514,142     

2.58%, 12/25/2036 (2)

    1,315,779   
   

IndyMac Index Mortgage Loan Trust

 
    1,778,188     

0.38%, 10/25/2036 (2)

    1,512,362   
    94,122     

0.42%, 07/25/2035 (2)

    81,740   
    855,680     

0.46%, 07/25/2035 (2)

    712,344   
    1,619,291     

0.58%, 07/25/2046 (2)

    904,476   
    565,481     

2.50%, 08/25/2035 (2)

    450,857   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    1,535,924     

4.57%, 12/15/2047 (1)(2)

    1,412,457   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    1,675,404     

1.68%, 02/12/2051 (2)

    1,648,437   
    2,124,000     

2.75%, 10/15/2045 (1)(2)

    1,704,533   
    950,000     

2.83%, 10/15/2045

    968,797   
    700,000     

4.00%, 08/15/2046 (1)(2)

    654,389   
    2,825,000     

4.17%, 08/15/2046

    3,115,000   
    1,910,000     

4.82%, 10/15/2045 (1)(2)

    1,934,853   
    139,178     

5.42%, 01/12/2043 (2)

    139,913   
    4,640,000     

5.89%, 02/12/2049 (2)

    4,973,825   
   

JP Morgan Mortgage Trust

 
    1,257,983     

2.39%, 11/25/2035 (2)

    1,192,060   
    3,604,800     

2.60%, 02/25/2035 (2)

    3,652,293   
    1,914,863     

2.61%, 05/25/2036 (2)

    1,755,962   
    3,111,499     

3.00%, 09/25/2044 (2)

    3,145,635   
    280,857     

6.00%, 01/25/2037

    253,557   
   

JPMBB Commercial Mortgage Securities Trust

 
    70,478,565     

1.03%, 09/15/2047 (2)(6)

    3,501,234   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

LB-UBS Commercial Mortgage Trust

 
  $        252,924     

5.43%, 02/15/2040

  $ 267,148   
   

Lehman XS Trust

 
    867,010     

0.37%, 11/25/2046 (2)

    722,898   
    1,148,529     

1.03%, 09/25/2047 (2)

    918,265   
   

Long Beach Mortgage Loan Trust

 
    1,597,294     

0.80%, 08/25/2033 (2)

    1,483,232   
   

LSTAR Securities Investment Trust

 
    3,753,470     

2.17%, 12/01/2021 (1)(2)

    3,710,658   
    3,143,934     

2.18%, 01/01/2020 (1)(2)

    3,100,214   
    900,000     

2.18%, 04/01/2020 (1)(2)(3)

    889,339   
    1,132,597     

2.18%, 03/01/2020 (1)(2)

    1,111,983   
    1,845,620     

3.28%, 09/01/2021 (1)(2)

    1,860,039   
   

Luminent Mortgage Trust

 
    1,029,103     

0.44%, 11/25/2035 (2)

    926,528   
   

MASTR Adjustable Rate Mortgages Trust

 
    1,142,745     

0.42%, 05/25/2037 (2)

    764,645   
   

Merrill Lynch Mortgage Investors Trust

 
    5,384,479     

2.16%, 12/25/2034 (2)

    5,396,993   
    532,077     

2.16%, 12/25/2034 (2)

    538,454   
    183,257     

2.20%, 05/25/2033 (2)

    177,203   
    1,382,388     

2.55%, 07/25/2035 (2)

    1,120,035   
    1,060,059     

5.14%, 07/12/2038 (2)

    1,063,871   
   

Morgan Stanley ABS Capital I

 
    2,358,667     

0.33%, 06/25/2036 (2)

    2,152,637   
   

Morgan Stanley Bank of America Merrill Lynch Trust

 
    2,930,000     

4.22%, 07/15/2046 (2)

    3,238,356   
    1,505,000     

4.50%, 08/15/2045 (1)

    1,185,117   
   

Morgan Stanley Capital I Trust

 
    2,990,449     

3.24%, 03/15/2045

    3,125,441   
    1,555,000     

5.36%, 07/15/2049 (1)(2)

    1,424,887   
    100,000     

5.42%, 09/15/2047 (1)(2)

    114,024   
    1,550,047     

5.57%, 12/15/2044

    1,653,689   
    50,000     

5.83%, 06/11/2042 (2)

    54,067   
    559,938     

6.46%, 01/11/2043 (2)

    620,222   
    2,728,000     

6.46%, 01/11/2043 (1)(2)

    2,850,184   
   

Morgan Stanley Mortgage Loan Trust

 
    1,949,949     

0.35%, 11/25/2036 (2)

    943,890   
    629,919     

2.61%, 06/25/2037 (2)

    423,568   
    236,594     

2.76%, 05/25/2036 (2)

    171,787   
   

Morgan Stanley Re-Remic Trust

 
    939,105     

5.99%, 08/15/2045 (1)(2)

    1,000,856   
   

Nationstar Agency Advance Funding Trust

 
    1,000,000     

1.89%, 02/18/2048 (1)

    984,470   
    250,000     

3.23%, 02/18/2048 (1)

    251,220   
   

Nationstar HECM Loan Trust

 
    2,640,440     

4.50%, 11/25/2017 (1)

    2,654,434   
   

Nomura Asset Acceptance Corp. Alternative Loan Trust

 
    1,035,921     

3.47%, 06/25/2036 (2)

    793,267   
   

Prestige Automotive Receivables Trust

 
    457,601     

1.09%, 02/15/2018 (1)

    457,928   
   

Prime Mortgage Trust

 
    600,833     

5.50%, 06/25/2036

    562,847   
   

RBSGC Mortgage Pass-Through Certificates

 
    994,749     

6.25%, 01/25/2037

    899,082   
   

Renaissance Home Equity Loan Trust

 
    3,641,242     

0.70%, 03/25/2034 (2)

    3,475,890   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  193  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

Residential Accredit Loans, Inc.

 
  $        878,753     

0.48%, 04/25/2036 (2)

  $ 629,328   
    1,015,162     

0.94%, 09/25/2046 (2)

    686,652   
    2,326,741     

1.39%, 11/25/2037 (2)

    1,485,587   
    291,595     

6.25%, 01/25/2037

    239,380   
   

Residential Funding Mortgage Securities, Inc.

 
    3,936,496     

2.70%, 08/25/2035 (2)

    3,119,696   
    863,700     

3.03%, 04/25/2037 (2)

    752,893   
    248,552     

6.00%, 04/25/2037

    221,273   
    323,815     

6.00%, 07/25/2037

    294,044   
   

Sequoia Mortgage Trust

 
    1,537,246     

0.45%, 01/20/2035 (2)

    1,454,861   
    2,719,562     

0.84%, 06/20/2033 (2)

    2,588,971   
    654,046     

4.94%, 07/20/2037 (2)

    588,371   
   

SNAAC Auto Receivables Trust

 
    3,999     

1.14%, 07/16/2018 (1)

    3,999   
   

SpringCastle America Funding LLC

 
    2,325,068     

2.70%, 05/25/2023 (1)

    2,336,826   
   

Springleaf Funding Trust

 
    1,790,000     

2.41%, 12/15/2022 (1)

    1,792,791   
    3,215,000     

3.48%, 05/15/2028 (1)

    3,227,519   
   

Springleaf Mortgage Loan Trust

 
    366,936     

1.57%, 12/25/2059 (1)(2)

    367,811   
    2,123,923     

1.78%, 12/25/2065 (1)(2)

    2,129,154   
    3,065,000     

2.31%, 06/25/2058 (1)(2)

    3,008,883   
    510,000     

2.66%, 12/25/2059 (1)(2)

    509,857   
    1,725,000     

3.14%, 06/25/2058 (1)(2)

    1,727,889   
    920,000     

3.52%, 12/25/2065 (1)(2)

    937,614   
    2,770,000     

3.79%, 09/25/2057 (1)(2)

    2,790,193   
   

Structured Adjustable Rate Mortgage Loan Trust

 
    1,112,167     

0.48%, 09/25/2034 (2)

    986,938   
   

Structured Asset Mortgage Investments II Trust

 
    664,788     

0.41%, 02/25/2036 (2)

    529,861   
   

Structured Asset Securities Corp. Mortgage Pass-Through Ctfs

 
    387,023     

2.60%, 11/25/2033 (2)

    378,472   
   

TAL Advantage LLC

 
    1,014,417     

2.83%, 02/22/2038 (1)

    1,013,340   
   

Terwin Mortgage Trust

 
    1,944,272     

1.12%, 12/25/2034 (2)

    1,891,491   
   

Thornburg Mortgage Securities Trust

 
    1,379,690     

2.22%, 04/25/2045 (2)

    1,386,425   
   

UBS-Barclays Commercial Mortgage Trust

 
    5,950,000     

3.19%, 03/10/2046

    6,154,121   
    1,095,000     

4.23%, 03/10/2046 (1)(2)

    926,834   
   

Wachovia Bank Commercial Mortgage Trust

 
    968,849     

5.42%, 01/15/2045 (2)

    981,988   
   

WaMu Mortgage Pass-Through Certificates Trust

 
    1,182,599     

0.60%, 06/25/2044 (2)

    1,094,099   
    2,751,486     

0.60%, 07/25/2044 (2)

    2,640,588   
    974,703     

2.20%, 11/25/2046 (2)

    878,521   
    1,158,038     

4.47%, 08/25/2036 (2)

    1,047,717   
   

Wells Fargo Commercial Mortgage Trust

 
    3,900,000     

2.92%, 10/15/2045

    4,007,340   
    375,000     

4.11%, 05/15/2048 (2)

    344,352   

Shares or Principal Amount

 

Market Value*

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 13.6% -
(continued)
 
            United States - 8.4% - (continued)  
   

Wells Fargo Mortgage Backed Securities Trust

 
  $        485,062     

2.49%, 10/25/2036 (2)

  $ 451,503   
    828,651     

2.57%, 12/28/2037 (2)

    762,369   
    1,745,000     

2.64%, 10/25/2035 (2)

    1,678,418   
   

Westlake Automobile Receivables Trust

 
    2,455,000     

1.17%, 03/15/2018 (1)

    2,456,601   
   

WF-RBS Commercial Mortgage Trust

 
    15,848,008     

1.62%, 03/15/2047 (2)(6)

    1,288,950   
    4,135,404     

3.02%, 11/15/2047 (1)

    2,941,236   
    830,000     

4.90%, 06/15/2044 (1)(2)

    944,899   
    515,000     

5.00%, 06/15/2044 (1)(2)

    489,269   
    810,000     

5.00%, 04/15/2045 (1)(2)

    662,380   
    935,000     

5.75%, 04/15/2045 (1)(2)

    1,010,347   
     

 

 

 
        294,738,823   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $474,811,725)

  $ 477,772,849   
     

 

 

 
CORPORATE BONDS - 10.4%  
            Australia - 0.1%  
   

FMG Resources August 2006 Pty Ltd.

 
    2,730,000     

6.88%, 04/01/2022 (1)

  $ 2,067,975   
    2,825,000     

8.25%, 11/01/2019 (1)

    2,464,812   
     

 

 

 
        4,532,787   
     

 

 

 
            Canada - 0.2%  
   

MEG Energy Corp.

 
    820,000     

7.00%, 03/31/2024 (1)

    807,864   
   

Novelis, Inc.

 
    475,000     

8.75%, 12/15/2020

    507,063   
   

Telesat Canada / Telesat LLC

 
    1,300,000     

6.00%, 05/15/2017 (1)

    1,322,750   
   

Tembec Industries, Inc.

 
    2,246,000     

9.00%, 12/15/2019 (1)

    2,290,920   
   

Valeant Pharmaceuticals International, Inc.

 
    765,000     

6.13%, 04/15/2025 (1)

    789,384   
   

Videotron Ltd.

 
    3,000     

9.13%, 04/15/2018

    3,062   
     

 

 

 
        5,721,043   
     

 

 

 
            Denmark - 0.3%  
   

Nykredit Realkredit A/S

 
  DKK        75,120,000     

1.50%, 10/01/2037

    10,947,127   
     

 

 

 
            France - 0.3%  
   

Banque PSA Finance S.A.

 
  EUR        4,247,000     

4.25%, 02/25/2016 (5)

    4,904,643   
   

Societe Generale S.A.

 
  $        860,000     

6.00%, 01/27/2020 (1)(2)(7)

    819,666   
  EUR        1,200,000     

6.75%, 04/07/2021 (2)(5)(7)

    1,389,998   
  $        1,545,000     

7.88%, 12/18/2023 (1)(2)(7)

    1,602,938   
     

 

 

 
        8,717,245   
     

 

 

 
            Guernsey - 0.1%  
   

Credit Suisse Group AG

 
    3,725,000     

7.88%, 02/24/2041 (2)(5)

    3,943,844   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

194

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            Ireland - 0.1%  
   

AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust

 
  $        2,700,000     

4.50%, 05/15/2021 (1)

  $ 2,841,750   
   

Ardagh Packaging Finance plc

 
  EUR        850,000     

9.25%, 10/15/2020 (5)

    1,018,846   
   

Baggot Securities Ltd.

 
    100,000     

10.24%, 06/01/2015 (1)(7)

    117,899   
     

 

 

 
        3,978,495   
     

 

 

 
            Italy - 0.1%  
   

Intesa Sanpaolo S.p.A.

 
  $        1,300,000     

9.50%, 06/01/2016 (2)(5)(7)

    1,574,642   
     

 

 

 
            Japan - 0.0%  
   

SoftBank Corp.

 
    1,230,000     

4.50%, 04/15/2020 (1)

    1,259,213   
     

 

 

 
            Jersey - 0.0%  
   

Swiss Re Capital I L.P.

 
    690,000     

6.85%, 05/25/2016 (2)(5)(7)

    721,050   
     

 

 

 
            Luxembourg - 0.4%  
   

Aguila 3 S.A.

 
    1,455,000     

7.88%, 01/31/2018 (1)

    1,469,550   
   

Altice Financing S.A.

 
  EUR        1,185,000     

6.50%, 01/15/2022 (5)

    1,437,156   
  $        355,000     

8.13%, 01/15/2024 (1)

    373,638   
    610,000     

9.88%, 12/15/2020 (1)

    673,288   
   

Ardagh Finance Holdings S.A.

 
  EUR        490,009     

8.38%, 06/15/2019 (1)(8)

    583,714   
   

CNH Industrial Finance Europe S.A.

 
    2,091,000     

2.75%, 03/18/2019 (5)

    2,391,183   
   

INEOS Group Holdings S.A.

 
    2,955,000     

5.75%, 02/15/2019 (5)

    3,396,824   
   

Wind Acquisition Finance S.A.

 
    1,160,000     

4.00%, 07/15/2020 (1)

    1,318,996   
    3,525,000     

4.01%, 07/15/2020 (1)(2)

    3,953,098   
     

 

 

 
        15,597,447   
     

 

 

 
            Mexico - 0.1%  
   

Cemex S.A.B. de C.V.

 
  $        2,245,000     

6.13%, 05/05/2025 (1)

    2,303,819   
     

 

 

 
            Netherlands - 0.5%  
   

Achmea B.V.

 
  EUR        4,425,000     

4.25%, 02/04/2025 (2)(5)(7)

    5,235,753   
   

AerCap Aviation Solutions B.V.

 
  $        200,000     

6.38%, 05/30/2017

    213,000   
   

Cimpress N.V.

 
    4,000,000     

7.00%, 04/01/2022 (1)

    4,100,000   
   

Constellium N.V.

 
  EUR        295,000     

4.63%, 05/15/2021 (1)

    319,150   
    1,250,000     

4.63%, 05/15/2021 (5)

    1,352,332   
   

Fiat Chrysler Automobiles N.V.

 
  $        765,000     

4.50%, 04/15/2020 (1)

    769,973   
   

ING Groep N.V.

 
    1,800,000     

6.00%, 04/16/2020 (2)(7)

    1,792,125   
    4,000,000     

6.50%, 04/16/2025 (2)(7)

    3,977,500   
   

NXP B.V. / NXP Funding LLC

 
    440,000     

3.75%, 06/01/2018 (1)

    452,100   
     

 

 

 
        18,211,933   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            Spain - 0.5%  
   

Abengoa Greenfield S.A.

 
  EUR        2,975,000     

5.50%, 10/01/2019 (1)

  $ 3,064,889   
   

Banco Bilbao Vizcaya Argentaria S.A.

 
    2,400,000     

7.00%, 02/19/2019 (2)(5)(7)

    2,762,211   
  $        2,800,000     

9.00%, 05/09/2018 (2)(5)(7)

    3,027,500   
   

Banco Santander S.A.

 
  EUR        3,800,000     

6.25%, 03/12/2019 (2)(5)(7)

    4,282,830   
   

NH Hotel Group S.A.

 
    3,390,000     

6.88%, 11/15/2019 (1)

    4,206,139   
     

 

 

 
        17,343,569   
     

 

 

 
            United Kingdom - 1.6%  
   

Barclays Bank plc

 
  $        2,180,000     

0.63%, 06/15/2015 (2)(7)

    1,351,600   
    14,260,000     

4.38%, 09/11/2024

    14,240,136   
    3,495,000     

8.25%, 12/15/2018 (2)(7)

    3,722,867   
  GBP        550,000     

14.00%, 06/15/2019 (2)(7)

    1,134,460   
   

HSBC Bank plc

 
  EUR        825,000     

0.32%, 09/30/2020 (2)

    921,719   
  $        2,620,000     

0.75%, 09/30/2015 (2)(7)

    1,600,820   
   

Ineos Finance plc

 
  EUR        2,615,000     

4.00%, 05/01/2023 (1)(4)

    2,903,220   
   

Lloyds Banking Group plc

 
    2,725,000     

6.38%, 06/27/2020 (2)(5)(7)

    3,259,189   
  GBP        1,550,000     

7.00%, 06/27/2019 (2)(5)(7)

    2,435,828   
   

National Westminster Bank plc

 
  $        1,270,000     

0.63%, 07/11/2015 (2)(7)

    800,100   
  EUR        725,000     

2.17%, 07/05/2015 (2)(7)

    776,823   
   

Nationwide Building Society

 
  GBP        2,400,000     

6.88%, 06/20/2019 (2)(5)(7)

    3,702,419   
   

Paragon Offshore plc

 
  $        2,345,000     

6.75%, 07/15/2022 (1)

    973,175   
   

Royal Bank of Scotland Group plc

 
    5,070,000     

6.00%, 12/19/2023

    5,552,892   
    2,075,000     

9.50%, 03/16/2022 (2)(5)

    2,329,109   
   

Tullow Oil plc

 
    545,000     

6.00%, 11/01/2020 (1)

    501,400   
    1,745,000     

6.25%, 04/15/2022 (1)

    1,596,675   
   

Virgin Media Finance plc

 
    5,615,000     

5.75%, 01/15/2025 (1)

    5,706,244   
   

Virgin Media Secured Finance plc

 
    2,755,000     

5.25%, 01/15/2026 (1)

    2,741,225   
     

 

 

 
        56,249,901   
     

 

 

 
            United States - 6.1%      
   

99 Cents Only Stores

 
    425,000     

11.00%, 12/15/2019

    444,125   
   

AbbVie, Inc.

 
    690,000     

1.75%, 11/06/2017

    693,578   
   

Activision Blizzard, Inc.

 
    6,820,000     

6.13%, 09/15/2023 (1)

    7,514,822   
   

AK Steel Corp.

 
    715,000     

7.63%, 05/15/2020

    620,263   
    2,440,000     

7.63%, 10/01/2021

    2,013,000   
    440,000     

8.38%, 04/01/2022

    378,400   
   

Albertson’s Holdings LLC

 
    517,000     

7.75%, 10/15/2022 (1)

    563,530   
   

Alcatel-Lucent USA, Inc.

 
    3,525,000     

4.63%, 07/01/2017 (1)

    3,639,562   
    610,000     

6.75%, 11/15/2020 (1)

    657,275   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  195  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            United States - 6.1% - (continued)      
   

Alere, Inc.

 
  $        1,970,000     

6.50%, 06/15/2020

  $ 2,048,800   
    1,050,000     

7.25%, 07/01/2018

    1,114,312   
   

Ally Financial, Inc.

 
    6,125,000     

3.25%, 02/13/2018

    6,117,344   
    2,475,000     

3.75%, 11/18/2019

    2,461,635   
    6,125,000     

4.13%, 02/13/2022

    6,002,500   
    2,480,000     

5.13%, 09/30/2024

    2,573,000   
    1,580,000     

8.00%, 12/31/2018

    1,785,400   
   

AMC Entertainment, Inc.

 
    734,000     

9.75%, 12/01/2020

    798,225   
   

American Builders & Contractors Supply Co., Inc.

 
    220,000     

5.63%, 04/15/2021 (1)

    226,600   
   

American International Group, Inc.

 
  GBP        2,100,000     

5.75%, 03/15/2067 (2)

    3,364,953   
   

Amsurg Corp.

 
  $        575,000     

5.63%, 07/15/2022

    583,740   
   

Antero Resources Corp.

 
    380,000     

5.38%, 11/01/2021

    383,800   
    980,000     

5.63%, 06/01/2023 (1)

    1,000,825   
   

Aramark Services, Inc.

 
    1,505,000     

5.75%, 03/15/2020

    1,568,962   
   

Argos Merger Sub, Inc.

 
    635,000     

7.13%, 03/15/2023 (1)

    666,750   
   

Ashtead Capital, Inc.

 
    800,000     

6.50%, 07/15/2022 (1)

    856,504   
   

Associated Materials LLC

 
    245,000     

9.13%, 11/01/2017

    208,250   
   

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.

 
    5,890,000     

5.25%, 03/15/2025 (1)

    5,831,100   
   

Bank of America Corp.

 
  EUR        1,800,000     

0.74%, 05/23/2017 (2)

    2,014,056   
   

Biomet, Inc.

 
  $        1,145,000     

6.50%, 08/01/2020

    1,212,269   
    65,000     

6.50%, 10/01/2020

    68,088   
   

Blue Racer Midstream LLC

 
    775,000     

6.13%, 11/15/2022 (1)

    806,000   
   

CCO Holdings LLC

 
    1,300,000     

7.38%, 06/01/2020

    1,384,500   
   

CDW LLC / CDW Finance Corp.

 
    1,360,000     

5.00%, 09/01/2023

    1,400,800   
   

CEC Entertainment, Inc.

 
    280,000     

8.00%, 02/15/2022

    286,650   
   

CIT Group, Inc.

 
    30,000     

5.00%, 05/15/2017

    31,050   
    1,700,000     

5.25%, 03/15/2018

    1,762,050   
    525,000     

5.50%, 02/15/2019 (1)

    549,281   
   

CNH Industrial America LLC

 
    95,000     

7.25%, 01/15/2016

    97,850   
   

CNH Industrial Capital LLC

 
    3,205,000     

3.63%, 04/15/2018

    3,213,012   
    205,000     

3.88%, 11/01/2015

    206,025   
    230,000     

6.25%, 11/01/2016

    241,500   
   

Community Health Systems, Inc.

 
    610,000     

5.13%, 08/15/2018

    632,875   
    4,350,000     

6.88%, 02/01/2022

    4,616,437   
    1,930,000     

7.13%, 07/15/2020

    2,069,925   
   

Deutsche Postbank Funding Trust

 
  EUR        200,000     

5.98%, 06/29/2017 (2)(5)(7)

    238,302   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            United States - 6.1% - (continued)      
   

DISH DBS Corp.

 
  $        2,895,000     

5.00%, 03/15/2023

  $ 2,743,012   
   

DPL, Inc.

 
    1,495,000     

7.25%, 10/15/2021

    1,614,600   
   

Emdeon, Inc.

 
    25,000     

11.00%, 12/31/2019

    27,375   
   

Endo Finance LLC

 
    3,675,000     

6.00%, 02/01/2025 (1)

    3,769,172   
   

Entegris, Inc.

 
    565,000     

6.00%, 04/01/2022 (1)

    590,425   
   

Envision Healthcare Corp.

 
    435,000     

5.13%, 07/01/2022 (1)

    448,050   
   

Equinix, Inc.

 
    55,000     

4.88%, 04/01/2020

    56,788   
   

Everest Acquisition LLC

 
    80,000     

9.38%, 05/01/2020

    85,600   
   

Family Tree Escrow LLC

 
    230,000     

5.25%, 03/01/2020 (1)

    240,925   
    1,130,000     

5.75%, 03/01/2023 (1)

    1,186,500   
   

FCA US LLC / CG Co-Issuer, Inc.

 
    7,355,000     

8.00%, 06/15/2019

    7,704,730   
    3,935,000     

8.25%, 06/15/2021

    4,343,256   
   

First Data Corp.

 
    2,845,000     

7.38%, 06/15/2019 (1)

    2,955,244   
    1,180,000     

8.25%, 01/15/2021 (1)

    1,251,166   
   

Ford Motor Credit Co. LLC

 
    5,450,000     

5.63%, 09/15/2015

    5,544,367   
   

Fresenius Medical Care U.S. Finance II, Inc.

 
    435,000     

5.63%, 07/31/2019 (1)

    475,238   
   

Fresenius Medical Care US Finance II, Inc.

 
    610,000     

5.88%, 01/31/2022 (1)

    667,950   
   

Fresenius US Finance II, Inc.

 
    60,000     

9.00%, 07/15/2015 (1)

    60,825   
   

Gannett Co., Inc.

 
    4,290,000     

6.38%, 10/15/2023

    4,643,925   
   

General Motors Financial Co., Inc.

 
    245,000     

2.75%, 05/15/2016

    248,093   
   

GenOn Americas Generation LLC

 
    605,000     

9.13%, 05/01/2031

    575,506   
   

Getty Images, Inc.

 
    1,170,000     

7.00%, 10/15/2020 (1)

    684,450   
   

GRD Holding III Corp.

 
    1,750,000     

10.75%, 06/01/2019 (1)

    1,898,750   
   

H&E Equipment Services, Inc.

 
    475,000     

7.00%, 09/01/2022

    497,563   
   

Harron Communications LP/Harron Finance Corp.

 
    2,325,000     

9.13%, 04/01/2020 (1)

    2,551,687   
   

HCA, Inc.

 
    2,530,000     

7.50%, 11/15/2095

    2,466,750   
   

Hertz Corp.

 
    946,000     

7.38%, 01/15/2021 (1)

    995,665   
    430,000     

7.50%, 10/15/2018

    446,663   
   

Homer City Generation L.P.

 
    2,832,590     

8.73%, 10/01/2026 (8)

    2,875,079   
   

IMS Health, Inc.

 
  EUR        2,755,000     

4.13%, 04/01/2023 (1)

    3,102,732   
  $        2,845,000     

6.00%, 11/01/2020 (1)

    2,958,800   
   

Infor Software Parent LLC

 
    2,885,000     

7.13%, 05/01/2021 (1)(8)

    2,892,212   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  196  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            United States - 6.1% - (continued)      
   

Infor US, Inc.

 
  $        1,730,000     

6.50%, 05/15/2022 (1)

  $ 1,777,575   
    475,000     

11.50%, 07/15/2018

    513,594   
   

International Lease Finance Corp.

 
    1,015,000     

5.88%, 04/01/2019

    1,103,812   
    2,815,000     

6.25%, 05/15/2019

    3,110,575   
   

inVentiv Health, Inc.

 
    255,000     

9.00%, 01/15/2018 (1)

    267,750   
   

Iron Mountain, Inc.

 
    30,000     

7.75%, 10/01/2019

    31,800   
    154,000     

8.38%, 08/15/2021

    160,545   
   

K Hovnanian Enterprises, Inc.

 
    1,305,000     

7.00%, 01/15/2019 (1)

    1,246,275   
    176,000     

9.13%, 11/15/2020 (1)

    186,560   
   

KB Home

 
    216,000     

6.25%, 06/15/2015

    216,540   
    1,685,000     

7.00%, 12/15/2021

    1,756,612   
    75,000     

7.50%, 09/15/2022

    78,375   
    1,075,000     

8.00%, 03/15/2020

    1,187,875   
   

Laredo Petroleum, Inc.

 
    540,000     

5.63%, 01/15/2022

    543,375   
    1,000,000     

6.25%, 03/15/2023

    1,035,000   
    430,000     

7.38%, 05/01/2022

    460,100   
   

Lennar Corp.

 
    90,000     

5.60%, 05/31/2015

    90,288   
   

Level 3 Financing, Inc.

 
    700,000     

8.63%, 07/15/2020

    759,500   
   

LIN Television Corp.

 
    3,625,000     

6.38%, 01/15/2021

    3,770,000   
   

Masco Corp.

 
    140,000     

4.80%, 06/15/2015

    140,537   
   

Matador Resources Co.

 
    285,000     

6.88%, 04/15/2023 (1)

    292,481   
   

MDC Holdings, Inc.

 
    3,075,000     

5.50%, 01/15/2024

    3,059,625   
   

Michaels Stores, Inc.

 
    1,100,000     

5.88%, 12/15/2020 (1)

    1,141,250   
   

Morgan Stanley

 
    3,035,000     

3.88%, 04/29/2024

    3,142,005   
   

Nationstar Mortgage LLC / Nationstar Capital Corp.

 
    1,045,000     

6.50%, 08/01/2018

    1,063,288   
    456,000     

7.88%, 10/01/2020

    469,680   
   

Navient Corp.

 
    1,690,000     

5.88%, 10/25/2024

    1,597,050   
   

NBCUniversal Enterprise, Inc.

 
    680,000     

5.25%, 03/29/2049 (1)(7)

    717,400   
   

Nortek, Inc.

 
    650,000     

8.50%, 04/15/2021

    702,000   
   

Owens-Brockway Glass Container, Inc.

 
    85,000     

7.38%, 05/15/2016

    89,675   
   

Party City Holdings, Inc.

 
    2,915,000     

8.88%, 08/01/2020

    3,151,844   
   

Ply Gem Industries, Inc.

 
    1,600,000     

6.50%, 02/01/2022

    1,568,000   
   

PRA Holdings, Inc.

 
    1,701,000     

9.50%, 10/01/2023 (1)

    1,920,004   
   

Provident Funding Associates L.P.

 
    690,000     

6.75%, 06/15/2021 (1)

    657,225   
   

Range Resources Corp.

 
    15,000     

6.75%, 08/01/2020

    15,638   

Shares or Principal Amount

 

Market Value*

 
CORPORATE BONDS - 10.4% - (continued)  
            United States - 6.1% - (continued)      
   

Realogy Group LLC

 
  $        75,000     

7.63%, 01/15/2020 (1)

  $ 79,875   
   

Salix Pharmaceuticals Ltd.

 
    2,905,000     

6.50%, 01/15/2021 (1)

    3,297,175   
   

Servicemaster Co.

 
    2,327,000     

7.00%, 08/15/2020

    2,460,802   
   

Sovereign Capital Trust

 
    125,000     

7.91%, 06/13/2036

    130,740   
   

Spectrum Brands, Inc.

 
    950,000     

6.38%, 11/15/2020

    1,007,000   
    940,000     

6.63%, 11/15/2022

    1,005,800   
   

Sprint Communications, Inc.

 
    75,000     

9.00%, 11/15/2018 (1)

    85,336   
   

Sprint Corp.

 
    4,360,000     

7.13%, 06/15/2024

    4,191,050   
   

Sun Products Corp.

 
    1,310,000     

7.75%, 03/15/2021 (1)

    1,154,437   
   

SunGard Data Systems, Inc.

 
    2,450,000     

6.63%, 11/01/2019

    2,554,125   
    2,150,000     

7.38%, 11/15/2018

    2,236,000   
   

Syniverse Holdings, Inc.

 
    3,666,000     

9.13%, 01/15/2019

    3,446,040   
   

T-Mobile USA, Inc.

 
    575,000     

5.25%, 09/01/2018

    595,125   
    785,000     

6.46%, 04/28/2019

    810,513   
   

Tempur Sealy International, Inc.

 
    395,000     

6.88%, 12/15/2020

    420,675   
   

Texas Competitive Electric Holdings Co. LLC

 
    925,000     

11.50%, 10/01/2020 (1)(9)

    608,188   
   

Time Warner Cable, Inc.

 
    1,110,000     

8.25%, 04/01/2019

    1,296,757   
    4,685,000     

8.75%, 02/14/2019

    5,530,446   
   

TMX Finance LLC

 
    815,000     

8.50%, 09/15/2018 (1)

    582,725   
   

United Rentals North America, Inc.

 
    3,120,000     

4.63%, 07/15/2023

    3,162,931   
   

United States Steel Corp.

 
    1,037,000     

7.38%, 04/01/2020

    1,083,665   
   

Verizon Communications, Inc.

 
    1,647,000     

5.01%, 08/21/2054

    1,626,325   
   

WPX Energy, Inc.

 
    500,000     

5.25%, 09/15/2024

    461,250   
    1,100,000     

6.00%, 01/15/2022

    1,078,418   
   

Zayo Group LLC

 
    1,600,000     

6.00%, 04/01/2023 (1)

    1,608,000   
   

ZF North America Capital, Inc.

 
    410,000     

4.50%, 04/29/2022 (1)

    409,231   
    980,000     

4.75%, 04/29/2025 (1)

    982,450   
     

 

 

 
        215,479,955   
     

 

 

 
   

Total Corporate Bonds
(cost $374,256,574)

  $ 366,582,070   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 55.8%  
            Australia - 4.6%      
   

Australia Government Bond

 
  AUD        4,855,000     

2.75%, 04/21/2024

  $ 3,889,377   
    15,145,000     

2.75%, 04/21/2024

    12,132,774   
    5,000,000     

3.25%, 04/21/2025 (5)

    4,161,869   
    107,670,000     

4.50%, 04/15/2020

    94,747,603   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  197  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 55.8% - (continued)  
            Australia - 4.6% - (continued)      
  AUD        18,000,000     

5.25%, 03/15/2019

  $ 15,970,999   
    35,000,000     

5.50%, 01/21/2018

    30,303,847   
     

 

 

 
        161,206,469   
     

 

 

 
            Brazil - 0.5%      
   

Brazil Notas do Tesouro Nacional Serie F

 
  BRL        58,027,000     

10.00%, 01/01/2017

    18,312,836   
     

 

 

 
            Canada - 8.2%      
   

Canadian Government Bond

 
  CAD        118,745,000     

1.25%, 02/01/2018

    99,875,716   
    91,305,000     

1.50%, 02/01/2017

    76,742,363   
    72,190,000     

1.50%, 03/01/2020

    61,228,369   
    22,635,000     

2.25%, 06/01/2025

    19,882,779   
    32,500,000     

2.75%, 06/01/2022

    29,594,260   
     

 

 

 
        287,323,487   
     

 

 

 
            Cyprus - 0.1%      
   

Cyprus Government International Bond

 
  EUR        1,950,000     

4.75%, 06/25/2019 (5)

    2,309,983   
     

 

 

 
            Denmark - 8.0%      
   

Denmark Government Bond

 
  DKK        566,500,000     

1.50%, 11/15/2023

    93,776,587   
    88,480,000     

1.75%, 11/15/2025

    15,085,545   
    182,280,000     

2.50%, 11/15/2016

    28,653,654   
    85,535,000     

3.00%, 11/15/2021

    15,250,516   
    114,620,000     

3.00%, 11/15/2021

    20,436,244   
    56,760,000     

4.00%, 11/15/2017

    9,472,471   
    558,945,000     

4.00%, 11/15/2019

    99,597,428   
     

 

 

 
        282,272,445   
     

 

 

 
            Italy - 0.9%      
   

Italy Certificati di Credito del Tesoro

 
  EUR        27,900,000     

0.00%, 06/30/2015 (10)

    31,327,198   
     

 

 

 
            Mexico - 0.4%      
   

Mexican Bonos

 
  MXN        192,646,300     

10.00%, 12/05/2024

    16,262,590   
     

 

 

 
            Norway - 9.1%      
   

Norway Government Bond

 
  NOK        531,295,000     

1.75%, 03/13/2025 (1)(5)

    71,693,955   
    184,350,000     

3.75%, 05/25/2021

    27,983,144   
    1,464,835,000     

4.50%, 05/22/2019

    221,527,672   
     

 

 

 
        321,204,771   
     

 

 

 
            South Africa - 0.5%      
   

South Africa Government Bond

 
  ZAR        194,975,000     

8.75%, 02/28/2048

    16,607,601   
     

 

 

 
            South Korea - 4.4%      
   

Korea Treasury Bond

 
  KRW        31,500,000,000     

3.00%, 09/10/2024

    30,811,701   
    70,818,840,000     

3.50%, 03/10/2017

    68,110,944   
    55,009,850,000     

4.25%, 06/10/2021

    57,410,271   
     

 

 

 
        156,332,916   
     

 

 

 
            Sweden - 8.0%  
   

Sweden Government Bond

 
  SEK        493,265,000     

1.50%, 11/13/2023

    64,772,510   
    95,020,000     

2.50%, 05/12/2025

    13,674,871   
    1,108,915,000     

4.25%, 03/12/2019

    155,455,555   
    307,545,000     

5.00%, 12/01/2020

    46,971,328   
     

 

 

 
        280,874,264   
     

 

 

 

Shares or Principal Amount

 

Market Value*

 
FOREIGN GOVERNMENT OBLIGATIONS - 55.8% - (continued)  
            United Kingdom - 11.1%  
   

United Kingdom Gilt

 
  GBP        35,000,000     

1.75%, 01/22/2017 (5)

  $ 54,851,489   
    87,255,000     

1.75%, 07/22/2019 (5)

    136,994,151   
    61,725,000     

2.00%, 07/22/2020 (5)

    97,727,286   
    44,620,000     

2.75%, 09/07/2024 (5)

    73,676,499   
    14,265,000     

3.50%, 01/22/2045 (5)

    26,306,602   
     

 

 

 
        389,556,027   
     

 

 

 
   

Total Foreign Government Obligations
(cost $1,990,088,026)

  $ 1,963,590,587   
     

 

 

 
     
SENIOR FLOATING RATE INTERESTS - 2.6% (11)  
            Australia - 0.3%  
   

Aristocrat Leisure Ltd.

 
  $        4,244,731     

4.75%, 10/20/2021

  $ 4,279,750   
    5,375,000     

5.00%, 03/11/2022

    5,438,586   
     

 

 

 
        9,718,336   
     

 

 

 
            Canada - 0.1%  
   

Bauer Performance Sports Ltd.

 
    1,200,662     

4.00%, 04/15/2021

    1,191,657   
   

Burger King

 
    2,542,352     

4.50%, 12/12/2021

    2,570,089   
     

 

 

 
        3,761,746   
     

 

 

 
            Cayman Islands - 0.0%  
   

Avago Technologies Cayman Ltd.

 
    1,247,782     

3.75%, 05/06/2021

    1,252,985   
     

 

 

 
            Ireland - 0.1%  
   

Ardagh Holdings USA, Inc.

 
    1,272,150     

4.00%, 12/17/2019

    1,277,557   
     

 

 

 
            United States - 2.1%  
   

99 Cents Only Stores

 
    1,753,300     

4.50%, 01/11/2019

    1,750,653   
   

ABC Supply Co., Inc.

 
    1,285,425     

3.50%, 04/16/2020

    1,287,842   
   

Alliance Laundry System LLC

 
    3,459,803     

4.25%, 12/10/2018

    3,468,453   
   

AMC Entertanment, Inc.

 
    862,400     

3.50%, 04/30/2020

    864,332   
   

Amsurg Corp.

 
    3,369,538     

3.75%, 07/16/2021

    3,381,331   
   

Arch Coal, Inc.

 
    1,028,209     

6.25%, 05/16/2018

    764,432   
   

Asurion LLC

 
    1,923,712     

4.25%, 07/08/2020

    1,927,617   
    2,245,231     

5.00%, 05/24/2019

    2,256,053   
    350,000     

8.50%, 03/03/2021

    354,725   
   

Calpine Corp.

 
    702,000     

4.00%, 10/09/2019

    704,927   
    320,938     

4.00%, 10/30/2020

    322,462   
   

Chrysler Group LLC

 
    96,734     

3.50%, 05/24/2017

    96,830   
   

Community Health Systems, Inc.

 
    562,875     

4.25%, 01/27/2021

    566,213   
   

Crosby U.S. Acquisition Corp.

 
    671,500     

3.75%, 11/23/2020

    622,816   
   

Darling International, Inc.

 
  EUR        1,856,250     

3.50%, 01/06/2021

    2,096,191   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  198  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SENIOR FLOATING RATE INTERESTS - 2.6% (11) - (continued)  
            United States - 2.1% - (continued)  
   

First Data Corp.

 
  $        3,265,000     

3.68%, 03/24/2018

  $ 3,271,138   
    2,685,000     

3.68%, 09/24/2018

    2,688,356   
   

Freescale Semiconductor, Inc.

 
    3,197,733     

4.25%, 02/28/2020

    3,209,724   
    1,438,100     

5.00%, 01/15/2021

    1,449,792   
   

Gardner Denver, Inc.

 
  EUR        1,324,825     

4.75%, 07/30/2020

    1,472,868   
   

Hii Holding Corp.

 
  $        190,613     

4.00%, 12/20/2019

    190,613   
   

Hilton Worldwide Finance LLC

 
    1,181,250     

3.50%, 10/26/2020

    1,185,243   
   

Hyland Software, Inc.

 
    831,600     

4.75%, 02/19/2021

    835,134   
   

Interactive Data Corp.

 
    2,427,655     

4.75%, 05/02/2021

    2,442,075   
   

Lands’ End, Inc.

 
    2,847,228     

4.25%, 04/04/2021

    2,800,961   
   

Level 3 Financing, Inc.

 
    4,075,000     

4.50%, 01/31/2022

    4,077,567   
   

LTS Buyer LLC

 
    1,085,663     

4.00%, 04/13/2020

    1,084,305   
   

Magic Newco LLC

 
    512,131     

5.00%, 12/12/2018

    513,944   
   

MGM Resorts International

 
    518,075     

3.50%, 12/20/2019

    517,857   
   

MPH Acquisition Holdings LLC

 
    2,871,021     

3.75%, 03/31/2021

    2,868,609   
   

Neiman Marcus Group, Inc.

 
    3,209,444     

4.25%, 10/25/2020

    3,215,734   
   

Nortek, Inc.

 
    2,064,400     

3.75%, 10/30/2020

    2,055,110   
   

Party City Holdings, Inc.

 
    3,392,896     

4.00%, 07/27/2019

    3,400,903   
   

PLY GEM IIndustries, Inc.

 
    945,450     

4.00%, 02/01/2021

    944,268   
   

Realogy Corp.

 
    2,531,122     

3.75%, 03/05/2020

    2,539,829   
   

Rexnord LLC

 
    2,718,600     

4.00%, 08/21/2020

    2,726,919   
   

ServiceMaster Co.

 
    2,920,388     

4.25%, 07/01/2021

    2,928,740   
   

Signode Industrial Group US Inc.

 
  EUR        794,000     

4.00%, 05/01/2021

    892,657   
   

Star West Generation LLC

 
  $        722,800     

4.25%, 03/13/2020

    725,511   
   

Syniverse Holdings, Inc.

 
    4,482,965     

4.00%, 04/23/2019

    4,316,737   
   

Tribune Co.

 
    1,318,623     

4.00%, 12/27/2020

    1,324,398   
     

 

 

 
        74,143,869   
     

 

 

 
   

Total Senior Floating Rate Interests
(cost $90,776,133)

  $ 90,154,493   
     

 

 

 
     
U.S. GOVERNMENT AGENCIES - 0.7%  
            United States - 0.7%  
   

FHLMC

 
    3,965,642     

1.03%, 04/25/2024 (2)

  $ 3,952,742   
    9,328,114     

1.18%, 02/25/2024 (2)

    9,308,385   
    4,125,175     

1.63%, 09/25/2024 (2)

    4,147,083   

Shares or Principal Amount

 

Market Value*

 
U.S. GOVERNMENT AGENCIES - 0.7% - (continued)  
            United States - 0.7% - (continued)  
  $        31,105,000     

1.68%, 11/25/2042 (2)(6)

  $ 2,791,331   
    1,195,636     

1.75%, 08/25/2016 (2)(6)

    17,686   
    3,690,853     

1.78%, 09/25/2041 (2)(6)

    432,273   
    11,435,000     

2.08%, 02/25/2041 (2)(6)

    1,185,455   
    2,200,334     

2.18%, 12/25/2041 (2)(6)

    325,751   
    6,087,872     

2.28%, 01/25/2024 (2)(6)

    955,924   
    10,140,000     

2.29%, 12/25/2039 (2)(6)

    1,263,373   
    1,550,000     

4.93%, 10/25/2024 (2)

    1,645,725   
     

 

 

 
   

Total U.S. Government Agencies
(cost $25,521,193)

  $ 26,025,728   
     

 

 

 
U.S. GOVERNMENT SECURITIES - 10.0%      
            United States - 10.0%  
            U.S. Treasury Notes - 10.0%  
    15,000,000     

0.25%, 05/15/2015

  $ 15,001,170   
    77,735,000     

0.38%, 03/15/2016

    77,838,232   
    35,000,000     

0.88%, 12/31/2016

    35,226,940   
    37,060,000     

0.88%, 01/31/2017

    37,282,953   
    69,930,000     

1.00%, 09/30/2019

    68,864,687   
    77,255,000     

1.25%, 01/31/2019

    77,460,189   
    36,975,000     

2.50%, 05/15/2024

    38,497,335   
     

 

 

 
        350,171,506   
     

 

 

 
   

Total U.S. Government Securities
(cost $349,101,901)

  $ 350,171,506   
     

 

 

 
     
CONVERTIBLE BONDS - 0.2%      
            Home Builders - 0.0%  
   

M/I Homes, Inc.

 
    147,000     

3.00%, 03/01/2018

  $ 145,346   
     

 

 

 
            Oil & Gas - 0.0%  
   

Cobalt International Energy, Inc.

 
    1,155,000     

2.63%, 12/01/2019

    886,463   
     

 

 

 
            Semiconductors - 0.2%  
   

Intel Corp.

 
    3,300,000     

3.25%, 08/01/2039

    5,376,937   
     

 

 

 
   

Total Convertible Bonds
(cost $6,501,339)

  $ 6,408,746   
     

 

 

 
     
PREFERRED STOCKS - 0.1%      
            United States - 0.1%  
    50     

Citigroup Capital

  $ 1,295   
    111,000     

GMAC Capital Trust I Series 2

    2,917,080   
     

 

 

 
   

Total Preferred Stocks
(cost $2,943,133)

  $ 2,918,375   
     

 

 

 
CONVERTIBLE PREFERRED STOCKS - 0.1%      
            Ireland - 0.1%  
    4,752     

Actavis plc Series A, 5.50%

  $ 4,755,136   
     

 

 

 
   

Total Convertible Preferred Stocks
(cost $4,814,127)

  $ 4,755,136   
     

 

 

 
   

Total Long-Term Investments
(cost $3,318,814,151)

  $ 3,288,379,490   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

199

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value*

 
SHORT-TERM INVESTMENTS - 2.6%  
          Other Investment Pools & Funds - 1.8%  
  $ 62,532,746     

BlackRock Liquidity Funds TempFund Portfolio

  $ 62,532,746   
     

 

 

 
          U.S. Treasury - 0.8%      
   

U.S. Treasury Bills

 
    30,000,000     

0.05%, 07/23/2015 (10)

    29,999,490   
     

 

 

 
   

Total Short-Term Investments
(cost $92,529,634)

  $ 92,532,236   
     

 

 

 
 

Total Investments Excluding Purchased Options
(cost $3,411,343,785)

    96.1    $     3,380,911,726   
 

Total Purchased Options
(cost $3,410,884)

    0.1      3,010,071   
   

 

 

    

 

 

 
 

Total Investments
(cost $3,414,754,669) ^

    96.2    $ 3,383,921,797   
 

Other Assets and Liabilities

    3.8      132,123,367   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 3,516,045,164   
   

 

 

    

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

200

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $3,415,524,952 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 60,618,895   

Unrealized Depreciation

     (92,222,050
  

 

 

 

Net Unrealized Depreciation

   $ (31,603,155
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $471,402,209, which represents 13.4% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $2,459,339, which represents 0.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4)  This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities were $7,805,868 at April 30, 2015.

 

(5)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $517,934,712, which represents 14.8% of total net assets.

 

(6)  Securities disclosed are interest-only strips.

 

(7)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(8)  This security may pay interest in additional principal instead of cash.

 

(9)  The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments.

 

(10)  The interest rate disclosed for these holdings are the effective yield on the date of the acquisition.

 

(11)  Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. 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. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of April 30, 2015.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
     Expiration
Date
     Number of
Contracts
     Market
Value*
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                       

Calls

                       

EUR Call/USD Put

     GSC         1.21 EUR per USD         03/08/16         EUR         15,117,500       $ 183,768       $ 116,188       $ 67,580   

USD Call/CHF Put

     CBK         1.10 USD per CHF         07/02/15         USD         1,565,000         18,414         208,145         (189,731

USD Call/CNY Put

     JPM         6.30 USD per CNY         06/15/15         USD         11,325,000         2,072         55,039         (52,967

USD Call/CNY Put

     JPM         6.30 USD per CNY         06/15/15         USD         11,325,000         2,072         50,113         (48,041

USD Call/KRW Put

     GSC         1,200.00 USD per KRW         09/08/15         USD         1,073,000         50,297         235,524         (185,227

USD Call/SGD Put

     GSC         1.35 USD per SGD         06/08/15         USD         828,000         149,595         240,120         (90,525

USD Call/SGD Put

     GSC         1.43 USD per SGD         04/07/16         USD         1,308,000         153,580         261,600         (108,020
              

 

 

    

 

 

    

 

 

    

 

 

 

Total Calls

                 42,541,500       $ 559,798       $ 1,166,729       $ (606,931
              

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

201

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Option Contracts Outstanding at April 30, 2015 - (continued)  

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
     Expiration
Date
     Number of
Contracts
    Market
Value*
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Puts

                    

AUD Put/CAD Call

     BOA         0.89 AUD per CAD         09/11/15         AUD         1,375,000      $ 114,292      $ 239,686      $ (125,394

AUD Put/NZD Call

     JPM         1.00 AUD per NZD         03/10/16         AUD         13,425,000        107,896        131,301        (23,405

AUD Put/NZD Call

     GSC         1.01 AUD per NZD         03/10/16         AUD         25,722,000        281,226        273,863        7,363   

AUD Put/USD Call

     GSC         0.75 AUD per USD         12/10/15         AUD         1,451,322        285,164        225,794        59,370   

AUD Put/USD Call

     JPM         0.78 AUD per USD         01/28/16         AUD         12,770,000        390,468        325,271        65,197   

AUD Put/USD Call

     GSC         0.67 AUD per USD         03/31/16         AUD         9,639,950        72,105        126,712        (54,607

AUD Put/USD Call

     JPM         0.67 AUD per USD         03/31/16         AUD         9,640,050        72,106        125,589        (53,483

EUR Put/SEK Call

     JPM         8.95 EUR per SEK         12/22/15         EUR         11,460,000        108,798        177,161        (68,363

EUR Put/TRY Call

     DEUT         2.57 EUR per TRY         06/16/15         EUR         7,725,000        252        16,058        (15,806

GBP Put/USD Call

     JPM         1.50 GBP per USD         07/01/15         GBP         1,140,000        431,991        227,392        204,599   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                 94,348,322      $     1,864,298      $     1,868,827      $ (4,529
              

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

  

           136,889,822      $     2,424,096      $     3,035,556      $     (611,460
              

 

 

   

 

 

   

 

 

   

 

 

 

Written option contracts:

                    

Puts

                    

AUD Put/NZD Call

     GSC         0.98 AUD per NZD         03/10/16         AUD         (25,722,000   $ (149,915     (144,555   $ (5,360

AUD Put/USD Call

     JPM         0.74 AUD per USD         01/28/16         AUD         (12,770,000     (211,934     (171,034     (40,900

EUR Put/SEK Call

     JPM         8.55 EUR per SEK         12/22/15         EUR         (11,460,000     (25,633     (53,272     27,639   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                 (49,952,000   $ (387,482   $ (368,861   $ (18,621
              

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

  

     (49,952,000   $     (387,482   $     (368,861   $     (18,621
              

 

 

   

 

 

   

 

 

   

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
    Expiration
Date
     Number of
Contracts
     Market
Value *
     Premiums
Paid by
Fund
     Unrealized
Appreciation/
(Depreciation)
 

Purchased swaption contracts:

                      

Puts

                      

Credit Default Swaption CDX.NA.IG.24

     DEUT         68.00     05/20/15         USD         19,205,000       $ 13,986         16,324       $ 2,338   

Credit Default Swaption CDX.NA.IG.24

     DEUT         68.00     05/20/15         USD         19,270,000         14,034         18,308         4,274   

Interest Rate Swaption EUR

     GSC         0.87     10/21/15         EUR         3,860,000         339,423         142,370         197,053   

Interest Rate Swaption USD

     DEUT         2.90     10/02/15         USD         5,480,000         104,607         92,064         12,543   

Interest Rate Swaption USD

     GSC         2.92     10/06/15         USD         6,170,000         113,925         106,262         7,663   
             

 

 

    

 

 

    

 

 

    

 

 

 

Total Puts

                53,985,000       $ 585,975       $ 375,328       $ 210,647   
             

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased swaption contracts

                53,985,000       $     585,975       $     375,328       $     210,647   
             

 

 

    

 

 

    

 

 

    

 

 

 

 

Description

   Counter-
party
     Exercise Price/
FX Rate/ Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Written swaption contracts:

                    

Calls

                    

Credit Default Swaption CDX.NA.IG.24

     DEUT         58.00 USD         05/20/15         USD         (19,270,000   $ (1,767     (8,672   $ 6,905   

Credit Default Swaption CDX.NA.IG.24

     DEUT         58.00 USD         05/20/15         USD         (19,205,000     (1,762     (10,564     8,802   

Interest Rate Swaption USD

     DEUT         1.90% USD         10/02/15         USD         (5,480,000     (43,388     (93,160     49,772   

Interest Rate Swaption USD

     GSC         1.92% USD         10/06/15         USD         (6,170,000     (53,659     (109,689     56,030   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

                 (50,125,000   $     (100,576   $     (222,085   $     121,509   
              

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

202

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Australian 3-Year Bond Future

     2,160         06/15/2015       $     187,384,597       $     186,252,273       $ (1,132,324

Euro-BOBL Future

     73         06/08/2015         10,149,864         10,088,080         (61,784

Long Gilt Future

     147         06/26/2015         26,740,581         26,628,439         (112,142
              

 

 

 

Total

               $     (1,306,250
              

 

 

 

Short position contracts:

              

Australian 10-Year Bond Future

     486         06/15/2015       $ 49,661,426       $ 49,712,810       $ (51,384

Canadian Government 10-Year Bond Future

     57         06/19/2015         6,680,720         6,605,935         74,785   

Euro BUXL 30-Year Bond Future

     1         06/08/2015         187,032         178,654         8,378   

Euro-Bund Future

     141         06/08/2015         24,875,867         24,809,031         66,836   

Japan 10-Year Bond Future

     146         06/11/2015         178,213,666         178,947,532         (733,866

U.S. Treasury 10-Year Note Future

     2,719         06/19/2015         350,319,651         349,051,625         1,268,026   

U.S. Treasury 2-Year Note Future

     17         06/30/2015         3,723,115         3,727,516         (4,401

U.S. Treasury 5-Year Note Future

     879         06/30/2015         105,665,005         105,596,743         68,262   

U.S. Treasury CME Ultra Long Term Bond Future

     13         06/19/2015         2,172,941         2,138,500         34,441   

U.S. Treasury Long Bond Future

     9         06/19/2015         1,474,543         1,436,344         38,199   
              

 

 

 

Total

  

   $ 769,276   
              

 

 

 

Total futures contracts

  

   $ (536,974
              

 

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
    Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

  

             

Buy protection:

  

             

CMBX.NA.A.7

    JPM        USD        1,645,000      (2.00%)     01/17/47      $      $ (34,081   $ (7,498   $ 26,583   

CMBX.NA.AJ.3

    GSC        USD        2,245,557      (1.47%)     12/13/49        435,575               412,590        (22,985

CMBX.NA.AJ.4

    DEUT        USD        59,762      (0.96%)     02/17/51        11,434               10,923        (511

CMBX.NA.AJ.4

    JPM        USD        1,250,052      (0.96%)     02/17/51        314,429               228,481        (85,948

CMBX.NA.AS.7

    CSI        USD        9,350,000      (1.00%)     01/17/47        82,424               63,392        (19,032

ITRAXX.SUB.FIN.16

    JPM        EUR        155,000      (5.00%)     12/20/16        1,915               (13,574     (15,489
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 845,777      $ (34,081   $ 694,314      $ (117,382
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

                 

CMBX.NA.AAA.6

    DEUT        USD        22,365,000      0.50%     05/11/63      $      $ (806,180   $ (299,729   $ 506,451   

CMBX.NA.AAA.6

    CSI        USD        10,525,000      0.50%     05/11/63               (309,232     (141,053     168,179   

CMBX.NA.AAA.6

    CSI        USD        1,556,000      0.50%     05/11/63               (88,241     (20,853     67,388   

CMBX.NA.AAA.6

    GSC        USD        1,220,000      0.50%     05/11/63               (25,184     (16,350     8,834   

CMBX.NA.AAA.7

    CSI        USD        10,550,000      0.50%     01/17/47               (433,576     (247,783     185,793   

CMBX.NA.AAA.7

    CSI        USD        2,645,000      0.50%     01/17/47               (90,280     (62,122     28,158   

CMBX.NA.AAA.8

    CSI        USD        6,260,385      0.50%     10/17/57               (291,487         (220,999     70,488   

ITRAXX.EUR.Senior Financials Series 23

    GSC        EUR        11,080,000      1.00%     06/20/20        158,896               200,213        41,317   

ITRAXX.EUR.Senior Financials Series 23

    DEUT        EUR        11,075,000      1.00%     06/20/20        158,824               200,122        41,298   

ITRAXX.EUR.Senior Financials Series 23

    GSC        EUR        4,785,000      1.00%     06/20/20        71,215               86,464        15,249   

ITRAXX.EUR.Senior Financials Series 23

    DEUT        EUR        4,740,000      1.00%     06/20/20        73,165               85,650        12,485   

ITRAXX.EUR.Senior Financials Series 23

    GSC        EUR        1,670,000      1.00%     06/20/20        24,063               30,176        6,113   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 486,163      $ (2,044,180   $ (406,264   $ 1,151,753   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

  

        $     1,331,940      $     (2,078,261   $ 288,050      $     1,034,371   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

203

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

  Counter-
party
    Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on single-name issues:

                 

Buy protection:

                 

Ally Financial, Inc.

    MSC        USD        1,970,000      (5.00%) /1.69%     12/20/19      $      $ (276,395   $ (294,526   $ (18,131

Australia & New Zealand Banking Group Ltd.

    DEUT        USD        3,350,000      (1.00%) /0.75%     06/20/20               (27,547     (45,448     (17,901

Avis Budget Group, Inc.

    BOA        USD        2,500,000      (5.00%) /1.46%     06/20/18               (270,858     (287,163     (16,305

Avis Budget Group, Inc.

    BOA        USD        75,000      (5.00%) /0.69%     03/20/17        2,812               (6,550     (9,362

Beazer Homes USA, Inc.

    BOA        USD        1,620,000      (5.00%) /3.3%     12/20/18               (15,063     (104,014     (88,951

Casino Guichard Perrchon

    BOA        EUR        5,115,000      (1.00%) /0.98%     06/20/20               (35,540     (11,403     24,137   

Casino Guichard Perrchon

    JPM        EUR        1,965,000      (1.00%) /0.98%     06/20/20               (6,220     (4,380     1,840   

CenturyLink. Inc.

    DEUT        USD        2,970,000      (1.00%) /1.75%     09/20/19        100,399               89,528        (10,871

CIT Group, Inc.

    GSC        USD        470,000      (5.00%) /1.52%     12/20/17               (44,203     (44,997     (794

CIT Group, Inc.

    CSI        USD        1,165,000      (5.00%) /1.52%     12/20/17               (101,301     (111,374     (10,073

Commonwealth Bank of Australia

    DEUT        USD        3,450,000      (1.00%) /0.75%     06/20/20               (28,369     (46,895     (18,526

D.R. Horton, Inc.

    JPM        USD        4,900,000      (1.00%) /1.52%     06/20/20        132,154               118,862        (13,292

Darden Restaurants, Inc.

    CBK        USD        3,135,000      (1.00%) /0.9%     03/20/20        68,301               (18,300     (86,601

Dell, Inc.

    JPM        USD        6,225,000      (1.00%) /1.94%     06/20/20        166,793               273,669        106,876   

Domtar Corp.

    GSC        USD        55,000      (1.00%) /0.3%     12/20/16        2,811               (700     (3,511

First Data Corp.

    MSC        USD        5,450,000      (5.00%) /0.95%     09/20/17               (394,348     (556,006     (161,658

Frontier Communications Co.

    CBK        USD        2,840,000      (5.00%) /3.15%     12/20/19               (235,139     (241,198     (6,059

Hertz Corp.

    BOA        USD        2,500,000      (5.00%) /1.9%     06/20/18               (235,645     (250,793     (15,148

MDC Holdings, Inc.

    JPM        USD        3,075,000      (1.00%) /1.57%     03/20/20        106,488               77,933        (28,555

National Australia Bank

    DEUT        USD        3,350,000      (1.00%) /0.76%     06/20/20               (27,547     (44,652     (17,105

Peugeot S.A.

    CBK        EUR        70,000      (1.00%) /0.51%     12/20/16        17,706               (733     (18,439

Portugal Telecom International Finance B.V.

    JPM        EUR        3,000,000      (5.00%) /4.9%     03/20/20               (215,204     (33,764     181,440   

Rite Aid Corp.

    GSC        USD        105,000      (5.00%) /0.76%     06/20/17        8,400               (10,125     (18,525

Ryland Group, Inc.

    DEUT        USD        4,000,000      (5.00%) /0.8%     09/20/17               (323,244     (424,311     (101,067

Ryland Group, Inc.

    DEUT        USD        3,400,000      (5.00%) /0.92%     12/20/17               (305,866     (383,866     (78,000

Tenet Healthcare Corp.

    MSC        USD        3,275,000      (5.00%) /1.49%     12/20/17               (263,114     (318,137     (55,023

Thyssen Krupp AG

    MSC        EUR        4,925,000      (1.00%) /1.43%     06/20/20        109,539               113,402        3,863   

Time Warner Cable, Inc.

    MSC        USD        1,230,000      (1.00%) /1.2%     03/20/19        16,846               7,825        (9,021

Time Warner Cable, Inc.

    JPM        USD        3,455,000      (1.00%) /1.2%     03/20/19        51,108               21,982        (29,126

Time Warner Cable, Inc.

    JPM        USD        1,110,000      (1.00%) /1.29%     06/20/19        20,391               11,452        (8,939

Westpac Banking Corp.

    DEUT        USD        3,350,000      (1.00%) /0.71%     06/20/20               (27,547     (52,752     (25,205
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 803,748      $ (2,833,150   $ (2,577,434   $ (548,032
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

                 

Sell protection:

                 

Arcelormittal

    MSC        EUR        4,925,000      1.00% /2.73%     06/20/20      $      $ (427,400   $ (456,462   $ (29,062

Avis Budget Group, Inc.

    BOA        USD        2,500,000      5.00% /3.0%     06/20/20        253,111               249,000        (4,111

Banco Santander S.A.

    CSFB        EUR        4,510,000      1.00% /0.89%     06/20/20        32,233               33,478        1,245   

Banco Santander S.A.

    GSC        EUR        2,640,000      1.00% /0.89%     06/20/20        18,868               19,597        729   

Beazer Homes USA, Inc.

    JPM        USD        6,700,000      5.00% /4.5%     06/20/20        154,732               191,151        36,419   

First Data Corp.

    JPM        USD        5,450,000      5.00% /2.56%     06/20/20        590,322               663,539        73,217   

Hertz Corp.

    BOA        USD        2,500,000      5.00% /3.74%     06/20/20        165,931               159,255        (6,676

International Lease Finance Corp.

    GSC        USD        2,560,000      5.00% /1.6%     06/20/20        374,053               429,013        54,960   

K Hovnanian Enterprises, Inc.

    BOA        USD        1,650,000      5.00% /5.2%     12/20/18               (38,505     (1,318     37,187   

Liberty Interactive LLC

    GSC        USD        2,065,000      5.00% /2.1%     03/20/20        234,554               287,163        52,609   

Liberty Interactive LLC

    BCLY        USD        850,000      5.00% /2.1%     03/20/20        83,172               118,203        35,031   

Tenet Healthcare Corp.

    MSC        USD        3,275,000      5.00% /3.62%     06/20/20        218,689               227,549        8,860   

United Rentals Inc.

    GSC        USD        2,635,000      5.00% /2.31%     06/20/20        332,042               354,806        22,764   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 2,457,707      $ (465,905   $     2,274,974      $ 283,172   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

            $ 3,261,455      $ (3,299,055   $ (302,460   $     (264,860
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

            $     4,593,395      $     (5,377,316   $ (14,410   $ 769,511   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

The accompanying notes are an integral part of these financial statements.

 

 

204

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate
    Expiration
Date
    Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

             

Buy protection:

             

CDX.NA.HY.24

    USD        48,650,000        (5.00 %)      06/20/20        (3,594,163   $ (3,738,565   $ (144,402

ITRAXX.XOV.23

    EUR        23,450,000        (5.00 %)      06/20/20        (2,862,919     (2,935,352     (72,433
         

 

 

   

 

 

   

 

 

 

Total

          $ (6,457,082   $ (6,673,917   $ (216,835
         

 

 

   

 

 

   

 

 

 

Credit default swaps on indices:

             

Sell protection:

             

ITRAXX.EUR.23

    EUR        116,375,000        1.00     06/20/20        2,686,037      $ 2,765,268      $ 79,231   
         

 

 

   

 

 

   

 

 

 

Total

          $ (3,771,045   $ (3,908,649   $ (137,604
         

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
  Payments received
by Fund
  Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   6.41% Fixed   1M MXIBTIIE     MXN         163,815,000         09/04/25       $     —       $     —       $     (105,779   $     (105,779

JPM

   3M KRW CD KSDA   2.05% Fixed     KRW         2,397,480,000         06/17/25                         (48,726     (48,726

GSC

   3M KRW CD KSDA   2.05% Fixed     KRW         13,339,605,000         06/17/25                         (270,554     (270,554

DEUT

   3.88% Fixed   3M NZD NZDBB     NZD         11,360,000         09/16/25                         3,668        3,668   

JPM

   3.90% Fixed   3M NZD NZDBB     NZD         9,505,000         09/16/25                         (11,690     (11,690

JPM

   0.52% Fixed   3M SEK STIBOR     SEK         240,335,000         06/21/19                         77,407        77,407   

GSC

   0.51% Fixed   3M SEK STIBOR     SEK         102,800,000         06/21/19                         34,482        34,482   

MSC

   0.53% Fixed   3M SEK STIBOR     SEK         111,270,000         06/21/19                         33,544        33,544   

JPM

   1.77% Fixed   3M SEK STIBOR     SEK         95,310,000         06/17/25                         (28,988     (28,988

MSC

   7.13% Fixed   3M ZAR JIBAR     ZAR         484,330,000         06/15/17                         90,622        90,622   

JPM

   7.17% Fixed   3M ZAR JIBAR     ZAR         484,325,000         06/15/17                         77,276        77,276   

JPM

   7.29% Fixed   3M ZAR JIBAR     ZAR         504,095,000         06/17/17                         35,733        35,733   

JPM

   2.09% Fixed   6M PLN WIBOR     PLN         15,375,000         06/17/25                         120,324            120,324   

DEUT

   2.29% Fixed   6M PLN WIBOR     PLN         19,280,000         06/17/25                         56,770        56,770   

GSC

   2.30% Fixed   6M PLN WIBOR     PLN         19,315,000         06/17/25                         52,099        52,099   

DEUT

   2.30% Fixed   6M PLN WIBOR     PLN         15,405,000         06/17/25                         39,648        39,648   

CBK

   2.39% Fixed   6M PLN WIBOR     PLN         15,375,000         06/17/25                         5,370        5,370   
               

 

 

    

 

 

    

 

 

   

 

 

 

Total

                $     —       $     —       $     161,206      $ 161,206   
               

 

 

    

 

 

    

 

 

   

 

 

 

 

Centrally Cleared Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
    Market
Value*
    Unrealized
Appreciation/
(Depreciation)
 

GSC

   0.87% Fixed    3M JPY LIBOR      JPY         3,204,610,000         09/16/25       $       $      $ 46,865      $ 46,865   

GSC

   2.34% Fixed    3M USD LIBOR      USD         156,185,000         06/15/26                 (648,490     880,143        1,528,633   

GSC

   3M USD LIBOR    1.63% Fixed      USD         730,870,000         06/15/18         1,111,863                974,585        (137,278

GSC

   1.01% Fixed    6M EURIBOR      EUR         9,670,000         06/17/25                        15,237        15,237   

GSC

   0.82% Fixed    6M EURIBOR      EUR         3,490,000         06/17/45         593                222,436        221,843   

GSC

   6M EURIBOR    0.52% Fixed      EUR         9,720,000         06/17/25         5,228                (167,945     (173,173
                 

 

 

    

 

 

   

 

 

   

 

 

 

Total

                  $     1,117,684       $     (648,490   $     1,971,321      $     1,502,127   
                 

 

 

    

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

205

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell      Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

     Buy         05/01/15       BOA    $ 154,449       $ 152,189       $ (2,260

AUD

     Buy         05/29/15       RBS          144,365,683             144,571,986             206,303   

AUD

     Buy         05/29/15       GSC      5,190,350         5,206,399         16,049   

AUD

     Buy         05/29/15       JPM      5,202,541         5,206,399         3,858   

AUD

     Buy         05/29/15       SSG      3,062,593         3,065,376         2,783   

AUD

     Buy         05/29/15       CBA      5,456,219         5,398,380         (57,839

AUD

     Sell         05/01/15       RBS      144,596,983         144,811,125         (214,142

AUD

     Sell         05/29/15       BOA      10,914,313         10,790,440         123,873   

AUD

     Sell         05/29/15       BOA      3,897,313         3,894,924         2,389   

AUD

     Sell         05/29/15       GSC      47,390,115         48,235,431         (845,316

AUD

     Sell         05/29/15       CBA      300,881,594         306,343,259         (5,461,665

BRL

     Buy         05/05/15       GSC      4,027,062         4,141,492         114,430   

BRL

     Buy         05/05/15       UBS      4,175,575         4,141,493         (34,082

BRL

     Buy         06/02/15       UBS      87,275         83,659         (3,616

BRL

     Sell         05/05/15       GSC      4,175,575         4,141,493         34,082   

BRL

     Sell         05/05/15       UBS      88,107         84,486         3,621   

BRL

     Sell         05/05/15       UBS      3,936,160         4,057,006         (120,846

BRL

     Sell         06/02/15       UBS      885,076         856,278         28,798   

CAD

     Buy         05/29/15       BMO      2,339,765         2,348,812         9,047   

CAD

     Sell         05/29/15       BMO      144,631,693         145,479,711         (848,018

CAD

     Sell         05/29/15       TDB      144,608,338         145,480,541         (872,203

CHF

     Buy         05/29/15       JPM      5,215,433         5,386,352         170,919   

CHF

     Buy         05/29/15       JPM      2,597,929         2,693,175         95,246   

CHF

     Buy         05/29/15       JPM      2,599,442         2,693,176         93,734   

CHF

     Sell         05/29/15       JPM      7,827,205         8,084,892         (257,687

CHF

     Sell         05/29/15       UBS      19,705,124         20,349,035         (643,911

CNH

     Buy         05/29/15       HSBC      2,618,123         2,613,518         (4,605

CNH

     Buy         05/29/15       HSBC      2,618,440         2,613,518         (4,922

CNH

     Sell         05/29/15       JPM      5,269,195         5,256,271         12,924   

CNH

     Sell         05/29/15       HSBC      5,085,182         5,072,826         12,356   

CNH

     Sell         05/29/15       JPM      153,957         154,209         (252

DKK

     Sell         05/29/15       JPM      162,993,348         168,985,524         (5,992,176

EUR

     Buy         05/05/15       CSFB      2,838,206         2,936,253         98,047   

EUR

     Buy         05/05/15       WEST      59,836         61,209         1,373   

EUR

     Buy         05/29/15       JPM      7,904,352         8,256,143         351,791   

EUR

     Buy         05/29/15       CBA      16,280,037         16,394,340         114,303   

EUR

     Buy         05/29/15       CBK      7,906,235         7,969,704         63,469   

EUR

     Buy         05/29/15       UBS      1,355,121         1,416,462         61,341   

EUR

     Buy         05/29/15       JPM      5,364,062         5,397,383         33,321   

EUR

     Buy         05/29/15       CBK      763,737         785,176         21,439   

EUR

     Buy         05/29/15       SSG      4,326,844         4,335,879         9,035   

EUR

     Buy         05/29/15       DEUT      598,122         604,327         6,205   

EUR

     Buy         05/29/15       MSC      598,736         599,834         1,098   

EUR

     Buy         05/29/15       JPM      10,934,409         10,929,560         (4,849

EUR

     Buy         05/29/15       CBK      5,319,334         5,313,136         (6,198

EUR

     Sell         05/04/15       DEUT      598,082         604,244         (6,162

EUR

     Sell         05/05/15       MSC      598,469         599,510         (1,041

EUR

     Sell         05/29/15       WEST      60,389         61,780         (1,391

EUR

     Sell         05/29/15       RBC      154,927         160,630         (5,703

EUR

     Sell         05/29/15       UBS      487,887         509,972         (22,085

EUR

     Sell         05/29/15       SSG      5,270,439         5,310,890         (40,451

EUR

     Sell         05/29/15       SSG      5,270,165         5,310,890         (40,725

EUR

     Sell         05/29/15       JPM      2,676,886         2,732,951         (56,065

EUR

     Sell         05/29/15       JPM      2,639,956         2,718,349         (78,393

EUR

     Sell         05/29/15       DEUT      2,613,485         2,703,747         (90,262

EUR

     Sell         05/29/15       HSBC      2,640,909         2,731,828         (90,919

EUR

     Sell         05/29/15       BOA      8,013,340         8,104,499         (91,159

EUR

     Sell         05/29/15       CBA      5,367,190         5,464,780         (97,590

EUR

     Sell         05/29/15       CSFB      2,839,038         2,937,390         (98,352

 

The accompanying notes are an integral part of these financial statements.

 

 

  206  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Sell      05/29/15       HSBC    $ 2,632,749       $ 2,732,951       $ (100,202

EUR

   Sell      05/29/15       JPM      5,292,467         5,397,383         (104,916

EUR

   Sell      05/29/15       DEUT      2,589,812         2,703,747         (113,935

EUR

   Sell      05/29/15       BCLY      2,588,283         2,703,746         (115,463

EUR

   Sell      05/29/15       JPM      2,628,872         2,750,924         (122,052

EUR

   Sell      05/29/15       JPM      2,627,655         2,750,925         (123,270

EUR

   Sell      05/29/15       DEUT      15,855,871         15,986,587         (130,716

EUR

   Sell      05/29/15       JPM      5,260,217         5,501,848         (241,631

EUR

   Sell      05/29/15       DEUT      66,176,239         68,423,762         (2,247,523

EUR

   Sell      05/29/15       BOA      109,008,958         112,608,164         (3,599,206

EUR

   Sell      05/29/15       MSC      108,466,991         112,609,287         (4,142,296

EUR

   Sell      06/17/15       DEUT      17,810,744         18,398,304         (587,560

EUR

   Sell      06/30/15       BNP      29,643,750         31,352,901         (1,709,151

GBP

   Buy      05/29/15       SSG      3,479,324         3,483,701         4,377   

GBP

   Buy      05/29/15       JPM      5,395,392         5,363,673         (31,719

GBP

   Buy      05/29/15       JPM      6,039,945         6,000,561         (39,384

GBP

   Buy      05/29/15       DEUT      16,200,898         16,091,019         (109,879

GBP

   Buy      05/29/15       MSC      26,677,772         26,443,906         (233,866

GBP

   Sell      05/07/15       MSC      26,681,182         26,449,138         232,044   

GBP

   Sell      05/29/15       MSC      5,339,622         5,290,009         49,613   

GBP

   Sell      05/29/15       JPM      10,611,459         10,564,671         46,788   

GBP

   Sell      05/29/15       BOA      5,330,763         5,291,543         39,220   

GBP

   Sell      05/29/15       JPM      10,575,263         10,564,671         10,592   

GBP

   Sell      05/29/15       CBK      7,860,434         7,857,512         2,922   

GBP

   Sell      05/29/15       CBK      7,848,509         8,046,277         (197,768

GBP

   Sell      05/29/15       GSC          510,794,238             521,692,784         (10,898,546

INR

   Buy      05/29/15       HSBC      8,780,927         8,696,674         (84,253

JPY

   Buy      05/29/15       MSC      43,886,934         43,970,804         83,870   

JPY

   Buy      05/29/15       DEUT      34,243,738         34,316,239         72,501   

JPY

   Buy      05/29/15       HSBC      34,244,293         34,312,805         68,512   

JPY

   Buy      05/29/15       CSFB      34,250,866         34,317,957         67,091   

JPY

   Buy      05/29/15       UBS      34,253,587         34,317,957         64,370   

JPY

   Buy      05/29/15       JPM      21,032,637         21,001,329         (31,308

JPY

   Sell      05/29/15       CBA      5,294,022         5,269,852         24,170   

JPY

   Sell      05/29/15       JPM      21,025,404         21,001,329         24,075   

JPY

   Sell      05/29/15       SSG      1,899,684         1,904,201         (4,517

KRW

   Buy      05/29/15       UBS      2,659,321         2,679,109         19,788   

KRW

   Sell      05/29/15       SCB      5,232,105         5,254,456         (22,351

KRW

   Sell      05/29/15       HSBC      171,004,065         171,643,743         (639,678

MXN

   Buy      05/29/15       RBC      122,798         123,580         782   

NOK

   Sell      05/29/15       JPM      317,213,318         331,291,886         (14,078,568

NZD

   Buy      05/29/15       NAB      4,694,083         4,719,126         25,043   

PLN

   Buy      05/29/15       BNP      45,138,528         46,918,710         1,780,182   

PLN

   Buy      05/29/15       BCLY      2,609,360         2,701,533         92,173   

PLN

   Buy      05/29/15       JPM      2,625,015         2,675,170         50,155   

RUB

   Sell      05/29/15       JPM      3,937,601         3,970,297         (32,696

SEK

   Buy      05/29/15       SSG      80,726,920         83,898,207             3,171,287   

SEK

   Buy      05/29/15       JPM      5,349,310         5,403,120         53,810   

SEK

   Buy      05/29/15       BOA      5,415,327         5,410,924         (4,403

SEK

   Buy      05/29/15       BOA      3,978,579         3,969,492         (9,087

SEK

   Buy      05/29/15       MSC      5,435,308         5,410,924         (24,384

SEK

   Sell      05/29/15       JPM      6,009,728         5,963,964         45,764   

SEK

   Sell      05/29/15       JPM      5,358,220         5,330,478         27,742   

SEK

   Sell      05/29/15       SSG      3,759,412         3,768,976         (9,564

SEK

   Sell      05/29/15       SSG      274,297,053         285,072,573         (10,775,520

SGD

   Buy      05/29/15       HSBC      5,294,009         5,388,887         94,878   

SGD

   Sell      05/29/15       UBS      5,238,846         5,332,240         (93,394

SGD

   Sell      05/29/15       HSBC      5,206,558         5,411,544         (204,986

TRY

   Sell      05/29/15       HSBC      3,854,246         3,927,013         (72,767

 

The accompanying notes are an integral part of these financial statements.

 

 

  207  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

TRY

   Sell      05/29/15       DEUT    $ 3,852,200       $ 3,926,643       $ (74,443

TRY

   Sell      05/29/15       HSBC      7,230,764         7,343,679         (112,915

ZAR

   Buy      05/29/15       JPM      853,953         877,050         23,097   
                 

 

 

 

Total

                  $ (59,352,122
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Other Abbreviations:

CD

   Certificate of Deposit

CDO

   Collateralized Debt Obligation

CDOR

   Canadian Dollar Offered Rate

CLO

   Collateralized Loan Obligation

EURIBOR

   Euro Interbank Offered Rate

FHLMC

   Federal Home Loan Mortgage Corp.

JIBAR

   Johannesburg Interbank Agreed Rate

KSDA

   Korea Securities Dealers Association

LIBOR

   London Interbank Offered Rate

MXIBTIIE

   Mexico Interbank Equilibrium Interest Rate

NZDBB

   New Zealand Bank Bill

OTC

   Over-the-Counter

STIBOR

   Stockholm Interbank Offered Rate

WIBOR

   Warsaw Interbank Offered Rate
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CNH

   Chinese Renminbi

DKK

   Danish Krone

EUR

   Euro

GBP

   British Pound

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   South Korea Won

MXN

   Mexican Peso

NOK

   Norwegian Krone

NZD

   New Zealand Dollar

PLN

   Polish Zloty

RUB

   Russian Ruble

SEK

   Swedish Krona

SGD

   Singapore Dollar

TRY

   Turkish Lira

USD

   United States Dollar

ZAR

   South African Rand
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  208  

 


The Hartford World Bond Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 477,772,849      $      $ 475,313,510      $ 2,459,339   

Corporate Bonds

     366,582,070               366,582,070          

Foreign Government Obligations

     1,963,590,587               1,963,590,587          

Senior Floating Rate Interests

     90,154,493               90,154,493          

U.S. Government Agencies

     26,025,728               26,025,728          

U.S. Government Securities

     350,171,506               350,171,506          

Convertible Bonds

     6,408,746               6,408,746          

Preferred Stocks

     2,918,375        2,918,375                 

Convertible Preferred Stocks

     4,755,136        4,755,136                 

Short-Term Investments

     92,532,236        62,532,746        29,999,490          

Purchased Options

     3,010,071               3,010,071          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     3,383,921,797      $     70,206,257      $     3,311,256,201      $     2,459,339   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 7,866,680      $      $ 7,866,680      $   

Futures Contracts (2)

     1,558,927        1,558,927                 

Swaps - Credit Default (2)

     1,898,744               1,898,744          

Swaps - Interest Rate (2)

     2,439,521               2,439,521          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 13,763,872      $ 1,558,927      $ 12,204,945      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (67,218,802   $      $ (67,218,802   $   

Futures Contracts (2)

     (2,095,901     (2,095,901              

Swaps - Credit Default (2)

     (1,266,837            (1,266,837       

Swaps - Interest Rate (2)

     (776,188            (776,188       

Written Options

     (488,058            (488,058       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (71,845,786   $ (2,095,901   $ (69,749,885   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial Mortgage
Backed Securities
    Total  

Beginning balance

   $ 30,933,940      $ 30,933,940   

Purchases

     16,401,443        16,401,443   

Sales

     (4,659,808     (4,659,808

Accrued discounts/(premiums)

     184,738        184,738   

Total realized gain/(loss)

     324,055        324,055   

Net change in unrealized appreciation/depreciation

     (218,150     (218,150

Transfers into Level 3 (1)

              

Transfers out of Level 3 (1)

     (40,506,879     (40,506,879
  

 

 

   

 

 

 

Ending balance

   $ 2,459,339      $ 2,459,339   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $(923,967).

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  209  

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     Hartford
Duration-Hedged
Strategic Income
Fund
    The Hartford
Emerging
Markets Local
Debt Fund
    The Hartford
Floating Rate
Fund
 

Assets:

      

Investments in securities, at market value

   $ 370,218      $ 276,843,237      $ 5,352,629,938   

Investments in affiliated investment companies, at market value

     14,818,380                 

Cash

     56,397                 

Cash collateral

     121,150        846,732          

Foreign currency on deposit with custodian

            1,000,716        1,218,633   

Unrealized appreciation on foreign currency contracts

            11,490,921        799,593   

Unrealized appreciation on OTC swap contracts

            565,911          

Receivables:

      

Investment securities sold

     22,634        8,945,951        30,500,963   

Fund shares sold

     8,130        369,296        14,082,028   

Dividends and interest

     20        4,829,259        30,117,653   

Variation margin on financial derivative instruments

     11,933        24,724          

OTC swap premiums paid

                     

Other assets

     55,033        92,404        132,871   
  

 

 

   

 

 

   

 

 

 

Total assets

     15,463,895        305,009,151        5,429,481,679   
  

 

 

   

 

 

   

 

 

 

Liabilities:

      

Unrealized depreciation on foreign currency contracts

            8,192,802        6,837,197   

Bank overdraft

            2,184,657        97,023   

Cash collateral

                     

Unrealized depreciation on OTC swap contracts

            822,636          

TBA sale commitments, at market value

                     

Payables:

      

Investment securities purchased

     3,429        4,478,578        90,201,277   

Fund shares redeemed

     23,122        789,604        13,972,093   

Investment management fees

     1,259        242,992        2,616,110   

Variation margin on financial derivative instruments

                     

Distribution fees

     3,856        4,317        1,651,462   

Distributions payable

     443               2,525,040   

Accrued expenses

     5,353        58,002        700,964   

Written options

            269,548          

OTC Swap premiums received

                     
  

 

 

   

 

 

   

 

 

 

Total liabilities

     37,462        17,043,136        118,601,166   
  

 

 

   

 

 

   

 

 

 

Net assets

   $ 15,426,433      $ 287,966,015      $ 5,310,880,513   
  

 

 

   

 

 

   

 

 

 

Summary of Net Assets:

      

Capital stock and paid-in-capital

   $ 16,278,145      $ 335,792,458      $ 5,871,058,573   

Undistributed (distributions in excess of) net investment income

     (136,135     24,454        419,496   

Accumulated net realized gain (loss)

     (309,952     (35,892,381     (391,111,169

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     (405,625     (11,958,516     (169,486,387
  

 

 

   

 

 

   

 

 

 

Net assets

   $ 15,426,433      $ 287,966,015      $ 5,310,880,513   
  

 

 

   

 

 

   

 

 

 

Shares authorized

         450,000,000            500,000,000            3,200,000,000   
  

 

 

   

 

 

   

 

 

 

Par value

   $ 0.001      $ 0.001      $ 0.001   
  

 

 

   

 

 

   

 

 

 

Class A:     Net asset value per share

   $ 9.44      $ 8.16      $ 8.81   
  

 

 

   

 

 

   

 

 

 

                 Maximum offering price per share

   $ 9.88      $ 8.54      $ 9.08   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     1,061,887        904,778        143,761,484   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 10,022,187      $ 7,384,268      $ 1,266,169,458   
  

 

 

   

 

 

   

 

 

 

Class B:     Net asset value per share

   $      $      $ 8.79   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

                   1,488,361   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $      $      $ 13,087,567   
  

 

 

   

 

 

   

 

 

 

Class C:     Net asset value per share

   $ 9.43      $ 8.15      $ 8.80   
  

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     204,659        234,157        188,409,424   
  

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 1,930,251      $ 1,908,481      $ 1,657,176,835   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

210

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Floating Rate
High Income
Fund
    The Hartford
High Yield
Fund
    The Hartford
Inflation Plus
Fund
    The Hartford
Quality Bond
Fund
    The Hartford
Short Duration
Fund
    The Hartford
Strategic Income
Fund
    The Hartford
Total Return
Bond Fund
 
           
$ 472,116,636      $ 413,664,238      $ 908,597,518      $ 46,252,656      $ 774,019,495      $ 502,426,571      $ 2,622,914,857   
                                              
         889        2,100        134,553               41,533        75,376   
         698,072               93,650        869,815        1,352,053          
  104,834                                    74,987        113,197   
  138,392               268,554                      2,067,085        929,161   
                6,738                      4,261,160        1,337,737   
           
  6,618,061        196,600        37,382,133        13,084,624        1,048,898        6,413,780        298,981,548   
  822,911        329,297        254,908        102        1,270,256        322,317        1,442,598   
  3,572,012        6,564,108        1,675,818        47,942        3,787,853        3,416,090        10,312,277   
                              80,705        97,355        912,607   
                                     6,273,125        15,948,951   
  98,263        89,328        120,399        57,376        97,543        91,112        82,061   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  483,471,109        421,542,532        948,308,168        59,670,903        781,174,565        526,837,168        2,953,050,370   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
  913,088        295,653        1,042,402                      2,447,910        3,540,105   
  84,776                             15,398                 
                2                      1,938,000        8,794,000   
                21,823                      1,932,961        3,302,719   
                       4,979,307               2,753,843        110,457,515   
           
  15,094,467        396,107        40,924,405        24,331,302        25,646,410        110,874,556        930,781,154   
  1,088,229        878,959        2,092,086        31,585        2,219,529        706,073        781,748   
  266,873        222,635        357,544        12,525        270,488        181,713        604,621   
         29,916               11,711                        
  123,131        129,838        277,110        5,293        195,200        117,629        209,682   
  23,954        67,852               34        193,113               50,868   
  68,308        93,249        188,857        9,568        116,503        73,486        211,476   
                                     531,938        1,482,466   
                                     5,110,551        2,775,574   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  17,662,826        2,114,209        44,904,229        29,381,325        28,656,641        126,668,660        1,062,991,928   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 465,808,283      $ 419,428,323      $ 903,403,939      $ 30,289,578      $ 752,517,924      $ 400,168,508      $ 1,890,058,442   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
$ 487,480,856      $ 441,311,246      $ 958,027,984      $ 29,759,311      $ 750,115,978      $ 405,805,404      $ 1,862,280,051   
  (18,572     (53,414     (4,381,551     (8,876     (96,414     35,807        2,892,840   
  (2,965,762     (20,944,086     (49,626,750     375,800        (279,070     (4,125,046     10,246,031   

 

(18,688,239

    (885,423     (615,744     163,343        2,777,430        (1,547,657     14,639,520   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     465,808,283      $     419,428,323      $ 903,403,939      $ 30,289,578      $ 752,517,924      $ 400,168,508      $     1,890,058,442   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  450,000,000        500,000,000            6,245,000,000            450,000,000            650,000,000            900,000,000        850,000,000   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001      $ 0.001   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.20      $ 7.59      $ 10.81      $ 10.20      $ 9.91      $ 8.93      $ 10.52   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.52      $ 7.95      $ 11.32      $ 10.68      $ 10.11      $ 9.35      $ 11.02   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  15,496,249        36,384,701        27,536,299        980,605        46,434,358        15,203,986        61,298,116   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 158,040,971      $ 276,037,404      $ 297,635,240      $ 10,003,324      $ 460,051,335      $ 135,834,832      $ 644,991,925   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $ 7.54      $ 10.45      $      $ 9.96      $ 8.94      $ 10.44   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         594,573        1,279,948               496,105        601,580        1,365,713   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $ 4,483,535      $ 13,379,873      $      $ 4,941,184      $ 5,375,530      $ 14,256,021   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.20      $ 7.56      $ 10.45      $ 10.14      $ 9.90      $ 8.95      $ 10.54   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  10,604,079        11,129,886        19,716,754        227,975        11,518,034        11,440,314        6,733,462   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 108,166,230      $ 84,126,664      $ 205,966,784      $ 2,312,575      $ 114,084,655      $ 102,445,568      $ 70,971,607   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

211

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     Hartford
Duration-Hedged
Strategic Income
Fund
     The Hartford
Emerging
Markets Local
Debt Fund
     The Hartford
Floating Rate
Fund
 

Class I:      Net asset value per share

   $ 9.44       $ 8.15       $ 8.82   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     47,968         1,119,964         217,519,006   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 452,615       $ 9,123,928       $ 1,918,127,432   
  

 

 

    

 

 

    

 

 

 

Class R3:   Net asset value per share

   $ 9.43       $ 8.15       $ 8.83   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     42,384         232,326         1,695,648   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 399,802       $ 1,893,487       $ 14,970,302   
  

 

 

    

 

 

    

 

 

 

Class R4:   Net asset value per share

   $ 9.43       $ 8.15       $ 8.80   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     42,562         239,485         1,160,895   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 401,494       $ 1,951,958       $ 10,216,435   
  

 

 

    

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 9.43       $ 8.15       $ 8.81   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     42,740         237,107         383,199   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 403,194       $ 1,932,801       $ 3,374,449   
  

 

 

    

 

 

    

 

 

 

Class R6:   Net asset value per share

   $       $       $   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

                       
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $       $       $   
  

 

 

    

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 9.43       $ 8.12       $ 8.80   
  

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     192,595         32,490,793         48,634,028   
  

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,816,890       $ 263,771,092       $ 427,758,035   
  

 

 

    

 

 

    

 

 

 

Cost of investments

   $ 370,218       $     291,829,157       $     5,515,927,859   

Cost of investments in affiliated investment companies

   $     15,208,499       $       $   

Cost of foreign currency on deposit with custodian

   $       $ 991,910       $ 1,218,222   

Proceeds of TBA sale commitments

   $       $       $   

Proceeds of written option contracts

   $       $ 251,963       $   

 

The accompanying notes are an integral part of these financial statements.

 

 

  212  

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford
Floating Rate
High Income
Fund
    The Hartford
High Yield
Fund
    The Hartford
Inflation Plus
Fund
    The Hartford
Quality Bond
Fund
    The Hartford
Short Duration
Fund
    The Hartford
Strategic Income
Fund
    The Hartford
Total Return
Bond Fund
 
$ 10.21      $ 7.62      $ 10.97      $ 10.22      $ 9.93      $ 8.96      $ 10.53   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  17,419,697        5,528,210        6,635,508        212,002        16,593,290        4,092,998        1,969,133   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 177,838,124      $ 42,128,792      $ 72,764,342      $ 2,166,041      $ 164,717,243      $ 36,687,608      $ 20,741,952   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.18      $ 7.58      $ 10.66      $ 10.18      $ 9.88      $ 8.92      $ 10.72   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  288,169        292,214        6,393,408        204,582        93,403        35,919        608,172   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 2,932,990      $ 2,215,792      $ 68,139,381      $ 2,081,984      $ 922,990      $ 320,402      $ 6,520,061   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.18      $ 7.59      $ 10.81      $ 10.20      $ 9.89      $ 8.93      $ 10.70   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  298,988        190,086        1,954,381        205,671        99,992        15,147        1,466,843   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 3,043,331      $ 1,442,585      $ 21,119,698      $ 2,097,047      $ 989,034      $ 135,282      $ 15,698,187   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.18      $ 7.58      $ 10.94      $ 10.22      $ 9.88      $ 8.93      $ 10.70   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  286,199        65,611        420,141        206,770        11,217        13,580        138,463   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 2,912,654      $ 497,507      $ 4,595,659      $ 2,112,215      $ 110,877      $ 121,293      $ 1,481,536   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $      $      $      $      $ 8.93      $ 10.69   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                     1,128        950   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$      $      $      $      $      $ 10,072      $ 10,153   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 10.18      $ 7.57      $ 10.98      $ 10.22      $ 9.88      $ 8.93      $ 10.69   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,264,906        1,122,171        20,011,413        931,284        677,997        13,355,922        104,315,164   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 12,873,983      $ 8,496,044      $ 219,802,962      $ 9,516,392      $ 6,700,606      $ 119,237,921      $ 1,115,387,000   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     489,999,108      $     414,737,352      $     908,427,300      $     46,031,429      $     770,754,990      $     505,672,759      $     2,602,261,256   
$      $      $      $      $      $      $   
$ 104,951      $      $      $      $      $ 74,196      $ 108,707   
$      $      $      $ 4,976,399      $      $ 2,752,953      $ 110,372,188   
$      $      $      $      $      $ 612,542      $ 1,531,970   

 

The accompanying notes are an integral part of these financial statements.

 

 

  213  

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Unconstrained
Bond Fund
    The Hartford
World Bond
Fund
 

Assets:

    

Investments in securities, at market value

   $     139,396,408      $     3,383,921,797   

Cash

     20,744          

Cash collateral

            20,806,629   

Foreign currency on deposit with custodian

     3,785          

Unrealized appreciation on foreign currency contracts

     130,702        7,866,680   

Unrealized appreciation on OTC swap contracts

     1,144,703        2,446,456   

Receivables:

    

Investment securities sold

     33,943,486        175,751,591   

Fund shares sold

     20,725        10,472,345   

Dividends and interest

     687,270        28,597,640   

Variation margin on financial derivative instruments

     97,125          

OTC swap premiums paid

     2,271,704        4,593,395   

Other assets

     68,328        175,278   
  

 

 

   

 

 

 

Total assets

     177,784,980        3,634,631,811   
  

 

 

   

 

 

 

Liabilities:

    

Unrealized depreciation on foreign currency contracts

     479,317        67,218,802   

Bank overdraft

     460,000        2,059,190   

Bank overdraft - foreign cash

            5,172   

Cash collateral

            1,040,000   

Unrealized depreciation on OTC swap contracts

     555,584        1,515,739   

TBA sale commitments, at market value

     10,659,996          

Payables:

    

Investment securities purchased

     54,907,017        31,853,819   

Fund shares redeemed

     363,717        6,382,223   

Investment management fees

     49,372        1,756,473   

Variation margin on financial derivative instruments

            272,488   

Distribution fees

     27,580        260,222   

Distributions payable

     10,053          

Accrued expenses

     40,075        357,145   

Written options

     222,765        488,058   

OTC Swap premiums received

     1,302,190        5,377,316   
  

 

 

   

 

 

 

Total liabilities

     69,077,666        118,586,647   
  

 

 

   

 

 

 

Net assets

   $ 108,707,314      $ 3,516,045,164   
  

 

 

   

 

 

 

Summary of Net Assets:

    

Capital stock and paid-in-capital

   $ 127,012,691      $ 3,570,014,831   

Undistributed (distributions in excess of) net investment income

     331,563        (14,298,815

Accumulated net realized gain (loss)

     (18,610,764     49,763,644   

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     (26,176     (89,434,496
  

 

 

   

 

 

 

Net assets

   $ 108,707,314      $ 3,516,045,164   
  

 

 

   

 

 

 

Shares authorized

     500,000,000        650,000,000   
  

 

 

   

 

 

 

Par value

   $ 0.001      $ 0.001   
  

 

 

   

 

 

 

Class A:     Net asset value per share

   $ 9.95      $ 10.48   
  

 

 

   

 

 

 

                 Maximum offering price per share

   $ 10.42      $ 10.97   
  

 

 

   

 

 

 

                 Shares outstanding

     6,469,422        51,857,784   
  

 

 

   

 

 

 

                 Net Assets

   $ 64,387,281      $ 543,587,174   
  

 

 

   

 

 

 

Class B:     Net asset value per share

   $ 9.95      $   
  

 

 

   

 

 

 

                 Shares outstanding

     146,301          
  

 

 

   

 

 

 

                 Net Assets

   $ 1,455,477      $   
  

 

 

   

 

 

 

Class C:     Net asset value per share

   $ 9.98      $ 10.46   
  

 

 

   

 

 

 

                 Shares outstanding

     1,551,746        17,581,154   
  

 

 

   

 

 

 

                 Net Assets

   $ 15,479,163      $ 183,977,934   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

214

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Unconstrained
Bond Fund
     The Hartford
World Bond
Fund
 

Class I:      Net asset value per share

   $ 9.96       $ 10.49   
  

 

 

    

 

 

 

                 Shares outstanding

     561,881         211,051,120   
  

 

 

    

 

 

 

                 Net Assets

   $ 5,595,447       $ 2,214,653,350   
  

 

 

    

 

 

 

Class R3:   Net asset value per share

   $ 9.94       $ 10.49   
  

 

 

    

 

 

 

                 Shares outstanding

     15,219         86,723   
  

 

 

    

 

 

 

                 Net Assets

   $ 151,257       $ 909,983   
  

 

 

    

 

 

 

Class R4:   Net asset value per share

   $ 9.94       $ 10.49   
  

 

 

    

 

 

 

                 Shares outstanding

     43,899         395,918   
  

 

 

    

 

 

 

                 Net Assets

   $ 436,308       $ 4,155,123   
  

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 9.94       $ 10.48   
  

 

 

    

 

 

 

                 Shares outstanding

     11,430         28,462   
  

 

 

    

 

 

 

                 Net Assets

   $ 113,591       $ 298,404   
  

 

 

    

 

 

 

Class R6:   Net asset value per share

   $       $ 10.50   
  

 

 

    

 

 

 

                 Shares outstanding

             959   
  

 

 

    

 

 

 

                 Net Assets

   $       $ 10,064   
  

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 9.92       $ 10.50   
  

 

 

    

 

 

 

                 Shares outstanding

     2,125,176         54,163,174   
  

 

 

    

 

 

 

                 Net Assets

   $ 21,088,790       $ 568,453,132   
  

 

 

    

 

 

 

Cost of investments

   $     139,609,646       $     3,414,754,669   

Cost of foreign currency on deposit with custodian

   $ 3,641       $   

Cost of Bank overdraft - foreign cash

   $       $ 10,758   

Proceeds of TBA sale commitments

   $ 10,657,360       $   

Proceeds of written option contracts

   $ 247,285       $ 590,946   

 

The accompanying notes are an integral part of these financial statements.

 

 

  215  

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     Hartford
Duration-Hedged
Strategic Income
Fund
    The Hartford
Emerging
Markets Local
Debt Fund
    The Hartford
Floating Rate
Fund
 

Investment Income:

      

Dividends

   $      $      $ 2,508,130   

Dividends from affiliated investment companies

         287,155                 

Interest

     108            9,251,183            140,860,569   

Other Income

                     

Less: Foreign tax withheld

            (328,387     (155,853
  

 

 

   

 

 

   

 

 

 

Total investment income, net

     287,263        8,922,796        143,212,846   
  

 

 

   

 

 

   

 

 

 

Expenses:

      

Investment management fees

     6,773        1,509,098        16,575,894   

Administrative services fees

      

Class R3

     394        1,887        17,046   

Class R4

     297        1,458        8,059   

Class R5

     198        962        1,605   

Transfer agent fees

      

Class A

     3,758        6,982        570,258   

Class B

                   15,619   

Class C

     798        2,060        655,691   

Class I

     21        11,772        856,934   

Class R3

            7        1,678   

Class R4

            15        637   

Class R5

                   572   

Class R6

                     

Class Y

     14        2,005        3,075   

Distribution fees

      

Class A

     10,355        10,058        1,654,582   

Class B

                   77,214   

Class C

     9,256        11,544        8,677,671   

Class R3

     985        4,718        42,615   

Class R4

     494        2,430        13,432   

Custodian fees

     347        59,394        37,382   

Registration and filing fees

     53,626        44,449        167,263   

Accounting services fees

     948        38,081        487,348   

Board of Directors’ fees

     687        3,967        86,455   

Audit fees

     5,207        6,100        25,857   

Other expenses

     3,796        14,661        390,624   
  

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     97,954               1,731,648        30,367,511   

Expense waivers

     (1,425     (1,950       

Management fee waivers

     (57,183     (264,045     (20,453

Transfer agent fee waivers

                     

Custodian fee offset

            (2       
  

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (58,608     (265,997     (20,453
  

 

 

   

 

 

   

 

 

 

Total expenses, net

     39,346        1,465,651        30,347,058   
  

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     247,917        7,457,145        112,865,788   
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments Other Financial Instruments and Foreign Currency Transactions:

      

Capital gain distributions received from underlying funds

     305,165                 

Net realized gain (loss) on investments

            (23,271,508     (33,502,742

Less: Foreign taxes paid on realized capital gains

            (31,516       

Net realized gain (loss) on investments in affiliated investment companies

     (123,473              

Net realized gain (loss) on purchased options contracts

            1,607,646          

Net realized gain (loss) on futures contracts

     (289,641     (5,781       

Net realized gain (loss) on written options contracts

            268,195          

Net realized gain (loss) on swap contracts

            (1,075,648       

Net realized gain (loss) on foreign currency contracts

            (13,294,542     31,363,661   

Net realized gain (loss) on other foreign currency transactions

            (477,564     (718,339
  

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments Other Financial Instruments and Foreign Currency Transactions

     (107,949     (36,280,718     (2,860,420
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

216

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

The Hartford
Floating Rate
High Income
Fund
    The Hartford
High Yield
Fund
    The Hartford
Inflation Plus
Fund
    The Hartford
Quality
Bond Fund
    The Hartford
Short Duration
Fund
    The Hartford
Strategic Income
Fund
    The Hartford
Total Return
Bond Fund
 
           
$ 232,316      $ 153,056      $      $      $      $ 20,362      $ 88,491   
                                              
      14,371,367        11,188,891        1,240,397        185,477        9,336,693        10,806,822        25,929,304   
         2,232                             3,002        3,019   
  (27,472     (3,007     (2,789                   (34,282     (17,408

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  14,576,211            11,341,172        1,237,608        185,477        9,336,693            10,795,904            26,003,406   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
  1,701,573        1,307,479        2,245,555        73,419        1,672,750        1,114,180        3,489,882   
           
  2,840        2,308        67,774        2,058        907        234        6,631   
  2,207        1,030        15,877        1,554        757        98        12,025   
  1,305        241        2,403        1,042        54        59        664   
           
  69,652        220,540        199,910        1,976        344,562        88,510        551,591   
         8,024        18,288               8,056        5,765        34,036   
  49,765        40,835        128,504        312        58,093        48,581        52,016   
  87,530        21,993        118,426        55        36,088        23,391        9,700   
  61        489        3,534               142        86        826   
  30        193        1,040               96        22        360   
  7        60        629               7               58   
                                              
  102        65        1,799        74        47        943        7,949   
           
  213,195        324,376        388,828        11,738        576,098        173,006        771,414   
         24,916        74,716               7,055        29,257        84,821   
  551,717        428,164        1,097,927        11,188        600,605        523,207        353,189   
  7,098        5,769        169,435        5,146        2,268        584        16,578   
  3,678        1,717        26,461        2,589        1,262        164        20,041   
  20,140        3,868        5,802        1,786        5,802        14,834        23,306   
  72,017        45,397        87,014        42,150        79,316        58,765        74,532   
  43,812        40,228        66,010        2,056        77,435        40,513        179,348   
  6,446        6,694        17,852        793        9,620        7,587        21,819   
  7,162        6,942        8,831        5,405        7,438        7,042        10,917   
  34,000        51,596        65,061        5,666        48,104        40,978        117,604   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  2,874,337        2,542,924             4,811,676        169,007        3,536,562        2,177,806        5,839,307   
         (385            (2,280            (2,700     (25,875
  (153,389     (151,510     (262,084     (40,277     (98,630     (85,583     (9,673
         (546                                 (8,573
  (8     (32     (8            (56     (28     (60

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (153,397     (152,473     (262,092     (42,557     (98,686     (88,311     (44,181

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  2,720,940        2,390,451        4,549,584            126,450        3,437,876        2,089,495        5,795,126   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  11,855,271        8,950,721        (3,311,976     59,027             5,898,817        8,706,409        20,208,280   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
           
                                              
  (6,936,757     (2,853,874     (5,399,816     287,181        931,493        (4,084,729     11,824,806   
                                     (4,898       
                                              
                                     (290,822     (237,009
                (351,806     127,376        (1,640,627     688,671        851,319   
                (42,059                   3,212,952        1,277,955   
         (297,269                          (2,505,583     (5,940,118
  4,485,245        1,374,904        1,512,463                      (1,295,971     5,729,249   
  (191,435     (18,789     258,786                      (37,743     68,333   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (2,642,947     (1,795,028     (4,022,432     414,557        (709,134     (4,318,123         13,574,535   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

217

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     Hartford
Duration-Hedged
Strategic Income
Fund
    The Hartford
Emerging
Markets Local
Debt Fund
    The Hartford
Floating Rate
Fund
 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

      

Net unrealized appreciation (depreciation) of investments

   $      $ (2,159,578   $ (39,781,695

Net unrealized appreciation (depreciation) of investments in affiliated investment companies

     (442,398              

Net unrealized appreciation (depreciation) of purchased options contracts

            (512,381       

Net unrealized appreciation (depreciation) of future contracts

     64,843        23,822          

Net unrealized appreciation (depreciation) of written option contracts

            59,801          

Net unrealized appreciation (depreciation) of swap contracts

            1,329,705          

Net unrealized appreciation (depreciation) of foreign currency contracts

            6,231,886        (8,432,001

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

            104,927        176,969   
  

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     (377,555     5,078,182        (48,036,727
  

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     (485,504     (31,202,536         (50,897,147
  

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     (237,587   $     (23,745,391   $ 61,968,641   
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

218

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

The Hartford
Floating Rate
High Income
Fund
    The Hartford
High Yield
Fund
    The Hartford
Inflation Plus
Fund
    The Hartford
Quality
Bond Fund
    The Hartford
Short Duration
Fund
    The Hartford
Strategic Income
Fund
    The Hartford
Total Return
Bond Fund
 
           
$ (6,470,834   $ (3,497,537   $ 10,350,838      $ 127,862      $ 2,819,673      $ (3,463,628   $ 3,656,806   
                                              
                                     16,972        215,912   
                (21,286     (76,431     (56,836     77,288        (1,502,379
                (79,745                   (26,015     (1,233
         506,899        (15,085                   (433,114     927,711   
  (1,095,931     (399,021         (2,188,398                   (157,557     (3,059,062
  68,279        5,026        2,981                      42,083        60,034   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(7,498,486

    (3,384,633     8,049,305        51,431        2,762,837        (3,943,971     (7,015,823

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
      (10,141,433         (5,179,661     4,026,873        465,988        2,053,703            (8,262,094     6,558,712   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 1,713,838      $ 3,771,060      $ 714,897      $     525,015      $     7,952,520      $ 444,315      $     26,766,992   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

219

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Unconstrained
Bond Fund
    The Hartford
World Bond
Fund
 

Investment Income:

    

Dividends

   $ 2,213      $ 117,785   

Interest

         2,156,314        30,330,496   

Less: Foreign tax withheld

     (5,946     (1,200,120
  

 

 

   

 

 

 

Total investment income, net

     2,152,581        29,248,161   
  

 

 

   

 

 

 

Expenses:

    

Investment management fees

     302,866        9,944,697   

Administrative services fees

    

Class R3

     161        870   

Class R4

     306        988   

Class R5

     56        124   

Transfer agent fees

    

Class A

     62,862        377,081   

Class B

     3,416          

Class C

     9,961        82,390   

Class I

     2,243        1,151,871   

Class R3

     15        55   

Class R4

     15        28   

Class R5

            66   

Class R6

              

Class Y

     156        4,114   

Distribution fees

    

Class A

     83,192        588,570   

Class B

     8,777          

Class C

     77,724        895,984   

Class R3

     403        2,174   

Class R4

     511        1,647   

Custodian fees

     14,905        50,397   

Registration and filing fees

     46,870        127,470   

Accounting services fees

     13,766        325,274   

Board of Directors’ fees

     2,082        32,473   

Audit fees

     5,702        17,402   

Other expenses

     20,976        152,052   
  

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     656,965        13,755,727   

Management fee waivers

     (81,829     (36,633

Transfer agent fee waivers

     (782       

Custodian fee offset

     (2     (876
  

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (82,613     (37,509
  

 

 

   

 

 

 

Total expenses, net

     574,352        13,718,218   
  

 

 

   

 

 

 

Net Investment Income (Loss)

     1,578,229        15,529,943   
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions:

    

Net realized gain (loss) on investments

     405,506        (160,801,323

Net realized gain (loss) on purchased options contracts

     (54,899     3,410,090   

Net realized gain (loss) on futures contracts

     (1,246,464     (9,716,104

Net realized gain (loss) on written options contracts

     793,007        244,167   

Net realized gain (loss) on swap contracts

     (1,118,250     11,977,134   

Net realized gain (loss) on foreign currency contracts

     876,051             198,987,178   

Net realized gain (loss) on other foreign currency transactions

     (8,855     1,588,112   
  

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     (353,904     45,689,254   
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

    

Net unrealized appreciation (depreciation) of investments

     (772,204     20,872,835   

Net unrealized appreciation (depreciation) of purchased options contracts

     11,894        (121,963

Net unrealized appreciation (depreciation) of future contracts

     (20,759     4,947,078   

Net unrealized appreciation (depreciation) of written option contracts

     (13,706     135,880   

Net unrealized appreciation (depreciation) of swap contracts

     85,632        (508,159

Net unrealized appreciation (depreciation) of foreign currency contracts

     (437,978     (69,327,664

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     3,976        (250,250
  

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     (1,143,145         (44,252,243
  

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     (1,497,049     1,437,011   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 81,180      $ 16,966,954   
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

220

 


 

 

[This page is intentionally left blank]

 

 

 

 

 

221

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Changes in Net Assets

 

 

 

     Hartford Duration-Hedged
Strategic Income Fund
 
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Period
November 29,
2013(1) through
October 31,  2014
 

Operations:

    

Net investment income (loss)

   $ 247,917      $ 301,054   

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     (107,949     (202,003

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     (377,555     (28,070
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     (237,587     70,981   
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (222,869     (157,668

Class B

              

Class C

     (52,257     (24,673

Class I

     (14,479     (15,027

Class R3

     (11,723     (11,539

Class R4

     (12,354     (12,658

Class R5

     (12,988     (13,779

Class Y

     (59,402     (63,690
  

 

 

   

 

 

 

Total from net investment income

     (386,072     (299,034
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

              

Class C

              

Class I

              

Class R3

              

Class R4

              

Class R5

              

Class Y

              
  

 

 

   

 

 

 

Total from net realized gain on investments

              
  

 

 

   

 

 

 

From tax return of capital

    

Class A

              

Class C

              

Class I

              

Class R3

              

Class R4

              

Class R5

              

Class Y

              
  

 

 

   

 

 

 

Total from tax return of capital

              
  

 

 

   

 

 

 

Total distributions

     (386,072     (299,034
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     7,098,591        14,705,354   

Issued on reinvestment of distributions

     383,143        298,460   

Redeemed

     (4,050,116     (2,157,287
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     3,431,618        12,846,527   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     2,807,959        12,618,474   
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

     12,618,474          
  

 

 

   

 

 

 

End of period

   $     15,426,433      $     12,618,474   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (136,135   $ 2,020   
  

 

 

   

 

 

 

 

(1)  Commencement of operations.

 

The accompanying notes are an integral part of these financial statements.

 

 

222

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford Emerging Markets
Local Debt Fund
    The Hartford Floating
Rate Fund
    The Hartford Floating Rate
High Income Fund
    The Hartford
High Yield Fund
 
For the
Six-Month Period
Ended
April 30,  2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30,  2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
             
$ 7,457,145      $ 14,194,832      $ 112,865,788      $ 256,050,244      $ 11,855,271      $ 21,604,414      $ 8,950,721      $ 21,798,262   
  (36,280,718     (10,216,500     (2,860,420     52,995,404        (2,642,947     7,440,988        (1,795,028     11,619,071   
  5,078,182        (7,720,588     (48,036,727     (156,113,527     (7,498,486     (15,323,633     (3,384,633     (10,124,000

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (23,745,391     (3,742,256     61,968,641        152,932,121        1,713,838        13,721,769        3,771,060        23,293,333   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
  (195,087     (70,580     (29,204,242     (71,028,695     (4,510,162     (8,552,284     (6,069,547     (14,415,489
                (282,183     (741,602                   (99,197     (296,838
  (45,669     (14,279     (31,888,746     (63,775,268     (2,503,774     (3,921,978     (1,703,160     (4,185,693
  (400,479     (189,256     (47,888,766     (101,921,278     (5,111,482     (7,859,589     (980,932     (2,612,928
  (43,645     (8,848     (350,958     (650,139     (70,810     (110,632     (50,754     (123,015
  (47,870     (8,941     (236,599     (461,028     (77,903     (143,827     (32,127     (62,409
  (50,249     (9,206     (74,910     (155,996     (72,762     (124,083     (12,062     (27,340
  (7,192,718     (1,091,832     (9,105,251     (15,430,112     (359,147     (567,083     (206,406     (456,177

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (7,975,717     (1,392,942     (119,031,655     (254,164,118     (12,706,040     (21,279,476     (9,154,185     (22,179,889

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
         (14,839                   (2,553,158     (497,832              
         (4,003                   (1,639,608     (265,483              
         (25,754                   (2,864,510     (394,395              
         (1,335                   (40,271     (7,588              
         (1,378                   (42,281     (7,613              
         (1,333                   (35,295     (9,157              
         (113,577                   (186,146     (31,374              

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         (162,219                   (7,361,269     (1,213,442              

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
         (633,000                                          
         (128,000                                          
         (1,701,000                                          
         (75,000                                          
         (84,000                                          
         (88,000                                          
         (9,833,000                                          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         (12,542,000                                          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (7,975,717     (14,097,161     (119,031,655     (254,164,118     (20,067,309     (22,492,918     (9,154,185     (22,179,889

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  146,013,079        281,595,354        623,108,547        2,070,471,274        113,039,025        501,448,345        95,202,720        181,840,539   
  7,789,722        12,490,698        98,711,734        205,176,044        19,674,110        21,869,825        8,610,939        21,098,869   
  (154,236,484     (205,706,684     (1,504,270,451     (3,201,598,505     (187,321,825     (366,780,464     (102,576,019     (268,337,087

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (433,683     88,379,368        (782,450,170     (925,951,187     (54,608,690     156,537,706        1,237,640        (65,397,679

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (32,154,791     70,539,951        (839,513,184     (1,027,183,184     (72,962,161     147,766,557        (4,145,485     (64,284,235

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  320,120,806        249,580,855        6,150,393,697        7,177,576,881        538,770,444        391,003,887        423,573,808        487,858,043   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     287,966,015      $     320,120,806      $     5,310,880,513      $     6,150,393,697      $     465,808,283      $     538,770,444      $     419,428,323      $     423,573,808   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 24,454      $ 543,026      $ 419,496      $ 6,585,363      $ (18,572   $ 832,197      $ (53,414   $ 150,050   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

223

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford Inflation
Plus Fund
 
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

    

Net investment income (loss)

   $ (3,311,976   $ 4,000,221   

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     (4,022,432     (37,806,580

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     8,049,305        25,363,944   
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     714,897        (8,442,415
  

 

 

   

 

 

 

Distributions to Shareholders:

    

From net investment income

    

Class A

     (177,245     (2,508,307

Class B

     (3,326     (76,141

Class C

     (48,073     (1,044,538

Class I

     (58,148     (609,545

Class R3

     (26,446     (361,095

Class R4

     (11,492     (144,647

Class R5

     (3,033     (39,014

Class R6

              

Class Y

     (159,379     (1,803,196
  

 

 

   

 

 

 

Total from net investment income

     (487,142     (6,586,483
  

 

 

   

 

 

 

From net realized gain on investments

    

Class A

            (17,315,930

Class B

            (993,161

Class C

            (12,950,044

Class I

            (3,924,721

Class R3

            (2,610,180

Class R4

            (1,009,924

Class R5

            (219,349

Class R6

              

Class Y

            (10,241,478
  

 

 

   

 

 

 

Total from net realized gain on investments

            (49,264,787
  

 

 

   

 

 

 

Total distributions

     (487,142     (55,851,270
  

 

 

   

 

 

 

Capital Share Transactions:

    

Sold

     47,075,581        159,600,517   

Issued on reinvestment of distributions

     457,949        51,648,327   

Redeemed

     (161,982,702     (562,631,786
  

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (114,449,172     (351,382,942
  

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (114,221,417     (415,676,627
  

 

 

   

 

 

 

Net Assets:

    

Beginning of period

         1,017,625,356        1,433,301,983   
  

 

 

   

 

 

 

End of period

   $     903,403,939      $     1,017,625,356   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (4,381,551   $ (582,433
  

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

224

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford Quality
Bond Fund
    The Hartford Short
Duration Fund
    The Hartford Strategic
Income Fund
    The Hartford Total
Return Bond Fund
 
For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 
             
$ 59,027      $ 151,604      $ 5,898,817      $ 10,575,880      $ 8,706,409      $ 18,855,368      $ 20,208,280      $ 40,295,838   
  414,557        916,697        (709,134     1,746,414        (4,318,123     11,333,623        13,574,535        34,779,502   
  51,431        88,623        2,762,837        (4,608,096     (3,943,971     (3,554,091     (7,015,823     (19,901

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  525,015        1,156,924        7,952,520        7,714,198        444,315        26,634,900        26,766,992        75,055,439   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
             
  (19,860     (48,008     (3,767,936     (6,942,458     (2,878,032     (5,832,692     (5,692,414     (12,751,564
                (45,999     (122,528     (97,946     (243,708     (93,065     (373,827
  (54     (1,491     (540,673     (994,344     (1,776,796     (3,714,287     (395,363     (1,041,639
  (6,905     (19,197     (1,746,203     (2,477,376     (894,018     (1,868,206     (168,424     (163,940
  (1,674     (7,526     (6,079     (8,514     (4,583     (7,890     (50,374     (128,736
  (4,088     (12,678     (8,258     (14,883     (2,731     (5,129     (147,411     (333,655
  (6,535     (17,859     (1,055     (1,994     (2,635     (5,006     (14,067     (18,141
                              (222            (106       
  (31,279     (84,342     (64,673     (93,998     (2,578,236     (7,645,374     (11,782,003     (24,019,803

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (70,395     (191,101     (6,180,876     (10,656,095     (8,235,199     (19,322,292     (18,343,227     (38,831,305

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  (132,737            (1,192,943     (1,823,000     (3,059,029            (13,271,150     (1,842
                (15,614     (36,943     (133,060            (405,355       
  (32,216            (317,429     (534,308     (2,335,874            (1,533,776       
  (31,577            (465,289     (432,743     (1,084,853            (303,064       
  (30,604            (2,409     (2,513     (4,634            (144,277       
  (30,740            (2,538     (3,787     (2,843            (349,362       
  (30,877            (278     (456     (2,580            (21,184       
                              (216            (215       
  (139,050            (18,629     (12,423     (2,530,714            (21,943,324       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (427,801            (2,015,129     (2,846,173     (9,153,803            (37,971,707     (1,842

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (498,196     (191,101     (8,196,005     (13,502,268     (17,389,002     (19,322,292     (56,314,934     (38,833,147

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  2,477,518        4,203,721        150,111,141        506,257,554        47,067,484        133,683,201        275,832,398        (431,977,169
  496,896        191,922        6,570,780        11,734,618        16,646,662        18,358,743        55,377,335        38,471,826   
  (793,969     (3,221,273     (223,305,331     (397,769,254     (69,728,644     (301,892,601     (142,977,100     (385,872,662

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  2,180,445        1,174,370        (66,623,410     120,222,918        (6,014,498     (149,850,657     188,232,633        84,576,333   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  2,207,264        2,140,193        (66,866,895     114,434,848        (22,959,185     (142,538,049     158,684,691        120,798,625   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             
  28,082,314        25,942,121        819,384,819        704,949,971        423,127,693        565,665,742        1,731,373,751        1,610,575,129   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     30,289,578      $     28,082,314      $      752,517,924      $      819,384,819      $     400,168,508      $      423,127,693      $     1,890,058,442      $     1,731,373,751   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ (8,876   $ 2,492      $ (96,414   $ 185,645      $ 35,807      $ (435,403   $ 2,892,840      $ 1,027,787   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

225

 


Hartford Funds – Taxable Fixed Income Funds

Statements of Changes in Net Assets – (continued)

 

 

 

     The Hartford Unconstrained
Bond Fund
    The Hartford World Bond Fund  
     For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
    For the
Six-Month Period
Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31,
2014
 

Operations:

        

Net investment income (loss)

   $ 1,578,229      $ 3,315,658      $ 15,529,943      $ 29,990,766   

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

     (353,904     255,397        45,689,254        110,780,308   

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

     (1,143,145     11,706        (44,252,243     (77,603,113
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

     81,180        3,582,761        16,966,954        63,167,961   
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Shareholders:

        

From net investment income

        

Class A

     (838,432     (2,020,305     (13,843,215     (5,720,789

Class B

     (15,463     (51,015              

Class C

     (137,175     (329,133     (4,878,877     (784,621

Class I

     (77,811     (65,756     (64,864,357     (17,983,338

Class R3

     (1,782     (4,258     (23,685     (5,324

Class R4

     (5,213     (3,869     (30,310     (10,485

Class R5

     (1,584     (4,262     (7,537     (3,502

Class R6

                   (323       

Class Y

     (283,023     (544,995     (17,411,291     (6,520,993
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net investment income

     (1,360,483     (3,023,593     (101,059,595     (31,029,052
  

 

 

   

 

 

   

 

 

   

 

 

 

From net realized gain on investments

        

Class A

                          (1,501,550

Class C

                          (544,171

Class I

                          (3,042,643

Class R3

                          (2,020

Class R4

                          (2,979

Class R5

                          (1,140

Class Y

                          (1,137,769
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from net realized gain on investments

                          (6,232,272
  

 

 

   

 

 

   

 

 

   

 

 

 

From tax return of capital

        

Class A

            (333,380              

Class B

            (8,418              

Class C

            (54,312              

Class I

            (10,851              

Class R3

            (703              

Class R4

            (638              

Class R5

            (703              

Class Y

            (89,932              
  

 

 

   

 

 

   

 

 

   

 

 

 

Total from tax return of capital

            (498,937              
  

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

     (1,360,483     (3,522,530     (101,059,595     (37,261,324
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Share Transactions:

        

Sold

     8,074,408        19,730,657        1,002,252,166        2,257,406,374   

Issued on reinvestment of distributions

     1,299,384        3,405,082        83,533,965        29,407,769   

Redeemed

     (12,784,272     (36,854,826     (572,815,896     (1,118,624,835
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

     (3,410,480     (13,719,087     512,970,235        1,168,189,308   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

     (4,689,783     (13,658,856     428,877,594        1,194,095,945   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Assets:

        

Beginning of period

     113,397,097        127,055,953        3,087,167,570        1,893,071,625   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $     108,707,314      $     113,397,097      $     3,516,045,164      $     3,087,167,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ 331,563      $ 113,817      $ (14,298,815   $ 71,230,837   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

226

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements

April 30, 2015 (Unaudited)

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. (the “Company”) is an open-end management investment company comprised of forty-two series, as of April 30, 2015. The financial statements for certain other series of the Company are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

Hartford Duration-Hedged Strategic Income Fund (the “Duration-Hedged Strategic Income Fund”)

The Hartford Emerging Markets Local Debt Fund (the “Emerging Markets Local Debt Fund”)

The Hartford Floating Rate Fund (the “Floating Rate Fund”)

The Hartford Floating Rate High Income Fund (the “Floating Rate High Income Fund”)

The Hartford High Yield Fund (the “High Yield Fund”)

The Hartford Inflation Plus Fund (the “Inflation Plus Fund”)

The Hartford Quality Bond Fund (the “Quality Bond Fund”)

The Hartford Short Duration Fund (the “Short Duration Fund”)

The Hartford Strategic Income Fund (the “Strategic Income Fund”)

The Hartford Total Return Bond Fund (the “Total Return Bond Fund”)

The Hartford Unconstrained Bond Fund (the “Unconstrained Bond Fund”)

The Hartford World Bond Fund (the “World Bond Fund”)

The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Duration-Hedged Strategic Income Fund, Floating Rate Fund, High Yield Fund, Inflation Plus Fund, Quality Bond Fund, Short Duration Fund, Strategic Income Fund, Total Return Bond Fund and Unconstrained Bond Fund are diversified open-end management investment companies. Emerging Markets Local Debt Fund, Floating Rate High Income Fund and World Bond Fund are non-diversified open-end management investment companies. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class C, Class I, Class R3, Class R4, Class R5 and Class Y shares. In addition, each Fund, except Duration-Hedged Strategic Income Fund, Emerging Markets Local Debt Fund, Floating Rate High Income Fund, Quality Bond Fund and World Bond Fund offer Class B shares. Effective November 7, 2014 Strategic Income Fund, Total Return Bond Fund and World Bond Fund began offering Class R6 shares. Class A shares of each Fund, except Floating Rate Fund, Floating Rate High Income Fund and Short Duration Fund are sold with a front-end sales charge of up to 4.50%. Class A shares are sold with a front-end sales charge of up to 3.00% for Floating Rate Fund and Floating Rate High Income Fund and 2.00% for Short Duration Fund. Class B shares were sold with a contingent deferred sales charge which is assessed on the lesser of the per share net asset value (“NAV”) 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 (see note below regarding the closing of Class B shares). Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4, R5 and R6 shares, which are offered to employer-sponsored retirement plans, and Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance, and that Class B shares automatically convert to Class A shares after 8 years.

No new or additional investments are allowed in Class B shares of each Fund (including investments through any systematic investment plan). Existing shareholders of Class B shares may continue to hold their Class B shares, exchange their Class B shares for Class B shares of another Hartford Fund (as permitted by existing exchange privileges), or redeem their Class B shares as described in each Fund’s prospectus. Reinstatement privileges with respect to Class B shares are set forth in each Fund’s prospectus. For investors electing to reinvest capital gains and dividends, any such capital gains or dividends on Class B shares will continue to be reinvested in Class B shares of each Fund. All Class B share attributes, including the 12b-1 fee, contingent deferred sales charge schedule, and conversion to Class A shares, remain unchanged.

The Hartford Duration-Hedged Strategic Income Fund, as a “Fund of Funds,” seeks its investment goal through investment primarily in Class Y shares of The Hartford Strategic Income Fund (“Affiliated Investment Company”) and may also invest in one or more unaffiliated money market funds (together with the Affiliated Investment Company, the “Underlying Funds”) and other instruments.

 

 

227

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

2. Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a) Determination of Net Asset Value – The per share net asset value (“NAV”) of each class of each Funds’ shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b) Investment Valuation and Fair Value Measurements – Investments in open-end mutual funds are valued at the respective NAV of each Underlying Fund as determined as of the NYSE Close on the Valuation Date. The Duration-Hedged Strategic Income Fund generally uses market prices in valuing the remaining portfolio investments. If market prices are not readily available or are deemed unreliable, the Fund will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of the Company’s Board of Directors. For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio, except Duration-Hedged Strategic Income Fund, for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, the Funds will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of the Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Company’s Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Investments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign investments in which a Fund invests 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 NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio investment is primarily traded. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Fixed income investments (other than short-term obligations), non-exchange traded derivatives and centrally cleared swaps held by a Fund are normally valued on the basis of quotes obtained from independent pricing services or brokers and dealers in accordance with procedures established by each Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values through accepted market modeling, trading and pricing conventions. Inputs to the models may include, but are not limited to, prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models and the investment’s terms and conditions. Generally, the Funds may use fair valuation in regard to fixed income investments when the Funds hold defaulted or distressed investments or investments in a company in which a reorganization is pending. Short-term investments maturing in 60 days or less are generally valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days, which approximates fair value.

Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If the last trade price for exchange traded options does not fall between the bid and ask prices, the value will be the mean of the bid and ask prices as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of over-the-counter (“OTC”) options and such instruments that do not trade on an exchange, values may be supplied by a pricing service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.

 

 

228

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of certain Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Funds.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.
    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.
    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price. For more information on specific valuation techniques and unobservable inputs, please see the following table titled “Quantitative Information about Level 3 Fair Value Measurements.”

The Board of Directors of the Company generally reviews and approves the “Fair Valuation Summary” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include the Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of the Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, the Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable

 

 

229

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each Company then must consider for ratification all of the fair value determinations made during the previous quarter.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Trade date for senior floating rate interests purchased in the primary loan market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary loan market is the date on which the transaction is entered into.

Dividend income from domestic securities is accrued on the ex-dividend date. Income and capital gain distributions from the Underlying Funds are accrued on the ex-dividend date.

In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, certain Funds will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis. Paydown gains and losses on mortgage related and other asset backed securities are included in interest income in the Statement of Operations, as applicable.

 

  d) Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which a Fund invests. The amount of foreign tax expense is included on the accompanying Statements of Operations as a reduction to net realized gain on investments in these securities.

 

  e) Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The Funds do not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

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

 

  f) Joint Trading Account – Each Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  g) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

 

 

230

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by the Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. Normally, for each Fund, except Duration-Hedged Strategic Income Fund, dividends from net investment income are declared daily and paid monthly. The policy of Duration-Hedged Strategic Income Fund is to pay dividends from net investment income, if any, monthly. Dividends from realized gains, if any, are paid at least once a year.

Long-term capital gains distributions received from Underlying Funds, if applicable, are distributed at least annually, when required. Unless shareholders specify otherwise, all dividends and distributions will be automatically reinvested in additional full or fractional shares of Duration-Hedged Strategic Income Fund.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts).

 

3. Securities and Other Investments:

 

  a) Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk—that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a 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, which approximates fair value. Repurchase agreements have master netting arrangements which allow the Funds to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of April 30, 2015.

 

  b) Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of its net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Each Fund may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by the Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  c) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

 

 

231

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

In connection with certain Funds’ ability to purchase investments on a when-issued or forward commitment basis, a Fund may enter into to-be announced (“TBA”) commitments. TBA commitments are forward agreements for the purchase or sale of mortgage backed securities for a fixed price, with payment and delivery on an agreed-upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. Although a Fund may enter into TBA commitments with the intention of acquiring or delivering securities for its portfolio, the Fund can extend the settlement date, roll the transaction, or dispose of a commitment prior to settlement if deemed appropriate to do so. If the TBA commitment is closed through the acquisition of an offsetting TBA commitment, the Fund realizes a gain or loss. In a TBA roll transaction, a Fund generally purchases or sells the initial TBA commitment prior to the agreed upon settlement date and enters into a new TBA commitment for future delivery or receipt of the mortgage backed securities. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

Certain Funds may enter into “dollar rolls” in which a Fund sells securities and contracts with the same counterparty to repurchase substantially similar securities (for example, same issuer, coupon and maturity) on a specified future date at an agreed upon price. A Fund gives up the right to receive interest paid on the investments sold. The Fund would benefit to the extent of any differences between the price received for the security and the lower forward price for the future purchase. Dollar rolls involve the risk that the market value of the securities that a Fund is required to purchase may decline below the agreed upon repurchase price of those securities. A Fund records dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions are excluded from the Funds’ portfolio turnover rate. See each Fund’s Schedule of Investments, if applicable, for open dollar roll transactions as of April 30, 2015.

 

  d) Senior Floating Rate Interests – Certain Funds may invest in senior floating rate interests. Senior floating rate interests 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 on 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 interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. A Fund may invest in multiple series or tranches of a senior floating rate interest, which may have varying terms and carry different associated risks. A Fund may also enter into unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full. A Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a senior floating rate interest. In certain circumstances, a Fund may receive various fees upon the restructure of a senior floating rate interest by a borrower. Fees earned/paid may be recorded as a component of income or realized gain/loss in the Statements of Operations.

Senior floating rate interests are typically rated below-investment-grade, which suggests they are more likely to default and generally pay higher interest rates 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. See each Fund’s Schedule of Investments, if applicable, for outstanding senior floating rate interests as of April 30, 2015.

 

  e) Mortgage Related and Other Asset Backed Securities – Certain Funds may invest in mortgage related and other asset backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage backed securities, stripped mortgage backed securities, asset backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Mortgage related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. These securities provide a monthly payment that consists of both interest and principal payments. Interest payments may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage related securities is guaranteed by the full faith and credit of the United States Government. Mortgage related and other asset backed securities created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. See each Fund’s Schedule of Investments, if applicable, for mortgage related and other asset backed securities as of April 30, 2015.

 

 

232

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  f) Inflation Indexed Bonds – Certain Funds may invest in inflation indexed bonds. Inflation indexed bonds are fixed income investments whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive the principal amount until maturity. See each Fund’s Schedule of Investments, if applicable, for inflation indexed bonds as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to or within the Schedules of Investments for purchased options, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Foreign Currency Contracts – Each Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of April 30, 2015.

 

  b) Futures Contracts – Each Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

  c)

Options Contracts – An option contract is a contract sold by one party to another party that offers the buyer the right, but not the obligation, to buy (call) or sell (put) an investment or other financial asset at an agreed-upon price during a specific period of time or on a specific date. Option contracts are either privately negotiated in the over-the-counter market (“OTC options”) or executed in a registered exchange (“exchange traded options”). A Fund may write (sell) covered call and put options on futures, swaps (“swaptions”), securities, commodities or currencies. “Covered” means that so long as a Fund is obligated as the writer of an option, it will own either the underlying investments or currency or an option to purchase the same underlying investments or currency having an expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will pledge cash or other liquid investments having a value equal to or greater than the fluctuating market value of the option investment or currency. Writing put options increases a Fund’s exposure to the underlying instrument. Writing call options decreases a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset amounts paid on the underlying futures, swap, investment or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable

 

 

233

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. A Fund may also purchase put and call options. Purchasing call options increases a Fund’s exposure to the underlying instrument. Purchasing put options decreases a Fund’s exposure to the underlying instrument. Each Fund pays a premium, which is included on the Fund’s Statements of Assets and Liabilities as an investment and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is generally limited to the premium paid. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss. Entering into over-the-counter options also exposes a Fund to counterparty risk. Counterparty risk is the possibility that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements.

See each Fund’s Schedule of Investments, if applicable, for outstanding purchased and written option contracts as of April 30, 2015. Transactions involving written option contracts during the six-month period ended April 30, 2015, are summarized below:

The Hartford Emerging Markets Local Debt Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     15,270,415        161,503   

Written

     33,209,000        320,611   

Expired

     (13,325,000     (227,882

Closed

     (29,599,415     (208,035

Exercised

              
  

 

 

   

 

 

 

End of Period

     5,555,000        46,197   
  

 

 

   

 

 

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     33,917,243        274,505   

Written

     75,800,303        625,981   

Expired

     (50,680,940     (412,996

Closed

     (39,471,606     (281,724

Exercised

              
  

 

 

   

 

 

 

End of Period

     19,565,000        205,766   
  

 

 

   

 

 

 

The Hartford Inflation Plus Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     3,790,000        87,306   

Written

              

Expired

              

Closed

     (3,790,000     (87,306

Exercised

              
  

 

 

   

 

 

 

End of Period

              
  

 

 

   

 

 

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     3,790,000        91,885   

Written

              

Expired

              

Closed

     (3,790,000     (91,885

Exercised

              
  

 

 

   

 

 

 

End of Period

              
  

 

 

   

 

 

 

 

 

234

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford Strategic Income Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     23,205,000        392,435   

Written

     171,875,000        1,929,629   

Expired

     (96,000,000     (1,289,993

Closed

     (67,250,000     (691,383

Exercised

              
  

 

 

   

 

 

 

End of Period

     31,830,000        340,688   
  

 

 

   

 

 

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     23,205,000        281,786   

Written

     171,875,000        1,583,936   

Expired

     (144,505,000     (1,392,594

Closed

     (18,745,000     (201,274

Exercised

              
  

 

 

   

 

 

 

End of Period

     31,830,000        271,854   
  

 

 

   

 

 

 

The Hartford Total Return Bond Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     140,364,000        974,301   

Written

     147,480,016        1,286,733   

Expired

     (269,669,000     (724,700

Closed

     (12,950,016     (770,349

Exercised

              
  

 

 

   

 

 

 

End of Period

     5,225,000        765,985   
  

 

 

   

 

 

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     138,279,000        796,402   

Written

     144,680,016        1,152,157   

Expired

     (267,584,000     (432,600

Closed

     (10,150,016     (749,974

Exercised

              
  

 

 

   

 

 

 

End of Period

     5,225,000        765,985   
  

 

 

   

 

 

 

The Hartford Unconstrained Bond Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     6,875,000        156,054   

Written

     44,765,000        530,087   

Expired

     (22,845,000     (301,573

Closed

     (19,860,000     (251,562

Exercised

              
  

 

 

   

 

 

 

End of Period

     8,935,000        133,006   
  

 

 

   

 

 

 

 

 

235

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     6,875,000        126,763   

Written

     44,365,000        439,289   

Expired

     (36,145,000     (336,766

Closed

     (6,160,000     (115,007

Exercised

              
  

 

 

   

 

 

 

End of Period

     8,935,000        114,279   
  

 

 

   

 

 

 

The Hartford World Bond Fund

 

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

     90,125,000        90,125   

Written

     161,315,000        354,118   

Expired

     (91,275,000     (104,966

Closed

     (110,040,000     (117,192

Exercised

              
  

 

 

   

 

 

 

End of Period

     50,125,000        222,085   
  

 

 

   

 

 

 

Put Options Written During the Period

   Number of
Contracts
    Premium
Amounts
 

Beginning of period

              

Written

     75,982,000        463,260   

Expired

     (19,910,000     (43,626

Closed

     (6,120,000     (50,832

Exercised

            59   
  

 

 

   

 

 

 

End of Period

     49,952,000        368,861   
  

 

 

   

 

 

 

 

  d) Swap Contracts – Each Fund may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared in a central clearing house (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are valued based on custom valuations furnished by an independent pricing service. Swaps for which prices are not available from an independent pricing service are valued in accordance with procedures established by the Company’s Board of Directors. Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statement of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swap. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statement of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statement of Operations.

Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for

 

 

236

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).

A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statement of Assets and Liabilities, as applicable) as well as the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces a Fund’s exposure to counterparty risk. A Fund is still exposed to the counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.

Credit Default Swap Contracts – The credit default swap market allows a Fund to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.

Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statement of Operations. 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. Although specified events are contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of six-month period-end are disclosed in the notes to the Schedule of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. See each Fund’s Schedule of Investments, if applicable, for outstanding credit default swap contracts as of April 30, 2015.

Interest Rate Swap Contracts – Certain Funds are subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because certain Funds holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap contracts. In a typical interest rate swap, one party agrees to make regular payments equal to a floating interest rate, based on a specified interest rate or benchmark (e.g. London Interbank Offered Rate (“LIBOR”)), multiplied by a notional amount, in return for payments equal to a fixed rate multiplied by the same amount, for a specific period of time. The net interest received or paid on interest rate swap contracts is recorded as a realized gain or loss. Interest rate swaps are marked to market daily and the change, if any, is recorded as an unrealized gain or loss in the Statements of Operations. When the interest rate swap contract is terminated early, a Fund records a realized gain or loss equal to the difference between the current market value and the upfront premium or cost.

 

 

237

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

If an interest rate swap contract provides for payments in different currencies, the parties might agree to exchange the notional amount as well. Interest rate swaps may also depend on other prices or rates, such as the value of an index. The risks of interest rate swaps include changes in market conditions which will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligations under the contract. A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. See each Fund’s Schedule of Investments, if applicable, for outstanding interest rate swap contracts as of April 30, 2015.

Total Return Swap Contracts – Certain Funds may invest in total return swap contracts. An investment in a total return swap allows a Fund to gain or mitigate exposure to underlying referenced securities, indices or commodities. Total return swap contracts involve commitments where cash flows are exchanged based on the price of underlying securities, indices or commodities and based on a fixed or variable rate. One party would receive payments based on the price appreciation or depreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying to or receiving from the counterparty seller an agreed-upon rate, which can be fixed or variable. A variable rate may be correlated to a base rate, such as the LIBOR, and is adjusted each reset period, which are defined at the beginning of the contract. Therefore, if interest rates increase over the term of the swap contract, the party paying the rate may be required to pay a higher rate at each swap reset date.

Total return swap contracts on indices involve commitments to pay interest in exchange for a market-linked return. One party pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding total return swap contracts as of April 30, 2015.

Spreadlock Swap Contracts – Certain Funds may invest in spreadlock swap contracts. These contracts involve commitments to pay or receive a settlement amount calculated as the spread difference between two interest rate curves and a fixed spread at a specific forward date determined at the beginning of the contract. Settlement amounts paid or received are recorded as a realized gain or loss on the Statements of Operations at the determination date. See each Fund’s Schedule of Investments, if applicable, for outstanding spreadlock swap contracts as of April 30, 2015.

 

  e) Additional Derivative Instrument Information:

Duration-Hedged Strategic Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
Foreign
     Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on futures contracts(2)

   $ 32,204       $       $       $       $       $       $ 32,204   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 32,204       $       $       $       $       $       $ 32,204   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on futures contracts(2)

     47,710                                                 47,710   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     47,710       $     —       $     —       $     —       $     —       $     —       $     47,710   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

 

 

238

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

           

Net realized gain (loss) on futures

   $ (289,641   $       $       $       $       $       $     (289,641
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (289,641   $       $       $       $       $       $ (289,641
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

  

Net change in unrealized appreciation (depreciation) of futures

   $ 64,843      $       $       $       $       $       $ 64,843   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 64,843      $     —       $     —       $     —       $     —       $     —       $ 64,843   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Emerging Markets Local Debt Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $ 115,901       $ 315,561       $       $       $       $       $ 431,462   

Unrealized appreciation on foreign currency contracts

             11,490,921                                         11,490,921   

Unrealized appreciation on swap contracts(1)

     565,911                                                 565,911   

Unrealized appreciation on futures contracts(2)

     24,648                                                 24,648   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 706,460       $     11,806,482       $     —       $     —       $     —       $     —       $     12,512,942   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 8,192,802       $       $       $       $       $ 8,192,802   

Unrealized depreciation on swap contracts(1)

     822,636                                                 822,636   

Unrealized depreciation on futures contracts(2)

     28,928                                                 28,928   

Written options, market value

             269,548                                         269,548   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     851,564       $ 8,462,350       $       $       $       $       $ 9,313,914   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on purchased options

   $      $ 1,607,646      $      $       $       $       $ 1,607,646   

Net realized gain (loss) on written options

            268,195                                       268,195   

Net realized gain (loss) on futures

     (5,781                                           (5,781

Net realized gain (loss) on swap contracts

     (1,048,582            (27,066                             (1,075,648

Net realized gain (loss) on foreign currency contracts

            (13,294,542                                    (13,294,542
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (1,054,363   $     (11,418,701   $     (27,066   $     —       $     —       $     —       $     (12,500,130
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

239

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

     

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ (3,679   $ (508,702   $       $       $       $       $ (512,381

Net change in unrealized appreciation (depreciation) of written options

            59,801                                        59,801   

Net change in unrealized appreciation (depreciation) of futures

     23,822                                               23,822   

Net change in unrealized appreciation (depreciation) of swap contracts

     1,306,124               23,581                                 1,329,705   

Net change in unrealized appreciation (depreciation) of foreign currency

            6,231,886                                        6,231,886   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,326,267      $     5,782,985      $     23,581       $     —       $     —       $     —       $     7,132,833   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Floating Rate Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 799,593       $       $       $       $       $ 799,593   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 799,593       $       $       $       $       $ 799,593   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 6,837,197       $       $       $       $       $ 6,837,197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     6,837,197       $     —       $     —       $     —       $     —       $     6,837,197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

             

Net realized gain (loss) on foreign currency contracts

   $       $ 31,363,661      $       $       $       $       $ 31,363,661   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 31,363,661      $       $       $       $       $     31,363,661   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of foreign currency

   $       $ (8,432,001   $       $       $       $       $ (8,432,001
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     (8,432,001   $     —       $     —       $     —       $     —       $ (8,432,001
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

240

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Floating Rate High Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 138,392       $       $       $       $       $ 138,392   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 138,392       $       $       $       $       $ 138,392   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 913,088       $       $       $       $       $ 913,088   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     913,088       $     —       $     —       $     —       $     —       $     913,088   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

           

Net realized gain (loss) on foreign currency contracts

   $       $ 4,485,245      $       $       $       $       $ 4,485,245   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 4,485,245      $       $       $       $       $ 4,485,245   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

     

Net change in unrealized appreciation (depreciation) of foreign currency

   $     —       $     (1,095,931   $     —       $     —       $     —       $     —       $     (1,095,931
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (1,095,931   $       $       $       $       $ (1,095,931
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

High Yield Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on swap contracts(1)

   $       $       $ 480,792       $       $       $       $ 480,792   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $       $ 480,792       $       $       $       $ 480,792   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 295,653       $       $       $       $       $ 295,653   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     295,653       $     —       $     —       $     —       $     —       $     295,653   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

 

 

241

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on swap contracts

   $       $      $ (297,269   $       $       $       $ (297,269

Net realized gain (loss) on foreign currency contracts

             1,374,904                                       1,374,904   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     —       $     1,374,904      $     (297,269   $     —       $     —       $     —       $     1,077,635   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

  

Net change in unrealized appreciation (depreciation) of swap contracts

   $       $      $ 506,899      $       $       $       $ 506,899   

Net change in unrealized appreciation (depreciation) of foreign currency

             (399,021                                    (399,021
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ (399,021   $ 506,899      $       $       $       $ 107,878   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Inflation Plus Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on foreign currency contracts

   $       $ 268,554       $       $       $       $       $ 268,554   

Unrealized appreciation on swap contracts(1)

     6,738                                                 6,738   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,738       $ 268,554       $       $       $       $       $ 275,292   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 1,042,402       $       $       $       $       $ 1,042,402   

Unrealized depreciation on Swap contracts(1)

     21,823                                                 21,823   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     21,823       $     1,042,402       $     —       $     —       $     —       $     —       $     1,064,225   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on written options

   $      $ (42,059   $       $       $       $       $ (42,059

Net realized gain (loss) on futures

     (351,806                                            (351,806

Net realized gain (loss) on foreign currency contracts

            1,512,463                                        1,512,463   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (351,806   $ 1,470,404      $       $       $       $       $ 1,118,598   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of written options

   $      $ (79,745   $       $       $       $       $ (79,745

Net change in unrealized appreciation (depreciation) of futures

     (21,286                                            (21,286

Net change in unrealized appreciation (depreciation) of swap contracts

     (15,085                                            (15,085

Net change in unrealized appreciation (depreciation) of foreign currency

            (2,188,398                                     (2,188,398
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     $    (36,371   $     (2,268,143   $     —       $     —       $     —       $     —       $     (2,304,514
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

242

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Quality Bond Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Liabilities:

                    

Unrealized depreciation on futures contracts(2)

   $ 54,976       $       $       $       $       $       $ 54,976   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     54,976       $     —       $     —       $     —       $     —       $     —       $     54,976   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

              

Net realized gain (loss) on futures

   $ 127,376      $       $       $       $       $       $ 127,376   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 127,376      $       $       $       $       $       $ 127,376   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of futures

   $ (76,431   $       $       $       $       $       $ (76,431
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (76,431   $     —       $     —       $     —       $     —       $     —       $     (76,431
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Short Duration Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Unrealized appreciation on futures contracts(2)

   $ 388,492       $       $       $       $       $       $ 388,492   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 388,492       $       $       $       $       $       $ 388,492   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on futures contracts(2)

   $ 875,567       $       $       $       $       $       $ 875,567   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     875,567       $     —       $     —       $     —       $     —       $     —       $     875,567   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

           

Net realized gain (loss) on futures

  $     (1,640,627   $     —      $     —      $     —      $     —      $     —      $     (1,640,627
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ (1,640,627   $      $      $      $      $      $ (1,640,627
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

     

Net change in unrealized appreciation (depreciation) of futures

  $ (56,836   $      $      $      $      $      $ (56,836
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ (56,836   $      $      $      $      $      $ (56,836
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

243

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Strategic Income Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $       $ 151,703       $       $       $       $       $ 151,703   

Unrealized appreciation on foreign currency contracts

             2,067,085                                         2,067,085   

Unrealized appreciation on swap contracts(1)

     105,597                 4,181,676                                 4,287,273   

Unrealized appreciation on futures contracts(2)

     501,461                                                 501,461   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 607,058       $ 2,218,788       $ 4,181,676       $       $       $       $ 7,007,522   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 2,447,910       $       $       $       $       $ 2,447,910   

Unrealized depreciation on swap contracts(1)

     537,270                 1,760,777                                 2,298,047   

Unrealized depreciation on futures contracts(2)

     498,085                                                 498,085   

Written options, market value

     531,938                                                 531,938   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,567,293       $     2,447,910       $     1,760,777       $     —       $     —       $     —       $     5,775,980   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on purchased options

   $ (197,296   $ (93,526   $      $       $       $       $ (290,822

Net realized gain (loss) on written options

     895,907               2,317,045                                3,212,952   

Net realized gain (loss) on futures

     688,671                                              688,671   

Net realized gain (loss) on swap contracts

     (285,125                (2,414,611)        194,153                         (2,505,583

Net realized gain (loss) on foreign currency contracts

            (1,295,971                                        (1,295,971
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     1,102,157      $     (1,389,497   $ (97,566)      $     194,153       $     —       $     —       $ (190,753
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ 172,772      $ (155,800   $      $       $       $       $ 16,972   

Net change in unrealized appreciation (depreciation) of written options

     80,604               (106,619                             (26,015

Net change in unrealized appreciation (depreciation) of futures

     77,288                                              77,288   

Net change in unrealized appreciation (depreciation) of swap contracts

     (443,133            (29,584     39,603                         (433,114)   

Net change in unrealized appreciation (depreciation) of foreign currency

            (157,557                                    (157,557
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (112,469   $ (313,357   $ (136,203   $ 39,603       $       $       $ (522,426)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

244

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Total Return Bond Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

  

        

Investments in securities, at value (purchased options), market value

   $       $ 245,423       $       $       $       $       $ 245,423   

Unrealized appreciation on foreign currency contracts

             929,161                                         929,161   

Unrealized appreciation on swap contracts(1)

     9,977                 1,327,761                                 1,337,738   

Unrealized appreciation on futures contracts(2)

     362,966                                                 362,966   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 372,943       $ 1,174,584       $ 1,327,761       $       $       $       $ 2,875,288   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 3,540,105       $       $       $       $       $ 3,540,105   

Unrealized depreciation on swap contracts(1)

     24,888                 3,785,907                                 3,810,795   

Unrealized depreciation on futures contracts(2)

     1,269,386                                                 1,269,386   

Written options, market value

     1,482,466                                                 1,482,466   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     2,776,739       $     3,540,105       $     3,785,907       $     —       $     —       $     —       $     14,638,248   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

            

Net realized gain (loss) on purchased options

   $ (85,438   $ (148,340   $ (3,232   $       $       $       $ (237,009

Net realized gain (loss) on written options

     120,656               1,157,299                                1,277,955   

Net realized gain (loss) on futures

     851,319                                              851,319   

Net realized gain (loss) on swap contracts

     (2,560            (5,937,678     120                         (5,940,118

Net realized gain (loss) on foreign currency contracts

            5,729,249                                       5,729,249   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 883,978      $ 5,580,909      $     (4,783,611   $     120       $       $       $ 1,681,396   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ 354,097      $ (141,269   $ 3,084      $       $       $       $ 215,912   

Net change in unrealized appreciation (depreciation) of written options

     2,912               (4,145                             (1,233

Net change in unrealized appreciation (depreciation) of futures

     (1,502,379                                           (1,502,379

Net change in unrealized appreciation (depreciation) of swap contracts

     (13,414            941,125                                927,711   

Net change in unrealized appreciation (depreciation) of foreign currency

            (3,059,062                                    (3,059,062
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (1,158,784   $     (2,934,662   $ 940,064      $       $     —       $     —       $     (3,153,382
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

245

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Unconstrained Bond Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $       $ 33,768       $       $       $       $       $ 33,768   

Unrealized appreciation on foreign currency contracts

             130,702                                         130,702   

Unrealized appreciation on swap contracts(1)

     40,477                 1,107,241                                 1,147,718   

Unrealized appreciation on futures contracts(2)

     87,849                                                 87,849   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 128,326       $ 164,470       $     1,107,241       $       $       $       $ 1,400,037   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 479,317       $       $       $       $       $ 479,317   

Unrealized depreciation on swap contracts(1)

     144,986                 514,154                                 659,140   

Unrealized depreciation on futures contracts(2)

     62,258                                                 62,258   

Written options, market value

     222,765                                                 222,765   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     430,009       $     479,317       $ 514,154       $     —       $     —       $     —       $     1,423,480   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on purchased options

   $ (33,628   $ (21,271   $      $       $       $       $ (54,899

Net realized gain (loss) on written options

     255,501        (524     538,030                                793,007   

Net realized gain (loss) on futures

     (1,246,464                                           (1,246,464

Net realized gain (loss) on swap contracts

     (126,359                (1,044,563     52,672                             (1,118,250

Net realized gain (loss) on foreign currency contracts

            876,051                                       876,051   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     (1,150,950   $ 854,256      $ (506,533   $ 52,672       $       $       $ (750,555
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ 51,477      $ (39,583   $      $       $       $       $ 11,894   

Net change in unrealized appreciation (depreciation) of written options

     21,291        (6,418     (28,579                             (13,706

Net change in unrealized appreciation (depreciation) of futures

     (20,759                                           (20,759

Net change in unrealized appreciation (depreciation) of swap contracts

     (104,510            179,398        10,744                         85,632   

Net change in unrealized appreciation (depreciation) of foreign currency

            (437,978                                    (437,978
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (52,501   $     (483,979   $ 150,819      $     10,744       $     —       $     —       $ (374,917
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

246

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

World Bond Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $ 557,955       $ 2,424,096       $ 28,020       $       $       $       $ 3,010,071   

Unrealized appreciation on foreign currency contracts

             7,866,680                                         7,866,680   

Unrealized appreciation on swap contracts(1)

     2,439,521                 1,898,744                                 4,338,265   

Unrealized appreciation on futures contracts(2)

     1,558,927                                                 1,558,927   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,556,403       $ 10,290,776       $ 1,926,764       $       $       $       $ 16,773,943   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 67,218,802       $       $       $       $       $ 67,218,802   

Unrealized depreciation on swap contracts(1)

     776,188                 1,266,837                                 2,043,025   

Unrealized depreciation on futures contracts(2)

     2,095,901                                                 2,095,901   

Written options, market value

     97,047         387,482         3,529                                 488,058   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $     2,969,136       $     67,606,284       $     1,270,366       $     —       $     —       $     —       $     71,845,786   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

        

Net realized gain (loss) on purchased options

   $ (188,773   $ 4,019,827      $ (420,964   $       $       $       $ 3,410,090   

Net realized gain (loss) on written options

     70,751        14,376        159,040                                244,167   

Net realized gain (loss) on futures

         (16,088,764     6,372,660                                       (9,716,104

Net realized gain (loss) on swap contracts

     9,621,161               2,355,973                                11,977,134   

Net realized gain (loss) on foreign currency contracts

            198,987,178                                       198,987,178   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (6,585,625   $     209,394,041      $     2,094,049      $       $       $       $     204,902,465   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

        

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ 331,730      $ (498,264   $ 44,571      $       $       $       $ (121,963

Net change in unrealized appreciation (depreciation) of written options

     112,509        (18,621     32,992                                135,880   

Net change in unrealized appreciation (depreciation) of futures

     4,947,078                                              4,947,078   

Net change in unrealized appreciation (depreciation) of swap contracts

     (544,153            35,994                                (508,159

Net change in unrealized appreciation (depreciation) of foreign currency

            (69,327,664                                    (69,327,664
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,856,164      $ (69,844,549   $ 113,557      $     —       $     —       $     —       $ (64,874,828
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)  Statements of Assets and Liabilities location: Unrealized appreciation (depreciation) on Swapcontracts and Variation margin on financial derivative instruments
  (2)  Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities.

 

 

247

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  g) Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a Master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Duration-Hedged Strategic Income Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Futures contracts

     32,204        (47,710
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     32,204        (47,710
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (32,204     47,710   
  

 

 

   

 

 

 

 

Emerging Markets Local Debt Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     11,490,921        (8,192,802

Futures contracts

     24,648        (28,928

Purchased options and swaptions

     431,462          

Swap contracts

     565,911        (822,636

Written options and swaptions

            (269,548
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     12,512,942        (9,313,914
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (24,648     28,928   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     12,488,294        (9,284,986
  

 

 

   

 

 

 

 

Emerging Markets Local Debt Fund

 

Counterparty

   Gross Amount of
Assets ($)
     Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Bank of America Securities LLC

     891,835         (891,835                       

Barclays

     147,444         (147,444                       

BNP Paribas Securities Services

     124,797         (24,397                     100,400   

Citibank NA

     1,864,291         (637,747                     1,226,544   

Commonwealth Bank of Australia

     23,778         (23,778                       

Credit Suisse First Boston Corp.

     231,392         (171,464                     59,928   

Deutsche Bank Securities, Inc.

     1,868,165         (1,147,848                     720,317   

Goldman Sachs & Co.

     120,325         (120,325                       

HSBC Bank USA

     934,374         (621,019                     313,355   

JP Morgan Chase & Co.

     3,376,441         (1,927,835                     1,448,606   

Morgan Stanley

     1,022,069         (408,696                     613,373   

RBC Dominion Securities, Inc.

     157,477                                157,477   

Standard Chartered Bank

     337,658         (160,359                     177,299   

State Street Global Markets LLC

     578,511         (560,203                     18,308   

Toronto-Dominion Bank

     50,392         (50,392                       

UBS AG

     736,927         (736,927                       

Westpac International

     22,418         (22,418                       
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     12,488,294         (7,652,687         —             —         4,835,607   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

248

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Emerging Markets Local Debt Fund

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (971,965     891,835                 80,130           

Barclays

     (156,024     147,444                         (8,580

BNP Paribas Securities Services

     (24,397     24,397                           

Citibank NA

     (637,747     637,747                           

Commonwealth Bank of Australia

     (75,523     23,778                         (51,745

Credit Suisse First Boston Corp.

     (171,464     171,464                           

Deutsche Bank Securities, Inc.

     (1,147,848     1,147,848                           

Goldman Sachs & Co.

     (437,561     120,325                 250,000         (67,236

HSBC Bank USA

     (621,019     621,019                           

JP Morgan Chase & Co.

     (1,927,835     1,927,835                           

Morgan Stanley

     (408,696     408,696                           

National Australia Bank Limited

     (308,460                             (308,460

RBS Greenwich Capital

     (331,835                             (331,835

Standard Chartered Bank

     (160,359     160,359                           

State Street Global Markets LLC

     (560,203     560,203                           

Toronto-Dominion Bank

     (104,853     50,392                         (54,461

UBS AG

     (1,188,482     736,927                         (451,555

Westpac International

     (50,715     22,418                         (28,297
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (9,284,986     7,652,687             —         330,130         (1,302,169
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Floating Rate Fund

 

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     799,593         (6,837,197
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     799,593         (6,837,197
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     799,593         (6,837,197
  

 

 

    

 

 

 

 

Floating Rate Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Bank of America Securities LLC

     204,802        (204,802         —             —           

Bank of Montreal

     739                               739   

Citibank NA

     49,349                               49,349   

Credit Suisse First Boston Corp.

     149,375        (149,375                       

Deutsche Bank Securities, Inc.

     87,863                               87,863   

Toronto-Dominion Bank

     760                               760   

UBS AG

     306,705                               306,705   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     799,593        (354,177                     445,416   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (2,092,623     204,802            —             —         (1,887,821

Credit Suisse First Boston Corp.

     (150,338     149,375                        (963

Goldman Sachs & Co.

     (2,185,878                            (2,185,878

Morgan Stanley

     (2,408,358                            (2,408,358
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     (6,837,197     354,177                        (6,483,020
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

249

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Floating Rate High Income Fund

 

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     138,392         (913,088
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     138,392         (913,088
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     138,392         (913,088
  

 

 

    

 

 

 

 

Floating Rate High Income Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Bank of America Securities LLC

     42,528                   —             —         42,528   

Bank of Montreal

     77                               77   

Citibank NA

     12,330                               12,330   

Credit Suisse First Boston Corp.

     29,852        (29,852                       

Deutsche Bank Securities, Inc.

     17,573        (17,573                       

Toronto-Dominion Bank

     84                               84   

UBS AG

     35,948                               35,948   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     138,392        (47,425                     90,967   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Credit Suisse First Boston Corp.

     (30,054     29,852            —             —         (202

Deutsche Bank Securities, Inc.

     (468,846     17,573                        (451,273

Goldman Sachs & Co.

     (414,188                            (414,188
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     (913,088     47,425                        (865,663
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

High Yield Fund

 

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

            (295,653

Swap contracts

     1,393,626          
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     1,393,626        (295,653
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (1,393,626       
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

            (295,653
  

 

 

   

 

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
     Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Deutsche Bank Securities, Inc.

     (295,653 )                             (295,653
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Inflation Plus Fund

 

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Foreign currency contracts

     268,554         (1,042,402

Swap contracts

     6,738         (21,823
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     275,292         (1,064,225
  

 

 

    

 

 

 

Derivatives not subject to a MNA

               
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     275,292         (1,064,225
  

 

 

    

 

 

 

 

 

250

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Inflation Plus Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount of
Assets ($)
 

Bank of America Securities LLC

     17,581        (17,581                       

Bank of Montreal

     15,609                               15,609   

Commonwealth Bank of Australia

     24,223        (22,227                     1,996   

Deutsche Bank Securities, Inc.

     14,323        (14,323                       

Goldman Sachs & Co.

     93,830        (93,830                       

HSBC Bank USA

     93,667        (57,710                     35,957   

Toronto-Dominion Bank

     16,059                               16,059   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     275,292        (205,671         —             —         69,621   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
     Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (21,455     17,581                        (3,874

Barclays

     (21,823                            (21,823

BNP Paribas Securities Services

     (91,707                            (91,707

Commonwealth Bank of Australia

     (22,227     22,227                          

Deutsche Bank Securities, Inc.

     (373,985     14,323                        (359,662

Goldman Sachs & Co.

     (113,718     93,830                        (19,888

HSBC Bank USA

     (57,710     57,710                          

Morgan Stanley

     (10,055                            (10,055

UBS AG

     (351,545                            (351,545
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

     (1,064,225     205,671                        (858,554
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Quality Bond Fund  

Derivative Financial Instruments:

   Assets ($)      Liabilities ($)  

Futures contracts

         —         (54,976
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

         —         (54,976
  

 

 

    

 

 

 

Derivatives not subject to a MNA

         —         54,976   
  

 

 

    

 

 

 

 

Short Duration Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Futures contracts

     388,492        (875,567
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     388,492        (875,567
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (388,492     875,567   
  

 

 

   

 

 

 

 

Strategic Income Fund

 

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     2,067,085        (2,447,910

Futures contracts

     501,461        (498,085

Purchased options and swaptions

     151,703          

Swap contracts

     9,766,835        (3,279,725

Written options and swaptions

            (531,938
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     12,487,084        (6,757,658
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (4,793,771     1,794,057   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     7,693,313        (4,963,601
  

 

 

   

 

 

 

 

 

251

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Strategic Income Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
    Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     896,634        (753,892            (142,742       

Bank of Montreal

     13,316        (13,316                     

Barclays

     134,170        (134,170                     

BNP Paribas Securities Services

     145,029        (62,390                   82,639   

Citibank NA

     235        (235                     

Commonwealth Bank of Australia

     90        (90                     

Credit Suisse International

     1,550,676        (510,203                   1,040,473   

Deutsche Bank Securities, Inc.

     795,748        (795,748                     

Goldman Sachs & Co.

     856,732        (277,165     (579,567              

HSBC Bank USA

     47        (47                     

JP Morgan Chase & Co.

     1,241,601        (779,276            (360,000     102,325   

Morgan Stanley

     889,289        (195,448            (693,841       

National Australia Bank Limited

     435,380        (77,039                   358,341   

RBC Dominion Securities, Inc.

     1,317        (1,317                     

RBS Greenwich Capital

     496,020        (84,610                   411,410   

Standard Chartered Bank

     25,970        (25,970                     

State Street Global Markets LLC

     130,596        (104,274                   26,322   

Toronto-Dominion Bank

     1,530        (1,530                     

UBS AG

     78,933        (78,933                     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     7,693,313        (3,895,653     (579,567     (1,196,583     2,021,510   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
    Cash
Collateral
Pledged ($)*
    Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (753,892     753,892                        

Bank of Montreal

     (129,442     13,316                      (116,126

Barclays

     (235,772     134,170                      (101,602

BNP Paribas Securities Services

     (62,390     62,390                        

Citibank NA

     (76,777     235                      (76,542

Commonwealth Bank of Australia

     (212     90                      (122

Credit Suisse First Boston Corp.

     (9,108                          (9,108

Credit Suisse International

     (510,203     510,203                        

Deutsche Bank Securities, Inc.

     (999,615     795,748               203,867          

Goldman Sachs & Co.

     (277,165     277,165                        

HSBC Bank USA

     (4,659     47                      (4,612

JP Morgan Chase & Co.

     (779,276     779,276                        

Morgan Stanley

     (195,448     195,448                        

National Australia Bank Limited

     (77,039     77,039                        

RBC Dominion Securities, Inc.

     (80,141     1,317                      (78,824

RBS Greenwich Capital

     (84,610     84,610                        

Standard Chartered Bank

     (429,076     25,970                      (403,106

State Street Global Markets LLC

     (104,274     104,274                        

Toronto-Dominion Bank

     (35,661     1,530                      (34,131

UBS AG

     (118,841     78,933                      (39,908
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (4,963,601     3,895,653               203,867        (864,081
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

252

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Total Return Bond Fund

 

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     929,161        (3,540,105

Futures contracts

     362,965        (1,269,386

Purchased options and swaptions

     245,423          

Swap contracts

     13,804,316        (6,467,123

Written options and swaptions

            (1,482,466
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     15,341,865        (12,759,080
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (1,108,270     5,885,893   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     14,233,595        (6,873,187
  

 

 

   

 

 

 

 

Total Return Bond Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
    Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     1,898,237        (992,263            (905,974       

Barclays

     243,884        (243,884                     

BNP Paribas Securities Services

     271,579        (271,579                     

Citibank NA

     4,370,284        (251,609            (4,118,675       

Credit Suisse International

     1,868,379        (539,725                   1,328,654   

Deutsche Bank Securities, Inc.

     593,580        (593,580                     

Goldman Sachs & Co.

     2,070,270        (294,670     (1,775,600              

JP Morgan Chase & Co.

     946,512        (267,217            (679,295       

Morgan Stanley

     1,567,140        (176,554            (1,390,586       

RBS Greenwich Capital

     3,637        (3,637                     

Standard Chartered Bank

     61,240                             61,240   

State Street Global Markets LLC

     245,708        (245,708                     

UBS AG

     93,145        (93,145                     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     14,233,595        (3,973,571     (1,775,600     (7,094,530     1,389,894   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
    Cash
Collateral
Pledged ($)*
    Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (992,263     992,263                        

Barclays

     (386,129     243,884                      (142,245

BNP Paribas Securities Services

     (1,508,983     271,579        1,237,404                 

Citibank NA

     (251,609     251,609                        

Credit Suisse First Boston Corp.

     (10,356                          (10,356

Credit Suisse International

     (539,725     539,725                        

Deutsche Bank Securities, Inc.

     (911,148     593,580                      (317,568

Goldman Sachs & Co.

     (294,670     294,670                        

HSBC Bank USA

     (7,823                          (7,823

JP Morgan Chase & Co.

     (267,217     267,217                        

Morgan Stanley

     (176,554     176,554                        

National Australia Bank Limited

     (106,428                          (106,428

RBC Dominion Securities, Inc.

     (106,999                          (106,999

RBS Greenwich Capital

     (123,511     3,637                      (119,874

State Street Global Markets LLC

     (635,161     245,708                      (389,453

Toronto-Dominion Bank

     (119,578                          (119,578

UBS AG

     (435,033     93,145        278,350               (63,538
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     (6,873,187     3,973,571        1,515,754            —        (1,383,862
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

253

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Unconstrained Bond Fund

 

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     130,702        (479,317

Futures contracts

     87,849        (62,258

Purchased options and swaptions

     33,768          

Swap contracts

     2,235,202        (971,056

Written options and swaptions

            (222,765
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     2,487,521        (1,735,396
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (222,640     491,536   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     2,264,881        (1,243,860
  

 

 

   

 

 

 

 

Unconstrained Bond Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
    Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     232,368        (218,098                   14,270   

Bank of Montreal

     1,198                             1,198   

Barclays

     19,638        (19,638                     

BNP Paribas Securities Services

     64,364        (64,364                     

Commonwealth Bank of Australia

     1,864        (68                   1,796   

Credit Suisse International

     376,685        (258,391                   118,294   

Deutsche Bank Securities, Inc.

     229,982        (161,565                   68,417   

Goldman Sachs & Co.

     659,377        (47,718     (611,659              

JP Morgan Chase & Co.

     270,795        (204,731            (66,064       

Morgan Stanley

     335,610        (27,558            (308,052       

Standard Chartered Bank

     23,298        (13,485                   9,813   

State Street Global Markets LLC

     25,439        (21,998                   3,441   

Toronto-Dominion Bank

     1,237        (1,237                     

UBS AG

     23,026        (23,026                     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     2,264,881        (1,061,877     (611,659     (374,116     217,229   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
    Cash
Collateral
Pledged ($)*
    Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (218,098     218,098                        

Barclays

     (42,509     19,638                      (22,871

BNP Paribas Securities Services

     (80,402     64,364                      (16,038

Citibank NA

     (17,793                          (17,793

Commonwealth Bank of Australia

     (68     68                        

Credit Suisse First Boston Corp.

     (682                          (682

Credit Suisse International

     (258,391     258,391                        

Deutsche Bank Securities, Inc.

     (161,565     161,565                        

Goldman Sachs & Co.

     (47,718     47,718                        

HSBC Bank USA

     (1,769                          (1,769

JP Morgan Chase & Co.

     (204,731     204,731                        

Morgan Stanley

     (27,558     27,558                        

National Australia Bank Limited

     (13,183                          (13,183

RBC Dominion Securities, Inc.

     (6,298                          (6,298

RBS Greenwich Capital

     (13,871                          (13,871

Standard Chartered Bank

     (13,485     13,485                        

State Street Global Markets LLC

     (21,998     21,998                        

Toronto-Dominion Bank

     (9,935     1,237                      (8,698

UBS AG

     (103,806     23,026                      (80,780
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     (1,243,860     1,061,877                      (181,983
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

254

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

World Bond Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     7,866,680        (67,218,802

Futures contracts

     1,558,927        (2,095,901

Purchased options and swaptions

     3,010,071          

Swap contracts

     10,296,895        (12,087,427

Written options and swaptions

            (488,058
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

     22,732,573        (81,890,188
  

 

 

   

 

 

 

Derivatives not subject to a MNA

     (6,463,461     8,937,763   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

     16,269,112        (72,952,425
  

 

 

   

 

 

 

 

World Bond Fund  

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
    Net Amount of
Assets ($)
 

Bank of America Securities LLC

     688,029        (688,029                      

Bank of Montreal

     9,047        (9,047                      

Barclays

     210,376        (115,463             (94,913       

BNP Paribas Securities Services

     1,780,182        (1,709,151                    71,031   

Citibank NA

     111,614        (111,614                      

Commonwealth Bank of Australia

     138,473        (138,473                      

Credit Suisse First Boston Corp.

     198,616        (98,352                    100,264   

Credit Suisse International

     63,392        (63,392                      

Deutsche Bank Securities, Inc.

     697,894        (697,894                      

Goldman Sachs & Co.

     3,700,247        (3,700,247                      

HSBC Bank USA

     175,746        (175,746                      

JP Morgan Chase & Co.

     4,057,028        (4,057,028                      

Morgan Stanley

     839,567        (839,567                      

National Australia Bank Limited

     25,043                              25,043   

RBC Dominion Securities, Inc.

     782        (782                      

RBS Greenwich Capital

     206,303        (206,303                      

State Street Global Markets LLC

     3,187,482        (3,187,482                      

UBS AG

     177,918        (177,918                      

Westpac International

     1,373        (1,373                      
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total

     16,269,112        (15,977,861             (94,913     196,338   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Counterparty

   Gross Amount of
Liabilities ($)
    Financial
Instruments
and Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Pledged ($)*
     Cash
Collateral
Pledged ($)*
    Net Amount of
Liabilities ($)
 

Bank of America Securities LLC

     (4,367,356     688,029                260,000        (3,419,327

Bank of Montreal

     (848,018     9,047                       (838,971

Barclays

     (115,463     115,463                         

BNP Paribas Securities Services

     (1,709,151     1,709,151                         

Citibank NA

     (464,197     111,614                329,000        (23,583

Commonwealth Bank of Australia

     (5,617,094     138,473                       (5,478,621

Credit Suisse First Boston Corp.

     (98,352     98,352                         

Credit Suisse International

     (804,184     63,392                740,792          

Deutsche Bank Securities, Inc.

     (4,705,050     697,894                885,000        (3,122,156

Goldman Sachs & Co.

     (12,290,162     3,700,247                       (8,589,915

HSBC Bank USA

     (1,315,247     175,746                       (1,139,501

JP Morgan Chase & Co.

     (21,686,932     4,057,028                       (17,629,904

Morgan Stanley

     (6,026,718     839,567                5,187,151          

RBC Dominion Securities, Inc.

     (5,703     782                       (4,921

RBS Greenwich Capital

     (214,142     206,303                       (7,839

Standard Chartered Bank

     (22,351                           (22,351

State Street Global Markets LLC

     (10,870,777     3,187,482                       (7,683,295

Toronto-Dominion Bank

     (872,203                           (872,203

UBS AG

     (917,934     177,918                       (740,016

Westpac International

     (1,391     1,373                       (18
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ (72,952,425     15,977,861            —         7,401,943        (49,572,621
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

255

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

5. Principal Risks:

Certain Funds may be exposed to counterparty risk, or the risk that an institution or other entity with which the Funds have unsettled or open transactions will default.

Certain Funds are exposed to the risks of the Underlying Funds and/or ETFs/ETNs in direct proportion to the amount of assets those Funds allocate to each Underlying Fund and/or ETF/ETN. The market values of the Underlying Funds and/or ETFs/ETNs may decline due to general market conditions which are not specifically related to a particular company in which the Underlying Fund and/or ETF/ETN invested, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities in which the Underlying Funds and/or ETFs/ETNs invest may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Certain Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension, foreign currency and equity risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. 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 and extension risk are major risks of mortgage backed securities and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns, if applicable, of the Fund. The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.

 

6. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

 

256

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments and short-term capital gain adjustments. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014 and October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

Ordinary
Income
For the
Year Ended
October 31, 2014
  Long-Term
Capital Gains
For the
Year Ended
October 31,  2014(1)
  Tax return
of capital
For the
Year Ended
October 31, 2014
  Ordinary
Income
For the
Year Ended
October 31, 2013
  Long-Term
Capital Gains
For the
Year Ended
October 31,  2013(1)
 

Duration-Hedged Strategic Income Fund

$ 299,034    $    $    $    $   

Emerging Markets Local Debt Fund

  1,392,618      162,064          12,542,478      8,056,001      1,679,071   

Floating Rate Fund

      255,305,057                    255,090,675        

Floating Rate High Income Fund

  22,169,499      328,632           10,807,590      83,013   

High Yield Fund

  22,188,186                28,129,120        

Inflation Plus Fund

  6,586,730          49,264,538           66,248,759          21,679,821   

Quality Bond Fund

  191,093                137,820        

Short Duration Fund

  10,685,735      2,643,200           9,147,663      1,023,085   

Strategic Income Fund

  19,322,292                38,152,784      7,185,731   

Total Return Bond Fund

  38,834,479                75,709,233      23,170,637   

Unconstrained Bond Fund

  3,028,985           498,937      3,946,456        

World Bond Fund

  31,703,925      5,557,399           31,788,356      3,773,285   

 

  (1)  The Funds designate these distributions as long-term capital gain dividends pursuant to IRC
Sec 852(b)(3)(c).

As of October 31, 2014, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:

 

  Undistributed
Ordinary
Income
  Undistributed
Long-Term
Capital Gain(1)
  Accumulated
Capital and
Other Losses(2)
  Unrealized
Appreciation
(Depreciation)
on Investments
  Total
Accumulated
Earnings
(Deficit)
 

Duration-Hedged Strategic Income Fund

$ 2,020    $    $ (282,352 $ 52,279    $ (228,053

Emerging Markets Local Debt Fund

            (227,932   (15,858,179   (16,086,111

Floating Rate Fund

  9,948,655               (381,258,484       (128,441,925       (499,751,754

Floating Rate High Income Fund

  5,115,564      3,133,226           (11,512,097   (3,263,307

High Yield Fund

  362,104           (18,838,072   2,188,224      (16,287,744

Inflation Plus Fund

  459,324           (37,984,276   (17,326,848   (54,851,800

Quality Bond Fund

  349,290      75,090           78,076      502,456   

Short Duration Fund

  1,112,764      1,331,299           444,833      2,888,896   

Strategic Income Fund

  4,055,959      5,094,992           2,280,634      11,431,585   

Total Return Bond Fund

  25,981,082          11,948,433           18,111,157      56,040,672   

Unconstrained Bond Fund

            (18,101,960   913,803      (17,188,157

World Bond Fund

      86,660,743           (4,320,613   (52,222,301   30,117,829   

 

  (1)  The Funds have capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows.

 

 

257

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

  Capital Stock and
Paid-in-Capital
  Undistributed Net
Investment Income
(Loss)
  Accumulated Net
Realized Gain
(Loss)
 

Duration-Hedged Strategic Income Fund

              

Emerging Markets Local Debt Fund

       (10,685,666   10,685,666   

Floating Rate Fund

       2,212,986      (2,212,986

Floating Rate High Income Fund

       414,983      (414,983

High Yield Fund

       36,958      (36,958

Inflation Plus Fund

       1,319,562      (1,319,562

Quality Bond Fund

       22,738      (22,738

Short Duration Fund

       149,160      (149,160

Strategic Income Fund

  (1   (165,725   165,726   

Total Return Bond Fund

       (1,166,334   1,166,334   

Unconstrained Bond Fund

       (765,921   765,921   

World Bond Fund

       74,587,104      (74,587,104

 

  e) Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

Fund

Year of Expiration   Unlimited
Short-Term
Capital Loss
Carryforward
  Unlimited
Long-Term
Capital Loss
Carryforward
 
2016   2017  

Duration-Hedged Strategic Income Fund

$    $    $ 93,821    $ 188,531   

Emerging Markets Local Debt Fund

$    $    $ 44,864    $ 183,068   

Floating Rate Fund

$     109,198,281    $     272,060,203    $    $   

Floating Rate High Income Fund

$    $    $    $   

High Yield Fund

$ 734,446    $ 18,103,626    $    $   

Inflation Plus Fund

$    $    $     7,787,660    $     30,196,616   

Quality Bond Fund

$    $    $    $   

Short Duration Fund

$    $    $    $   

Strategic Income Fund

$    $    $    $   

Total Return Bond Fund

$    $    $    $   

Unconstrained Bond Fund

$    $ 12,172,503    $ 3,645,893    $ 2,283,564   

World Bond Fund

$    $    $    $ 4,320,613   

 

 

258

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Floating Rate High Income Fund, Quality Bond Fund, Short Duration Fund, Strategic Income Fund and Total Return Bond Fund had no capital loss carryforward for U.S. federal income tax purposes as of October 31, 2014.

During the year ended October 31, 2014, the Floating Rate Fund and High Yield Fund utilized prior year capital loss rollforwards of $53,353,013 and $11,428,504, respectively, of Pre-Regulated Investment Company (“RIC”) Modernization capital loss carryforwards.

During the year ended October 31, 2014, the Quality Bond Fund, Strategic Income Fund, Total Return Bond Fund and Unconstrained Bond Fund utilized $406,819, $1,391,587, $1,613,176 and $1,767,291, respectively, of Post-RIC Modernization short-term capital loss carryforwards.

During the year ended October 31, 2014, the Quality Bond Fund utilized $68,081 of Post-RIC Modernization long-term capital loss carryforwards.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with the Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Duration-Hedged Strategic Income Fund

0.1000% on first $500 million and;
0.0900% on next $500 million and;
0.0850% on next $1.5 billion and;
0.0800% on next $2.5 billion and;
0.0750% on next $2.5 billion and;
0.0700% on next $2.5 billion and;
0.0650% over $10 billion

Emerging Markets Local Debt Fund

1.0000% on first $250 million and;
0.9500% on next $250 million and;
0.9000% on next $4.5 billion and;
0.8975% on next $5 billion and;
0.8950% over $10 billion

Floating Rate Fund

0.6500% on first $500 million and;
0.6000% on next $2 billion and;
0.5900% on next $2.5 billion and;
0.5800% on next $5 billion and;
0.5700% over $10 billion

 

 

259

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Management Fee Rates

Floating Rate High Income Fund

0.7000% on first $500 million and;
0.6500% on next $2 billion and;
0.6400% on next $2.5 billion and;
0.6300% on next $5 billion and;
0.6200% over $10 billion

High Yield Fund

0.6500% on first $500 million and;
0.6000% on next $500 million and;
0.5950% on next $1.5 billion and;
0.5900% on next $2.5 billion and;
0.5800% on next $5 billion and;
0.5700% over $10 billion

Inflation Plus Fund

0.5000% on first $500 million and;
0.4500% on next $500 million and;
0.4450% on next $1.5 billion and;
0.4400% on next $2.5 billion and;
0.4300% on next $5 billion and;
0.4200% over $10 billion

Quality Bond Fund

0.5000% on first $500 million and;
0.4500% on next $500 million and;
0.4450% on next $1.5 billion and;
0.4400% on next $2.5 billion and;
0.4300% on next $5 billion and;
0.4200% over $10 billion

Short Duration Fund

0.4500% on first $500 million and;
0.4000% on next $500 million and;
0.3950% on next $1.5 billion and;
0.3900% on next $2.5 billion and;
0.3800% on next $5 billion and;
0.3700% over $10 billion

Strategic Income Fund

0.5500% on first $500 million and;
0.5000% on next $500 million and;
0.4750% on next $1.5 billion and;
0.4650% on next $2.5 billion and;
0.4550% on next $5 billion and;
0.4450% over $10 billion

Total Return Bond Fund

0.4300% on first $500 million and;
0.3800% on next $500 million and;
0.3700% on next $4 billion and;
0.3600% on next $5 billion and;
0.3500% over $10 billion

Unconstrained Bond Fund

0.5500% on first $500 million and;
0.5000% on next $500 million and;
0.4750% on next $1.5 billion and;
0.4650% on next $2.5 billion and;
0.4550% on next $5 billion and;
0.4450% over $10 billion

 

 

260

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Management Fee Rates

World Bond Fund

0.7000% on first $250 million and;
0.6500% on next $250 million and;
0.6000% on next $4.5 billion and;
0.5750% on next $5 billion and;
0.5725% on over $10 billion

Prior to November 7, 2014 the management fee paid by the Total Return Bond Fund was as follows:

 

Annual Fee

0.5500% on first $500 million and;

0.5000% on next $500 million and;

0.4750% on next $1.5 billion and;

0.4650% on next $2.5 billion and;

0.4550% on next $5 billion and;

0.4450% over $10 billion

HFMC contractually agreed to waive investment management fees in Total Return Bond Fund of 0.12% of average daily net assets until February 29, 2016. These amounts are deducted from expenses and are reported as expense waivers on the accompanying Statements of Operations, as applicable.

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and each Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fee Rates

Duration-Hedged Strategic Income Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Emerging Markets Local Debt Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Floating Rate Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

Floating Rate High Income Fund

0.018% on first $5 billion and;
0.014% on next $5 billion and;
0.010% over $10 billion

High Yield Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $5 billion

Inflation Plus Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Quality Bond Fund

0.014% on first $5 billion and;
0.012% on next $5 billion and;
0.010% over $10 billion

Short Duration Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

 

 

261

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Accounting Services Fee Rates

Strategic Income Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

Total Return Bond Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

Unconstrained Bond Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

World Bond Fund

0.020% on first $5 billion and;
0.015% on next $5 billion and;
0.010% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

  c) Operating Expenses – Allocable expenses incurred by each Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Duration-Hedged Strategic Income Fund

  1.15   NA      1.90   0.90   1.45   1.15   0.85   NA      0.75

Emerging Markets Local Debt Fund

  1.35   NA      2.10   1.10   1.65   1.35   1.05   NA      1.00

Floating Rate Fund

  1.00   1.75   1.75   0.75   1.25   1.00   0.70   NA      0.70

Floating Rate High Income Fund

  1.05   NA      1.80   0.80   1.35   1.05   0.75   NA      0.75

High Yield Fund

  1.05   1.80   1.80   0.80   1.35   1.05   0.75   NA      0.70

Inflation Plus Fund

  0.85   1.60   1.60   0.60   1.20   0.90   0.60   NA      0.55

Quality Bond Fund

  0.95   NA      1.70   0.70   1.25   0.95   0.65   NA      0.60

Short Duration Fund

  0.85   1.60 %*    1.60   0.60   1.15   0.85   0.55   NA      0.55

Strategic Income Fund

  0.95   1.70   1.70   0.70   1.25   0.95   0.65   0.60   0.60

Total Return Bond Fund

  0.87   1.62   1.62   0.62   1.17   0.87   0.57   0.52   0.52

Unconstrained Bond Fund

  0.99   1.74   1.74   0.74   1.29   0.99   0.69   NA      0.69

World Bond Fund

  1.05   NA      1.80   0.80   1.35   1.05   0.75   0.70   0.70

Contractual limitations for total operating expenses include expenses incurred as the result of investing in other investment companies including the Underlying Funds. Amounts incurred which exceed the above limits are deducted from expenses and are reported as expense waivers on the accompanying Statement of Operations, as applicable.

 

  * The reduction in amounts charged in connection with the Short Duration Fund’s Class B Distribution and Service Plan (12b-1) fees that took effect July 1, 2011, in order to comply with applicable FINRA rules, caused the limit on net operating expenses attributable to the Short Duration Fund’s Class B shares to be, effectively, 0.85%.

Prior to March 1, 2015, HFMC contractually limited the total operating expenses of the Emerging Markets Local Debt Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class
A
  Class
B
  Class
C
  Class
I
  Class
R3
  Class
R4
  Class
R5
  Class
R6
  Class
Y
 

Emerging Markets Local Debt Fund

  1.25   NA      2.00   1.00   1.55   1.25   0.95   NA      0.90

 

 

262

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  d) Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. 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 a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended April 30, 2015, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

  Class
A
  Class
B
  Class
C
  Class
I
  Class
R3
  Class
R4
  Class
R5
  Class
R6
  Class
Y
 

Duration-Hedged Strategic Income Fund

  0.54        1.28   0.24   0.86   0.56   0.26        0.16

Emerging Markets Local Debt Fund

  1.28        2.02   0.97   1.58   1.28   0.98        0.94

Floating Rate Fund

  0.98   1.75   1.72   0.72   1.25   1.00   0.70        0.64

Floating Rate High Income Fund

  1.05        1.80   0.80   1.35   1.05   0.75        0.75

High Yield Fund

  1.05   1.80   1.80   0.80   1.35   1.05   0.75        0.70

Inflation Plus Fund

  0.85   1.60   1.60   0.60   1.20   0.90   0.60        0.53

Quality Bond Fund

  0.92        1.66   0.65   1.25   0.95   0.65        0.60

Short Duration Fund

  0.85   0.85   1.59   0.53   1.15   0.85   0.55        0.49

Strategic Income Fund

  0.95   1.70   1.70   0.70   1.25   0.95   0.65   0.60   0.60

Total Return Bond Fund

  0.86   1.62   1.58   0.56   1.16   0.84   0.54   0.44   0.44

Unconstrained Bond Fund

  0.99   1.74   1.74   0.74   1.29   0.99   0.69        0.69

World Bond Fund

  1.05        1.75   0.77   1.35   1.05   0.75   0.64   0.66

 

  e) Distribution and Service Plan for Class A, B, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect wholly owned subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end
Sales Charges
  Contingent Deferred
Sales Charges
 

Duration-Hedged Strategic Income Fund

$ 1,254    $ 620   

Emerging Markets Local Debt Fund

  4,532     

Floating Rate Fund

  297,510      123,525   

Floating Rate High Income Fund

  99,274      133,652   

High Yield Fund

  295,037      9,601   

Inflation Plus Fund

  96,113      12,719   

Quality Bond Fund

  12,288     

Short Duration Fund

  315,367      139,637   

Strategic Income Fund

  171,797      7,494   

Total Return Bond Fund

  1,512,163      7,133   

Unconstrained Bond Fund

  15,515      364   

World Bond Fund

  548,037      37,311   

 

  * Total CDSC includes Underwriter adjustment credits which may cause negative dollar amounts.

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, B, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class B Plan, each 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 services provided to existing shareholders 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

 

 

263

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

distribution and/or shareholder account services. 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, each 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 R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the Company’s Board of Directors may determine.

 

  f) Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

8. Affiliate Holdings:

As of April 30, 2015, affiliates of The Hartford had ownership of shares in each Fund as follows:

Percentage of Class:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Duration-Hedged Strategic Income Fund

  12        21   89   100   100   100        100

Emerging Markets Local Debt Fund

                      100   98   100          

Floating Rate Fund

                                            

Floating Rate High Income Fund

                      85   82   87        86

High Yield Fund

                                            

Inflation Plus Fund

                                            

Quality Bond Fund

  47        67   98   100   100   100        100

Short Duration Fund

                                99          

Strategic Income Fund

                           65   99   100   %* 

Total Return Bond Fund

                                     100     

Unconstrained Bond Fund

                      74   26   100          

World Bond Fund

                                19   100     

Percentage of Fund:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Duration-Hedged Strategic Income Fund

  8        3   3   3   3   3        12

Emerging Markets Local Debt Fund

                      1   1   1          

Floating Rate Fund

                                            

Floating Rate High Income Fund

                      1   1   1        2

High Yield Fund

                                            

Inflation Plus Fund

                                            

Quality Bond Fund

  16        5   7   7   7   7        31

 

 

264

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class R6   Class Y  

Short Duration Fund

                                %*           

Strategic Income Fund

                           %*    %*    %*    %* 

Total Return Bond Fund

                                     %*      

Unconstrained Bond Fund

                      %*    %*    %*           

World Bond Fund

                                %*    %*      

 

  * Percentage rounds to zero.

As of April 30, 2015, the Fund’s shares were owned in aggregate by affiliated fund of funds. Therefore, the Fund may experience relatively large purchases or redemptions of its shares from these affiliated fund of funds. Affiliated fund of funds owned shares in the Fund as follows:

 

  Class Y  

 

Duration-Hedged Strategic Income Fund

    

Emerging Markets Local Debt Fund

    

Floating Rate Fund

    

Floating Rate High Income Fund

    

High Yield Fund

    

Inflation Plus Fund

  15

Quality Bond Fund

    

Short Duration Fund

Strategic Income Fund

  12

Total Retum Bond Fund

  39

Unconstrained Bond Fund

    

World Bond Fund

  6

 

9. Affiliate Fund Transactions:

A summary of affiliate fund transactions for the Hartford Duration-Hedged Strategic Income Fund for the period ended April 30, 2015 follows:

Duration-Hedged Strategic Income Fund

 

Underlying Portfolio

Number of
shares held at
October 31, 2014
  Shares
purchased
  Shares sold   Number of
shares held at
April 30, 2015
 

The Hartford Strategic Income Fund

  1,292,914      817,049      450,570      1,659,393   

Underlying Portfolio

Net Realized
Gain/(Loss)
on sales of
Affiliated
Underlying
Portfolios
  Capital Gain
Distributions
from Affiliated
Underlying
Portfolios
  Dividend Income
from Affiliated
Underlying
Portfolios
  Ending Value
as of
April 30, 2015
 

The Hartford Strategic Income Fund

$     (123,473 $     305,165    $     287,155    $     14,818,380   

 

 

265

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

10. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Governments
 

Duration-Hedged Strategic Income Fund

$ 7,352,384    $ 3,992,230   

Emerging Markets Local Debt Fund

$ 200,737,211    $ 199,896,548   

Floating Rate Fund

$ 627,196,012    $ 1,718,272,913   

Floating Rate High Income Fund

$ 119,322,803    $ 215,996,563   

High Yield Fund

$ 64,546,748    $ 54,211,959   

Inflation Plus Fund

$ 47,795,714    $ 44,869,255   

Quality Bond Fund

$ 1,638,210    $ 1,730,494   

Short Duration Fund

$ 99,876,212    $ 165,086,874   

Strategic Income Fund

$ 156,397,298    $ 162,696,107   

Total Return Bond Fund

$ 697,557,521    $ 334,577,733   

Unconstrained Bond Fund

$ 39,676,553    $ 33,005,114   

World Bond Fund

$     2,333,492,492    $     1,700,907,145   

 

  Cost of Purchases
U.S. Government
Obligations
  Sales Proceeds
U.S.
Governments
 

Duration-Hedged Strategic Income Fund

$    $   

Emerging Markets Local Debt Fund

$    $   

Floating Rate Fund

$    $   

Floating Rate High Income Fund

$    $   

High Yield Fund

$    $   

Inflation Plus Fund

$     1,142,550,500    $     1,224,391,769   

Quality Bond Fund

$ 30,011    $ 70,789   

Short Duration Fund

$ 7,496,378    $ 2,695,930   

Strategic Income Fund

$ 6,950,466    $ 6,979,593   

Total Return Bond Fund

$ 427,635,728    $ 436,334,212   

Unconstrained Bond Fund

$ 15,679,099    $ 19,940,822   

World Bond Fund

$ 306,382,167    $ 279,349,846   

 

  Total Cost of
Purchases
  Total Sales
Proceeds
 

Duration-Hedged Strategic Income Fund

$ 7,352,384    $ 3,992,230   

Emerging Markets Local Debt Fund

$ 200,737,211    $ 199,896,548   

Floating Rate Fund

$ 627,196,012    $     1,718,272,913   

Floating Rate High Income Fund

$ 119,322,803    $ 215,996,563   

High Yield Fund

$ 64,546,748    $ 54,211,959   

Inflation Plus Fund

$     1,190,346,214    $     1,269,261,024   

Quality Bond Fund

$ 1,688,221    $ 1,801,284   

Short Duration Fund

$ 107,372,590    $ 167,782,804   

Strategic Income Fund

$ 163,347,764    $ 169,675,700   

Total Return Bond Fund

$     1,125,193,249    $ 770,911,945   

Unconstrained Bond Fund

$ 55,355,652    $ 52,945,936   

World Bond Fund

$     2,639,874,658    $     1,980,256,991   

 

 

266

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

11. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Duration-Hedged Strategic Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Period
November 29, 2013(1) through
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  680,250    $     6,489,562      930,063    $ 9,367,238   

Shares Issued for Reinvested Dividends

  23,240      219,941      15,629      157,418   

Shares Redeemed

  (375,589       (3,590,862   (211,706       (2,103,695
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  327,901      3,118,641      733,986      7,420,961   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  60,698    $ 583,227      184,040    $ 1,856,380   

Shares Issued for Reinvested Dividends

  5,524      52,257      2,452      24,673   

Shares Redeemed

  (45,778   (434,858   (2,277   (22,569
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  20,444      200,626      184,215      1,858,484   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  2,766    $ 25,802      47,880    $ 480,545   

Shares Issued for Reinvested Dividends

  1,530      14,479      1,457      14,703   

Shares Redeemed

  (2,605   (24,396   (3,060   (31,023
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,691      15,885      46,277      464,225   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

     $      40,001    $ 400,195   

Shares Issued for Reinvested Dividends

  1,240      11,723      1,143      11,539   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,240      11,723      41,144      411,734   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

     $      40,001    $ 400,175   

Shares Issued for Reinvested Dividends

  1,307      12,353      1,254      12,657   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,307      12,353      41,255      412,832   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      40,001    $ 400,159   

Shares Issued for Reinvested Dividends

  1,374      12,988      1,365      13,779   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,374      12,988      41,366      413,938   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

     $      180,001    $ 1,800,662   

Shares Issued for Reinvested Dividends

  6,283      59,402      6,311      63,691   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,283      59,402      186,312      1,864,353   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  360,240    $ 3,431,618      1,274,555    $ 12,846,527   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

267

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Emerging Markets Local Debt Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  74,665    $ 634,032      793,949    $ 7,406,944   

Shares Issued for Reinvested Dividends

  23,264      192,974      77,155      714,064   

Shares Redeemed

  (280,694   (2,361,891   (2,387,126   (22,199,325
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (182,765   (1,534,885   (1,516,022   (14,078,317
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  21,244    $ 172,870      132,750    $ 1,231,554   

Shares Issued for Reinvested Dividends

  4,154      34,415      11,428      105,293   

Shares Redeemed

  (148,140   (1,245,432   (448,200   (4,045,539
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (122,742   (1,038,147   (304,022   (2,708,692
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  364,684    $ 3,127,475      5,522,662    $ 51,532,887   

Shares Issued for Reinvested Dividends

  27,612      228,450      64,990      599,635   

Shares Redeemed

  (4,134,279       (34,544,518   (4,226,412       (38,851,759
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (3,741,983   (31,188,593   1,361,240      13,280,763   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  90    $ 748      441    $ 4,224   

Shares Issued for Reinvested Dividends

  5,278      43,645      9,203      85,036   

Shares Redeemed

  (1   (10   (3,304   (30,573
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,367      44,383      6,340      58,687   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  136    $ 1,119      315    $ 3,239   

Shares Issued for Reinvested Dividends

  5,715      47,271      10,052      92,880   

Shares Redeemed

            (4,552   (40,354
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,851      48,390      5,815      55,765   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      5    $ 50   

Shares Issued for Reinvested Dividends

  6,073      50,249      10,664      98,539   

Shares Redeemed

            (8   (77
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,073      50,249      10,661      98,512   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  17,007,798    $ 142,076,835      24,025,363    $ 221,416,456   

Shares Issued for Reinvested Dividends

  873,616      7,192,718      1,172,165      10,795,251   

Shares Redeemed

  (14,103,519   (116,084,633   (15,372,218   (140,539,057
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,777,895      33,184,920      9,825,310      91,672,650   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (252,304 $ (433,683   9,389,322    $ 88,379,368   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

268

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Floating Rate Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  14,019,734    $ 122,375,141      39,175,199    $ 353,157,313   

Shares Issued for Reinvested Dividends

  3,046,894      26,614,271      7,257,081      65,343,126   

Shares Redeemed

  (37,788,926       (329,373,260   (111,190,391       (1,000,972,732

Shares converted (from) Class B into Class A

  63,795      556,831      133,566      1,202,621   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (20,658,503   (179,827,017   (64,624,545   (581,269,672
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  17,617    $ 153,508      152,989    $ 1,377,961   

Shares Issued for Reinvested Dividends

  27,383      238,668      70,412      632,821   

Shares Redeemed

  (600,649   (5,234,177   (1,316,346   (11,834,637

Shares converted (from) Class B into Class A

  (63,888   (556,831   (133,566   (1,202,621
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (619,537   (5,398,832   (1,226,511   (11,026,476
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  4,739,612    $ 41,359,233      24,369,963    $ 219,463,259   

Shares Issued for Reinvested Dividends

  3,074,636      26,816,175      5,982,278      53,765,947   

Shares Redeemed

  (33,753,441   (293,992,441   (59,895,466   (538,349,512
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (25,939,193   (225,817,033   (29,543,225   (265,120,306
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  34,605,882    $ 302,396,950      111,759,173    $ 1,008,016,259   

Shares Issued for Reinvested Dividends

  4,295,749      37,570,989      8,350,301      75,228,967   

Shares Redeemed

  (83,023,066   (724,441,425   (165,671,212   (1,493,300,270
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (44,121,435   (384,473,486   (45,561,738   (410,055,044
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  680,490    $ 5,944,780      701,185    $ 6,318,463   

Shares Issued for Reinvested Dividends

  35,698      312,427      64,365      580,351   

Shares Redeemed

  (1,040,784   (9,117,549   (775,086   (6,986,861
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (324,596   (2,860,342   (9,536   (88,047
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  114,970    $ 1,003,710      348,225    $ 3,136,991   

Shares Issued for Reinvested Dividends

  15,090      131,608      30,219      271,729   

Shares Redeemed

  (284,103   (2,473,865   (534,982   (4,814,452
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (154,043   (1,338,547   (156,538   (1,405,732
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  64,681    $ 565,359      135,154    $ 1,219,568   

Shares Issued for Reinvested Dividends

  7,098      61,982      13,743      123,594   

Shares Redeemed

  (111,442   (977,145   (163,393   (1,473,168
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (39,663   (349,804   (14,496   (130,006
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  17,132,573    $ 149,309,866      52,928,428    $ 477,781,460   

Shares Issued for Reinvested Dividends

  798,432      6,965,614      1,029,006      9,229,509   

Shares Redeemed

  (15,947,068   (138,660,589   (16,098,789   (143,866,873
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,983,937      17,614,891      37,858,645      343,144,096   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (89,873,033 $ (782,450,170   (103,277,944 $ (925,951,187
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

269

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Floating Rate High Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  3,222,376    $ 32,566,041      15,342,091    $ 164,415,228   

Shares Issued for Reinvested Dividends

  685,327      6,916,561      835,059      8,949,757   

Shares Redeemed

  (6,543,216   (66,193,235   (13,334,293   (142,946,336
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (2,635,513   (26,710,633   2,842,857      30,418,649   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  1,297,025    $ 13,135,314      6,367,547    $ 68,330,341   

Shares Issued for Reinvested Dividends

  400,146      4,035,979      380,825      4,079,797   

Shares Redeemed

  (2,327,635   (23,518,882   (3,854,535   (41,360,181
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (630,464   (6,347,589   2,893,837      31,049,957   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  6,560,350    $ 66,833,088      24,434,947    $ 262,320,746   

Shares Issued for Reinvested Dividends

  778,049      7,861,705      733,766      7,865,405   

Shares Redeemed

  (9,576,632   (97,022,850   (16,671,740       (178,598,340
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (2,238,233   (22,328,057   8,496,973      91,587,811   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  10,836    $ 109,160      26,279    $ 279,943   

Shares Issued for Reinvested Dividends

  9,908      99,775      10,180      108,847   

Shares Redeemed

  (6,846   (70,084   (1,832   (19,722
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  13,898      138,851      34,627      369,068   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  2,149    $ 21,707      125,435    $ 1,338,720   

Shares Issued for Reinvested Dividends

  11,009      110,876      13,238      141,615   

Shares Redeemed

  (668   (6,757   (99,454   (1,068,376
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,490      125,826      39,219      411,959   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  36,548    $ 364,525      71,347    $ 763,175   

Shares Issued for Reinvested Dividends

  10,670      107,445      11,478      122,724   

Shares Redeemed

  (1   (9   (71,052   (762,389
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  47,217      471,961      11,773      123,510   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  923    $ 9,190      371,683    $ 4,000,192   

Shares Issued for Reinvested Dividends

  53,820      541,769      56,268      601,680   

Shares Redeemed

  (50,845   (510,008   (187,892   (2,025,120
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,898      40,951      240,059      2,576,752   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (5,426,707 $     (54,608,690   14,559,345    $ 156,537,706   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

270

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

High Yield Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  6,660,286    $ 49,841,270      8,654,465    $ 66,988,240   

Shares Issued for Reinvested Dividends

  768,993      5,790,430      1,807,667      13,984,896   

Shares Redeemed

  (5,320,640       (39,955,432   (14,956,648       (115,453,402

Shares converted (from) Class B into Class A

  43,237      324,534      82,540      636,150   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,151,876      16,000,802      (4,411,976   (33,844,116
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  4,653    $ 34,850      62,608    $ 479,944   

Shares Issued for Reinvested Dividends

  12,163      90,995      36,332      279,396   

Shares Redeemed

  (123,023   (919,180   (354,416   (2,724,759

Shares converted (from) Class B into Class A

  (43,469   (324,534   (82,540   (636,150
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (149,676   (1,117,869   (338,016   (2,601,569
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,012,266    $ 15,102,162      4,681,485    $ 36,062,334   

Shares Issued for Reinvested Dividends

  201,195      1,508,542      487,305      3,755,246   

Shares Redeemed

  (3,554,335   (26,492,327   (6,482,336   (49,757,581
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,340,874   (9,881,623   (1,313,546   (9,940,001
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  2,704,140    $ 20,457,449      9,789,762    $ 75,850,299   

Shares Issued for Reinvested Dividends

  122,700      928,206      311,558      2,417,468   

Shares Redeemed

  (3,349,518   (25,197,989   (12,501,167   (96,623,049
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (522,678   (3,812,334   (2,399,847   (18,355,282
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  28,010    $ 210,494      125,055    $ 967,100   

Shares Issued for Reinvested Dividends

  6,641      49,970      15,944      123,292   

Shares Redeemed

  (66,332   (499,597   (192,284   (1,493,478
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (31,681   (239,133   (51,285   (403,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  37,601    $ 281,886      94,463    $ 735,295   

Shares Issued for Reinvested Dividends

  3,742      28,184      6,802      52,567   

Shares Redeemed

  (29,106   (218,542   (96,092   (744,908
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,237      91,528      5,173      42,954   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  6,715    $ 50,534      18,888    $ 146,800   

Shares Issued for Reinvested Dividends

  1,584      11,910      3,550      27,421   

Shares Redeemed

  (10,726   (80,025   (34,028   (261,835
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (2,427   (17,581   (11,590   (87,614
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  1,239,146    $ 9,224,075      79,052    $ 610,527   

Shares Issued for Reinvested Dividends

  26,842      202,702      59,376      458,583   

Shares Redeemed

  (1,240,933   (9,212,927   (165,809   (1,278,075
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  25,055      213,850      (27,381   (208,965
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  141,832    $ 1,237,640      (8,548,468 $ (65,397,679
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

271

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Inflation Plus Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  926,709    $ 9,959,207      3,477,158    $ 37,811,305   

Shares Issued for Reinvested Dividends

  15,924      169,456      1,773,328      19,023,214   

Shares Redeemed

  (4,943,320   (53,077,016   (18,673,421   (203,249,630

Shares converted (from) Class B into Class A

  35,976      387,005      65,271      710,366   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (3,964,711   (42,561,348   (13,357,664   (145,704,745
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  172    $ 1,795      24,038    $ 253,012   

Shares Issued for Reinvested Dividends

  286      2,950      89,176      931,354   

Shares Redeemed

  (285,849   (2,977,260   (1,035,679   (10,939,367

Shares converted (from) Class B into Class A

  (37,156   (387,005   (65,271   (710,366
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (322,547   (3,359,520   (987,736   (10,465,367
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  233,632    $ 2,431,185      778,662    $ 8,220,967   

Shares Issued for Reinvested Dividends

  4,084      42,108      1,176,806      12,280,556   

Shares Redeemed

  (3,512,845   (36,520,862   (12,990,758   (137,506,965
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (3,275,129   (34,047,569   (11,035,290   (117,005,442
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  895,305    $ 9,769,322      3,632,464    $ 40,082,079   

Shares Issued for Reinvested Dividends

  4,537      48,958      323,735      3,515,603   

Shares Redeemed

  (2,592,820   (28,224,194   (6,487,182   (71,489,784
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,692,978   (18,405,914   (2,530,983   (27,892,102
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  494,185    $ 5,230,655      1,108,017    $ 11,857,427   

Shares Issued for Reinvested Dividends

  2,455      25,803      274,535      2,914,488   

Shares Redeemed

  (630,711   (6,687,142   (1,399,555   (15,065,387
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (134,071   (1,430,684   (17,003   (293,472
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  276,210    $ 2,966,625      707,807    $ 7,684,860   

Shares Issued for Reinvested Dividends

  888      9,447      85,801      920,465   

Shares Redeemed

  (420,279   (4,513,802   (1,308,226   (14,275,310
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (143,181   (1,537,730   (514,618   (5,669,985
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  112,328    $ 1,217,877      214,454    $ 2,364,994   

Shares Issued for Reinvested Dividends

  281      3,027      23,843      258,338   

Shares Redeemed

  (161,644   (1,757,574   (313,610   (3,461,216
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (49,035   (536,670   (75,313   (837,884
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  1,423,612    $ 15,498,915      4,656,323    $ 51,325,873   

Shares Issued for Reinvested Dividends

  14,463      156,200      1,086,487      11,804,309   

Shares Redeemed

  (2,588,327   (28,224,852   (9,662,773   (106,644,127
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,150,252   (12,569,737   (3,919,963   (43,513,945
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (10,731,904 $     (114,449,172   (32,438,570 $     (351,382,942
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

272

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Quality Bond Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  185,950    $ 1,899,329      401,311    $ 4,029,285   

Shares Issued for Reinvested Dividends

  14,970      151,940      4,828      48,185   

Shares Redeemed

  (60,964   (621,955   (263,208       (2,607,868
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  139,956      1,429,314      142,931      1,469,602   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  56,276    $ 572,689      14,623    $ 147,220   

Shares Issued for Reinvested Dividends

  3,195      32,271      154      1,491   

Shares Redeemed

  (16,879   (172,014   (58,090   (570,911
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  42,592      432,946      (43,313   (422,200
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  535    $ 5,500      2,749    $ 27,216   

Shares Issued for Reinvested Dividends

  3,777      38,392      1,929      19,288   

Shares Redeemed

            (4,243   (42,494
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,312      43,892      435      4,010   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Issued for Reinvested Dividends

  3,186    $ 32,258      760    $ 7,546   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,186      32,258      760      7,546   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Issued for Reinvested Dividends

  3,428    $ 34,776      1,277    $ 12,729   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,428      34,776      1,277      12,729   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Issued for Reinvested Dividends

  3,673    $ 37,328      1,796    $ 17,942   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  3,673      37,328      1,796      17,942   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Issued for Reinvested Dividends

  16,706    $ 169,931      8,476    $ 84,741   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  16,706      169,931      8,476      84,741   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  213,853    $     2,180,445      112,362    $ 1,174,370   
  

 

 

   

 

 

   

 

 

   

 

 

 

Short Duration Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  8,954,335    $ 88,423,997      22,268,097    $ 221,631,264   

Shares Issued for Reinvested Dividends

  450,789      4,450,179      820,928      8,166,312   

Shares Redeemed

  (10,408,117       (102,809,114   (21,019,254       (209,204,779

Shares converted (from) Class B into Class A

  67,671      667,556      85,638      852,199   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (935,322   (9,267,382   2,155,409      21,444,996   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

273

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class B

Shares Sold

  34,627    $ 343,540      177,308    $ 1,773,296   

Shares Issued for Reinvested Dividends

  5,845      58,009      15,218      152,065   

Shares Redeemed

  (130,603   (1,296,097   (409,954   (4,096,246

Shares converted (from) Class B into Class A

  (67,321   (667,556   (85,638   (852,199
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (157,452   (1,562,104   (303,066   (3,023,084
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,213,582    $ 21,841,986      7,164,356    $ 71,245,494   

Shares Issued for Reinvested Dividends

  79,288      782,047      142,526      1,416,809   

Shares Redeemed

  (3,711,222   (36,652,383   (7,758,468   (77,176,484
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,418,352   (14,028,350   (451,586   (4,514,181
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  3,625,939    $ 35,886,465      20,451,052    $ 204,003,912   

Shares Issued for Reinvested Dividends

  119,398      1,181,221      187,086      1,864,534   

Shares Redeemed

  (8,121,747   (80,445,725   (10,248,684   (102,151,389
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (4,376,410   (43,378,039   10,389,454      103,717,057   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  10,961    $ 107,930      48,669    $ 483,910   

Shares Issued for Reinvested Dividends

  677      6,671      1,022      10,137   

Shares Redeemed

  (7,171   (70,545   (13,687   (135,937
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,467      44,056      36,004      358,110   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  4,117    $ 40,411      37,401    $ 371,267   

Shares Issued for Reinvested Dividends

  888      8,750      1,574      15,634   

Shares Redeemed

  (5,797   (57,313   (31,305   (310,990
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (792   (8,152   7,670      75,911   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  23    $ 229      38    $ 373   

Shares Issued for Reinvested Dividends

  135      1,323      248      2,459   

Shares Redeemed

       (3   (432   (4,284
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  158      1,549      (146   (1,452
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  350,817    $ 3,466,583      679,565    $ 6,748,038   

Shares Issued for Reinvested Dividends

  8,387      82,580      10,749      106,668   

Shares Redeemed

  (200,638   (1,974,151   (472,347   (4,689,145
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  158,566      1,575,012      217,967      2,165,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (6,725,137 $     (66,623,410   12,051,706    $      120,222,918   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

274

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Strategic Income Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  1,681,025    $ 15,059,075      3,336,216    $ 31,115,934   

Shares Issued for Reinvested Dividends

  645,010      5,750,601      609,074      5,658,407   

Shares Redeemed

  (2,627,426   (23,578,712   (5,931,178   (55,070,313

Shares converted (from) Class B into Class A

  6,612      58,813      17,808      165,679   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (294,779   (2,710,223   (1,968,080   (18,130,293
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  9,645    $ 87,506      24,471    $ 226,755   

Shares Issued for Reinvested Dividends

  24,078      214,390      24,307      225,619   

Shares Redeemed

  (109,849   (986,055   (348,946   (3,239,429

Shares converted (from) Class B into Class A

  (6,613   (58,813   (17,808   (165,679
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (82,739   (742,972   (317,976   (2,952,734
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  723,059    $ 6,501,855      1,126,154    $ 10,529,804   

Shares Issued for Reinvested Dividends

  428,766      3,826,614      367,982      3,425,116   

Shares Redeemed

  (1,505,887       (13,511,595   (3,727,842       (34,592,794
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (354,062   (3,183,126   (2,233,706   (20,637,874
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  688,934    $ 6,308,278      2,636,646    $ 24,784,939   

Shares Issued for Reinvested Dividends

  192,861      1,725,663      148,798      1,386,202   

Shares Redeemed

  (2,019,241   (18,075,964   (3,069,869   (28,687,911
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,137,446   (10,042,023   (284,425   (2,516,770
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  12,071    $ 106,992      9,626    $ 88,636   

Shares Issued for Reinvested Dividends

  1,037      9,217      850      7,890   

Shares Redeemed

  (135   (1,192   (13,818   (126,246
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,973      115,017      (3,342   (29,720
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  739    $ 6,611      1,669    $ 15,737   

Shares Issued for Reinvested Dividends

  626      5,574      553      5,129   

Shares Redeemed

  (327   (2,901   (3,650   (33,335
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,038      9,284      (1,428   (12,469
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  92    $ 820         $   

Shares Issued for Reinvested Dividends

  585      5,216      539      5,006   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  677      6,036      539      5,006   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(2)

Shares Sold

  1,079    $ 10,000         $   

Shares Issued for Reinvested Dividends

  49      438             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,128      10,438             
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

275

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class Y

Shares Sold

  2,107,545    $ 18,986,347      7,243,557    $ 66,921,396   

Shares Issued for Reinvested Dividends

  573,502      5,108,949      825,833      7,645,374   

Shares Redeemed

  (1,519,233   (13,572,225   (19,187,177   (180,142,573
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,161,814           10,523,071      (11,117,787   (105,575,803
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (691,396 $ (6,014,498   (15,926,205 $     (149,850,657
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Return Bond Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  7,825,911    $      82,814,071      10,588,159    $ 112,450,810   

Shares Issued for Reinvested Dividends

  1,773,487      18,678,768      1,188,270      12,624,684   

Shares Redeemed

  (4,661,707   (49,358,801   (11,729,306       (124,054,875

Shares converted (from) Class B into Class A

  104,555      1,105,832      194,165      2,059,802   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,042,246      53,239,870      241,288      3,080,421   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  28,365    $ 296,597      70,215    $ 741,591   

Shares Issued for Reinvested Dividends

  45,997      480,026      34,131      359,517   

Shares Redeemed

  (422,473   (4,433,803   (1,097,627   (11,535,751

Shares converted (from) Class B into Class A

  (105,364   (1,105,832   (194,165   (2,059,802
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (453,475   (4,763,012   (1,187,446   (12,494,445
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  740,526    $ 7,844,340      902,069    $ 9,618,017   

Shares Issued for Reinvested Dividends

  170,964      1,801,340      92,181      980,761   

Shares Redeemed

  (755,581   (8,009,074   (1,854,397   (19,633,651
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  155,909      1,636,606      (860,147   (9,034,873
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  1,048,565    $ 11,112,688      802,313    $ 8,577,487   

Shares Issued for Reinvested Dividends

  42,594      449,205      14,278      151,921   

Shares Redeemed

  (217,112   (2,292,587   (367,274   (3,887,369
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  874,047      9,269,306      449,317      4,842,039   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  73,706    $ 792,098      144,808    $ 1,560,826   

Shares Issued for Reinvested Dividends

  18,076      193,807      11,914      128,796   

Shares Redeemed

  (113,531   (1,224,869   (244,763   (2,635,211
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (21,749   (238,964   (88,041   (945,589
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  71,806    $ 772,675      374,166    $ 4,052,754   

Shares Issued for Reinvested Dividends

  46,153      494,094      30,978      334,462   

Shares Redeemed

  (152,560   (1,637,821   (381,104   (4,116,861
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (34,601   (371,052   24,040      270,355   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

276

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R5

Shares Sold

  59,632    $ 636,853      46,600    $ 504,415   

Shares Issued for Reinvested Dividends

  3,281      35,145      1,687      18,230   

Shares Redeemed

  (14,305   (153,582   (20,879   (223,557
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  48,608      518,416      27,408      299,088   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(2)

Shares Sold

  920    $ 10,000         $   

Shares Issued for Reinvested Dividends

  30      322             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  950      10,322             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  16,000,122    $ 171,553,076      27,295,178    $      294,471,269   

Shares Issued for Reinvested Dividends

  3,106,918      33,244,628      2,212,526      23,873,455   

Shares Redeemed

  (7,050,886   (75,866,563   (20,356,622   (219,785,387
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,056,154      128,931,141      9,151,082      98,559,337   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  17,668,089    $     188,232,633      7,757,501    $ 84,576,332   
  

 

 

   

 

 

   

 

 

   

 

 

 

Unconstrained Bond Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  199,508    $ 1,993,094      580,866    $ 5,873,814   

Shares Issued for Reinvested Dividends

  80,135      799,973      225,157      2,274,511   

Shares Redeemed

  (788,154   (7,873,258   (2,302,398   (23,265,162

Shares converted (from) Class B into Class A

  5,257      52,406      17,750      179,590   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (503,254       (5,027,785   (1,478,625   (14,937,247
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

Shares Sold

  6,167    $ 61,619      4,748    $ 47,941   

Shares Issued for Reinvested Dividends

  1,450      14,471      5,360      54,107   

Shares Redeemed

  (52,220   (521,158   (117,583   (1,186,568

Shares converted (from) Class B into Class A

  (5,258   (52,406   (17,750   (179,590
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (49,861   (497,474   (125,225   (1,264,110
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  137,152    $ 1,374,030      231,104    $ 2,339,739   

Shares Issued for Reinvested Dividends

  12,606      126,132      34,937      353,640   

Shares Redeemed

  (170,894   (1,709,967   (547,933   (5,551,737
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (21,136   (209,805   (281,892   (2,858,358
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  119,987    $ 1,199,948      465,398    $ 4,712,466   

Shares Issued for Reinvested Dividends

  7,407      73,994      7,144      72,179   

Shares Redeemed

  (92,814   (926,451   (104,319   (1,053,396
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  34,580      347,491      368,223             3,731,249   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

277

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R3

Shares Sold

  167    $ 1,666      1,637    $ 16,505   

Shares Issued for Reinvested Dividends

  121      1,203      385      3,881   

Shares Redeemed

  (4,319   (43,248   (613   (6,159
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (4,031   (40,379   1,409      14,227   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  36,786    $ 368,983      2,860    $ 28,858   

Shares Issued for Reinvested Dividends

  180      1,792      408      4,120   

Shares Redeemed

  (9,112   (90,729   (200   (2,019
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  27,854      280,046      3,068      30,959   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Issued for Reinvested Dividends

  158    $ 1,568      491    $ 4,959   

Shares Redeemed

            (4,001   (40,133
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  158      1,568      (3,510   (35,174
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  308,461    $ 3,075,068      665,836    $ 6,711,334   

Shares Issued for Reinvested Dividends

  28,160      280,251      63,292      637,685   

Shares Redeemed

  (162,508   (1,619,461   (570,993   (5,749,652
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  174,113      1,735,858      158,135      1,599,367   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (341,577 $     (3,410,480   (1,358,417 $     (13,719,087
  

 

 

   

 

 

   

 

 

   

 

 

 

World Bond Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  20,955,026    $ 221,503,805      30,987,070    $ 332,146,363   

Shares Issued for Reinvested Dividends

  1,227,750      12,867,455      629,734      6,717,042   

Shares Redeemed

  (9,602,044   (101,395,621   (37,662,276   (404,597,720
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  12,580,732      132,975,639      (6,045,472   (65,734,315
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,983,363    $ 31,541,980      5,908,397    $ 63,245,290   

Shares Issued for Reinvested Dividends

  402,123      4,206,597      107,015      1,135,215   

Shares Redeemed

  (2,479,170   (26,221,753   (6,097,246   (65,152,666
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  906,316      9,526,824      (81,834   (772,161
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  59,829,793    $ 633,506,701      145,529,951    $ 1,563,851,299   

Shares Issued for Reinvested Dividends

  4,679,307      49,098,357      1,341,122      14,350,910   

Shares Redeemed

  (36,026,319       (381,160,899   (48,059,323   (515,018,620
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  28,482,781      301,444,159      98,811,750          1,063,183,589   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

278

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class R3

Shares Sold

  27,620    $ 292,398      45,580    $ 487,774   

Shares Issued for Reinvested Dividends

  2,140      22,435      647      6,897   

Shares Redeemed

  (13,467   (142,228   (24,539   (262,306
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  16,293      172,605      21,688      232,365   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  332,821    $     3,521,976      18,832    $     201,593   

Shares Issued for Reinvested Dividends

  1,064      11,161      223      2,371   

Shares Redeemed

  (5,292   (56,680   (43,406   (466,022
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  328,593      3,476,457      (24,351   (262,058
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  7,298    $ 76,944      16,823    $ 180,434   

Shares Issued for Reinvested Dividends

  719      7,537      436      4,642   

Shares Redeemed

  (529   (5,554   (31,275   (333,677
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  7,488      78,927      (14,016   (148,601
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R6(2)

Shares Sold

  929    $ 10,000         $   

Shares Issued for Reinvested Dividends

  30      323             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  959      10,323             
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  10,524,012    $ 111,798,362      27,680,289    $ 297,293,621   

Shares Issued for Reinvested Dividends

  1,650,443      17,320,100      671,947      7,190,692   

Shares Redeemed

  (6,017,571   (63,833,161   (12,368,316   (132,793,824
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,156,884      65,285,301      15,983,920      171,690,489   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  48,480,046    $     512,970,235      108,651,685    $     1,168,189,308   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commencement of operations.
  (2)  Commenced operations on November 7, 2014.

 

12. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

13. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on

 

 

279

 


Hartford Funds – Taxable Fixed Income Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

In July 2007, the Floating Rate Fund and more than 60 other lenders (known collectively as the “Transeastern Lenders”) accepted the payoff of a guarantee from Tousa, Inc. (“Tousa”), a Florida homebuilder. In order to fund the payoff, Tousa borrowed money from certain new lenders and secured the loan by granting liens to the new lenders on the assets of certain Tousa subsidiaries (the “Subsidiaries”). Tousa entered bankruptcy in January of 2008. In July of 2008, a committee of creditors of the Subsidiaries (the “Committee”) brought suit against the Transeastern Lenders alleging that the Subsidiaries had received no benefit in return for the liens on their assets, that the Subsidiaries were co-borrowers on the loan from the new lenders, and that the Transeastern Lenders received the value of the liens when the Transeastern Lenders accepted the payoff. The Subsidiaries sought the avoidance of their liens and the return of the value of those liens to the bankruptcy estate. On October 13, 2009, the bankruptcy court in the Southern District of Florida ruled in favor of the Committee, avoided the liens, and ordered the Transeastern Lenders to return the payoff amount to the bankruptcy estate. The Transeastern Lenders, together with the Floating Rate Fund, appealed the decision to the district court. On February 11, 2011, the District Court ruled in favor of the Transeastern Lenders and the Floating Rate Fund and quashed the bankruptcy court opinion. The Committee appealed to the Eleventh Circuit. The Eleventh Circuit reinstated the bankruptcy court opinion, but remanded back to the District Court on the question of remedies. The District Court has not yet issued a decision. If found liable, the Floating Rate Fund would be required to return approximately $3-3.5 million to the bankruptcy estate. Management of the Floating Rate Fund believes resolution of this matter will not have a material impact on the Floating Rate Fund’s financial statements.

 

14. Indemnifications:

Under the Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation law and the federal securities laws. In addition, the Company may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

15. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Funds’ results of operations or financial position, but may impact the Funds’ disclosures.

 

 

280

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
Hartford Duration-Hedged Strategic Income Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                   

A

  $   9.90      $   0.17      $   (0.33   $   (0.16   $   (0.30   $   —      $   —      $   (0.30   $   9.44        (1.62 )%(6)    $   10,022        1.38 %(7)      0.54 %(7)      3.54 %(7)      31

C

    9.90        0.16        (0.37     (0.21     (0.26                   (0.26     9.43        (2.07 )(6)      1,930        2.16 (7)      1.28 (7)      3.30 (7)      31   

I

    9.90        0.20        (0.35     (0.15     (0.31                   (0.31     9.44        (1.46 )(6)      453        1.08 (7)      0.24 (7)      4.18 (7)      31   

R3

    9.90        0.17        (0.36     (0.19     (0.28                   (0.28     9.43        (1.88 )(6)      400        1.77 (7)      0.86 (7)      3.58 (7)      31   

R4

    9.90        0.18        (0.35     (0.17     (0.30                   (0.30     9.43        (1.73 )(6)      401        1.47 (7)      0.56 (7)      3.88 (7)      31   

R5

    9.90        0.20        (0.36     (0.16     (0.31                   (0.31     9.43        (1.58 )(6)      403        1.17 (7)      0.26 (7)      4.18 (7)      31   

Y

    9.90        0.20        (0.35     (0.15     (0.32                   (0.32     9.43        (1.53 )(6)      1,817        1.07 (7)      0.16 (7)      4.27 (7)      31   

For the Year Ended October 31, 2014

  

                     

A(8)

  $ 10.00      $ 0.34      $ (0.12   $ 0.22      $ (0.32   $      $      $ (0.32   $ 9.90        2.17 %(6)    $ 7,266        1.87 %(7)      0.41 %(7)      3.60 %(7)      27 %(6) 

C(8)

    10.00        0.29        (0.13     0.16        (0.26                   (0.26     9.90        1.60 (6)      1,824        2.55 (7)      1.09 (7)      3.02 (7)      27 (6) 

I(8)

    10.00        0.35        (0.10     0.25        (0.35                   (0.35     9.90        2.45 (6)      458        1.62 (7)      0.16 (7)      3.72 (7)      27 (6) 

R3(8)

    10.00        0.29        (0.10     0.19        (0.29                   (0.29     9.90        1.83 (6)      407        2.32 (7)      0.86 (7)      3.01 (7)      27 (6) 

R4(8)

    10.00        0.31        (0.10     0.21        (0.31                   (0.31     9.90        2.10 (6)      408        2.02 (7)      0.56 (7)      3.31 (7)      27 (6) 

R5(8)

    10.00        0.34        (0.10     0.24        (0.34                   (0.34     9.90        2.38 (6)      410        1.72 (7)      0.26 (7)      3.60 (7)      27 (6) 

Y(8)

    10.00        0.35        (0.10     0.25        (0.35                   (0.35     9.90        2.47 (6)      1,845        1.62 (7)      0.16 (7)      3.70 (7)      27 (6) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  281  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain

(Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
The Hartford Emerging Markets Local Debt Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $ 9.00      $ 0.18      $ (0.82   $ (0.64   $ (0.20   $      $      $ (0.20   $ 8.16        (7.09 )%(6)    $ 7,384        1.52 %(7)      1.28 %(7)      4.41 %(7)      72

C

    8.99        0.17        (0.84     (0.67     (0.17                   (0.17     8.15        (7.47 )(6)      1,908        2.27 (7)      2.02 (7)      3.99 (7)      72   

I

    8.98        0.19        (0.81     (0.62     (0.21                   (0.21     8.15        (6.99 )(6)      9,124        1.20 (7)      0.97 (7)      4.45 (7)      72   

R3

    8.99        0.17        (0.82     (0.65     (0.19                   (0.19     8.15        (7.24 )(6)      1,893        1.80 (7)      1.58 (7)      4.20 (7)      72   

R4

    8.99        0.19        (0.83     (0.64     (0.20                   (0.20     8.15        (7.10 )(6)      1,952        1.50 (7)      1.28 (7)      4.50 (7)      72   

R5

    8.99        0.20        (0.82     (0.62     (0.22                   (0.22     8.15        (6.96 )(6)      1,933        1.20 (7)      0.98 (7)      4.80 (7)      72   

Y

    8.96        0.20        (0.82     (0.62     (0.22                   (0.22     8.12        (6.96 )(6)      263,771        1.10 (7)      0.94 (7)      4.96 (7)      72   

For the Year Ended October 31, 2014

  

                     

A

  $ 9.51      $ 0.42      $ (0.52   $ (0.10   $ (0.40 )(9)    $ (0.01   $      $ (0.41   $ 9.00        (1.10 )%    $ 9,792        1.47     1.25     4.57     144

C

    9.50        0.35        (0.52     (0.17     (0.33 )(10)      (0.01            (0.34     8.99        (1.85     3,208        2.23        2.00        3.78        144   

I

    9.50        0.44        (0.52     (0.08     (0.43 )(11)      (0.01            (0.44     8.98        (0.91     43,683        1.19        0.98        4.78        144   

R3

    9.50        0.39        (0.52     (0.13     (0.37 )(12)      (0.01            (0.38     8.99        (1.38     2,041        1.81        1.55        4.23        144   

R4

    9.50        0.42        (0.52     (0.10     (0.40 )(9)      (0.01            (0.41     8.99        (1.09     2,101        1.51        1.25        4.53        144   

R5

    9.51        0.45        (0.53     (0.08     (0.43 )(11)      (0.01            (0.44     8.99        (0.89     2,078        1.20        0.95        4.83        144   

Y

    9.47        0.45        (0.52     (0.07     (0.43 )(11)      (0.01            (0.44     8.96        (0.74       257,218        1.11        0.90        4.86        144   

For the Year Ended October 31, 2013

  

                     

A

  $   10.02      $   0.41      $   (0.47   $   (0.06   $   (0.39   $   (0.06   $   —      $   (0.45   $ 9.51        (0.70 )%    $ 24,773        1.49     1.25     4.16     95

C

    10.01        0.34        (0.47     (0.13     (0.32     (0.06            (0.38     9.50        (1.40     6,280        2.22        1.99        3.43        95   

I

    10.01        0.43        (0.47     (0.04     (0.41     (0.06            (0.47     9.50        (0.45     33,259        1.25        1.00        4.41        95   

R3

    10.01        0.38        (0.47     (0.09     (0.36     (0.06            (0.42     9.50        (1.01     2,097        1.84        1.55        3.86        95   

R4

    10.01        0.41        (0.47     (0.06     (0.39     (0.06            (0.45     9.50        (0.71     2,165        1.54        1.25        4.16        95   

R5

    10.01        0.44        (0.46     (0.02     (0.42     (0.06            (0.48     9.51        (0.31     2,095        1.24        0.95        4.46        95   

Y

    9.98        0.44        (0.47     (0.03     (0.42     (0.06            (0.48     9.47        (0.36     178,911        1.14        0.90        4.50        95   

For the Year Ended October 31, 2012

  

                     

A

  $ 9.24      $ 0.37      $ 0.71      $ 1.08      $ (0.30   $      $      $ (0.30   $   10.02        11.96   $ 20,430        1.65     1.24     3.96     99

C

    9.24        0.30        0.70        1.00        (0.23                   (0.23     10.01        11.03        3,846        2.38        1.97        3.22        99   

I

    9.23        0.40        0.71        1.11        (0.33                   (0.33     10.01        12.28        23,655        1.37        0.96        4.27        99   

R3

    9.24        0.34        0.70        1.04        (0.27                   (0.27     10.01        11.48        2,112        2.02        1.55        3.65        99   

R4

    9.24        0.37        0.70        1.07        (0.30                   (0.30     10.01        11.81        2,094        1.72        1.25        3.95        99   

R5

    9.24        0.40        0.70        1.10        (0.33                   (0.33     10.01        12.15        2,103        1.42        0.95        4.25        99   

Y

    9.21        0.41        0.69        1.10        (0.33                   (0.33     9.98        12.25        75,221        1.31        0.90        4.37        99   

For the Period Ended October 31, 2011(13)

  

                     

A(14)

  $ 10.00      $ 0.14      $ (0.77   $ (0.63   $ (0.13 )(15)    $      $      $ (0.13   $ 9.24        (6.37 )%(6)    $ 17,895        1.66 %(7)      1.20 %(7)      3.77 %(7)      61 %(6) 

C(14)

    10.00        0.11        (0.77     (0.66     (0.10 )(15)                    (0.10     9.24        (6.64 )(6)      4,178        2.40 (7)      1.94 (7)      3.00 (7)      61 (6) 

I(14)

    10.00        0.14        (0.77     (0.63     (0.14 )(15)                    (0.14     9.23        (6.37 )(6)      8,900        1.52 (7)      1.00 (7)      3.86 (7)      61 (6) 

R3(14)

    10.00        0.14        (0.79     (0.65     (0.11 )(15)                    (0.11     9.24        (6.50 )(6)      1,888        2.05 (7)      1.55 (7)      3.48 (7)      61 (6) 

R4(14)

    10.00        0.15        (0.78     (0.63     (0.13 )(15)                    (0.13     9.24        (6.39 )(6)      1,872        1.75 (7)      1.25 (7)      3.78 (7)      61 (6) 

R5(14)

    10.00        0.16        (0.78     (0.62     (0.14 )(15)                    (0.14     9.24        (6.28 )(6)      1,874        1.45 (7)      0.95 (7)      4.08 (7)      61 (6) 

Y(14)

    10.00        0.15        (0.80     (0.65     (0.14 )(15)                    (0.14     9.21        (6.56 )(6)      13,397        1.36 (7)      0.90 (7)      4.13 (7)      61 (6) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  282  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments
(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments
(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
The Hartford Floating Rate Fund   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

 

A

  $   8.88      $   0.18      $   (0.06   $   0.12      $   (0.19   $   —      $   —      $   (0.19   $   8.81        1.40 %(6)    $   1,266,169        0.98 %(7)      0.98 %(7)      4.19 %(7)      11

B

    8.86        0.15        (0.06     0.09        (0.16                   (0.16     8.79        1.01 (6)      13,088        1.84 (7)      1.75 (7)      3.41 (7)      11   

C

    8.86        0.15        (0.05     0.10        (0.16                   (0.16     8.80        1.03 (6)      1,657,177        1.72 (7)      1.72 (7)      3.45 (7)      11   

I

    8.89        0.19        (0.06     0.13        (0.20                   (0.20     8.82        1.52 (6)      1,918,127        0.72 (7)      0.72 (7)      4.44 (7)      11   

R3

    8.89        0.17        (0.05     0.12        (0.18                   (0.18     8.83        1.26 (6)      14,970        1.36 (7)      1.25 (7)      3.91 (7)      11   

R4

    8.87        0.18        (0.06     0.12        (0.19                   (0.19     8.80        1.39 (6)      10,216        1.05 (7)      1.00 (7)      4.16 (7)      11   

R5

    8.87        0.19        (0.05     0.14        (0.20                   (0.20     8.81        1.65 (6)      3,374        0.78 (7)      0.70 (7)      4.46 (7)      11   

Y

    8.86        0.20        (0.06     0.14        (0.20                   (0.20     8.80        1.68 (6)      427,758        0.64 (7)      0.64 (7)      4.52 (7)      11   

For the Year Ended October 31, 2014

  

                     

A

  $ 9.01      $ 0.34      $ (0.13   $ 0.21      $ (0.34   $      $      $ (0.34   $ 8.88        2.35   $ 1,459,463        0.96     0.96     3.80     75

B

    9.00        0.27        (0.14     0.13        (0.27                   (0.27     8.86        1.44        18,681        1.81        1.75        3.01        75   

C

    9.00        0.28        (0.14     0.14        (0.28                   (0.28     8.86        1.48        1,900,141        1.71        1.71        3.06        75   

I

    9.02        0.37        (0.13     0.24        (0.37                   (0.37     8.89        2.62        2,325,212        0.70        0.70        4.08        75   

R3

    9.03        0.32        (0.14     0.18        (0.32                   (0.32     8.89        1.94        17,970        1.35        1.25        3.52        75   

R4

    9.01        0.34        (0.14     0.20        (0.34                   (0.34     8.87        2.20        11,663        1.05        1.00        3.77        75   

R5

    9.01        0.37        (0.14     0.23        (0.37                   (0.37     8.87        2.50        3,753        0.77        0.70        4.07        75   

Y

    9.00        0.37        (0.14     0.23        (0.37                   (0.37     8.86        2.57        413,511        0.64        0.64        4.13        75   

For the Year Ended October 31, 2013

  

                     

A

  $ 8.93      $ 0.36      $ 0.09      $ 0.45      $ (0.37   $      $      $ (0.37   $ 9.01        5.08   $ 2,064,701        0.96     0.96     4.04     78

B

    8.92        0.29        0.09        0.38        (0.30                   (0.30     9.00        4.27        30,017        1.80        1.75        3.28        78   

C

    8.92        0.30        0.08        0.38        (0.30                   (0.30     9.00        4.31        2,195,858        1.71        1.71        3.30        78   

I

    8.94        0.39        0.08        0.47        (0.39                   (0.39     9.02        5.35        2,772,328        0.70        0.70        4.29        78   

R3

    8.95        0.34        0.08        0.42        (0.34                   (0.34     9.03        4.77        18,334        1.36        1.25        3.76        78   

R4

    8.92        0.36        0.09        0.45        (0.36                   (0.36     9.01        5.17        13,255        1.04        1.00        4.01        78   

R5

    8.93        0.39        0.08        0.47        (0.39                   (0.39     9.01        5.36        3,942        0.76        0.70        4.33        78   

Y

    8.92        0.39        0.09        0.48        (0.40                   (0.40     9.00        5.43        79,142        0.64        0.64        4.39        78   

For the Year Ended October 31, 2012(13)

  

                     

A

  $ 8.64      $ 0.43      $ 0.29      $ 0.72      $ (0.43   $      $      $ (0.43   $ 8.93        8.48   $ 1,784,029        0.98     0.98     4.85     60

B

    8.63        0.36        0.29        0.65        (0.36                   (0.36     8.92        7.66        35,026        1.80        1.75        4.08        60   

C

    8.63        0.36        0.29        0.65        (0.36                   (0.36     8.92        7.69        2,031,516        1.72        1.72        4.10        60   

I

    8.65        0.45        0.29        0.74        (0.45                   (0.45     8.94        8.74        1,817,957        0.73        0.73        5.10        60   

R3

    8.66        0.40        0.29        0.69        (0.40                   (0.40     8.95        8.17        13,889        1.37        1.25        4.57        60   

R4

    8.63        0.42        0.29        0.71        (0.42                   (0.42     8.92        8.47        11,283        1.06        1.00        4.80        60   

R5

    8.64        0.45        0.29        0.74        (0.45                   (0.45     8.93        8.78        11,820        0.76        0.70        5.12        60   

Y

    8.63        0.45        0.29        0.74        (0.45                   (0.45     8.92        8.85        75,994        0.65        0.65        5.18        60   

For the Year Ended October 31, 2011(13)

  

                 

A

  $ 8.81      $ 0.42      $ (0.16   $ 0.26      $ (0.43   $      $      $ (0.43   $ 8.64        2.91   $ 1,972,548        0.97     0.97     4.79     96

B

    8.81        0.35        (0.17     0.18        (0.36                   (0.36     8.63        2.00        41,006        1.79        1.75        4.01        96   

C

    8.81        0.36        (0.18     0.18        (0.36                   (0.36     8.63        2.03        2,106,199        1.72        1.72        4.05        96   

I

    8.82        0.45        (0.17     0.28        (0.45                   (0.45     8.65        3.16        1,568,922        0.72        0.72        5.03        96   

R3

    8.83        0.40        (0.17     0.23        (0.40                   (0.40     8.66        2.62        11,257        1.37        1.25        4.52        96   

R4

    8.81        0.42        (0.18     0.24        (0.42                   (0.42     8.63        2.76        6,048        1.06        1.00        4.78        96   

R5

    8.82        0.44        (0.17     0.27        (0.45                   (0.45     8.64        3.07        7,882        0.75        0.70        5.04        96   

Y

    8.80        0.45        (0.17     0.28        (0.45                   (0.45     8.63        3.24        115,997        0.65        0.65        5.11        96   

For the Year Ended October 31, 2010(13)

  

                     

A

  $ 8.30      $ 0.46      $ 0.51      $ 0.97      $ (0.46   $      $   —      $ (0.46   $ 8.81        11.97   $   1,840,478        0.97     0.97     5.40     63

B

    8.30        0.40        0.50        0.90        (0.39                   (0.39     8.81        11.11        47,006        1.78        1.75        4.64        63   

C

    8.29        0.40        0.52        0.92        (0.40                   (0.40     8.81        11.27        1,945,470        1.72        1.72        4.65        63   

I

    8.31        0.48        0.51        0.99        (0.48                   (0.48     8.82        12.22        1,202,589        0.74        0.74        5.62        63   

R3

    8.31        0.44        0.52        0.96        (0.44                   (0.44     8.83        11.75        7,598        1.38        1.25        5.11        63   

R4

    8.30        0.46        0.51        0.97        (0.46                   (0.46     8.81        11.93        2,339        1.07        1.00        5.37        63   

R5

    8.30        0.48        0.51        0.99        (0.47                   (0.47     8.82        12.25        10,956        0.79        0.74        5.46        63   

Y

    8.29        0.49        0.51        1.00        (0.49                   (0.49     8.80        12.35        101,560        0.65        0.65        5.73        63   

 

The accompanying notes are an integral part of these financial statements.

 

 

  283  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain

(Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments

(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments

(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net

Assets(4)
    Portfolio
Turnover
 
The Hartford Floating Rate High Income Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $ 10.54      $ 0.25      $ (0.18   $ 0.07      $ (0.26   $ (0.15   $      $ (0.41   $ 10.20        0.70 %(6)    $ 158,041        1.11 %(7)      1.05 %(7)      4.94 %(7)      25

C

    10.54        0.21        (0.17     0.04        (0.23     (0.15            (0.38     10.20        0.33 (6)      108,166        1.86 (7)      1.80 (7)      4.19 (7)      25   

I

    10.55        0.26        (0.17     0.09        (0.28     (0.15            (0.43     10.21        0.83 (6)      177,838        0.87 (7)      0.80 (7)      5.18 (7)      25   

R3

    10.52        0.23        (0.17     0.06        (0.25     (0.15            (0.40     10.18        0.55 (6)      2,933        1.48 (7)      1.35 (7)      4.64 (7)      25   

R4

    10.52        0.25        (0.18     0.07        (0.26     (0.15            (0.41     10.18        0.70 (6)      3,043        1.18 (7)      1.05 (7)      4.94 (7)      25   

R5

    10.52        0.26        (0.17     0.09        (0.28     (0.15            (0.43     10.18        0.95 (6)      2,913        0.88 (7)      0.75 (7)      5.23 (7)      25   

Y

    10.52        0.26        (0.17     0.09        (0.28     (0.15            (0.43     10.18        0.85 (6)      12,874        0.78 (7)      0.75 (7)      5.24 (7)      25   

For the Year Ended October 31, 2014

  

                     

A

  $ 10.70      $ 0.47      $   (0.13   $   0.34      $   (0.47   $   (0.03   $      $   (0.50   $   10.54        3.23   $ 191,162        1.10     1.05     4.35     100

C

    10.70        0.39        (0.13     0.26        (0.39     (0.03            (0.42     10.54        2.47        118,465        1.87        1.80        3.61        100   

I

    10.71        0.50        (0.14     0.36        (0.49     (0.03            (0.52     10.55        3.49        207,458        0.84        0.80        4.62        100   

R3

    10.68        0.43        (0.13     0.30        (0.43     (0.03            (0.46     10.52        2.93        2,886        1.48        1.35        4.06        100   

R4

    10.68        0.47        (0.13     0.34        (0.47     (0.03            (0.50     10.52        3.24        3,015        1.18        1.05        4.35        100   

R5

    10.68        0.50        (0.13     0.37        (0.50     (0.03            (0.53     10.52        3.45        2,515        0.88        0.75        4.65        100   

Y

    10.68        0.50        (0.13     0.37        (0.50     (0.03            (0.53     10.52        3.55        13,269        0.78        0.75        4.66        100   

For the Year Ended October 31, 2013

  

                     

A

  $ 10.60      $ 0.48      $ 0.22      $ 0.70      $ (0.50   $ (0.10   $      $ (0.60   $ 10.70        6.78   $ 163,631        1.13     1.05     4.53     59

C

    10.60        0.40        0.22        0.62        (0.42     (0.10            (0.52     10.70        5.98        89,287        1.88        1.80        3.78        59   

I

    10.60        0.50        0.23        0.73        (0.52     (0.10            (0.62     10.71        7.15        119,549        0.84        0.80        4.73        59   

R3

    10.58        0.46        0.21        0.67        (0.47     (0.10            (0.57     10.68        6.47        2,560        1.50        1.35        4.32        59   

R4

    10.58        0.49        0.21        0.70        (0.50     (0.10            (0.60     10.68        6.79        2,642        1.19        1.05        4.62        59   

R5

    10.58        0.52        0.21        0.73        (0.53     (0.10            (0.63     10.68        7.11        2,427        0.89        0.75        4.93        59   

Y

    10.58        0.52        0.21        0.73        (0.53     (0.10            (0.63     10.68        7.11        10,907        0.80        0.75        4.92        59   

For the Year Ended October 31, 2012

  

                     

A

  $   10.20      $   0.62      $ 0.42      $ 1.04      $ (0.64   $      $   —      $ (0.64   $ 10.60        10.54   $ 46,387        1.31     1.04     5.93     67

C

    10.20        0.54        0.42        0.96        (0.56                   (0.56     10.60        9.70        24,263        2.05        1.78        5.18        67   

I

    10.20        0.65        0.42        1.07        (0.67                   (0.67     10.60        10.80        15,072        1.05        0.78        6.23        67   

R3

    10.20        0.61        0.38        0.99        (0.61                   (0.61     10.58        9.98        2,252        1.72        1.35        5.85        67   

R4

    10.20        0.64        0.38        1.02        (0.64                   (0.64     10.58        10.31        2,292        1.42        1.05        6.15        67   

R5

    10.20        0.67        0.38        1.05        (0.67                   (0.67     10.58        10.64        2,264        1.12        0.75        6.45        67   

Y

    10.20        0.67        0.38        1.05        (0.67                   (0.67     10.58        10.64        10,181        1.02        0.75        6.45        67   

For the Period Ended October 31, 2011(16)

  

                     

A(16)

  $ 10.00      $ 0.03      $ 0.20      $ 0.23      $ (0.03   $      $      $ (0.03   $ 10.20        2.25 %(6)    $ 6,855        1.29 %(7)      1.00 %(7)      4.72 %(7)      %(6) 

C(16)

    10.00        0.03        0.19        0.22        (0.02                   (0.02     10.20        2.19 (6)      3,101        2.07 (7)      1.78 (7)      4.21 (7)      (6) 

I(16)

    10.00        0.04        0.19        0.23        (0.03                   (0.03     10.20        2.28 (6)      2,611        1.05 (7)      0.76 (7)      5.10 (7)      (6) 

R3(16)

    10.00        0.03        0.19        0.22        (0.02                   (0.02     10.20        2.22 (6)      2,044        1.74 (7)      1.35 (7)      4.25 (7)      (6) 

R4(16)

    10.00        0.03        0.20        0.23        (0.03                   (0.03     10.20        2.25 (6)      2,044        1.44 (7)      1.05 (7)      4.55 (7)      (6) 

R5(16)

    10.00        0.04        0.19        0.23        (0.03                   (0.03     10.20        2.28 (6)      2,045        1.14 (7)      0.75 (7)      4.85 (7)      (6) 

Y(16)

    10.00        0.04        0.19        0.23        (0.03                   (0.03     10.20        2.27 (6)      9,195        1.04 (7)      0.75 (7)      4.85 (7)      (6) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  284  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain

(Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments
(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments
(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net
Assets(4)
    Portfolio
Turnover
 
The Hartford High Yield Fund   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

 

A

  $ 7.68      $ 0.17      $ (0.09   $ 0.08      $ (0.17   $      $      $ (0.17   $ 7.59        1.15 %(6)    $ 276,037        1.15 %(7)      1.05 %(7)      4.52 %(7)      14

B

    7.64        0.15        (0.10     0.05        (0.15                   (0.15     7.54        0.65 (6)      4,484        2.05 (7)      1.80 (7)      3.97 (7)      14   

C

    7.65        0.15        (0.09     0.06        (0.15                   (0.15     7.56        0.78 (6)      84,127        1.82 (7)      1.80 (7)      3.97 (7)      14   

I

    7.72        0.19        (0.11     0.08        (0.18                   (0.18     7.62        1.14 (6)      42,129        0.84 (7)      0.80 (7)      4.97 (7)      14   

R3

    7.68        0.16        (0.10     0.06        (0.16                   (0.16     7.58        0.87 (6)      2,216        1.47 (7)      1.35 (7)      4.42 (7)      14   

R4

    7.68        0.18        (0.10     0.08        (0.17                   (0.17     7.59        1.15 (6)      1,443        1.16 (7)      1.05 (7)      4.72 (7)      14   

R5

    7.68        0.19        (0.11     0.08        (0.18                   (0.18     7.58        1.17 (6)      498        0.85 (7)      0.75 (7)      5.02 (7)      14   

Y

    7.67        0.19        (0.10     0.09        (0.19                   (0.19     7.57        1.19 (6)      8,496        0.73 (7)      0.70 (7)      5.08 (7)      14   

For the Year Ended October 31, 2014

  

                     

A

  $   7.66      $   0.38      $   0.02      $   0.40      $   (0.38   $   —      $   —      $   (0.38   $   7.68        5.35   $   262,960        1.14     1.05     4.90     54

B

    7.62        0.32        0.02        0.34        (0.32                   (0.32     7.64        4.60        5,683        2.02        1.80        4.17        54   

C

    7.63        0.32        0.02        0.34        (0.32                   (0.32     7.65        4.60        95,449        1.83        1.80        4.15        54   

I

    7.70        0.40        0.03        0.43        (0.41                   (0.41     7.72        5.60        46,691        0.81        0.78        5.17        54   

R3

    7.65        0.36        0.03        0.39        (0.36                   (0.36     7.68        5.18        2,487        1.47        1.35        4.60        54   

R4

    7.66        0.38        0.03        0.41        (0.39                   (0.39     7.68        5.35        1,367        1.16        1.05        4.91        54   

R5

    7.65        0.40        0.04        0.44        (0.41                   (0.41     7.68        5.81        522        0.85        0.75        5.21        54   

Y

    7.65        0.41        0.01        0.42        (0.40                   (0.40     7.67        5.73        8,415        0.73        0.70        5.25        54   

For the Year Ended October 31, 2013

  

           

A

  $ 7.53      $ 0.40      $ 0.14      $ 0.54      $ (0.41   $      $      $ (0.41   $ 7.66        7.33   $ 295,950        1.15     1.05     5.29     58

B

    7.50        0.34        0.13        0.47        (0.35                   (0.35     7.62        6.43        8,242        1.99        1.80        4.54        58   

C

    7.51        0.34        0.13        0.47        (0.35                   (0.35     7.63        6.42        105,204        1.81        1.80        4.54        58   

I

    7.57        0.42        0.14        0.56        (0.43                   (0.43     7.70        7.56        65,060        0.81        0.79        5.54        58   

R3

    7.53        0.38        0.13        0.51        (0.39                   (0.39     7.65        6.87        2,872        1.47        1.35        4.96        58   

R4

    7.54        0.40        0.13        0.53        (0.41                   (0.41     7.66        7.18        1,323        1.14        1.05        5.30        58   

R5

    7.53        0.42        0.13        0.55        (0.43                   (0.43     7.65        7.51        609        0.84        0.75        5.57        58   

Y

    7.53        0.43        0.13        0.56        (0.44                   (0.44     7.65        7.57        8,599        0.72        0.70        5.65        58   

For the Year Ended October 31, 2012(13)

  

                     

A

  $ 7.20      $ 0.44      $ 0.33      $ 0.77      $ (0.44   $      $      $ (0.44   $ 7.53        11.00   $ 365,718        1.12     1.05     5.97     138

B

    7.17        0.38        0.33        0.71        (0.38                   (0.38     7.50        10.24        10,990        2.00        1.80        5.28        138   

C

    7.18        0.38        0.33        0.71        (0.38                   (0.38     7.51        10.23        103,639        1.82        1.79        5.24        138   

I

    7.23        0.46        0.34        0.80        (0.46                   (0.46     7.57        11.39        64,195        0.83        0.80        6.24        138   

R3

    7.20        0.42        0.33        0.75        (0.42                   (0.42     7.53        10.68        1,934        1.49        1.35        5.65        138   

R4

    7.20        0.44        0.34        0.78        (0.44                   (0.44     7.54        11.15        1,191        1.16        1.05        5.85        138   

R5

    7.20        0.46        0.33        0.79        (0.46                   (0.46     7.53        11.34        431        0.86        0.75        6.25        138   

Y

    7.19        0.47        0.33        0.80        (0.46                   (0.46     7.53        11.55        15,468        0.73        0.70        6.39        138   

For the Year Ended October 31, 2011(13)

  

           

A

  $ 7.37      $ 0.53      $ (0.17   $ 0.36      $ (0.53   $      $      $ (0.53   $ 7.20        4.95   $ 280,568        1.14     1.05     7.19     117

B

    7.34        0.48        (0.17     0.31        (0.48                   (0.48     7.17        4.19        13,007        1.99        1.80        6.45        117   

C

    7.35        0.47        (0.16     0.31        (0.48                   (0.48     7.18        4.20        102,694        1.83        1.80        6.43        117   

I

    7.39        0.55        (0.16     0.39        (0.55                   (0.55     7.23        5.36        86,138        0.82        0.79        7.38        117   

R3

    7.36        0.51        (0.16     0.35        (0.51                   (0.51     7.20        4.79        1,423        1.51        1.35        6.85        117   

R4

    7.37        0.53        (0.17     0.36        (0.53                   (0.53     7.20        4.95        483        1.19        1.05        7.13        117   

R5

    7.37        0.56        (0.18     0.38        (0.55                   (0.55     7.20        5.27        321        0.84        0.75        7.45        117   

Y

    7.36        0.57        (0.18     0.39        (0.56                   (0.56     7.19        5.32        20,136        0.73        0.70        7.53        117   

For the Year Ended October 31, 2010(13)

  

                     

A

  $ 6.73      $ 0.59      $ 0.65      $ 1.24      $ (0.60   $      $      $ (0.60   $ 7.37        19.14   $ 284,606        1.20     1.20     8.43     141

B

    6.71        0.54        0.64        1.18        (0.55                   (0.55     7.34        18.17        19,919        2.06        1.95        7.73        141   

C

    6.71        0.54        0.65        1.19        (0.55                   (0.55     7.35        18.38        85,523        1.89        1.89        7.73        141   

I

    6.74        0.61        0.66        1.27        (0.62                   (0.62     7.39        19.63        21,098        0.88        0.88        8.51        141   

R3

    6.73        0.56        0.65        1.21        (0.58                   (0.58     7.36        18.70        371        1.61        1.45        8.16        141   

R4

    6.73        0.59        0.65        1.24        (0.60                   (0.60     7.37        19.20        318        1.27        1.15        8.24        141   

R5

    6.73        0.61        0.65        1.26        (0.62                   (0.62     7.37        19.51        492        0.90        0.88        8.52        141   

Y

    6.73        0.62        0.64        1.26        (0.63                   (0.63     7.36        19.47        44,553        0.79        0.79        8.85        141   

 

The accompanying notes are an integral part of these financial statements.

 

 

  285  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Inflation Plus Fund   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

 

A

  $   10.79      $ 0.13      $   (0.10   $ 0.03      $   (0.01   $      $      $ (0.01   $ 10.81        0.24 %(6)    $ 297,635        0.91 %(7)      0.85 %(7)      2.37 %(7)      129

B

    10.47          (0.14     0.12          (0.02                                 10.45        (0.17 )(6)      13,380        1.77 (7)      1.60 (7)      (2.80 )(7)      129   

C

    10.47        (0.14     0.12        (0.02                                 10.45        (0.17 )(6)      205,967        1.65 (7)      1.60 (7)      (2.80 )(7)      129   

I

    10.94        (0.10     0.14        0.04        (0.01                   (0.01     10.97        0.34 (6)      72,764        0.82 (7)      0.60 (7)      (1.83 )(7)      129   

R3

    10.66        (0.13     0.13                                           10.66        0.04 (6)      68,139        1.24 (7)      1.20 (7)      (2.38 )(7)      129   

R4

    10.79        (0.11     0.14        0.03        (0.01                   (0.01     10.81        0.24 (6)      21,120        0.94 (7)      0.90 (7)      (2.10 )(7)      129   

R5

    10.91        (0.10     0.14        0.04        (0.01                   (0.01     10.94        0.34 (6)      4,596        0.66 (7)      0.60 (7)      (1.84 )(7)      129   

Y

    10.95        (0.09     0.13        0.04        (0.01                   (0.01     10.98        0.34 (6)      219,803        0.53 (7)      0.53 (7)      (1.71 )(7)      129   

For the Year Ended October 31, 2014

  

                     

A

  $ 11.32      $ 0.05      $ (0.10   $ (0.05   $ (0.07   $   (0.41   $   —      $ (0.48   $   10.79        (0.43 )%    $   339,993        0.92     0.85     0.48     108

B

    11.05        (0.04     (0.09     (0.13     (0.04     (0.41            (0.45     10.47        (1.16     16,784        1.74        1.60        (0.35     108   

C

    11.05        (0.04     (0.09     (0.13     (0.04     (0.41            (0.45     10.47        (1.16     240,647        1.63        1.60        (0.33     108   

I

    11.45        0.06        (0.08     (0.02     (0.08     (0.41            (0.49     10.94        (0.16     91,095        0.67        0.60        0.58        108   

R3

    11.21        0.02        (0.11     (0.09     (0.05     (0.41            (0.46     10.66        (0.74     69,577        1.23        1.20        0.19        108   

R4

    11.33        0.05        (0.12     (0.07     (0.06     (0.41            (0.47     10.79        (0.54     22,639        0.92        0.90        0.43        108   

R5

    11.42        0.09        (0.11     (0.02     (0.08     (0.41            (0.49     10.91        (0.16     5,119        0.64        0.60        0.79        108   

Y

    11.46        0.09        (0.11     (0.02     (0.08     (0.41            (0.49     10.95        (0.13     231,771        0.52        0.52        0.84        108   

For the Year Ended October 31, 2013

  

             

A

  $ 12.65      $ 0.04      $ (0.91   $ (0.87   $ (0.04   $ (0.42   $      $ (0.46   $ 11.32        (7.15 )%    $ 507,889        0.88     0.85     0.34     82

B

    12.44        (0.05     (0.90     (0.95     (0.02     (0.42            (0.44     11.05        (7.88     28,633        1.69        1.60        (0.43     82   

C

    12.43        (0.05     (0.89     (0.94     (0.02     (0.42            (0.44     11.05        (7.81     375,906        1.60        1.60        (0.42     82   

I

    12.76        0.06        (0.91     (0.85     (0.04     (0.42            (0.46     11.45        (6.88     124,329        0.65        0.60        0.51        82   

R3

    12.57               (0.91     (0.91     (0.03     (0.42            (0.45     11.21        (7.49     73,380        1.22        1.20        0.01        82   

R4

    12.66        0.04        (0.91     (0.87     (0.04     (0.42            (0.46     11.33        (7.15     29,584        0.91        0.90        0.30        82   

R5

    12.73        0.08        (0.93     (0.85     (0.04     (0.42            (0.46     11.42        (6.90     6,219        0.63        0.60        0.69        82   

Y

    12.76        0.07        (0.90     (0.83     (0.05     (0.42            (0.47     11.46        (6.79     287,361        0.51        0.51        0.60        82   

For the Year Ended October 31, 2012

  

             

A

  $ 12.36      $ 0.08      $ 0.80      $ 0.88      $ (0.07   $ (0.52   $      $ (0.59   $ 12.65        7.41   $ 851,003        0.86     0.85     0.69     102

B

    12.22        (0.01     0.79        0.78        (0.04     (0.52            (0.56     12.44        6.65        53,262        1.66        1.60        (0.11     102   

C

    12.21        (0.01     0.79        0.78        (0.04     (0.52            (0.56     12.43        6.66        717,899        1.59        1.59        (0.04     102   

I

    12.44        0.11        0.81        0.92        (0.08     (0.52            (0.60     12.76        7.70        297,985        0.64        0.60        0.91        102   

R3

    12.31        0.05        0.78        0.83        (0.05     (0.52            (0.57     12.57        7.07        94,112        1.21        1.20        0.41        102   

R4

    12.37        0.08        0.80        0.88        (0.07     (0.52            (0.59     12.66        7.39        41,261        0.91        0.90        0.69        102   

R5

    12.42        0.13        0.78        0.91        (0.08     (0.52            (0.60     12.73        7.63        8,096        0.62        0.60        1.05        102   

Y

    12.44        0.12        0.80        0.92        (0.08     (0.52            (0.60     12.76        7.73        378,089        0.50        0.50        0.99        102   

For the Year Ended October 31, 2011(13)

  

                     

A(17)

  $ 12.27      $ 0.35      $ 0.58      $ 0.93      $ (0.32   $ (0.52   $      $ (0.84   $ 12.36        8.19   $ 836,386        0.87     0.85     2.89     232

B

    12.16        0.26        0.57        0.83        (0.25     (0.52            (0.77     12.22        7.35        72,383        1.67        1.60        2.14        232   

C

    12.15        0.26        0.57        0.83        (0.25     (0.52            (0.77     12.21        7.36        678,916        1.60        1.60        2.16        232   

I

    12.34        0.37        0.59        0.96        (0.34     (0.52            (0.86     12.44        8.45        300,497        0.64        0.60        3.19        232   

R3

    12.23        0.30        0.59        0.89        (0.29     (0.52            (0.81     12.31        7.83        65,208        1.22        1.20        2.70        232   

R4

    12.28        0.34        0.58        0.92        (0.31     (0.52            (0.83     12.37        8.14        25,566        0.92        0.90        2.93        232   

R5

    12.31        0.36        0.61        0.97        (0.34     (0.52            (0.86     12.42        8.55        14,764        0.63        0.60        3.69        232   

Y

    12.33        0.39        0.59        0.98        (0.35     (0.52            (0.87     12.44        8.63        299,096        0.51        0.51        3.37        232   

For the Year Ended October 31, 2010

  

             

A

  $ 11.39      $ 0.17      $ 0.96      $ 1.13      $ (0.18   $ (0.07   $      $ (0.25   $ 12.27        10.06   $ 822,952        0.92     0.90     1.52     322

B

    11.30        0.09        0.95        1.04        (0.11     (0.07            (0.18     12.16        9.28        103,313        1.71        1.65        0.77        322   

C

    11.29        0.08        0.96        1.04        (0.11     (0.07            (0.18     12.15        9.28        674,801        1.65        1.65        0.75        322   

I

    11.45        0.20        0.96        1.16        (0.20     (0.07            (0.27     12.34        10.32        243,916        0.71        0.65        1.74        322   

R3

    11.36        0.12        0.96        1.08        (0.14     (0.07            (0.21     12.23        9.67        33,638        1.29        1.25        1.09        322   

R4

    11.40        0.15        0.97        1.12        (0.17     (0.07            (0.24     12.28        9.97        14,398        0.98        0.97        1.35        322   

R5

    11.42        0.18        0.98        1.16        (0.20     (0.07            (0.27     12.31        10.30        2,878        0.68        0.67        1.60        322   

Y

    11.43        0.21        0.97        1.18        (0.21     (0.07            (0.28     12.33        10.49        318,524        0.57        0.57        1.88        322   

 

The accompanying notes are an integral part of these financial statements.

 

 

  286  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Quality Bond Fund           

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

             

A

  $ 10.19      $ 0.02      $ 0.16      $ 0.18      $ (0.02   $   (0.15   $   —      $   (0.17   $   10.20        1.81 %(6)    $   10,003        1.19 %(7)      0.92 %(7)      0.34 %(7)      6

C

    10.15        (0.02     0.16        0.14               (0.15            (0.15     10.14        1.41 (6)      2,313        1.92 (7)      1.66 (7)      (0.40 )(7)      6   

I

    10.20        0.03        0.17        0.20        (0.03     (0.15            (0.18     10.22        2.02 (6)      2,166        0.90 (7)      0.65 (7)      0.61 (7)      6   

R3

    10.17               0.17        0.17        (0.01     (0.15            (0.16     10.18        1.68 (6)      2,082        1.59 (7)      1.25 (7)      0.01 (7)      6   

R4

    10.19        0.02        0.16        0.18        (0.02     (0.15            (0.17     10.20        1.80 (6)      2,097        1.29 (7)      0.95 (7)      0.31 (7)      6   

R5

    10.20        0.03        0.17        0.20        (0.03     (0.15            (0.18     10.22        2.01 (6)      2,112        0.99 (7)      0.65 (7)      0.61 (7)      6   

Y

    10.20        0.03        0.17        0.20        (0.03     (0.15            (0.18     10.22        2.03 (6)      9,516        0.90 (7)      0.60 (7)      0.66 (7)      6   

For the Year Ended October 31, 2014

  

             

A

  $ 9.82      $ 0.05      $ 0.39      $ 0.44      $ (0.07   $      $      $ (0.07   $ 10.19        4.48   $ 8,568        1.26     0.86     0.52     27

C

    9.79        (0.02     0.39        0.37        (0.01                   (0.01     10.15        3.75        1,882        2.01        1.61        (0.22     27   

I

    9.82        0.08        0.39        0.47        (0.09                   (0.09     10.20        4.83        2,119        0.98        0.58        0.81        27   

R3

    9.80        0.02        0.39        0.41        (0.04                   (0.04     10.17        4.17        2,048        1.68        1.23        0.17        27   

R4

    9.81        0.05        0.39        0.44        (0.06                   (0.06     10.19        4.53        2,060        1.38        0.93        0.47        27   

R5

    9.82        0.08        0.39        0.47        (0.09                   (0.09     10.20        4.79        2,072        1.08        0.63        0.77        27   

Y

    9.82        0.08        0.39        0.47        (0.09                   (0.09     10.20        4.84        9,333        0.98        0.58        0.82        27   

For the Period Ended October 31, 2013(18)

  

             

A(18)

  $   10.00      $ 0.05      $ (0.18   $ (0.13   $ (0.05   $      $      $ (0.05   $ 9.82        (1.29 )%(6)    $ 6,849        1.28 %(7)      0.81 %(7)      0.52 %(7)      83 %(6) 

C(18)

    10.00          (0.02       (0.18       (0.20       (0.01                   (0.01     9.79        (1.99 )(6)      2,239        2.03 (7)      1.56 (7)      (0.23 )(7)      83 (6) 

I(18)

    10.00        0.07        (0.18     (0.11     (0.07                   (0.07     9.82        (1.14 )(6)      2,036        1.03 (7)      0.55 (7)      0.76 (7)      83 (6) 

R3(18)

    10.00        0.01        (0.18     (0.17     (0.03                   (0.03     9.80        (1.69 )(6)      1,966        1.72 (7)      1.20 (7)      0.12 (7)      83 (6) 

R4(18)

    10.00        0.04        (0.18     (0.14     (0.05                   (0.05     9.81        (1.43 )(6)      1,972        1.42 (7)      0.90 (7)      0.41 (7)      83 (6) 

R5(18)

    10.00        0.07        (0.19     (0.12     (0.06                   (0.06     9.82        (1.16 )(6)      1,977        1.12 (7)      0.60 (7)      0.71 (7)      83 (6) 

Y(18)

    10.00        0.07        (0.18     (0.11     (0.07                   (0.07     9.82        (1.13 )(6)      8,902        1.02 (7)      0.55 (7)      0.76 (7)      83 (6) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  287  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Short Duration Fund           

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

             

A

  $ 9.91      $ 0.07      $ 0.04      $ 0.11      $ (0.08   $ (0.03   $      $ (0.11   $ 9.91        1.07 %(6)    $ 460,051        0.89 %(7)      0.85 %(7)      1.52 %(7)      14

B

    9.96        0.08        0.03        0.11        (0.08     (0.03            (0.11     9.96        1.07 (6)      4,941        1.03 (7)      0.85 (7)      1.62 (7)      14   

C

    9.91        0.04        0.02        0.06        (0.04     (0.03            (0.07     9.90        0.70 (6)      114,085        1.59 (7)      1.59 (7)      0.89 (7)      14   

I

    9.93        0.10        0.02        0.12        (0.09     (0.03            (0.12     9.93        1.23 (6)      164,717        0.53 (7)      0.53 (7)      1.94 (7)      14   

R3

    9.88        0.06        0.03        0.09        (0.06     (0.03            (0.09     9.88        0.92 (6)      923        1.22 (7)      1.15 (7)      1.32 (7)      14   

R4

    9.89        0.08        0.03        0.11        (0.08     (0.03            (0.11     9.89        1.07 (6)      989        0.91 (7)      0.85 (7)      1.62 (7)      14   

R5

    9.89        0.09        0.02        0.11        (0.09     (0.03            (0.12     9.88        1.22 (6)      111        0.60 (7)      0.55 (7)      1.92 (7)      14   

Y

    9.88        0.10        0.03        0.13        (0.10     (0.03            (0.13     9.88        1.25 (6)      6,701        0.49 (7)      0.49 (7)      1.98 (7)      14   

For the Year Ended October 31, 2014

  

                     

A

  $ 9.98      $   0.15      $   (0.03   $ 0.12      $   (0.15   $   (0.04   $   —      $   (0.19   $ 9.91        1.23   $   469,415        0.91     0.85     1.50     50

B

    10.02        0.15        (0.02     0.13        (0.15     (0.04            (0.19     9.96        1.33        6,510        1.01        0.85        1.51        50   

C

    9.98        0.08        (0.03     0.05        (0.08     (0.04            (0.12     9.91        0.48        128,158        1.60        1.60        0.76        50   

I

    10.00        0.18        (0.03     0.15        (0.18     (0.04            (0.22     9.93        1.52        208,183        0.55        0.55        1.79        50   

R3

    9.96        0.12        (0.04     0.08        (0.12     (0.04            (0.16     9.88        0.84        879        1.23        1.15        1.20        50   

R4

    9.97        0.15        (0.04     0.11        (0.15     (0.04            (0.19     9.89        1.14        997        0.92        0.85        1.50        50   

R5

    9.96        0.18        (0.03     0.15        (0.18     (0.04            (0.22     9.89        1.54        109        0.61        0.55        1.80        50   

Y

    9.96        0.18        (0.03     0.15        (0.19     (0.04            (0.23     9.88        1.49        5,134        0.50        0.50        1.83        50   

For the Year Ended October 31, 2013

  

                     

A

  $   10.05      $ 0.17      $ (0.05   $ 0.12      $ (0.17   $ (0.02   $      $ (0.19   $ 9.98        1.20   $ 451,357        0.88     0.85     1.66     51

B

    10.05        0.17        (0.01     0.16        (0.17     (0.02            (0.19       10.02        1.60        9,589        0.99        0.85        1.67        51   

C

    10.05        0.09        (0.05     0.04        (0.09     (0.02            (0.11     9.98        0.44        133,623        1.60        1.60        0.93        51   

I

    10.07        0.20        (0.05     0.15        (0.20     (0.02            (0.22     10.00        1.48        105,812        0.57        0.57        1.96        51   

R3

    10.03        0.13        (0.04     0.09        (0.14     (0.02            (0.16     9.96        0.90        527        1.23        1.15        1.35        51   

R4

    10.04        0.17        (0.05     0.12        (0.17     (0.02            (0.19     9.97        1.20        928        0.92        0.85        1.69        51   

R5

    10.03        0.20        (0.05     0.15        (0.20     (0.02            (0.22     9.96        1.51        112        0.61        0.55        1.98        51   

Y

    10.03        0.20        (0.05     0.15        (0.20     (0.02            (0.22     9.96        1.55        3,002        0.51        0.51        2.03        51   

For the Year Ended October 31, 2012

  

                     

A

  $ 9.83      $ 0.20      $ 0.23      $ 0.43      $ (0.21   $      $      $ (0.21   $ 10.05        4.37   $ 279,952        0.86     0.85     2.03     61

B

    9.82        0.20        0.24        0.44        (0.21                   (0.21     10.05        4.48        7,959        0.97        0.85        2.04        61   

C

    9.83        0.13        0.22        0.35        (0.13                   (0.13     10.05        3.60        136,515        1.60        1.60        1.28        61   

I

    9.84        0.23        0.23        0.46        (0.23                   (0.23     10.07        4.75        117,449        0.58        0.58        2.30        61   

R3

    9.81        0.17        0.23        0.40        (0.18                   (0.18     10.03        4.07        258        1.23        1.15        1.72        61   

R4

    9.81        0.20        0.24        0.44        (0.21                   (0.21     10.04        4.48        783        0.93        0.85        2.02        61   

R5

    9.81        0.23        0.23        0.46        (0.24                   (0.24     10.03        4.69        106        0.62        0.55        2.33        61   

Y

    9.80        0.23        0.24        0.47        (0.24                   (0.24     10.03        4.84        4,967        0.50        0.50        2.34        61   

For the Year Ended October 31, 2011(13)

  

                     

A

  $ 9.87      $ 0.21      $ (0.04   $ 0.17      $ (0.21   $      $      $ (0.21   $ 9.83        1.77   $ 279,232        0.86     0.85     2.13     55

B

    9.87        0.20        (0.05     0.15        (0.20                   (0.20     9.82        1.54        9,558        1.09        0.98        2.01        55   

C

    9.87        0.14        (0.04     0.10        (0.14                   (0.14     9.83        1.02        140,933        1.59        1.59        1.39        55   

I

    9.89        0.24        (0.05     0.19        (0.24                   (0.24     9.84        1.97        88,321        0.56        0.56        2.41        55   

R3(16)

    9.73        0.01        0.08        0.09        (0.01                   (0.01     9.81        0.96 (6)      101        1.27 (7)      1.15 (7)      1.70 (7)      55   

R4(16)

    9.73        0.02        0.08        0.10        (0.02                   (0.02     9.81        0.98 (6)      101        0.97 (7)      0.85 (7)      1.99 (7)      55   

R5(16)

    9.73        0.02        0.08        0.10        (0.02                   (0.02     9.81        1.01 (6)      101        0.67 (7)      0.55 (7)      2.28 (7)      55   

Y

    9.85        0.24        (0.04     0.20        (0.25                   (0.25     9.80        2.02        230,175        0.51        0.51        2.48        55   

For the Year Ended October 31, 2010(13)

  

                     

A

  $ 9.62      $ 0.25      $ 0.26      $ 0.51      $ (0.26   $      $      $ (0.26   $ 9.87        5.33   $ 208,313        0.87     0.87     2.55     66

B

    9.62        0.18        0.25        0.43        (0.18                   (0.18     9.87        4.51        10,799        1.73        1.65        1.80        66   

C

    9.62        0.18        0.26        0.44        (0.19                   (0.19     9.87        4.56        105,060        1.60        1.60        1.79        66   

I(19)

    9.74        0.18        0.15        0.33        (0.18                   (0.18     9.89        3.42 (6)      26,765        0.58 (7)      0.58 (7)      2.49 (7)      66   

Y

    9.60        0.29        0.25        0.54        (0.29                   (0.29     9.85        5.71        139,394        0.52        0.52        2.90        66   

 

The accompanying notes are an integral part of these financial statements.

 

 

  288  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Strategic Income Fund                         

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                 

A

  $   9.30      $   0.19      $   (0.17   $ 0.02      $   (0.19   $   (0.20   $   —      $   (0.39   $   8.93        0.22 %(6)    $   135,835        1.01 %(7)      0.95 %(7)      4.21 %(7)      36

B

    9.30        0.17        (0.18       (0.01     (0.15     (0.20            (0.35     8.94        (0.04 )(6)      5,376        1.83 (7)      1.70 (7)      3.71 (7)      36   

C

    9.32        0.17        (0.19     (0.02     (0.15     (0.20            (0.35     8.95        (0.03 )(6)      102,446        1.73 (7)      1.70 (7)      3.72 (7)      36   

I

    9.33        0.21        (0.18     0.03        (0.20     (0.20            (0.40     8.96        0.35 (6)      36,688        0.74 (7)      0.70 (7)      4.73 (7)      36   

R3

    9.29        0.18        (0.18            (0.17     (0.20            (0.37     8.92        0.09 (6)      320        1.41 (7)      1.25 (7)      4.13 (7)      36   

R4

    9.30        0.20        (0.18     0.02        (0.19     (0.20            (0.39     8.93        0.23 (6)      135        1.07 (7)      0.95 (7)      4.45 (7)      36   

R5

    9.30        0.21        (0.18     0.03        (0.20     (0.20            (0.40     8.93        0.38 (6)      121        0.74 (7)      0.65 (7)      4.75 (7)      36   

R6(20)

    9.27        0.20        (0.14     0.06        (0.20     (0.20            (0.40     8.93        0.72 (6)      10        0.65 (7)      0.60 (7)      4.67 (7)      36   

Y

    9.30        0.21        (0.18     0.03        (0.20     (0.20            (0.40     8.93        0.40 (6)      119,238        0.64 (7)      0.60 (7)      4.80 (7)      36   

For the Year Ended October 31, 2014

  

                     

A

  $ 9.21      $ 0.36      $ 0.10      $ 0.46      $ (0.37   $      $      $ (0.37   $ 9.30        5.06   $ 144,172        1.01     0.95     3.82     71

B

    9.21        0.29        0.10        0.39        (0.30                   (0.30     9.30        4.25        6,367        1.82        1.70        3.10        71   

C

    9.23        0.29        0.10        0.39        (0.30                   (0.30     9.32        4.26        109,960        1.72        1.69        3.08        71   

I

    9.24        0.38        0.10        0.48        (0.39                   (0.39     9.33        5.32        48,809        0.71        0.68        4.09        71   

R3

    9.21        0.33        0.09        0.42        (0.34                   (0.34     9.29        4.64        213        1.40        1.25        3.54        71   

R4

    9.21        0.36        0.10        0.46        (0.37                   (0.37     9.30        5.06        131        1.05        0.95        3.83        71   

R5

    9.21        0.38        0.11        0.49        (0.40                   (0.40     9.30        5.38        120        0.73        0.65        4.10        71   

Y

    9.20        0.39        0.11        0.50        (0.40                   (0.40     9.30        5.55        113,356        0.63        0.60        4.25        71   

For the Year Ended October 31, 2013

  

                     

A

  $ 9.70      $ 0.36      $ (0.21   $ 0.15      $ (0.36   $ (0.28   $      $ (0.64   $ 9.21        1.67   $ 160,916        0.99     0.95     3.93     55

B

    9.70        0.29        (0.21     0.08        (0.29     (0.28            (0.57     9.21        0.91        9,233        1.79        1.70        3.09        55   

C

    9.72        0.29        (0.21     0.08        (0.29     (0.28            (0.57     9.23        0.90        129,507        1.69        1.68        3.07        55   

I

    9.73        0.37        (0.19     0.18        (0.39     (0.28            (0.67     9.24        1.93        50,963        0.70        0.69        4.00        55   

R3

    9.70        0.35        (0.22     0.13        (0.34     (0.28            (0.62     9.21        1.40        242        1.39        1.25        3.74        55   

R4

    9.70        0.36        (0.21     0.15        (0.36     (0.28            (0.64     9.21        1.68        143        1.03        0.95        3.91        55   

R5

    9.70        0.39        (0.21     0.18        (0.39     (0.28            (0.67     9.21        1.98        114        0.71        0.65        4.20        55   

Y

    9.69        0.40        (0.21     0.19        (0.40     (0.28            (0.68     9.20        2.04        214,550        0.61        0.60        4.30        55   

For the Year Ended October 31, 2012

  

                     

A

  $ 9.20      $ 0.37      $ 0.51      $ 0.88      $ (0.35   $ (0.03   $      $ (0.38   $ 9.70        9.80   $ 219,909        0.98     0.96     3.90     121

B

    9.20        0.30        0.51        0.81        (0.28     (0.03            (0.31     9.70        8.96        12,461        1.78        1.72        3.17        121   

C

    9.21        0.30        0.52        0.82        (0.28     (0.03            (0.31     9.72        9.11        209,271        1.69        1.69        3.17        121   

I

    9.22        0.39        0.53        0.92        (0.38     (0.03            (0.41     9.73        10.18        104,759        0.70        0.70        4.11        121   

R3

    9.20        0.33        0.52        0.85        (0.32     (0.03            (0.35     9.70        9.47        141        1.34        1.27        3.56        121   

R4

    9.20        0.36        0.52        0.88        (0.35     (0.03            (0.38     9.70        9.79        132        1.02        0.97        3.88        121   

R5

    9.20        0.39        0.52        0.91        (0.38     (0.03            (0.41     9.70        10.12        112        0.71        0.67        4.20        121   

Y

    9.20        0.36        0.54        0.90        (0.38     (0.03            (0.41     9.69        10.08        171,127        0.60        0.60        3.82        121   

For the Year Ended October 31, 2011(13)

  

                     

A

  $ 9.22      $ 0.48      $ (0.01   $ 0.47      $ (0.49   $      $      $ (0.49   $ 9.20        5.20   $ 191,353        0.98     0.98     5.27     156

B

    9.21        0.41               0.41        (0.42                   (0.42     9.20        4.51        13,259        1.78        1.75        4.52        156   

C

    9.23        0.42        (0.02     0.40        (0.42                   (0.42     9.21        4.43        183,209        1.71        1.71        4.50        156   

I

    9.24        0.51        (0.02     0.49        (0.51                   (0.51     9.22        5.47        70,365        0.71        1.71        5.47        156   

R3(16)

    9.10        0.04        0.08        0.12        (0.02                   (0.02     9.20        1.34 (6)      101        1.33 (7)      1.30 (7)      5.14 (7)      156   

R4(16)

    9.10        0.04        0.09        0.13        (0.03                   (0.03     9.20        1.37 (6)      101        1.03 (7)      1.00 (7)      5.43 (7)      156   

R5(16)

    9.10        0.04        0.09        0.13        (0.03                   (0.03     9.20        1.40 (6)      101        0.73 (7)      0.70 (7)      5.72 (7)      156   

Y

    9.21        0.51               0.51        (0.52                   (0.52     9.20        5.69        6,885        0.63        0.63        5.50        156   

For the Year Ended October 31, 2010(13)

  

                     

A

  $ 8.69      $ 0.56      $ 0.51      $ 1.07      $ (0.54   $      $      $ (0.54   $ 9.22        12.74   $ 196,945        0.97     0.97     6.26     158

B

    8.69        0.49        0.50        0.99        (0.47                   (0.47     9.21        11.72        15,110        1.77        1.77        5.48        158   

C

    8.70        0.49        0.52        1.01        (0.48                   (0.48     9.23        11.89        155,499        1.70        1.70        5.53        158   

I

    8.71        0.58        0.51        1.09        (0.56                   (0.56     9.24        12.98        60,203        0.71        0.71        6.53        158   

Y

    8.69        0.60        0.49        1.09        (0.57                   (0.57     9.21        12.99        8,272        0.62        0.62        6.70        158   

 

The accompanying notes are an integral part of these financial statements.

 

 

  289  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Total Return Bond Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $   10.71      $   0.10      $   0.04      $   0.14      $   (0.10   $   (0.23   $   —      $   (0.33   $   10.52        1.33 %(6)    $   644,992        0.87 %(7)      0.86 %(7)      1.98 %(7)      39

B

    10.63        0.07        0.03        0.10        (0.06     (0.23            (0.29     10.44        0.97 (6)      14,256        1.84 (7)      1.62 (7)      1.26 (7)      39   

C

    10.72        0.07        0.04        0.11        (0.06     (0.23            (0.29     10.54        1.07 (6)      70,972        1.58 (7)      1.58 (7)      1.34 (7)      39   

I

    10.72        0.13        0.02        0.15        (0.11     (0.23            (0.34     10.53        1.49 (6)      20,742        0.56 (7)      0.56 (7)      2.43 (7)      39   

R3

    10.90        0.09        0.04        0.13        (0.08     (0.23            (0.31     10.72        1.26 (6)      6,520        1.16 (7)      1.16 (7)      1.76 (7)      39   

R4

    10.88        0.11        0.04        0.15        (0.10     (0.23            (0.33     10.70        1.42 (6)      15,698        0.84 (7)      0.84 (7)      2.07 (7)      39   

R5

    10.88        0.13        0.03        0.16        (0.11     (0.23            (0.34     10.70        1.57 (6)      1,482        0.55 (7)      0.54 (7)      2.39 (7)      39   

R6(20)

    10.87        0.13        0.03        0.16        (0.11     (0.23            (0.34     10.69        1.56 (6)      10        0.44 (7)      0.44 (7)      2.52 (7)      39   

Y

    10.87        0.13        0.04        0.17        (0.12     (0.23            (0.35     10.69        1.62 (6)      1,115,387        0.44 (7)      0.44 (7)      2.50 (7)      39   

For the Year Ended October 31, 2014

  

                     

A

  $ 10.48      $ 0.24      $ 0.22      $ 0.46      $ (0.23   $      $      $ (0.23   $ 10.71        4.46   $ 602,306        1.00     0.91     2.26     84

B

    10.40        0.16        0.22        0.38        (0.15                   (0.15     10.63        3.72        19,329        1.93        1.65        1.52        84   

C

    10.49        0.16        0.22        0.38        (0.15                   (0.15     10.72        3.68        70,539        1.72        1.65        1.51        84   

I

    10.49        0.27        0.22        0.49        (0.26                   (0.26     10.72        4.75        11,737        0.67        0.62        2.51        84   

R3

    10.66        0.21        0.23        0.44        (0.20                   (0.20     10.90        4.16        6,868        1.28        1.21        1.96        84   

R4

    10.64        0.24        0.23        0.47        (0.23                   (0.23     10.88        4.48        16,342        0.96        0.90        2.26        84   

R5

    10.64        0.27        0.24        0.51        (0.27                   (0.27     10.88        4.79        978        0.67        0.60        2.55        84   

Y

    10.63        0.29        0.22        0.51        (0.27                   (0.27     10.87        4.89        1,003,275        0.56        0.51        2.66        84   

For the Year Ended October 31, 2013

  

                     

A

  $ 11.16      $ 0.23      $ (0.32   $ (0.09   $ (0.26   $ (0.33   $      $ (0.59   $ 10.48        (0.83 )%    $ 586,762        0.99     0.95     2.15     106

B

    11.08        0.15        (0.32     (0.17     (0.18     (0.33            (0.51     10.40        (1.58     31,258        1.88        1.70        1.39        106   

C

    11.18        0.15        (0.33     (0.18     (0.18     (0.33            (0.51     10.49        (1.66     78,034        1.70        1.70        1.40        106   

I

    11.17        0.26        (0.32     (0.06     (0.29     (0.33            (0.62     10.49        (0.55     6,771        0.68        0.68        2.42        106   

R3

    11.35        0.20        (0.33     (0.13     (0.23     (0.33            (0.56     10.66        (1.21     7,655        1.28        1.25        1.85        106   

R4

    11.33        0.23        (0.33     (0.10     (0.26     (0.33            (0.59     10.64        (0.92     15,725        0.96        0.95        2.15        106   

R5

    11.33        0.26        (0.33     (0.07     (0.29     (0.33            (0.62     10.64        (0.61     664        0.67        0.65        2.44        106   

Y

    11.32        0.28        (0.34     (0.06     (0.30     (0.33            (0.63     10.63        (0.52     883,706        0.55        0.55        2.55        106   

For the Year Ended October 31, 2012(13)

  

                     

A

  $ 10.76      $ 0.29      $ 0.50      $ 0.79      $ (0.34   $ (0.05   $      $ (0.39   $ 11.16        7.50   $ 696,383        0.98     0.89     2.64     77

B

    10.69        0.20        0.50        0.70        (0.26     (0.05            (0.31     11.08        6.66        47,026        1.85        1.64        1.90        77   

C

    10.78        0.21        0.50        0.71        (0.26     (0.05            (0.31     11.18        6.70        105,330        1.69        1.63        1.90        77   

I

    10.77        0.31        0.51        0.82        (0.37     (0.05            (0.42     11.17        7.78        11,177        0.68        0.62        2.92        77   

R3

    10.94        0.26        0.51        0.77        (0.31     (0.05            (0.36     11.35        7.14        9,944        1.27        1.19        2.35        77   

R4

    10.92        0.29        0.51        0.80        (0.34     (0.05            (0.39     11.33        7.47        21,940        0.95        0.89        2.65        77   

R5

    10.92        0.32        0.51        0.83        (0.37     (0.05            (0.42     11.33        7.79        1,018        0.66        0.59        2.94        77   

Y

    10.91        0.33        0.51        0.84        (0.38     (0.05            (0.43     11.32        7.91        952,621        0.55        0.49        3.04        77   

For the Year Ended October 31, 2011(13)

  

                     

A

  $ 10.70      $ 0.33      $ 0.06      $ 0.39      $ (0.33   $      $      $ (0.33   $ 10.76        3.78   $ 673,310        0.98     0.95     3.16     131

B

    10.63        0.25        0.07        0.32        (0.26                   (0.26     10.69        3.03        54,934        1.85        1.70        2.41        131   

C

    10.71        0.26        0.07        0.33        (0.26                   (0.26     10.78        3.10        104,382        1.69        1.69        2.42        131   

I

    10.70        0.37        0.06        0.43        (0.36                   (0.36     10.77        4.15        11,973        0.68        0.68        3.45        131   

R3

    10.87        0.31        0.06        0.37        (0.30                   (0.30     10.94        3.49        11,922        1.26        1.25        2.85        131   

R4

    10.85        0.34        0.06        0.40        (0.33                   (0.33     10.92        3.81        25,330        0.95        0.95        3.16        131   

R5

    10.85        0.37        0.07        0.44        (0.37                   (0.37     10.92        4.12        990        0.66        0.66        3.46        131   

Y

    10.84        0.38        0.07        0.45        (0.38                   (0.38     10.91        4.23        952,265        0.54        0.54        3.56        131   

For the Year Ended October 31, 2010(13)

  

                     

A

  $ 10.21      $ 0.35      $ 0.51      $ 0.86      $ (0.37   $      $      $ (0.37   $ 10.70        8.57   $ 835,450        0.99 %(21)      0.98 %(21)      3.38 %(21)      201

B

    10.15        0.27        0.50        0.77        (0.29                   (0.29     10.63        7.72        70,845        1.87 (21)      1.74 (21)      2.62 (21)      201   

C

    10.23        0.28        0.49        0.77        (0.29                   (0.29     10.71        7.68        118,462        1.71 (21)      1.70 (21)      2.66 (21)      201   

I

    10.22        0.37        0.51        0.88        (0.40                   (0.40     10.70        8.73        9,395        0.74 (21)      0.73 (21)      3.62 (21)      201   

R3

    10.36        0.33        0.52        0.85        (0.34                   (0.34     10.87        8.36        8,571        1.29 (21)      1.24 (21)      3.12 (21)      201   

R4

    10.35        0.36        0.51        0.87        (0.37                   (0.37     10.85        8.57        25,652        0.97 (21)      0.96 (21)      3.40 (21)      201   

R5

    10.35        0.39        0.51        0.90        (0.40                   (0.40     10.85        8.87        655        0.69 (21)      0.67 (21)      3.69 (21)      201   

Y

    10.34        0.40        0.51        0.91        (0.41                   (0.41     10.84        9.00        994,424        0.57 (21)      0.56 (21)      3.80 (21)      201   

 

The accompanying notes are an integral part of these financial statements.

 

 

  290  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford Unconstrained Bond Fund                       

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

           

A

  $ 10.07      $ 0.14      $ (0.14   $      $ (0.12   $      $      $ (0.12   $ 9.95        0.05 %(6)    $ 64,387        1.18 %(7)      0.99 %(7)      2.84 %(7)      38

B

    10.06        0.10        (0.12     (0.02     (0.09                   (0.09     9.95        (0.22 )(6)      1,455        2.12 (7)      1.74 (7)      2.08 (7)      38   

C

    10.09        0.11        (0.13     (0.02     (0.09                   (0.09     9.98        (0.22 )(6)      15,479        1.87 (7)      1.74 (7)      2.14 (7)      38   

I

    10.07        0.16        (0.13     0.03        (0.14                   (0.14     9.96        0.28 (6)      5,595        0.82 (7)      0.74 (7)      3.16 (7)      38   

R3

    10.05        0.13        (0.13            (0.11                   (0.11     9.94        (6)      151        1.45 (7)      1.29 (7)      2.57 (7)      38   

R4

    10.05        0.14        (0.13     0.01        (0.12                   (0.12     9.94        0.15 (6)      436        1.15 (7)      0.99 (7)      2.91 (7)      38   

R5

    10.05        0.16        (0.13     0.03        (0.14                   (0.14     9.94        0.30 (6)      114        0.83 (7)      0.69 (7)      3.20 (7)      38   

Y

    10.04        0.16        (0.14     0.02        (0.14                   (0.14     9.92        0.20 (6)      21,089        0.74 (7)      0.69 (7)      3.21 (7)      38   

For the Year Ended October 31, 2014

  

                     

A

  $ 10.06      $ 0.29      $ 0.02      $ 0.31      $ (0.30 )(22)    $      $      $ (0.30   $ 10.07        3.16   $ 70,192        1.17     0.99     2.86     62

B

    10.06        0.21        0.02        0.23        (0.23 )(23)                    (0.23     10.06        2.30        1,974        2.08        1.74        2.12        62   

C

    10.09        0.21        0.02        0.23        (0.23 )(23)                    (0.23     10.09        2.29        15,869        1.86        1.74        2.11        62   

I

    10.07        0.31        0.02        0.33        (0.33 )(24)                    (0.33     10.07        3.32        5,311        0.77        0.73        3.10        62   

R3

    10.05        0.26        0.02        0.28        (0.28 )(22)                    (0.28     10.05        2.76        193        1.46        1.29        2.56        62   

R4

    10.05        0.29        0.02        0.31        (0.31 )(22)                    (0.31     10.05        3.07        161        1.15        0.99        2.85        62   

R5

    10.05        0.32        0.02        0.34        (0.34 )(24)                    (0.34     10.05        3.37        113        0.85        0.69        3.17        62   

Y

    10.03        0.32        0.02        0.34        (0.33 )(24)                    (0.33     10.04        3.48        19,584        0.73        0.69        3.16        62   

For the Year Ended October 31, 2013

  

               

A

  $   10.51      $   0.25      $   (0.41   $   (0.16   $   (0.29   $      $   —      $   (0.29   $   10.06        (1.54 )%    $ 85,062        1.13     0.99     2.43     69

B

    10.51        0.17        (0.41     (0.24     (0.21                   (0.21     10.06        (2.28     3,234        2.01        1.74        1.68        69   

C

    10.53        0.17        (0.40     (0.23     (0.21                   (0.21     10.09        (2.18     18,711        1.82        1.74        1.67        69   

I

    10.51        0.28        (0.40     (0.12     (0.32                   (0.32     10.07        (1.19     1,602        0.76        0.74        2.69        69   

R3

    10.50        0.22        (0.41     (0.19     (0.26                   (0.26     10.05        (1.83     179        1.44        1.29        2.17        69   

R4

    10.50        0.25        (0.41     (0.16     (0.29                   (0.29     10.05        (1.54     130        1.11        0.99        2.46        69   

R5

    10.50        0.28        (0.41     (0.13     (0.32                   (0.32     10.05        (1.24     149        0.82        0.69        2.75        69   

Y

    10.48        0.29        (0.42     (0.13     (0.32                   (0.32     10.03        (1.24     17,992        0.71        0.69        2.85        69   

For the Year Ended October 31, 2012

  

                     

A

  $ 10.06      $ 0.37      $ 0.47      $ 0.84      $ (0.39   $   —      $      $ (0.39   $ 10.51        8.47   $   120,395        1.09     0.77     3.59     134

B

    10.05        0.30        0.47        0.77        (0.31                   (0.31     10.51        7.77        5,187        1.96        1.53        2.92        134   

C

    10.07        0.29        0.48        0.77        (0.31                   (0.31     10.53        7.76        29,736        1.79        1.52        2.83        134   

I(25)

    10.30        0.13        0.21        0.34        (0.13                   (0.13     10.51        3.35 (6)      1,132        0.83 (7)      0.62 (7)      2.93 (7)      134   

R3

    10.04        0.33        0.49        0.82        (0.36                   (0.36     10.50        8.27        141        1.40        1.06        3.20        134   

R4

    10.04        0.37        0.48        0.85        (0.39                   (0.39     10.50        8.60        111        1.07        0.77        3.57        134   

R5

    10.04        0.40        0.48        0.88        (0.42                   (0.42     10.50        8.92        111        0.77        0.47        3.87        134   

Y

    10.04        0.48        0.38        0.86        (0.42                   (0.42     10.48        8.73        115        0.72        0.69        4.70        134   

For the Year Ended October 31, 2011(13)

  

               

A

  $ 9.98      $ 0.46      $ 0.10      $ 0.56      $ (0.48   $      $      $ (0.48   $ 10.06        5.71   $ 126,654        1.06     0.95     4.56     207

B

    9.98        0.38        0.09        0.47        (0.40                   (0.40     10.05        4.82        7,324        1.88        1.70        3.82        207   

C

    10.00        0.38        0.09        0.47        (0.40                   (0.40     10.07        4.81        27,057        1.74        1.70        3.80        207   

R3(16)

    9.89        0.03        0.15        0.18        (0.03                   (0.03     10.04        1.81 (6)      102        1.34 (7)      1.25 (7)      4.29 (7)      207   

R4(16)

    9.89        0.04        0.14        0.18        (0.03                   (0.03     10.04        1.84 (6)      102        1.04 (7)      0.95 (7)      4.58 (7)      207   

R5(16)

    9.89        0.04        0.15        0.19        (0.04                   (0.04     10.04        1.87 (6)      102        0.74 (7)      0.65 (7)      4.87 (7)      207   

Y

    9.97        0.49        0.09        0.58        (0.51                   (0.51     10.04        5.96        102,134        0.63        0.63        4.90        207   

For the Year Ended October 31, 2010(13)

  

               

A

  $ 9.54      $ 0.37      $ 0.45      $ 0.82      $ (0.38   $      $      $ (0.38   $ 9.98        8.82   $ 138,388        1.04     1.00     3.75     210

B

    9.53        0.29        0.47        0.76        (0.31                   (0.31     9.98        8.13        10,007        1.87        1.75        3.02        210   

C

    9.55        0.30        0.46        0.76        (0.31                   (0.31     10.00        8.14        26,778        1.72        1.72        3.03        210   

Y

    9.52        0.40        0.47        0.87        (0.42                   (0.42     9.97        9.37        147,197        0.62        0.62        4.13        210   

 

The accompanying notes are an integral part of these financial statements.

 

 

  291  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1) —     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)(4)(5)
    Ratio  of
Expenses
to
Average
Net
Assets
After
Adjust-

ments(3)(4)(5)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets(4)
    Portfolio
Turnover
 
The Hartford World Bond Fund                   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

               

A

  $   10.76      $   0.04      $ 0.01      $ 0.05      $ (0.33   $      $      $ (0.33   $ 10.48        0.55 %(6)    $ 543,587        1.07 %(7)      1.05 %(7)      0.71 %(7)      67

C

    10.74               0.01        0.01        (0.29                   (0.29     10.46        0.19 (6)      183,978        1.75 (7)      1.75 (7)      0.06 (7)      67   

I

    10.77        0.05        0.01        0.06        (0.34                   (0.34     10.49        0.67 (6)      2,214,653        0.77 (7)      0.77 (7)      1.04 (7)      67   

R3

    10.77        0.02        0.01        0.03        (0.31                   (0.31     10.49        0.39 (6)      910        1.37 (7)      1.35 (7)      0.45 (7)      67   

R4

    10.78        0.05          (0.01       0.04          (0.33                   (0.33     10.49        0.46 (6)      4,155        1.07 (7)      1.05 (7)      1.05 (7)      67   

R5

    10.76        0.06               0.06        (0.34                   (0.34     10.48        0.68 (6)      298        0.81 (7)      0.75 (7)      1.07 (7)      67   

R6(20)

    10.78        0.06        0.01        0.07        (0.35                   (0.35     10.50        0.63 (6)      10        0.64 (7)      0.64 (7)      1.14 (7)      67   

Y

    10.77        0.06        0.02        0.08        (0.35                   (0.35     10.50        0.72 (6)      568,453        0.66 (7)      0.66 (7)      1.15 (7)      67   

For the Year Ended October 31, 2014

  

               

A

  $ 10.63      $ 0.12      $ 0.17      $ 0.29      $ (0.13   $   (0.03   $   —      $   (0.16   $   10.76        2.74   $ 422,689        1.02     0.99     1.15     140

C

    10.61        0.04        0.17        0.21        (0.05     (0.03            (0.08     10.74        2.00        179,147        1.76        1.73        0.41        140   

I

    10.64        0.15        0.17        0.32        (0.16     (0.03            (0.19     10.77        3.03          1,966,455        0.76        0.74        1.40        140   

R3

    10.64        0.09        0.17        0.26        (0.10     (0.03            (0.13     10.77        2.42        759        1.39        1.32        0.82        140   

R4

    10.64        0.12        0.18        0.30        (0.13     (0.03            (0.16     10.78        2.80        725        1.07        1.02        1.12        140   

R5

    10.63        0.15        0.17        0.32        (0.16     (0.03            (0.19     10.76        3.03        226        0.79        0.70        1.42        140   

Y

    10.64        0.16        0.17        0.33        (0.17     (0.03            (0.20     10.77        3.11        517,167        0.67        0.64        1.50        140   

For the Year Ended October 31, 2013

  

               

A

  $ 10.77      $ 0.10      $ 0.06      $ 0.16      $ (0.18   $ (0.12   $      $ (0.30   $ 10.63        1.47   $ 481,684        1.03     0.93     0.95     129

C

    10.76        0.02        0.05        0.07        (0.10     (0.12            (0.22     10.61        0.67        177,802        1.77        1.67        0.21        129   

I

    10.78        0.13        0.05        0.18        (0.20     (0.12            (0.32     10.64        1.71        891,048        0.79        0.69        1.19        129   

R3

    10.78        0.06        0.05        0.11        (0.13     (0.12            (0.25     10.64        1.03        519        1.40        1.25        0.60        129   

R4

    10.78        0.10        0.05        0.15        (0.17     (0.12            (0.29     10.64        1.40        976        1.08        0.95        0.92        129   

R5

    10.77        0.13        0.06        0.19        (0.21     (0.12            (0.33     10.63        1.73        372        0.79        0.65        1.18        129   

Y

    10.78        0.14        0.05        0.19        (0.21     (0.12            (0.33     10.64        1.81        340,669        0.68        0.58        1.30        129   

For the Year Ended October 31, 2012

  

               

A

  $ 10.32      $ 0.10      $ 0.59      $ 0.69      $ (0.20   $ (0.04   $      $ (0.24   $ 10.77        6.79   $ 250,916        1.11     0.95     0.95     191

C

    10.31        0.02        0.60        0.62        (0.13     (0.04            (0.17     10.76        6.12        97,235        1.83        1.67        0.19        191   

I

    10.32        0.12        0.60        0.72        (0.22     (0.04            (0.26     10.78        7.11        421,508        0.86        0.70        1.14        191   

R3

    10.32        0.09        0.57        0.66        (0.16     (0.04            (0.20     10.78        6.51        1,297        1.51        1.25        0.85        191   

R4

    10.32        0.12        0.57        0.69        (0.19     (0.04            (0.23     10.78        6.82        1,345        1.21        0.95        1.15        191   

R5

    10.32        0.15        0.56        0.71        (0.22     (0.04            (0.26     10.77        7.03        1,276        0.91        0.65        1.45        191   

Y

    10.32        0.12        0.61        0.73        (0.23     (0.04            (0.27     10.78        7.18        197,637        0.73        0.57        1.12        191   

For the Period Ended October 31, 2011(14)

  

               

A(14)

  $ 10.00      $ 0.09      $ 0.28      $ 0.37      $ (0.05   $      $      $ (0.05   $ 10.32        3.74 %(6)    $ 33,346        1.27 %(7)      0.85 %(7)      1.93 %(7)      50 %(6) 

C(14)

    10.00        0.05        0.28        0.33        (0.02                   (0.02     10.31        3.33 (6)      9,175        2.03 (7)      1.61 (7)      1.18 (7)      50 (6) 

I(14)

    10.00        0.09        0.29        0.38        (0.06                   (0.06     10.32        3.84 (6)      24,552        1.01 (7)      0.59 (7)      2.10 (7)      50 (6) 

R3(14)

    10.00        0.07        0.29        0.36        (0.04                   (0.04     10.32        3.58 (6)      2,071        1.72 (7)      1.25 (7)      1.64 (7)      50 (6) 

R4(14)

    10.00        0.09        0.28        0.37        (0.05                   (0.05     10.32        3.70 (6)      2,073        1.42 (7)      0.95 (7)      1.94 (7)      50 (6) 

R5(14)

    10.00        0.10        0.28        0.38        (0.06                   (0.06     10.32        3.83 (6)      2,076        1.12 (7)      0.65 (7)      2.24 (7)      50 (6) 

Y(14)

    10.00        0.10        0.28        0.38        (0.06                   (0.06     10.32        3.85 (6)      9,344        1.02 (7)      0.60 (7)      2.29 (7)      50 (6) 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  292  

 


Hartford Funds – Taxable Fixed Income Funds

Financial Highlights – (continued)

 

 

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3)  Adjustments include waivers and reimbursements, if applicable.
(4)  Ratios do not include expenses of the Underlying Funds and/or other investment companies, if applicable.
(5)  Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements).
(6)  Not annualized.
(7)  Annualized.
(8)  Commenced operations on November 29, 2013.
(9)  Included in this amount are tax distributions from capital of ($0.36).
(10)  Included in this amount are tax distributions from capital of ($0.30).
(11)  Included in this amount are tax distributions from capital of ($0.39).
(12)  Included in this amount are tax distributions from capital of ($0.34).
(13)  Net investment income (loss) per share amounts have been calculated using the SEC method.
(14)  Commenced operations on May 31, 2011.
(15)  Included in this amount are tax distributions from capital of ($0.02).
(16)  Commenced operations on September 30, 2011.
(17)  Class L was merged into Class A on August 5, 2011.
(18)  Commenced operations on November 30, 2012.
(19)  Commenced operations on February 26, 2010.
(20)  Commenced operations on November 7, 2014.
(21)  Ratios do not include expenses of the Underlying Funds.
(22)  Included in this amount are tax distributions from capital of ($0.04).
(23)  Included in this amount are tax distributions from capital of ($0.03).
(24)  Included in this amount are tax distributions from capital of ($0.05).
(25)  Commenced operations on May 25, 2012.

 

The accompanying notes are an integral part of these financial statements.

 

 

293

 


Hartford Funds – Taxable Fixed Income Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of the Company (the “Directors”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by the Directors. Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

294

 


Hartford Funds – Taxable Fixed Income Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

 

 

295

 


Hartford Funds – Taxable Fixed Income Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Form N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

296

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

Hartford Duration-Hedged Strategic Income Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 983.80    $ 2.66    $ 1,000.00    $ 1,022.12    $ 2.71      0.54   181      365   

Class C

$ 1,000.00    $ 979.30    $ 6.28    $ 1,000.00    $ 1,018.45    $ 6.41      1.28   181      365   

Class I

$ 1,000.00    $ 985.40    $ 1.18    $ 1,000.00    $ 1,023.60    $ 1.20      0.24   181      365   

Class R3

$ 1,000.00    $ 981.20    $ 4.22    $ 1,000.00    $ 1,020.53    $ 4.31      0.86   181      365   

Class R4

$ 1,000.00    $ 982.70    $ 2.75    $ 1,000.00    $ 1,022.02    $ 2.81      0.56   181      365   

Class R5

$ 1,000.00    $ 984.20    $ 1.28    $ 1,000.00    $ 1,023.51    $ 1.30      0.26   181      365   

Class Y

$ 1,000.00    $ 984.70    $ 0.79    $ 1,000.00    $ 1,024.00    $ 0.80      0.16   181      365   

 

 

297

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Emerging Markets Local Debt Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 929.10    $ 6.12    $ 1,000.00    $ 1,018.45    $ 6.41      1.28   181      365   

Class C

$ 1,000.00    $ 925.30    $ 9.64    $ 1,000.00    $ 1,014.78    $ 10.09      2.02   181      365   

Class I

$ 1,000.00    $ 930.10    $ 4.64    $ 1,000.00    $ 1,019.98    $ 4.86      0.97   181      365   

Class R3

$ 1,000.00    $ 927.60    $ 7.55    $ 1,000.00    $ 1,016.96    $ 7.90      1.58   181      365   

Class R4

$ 1,000.00    $ 929.00    $ 6.12    $ 1,000.00    $ 1,018.45    $ 6.41      1.28   181      365   

Class R5

$ 1,000.00    $ 930.40    $ 4.69    $ 1,000.00    $ 1,019.94    $ 4.91      0.98   181      365   

Class Y

$ 1,000.00    $ 930.40    $ 4.50    $ 1,000.00    $ 1,020.13    $ 4.71      0.94   181      365   

The Hartford Floating Rate Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,014.00    $ 4.89    $ 1,000.00    $ 1,019.94    $ 4.91      0.98   181      365   

Class B

$ 1,000.00    $ 1,010.10    $ 8.72    $ 1,000.00    $ 1,016.12    $ 8.75      1.75   181      365   

Class C

$ 1,000.00    $ 1,010.30    $ 8.57    $ 1,000.00    $ 1,016.27    $ 8.60      1.72   181      365   

Class I

$ 1,000.00    $ 1,015.20    $ 3.60    $ 1,000.00    $ 1,021.22    $ 3.61      0.72   181      365   

Class R3

$ 1,000.00    $ 1,012.60    $ 6.24    $ 1,000.00    $ 1,018.60    $ 6.26      1.25   181      365   

Class R4

$ 1,000.00    $ 1,013.90    $ 4.99    $ 1,000.00    $ 1,019.84    $ 5.01      1.00   181      365   

Class R5

$ 1,000.00    $ 1,016.50    $ 3.50    $ 1,000.00    $ 1,021.32    $ 3.51      0.70   181      365   

Class Y

$ 1,000.00    $ 1,016.80    $ 3.20    $ 1,000.00    $ 1,021.62    $ 3.21      0.64   181      365   

The Hartford Floating Rate High Income Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,007.00    $ 5.23    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class C

$ 1,000.00    $ 1,003.30    $ 8.94    $ 1,000.00    $ 1,015.87    $ 9.00      1.80   181      365   

Class I

$ 1,000.00    $ 1,008.30    $ 3.98    $ 1,000.00    $ 1,020.83    $ 4.01      0.80   181      365   

Class R3

$ 1,000.00    $ 1,005.50    $ 6.71    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,007.00    $ 5.23    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class R5

$ 1,000.00    $ 1,009.50    $ 3.74    $ 1,000.00    $ 1,021.08    $ 3.76      0.75   181      365   

Class Y

$ 1,000.00    $ 1,008.50    $ 3.73    $ 1,000.00    $ 1,021.08    $ 3.76      0.75   181      365   

 

 

298

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford High Yield Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,011.50    $ 5.24    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class B

$ 1,000.00    $ 1,006.50    $ 8.96    $ 1,000.00    $ 1,015.87    $ 9.00      1.80   181      365   

Class C

$ 1,000.00    $ 1,007.80    $ 8.96    $ 1,000.00    $ 1,015.87    $ 9.00      1.80   181      365   

Class I

$ 1,000.00    $ 1,011.40    $ 3.99    $ 1,000.00    $ 1,020.83    $ 4.01      0.80   181      365   

Class R3

$ 1,000.00    $ 1,008.70    $ 6.72    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,011.50    $ 5.24    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class R5

$ 1,000.00    $ 1,011.70    $ 3.74    $ 1,000.00    $ 1,021.08    $ 3.76      0.75   181      365   

Class Y

$ 1,000.00    $ 1,011.90    $ 3.49    $ 1,000.00    $ 1,021.32    $ 3.51      0.70   181      365   

The Hartford Inflation Plus Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,002.40    $ 4.22    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class B

$ 1,000.00    $ 998.30    $ 7.93    $ 1,000.00    $ 1,016.86    $ 8.00      1.60   181      365   

Class C

$ 1,000.00    $ 998.30    $ 7.93    $ 1,000.00    $ 1,016.86    $ 8.00      1.60   181      365   

Class I

$ 1,000.00    $ 1,003.40    $ 2.98    $ 1,000.00    $ 1,021.82    $ 3.01      0.60   181      365   

Class R3

$ 1,000.00    $ 1,000.40    $ 5.95    $ 1,000.00    $ 1,018.84    $ 6.01      1.20   181      365   

Class R4

$ 1,000.00    $ 1,002.40    $ 4.47    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

Class R5

$ 1,000.00    $ 1,003.40    $ 2.98    $ 1,000.00    $ 1,021.82    $ 3.01      0.60   181      365   

Class Y

$ 1,000.00    $ 1,003.40    $ 2.63    $ 1,000.00    $ 1,022.17    $ 2.66      0.53   181      365   

The Hartford Quality Bond Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,018.10    $ 4.60    $ 1,000.00    $ 1,020.23    $ 4.61      0.92   181      365   

Class C

$ 1,000.00    $ 1,014.10    $ 8.29    $ 1,000.00    $ 1,016.56    $ 8.30      1.66   181      365   

Class I

$ 1,000.00    $ 1,020.20    $ 3.26    $ 1,000.00    $ 1,021.57    $ 3.26      0.65   181      365   

Class R3

$ 1,000.00    $ 1,016.80    $ 6.25    $ 1,000.00    $ 1,018.60    $ 6.26      1.25   181      365   

Class R4

$ 1,000.00    $ 1,018.00    $ 4.75    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class R5

$ 1,000.00    $ 1,020.10    $ 3.26    $ 1,000.00    $ 1,021.57    $ 3.26      0.65   181      365   

Class Y

$ 1,000.00    $ 1,020.30    $ 3.01    $ 1,000.00    $ 1,021.82    $ 3.01      0.60   181      365   

 

 

299

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Short Duration Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,010.70    $ 4.24    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class B

$ 1,000.00    $ 1,010.70    $ 4.24    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class C

$ 1,000.00    $ 1,007.00    $ 7.91    $ 1,000.00    $ 1,016.91    $ 7.95      1.59   181      365   

Class I

$ 1,000.00    $ 1,012.30    $ 2.64    $ 1,000.00    $ 1,022.17    $ 2.66      0.53   181      365   

Class R3

$ 1,000.00    $ 1,009.20    $ 5.73    $ 1,000.00    $ 1,019.09    $ 5.76      1.15   181      365   

Class R4

$ 1,000.00    $ 1,010.70    $ 4.24    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Class R5

$ 1,000.00    $ 1,012.20    $ 2.74    $ 1,000.00    $ 1,022.07    $ 2.76      0.55   181      365   

Class Y

$ 1,000.00    $ 1,012.50    $ 2.45    $ 1,000.00    $ 1,022.37    $ 2.46      0.49   181      365   

The Hartford Strategic Income Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,002.20    $ 4.72    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class B

$ 1,000.00    $ 999.60    $ 8.43    $ 1,000.00    $ 1,016.36    $ 8.50      1.70   181      365   

Class C

$ 1,000.00    $ 999.70    $ 8.43    $ 1,000.00    $ 1,016.36    $ 8.50      1.70   181      365   

Class I

$ 1,000.00    $ 1,003.50    $ 3.48    $ 1,000.00    $ 1,021.32    $ 3.51      0.70   181      365   

Class R3

$ 1,000.00    $ 1,000.90    $ 6.20    $ 1,000.00    $ 1,018.60    $ 6.26      1.25   181      365   

Class R4

$ 1,000.00    $ 1,002.30    $ 4.72    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class R5

$ 1,000.00    $ 1,003.80    $ 3.23    $ 1,000.00    $ 1,021.57    $ 3.26      0.65   181      365   

Class R6(1)

$ 1,000.00    $ 1,007.20    $ 2.84    $ 1,000.00    $ 1,020.73    $ 2.86      0.60   172      365   

Class Y

$ 1,000.00    $ 1,004.00    $ 2.98    $ 1,000.00    $ 1,021.82    $ 3.01      0.60   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

300

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Total Return Bond Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,013.30    $ 4.29    $ 1,000.00    $ 1,020.53    $ 4.31      0.86   181      365   

Class B

$ 1,000.00    $ 1,009.70    $ 8.07    $ 1,000.00    $ 1,016.76    $ 8.10      1.62   181      365   

Class C

$ 1,000.00    $ 1,010.70    $ 7.88    $ 1,000.00    $ 1,016.96    $ 7.90      1.58   181      365   

Class I

$ 1,000.00    $ 1,014.90    $ 2.80    $ 1,000.00    $ 1,022.02    $ 2.81      0.56   181      365   

Class R3

$ 1,000.00    $ 1,012.60    $ 5.79    $ 1,000.00    $ 1,019.04    $ 5.81      1.16   181      365   

Class R4

$ 1,000.00    $ 1,014.20    $ 4.20    $ 1,000.00    $ 1,020.63    $ 4.21      0.84   181      365   

Class R5

$ 1,000.00    $ 1,015.70    $ 2.70    $ 1,000.00    $ 1,022.12    $ 2.71      0.54   181      365   

Class R6(1)

$ 1,000.00    $ 1,015.60    $ 2.09    $ 1,000.00    $ 1,021.49    $ 2.10      0.44   172      365   

Class Y

$ 1,000.00    $ 1,016.20    $ 2.20    $ 1,000.00    $ 1,022.61    $ 2.21      0.44   181      365   

 

(1)  Commenced operations on November 7, 2014.

The Hartford Unconstrained Bond Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,000.50    $ 4.91    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

Class B

$ 1,000.00    $ 997.80    $ 8.62    $ 1,000.00    $ 1,016.17    $ 8.70      1.74   181      365   

Class C

$ 1,000.00    $ 997.80    $ 8.62    $ 1,000.00    $ 1,016.17    $ 8.70      1.74   181      365   

Class I

$ 1,000.00    $ 1,002.80    $ 3.67    $ 1,000.00    $ 1,021.13    $ 3.71      0.74   181      365   

Class R3

$ 1,000.00    $ 1,000.00    $ 6.40    $ 1,000.00    $ 1,018.40    $ 6.46      1.29   181      365   

Class R4

$ 1,000.00    $ 1,001.50    $ 4.91    $ 1,000.00    $ 1,019.89    $ 4.96      0.99   181      365   

Class R5

$ 1,000.00    $ 1,003.00    $ 3.43    $ 1,000.00    $ 1,021.37    $ 3.46      0.69   181      365   

Class Y

$ 1,000.00    $ 1,002.00    $ 3.43    $ 1,000.00    $ 1,021.37    $ 3.46      0.69   181      365   

 

 

301

 


Hartford Funds – Taxable Fixed Income Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford World Bond Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value
April 30,
2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$ 1,000.00    $ 1,005.50    $ 5.22    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class C

$ 1,000.00    $ 1,001.90    $ 8.69    $ 1,000.00    $ 1,016.12    $ 8.75      1.75   181      365   

Class I

$ 1,000.00    $ 1,006.70    $ 3.83    $ 1,000.00    $ 1,020.98    $ 3.86      0.77   181      365   

Class R3

$ 1,000.00    $ 1,003.90    $ 6.71    $ 1,000.00    $ 1,018.10    $ 6.76      1.35   181      365   

Class R4

$ 1,000.00    $ 1,004.60    $ 5.22    $ 1,000.00    $ 1,019.59    $ 5.26      1.05   181      365   

Class R5

$ 1,000.00    $ 1,006.80    $ 3.73    $ 1,000.00    $ 1,021.08    $ 3.76      0.75   181      365   

Class R6(1)

$ 1,000.00    $ 1,006.30    $ 3.03    $ 1,000.00    $ 1,020.55    $ 3.05      0.64   172      365   

Class Y

$ 1,000.00    $ 1,007.20    $ 3.28    $ 1,000.00    $ 1,021.52    $ 3.31      0.66   181      365   

 

(1)  Commenced operations on November 7, 2014.

 

 

302

 


Hartford Funds – Taxable Fixed Income Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: (Duration-Hedged Strategic Income Fund, Emerging Markets Local Debt Fund, High Yield Fund, Inflation Plus Fund, Quality Bond Fund, Short Duration Fund, Strategic Income Fund, Total Return Bond Fund, Unconstrained Bond Fund, World Bond Fund) Actively trading investments may result in higher costs and higher taxable income.

Derivatives Risk: (All funds except Floating Rate Fund) Investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

Fixed Income Risk: The Fund is subject to interest rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk (the risk that the issuing company of a security is unable to pay interest and principal when due) and call risk (the risk that an investment may be redeemed early).

Foreign Investment Risk: (Floating Rate Fund, High Yield Fund) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions.

Foreign Investment, Emerging Markets and Sovereign Debt Risk: (All funds except Quality Bond Fund) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets. Sovereign debt investments are subject to credit risk and the risk of default.

Fund of Funds Risk: (Duration-Hedged Strategic Income Fund) The Fund invests in a number of Underlying Funds, and is subject to the risks of the Underlying Funds in direct proportion to the amount of assets it invests in each Underlying Fund. The Underlying Funds may invest in the following: foreign securities including emerging markets, fixed income securities (which carry credit and interest rate risk) including junk bonds, small- and mid-cap stocks, mortgage and asset-backed securities, and derivatives.

Inflation Protected Securities Risk: (Emerging Markets Local Debt Fund, Inflation Plus Fund) The market for inflation protected securities may be less developed or liquid, and more volatile, than other securities markets.

Junk Bond Risk: (Duration-Hedged Strategic Income Fund, Emerging Markets Local Debt Fund, Floating Rate Fund, Floating Rate High Income Fund, High Yield Fund, Short Duration Fund, Strategic Income Fund, Unconstrained Bond Fund, World Bond Fund) Investments in junk bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Loan Risk: (Duration-Hedged Strategic Income Fund, Floating Rate Fund, Floating Rate High Fund, Income Short Duration Fund, Strategic Income Fund, Unconstrained Bond Fund) The Fund’s investments in loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency.

Market, Selection and Strategy Risk: The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Mortgage-Backed Securities Risk: (Duration-Hedged Strategic Income Fund, Inflation Plus Fund, Quality Bond Fund, Short Duration Fund, Strategic Income Fund, Total Return Bond Fund, Unconstrained Bond Fund, World Bond Fund) Mortgage-backed securities are subject to interest rate risk, credit risk, prepayment risk, extension risk, and the risk that an investment’s value may be reduced or become worthless if it receives interest or income payments only after other investments in the same pool.

Non-Diversified Risk: (Emerging Markets Local Debt Fund, Floating Rate High Income Fund, World Bond Fund) The Fund is non-diversified, so it may be more exposed to the risks associated with individual issuers than a diversified fund.

Reverse Repurchase Agreements and Dollar Rolls Risk: (Quality Bond Fund) Reverse repurchase agreements and dollar rolls involve the risk that the market value of the securities that the Fund is committed to buy may decline below the repurchase price. These investments may also subject the Fund to the risk that the counterparty will not fulfill its obligations.

To Be Announced (TBA) Securities Risk – (Duration-Hedged Strategic Income Fund, Quality Bond Fund, Strategic Income Fund, Total Return Bond Fund, Unconstrained Bond Fund) TBA securities involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation, which can adversely affect the Fund’s results.

The Hartford Floating Rate Fund and The Hartford Floating Rate High Income Fund should not be considered an alternative to CDs or money market funds. These Funds are for investors who are looking to complement their traditional fixed-income investments.

 

 

303

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-TF15    6/15    117963     Printed in U.S.A. hartfordfunds .com


LOGO


      
LOGO   

A MESSAGE FROM THE PRESIDENT

 

Dear Fellow Shareholders:

 

Thank you for investing in Hartford Funds.

 

Market Review

The now six-year-old bull market in equities continued through the six months ended April 30, 2015, the period of this report, after notching its sixth-consecutive calendar year of positive returns in 2014. From its financial-crisis low in March 2009, the S&P 500 Index1 has grown more than 200%. Returns have been modest so far in 2015, with the S&P 500 Index gaining just less than 2% through April, yet the Index generally managed to stay in positive territory during the period.

A stronger U.S. dollar, a result of divergent domestic and foreign central-bank policies, and cheaper oil, due to a supply glut unmatched by demand, were market drivers during the period.

In addition, central banks around the globe continue to play an important role in influencing investor and market movement.

On the domestic front, the U.S. Federal Reserve (Fed) ended its bond-buying quantitative-easing (QE) program in late 2014. Now, investor focus is centered on Fed meetings to determine the timeline for future rate hikes, which is dependent on the rate of economic growth, employment rates, and inflation expectations. Currently, rate increases are expected to take place in late 2015. When the Fed begins to raise rates, the shift is likely to be felt by fixed-income investors in particular, as bonds are generally more sensitive to shifting rates than equities.

Though QE ended in the U.S., it is still in use overseas. The Bank of Japan ramped up their existing QE program to stimulate growth by increasing the amount of purchases in their bond-buying program. The European Central Bank started its own program of bond purchases in early 2015 to lower borrowing costs in hopes of stimulating the sluggish economies in the Eurozone. In particular, Greece remains a source of concern as it tries to negotiate its debt repayment to satisfy its creditors.

As the second half of the year approaches, the continuing role of central banks and macroeconomic events in financial markets serves as an important reminder to maintain a strong relationship with a financial advisor who can help guide you through shifting markets with confidence. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of more than 45 mutual funds that were designed with you, and your investment goals, in mind.

Thank you again for investing with Hartford Funds.

 

LOGO

James Davey

President

Hartford Funds

 

1  The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.


Hartford Funds – Alternative Funds

Table of Contents

 

Fund Performance and Manager Discussions (Unaudited)

  2   

Financial Statements:

Schedules of Investments at April 30, 2015 (Unaudited):

The Hartford Global Alpha Fund

  16   

The Hartford Global Real Asset Fund

  31   

Hartford Long/Short Global Equity Fund

  44   

Hartford Real Total Return Fund

  52   

Statements of Assets and Liabilities at April 30, 2015 (Unaudited)

  68   

Statements of Operations for the Six-Month Period Ended April 30, 2015 (Unaudited)

  70   

Statements of Changes in Net Assets for the Six-Month Period Ended April  30, 2015 (Unaudited), and the Year Ended October 31, 2014

  72   

Notes to Financial Statements (Unaudited)

  74   

Financial Highlights (Unaudited)

  103   

Directors and Officers (Unaudited)

  106   

How to Obtain a Copy of the Funds’ Proxy Voting Policies and Voting Records (Unaudited)

  108   

Quarterly Portfolio Holdings Information (Unaudited)

  108   

Expense Examples (Unaudited)

  109   

Main Risks (Unaudited)

  111   

The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of the Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.


The Hartford Global Alpha Fund inception 12/14/2012

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide a positive total return that exceeds the return on 3-Month U.S. Treasury bills over the long-term (generally at least three years) regardless of market conditions.

 

LOGO

The chart above represents the hypotetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Global Alpha A3

     0.21%         -0.31%         -2.09%   

Global Alpha A4

     -5.30%         -5.80%         -4.40%   

Global Alpha C3

     -0.11%         -1.06%         -2.79%   

Global Alpha C4

     -1.11%         -2.05%         -2.79%   

Global Alpha I3

     0.31%         -0.10%         -1.83%   

Global Alpha R33

     0.00%         -0.84%         -2.48%   

Global Alpha R43

     0.11%         -0.52%         -2.22%   

Global Alpha R53

     0.32%         -0.21%         -1.92%   

Global Alpha Y3

     0.31%         -0.10%         -1.83%   

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index

     0.01%         0.02%         0.05%   

 

1  Not Annualized
2  Inception: 12/14/2012
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or

higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury bills publicly issued in the U.S. domestic markets with maturities of 90 days or less that assumes reinvestment of all income.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  2  

 


The Hartford Global Alpha Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Global Alpha Class A

     1.44%         1.44%   

Global Alpha Class C

     2.14%         2.14%   

Global Alpha Class I

     1.13%         1.13%   

Global Alpha Class R3

     1.83%         1.83%   

Global Alpha Class R4

     1.53%         1.53%   

Global Alpha Class R5

     1.23%         1.23%   

Global Alpha Class Y

     1.15%         1.15%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Robert L. Evans

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

Mark H. Sullivan, CFA

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

John Soukas

Senior Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Global Alpha Fund returned 0.21%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index, which returned 0.01% for the same period. The Fund underperformed the 1.41% average return of the Lipper Absolute Return Funds peer group, a group of funds which aim for positive returns in all market conditions. The funds in the Lipper Absolute Return Funds peer group are not benchmarked against a traditional long only market index but rather have the aim of outperforming a cash or risk-free benchmark.

Why did the Fund perform this way?

Over the period, global central banks maintained easy monetary policies with some resorting to radical measures to counter falling inflation and stimulate growth. The European Central Bank (ECB) launched an unprecedented open-ended government bond-buying program, which prompted other central banks to act to stop their currencies from appreciating. China’s central bank cut interest rates for the first time in two years. Meanwhile, the U.S. Federal Reserve (Fed) charted a course for policy normalization (i.e. bringing interest rates to historically normal levels) and the Bank of England debated the risk of deflation and whether the next interest rate move would be up or down.

The U.S. economy proved generally resilient over the period while growth in Europe, Japan, and China weakened. European data in particular disappointed, especially in core countries like Germany; however, there were signs of improvement later in the period. China continued to face conditions that may make future growth difficult, arising from weakening domestic demand and a slumping real estate sector. In Japan, Prime Minister Shinzo Abe postponed a proposed second sales tax increase after the first tax increase in April of 2014 pushed the country into recession during the third quarter of 2014. The U.S. economy’s positive growth trend remained in place at the beginning of the period before the harsh winter weather, West Coast port disruptions, and the effects of a stronger U.S. dollar all acted to slow activity in the first quarter of 2015. However, there was continued strength in the labor market with further declines in the unemployment rate. Annual consumer price inflation turned negative for the first time since 2009 mainly because of the steep fall in energy costs.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

 

 

 

  3  

 


The Hartford Global Alpha Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

Our quantitatively-oriented country positioning is primarily implemented through the use of exchange-traded government bond futures. Our currency and duration positioning is primarily implemented through the use of currency forward contracts and through the use of exchange-traded government bond futures and to a lesser extent, using over the counter derivative instruments including interest rate swaps. Our credit positioning is primarily implemented through the use of cash bonds and credit default swaps.

The Fund’s macro and credit strategies contributed positively to results over the period while quantitative strategies detracted. Within macro strategies, our duration strategies were primary contributors while our relative country and yield curve strategies were also modest contributors as well. Our overweight duration positions in front-end and intermediate U.K. interest rates, particularly in the fourth quarter of 2014, were positive contributors as weakening cycle data and weak inflation pushed out policy tightening expectations from the Bank of England (BoE). In addition, our tactical long positions in Australia held in the first quarter were beneficial, as the Chinese slowdown continued to push Australian yields lower. Within our macro yield curve strategies, U.S. curve steepeners (trades that seek to take advantage of a widening between short-term and long-term interest rates on a particular yield curve, resulting in a “steeper” curve, typically expressed through highly liquid derivatives instruments) aided results, particularly in April 2015 as the curve steepened driven by a rise in intermediate to longer-end yields. Within our quantitative strategies, our country relative value positions detracted from results. In particular, our long U.S. 10-year vs U.K. 10-year positions detracted as spreads widened driven by a strong sell off in U.K. yields. Helping to partially offset the this negative performance within quantitative were our long Emerging Markets duration positions within South Africa, Mexico and Poland as our models had identified various risk premium mispricings in these countries. Within credit, our modest positioning in investment grade and high yield credit aided performance as spreads generally tightened during the period, driven by investors’ continued search for yield and positive market technicals.

What is the outlook?

We expect that major developed market interest rates should be stable and anchored by Bank of Japan and ECB easing. We believe that, while more recent economic data in the U.S. has been weak, longer-term metrics point to upside in inflation and further employment gains that will likely prompt the Fed to begin a hiking cycle towards the end of 2015. We ended the period with a duration of -2.49 years. We held long duration positions in the U.K. and Australia with key short duration positions in the U.S. and Japan. In

country relative value strategies, our long positions were centered in the U.S. and U.K., while our short positions were in Australia and Canada. We continue to tactically manage exposure to credit, favoring U.S. names where there is a focus on deleveraging, and European financials where we expect to benefit from continued ECB liquidity.

 

 

 

4

 


The Hartford Global Real Asset Fund inception 05/28/2010

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide long-term total returns that outpace inflation over a macroeconomic cycle.

 

LOGO

The chart above represents the hypotetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Average Annual Total Returns (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Global Real Asset A3

     -3.40%         -11.07%         -0.40%   

Global Real Asset A4

     -8.71%         -15.96%         -1.54%   

Global Real Asset C3

     -3.81%         -11.73%         -1.14%   

Global Real Asset C4

     -4.78%         -12.61%         -1.14%   

Global Real Asset I3

     -3.35%         -10.85%         -0.16%   

Global Real Asset R33

     -3.54%         -11.26%         -0.63%   

Global Real Asset R43

     -3.39%         -10.96%         -0.35%   

Global Real Asset R53

     -3.35%         -10.84%         -0.12%   

Global Real Asset Y3

     -3.31%         -10.80%         -0.06%   

Barclays U.S. TIPS 1-10 Year Index

     0.60%         0.98%         2.86%   

Bloomberg Commodity Index Total Return

     -11.87%         -24.69%         -3.71%   

Global Real Asset Fund Blended Index

     -3.63%         -9.82%         1.97%   

MSCI All Country World Commodity Producers Index

     -5.17%         -13.91%         1.69%   

 

1  Not Annualized
2  Inception: 05/28/2010
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Barclays U.S. TIPS 1-10 Year 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 maturities of 1 to 10 years.

Bloomberg Commodity Index Total Return (formerly Dow Jones UBS Commodities Index) is composed of commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME).

Global Real Asset Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 55% MSCI All Country World Commodity Producers Index, 35% Barclays U.S. TIPS 1-10 Year Index and 10% Bloomberg Commodity Index Total Return.

MSCI All Country World Commodity Producers Index is a free float-adjusted market capitalization index that is designed to reflect the performance of listed commodity producers across three industry (or sub-industry) categories as defined by the Global Industry Classification Standard (GICS®): energy, metals and agriculture.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  5  

 


The Hartford Global Real Asset Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Global Real Asset Class A

     1.35%         1.58%   

Global Real Asset Class C

     2.10%         2.31%   

Global Real Asset Class I

     1.09%         1.21%   

Global Real Asset Class R3

     1.60%         1.93%   

Global Real Asset Class R4

     1.30%         1.55%   

Global Real Asset Class R5

     1.05%         1.26%   

Global Real Asset Class Y

     1.00%         1.15%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Consolidated Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Scott M. Elliott

Senior Managing Director and Asset Allocation Portfolio Manager

Wellington Management Company LLP

Brian M. Garvey

Senior Managing Director and Asset Allocation Portfolio Manager

Wellington Management Company LLP

Jay Bhutani

Managing Director and Natural Resources Portfolio Manager

Wellington Management Company LLP

David A. Chang, CFA

Senior Managing Director and Commodities Portfolio Manager

Wellington Management Company LLP

Lindsay T. Politi*

Managing Director and Fixed Income Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of The Hartford Global Real Asset Fund returned -3.40%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s custom benchmark (55% MSCI All Country World Commodity Producers Index, 35% Barclays U.S. TIPS 1-10 Year Index, and 10% Bloomberg Commodity Index Total Return), which returned -3.63% for the same period. The Fund underperformed the 2.18% average return of the Lipper Flexible Portfolio Funds peer group, a group of funds that allocate their investments across various asset classes, including domestic common stocks, bonds, and money market instruments, with a focus on total return. For the period, the MSCI All Country World Commodity Producers Index returned -5.17%, the Barclays U.S. TIPS 1-10 Year Index returned 0.60%, and the Bloomberg Commodity Index Total Return returned -11.87%.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014.

In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing

 

 

* Effective May 6, 2015, M.S. Politi is no longer a Portfolio Manager of the Fund.

 

 

  6  

 


The Hartford Global Real Asset Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts. Energy stocks continued to struggle as the weakened crude oil price environment persisted, coupled with a continued slowdown in commodities driven in part by decelerating economic momentum in China. Global natural resource equities broadly were weighed down by weak performance from both energy companies and metals and mining-related stocks.

Commodities returned -11.87% during the period as represented by Bloomberg Commodities Index. Precious Metals was the only one of the four commodity sectors to post positive returns. Energy, particularly natural gas and crude oil, Agriculture and Livestock, particularly coffee and lean hogs, and Industrial Metals Commodities, particularly nickel, posted negative returns during the period.

Treasury Inflation Protected Securities (TIPS) returned 0.60% during the period as represented by the Barclays U.S. TIPS 1-10 Year index. The TIPS curve flattened during the period; consequently, longer dated maturities outperformed shorter maturities, as rates fell across the curve and long-term inflation breakeven rates, which can be regarded as a proxy for the market’s inflation expectations, rose moderately.

The Fund has four primary levers to seek to generate investment performance: inflation-related equity investments, inflation-related fixed income investments, commodity investments, and asset allocation among stocks, bonds, commodities, and cash. The Fund’s outperformance as compared to its custom benchmark was driven primarily by asset allocation decisions. In addition, weak security selection within the Metals & Mining portion of the Fund detracted from relative results. Our out-of-benchmark allocations to inflation opportunities and inflation-sensitive infrastructure equities, along with an allocation to Precious Metals equities were additive. The team’s underweight allocation to Energy in aggregate also proved to be a sound investment decision. Security selection within Energy also added to performance relative to the custom benchmark, however, an underweight allocation to TIPS, and an out-of-benchmark allocation to emerging market inflation linked bonds detracted from results over the period.

The commodities portion of the Fund underperformed the Bloomberg Commodity Index primarily due to an overweight to the Energy sector and a significant underweight to agriculture and livestock. Security selection within all four sectors also detracted from performance relative to the Bloomberg Commodity Index, as did contract selection

within agriculture and livestock. This was partially offset by an overweight to precious metals and contract selection within energy. Commodities exposure is gained through derivatives, primarily total return swaps and futures.

What is the outlook?

As we look forward, the collapse in oil prices continues to feed through to headline consumer price index (CPI) and as anticipated, headline CPI moved negative on a year-on-year basis in January for the first time since late 2009. We expect headline CPI to find a bottom sometime in the second quarter of 2015, and believe the markets are already starting to anticipate a normalization back towards a 2–3% level by late 2015 or early 2016. U.S. breakeven inflation rates, which can be regarded as a proxy for the market’s inflation expectations, appear to have bottomed in January and have started moving higher. Core inflation has remained resilient, supported by housing and services. Another factor supporting breakeven inflation rates and core inflation has been wage pressures where the employment cost index (ECI) is now running above 2% with leading indicators pointing higher.

A positive byproduct of the sell-off within energy is the cost savings to consumers globally. As we have highlighted previously, lower oil prices can function like a tax cut to consumers, providing a boost to global growth. In addition, low to negative inflation levels and the desire to avoid deflation has led to increased central bank liquidity in Europe, Japan and China. We believe this should help counter the declining inflation trend and act positively in favor of inflation sensitive assets. Against this backdrop, we continue to believe that inflation sensitive assets remain an attractively priced hedge against future inflationary pressures. We believe that natural resource related equities and commodities remain at attractive valuation levels across a variety of metrics. We consider these assets to be some of the cheapest assets available in capital markets and we will be looking to opportunistically add to favored assets.

 

 

 

7

 


Hartford Long/Short Global Equity Fund inception 08/29/2014

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks to provide long-term capital appreciation

 

LOGO

The chart above represents the hypotetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Cumulative Returns (as of 4/30/15)

 

      6 Months1      Since
Inception2
 

Long/Short Global Equity A3

     7.69%         5.43%   

Long/Short Global Equity A4

     1.77%         -3.12%   

Long/Short Global Equity C3

     7.28%         4.67%   

Long/Short Global Equity C4

     6.28%         3.16%   

Long/Short Global Equity I3

     7.80%         5.59%   

Long/Short Global Equity Y3

     7.90%         5.74%   

Hedge Fund Research, Inc. Equity Hedge Index

     3.76%         3.49%   

MSCI All Country World Index

     5.24%         2.61%   

 

1  Not Annualized
2  Inception: 08/29/2014. Cumulative returns not annualized.
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Hedge Fund Research, Inc. Equity Hedge Index is an unmanaged index of accounts that maintain positions both long and short in primarily equity and equity derivative securities.

MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 23 emerging markets countries.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  8  

 


Hartford Long/Short Global Equity Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Long/Short Global Equity Class A

     3.02%         3.32%   

Long/Short Global Equity Class C

     3.77%         4.07%   

Long/Short Global Equity Class I

     2.77%         3.08%   

Long/Short Global Equity Class Y

     2.62%         3.08%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Please see accompanying Financial Highlights for expense ratios for the six-month period ended April 30, 2015.

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Kenneth L. Abrams

Senior Managing Director and Equity Portfolio Manager

Wellington Management Company LLP

Donald S. Tunnell

Senior Managing Director, Co-Director of Quantitative Investments, Direct of Quantitative Research and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Long/Short Global Equity Fund returned 7.69%, before sales charge, for the six-month period ended April 30, 2015, outperforming the Fund’s benchmark, the MSCI All Country World Index, which returned 5.24% for the same period. The Fund outperformed the Hedge Fund Research, Inc. Equity Hedge Index, which returned 3.76% for the same period. The Fund also outperformed the 2.25% average return of the Lipper Alternative Long Short Global Equity funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future in the European Union. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the

European Central Bank announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S. Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Eight of the ten sectors in the MSCI All Country World Index rose during the period. Consumer Discretionary (+12%), Healthcare (+9%), and Information Technology (+8%) rose the most while returns in Energy (-5%), Utilities (-2%), and Telecommunication Services (+4%), lagged on a relative basis.

There are two main drivers of Fund performance: whether stocks in the long portion of the portfolio generate positive returns and whether stocks in the short portion of the portfolio generate negative returns.

The Fund had a positive absolute return and outperformed the MSCI All Country World Index during the period. Global equity markets rose led by small-cap stocks, which created a beneficial market environment for the Fund. The combination of positive market returns and strong stock selection in the long and short portions of the Fund drove performance.

In the long portion of the Fund, on an absolute basis, performance was strongest within Industrials, Consumer Discretionary, and

 

 

 

  9  

 


Hartford Long/Short Global Equity Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

Healthcare. On a country basis, absolute performance was strongest within the United States, United Kingdom, and Japan. Qantas Airways (Industrials) and Abengoa (Industrials) were the top absolute contributor and detractor, respectively, to the long portfolio. Qantas Airways, an Australia based airline company, saw shares rise following a successful cost-cutting program, a reduction in the oil price, and gradual improvement in passenger numbers. Additionally, the company announced strong 6-month earnings results in February further pushing the stock higher. Abengoa, a company domiciled in Spain that applies technology solutions for sustainable development in the energy and environment sectors, saw shares fall following the announcement that the company had signed a 1.4 billion revolving loan in order to lower its cost of financing and extend its maturity profile.

The short portion of the Fund detracted slightly from absolute performance as an upward trending market environment had an adverse impact on this portion of the portfolio. Short positions detracted the most from absolute returns in the Financials and Consumer Discretionary sectors; however, this was partially offset by short positions in Energy, which contributed to performance as the sector as a whole suffered with the decline in oil prices. On a country basis, short positions in Europe, particularly Switzerland, Germany, and the United Kingdom detracted from absolute returns while short positions in the United States, Argentina, and Brazil contributed to absolute returns.

Derivatives were not used in a significant manner in this Fund during the period and did not have a material impact on performance during the period.

What is the outlook?

We expect the global economy to gradually work its way free of the cycle of currency weakness, falling commodity prices, and deflationary fears. We believe growth should begin to accelerate globally in late 2015. On the long side, our bottom-up process is driven by fundamental research at the company level and supported by our quantitative and macro analytic tools. On the short side, we utilize a quantitative model and optimization process to build a short portfolio of securities that we believe are more likely to underperform the MSCI All Country World Index over time, while maintaining the intended profile of the Fund.

At the end of the period, our largest sector exposures were to Consumer Discretionary, Financials and Healthcare, while Consumer Staples, Utilities and Telecommunication Services were the smallest portfolio exposures. On a regional basis North America and Europe represented the largest net region exposures. Net long equity exposure was at 57% for the period.

 

 

 

10

 


Hartford Real Total Return Fund inception 11/29/2013

 

(sub-advised by Wellington Management Company LLP)   Investment objective – The Fund seeks long-term real total return.

 

LOGO

The chart above represents the hypotetical growth of a $10,000 investment in Class A, which includes a sales charge. Growth results in classes other than Class A will vary from what is seen above due to differences in the expenses charged to those share classes.

 

Cumulative Returns (as of 4/30/15)

 

      6 Months1      1 Year      Since
Inception2
 

Real Total Return A3

     4.04%         0.36%         3.63%   

Real Total Return A4

     -1.68%         -5.16%         -0.43%   

Real Total Return C3

     3.76%         -0.31%         2.93%   

Real Total Return C4

     2.76%         -1.27%         2.93%   

Real Total Return I3

     4.12%         0.65%         3.98%   

Real Total Return R33

     3.85%         -0.02%         3.28%   

Real Total Return R43

     4.04%         0.27%         3.56%   

Real Total Return R53

     4.23%         0.66%         3.91%   

Real Total Return Y3

     4.23%         0.75%         3.98%   

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index

     0.01%         0.02%         0.04%   

Consumer Price Index + 5%

     2.15%         4.80%         6.51%   

 

1  Not Annualized
2  Inception: 11/29/2013
3  Without sales charge
4  With sales charge

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.

The initial investment in Class A shares reflects the maximum sales charge of 5.50% and returns for Class C shares reflect a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase.

Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on April 30, 2015, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.

Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury bills publicly issued in the U.S. domestic markets with maturities of 90 days or less that assumes reinvestment of all income.

Consumer Price Index (CPI) + 5% is a custom benchmark created by adding 5% to the annual percentage change in the CPI. The CPI is an unmanaged index representing the rate of inflation of U.S. consumer prices as determined by the U.S. Bureau of Labor Statistics. The Fund measures its performance against its secondary performance benchmark, the Consumer Price Index +5%, over a full market cycle, which typically lasts several years. At certain periods during a market cycle, the Fund’s performance may not be in line with that of the secondary performance benchmark and there can be no assurance the CPI or any other index will reflect the exact level of inflation at any given time.

You cannot invest directly in an index.

The chart and table do not reflect the deductions 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.

 

 

 

  11  

 


Hartford Real Total Return Fund

Manager Discussion

April 30, 2015 (Unaudited)

 

 

 

Operating Expenses*

 

      Net      Gross  

Real Total Return Class A

     1.72%         1.72%   

Real Total Return Class C

     2.43%         2.43%   

Real Total Return Class I

     1.41%         1.41%   

Real Total Return Class R3

     2.02%         2.07%   

Real Total Return Class R4

     1.72%         1.77%   

Real Total Return Class R5

     1.42%         1.47%   

Real Total Return Class Y

     1.32%         1.37%   

 

* As shown in the Fund’s current prospectus dated March 1, 2015. Actual expenses may be higher or lower. Expenses shown include expenses of the Underlying Funds. Please see accompanying Financial Highlights for expense ratios for the six-months period ended April 30, 2015.

 

Gross expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus. Net expenses are the Fund’s total annual operating expenses shown in the Fund’s most recent prospectus and reflect contractual expense reimbursements in instances when these reductions reduce the Fund’s gross expenses. Contractual reimbursements remain in effect until February 29, 2016, and automatically renew for one-year terms unless terminated.

All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see the Main Risks section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.

 

 

 

Richard A. Wurster, CFA CMT

Managing Director and Asset Allocation Portfolio Manager

Wellington Management Company LLP

Stephen A. Gorman, CFA

Senior Managing Director, Director, Tactical Asset Allocation, Asset Allocation Strategies Group and Portfolio Manager

Wellington Management Company LLP

 

 

 

How did the Fund perform?

The Class A shares of the Hartford Real Total Return Fund returned 4.04%, before sales charge, for the six-month period ending April 30, 2015, outperforming the Fund’s benchmark, the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index, which returned 0.01% for the same period. The Fund also outperformed the 1.41% average return of the Lipper Absolute Return Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

The rally in stocks continued as global equities rose for the period. However, there were many negative headlines causing investors to be uneasy: Ebola fears escalated, Japan’s recession deepened, Europe’s economy remained near stall speed, oil prices plunged, Chinese and Japanese manufacturing data disappointed, and questions again arose around Greece’s future. Despite the negative headlines, early in the period, the U.S. economy was a bright spot in the global landscape after the economy grew at its fastest pace in more than a decade during the third quarter of 2014. In the second half of the period Europe showed strength due to accommodative monetary policy and encouraging economic data, including positive trends in manufacturing, exports, and economic sentiment. Accommodative global monetary policy continued to be a central theme. The Bank of Japan expanded its quantitative easing policy, the People’s Bank of China surprised markets with its first rate cut in two years, and the European Central Bank (ECB) announced a 1.14 trillion open-ended sovereign quantitative easing program to combat record-low inflation and stimulate growth in Europe. Despite continued uncertainty surrounding the timing of a rate rise by the U.S.

Federal Reserve (Fed), many market participants viewed Fed Chair Yellen’s testimony before the Senate Banking Committee in an accommodative light. During the period, U.S. equities underperformed non-U.S. equities and emerging market equities underperformed their developed market counterparts.

Global government bond prices gained over the period as subpar growth and deflationary pressures kept central banks in easing mode. European government bond yields hit record lows with many moving to negative yields due to the ECB’s monetary stimulus. In the U.S., yields largely declined amid expectations that the Fed will take its time in raising interest rates. Longer-term Treasury yields declined the most, resulting in a flattening of the yield curve.

Absolute returns in the major fixed income sectors were mixed as the decline in government bond yields was not enough to offset the credit-spread widening in certain sectors such as high yield and emerging markets.

Commodities returned -11.87% during the period as represented by Bloomberg Commodities Index. Precious metals was the only one of the four commodity sectors to post positive returns. Energy, particularly natural gas and crude oil, agriculture and livestock, particularly coffee and lean hogs, and industrial metals commodities, particularly nickel, posted negative returns during the period.

TIPS returned 0.60% during the period as represented by the Barclays U.S. TIPS 1-10 Year index. The TIPS curve flattened during the period; consequently, longer dated maturities outperformed

 

 

 

  12  

 


Hartford Real Total Return Fund

Manager Discussion – (continued)

April 30, 2015 (Unaudited)

 

 

 

shorter maturities, as rates fell across the curve and long-term breakeven inflation rates, which can be regarded as a proxy for the market’s inflation expectations, rose moderately.

Positions within both the portfolio’s market exposure and active manager allocations contributed to outperformance relative to the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index during the period. Risk management positions modestly detracted. Within the market exposure allocation, primary contributors included currency positioning implemented via currency forwards and U.S. TIPS exposure. Among currencies, long exposure to the U.S. dollar relative to the Japanese yen, Brazilian real, and Euro drove positive results. Our holdings of global government bonds, particularly exposure to Greek government bonds, detracted during the period. Equity exposure also detracted during the period as did a position in a broad commodities Exchange-Traded Fund (ETF). While broad exposure to European equities via futures contributed, this was offset by negative contributions from short exposure to U.S. equities implemented via futures and select Greek equity stocks. The equity and multi-asset strategies used by the Fund contributed to performance, while fixed income and currency detracted. Within the Fund’s equity strategies, allocations to Japanese and domestic equities contributed, driven primarily by strong security selection. Multi-asset strategies also benefitted broadly from exposure to equity markets and participation in the new issue market. Within fixed income and currency, long exposure to the Canadian dollar and Australian dollar detracted as did short exposure to U.K. and Australian government bonds. These strategies are implemented using futures and currency forwards.

As described above, derivatives are integral to the management of the Fund and had an impact on performance within both the market exposures and active manager allocations.

What is the outlook?

We maintain a bias towards economically sensitive securities heading into the second half of 2015. At the end of the period we continued to have meaningful equity exposure with a bias to developed market equities particularly in Europe. Additionally, we continued to have exposure to inflation linked bonds in both the U.S. and emerging markets. While the Fund is positioned more defensively than it was earlier in the year, we will continue to monitor the changes in economic trends and valuations globally across assets and seek to position the Fund accordingly.

 

 

 

13

 


The Hartford Global Alpha Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     49.2

Aa/AA

     6.8   

A

     0.7   

Baa/BBB

     6.0   

Ba/BB

     4.6   

B

     1.1   

Caa/CCC or Lower

     0.4   

Not Rated

     4.6   

Non-Debt Securities and Other Short-Term Instruments

     24.1   

Other Assets & Liabilities

     2.5   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Fixed Income Securities

  

Asset & Commercial Mortgage Backed Securities

     4.7

Corporate Bonds

     9.0   

Foreign Government Obligations

     17.1   

U.S. Government Agencies

     4.0   

U.S. Government Securities

     38.6   
  

 

 

 

Total

     73.4
  

 

 

 

Short-Term Investments

     23.9   

Purchased Options

     0.2   

Other Assets & Liabilities

     2.5   
  

 

 

 

Total

     100.0
  

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

14

 


The Hartford Global Alpha Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 4.7%  
            Asset-Backed - Finance & Insurance - 3.0%  
   

Dryden Senior Loan Fund

 
  $        250,000     

1.76%, 07/15/2026 (1)(2)

  $ 250,200   
   

Magnetite CLO Ltd.

 
    250,000     

1.70%, 07/25/2026 (1)(2)

    249,550   
   

OZLM Funding Ltd.

 
    250,000     

1.82%, 04/17/2026 (1)(2)

    250,100   
     

 

 

 
        749,850   
     

 

 

 
            Commercial Mortgage-Backed Securities - 1.2%  
   

GS Mortgage Securities Trust

 
    20,000     

3.58%, 06/10/2047

    14,854   
   

JP Morgan Chase Commercial Mortgage Securities Corp.

 
    115,000     

4.57%, 12/15/2047 (1)(2)

    105,756   
   

JP Morgan Chase Commercial Mortgage Securities Trust

 
    100,000     

2.75%, 10/15/2045 (1)(2)

    80,251   
   

Morgan Stanley Capital I Trust

 
    25,000     

5.36%, 07/15/2049 (1)(2)

    22,908   
   

UBS-Barclays Commercial Mortgage Trust

 
    50,000     

4.23%, 03/10/2046 (1)(2)

    42,321   
   

WF-RBS Commercial Mortgage Trust

 
    70,000     

3.02%, 11/15/2047 (1)

    49,786   
     

 

 

 
        315,876   
     

 

 

 
   

Whole Loan Collateral CMO - 0.5%

  

   

CHL Mortgage Pass-Through Trust

 
    20,593     

6.25%, 09/25/2036

    19,746   
   

Countrywide Alternative Loan Trust

 
    12,242     

0.37%, 09/25/2046 (2)

    10,396   
    15,979     

0.50%, 11/25/2035 (2)

    13,088   
    24,788     

6.50%, 09/25/2036

    22,318   
   

GMAC Mortgage Corp. Loan Trust

 
    28,857     

2.94%, 09/19/2035 (2)

    26,939   
   

WaMu Mortgage Pass-Through Certificates Series Trust

 
    25     

1.78%, 01/25/2037 (2)

    21   
    28,039     

2.20%, 09/25/2046 (2)

    25,566   
   

Wells Fargo Mortgage Backed Securities Trust

 
    9,409     

2.49%, 10/25/2036 (2)

    8,758   
     

 

 

 
        126,832   
     

 

 

 
   

Total Asset & Commercial Mortgage Backed Securities
(cost $1,151,367)

  $ 1,192,558   
     

 

 

 
CORPORATE BONDS - 9.0%      
            Auto Manufacturers - 1.4%      
   

Banque PSA Finance S.A.

 
  EUR        100,000     

4.00%, 06/24/2015 (3)

  $ 112,819   
   

CNH Industrial Finance Europe S.A.

 
    100,000     

2.75%, 03/18/2019 (3)

    114,356   
   

Ford Motor Credit Co. LLC

 
  $        125,000     

5.63%, 09/15/2015

    127,164   
     

 

 

 
        354,339   
     

 

 

 
            Auto Parts & Equipment - 0.5%      
   

Conti-Gummi Finance B.V.

 
  EUR        100,000     

2.50%, 03/20/2017 (3)

    116,761   
     

 

 

 
            Commercial Banks - 3.1%      
   

Bank of America Corp.

 
    50,000     

0.74%, 05/23/2017 (2)

    55,946   

Shares or Principal Amount

 

Market Value *

 
CORPORATE BONDS - 9.0% - (continued)      
            Commercial Banks - 3.1% - (continued)      
   

Barclays Bank plc

 
  $        210,000     

4.38%, 09/11/2024

  $ 209,708   
   

CIT Group, Inc.

 
    20,000     

5.25%, 03/15/2018

    20,730   
   

HSBC Bank plc

 
  EUR        50,000     

0.32%, 09/30/2020 (2)

    55,862   
   

Morgan Stanley

 
  $        30,000     

3.88%, 04/29/2024

    31,058   
   

Nykredit Realkredit A/S

 
  DKK        1,450,000     

1.50%, 10/01/2037

    211,306   
   

Royal Bank of Scotland Group plc

 
  $        115,000     

6.00%, 12/19/2023

    125,953   
    50,000     

9.50%, 03/16/2022 (3)

    56,123   
     

 

 

 
      766,686   
     

 

 

 
            Commercial Services - 0.4%  
   

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.

 
    75,000     

5.25%, 03/15/2025 (1)

    74,250   
   

United Rentals North America, Inc.

 
    35,000     

4.63%, 07/15/2023

    35,481   
     

 

 

 
      109,731   
     

 

 

 
            Diversified Financial Services - 0.7%  
   

Ally Financial, Inc.

 
    25,000     

3.25%, 02/13/2018

    24,969   
    50,000     

3.75%, 11/18/2019

    49,730   
    25,000     

4.13%, 02/13/2022

    24,500   
    40,000     

5.13%, 09/30/2024

    41,500   
   

International Lease Finance Corp.

 
    25,000     

6.25%, 05/15/2019

    27,625   
     

 

 

 
      168,324   
     

 

 

 
            Electric - 0.3%  
   

American Electric Power Co., Inc.

 
    25,000     

1.65%, 12/15/2017

    25,143   
    50,000     

2.95%, 12/15/2022

    50,179   
     

 

 

 
      75,322   
     

 

 

 
            Healthcare-Services - 0.3%  
   

Fresenius Medical Care U.S. Finance II, Inc.

 
    70,000     

5.63%, 07/31/2019 (1)

    76,475   
     

 

 

 
     
            Home Builders - 0.1%  
   

MDC Holdings, Inc.

 
    30,000     

5.50%, 01/15/2024

    29,850   
     

 

 

 
     
            Household Products/Wares - 0.3%  
   

Spectrum Brands, Inc.

 
    60,000     

6.38%, 11/15/2020

    63,600   
     

 

 

 
     
            Insurance - 0.3%  
   

American International Group, Inc.

 
  GBP        50,000     

5.75%, 03/15/2067 (2)

    80,118   
     

 

 

 
     
            Machinery-Diversified - 0.3%  
   

CNH Industrial Capital LLC

 
  $        75,000     

3.63%, 04/15/2018

    75,187   
     

 

 

 
     
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  15  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
CORPORATE BONDS - 9.0% - (continued)      
            Media - 0.2%  
   

Time Warner Cable, Inc.

 
  $ 10,000     

8.25%, 04/01/2019

  $ 11,683   
    40,000     

8.75%, 02/14/2019

    47,218   
     

 

 

 
      58,901   
     

 

 

 
            Pharmaceuticals - 0.1%  
   

AbbVie, Inc.

 
    25,000     

1.75%, 11/06/2017

    25,130   
     

 

 

 
     
            Software - 0.2%  
   

First Data Corp.

 
    35,000     

7.38%, 06/15/2019 (1)

    36,356   
    20,000     

8.25%, 01/15/2021 (1)

    21,206   
     

 

 

 
      57,562   
     

 

 

 
            Telecommunications - 0.8%  
   

Deutsche Telekom International Finance B.V.

 
    175,000     

5.75%, 03/23/2016

    182,472   
   

Verizon Communications, Inc.

 
    27,000     

5.01%, 08/21/2054

    26,661   
     

 

 

 
        209,133   
     

 

 

 
   

Total Corporate Bonds
(cost $2,326,686)

    2,267,119   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 17.1%  
            Canada - 3.5%  
   

Canada Housing Trust

 
  CAD        820,000     

3.15%, 06/15/2015

    681,541   
   

City of Toronto Canada

 
    250,000     

4.55%, 05/20/2015

    207,557   
     

 

 

 
        889,098   
     

 

 

 
            Cyprus - 0.2%  
   

Cyprus Government International Bond

 
  EUR        48,000     

4.75%, 06/25/2019 (3)

    56,861   
     

 

 

 
            Italy - 4.0%  
   

Italy Buoni Ordinari del Tesoro BOT

 
    88,000     

0.00%, 08/14/2015

    98,808   
    89,000     

0.00%, 08/14/2015

    99,930   
    88,000     

0.01%, 08/14/2015

    98,808   
   

Italy Buoni Poliennali del Tesoro

 
    250,000     

3.75%, 08/01/2015

    283,241   
   

Italy Certificati di Credito del Tesoro

 
    280,000     

0.01%, 06/30/2015

    314,395   
   

Italy Government International Bond

 
  JPY        12,000,000     

4.50%, 06/08/2015 (3)

    100,833   
     

 

 

 
        996,015   
     

 

 

 
            Japan - 2.3%  
   

Japan Treasury Discount Bill

 
    20,000,000     

0.01%, 06/22/2015

    167,504   
    40,000,000     

0.01%, 06/08/2015

    335,009   
    10,000,000     

0.20%, 06/15/2015

    83,772   
     

 

 

 
        586,285   
     

 

 

 
            Spain - 1.1%  
   

Spain Letras del Tesoro

 
  EUR        250,000     

0.01%, 07/17/2015

    280,709   
     

 

 

 

Shares or Principal Amount

 

Market Value *

 
FOREIGN GOVERNMENT OBLIGATIONS - 17.1% - (continued)  
            United Kingdom - 6.0%  
   

United Kingdom Gilt

 
  GBP        640,000     

2.00%, 07/22/2020 (3)

  $ 1,013,293   
    265,000     

3.50%, 01/22/2045 (3)

    488,696   
     

 

 

 
        1,501,989   
     

 

 

 
   

Total Foreign Government Obligations
(cost $4,206,058)

    4,310,957   
     

 

 

 
U.S. GOVERNMENT AGENCIES - 4.0%  
            FHLB - 2.0%  
   

FHLB

 
  $        500,000     

0.09%, 08/25/2015

    499,912   
     

 

 

 
            FNMA - 2.0%  
   

FNMA

 
   

0.50%, 07/02/2015

 
    500,000          500,349   
     

 

 

 
   

Total U.S. Government Agencies
(cost $1,000,309)

  $ 1,000,261   
     

 

 

 
U.S. GOVERNMENT SECURITIES - 38.6%  
            U.S. Treasury Securities - 38.6%  
            U.S. Treasury Notes - 38.6%  
  $        85,000     

0.25%, 05/15/2015

  $ 85,007   
    750,000     

0.25%, 05/31/2015

    750,058   
    1,000,000     

0.38%, 06/15/2015 (4)

    1,000,391   
    740,000     

0.38%, 06/30/2015

    740,405   
    4,150,000     

1.75%, 07/31/2015 (4)

    4,167,185   
    1,770,000     

1.88%, 06/30/2015

    1,775,255   
    1,195,000     

4.13%, 05/15/2015 (4)

    1,196,867   
     

 

 

 
        9,715,168   
     

 

 

 
   

Total U.S. Government Securities
(cost $9,715,962)

  $ 9,715,168   
     

 

 

 
   

Total Long-Term Investments
(cost $18,400,382)

  $ 18,486,063   
     

 

 

 
SHORT-TERM INVESTMENTS - 23.9%  
            Commercial Paper - 3.0%  
   

CBS Corp.

 
    250,000     

0.38%, 05/13/2015 (5)

  $ 249,967   
   

Nissan Motors Acceptance

 
    250,000     

0.01%, 05/26/2015 (5)

    249,943   
   

Philip Morris International

 
    250,000     

0.12%, 06/01/2015 (5)

    249,974   
     

 

 

 
        749,884   
     

 

 

 
            Discount Notes - 4.0%  
   

FHLB

 
    250,000     

0.08%, 07/24/2015 (5)

    249,971   
    500,000     

0.09%, 06/19/2015 (5)

    499,942   
    255,000     

0.09%, 07/08/2015 (5)

    254,976   
     

 

 

 
        1,004,889   
     

 

 

 
            Foreign Government Obligations - 5.3%  
   

Ontario T-Bill

 
  CAD        640,000     

0.63%, 05/13/2015

    530,341   
    350,000     

0.69%, 07/08/2015

    289,698   
   

Province of British Columbia

 
    325,000     

0.63%, 06/29/2015

    269,094   
    295,000     

0.69%, 06/22/2015

    244,265   
     

 

 

 
        1,333,398   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

16

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
SHORT-TERM INVESTMENTS - 23.9% - (continued)  
          Other Investment Pools & Funds - 3.7%  
    917,912     

BlackRock Liquidity Funds TempFund Portfolio

  $ 917,912   
     

 

 

 
          U.S. Treasury - 7.9%  
   

U.S. Treasury Bills

 
    2,000,000     

0.03%, 06/25/2015 (5)

    1,999,908   
     

 

 

 
   

Total Short-Term Investments
(cost $5,954,053)

    6,005,991   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $24,354,435)

    97.3   $ 24,492,054   
   

Total Purchased Options
(cost $70,563)

    0.2     61,429   
     

 

 

   

 

 

 
   

Total Investments
(cost $24,424,998)^

    97.5   $ 24,553,483   
   

Other Assets and Liabilities

    2.5     625,916   
     

 

 

   

 

 

 
   

Total Net Assets

    100.0   $     25,179,399   
     

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

17

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $24,426,868 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     255,108   

Unrealized Depreciation

     (128,493
  

 

 

 

Net Unrealized Appreciation

   $ 126,615   
  

 

 

 

 

(1)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $1,259,159, which represents 5.0% of total net assets.

 

(2)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(3)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $2,059,742, which represents 8.2% of total net assets.

 

(4)  This security, or a portion of this security, has been pledged as collateral in connection with OTC swap contracts

 

(5)  The interest rate disclosed for these holdings are the effective yield on the date of the acquisition.

 

The accompanying notes are an integral part of these financial statements.

 

 

18

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
   Exercise Price/FX
Rate/ Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                   

Calls

                   

EUR Call/USD Put

  GSC      1.21 EUR per USD         03/08/16       EUR      305,000      $ 3,708      $ 2,345      $ 1,363   

USD Call/CHF Put

  CBK      1.10 USD per CHF         07/02/15       USD      36,000        424        4,788        (4,364

USD Call/CNY Put

  JPM      6.30 USD per CNY         06/15/15       USD      290,000        53        1,409        (1,356

USD Call/CNY Put

  JPM      6.30 USD per CNY         06/15/15       USD      290,000        53        1,283        (1,230

USD Call/KRW Put

  GSC      1,200.00 USD per KRW         09/08/15       USD      23,000        1,078        5,048        (3,970

USD Call/SGD Put

  GSC      1.35 USD per SGD         06/08/15       USD      18,000        3,252        5,220        (1,968

USD Call/SGD Put

  GSC      1.43 USD per SGD         04/07/16       USD      25,000        2,935        5,000        (2,065
             

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

                987,000      $ 11,503      $ 25,093      $ (13,590
             

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                   

AUD Put/CAD Call

  BOA      0.89 AUD per CAD         09/11/15       AUD      30,000      $ 2,494      $ 5,230      $ (2,736

AUD Put/NZD Call

  JPM      1.00 AUD per NZD         03/10/16       AUD      265,000        2,130        2,592        (462

AUD Put/NZD Call

  GSC      1.01 AUD per NZD         03/10/16       AUD      519,000        5,674        5,526        148   

AUD Put/USD Call

  GSC      0.75 AUD per USD         12/10/15       AUD      30,891        6,070        4,806        1,264   

AUD Put/USD Call

  JPM      0.78 AUD per USD         01/28/16       AUD      245,000        7,491        6,240        1,251   

AUD Put/USD Call

  GSC      0.67 AUD per USD         03/31/16       AUD      189,999        1,421        2,497        (1,076

AUD Put/USD Call

  JPM      0.67 AUD per USD         03/31/16       AUD      190,001        1,421        2,475        (1,054

EUR Put/SEK Call

  JPM      8.95 EUR per SEK         12/22/15       EUR      230,000        2,184        3,556        (1,372

EUR Put/TRY Call

  DEUT      2.57 EUR per TRY         06/16/15       EUR      165,000        5        343        (338

GBP Put/USD Call

  JPM      1.50 GBP per USD         07/01/15       GBP      26,000        9,852        5,186              4,666   
             

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                1,890,891      $     38,742      $     38,451      $ 291   
             

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

                2,877,891      $ 50,245      $ 63,544      $ (13,299
             

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                   

AUD Put/NZD Call

  GSC      0.98 AUD per NZD         03/10/16       AUD      (519,000   $ (3,025   $ (2,917   $ (108

AUD Put/USD Call

  JPM      0.74 AUD per USD         01/28/16       AUD      (245,000     (4,066     (3,281     (785

EUR Put/SEK Call

  JPM      8.55 EUR per SEK         12/22/15       EUR      (230,000     (514     (1,069     555   
             

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

                (994,000   $ (7,605   $ (7,267   $ (338
             

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

                (994,000   $ (7,605   $ (7,267   $ (338
             

 

 

   

 

 

   

 

 

   

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015  

Description

  Counter-
party
   Exercise Price/
FX Rate/ Rate
    Expiration
Date
     Number of
Contracts
     Market
Value *
     Premiums
Paid by
Fund
     Unrealized
Appreciation/

(Depreciation)
 

Purchased swaption contracts:

  

                

Puts

                     

Credit Default Swaption CDX.NA.IG.24

  DEUT      68.00     05/20/15       USD      185,000       $ 135         158       $ 23   

Credit Default Swaption CDX.NA.IG.24

  DEUT      68.00     05/20/15       USD      190,000         138         180         42   

Interest Rate Swaption EUR

  GSC      0.87     10/21/15       EUR      75,000         6,595         2,766         3,829   

Interest Rate Swaption USD

  DEUT      2.90     10/02/15       USD      110,000         2,100         1,848         252   

Interest Rate Swaption USD

  GSC      2.92     10/06/15       USD      120,000       $ 2,216         2,067         149   
            

 

 

    

 

 

    

 

 

    

 

 

 

Total Puts

               680,000       $ 11,184       $ 7,019       $ 4,165   
            

 

 

    

 

 

    

 

 

    

 

 

 

Total purchased swaption contracts

               680,000       $     11,184       $     7,019       $     4,165   
            

 

 

    

 

 

    

 

 

    

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

19

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

OTC Swaption Contracts Outstanding at April 30, 2015 - (continued)  

Description

  Counter-
party
    Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/

(Depreciation)

 

Written swaption contracts:

  

              

Calls

                    

Credit Default Swaption CDX.NA.IG.24

    DEUT        58.00     USD         05/20/15         USD         (190,000   $ (18   $ (86   $ 68   

Credit Default Swaption CDX.NA.IG.24

    DEUT        58.00     USD         05/20/15         USD         (185,000     (17     (102     85   

Interest Rate Swaption USD

    DEUT        1.90     USD         10/02/15         USD         (110,000     (871     (1,870     999   

Interest Rate Swaption USD

    GSC        1.92     USD         10/06/15         USD         (120,000     (1,043     (2,133     1,090   
              

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

                 (605,000   $     (1,949   $     (4,191   $     2,242   
              

 

 

   

 

 

   

 

 

   

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Australian 3-Year Bond Future

     23         06/15/2015       $     2,003,777       $     1,994,134       $ (9,643

Long Gilt Future

     4         06/26/2015         725,531         719,719         (5,812
              

 

 

 

Total

               $ (15,455
              

 

 

 

Short position contracts:

              

10-Year Mini JGB Future

     28         06/10/2015       $ 3,416,186       $ 3,426,857       $ (10,671

Australian 10-Year Bond Future

     23         06/15/2015         2,353,280         2,355,302         (2,022

Canadian Government 10-Year Bond Future

     1         06/19/2015         117,253         115,893         1,360   

Euro-Bund Future

     3         06/08/2015         529,316         527,852         1,464   

Euro-SCHATZ Future

     2         06/08/2015         249,675         249,666         9   

U.S. Treasury 10-Year Note Future

     37         06/19/2015         4,763,621         4,749,875             13,746   

U.S. Treasury 2-Year Note Future

     3         06/30/2015         657,013         657,797         (784

U.S. Treasury 5-Year Note Future

     20         06/30/2015         2,404,045         2,402,656         1,389   
              

 

 

 

Total

               $ 4,491   
              

 

 

 

Total futures contracts

               $ (10,964
              

 

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015        

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

  

           

Buy protection:

  

           

ABX.HE.AA.06-1

  JPM     USD        10,128      (0.32%)     07/25/45      $ 2,592      $      $ 2,084      $ (508

ABX.HE.AAA.06-1

  JPM     USD        24,745      (0.18%)     07/25/45        602               473        (129

ABX.HE.AAA.06-2

  BOA     USD        44,716      (0.11%)     05/25/46        9,234               8,495        (739

ABX.HE.AAA.07-1

  MSC     USD        57,212      (0.09%)     08/25/37              13,800               13,563        (237

ABX.HE.AAA.07-1

  GSC     USD        24,519      (0.09%)     08/25/37        6,090               5,813        (277

ABX.HE.PENAAA.06-2

  JPM     USD        141,443      (0.11%)     05/25/46        19,205               17,207        (1,998

CMBX.NA.A.7

  JPM     USD        65,000      (2.00%)     01/17/47               (1,347     (297         1,050   

CMBX.NA.AA.2

  CSI     USD        37,714      (0.15%)     03/15/49        11,558               12,067        509   

CMBX.NA.AA.2

  DEUT     USD        122,570      (0.15%)     03/15/49        42,638               39,219        (3,419

CMBX.NA.AA.2

  MSC     USD        155,569      (0.15%)     03/15/49        57,419                   49,778        (7,641

CMBX.NA.AA.7

  CSI     USD        60,000      (1.50%)     01/17/47               (548     (205     343   

CMBX.NA.AA.7

  MSC     USD        40,000      (1.50%)     01/17/47               (347     (137     210   

CMBX.NA.AA.7

  MSC     USD        20,000      (1.50%)     01/17/47               (237     (68     169   

CMBX.NA.AA.7

  CSI     USD        60,000      (1.50%)     01/17/47        237               (205     (442

CMBX.NA.AA.7

  CSI     USD        60,000      (1.50%)     01/17/47        280               (205     (485

CMBX.NA.AA.7

  CSI     USD        60,000      (1.50%)     01/17/47        326               (205     (531

CMBX.NA.AJ.1

  CSI     USD        90,000      (0.84%)     10/12/52        4,900               1,364        (3,536

 

The accompanying notes are an integral part of these financial statements.

 

 

  20  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)        

Reference Entity

  Counter-
party
  Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices: - (continued)

  

           

Buy protection: - (continued)

  

           

CMBX.NA.AJ.2

  DEUT     USD        104,126      (1.09%)     03/15/49      $ 9,313      $      $ 8,649      $ (664

CMBX.NA.AJ.2

  CSI     USD        84,292      (1.09%)     03/15/49        12,799               7,002        (5,797

CMBX.NA.AJ.4

  GSC     USD        49,803      (0.96%)     02/17/51        8,436               9,103        667   

CMBX.NA.AJ.4

  CSI     USD        69,724      (0.96%)     02/17/51        12,905               12,744        (161

CMBX.NA.AJ.4

  CBK     USD        49,803      (0.96%)     02/17/51        9,308               9,102        (206

CMBX.NA.AJ.4

  CSI     USD        19,921      (0.96%)     02/17/51        3,929               3,641        (288

CMBX.NA.AJ.4

  JPM     USD        4,980      (0.96%)     02/17/51        1,212               910        (302

CMBX.NA.AJ.4

  MSC     USD        29,882      (0.96%)     02/17/51        5,964               5,462        (502

CMBX.NA.AJ.4

  MSC     USD        29,882      (0.96%)     02/17/51        5,964               5,461        (503

CMBX.NA.AJ.4

  DEUT     USD        69,724      (0.96%)     02/17/51        13,420               12,744        (676

CMBX.NA.AJ.4

  CSI     USD        94,625      (0.96%)     02/17/51        18,442               17,296        (1,146

CMBX.NA.AJ.4

  CSI     USD        94,625      (0.96%)     02/17/51        23,966               17,295        (6,671

CMBX.NA.AM.2

  CSI     USD        360,000      (0.50%)     03/15/49        22,950               2,100        (20,850

CMBX.NA.AM.4

  GSC     USD        55,000      (0.50%)     02/17/51        4,624               1,234        (3,390

CMBX.NA.AS.6

  CSI     USD        135,000      (1.00%)     05/11/63        1,780               (67     (1,847

CMBX.NA.AS.7

  CBK     USD        60,000      (1.00%)     01/17/47        1,394               407        (987

CMBX.NA.AS.7

  CSI     USD        85,000      (1.00%)     01/17/47        1,983               576        (1,407

ITRAXX.EUR.Senior Financials Series 23

  GSC     EUR        90,000      (1.00%)     06/20/20               (1,456     (1,622     (166

ITRAXX.ex.Japan.IG.23

  GSC     USD        120,000      (1.00%)     06/20/20        807               221        (586
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $     328,077      $ (3,935   $ 260,999      $ (63,143
           

 

 

   

 

 

   

 

 

   

 

 

 

Sell protection:

  

           

CDX.EM.23

  CBK     USD        155,000      1.00%     06/20/20      $      $ (13,364   $ (13,736   $ (372

CMBX.NA.A.2

  BOA     USD        36,478      0.25%     03/15/49               (20,811     (23,224     (2,413

CMBX.NA.AAA.6

  CSI     USD        645,000      0.50%     05/11/63               (20,183     (8,644     11,539   

CMBX.NA.AAA.6

  DEUT     USD        260,000      0.50%     05/11/63               (6,337     (3,484     2,853   

CMBX.NA.AAA.6

  CSI     USD        175,000      0.50%     05/11/63               (3,410     (2,346     1,064   

CMBX.NA.AAA.6

  JPM     USD        35,000      0.50%     05/11/63               (1,178     (469     709   

CMBX.NA.AAA.6

  UBS     USD        70,000      0.50%     05/11/63               (1,578     (938     640   

CMBX.NA.BB.6

  CSI     USD        275,000      5.00%     05/11/63               (16,339           2,650            18,989   

CMBX.NA.BB.6

  CSI     USD        2,000      5.00%     05/11/63               (13     24        37   

CMBX.NA.BB.6

  CSI     USD        105,000      5.00%     05/11/63        1,784               1,011        (773

CMBX.NA.BB.7

  GSC     USD        85,000      5.00%     01/17/47               (5,045     (742     4,303   

CMBX.NA.BB.7

  CSI     USD        60,000      5.00%     01/17/47               (2,016     (524     1,492   

CMBX.NA.BB.7

  DEUT     USD        50,000      5.00%     01/17/47               (1,269     (437     832   

CMBX.NA.BB.7

  CSI     USD        10,000      5.00%     01/17/47               (494     (87     407   

CMBX.NA.BB.8

  BOA     USD        45,000      5.00%     10/17/57               (3,252     (2,527     725   

CMBX.NA.BB.8

  CSI     USD        10,000      5.00%     10/17/57               (729     (562     167   

CMBX.NA.BB.8

  CSI     USD        15,000      5.00%     10/17/57               (949     (842     107   

CMBX.NA.BB.8

  GSC     USD        15,000      5.00%     10/17/57               (792     (842     (50

CMBX.NA.BB.8

  GSC     USD        30,000      5.00%     10/17/57               (1,607     (1,688     (81

ITRAXX.EUR.Senior Financials Series 23

  GSC     EUR        105,000      1.00%     06/20/20        1,506               1,892        386   

ITRAXX.EUR.Senior Financials Series 23

  DEUT     EUR        105,000      1.00%     06/20/20        1,506               1,892        386   

ITRAXX.EUR.Senior Financials Series 23

  GSC     EUR        50,000      1.00%     06/20/20        744               901        157   

ITRAXX.EUR.Senior Financials Series 23

  DEUT     EUR        50,000      1.00%     06/20/20        772               901        129   

ITRAXX.EUR.Senior Financials Series 23

  GSC     EUR        15,000      1.00%     06/20/20        216               270        54   

PrimeX.ARM.2

  MSC     USD        93,236      4.58%     12/25/37        1,865               3,556        1,691   

PrimeX.ARM.2

  MSC     USD        3,680      4.58%     12/25/37        138               140        2   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 8,531      $ (99,366   $ (47,855   $ 42,980   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total traded indices

            $ 336,608      $     (103,301   $ 213,144      $ (20,163
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

  

           

Buy protection:

  

           

Ally Financial, Inc.

  MSC     USD        30,000      (5.00%)/1.69%     12/20/19      $      $ (4,209   $ (4,481   $ (272

Avis Budget Group, Inc.

  BOA     USD        20,000      (5.00%)/1.46%     06/20/18               (2,167     (2,297     (130

 

The accompanying notes are an integral part of these financial statements.

 

 

  21  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Credit Default Swap Contracts Outstanding at April 30, 2015 - (continued)        

Reference Entity

  Counter-
party
    Notional
Amount (a)
    (Pay)/Receive
Fixed Rate/
Implied Credit
Spread (b)
  Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on single-name issues: - (continued)

  

           

Buy protection: - (continued)

  

           

Casino Guichard Perrchon

    BOA        EUR        50,000      (1.00%)/0.98%     06/20/20      $      $ (348   $ (109   $ 239   

Casino Guichard Perrchon

    JPM        EUR        20,000      (1.00%)/0.98%     06/20/20               (63     (43     20   

CIT Group, Inc.

    GSC        USD        5,000      (5.00%)/1.52%     12/20/17               (470     (478     (8

CIT Group, Inc.

    CSI        USD        15,000      (5.00%)/1.52%     12/20/17               (1,304     (1,434     (130

First Data Corp.

    MSC        USD        100,000      (5.00%)/0.95%     09/20/17               (7,236     (10,591     (3,355

Hertz Corp.

    BOA        USD        20,000      (5.00%)/1.90%     06/20/18               (1,885     (2,006     (121

MDC Holdings, Inc.

    JPM        USD        30,000      (1.00%)/1.57%     03/20/20        1,039               760        (279

Ryland Group, Inc.

    DEUT        USD        75,000      (5.00%)/0.80%     09/20/17               (6,061     (7,946     (1,885

Ryland Group, Inc.

    DEUT        USD        50,000      (5.00%)/0.92%     12/20/17               (4,498     (5,638     (1,140

Tenet Healthcare Corp.

    MSC        USD        50,000      (5.00%)/1.49%     12/20/17               (4,017     (4,850     (833

Thyssen Krupp AG

    MSC        EUR        75,000      (1.00%)/1.43%     06/20/20        1,668               1,731        63   

Time Warner Cable, Inc.

    MSC        USD        10,000      (1.00%)/1.20%     03/20/19        137               64        (73

Time Warner Cable, Inc.

    JPM        USD        30,000      (1.00%)/1.20%     03/20/19        444               191        (253

Time Warner Cable, Inc.

    JPM        USD        10,000      (1.00%)/1.29%     06/20/19        184               103        (81
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

            $ 3,472      $ (32,258   $ (37,024   $ (8,238
           

 

 

   

 

 

   

 

 

   

 

 

 

Credit default swaps on single-name issues:

  

           

Sell protection:

  

           

Arcelormittal

    MSC        EUR        75,000      1.00%/2.73%     06/20/20      $      $ (6,509   $ (6,955   $ (446

Avis Budget Group, Inc.

    BOA        USD        20,000      5.00%/3.00%     06/20/20        2,025               1,992        (33

Banco Santander S.A.

    CSFB        EUR        45,000      1.00%/0.89%     06/20/20        321               332        11   

Banco Santander S.A.

    GSC        EUR        30,000      1.00%/0.89%     06/20/20        214               221        7   

Beazer Homes USA, Inc.

    JPM        USD        50,000      5.00%/4.50%     06/20/20        1,155               1,427        272   

First Data Corp.

    JPM        USD        100,000      5.00%/2.56%     06/20/20        10,832               12,175        1,343   

Hertz Corp.

    BOA        USD        20,000      5.00%/3.74%     06/20/20        1,327               1,274        (53

International Lease Finance Corp.

    GSC        USD        25,000      5.00%/1.60%     06/20/20        3,653               4,190        537   

Liberty Interactive LLC

    GSC        USD        25,000      5.00%/2.10%     03/20/20        2,840               3,477        637   

Tenet Healthcare Corp.

    MSC        USD        50,000      5.00%/3.62%     06/20/20        3,339               3,474        135   

United Rentals Inc.

    GSC        USD        20,000      5.00%/2.31%     06/20/20        2,520               2,693        173   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total

  

  $ 28,226      $ (6,509   $ 24,300      $ 2,583   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total single-name issues

  

  $ 31,698      $ (38,767   $ (12,724   $ (5,655
           

 

 

   

 

 

   

 

 

   

 

 

 

Total OTC contracts

  

  $ 368,306      $ (142,068   $ 200,420      $ (25,818
           

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

(b)  Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on April 30, 2015. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk.

 

The accompanying notes are an integral part of these financial statements.

 

 

22

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Centrally Cleared Credit Default Swap Contracts Outstanding April 30, 2015  

Reference Entity

   Notional
Amount (a)
     (Pay)/Receive
Fixed Rate
    Expiration
Date
     Cost
Basis
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Credit default swaps on indices:

                 

Buy protection:

                 

CDX.NA.HY.24

     USD         475,000         (5.00 %)      06/20/20       $ (35,092   $ (36,502   $ (1,410

ITRAXX.XOV.23

     EUR         225,000         (5.00 %)      06/20/20         (27,469     (26,713     756   
             

 

 

   

 

 

   

 

 

 

Total

              $ (62,561   $ (63,215   $ (654
             

 

 

   

 

 

   

 

 

 

Credit default swaps on indices:

                 

Sell protection:

                 

ITRAXX.EUR.23

     EUR         1,100,000         1.00     06/20/20       $ 25,389      $ 24,719      $ (670
             

 

 

   

 

 

   

 

 

 

Total

              $     (37,172   $     (38,496   $     (1,324
             

 

 

   

 

 

   

 

 

 

 

(a)  The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   6.41% Fixed    1M MXIBTIIE      MXN         3,285,000         09/04/25       $     —       $     —       $ (2,121   $ (2,121

MSC

   1M MXN TIIE    5.50% Fixed      MXN         3,685,000         09/09/20                         (1,365     (1,365

JPM

   1M MXN TIIE    5.51% Fixed      MXN         530,000         09/10/20                         (188     (188

JPM

   1M MXN TIIE    5.49% Fixed      MXN         2,475,000         09/10/20                         (997     (997

DEUT

   1M MXN TIIE    6.31% Fixed      MXN         1,225,000         03/12/25                         (2,252     (2,252

JPM

   1M MXN TIIE    7.20% Fixed      MXN         1,905,000         09/10/25                         281        281   

DEUT

   1M MXN TIIE    7.21% Fixed      MXN         955,000         09/10/25                         173        173   

MSC

   1M MXN TIIE    7.21% Fixed      MXN         955,000         09/10/25                         166        166   

MSC

   1M MXN TIIE    7.21% Fixed      MXN         955,000         09/10/25                         166        166   

MSC

   1M MXN TIIE    7.12% Fixed      MXN         2,600,000         09/10/25                         (89     (89

MSC

   1M MXN TIIE    6.94% Fixed      MXN         1,910,000         09/10/25                         (841     (841

JPM

   1M MXN TIIE    6.86% Fixed      MXN         1,700,000         09/10/25                         (1,069     (1,069

BOA

   3M CAD CDOR    2.51% Fixed      CAD         70,000         09/16/25                         (624     (624

BOA

   3M CAD CDOR    2.51% Fixed      CAD         70,000         09/16/25                         (709     (709

JPM

   3M KRW CD KSDA    2.05% Fixed      KRW         46,370,000         06/17/25                         (942     (942

GSC

   3M KRW CD KSDA    2.05% Fixed      KRW         257,995,000         06/17/25                         (5,233     (5,233

GSC

   1.91% Fixed    3M KRW KORIBOR      KRW         160,300,000         09/16/20                         1,309        1,309   

CBK

   1.91% Fixed    3M KRW KORIBOR      KRW         160,295,000         09/16/20                         1,292        1,292   

JPM

   1.90% Fixed    3M KRW KORIBOR      KRW         43,720,000         09/16/20                         367        367   

JPM

   3M KRW KORIBOR    2.42% Fixed      KRW         101,860,000         09/16/25                         (565     (565

JPM

   3M KRW KORIBOR    2.42% Fixed      KRW         101,420,000         09/16/25                         (573     (573

DEUT

   3.87% Fixed    3M NZD NZDBB      NZD         215,000         09/16/25                         69        69   

JPM

   3.90% Fixed    3M NZD NZDBB      NZD         180,000         09/16/25                         (221     (221

JPM

   0.51% Fixed    3M SEK STIBOR      SEK         4,575,000         06/21/19                                 1,474                1,474   

GSC

   0.51% Fixed    3M SEK STIBOR      SEK         1,955,000         06/21/19                         656        656   

MSC

   0.52% Fixed    3M SEK STIBOR      SEK         2,120,000         06/21/19                         639        639   

JPM

   1.76% Fixed    3M SEK STIBOR      SEK         1,815,000         06/17/25                         (552     (552

CBK

   3M SEK STIBOR    0.51% Fixed      SEK         900,000         09/16/20                         (148     (148

MSC

   7.13% Fixed    3M ZAR JIBAR      ZAR         9,510,000         06/15/17                         1,779        1,779   

JPM

   7.16% Fixed    3M ZAR JIBAR      ZAR         9,515,000         06/15/17                         1,518        1,518   

JPM

   7.29% Fixed    3M ZAR JIBAR      ZAR         9,630,000         06/17/17                         683        683   

JPM

   7.26% Fixed    3M ZAR JIBAR      ZAR         4,075,000         09/16/17                         (1,353     (1,353

JPM

   3M ZAR JIBAR    7.36% Fixed      ZAR         265,000         09/16/20                         (205     (205

MSC

   3M ZAR JIBAR    8.63% Fixed      ZAR         1,995,000         09/16/25                         (141     (141

DEUT

   3M ZAR JIBAR    8.52% Fixed      ZAR         1,300,000         09/16/25                         (397     (397

MSC

   3M ZAR JIBAR    8.47% Fixed      ZAR         1,170,000         09/16/25                         (488     (488

BOA

   3M ZAR JIBAR    8.41% Fixed      ZAR         1,305,000         09/16/25                         (712     (712

CBK

   3M ZAR JIBAR    8.39% Fixed      ZAR         1,305,000         09/16/25                         (778     (778

 

The accompanying notes are an integral part of these financial statements.

 

 

  23  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015 - (continued)  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

JPM

   3M ZAR JIBAR    7.80% Fixed      ZAR         840,000         09/16/25       $       $       $ (993   $ (993

JPM

   3M ZAR JIBAR    8.55% Fixed      ZAR         8,915,000         09/16/25                         (2,225     (2,225

JPM

   2.54% Fixed    6M AUD BBSW      AUD         140,000         09/16/20                         247        247   

JPM

   3.19% Fixed    6M AUD BBSW      AUD         160,000         09/16/25                         1,471        1,471   

JPM

   3.43% Fixed    6M AUD BBSW      AUD         330,000         09/16/25                         527        527   

BOA

   4.15% Fixed    6M CLP CHILIBOR      CLP         67,340,000         09/16/20                         (1,250     (1,250

MSC

   6M CLP CHILIBOR    3.72% Fixed      CLP         92,497,500         09/16/17                         576        576   

GSC

   6M CLP CHILIBOR    3.70% Fixed      CLP         92,492,500         09/16/17                         508        508   

BNP

   6M HUF BUBOR    3.56% Fixed      HUF         10,885,000         03/18/25                         (264     (264

MSC

   6M HUF BUBOR    4.01% Fixed      HUF         21,275,000         09/16/25                         790        790   

MSC

   6M HUF BUBOR    3.79% Fixed      HUF         28,940,000         09/16/25                         140        140   

JPM

   6M NOK NIBOR    1.41% Fixed      NOK         845,000         09/16/20                         (2,021     (2,021

JPM

   2.08% Fixed    6M PLN WIBOR      PLN         310,000         06/17/25                             2,426            2,426   

DEUT

   2.28% Fixed    6M PLN WIBOR      PLN         370,000         06/17/25                         1,089        1,089   

GSC

   2.29% Fixed    6M PLN WIBOR      PLN         365,000         06/17/25                         985        985   

DEUT

   2.30% Fixed    6M PLN WIBOR      PLN         295,000         06/17/25                         759        759   

CBK

   2.39% Fixed    6M PLN WIBOR      PLN         310,000         06/17/25                         108        108   

GSC

   6M PLN WIBOR    2.08% Fixed      PLN         120,000         09/16/20                         (169     (169

DEUT

   6M PLN WIBOR    1.79% Fixed      PLN         405,000         09/16/20                         (2,075     (2,075

JPM

   6M PLN WIBOR    2.65% Fixed      PLN         185,000         09/16/25                         (111     (111

MSC

   6M PLN WIBOR    2.67% Fixed      PLN         370,000         09/16/25                         (137     (137

JPM

   6M PLN WIBOR    2.62% Fixed      PLN         185,000         09/16/25                         (181     (181

JPM

   6M PLN WIBOR    2.47% Fixed      PLN         155,000         09/16/25                         (419     (419

DEUT

   6M PLN WIBOR    2.31% Fixed      PLN         180,000         09/16/25                         (819     (819
                 

 

 

    

 

 

    

 

 

   

 

 

 

Total

                  $       $       $ (13,029   $ (13,029
                 

 

 

    

 

 

    

 

 

   

 

 

 

 

Centrally Cleared Interest Rate Swap Contracts Outstanding at April 30, 2015  

Counterparty

   Payments made
by Fund
   Payments received
by Fund
   Notional
Amount
     Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

GSC

   0.87% Fixed    3M JPY LIBOR      JPY         61,460,000         09/16/25       $       $      $ 899      $ 899   

GSC

   2.50% Fixed    3M USD LIBOR      USD         115,000         09/16/25                        1,263        1,263   

GSC

   2.56% Fixed    3M USD LIBOR      USD         140,000         09/16/25                        1,153        1,153   

GSC

   2.51% Fixed    3M USD LIBOR      USD         70,000         09/16/25                        710        710   

GSC

   2.55% Fixed    3M USD LIBOR      USD         70,000         09/16/25                        617        617   

GSC

   2.58% Fixed    3M USD LIBOR      USD         80,000         09/16/25                        579        579   

GSC

   2.56% Fixed    3M USD LIBOR      USD         65,000         09/16/25                        521        521   

GSC

   2.34% Fixed    3M USD LIBOR      USD         3,045,000         06/15/26                 (12,626     17,160        29,786   

GSC

   3M USD LIBOR    1.62% Fixed      USD         14,265,000         06/15/18             21,655                     —            19,022        (2,633

GSC

   3M USD LIBOR    2.03% Fixed      USD         105,000         09/16/20                        1,386            1,386   

GSC

   0.30% Fixed    6M EURIBOR      EUR         95,000         09/16/20                        248        248   

GSC

   1.14% Fixed    6M EURIBOR      EUR         30,000         03/18/25                        (211     (211

GSC

   1.01% Fixed    6M EURIBOR      EUR         185,000         06/17/25                        291        291   

GSC

   1.16% Fixed    6M EURIBOR      EUR         60,000         09/16/25                        (338     (338

GSC

   1.28% Fixed    6M EURIBOR      EUR         80,000         09/16/25                        (970     (970

GSC

   0.81% Fixed    6M EURIBOR      EUR         65,000         06/17/45         12                4,143        4,131   

GSC

   6M EURIBOR    0.52% Fixed      EUR         185,000         06/17/25         102                (3,197     (3,299

GSC

   6M GBP LIBOR    1.71% Fixed      GBP         70,000         09/16/20                        456        456   

GSC

   6M GBP LIBOR    2.00% Fixed      GBP         35,000         09/16/25                        (754     (754

GSC

   6M GBP LIBOR    1.98% Fixed      GBP         40,000         09/16/25                        (915     (915
                 

 

 

    

 

 

   

 

 

   

 

 

 

Total

                  $ 21,769       $ (12,626   $ 42,063      $ 32,920   
                 

 

 

    

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

24

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/01/15       BOA    $ 2,963       $ 2,920       $ (43

AUD

   Buy      05/29/15       GSC      89,263         90,855         1,592   

AUD

   Buy      05/29/15       NAB      31,217         31,602         385   

AUD

   Buy      05/29/15       GSC      99,239         99,546         307   

AUD

   Buy      05/29/15       JPM      99,472         99,546         74   

AUD

   Buy      05/29/15       SSG      27,626         27,651         25   

AUD

   Buy      05/29/15       CSFB      43,483         43,453         (30

AUD

   Buy      05/29/15       CBA      106,202         105,076         (1,126

AUD

   Sell      05/29/15       BOA      210,966         208,572         2,394   

AUD

   Sell      05/29/15       BOA      75,100         75,054         46   

AUD

   Sell      05/29/15       BCLY      185,006         185,661         (655

AUD

   Sell      05/29/15       GSC      912,811         929,093         (16,282

BRL

   Buy      05/05/15       GSC      66,771         69,578         2,807   

BRL

   Buy      05/05/15       GSC      78,930         81,173         2,243   

BRL

   Buy      05/05/15       SSG      43,469         44,728         1,259   

BRL

   Buy      05/05/15       UBS      27,533         28,162         629   

BRL

   Buy      05/05/15       BOA      49,505         49,698         193   

BRL

   Buy      05/05/15       UBS      24,676         24,849         173   

BRL

   Buy      05/05/15       UBS      24,687         24,849         162   

BRL

   Buy      05/05/15       GSC      13,093         13,252         159   

BRL

   Buy      05/05/15       UBS      13,138         13,252         114   

BRL

   Buy      05/05/15       GSC      21,713         21,536         (177

BRL

   Buy      05/05/15       UBS      25,100         24,849         (251

BRL

   Buy      05/05/15       UBS      40,872         39,758         (1,114

BRL

   Buy      05/05/15       UBS      152,993         151,744         (1,249

BRL

   Buy      06/02/15       UBS      83,852         80,378         (3,474

BRL

   Sell      05/05/15       UBS      84,652         81,173         3,479   

BRL

   Sell      05/05/15       GSC      79,503         78,854         649   

BRL

   Sell      05/05/15       BOA      50,107         49,698         409   

BRL

   Sell      05/05/15       SSG      45,096         44,806         290   

BRL

   Sell      05/05/15       GSC      2,261         2,320         (59

BRL

   Sell      05/05/15       GSC      30,919         31,475         (556

BRL

   Sell      05/05/15       GSC      71,720         72,891         (1,171

BRL

   Sell      05/05/15       UBS      26,210         28,162         (1,952

BRL

   Sell      05/05/15       UBS      76,505         78,854         (2,349

BRL

   Sell      05/05/15       UBS      111,925         119,275         (7,350

BRL

   Sell      06/02/15       SSG      118,044         114,827         3,217   

CAD

   Buy      05/29/15       CBK      24,516         24,855         339   

CAD

   Buy      05/29/15       DEUT      66,338         66,281         (57

CAD

   Sell      05/13/15       GSC      512,148         530,363         (18,215

CAD

   Sell      05/20/15       BMO      200,711         207,152         (6,441

CAD

   Sell      05/29/15       BMO      45,302         45,568         (266

CAD

   Sell      05/29/15       TDB      45,295         45,568         (273

CAD

   Sell      05/29/15       JPM      20,438         20,713         (275

CAD

   Sell      06/15/15       RBC      311,677         310,620         1,057   

CAD

   Sell      06/15/15       MSC      174,977         178,088         (3,111

CAD

   Sell      06/15/15       BCLY      182,513         190,513         (8,000

CAD

   Sell      06/22/15       RBC      230,654         244,330         (13,676

CAD

   Sell      06/23/15       RBS      257,641         269,173         (11,532

CAD

   Sell      07/08/15       RBC      280,233         289,815         (9,582

CHF

   Buy      05/29/15       JPM      99,737         103,006         3,269   

CHF

   Buy      05/29/15       JPM      49,682         51,503         1,821   

CHF

   Buy      05/29/15       JPM      49,710         51,503         1,793   

CHF

   Buy      05/29/15       SSG      37,416         37,554         138   

CHF

   Sell      05/29/15       JPM      150,623         155,582         (4,959

CHF

   Sell      05/29/15       UBS      377,166         389,491         (12,325

CLP

   Buy      05/29/15       SCB      154,618         155,841         1,223   

CLP

   Buy      05/29/15       GSC      22,754         22,496         (258

 

The accompanying notes are an integral part of these financial statements.

 

 

  25  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

CNH

   Buy      05/29/15       JPM    $ 1,924       $ 1,927       $ 3   

CNH

   Buy      05/29/15       HSBC      50,206         50,118         (88

CNH

   Buy      05/29/15       HSBC      50,212         50,118         (94

CNH

   Buy      05/29/15       HSBC      216,579         216,053         (526

CNH

   Sell      05/29/15       HSBC      102,412         102,163         249   

CNH

   Sell      05/29/15       JPM      100,321         100,075         246   

CNY

   Sell      05/29/15       BOA      205,230         205,230           

COP

   Buy      05/29/15       GSC      59,595         61,948         2,353   

COP

   Buy      05/29/15       GSC      38,276         38,947         671   

COP

   Buy      05/29/15       SCB      38,371         38,948         577   

CZK

   Sell      05/29/15       BNP      12,543         13,096         (553

EUR

   Buy      05/05/15       WEST      628         642         14   

EUR

   Buy      05/29/15       JPM      150,559         157,260         6,701   

EUR

   Buy      05/29/15       CBA      311,211         313,396         2,185   

EUR

   Buy      05/29/15       CSFB      65,539         67,397         1,858   

EUR

   Buy      05/29/15       GSC      43,317         44,931         1,614   

EUR

   Buy      05/29/15       UBS      29,015         30,328         1,313   

EUR

   Buy      05/29/15       GSC      26,872         28,082         1,210   

EUR

   Buy      05/29/15       CBK      150,436         151,644         1,208   

EUR

   Buy      05/29/15       JPM      100,472         101,096         624   

EUR

   Buy      05/29/15       CBK      17,482         17,973         491   

EUR

   Buy      05/29/15       UBS      27,646         28,082         436   

EUR

   Buy      05/29/15       DEUT      27,848         28,083         235   

EUR

   Buy      05/29/15       DEUT      12,229         12,356         127   

EUR

   Buy      05/29/15       SSG      50,442         50,547         105   

EUR

   Buy      05/29/15       MSC      19,061         19,096         35   

EUR

   Buy      05/29/15       JPM      209,024         208,931         (93

EUR

   Buy      05/29/15       CBK      101,214         101,096         (118

EUR

   Sell      05/04/15       DEUT      12,206         12,332         (126

EUR

   Sell      05/05/15       MSC      18,509         18,541         (32

EUR

   Sell      05/06/15       DEUT      1,570         1,586         (16

EUR

   Sell      05/29/15       WEST      1,098         1,123         (25

EUR

   Sell      05/29/15       RBC      1,083         1,123         (40

EUR

   Sell      05/29/15       BMO      22,418         22,465         (47

EUR

   Sell      05/29/15       UBS      4,299         4,494         (195

EUR

   Sell      05/29/15       BOA      100,326         101,096         (770

EUR

   Sell      05/29/15       SSG      100,320         101,095         (775

EUR

   Sell      05/29/15       JPM      50,611         51,671         (1,060

EUR

   Sell      05/29/15       JPM      49,090         50,548         (1,458

EUR

   Sell      05/29/15       HSBC      49,951         51,671         (1,720

EUR

   Sell      05/29/15       BOA      152,159         153,890         (1,731

EUR

   Sell      05/29/15       DEUT      51,032         52,794         (1,762

EUR

   Sell      05/29/15       CBA      102,600         104,466         (1,866

EUR

   Sell      05/29/15       HSBC      49,777         51,672         (1,895

EUR

   Sell      05/29/15       JPM      99,130         101,095         (1,965

EUR

   Sell      05/29/15       DEUT      50,570         52,795         (2,225

EUR

   Sell      05/29/15       BCLY      50,540         52,795         (2,255

EUR

   Sell      05/29/15       JPM      50,452         52,794         (2,342

EUR

   Sell      05/29/15       JPM      50,429         52,795         (2,366

EUR

   Sell      05/29/15       DEUT      307,492         310,027         (2,535

EUR

   Sell      05/29/15       JPM      100,951         105,588         (4,637

EUR

   Sell      05/29/15       DEUT      2,897,397         2,995,800         (98,403

EUR

   Sell      06/30/15       BCLY      203,677         202,277         1,400   

EUR

   Sell      06/30/15       BCLY      105,906         112,376         (6,470

EUR

   Sell      07/17/15       GSC      267,966         281,008         (13,042

EUR

   Sell      08/03/15       MSC      269,077         281,074         (11,997

EUR

   Sell      08/14/15       HSBC      283,050         297,992         (14,942

GBP

   Buy      05/29/15       JPM      22,492         23,020         528   

 

The accompanying notes are an integral part of these financial statements.

 

 

  26  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

GBP

   Buy      05/29/15       CSFB    $ 61,020       $ 61,387       $ 367   

GBP

   Buy      05/29/15       BMO      46,096         46,040         (56

GBP

   Buy      05/29/15       DEUT      199,589         199,507         (82

GBP

   Buy      05/29/15       JPM      104,975         104,358         (617

GBP

   Buy      05/29/15       JPM      117,400         116,634         (766

GBP

   Buy      05/29/15       DEUT      315,211         313,073         (2,138

GBP

   Buy      05/29/15       MSC      507,824         503,372         (4,452

GBP

   Sell      05/07/15       MSC      507,216         502,805         4,411   

GBP

   Sell      05/29/15       MSC      100,689         99,753         936   

GBP

   Sell      05/29/15       JPM      203,474         202,577         897   

GBP

   Sell      05/29/15       BOA      100,493         99,754         739   

GBP

   Sell      05/29/15       JPM      202,780         202,577         203   

GBP

   Sell      05/29/15       CBK      145,848         145,794         54   

GBP

   Sell      05/29/15       GSC      68,103         69,060         (957

GBP

   Sell      05/29/15       CBK      97,724         99,754         (2,030

GBP

   Sell      05/29/15       CBK      152,689         156,536         (3,847

GBP

   Sell      05/29/15       GSC      4,007,461         4,092,966         (85,505

HUF

   Buy      05/29/15       GSC      17,846         18,466         620   

HUF

   Buy      05/29/15       GSC      12,508         12,926         418   

HUF

   Buy      05/29/15       DEUT      39,860         40,255         395   

HUF

   Sell      05/29/15       DEUT      30,136         30,284         (148

HUF

   Sell      05/29/15       BNP      56,829         59,090         (2,261

ILS

   Buy      05/29/15       GSC      23,208         23,308         100   

ILS

   Buy      05/29/15       UBS      12,920         12,948         28   

ILS

   Sell      05/29/15       BNP      90,081         91,934         (1,853

INR

   Buy      05/29/15       JPM      74,664         74,747         83   

INR

   Buy      05/29/15       HSBC      174,943         173,264         (1,679

INR

   Sell      05/29/15       SCB      35,016         34,716         300   

INR

   Sell      05/29/15       HSBC      27,315         27,053         262   

INR

   Sell      05/29/15       MSC      74,492         74,278         214   

INR

   Sell      05/29/15       JPM      74,618         74,748         (130

JPY

   Buy      05/29/15       MSC      820,029         821,596         1,567   

JPY

   Buy      05/29/15       DEUT      80,343         80,424         81   

JPY

   Buy      05/29/15       GSC      99,919         99,692         (227

JPY

   Buy      05/29/15       JPM      400,369         399,773         (596

JPY

   Sell      05/29/15       CBA      102,674         102,205         469   

JPY

   Sell      05/29/15       JPM      400,231         399,773         458   

JPY

   Sell      05/29/15       MSC      184,789         185,142         (353

JPY

   Sell      06/08/15       MSC      99,767         100,543         (776

JPY

   Sell      06/08/15       UBS      330,623         335,143         (4,520

JPY

   Sell      06/15/15       SCB      83,441         83,795         (354

JPY

   Sell      06/22/15       BOA      165,744         167,607         (1,863

KRW

   Buy      05/29/15       UBS      51,291         51,673         382   

KRW

   Buy      05/29/15       HSBC      58,249         58,467         218   

KRW

   Sell      05/29/15       SCB      99,743         100,169         (426

KRW

   Sell      05/29/15       BCLY      63,263         63,751         (488

KRW

   Sell      05/29/15       HSBC      263,077         264,061         (984

MXN

   Buy      05/29/15       RBC      57,069         57,432         363   

MXN

   Buy      05/29/15       GSC      25,221         25,367         146   

MYR

   Sell      05/29/15       UBS      102,306         103,604         (1,298

NOK

   Buy      05/29/15       JPM      510,758         533,426         22,668   

NOK

   Buy      05/29/15       GSC      41,938         43,788         1,850   

NOK

   Sell      05/29/15       UBS      26,518         26,538         (20

NOK

   Sell      05/29/15       GSC      121,534         126,058         (4,524

NZD

   Buy      05/29/15       NAB      102,950         103,499         549   

NZD

   Buy      05/29/15       NAB      30,281         30,441         160   

NZD

   Sell      05/29/15       DEUT      52,941         53,272         (331

NZD

   Sell      05/29/15       JPM      48,983         49,466         (483

NZD

   Sell      05/29/15       NAB      382,279         384,319         (2,040

 

The accompanying notes are an integral part of these financial statements.

 

 

  27  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

PEN

   Buy      05/29/15       SCB    $ 25,531       $ 25,437       $ (94

PEN

   Sell      05/29/15       SSG      57,125         57,232         (107

PLN

   Buy      05/29/15       BNP      677,591         704,314         26,723   

PLN

   Buy      05/29/15       BCLY      50,123         51,894         1,771   

PLN

   Buy      05/29/15       JPM      50,376         51,339         963   

PLN

   Buy      05/29/15       JPM      18,750         19,426         676   

PLN

   Sell      05/29/15       DEUT      42,782         43,013         (231

RUB

   Buy      05/29/15       JPM      188,816         190,384         1,568   

RUB

   Sell      05/29/15       JPM      75,736         76,365         (629

SEK

   Buy      05/29/15       SSG      1,564,518         1,625,979             61,461   

SEK

   Buy      05/29/15       JPM      102,231         103,259         1,028   

SEK

   Buy      05/29/15       BOA      103,344         103,260         (84

SEK

   Buy      05/29/15       BOA      75,817         75,644         (173

SEK

   Buy      05/29/15       MSC      103,725         103,260         (465

SEK

   Sell      05/29/15       JPM      116,272         115,387         885   

SEK

   Sell      05/29/15       JPM      103,676         103,139         537   

SEK

   Sell      05/29/15       SSG      55,092         55,232         (140

SEK

   Sell      05/29/15       UBS      52,671         52,831         (160

SEK

   Sell      05/29/15       GSC      14,993         15,609         (616

SEK

   Sell      05/29/15       GSC      25,443         26,415         (972

SEK

   Sell      05/29/15       CSFB      39,562         40,824         (1,262

SEK

   Sell      05/29/15       SSG      63,542         66,038         (2,496

SGD

   Buy      05/29/15       HSBC      103,877         105,739         1,862   

SGD

   Buy      05/29/15       UBS      103,886         105,738         1,852   

SGD

   Sell      05/29/15       DEUT      26,279         26,434         (155

SGD

   Sell      05/29/15       UBS      100,918         102,717         (1,799

SGD

   Sell      05/29/15       HSBC      101,733         105,738         (4,005

TRY

   Buy      05/29/15       JPM      12,737         12,981         244   

TRY

   Buy      05/29/15       GSC      26,019         25,962         (57

TRY

   Sell      05/29/15       UBS      14,909         14,836         73   

TRY

   Sell      05/29/15       HSBC      73,896         75,291         (1,395

TRY

   Sell      05/29/15       DEUT      73,500         74,920         (1,420

TRY

   Sell      05/29/15       HSBC      171,639         174,319         (2,680

TWD

   Buy      05/29/15       BOA      101,656         102,205         549   

ZAR

   Buy      05/29/15       JPM      220,716         226,686         5,970   

ZAR

   Buy      05/29/15       HSBC      49,904         51,025         1,121   

ZAR

   Buy      05/29/15       DEUT      30,619         30,950         331   

ZAR

   Buy      05/29/15       BCLY      22,580         22,585         5   

ZAR

   Sell      05/29/15       UBS      21,082         20,912         170   

ZAR

   Sell      05/29/15       JPM      30,054         30,950         (896
                 

 

 

 

Total

                  $ (249,461
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

28

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

CLP

   Chilean Peso

CNH

   Chinese Renminbi

CNY

   Chinese Yuan

COP

   Colombian Peso

CZK

   Czech Koruna

EUR

   Euro

GBP

   British Pound

HUF

   Hungarian Forint

ILS

   Israeli Shekel

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   South Korea Won

MXN

   Mexican Peso

MYR

   Malaysian Ringgit

NOK

   Norwegian Krone

NZD

   New Zealand Dollar

PEN

   Peruvian Nuevo Sol

PLN

   Polish Zloty

RUB

   Russian Ruble

SEK

   Swedish Krona

SGD

   Singapore Dollar

TRY

   Turkish Lira

TWD

   Taiwanese Dollar

ZAR

   South African Rand
Other Abbreviations:

BBSW

   Bank Bill Swap Reference Rate

BUBOR

   Budapest Interbank Offered Rate

CD

   Certificate of Deposit

CDOR

   Canadian Dollar Offered Rate

CHILIBOR

   Chile Interbank Offered Rate

CLO

   Collateralized Loan Obligation

CMO

   Collateralized Mortgage Obligation

EM

   Emerging Markets

EURIBOR

   Euro Interbank Offered Rate

FHLB

   Federal Home Loan Bank

FNMA

   Federal National Mortgage Association

JIBAR

   Johannesburg Interbank Agreed Rate

KORIBOR

   South Korea Interbank Offered Rate

KSDA

   Korea Securities Dealers Association

LIBOR

   London Interbank Offered Rate

MXIBTIIE

   Mexico Interbank Equilibrium Interest Rate

NZDBB

   New Zealand Bank Bill

NZDBOR

   New Zealand Interbank Offered Rate

OTC

   Over-the-Counter

STIBOR

   Stockholm Interbank Offered Rate

TIIE

   Interbank Equilibrium Interest Rate

WIBOR

   Warsaw Interbank Offered Rate
 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

  29  

 


The Hartford Global Alpha Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Asset & Commercial Mortgage Backed Securities

   $ 1,192,558      $      $ 1,192,558      $     —   

Corporate Bonds

     2,267,119               2,267,119          

Foreign Government Obligations

     4,310,957               4,310,957          

U.S. Government Agencies

     1,000,261               1,000,261          

U.S. Government Securities

     9,715,168               9,715,168          

Short-Term Investments

     6,005,991        917,912        5,088,079          

Purchased Options

     61,429               61,429          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     24,553,483      $     917,912      $     23,635,571      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 201,156      $      $ 201,156      $   

Futures Contracts (2)

     17,968        17,968                 

Swaps - Credit Default (2)

     53,810               53,810          

Swaps - Interest Rate (2)

     62,238               62,238          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 335,172      $ 17,968      $ 317,204      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (450,617   $      $ (450,617   $   

Futures Contracts (2)

     (28,932     (28,932              

Swaps - Credit Default (2)

     (80,952            (80,952       

Swaps - Interest Rate (2)

     (42,347            (42,347       

Written Options

     (9,554            (9,554       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (612,402   $ (28,932   $ (583,470   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers between Level 1 and Level 2.

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Asset & Commercial Mortgage
Backed Securities
    Total  

Beginning balance

   $ 87,168      $ 87,168   

Purchases

     10,085        10,085   

Sales

     (5,766     (5,766

Accrued discounts/(premiums)

     385        385   

Total realized gain/(loss)

     2,088        2,088   

Net change in unrealized appreciation/depreciation

     (1,173     (1,173

Transfers into Level 3 (1)

              

Transfers out of Level 3 (1)

         (92,787)            (92,787)   
  

 

 

   

 

 

 

Ending balance

   $      $   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $0.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  30  

 


The Hartford Global Real Asset Fund

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa / AAA

     15.1

Aa / AA

     0.1   

A

     2.4   

Baa / BBB

     1.2   

Not Rated

     1.1   

Non-Debt Securities and Other Short-Term Instruments

     77.9   

Other Assets & Liabilities

     2.2   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Equity Securities

  

Consumer Discretionary

     0.7

Consumer Staples

     1.8   

Energy

     33.9   

Financials

     3.2   

Industrials

     2.4   

Information Technology

     0.9   

Materials

     15.8   

Telecommunication Services

     0.8   

Utilities

     6.7   
  

 

 

 

Total

     66.2
  

 

 

 

Fixed Income Securities

  

Foreign Government Obligations

     4.8

U.S. Government Securities

     15.1   
  

 

 

 

Total

     19.9
  

 

 

 

Short-Term Investments

     11.7   

Other Assets & Liabilities

     2.2   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Diversification by Country

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Australia

     2.7

Austria

     0.1   

Belgium

     0.6   

Brazil

     2.2   

Canada

     6.6   

China

     1.9   

Denmark

     0.1   

France

     2.6   

Germany

     0.5   

Hong Kong

     2.0   

India

     0.1   

Israel

     0.5   

Italy

     2.0   

Japan

     5.4   

Jersey

     0.6   

Luxembourg

     0.2   

Mexico

     2.5   

Netherlands

     2.8   

Norway

     1.2   

Poland

     0.1   

Russia

     1.7   

Singapore

     0.3   

South Africa

     1.0   

South Korea

     1.2   

Spain

     0.5   

Sweden

     0.4   

Switzerland

     1.1   

Taiwan

     0.2   

Thailand

     0.2   

Turkey

     0.4   

United Kingdom

     5.5   

United States

     50.6   

Other Assets & Liabilities

     2.2   
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

31

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2%  
          Automobiles & Components - 0.1%  
    24,600     

Toyoda Gosei Co., Ltd.

  $ 569,159   
     

 

 

 
          Banks - 1.4%  
    31,576     

Banca Popolare dell-Emilia Romagna Scrl (1)

    259,739   
    27,600     

Dah Sing Financial Holdings Ltd.

    193,768   
    81,110     

HSBC Holdings plc

    810,248   
    17,022     

KB Financial Group, Inc.

    649,122   
    91,900     

Mitsubishi UFJ Financial Group, Inc.

    652,890   
    374,500     

Mizuho Financial Group, Inc.

    713,902   
    42,045     

Standard Chartered plc

    688,369   
    17,700     

Sumitomo Mitsui Financial Group, Inc.

    772,863   
    69,948     

UniCredit S.p.A.

    502,096   
     

 

 

 
      5,242,997   
     

 

 

 
          Capital Goods - 1.2%  
    113,360     

Beijing Enterprises Holdings Ltd.

    1,035,964   
    1,289     

Caterpillar, Inc.

    111,988   
    14,743     

Cie de Saint-Gobain

    670,026   
    1,667     

CNH Industrial N.V.

    14,647   
    3,730     

CNK International Co., Ltd. (1)(2)(3)

    4,802   
    58,067     

COSCO Corp. Singapore Ltd.

    26,497   
    116     

Cummins, Inc.

    16,038   
    1,741     

Deere & Co.

    157,595   
    8,571     

Hino Motors Ltd.

    111,815   
    314     

Hitachi Construction Machinery Co., Ltd.

    5,575   
    103,000     

Japan Steel Works Ltd.

    475,335   
    1,966     

John Bean Technologies Corp.

    75,868   
    1,015     

Komatsu Ltd.

    20,421   
    26,159     

Kubota Corp.

    409,415   
    692     

MAN SE

    75,077   
    251     

NOW, Inc. (1)

    5,999   
    1,804     

PACCAR, Inc.

    117,891   
    23,385     

Sembcorp Marine Ltd.

    52,305   
    51     

Veritiv Corp. (1)

    2,027   
    16,284     

Vinci S.A.

    998,774   
    14,420     

Yangzijiang Shipbuilding Holdings Ltd.

    15,924   
     

 

 

 
      4,403,983   
     

 

 

 
          Commercial & Professional Services - 0.2%  
    7,776     

Ceres Global AG Corp. (1)

    40,282   
    12,500     

en-japan, Inc.

    185,707   
    131,983     

Hays plc

    310,207   
    20,005     

USG People N.V.

    271,668   
     

 

 

 
      807,864   
     

 

 

 
          Diversified Financials - 0.6%  
    9,416     

Groupe Bruxelles Lambert S.A.

    826,554   
    5,717     

Julius Baer Group Ltd.

    299,232   
    4,705     

PICO Holdings, Inc. (1)

    84,737   
    36,637     

UBS Group AG (1)

    731,909   
    46,600     

Uranium Participation Corp. (1)

    215,909   
     

 

 

 
      2,158,341   
     

 

 

 
          Energy - 33.9%  
    34,483     

Anadarko Petroleum Corp.

    3,244,850   
    27,794     

Antero Resources Corp. (1)

    1,231,552   
    25,479     

Apache Corp.

    1,742,764   
    873     

Baker Hughes, Inc.

    59,766   
    606     

Baytex Energy Corp.

    11,805   
    677,259     

Beach Energy Ltd.

    590,747   
    137,243     

BG Group plc

    2,485,957   
    746,784     

BP plc

    5,386,101   

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
          Energy - 33.9% - (continued)  
    7,499     

BP plc ADR

  $ 323,657   
    501,120     

Buru Energy Ltd. (1)

    212,704   
    56,551     

Cabot Oil & Gas Corp.

    1,912,555   
    1,266     

California Resources Corp.

    11,774   
    41,360     

Cameco Corp.

    727,128   
    11,997     

Cameron International Corp. (1)

    657,676   
    58,916     

Canadian Natural Resources Ltd.

    1,957,755   
    2,348     

Cenovus Energy, Inc.

    44,235   
    3,378     

Chesapeake Energy Corp.

    53,271   
    77,805     

Chevron Corp.

    8,641,023   
    1,782,000     

China Petroleum & Chemical Corp. Class H

    1,681,791   
    330,000     

China Shenhua Energy Co., Ltd. Class H

    857,028   
    1,832,597     

China Suntien Green Energy Corp. Ltd. Class H

    492,471   
    6,682     

Cimarex Energy Co.

    831,241   
    53,282     

Cobalt International Energy, Inc. (1)

    570,117   
    4,852     

Concho Resources, Inc. (1)

    614,554   
    64,684     

ConocoPhillips Co.

    4,393,337   
    36,887     

Cosan Ltd. Class A

    267,800   
    122,662     

Crew Energy, Inc. (1)

    543,922   
    1,971     

Denbury Resources, Inc.

    17,365   
    1,384     

Devon Energy Corp.

    94,403   
    510     

Diamond Offshore Drilling, Inc.

    17,070   
    19,196     

Diamondback Energy, Inc. (1)

    1,585,014   
    29,949     

Enbridge Energy Management LLC (1)

    1,105,717   
    29,761     

Enbridge, Inc.

    1,555,515   
    40,100     

EnCana Corp.

    569,344   
    22,903     

Energen Corp.

    1,630,006   
    82,810     

Energy Resources of Australia Ltd. (1)

    87,812   
    214,222     

Eni S.p.A.

    4,110,031   
    3,599     

Eni S.p.A. ADR

    138,310   
    913     

Ensco plc Class A

    24,907   
    34,241     

EOG Resources, Inc.

    3,388,147   
    12,466     

EP Energy Corp. Class A (1)

    184,123   
    6,979     

EQT Corp.

    627,691   
    182,992     

Exxon Mobil Corp.

    15,988,011   
    446,997     

Gazprom OAO ADR

    2,618,934   
    2,744     

Halliburton Co.

    134,319   
    917,700     

Harum Energy Tbk PT

    84,249   
    15,998     

Hess Corp.

    1,230,246   
    713     

HollyFrontier Corp.

    27,650   
    2,181     

Husky Energy, Inc.

    48,772   
    34,789     

Imperial Oil Ltd.

    1,535,239   
    111,900     

Indo Tambangraya Megah Tbk PT

    108,652   
    157,600     

Inpex Corp.

    1,977,931   
    15,700     

Japan Petroleum Exploration Co., Ltd.

    604,377   
    20,691     

Keyera Corp.

    728,344   
    17,990     

Kinder Morgan, Inc.

    772,670   
    76,405     

Laredo Petroleum, Inc. (1)

    1,207,199   
    48,000     

Legacy Oil + Gas, Inc. (1)

    114,977   
    18,330     

Lukoil OAO ADR

    938,119   
    55,888     

Lundin Petroleum AB (1)

    904,647   
    52,713     

Marathon Oil Corp.

    1,639,374   
    1,032     

Marathon Petroleum Corp.

    101,724   
    1,120     

Murphy Oil Corp.

    53,323   
    2,257     

Nabors Industries Ltd.

    37,692   
    1,032     

National Oilwell Varco, Inc.

    56,151   
    10,607     

Newfield Exploration Co. (1)

    416,219   
    959     

Noble Corp. plc

    16,600   
    1,270     

Noble Energy, Inc.

    64,414   
    10,249     

NOVATEK OAO GDR

    996,203   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  32  

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
          Energy - 33.9% - (continued)  
    20,485     

Occidental Petroleum Corp.

  $ 1,640,848   
    509     

Pacific Rubiales Energy Corp.

    1,721   
    21,200     

Painted Pony Petroleum Ltd. (1)

    131,259   
    134     

Paragon Offshore plc

    243   
    35,005     

Paramount Resources Ltd. Class A (1)

    1,035,498   
    2,221     

Pembina Pipeline Corp.

    77,298   
    910,000     

PetroChina Co., Ltd. Class H

    1,173,684   
    214,949     

Petroleo Brasileiro S.A. ADR (1)

    1,959,671   
    1,670     

Phillips 66

    132,448   
    13,588     

Pioneer Natural Resources Co.

    2,347,735   
    24,436     

PrairieSky Royalty Ltd.

    671,003   
    45,000     

PTT PCL

    485,970   
    33,357     

QEP Resources, Inc.

    750,532   
    54,600     

Raging River Exploration, Inc. (1)

    427,659   
    15,890     

Range Resources Corp.

    1,009,968   
    42,649     

Rice Energy, Inc. (1)

    1,050,445   
    114,133     

Rosneft OAO GDR

    563,817   
    263,450     

Royal Dutch Shell plc Class A

    8,306,640   
    8,774     

Royal Dutch Shell plc Class A, ADR

    556,535   
    1,670     

Royal Dutch Shell plc Class B, ADR

    107,865   
    22,391     

RSP Permian, Inc. (1)

    649,787   
    155,807     

Santos Ltd.

    1,014,668   
    4,014     

Schlumberger Ltd.

    379,765   
    1,883     

Seadrill Ltd.

    24,648   
    75,294     

Seven Generations Energy Ltd. Class A (1)

    1,279,343   
    102     

Seventy Seven Energy, Inc. (1)

    517   
    1,942     

Spectra Energy Corp.

    72,339   
    88,026     

Statoil ASA

    1,866,183   
    4,519     

Statoil ASA ADR

    95,938   
    5,518     

Suncor Energy, Inc.

    179,887   
    943     

Talisman Energy, Inc.

    7,527   
    11,294     

Targa Resources Corp.

    1,185,531   
    13,693     

Tatneft OAO ADR

    470,218   
    14,961     

Technip S.A. (2)

    1,019,930   
    1,465     

Tenaris S.A. ADR

    45,049   
    47,418     

Total S.A.

    2,567,682   
    37,656     

Total S.A. ADR

    2,037,190   
    41,746     

TransCanada Corp.

    1,937,651   
    600     

Transocean Ltd.

    11,292   
    113,642     

Tullow Oil plc

    721,520   
    17,260     

Valero Energy Corp.

    982,094   
    1,346     

Vermilion Energy, Inc.

    64,795   
    2,813     

Weatherford International plc (1)

    40,929   
    35,053     

Whiting Petroleum Corp. (1)

    1,328,859   
     

 

 

 
        127,503,253   
     

 

 

 
          Food & Staples Retailing - 0.0%  
    1,944     

Andersons, Inc.

    82,989   
     

 

 

 
          Food, Beverage & Tobacco - 1.8%  
    14,291     

Adecoagro S.A. (1)

    138,766   
    2,087     

Anheuser-Busch InBev N.V. ADR

    250,524   
    39,882     

Archer-Daniels-Midland Co.

    1,949,432   
    100,500     

Astra Agro Lestari Tbk PT

    157,173   
    4,300     

BRF S.A.

    91,910   
    8,342     

BRF S.A. ADR

    179,103   
    10,336     

Bunge Ltd.

    892,720   
    159,810     

Charoen Pokphand Foods PCL

    108,107   
    61,000     

China Agri-Industries Holdings Ltd.

    34,834   
    248,000     

China Foods Ltd. (1)

    185,705   
    4,300     

Coca-Cola Co.

    174,408   

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
          Food, Beverage & Tobacco - 1.8% - (continued)  
    70,400     

First Resources Ltd.

  $ 94,416   
    953,145     

Golden Agri-Resources Ltd.

    301,529   
    3,401     

Ingredion, Inc.

    270,039   
    15,200     

Kuala Lumpur Kepong Bhd

    94,563   
    4,096     

Limoneira Co.

    93,962   
    5,397     

McLeod Russel India Ltd.

    20,553   
    1,482     

MHP S.A. GDR (4)

    17,043   
    9,643     

PureCircle Ltd. (1)

    71,938   
    1,300     

S&W Seed Co. (1)

    5,889   
    8,755     

SLC Agricola S.A.

    50,706   
    23,227     

Suedzucker AG

    350,080   
    11,994     

Tate & Lyle plc

    109,820   
    43,612     

Treasury Wine Estates Ltd.

    191,272   
    8,399     

Tyson Foods, Inc. Class A

    331,761   
    261,063     

Wilmar International Ltd.

    641,203   
    44,700     

Zambeef Products plc (1)

    8,405   
     

 

 

 
        6,815,861   
     

 

 

 
          Insurance - 0.8%  
    38,700     

Dai-ichi Life Insurance Co., Ltd.

    636,069   
    23,053     

Delta Lloyd N.V.

    436,551   
    16,957     

Hanwha Life Insurance Co., Ltd.

    125,438   
    1,089,533     

Shin Kong Financial Holding Co., Ltd.

    353,359   
    98,552     

Storebrand ASA (1)

    348,450   
    54,000     

T&D Holdings, Inc.

    779,208   
    17,171     

Tongyang Life Insurance

    236,121   
     

 

 

 
        2,915,196   
     

 

 

 
          Materials - 15.8%  
    7,672     

Acacia Mining plc

    34,025   
    4,821     

African Rainbow Minerals Ltd.

    43,986   
    11,933     

Agnico Eagle Mines Ltd.

    361,204   
    8,669     

Agrium, Inc.

    898,156   
    32,000     

Aichi Steel Corp.

    153,835   
    12,845     

Alacer Gold Corp. (1)

    29,065   
    7,247     

Alamos Gold, Inc.

    50,095   
    53,842     

Alcoa, Inc.

    722,560   
    4,493     

Alexco Resource Corp. (1)

    1,899   
    1,527     

Allegheny Technologies, Inc.

    51,903   
    4,733     

Allied Nevada Gold Corp. (1)

    709   
    109,481     

Alumina Ltd.

    132,850   
    87,119     

Aluminum Corp. of China Ltd. Class H (1)

    56,210   
    18,557     

Anglo American Platinum Ltd. (1)

    512,540   
    118,142     

Anglo American plc

    2,001,622   
    20,631     

AngloGold Ashanti Ltd. ADR (1)

    233,749   
    16,391     

Antofagasta plc

    196,189   
    472,364     

Aquarius Platinum Ltd. (1)

    64,159   
    60,610     

ArcelorMittal

    645,989   
    3,875     

ArcelorMittal South Africa Ltd. (1)

    6,430   
    7,519     

Argonaut Gold, Inc. (1)

    12,651   
    1,168     

Asahi Holdings, Inc.

    21,979   
    6,307     

Asanko Gold, Inc. (1)

    9,305   
    1,666     

Assore Ltd.

    16,114   
    12,872     

AuRico Gold, Inc.

    44,916   
    15,276     

Avocet Mining plc (1)

    1,124   
    43,438     

B2Gold Corp. (1)

    68,046   
    16,713     

Banro Corp. (1)

    4,156   
    114,945     

Barrick Gold Corp.

    1,493,856   
    40,450     

Beadell Resources Ltd.

    7,330   
    12,053     

Belo Sun Mining Corp. (1)

    1,998   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  33  

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)      
          Materials - 15.8% - (continued)  
    134,597      BHP Billiton Ltd.   $ 3,437,119   
    10,492      BHP Billiton Ltd. ADR     538,135   
    85,945      BHP Billiton plc     2,065,814   
    9,507      BHP Billiton plc ADR     459,188   
    11,221      Boliden AB     243,784   
    9,833      Bradespar S.A. (Preference Shares)     39,326   
    34,917      Buzzi Unicem S.p.A.     561,993   
    2,446      CAP S.A.     8,730   
    60,539      Centamin plc     59,126   
    60,822      Centerra Gold, Inc.     314,570   
    3,498      CF Industries Holdings, Inc.     1,005,570   
    7,649     

China Gold International Resources Corp. Ltd. (1)

    12,806   
    182,957     

China Precious Metal Resources Holdings Co., Ltd. (1)

    15,599   
    495,289     

China Steel Corp.

    416,022   
    10,660      Cia de Minas Buenaventura SAA ADR     119,179   
    31,733      Cia Siderurgica Nacional S.A.     84,995   
    1,554      Cliffs Natural Resources, Inc.     9,231   
    6,774      Coeur Mining, Inc. (1)     35,359   
    49      Colossus Minerals, Inc. (1)(3)     1   
    4,083      Continental Gold Ltd. (1)     7,445   
    12,143      Daido Steel Co., Ltd.     58,063   
    6,771      Detour Gold Corp. (1)     71,554   
    4,881      Dominion Diamond Corp.     96,204   
    35,600      DRDGOLD Ltd.     6,676   
    6,050      Dundee Precious Metals, Inc. (1)     14,592   
    3,745      EcoSynthetix, Inc. (1)     4,159   
    152,171      Eldorado Gold Corp.     755,637   
    28,187      Endeavour Mining Corp. (1)     14,718   
    6,480      Endeavour Silver Corp. (1)     13,159   
    65,033      Eregli Demir ve Celik Fabrikalari T.A.S.     109,744   
    7,089      Feng Hsin Iron & Steel Co.     9,644   
    6,818      First Majestic Silver Corp. (1)     33,228   
    28,712      First Quantum Minerals Ltd.     439,783   
    62,151      Fortescue Metals Group Ltd.     104,993   
    6,824      Fortuna Silver Mines, Inc. (1)     25,848   
    42,823      Fosun International Ltd.     106,735   
    8,732      Franco-Nevada Corp.     453,355   
    51,405      Freeport-McMoRan, Inc.     1,196,194   
    10,759      Fresnillo plc     119,329   
    6,600      Fujimi, Inc.     111,610   
    7,708,949      G-Resources Group Ltd. (1)     253,956   
    14,852      Gabriel Resources Ltd. (1)     5,416   
    7,816      Gem Diamonds Ltd. (1)     16,677   
    38,454      Gerdau S.A. (Preference Shares)     128,267   
    423,023      Glencore plc (1)     2,009,599   
    43,350      Gold Fields Ltd.     200,143   
    1,882      Gold Resource Corp.     6,342   
    47,201      Goldcorp, Inc.     888,466   
    15,730      Golden Star Resources Ltd. (1)     3,390   
    170,198      Grupo Mexico S.A.B. de C.V. Series B     525,948   
    22,598      Gryphon Minerals Ltd. (1)     1,209   
    6,324      Guyana Goldfields, Inc. (1)     16,354   
    23,729      Harmony Gold Mining Co., Ltd. (1)     45,673   
    18,953      Hecla Mining Co.     57,238   
    12,689      Highland Gold Mining Ltd.     9,154   
    42,283      Hindalco Industries Ltd.     85,352   
    22,200      Hitachi Chemical Co., Ltd.     429,702   
    7,927      Hitachi Metals Ltd.     123,972   
    10,299      Hochschild Mining plc (1)     15,448   
    5,115      Holcim Ltd. (1)     410,890   

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
          Materials - 15.8% - (continued)  
    4,796     

Holmen AB Class B

  $ 158,690   
    390     

Hyundai Hysco Co., Ltd.

    24,026   
    2,977     

Hyundai Steel Co.

    217,594   
    21,698     

IAMGOLD Corp. (1)

    48,557   
    19,574     

Iluka Resources Ltd.

    124,732   
    108,255     

Impala Platinum Holdings Ltd. (1)

    602,492   
    7,245     

Industrias CH S.A.B. de C.V. Series B (1)

    29,548   
    8,204     

Industrias Penoles S.A.B. de C.V.

    139,033   
    2,677     

International Paper Co.

    143,808   
    20,100     

Israel Chemicals Ltd.

    140,634   
    200     

Israel Corp. Ltd.

    73,670   
    177,800     

Ivanhoe Mines Ltd. Class A (1)

    170,947   
    1,940     

Jastrzebska Spolka Weglowa S.A. (1)

    7,733   
    21,312     

JFE Holdings, Inc.

    481,115   
    60,266     

Jiangxi Copper Co., Ltd. Class H

    124,370   
    15,710     

Jindal Steel & Power Ltd.

    34,277   
    34,200     

JSR Corp.

    583,364   
    2,603     

JSW Steel Ltd.

    38,141   
    7,241     

K+S AG

    236,052   
    6,074     

KGHM Polska Miedz S.A.

    212,970   
    10,393     

Kingsgate Consolidated Ltd. (1)

    5,838   
    17,753     

Kingsrose Mining Ltd. (1)

    3,907   
    296,963     

Kinross Gold Corp. (1)

    721,620   
    110,846     

Kobe Steel Ltd.

    201,472   
    363     

Korea Zinc Co., Ltd.

    161,663   
    2,969     

Koza Altin Isletmeleri A/S

    31,016   
    3,595     

Kumba Iron Ore Ltd.

    48,489   
    11,700     

Kyoei Steel Ltd.

    191,648   
    5,254     

Lafarge S.A.

    383,357   
    719,071     

Lepanto Consolidated Mining Co. (1)

    3,863   
    34,153     

LionGold Corp. Ltd. (1)

    516   
    160,074     

Lonmin plc (1)

    353,850   
    8,962     

LyondellBasell Industries N.V. Class A

    927,746   
    2,528     

MAG Silver Corp. (1)

    17,559   
    15,920     

Maruichi Steel Tube Ltd.

    402,100   
    9,905     

McEwen Mining, Inc. (1)

    9,905   
    5,032     

MeadWestvaco Corp.

    245,562   
    9,545     

Medusa Mining Ltd. (1)

    7,050   
    12,186     

Metalurgica Gerdau S.A. (Preference Shares)

    39,798   
    6,356     

Midas Gold Corp. (1)

    2,239   
    27,548     

Minera Frisco S.A.B. de C.V. (1)

    22,804   
    46,618     

Mitsubishi Materials Corp.

    167,824   
    209,000     

Mitsui Chemicals, Inc.

    690,952   
    11,986     

MMC Norilsk Nickel OJSC ADR

    225,097   
    11,145,387     

Mongolian Mining Corp. (1)

    623,472   
    18,415     

Monsanto Co.

    2,098,573   
    15,511     

Mosaic Co.

    682,484   
    10,300     

Neturen Co., Ltd.

    76,682   
    10,728     

Nevsun Resources Ltd.

    42,325   
    28,198     

New Gold, Inc. (1)

    94,656   
    44,886     

Newcrest Mining Ltd. (1)

    503,149   
    47,398     

Newmont Mining Corp.

    1,255,573   
    8,665     

NGEx Resources, Inc. (1)

    6,751   
    315,964     

Nippon Steel & Sumitomo Metal Corp.

    821,891   
    7,300     

Nitto Denko Corp.

    467,824   
    40,955     

Norsk Hydro ASA

    193,955   
    12,090     

North American Palladium Ltd. (1)

    701   
    17,765     

Northam Platinum Ltd. (1)

    73,023   
    18,666     

Northern Star Resources Ltd.

    33,196   
    12,649     

NOVAGOLD Resources, Inc. (1)

    48,436   
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  34  

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)      
          Materials - 15.8% - (continued)  
    2,434     

Novolipetsk Steel OJSC GDR (4)

  $ 32,129   
    16,001     

Nucor Corp.

    781,809   
    17,463     

OceanaGold Corp.

    33,290   
    16,098     

Oji Holdings Corp.

    71,595   
    2,587     

Osisko Gold Royalties Ltd.

    34,672   
    3,601     

OZ Minerals Ltd.

    13,257   
    74,489     

Pan African Resources plc

    13,149   
    9,457     

Pan American Silver Corp.

    90,533   
    434     

Paramount Gold Nevada Corp. (1)

    751   
    26,905     

Perseus Mining Ltd. (1)

    8,295   
    21,316     

Petra Diamonds Ltd. (1)

    51,124   
    10,384     

Petropavlovsk plc (1)

    1,006   
    2,871     

POSCO

    676,303   
    33,352     

Potash Corp. of Saskatchewan, Inc.

    1,089,158   
    7,547     

Premier Gold Mines Ltd. (1)

    15,388   
    4,146     

Pretium Resources, Inc. (1)

    23,883   
    4,638     

Primero Mining Corp. (1)

    17,107   
    5,167     

Randgold Resources Ltd.

    393,212   
    17,872     

Regis Resources Ltd. (1)

    17,876   
    408,701     

Resolute Mining Ltd. (1)

    110,249   
    18,622     

Rio Tinto Ltd.

    839,429   
    52,640     

Rio Tinto plc

    2,355,696   
    14,934     

Rio Tinto plc ADR

    668,894   
    6,132     

Royal Bafokeng Platinum Ltd. (1)

    26,696   
    3,562     

Royal Gold, Inc.

    229,856   
    14,824     

Rubicon Minerals Corp. (1)

    16,341   
    15,215     

Salzgitter AG

    518,995   
    22,817     

San Gold Corp. (1)

    189   
    3,177     

Sandstorm Gold Ltd. (1)

    11,297   
    1,973     

Seabridge Gold, Inc. (1)

    12,543   
    15,753     

SEMAFO, Inc. (1)

    48,441   
    41,781     

Sesa Sterlite Ltd.

    137,420   
    6,138     

Severstal PAO GDR (4)

    68,009   
    113,353     

Shougang Fushan Resources Group Ltd.

    29,096   
    42,422     

Sibanye Gold Ltd.

    100,680   
    19,345     

Silver Lake Resources Ltd. (1)

    2,725   
    4,862     

Silver Standard Resources, Inc. (1)

    26,436   
    20,953     

Silver Wheaton Corp.

    413,329   
    9,664     

Silvercorp Metals, Inc.

    12,095   
    2,580     

Sims Metal Management Ltd.

    21,989   
    3,100     

Sociedad Quimica y Minera de Chile S.A. ADR

    67,704   
    6,419     

Southern Copper Corp.

    209,131   
    2,454     

SSAB AB Class A (1)

    14,845   
    27,408     

St. Barbara Ltd. (1)

    8,615   
    6,106     

Stillwater Mining Co. (1)

    82,004   
    94,000     

Sumitomo Bakelite Co., Ltd.

    428,541   
    22,160     

Sumitomo Metal Mining Co., Ltd.

    324,803   
    5,522     

Syngenta AG

    1,847,824   
    5,083     

Tahoe Resources, Inc.

    71,832   
    4,900     

Tanzanian Royalty Exploration Corp. (1)

    1,990   
    13,787     

Tata Steel Ltd.

    78,054   
    27,463     

Teck Resources Ltd. Class B

    416,648   
    15,836     

ThyssenKrupp AG

    420,753   
    6,472     

Timmins Gold Corp. (1)

    3,970   
    59,900     

Tokyo Steel Manufacturing Co., Ltd.

    413,521   
    34,755     

Torex Gold Resources, Inc. (1)

    32,263   
    19,535     

Turquoise Hill Resources Ltd. (1)

    81,929   
    24,714     

Umicore S.A.

    1,228,450   
    2,347     

United States Steel Corp.

    56,375   
    6,531     

UPL Ltd.

    50,402   

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
          Materials - 15.8% - (continued)  
    16,111     

Usinas Siderurgicas de Minas Gerais S.A.
Class A, (Preference Shares)

  $ 31,923   
    54,818     

Vale S.A.

    412,097   
    131,145     

Vale S.A. (Preference Shares)

    790,017   
    4,558     

Vedanta Resources plc

    43,778   
    4,714     

Voestalpine AG

    197,366   
    50,753     

Yamana Gold, Inc.

    193,926   
    14,638     

Yamato Kogyo Co., Ltd.

    344,402   
    13,081     

Yara International ASA

    670,237   
    44,000     

Yodogawa Steel Works Ltd.

    178,167   
    48,705     

Zhaojin Mining Industry Co., Ltd. Class H

    35,011   
    358,081     

Zijin Mining Group Co., Ltd. Class H (2)(3)

    137,038   
     

 

 

 
        59,659,940   
     

 

 

 
          Media - 0.3%  
    20,805     

Comcast Corp. Class A

    1,201,697   
     

 

 

 
          Pharmaceuticals, Biotechnology & Life Sciences - 0.0%  
    2,166     

Evogene Ltd. (1)

    21,682   
    6,779     

Genus plc

    140,166   
    700     

Ouro Fino Saude Animal Participacoes S.A.

    6,649   
     

 

 

 
        168,497   
     

 

 

 
          Real Estate - 0.4%  
    26,815     

Equity LifeStyle Properties, Inc. REIT

    1,416,368   
     

 

 

 
     
          Retailing - 0.3%  
    14,400     

Adastria Holdings Co., Ltd.

    436,851   
    321     

CST Brands, Inc.

    13,389   
    428     

Murphy USA, Inc. (1)

    27,961   
    3,400     

Shimamura Co., Ltd.

    338,895   
    17,700     

Xebio Co., Ltd.

    312,415   
     

 

 

 
        1,129,511   
     

 

 

 
          Semiconductors & Semiconductor Equipment - 0.6%  
    10,119     

First Solar, Inc. (1)

    603,801   
    74,000     

SCREEN Holdings Co., Ltd.

    502,357   
    70,400     

Shinko Electric Industries Co., Ltd.

    562,575   
    19,700     

Tokyo Seimitsu Co., Ltd.

    424,620   
     

 

 

 
        2,093,353   
     

 

 

 
          Software & Services - 0.3%  
    97,000     

Fujitsu Ltd.

    642,951   
    16,000     

Itochu Techno-Solutions Corp.

    364,383   
     

 

 

 
      1,007,334   
     

 

 

 
          Telecommunication Services - 0.8%  
    23,328     

KT Corp. (1)

    689,575   
    75,600     

NTT DoCoMo, Inc.

    1,339,063   
    50,188     

Telenor ASA

    1,133,504   
     

 

 

 
      3,162,142   
     

 

 

 
          Transportation - 1.0%  
    19,130     

Canadian National Railway Co.

    1,235,165   
    11,287     

D/S Norden A/S (1)

    226,456   
    1,142     

Flughafen Zuerich AG

    889,374   
    9,173     

Hamburger Hafen und Logistik AG

    202,319   
    443,000     

Pacific Basin Shipping Ltd.

    164,053   
    130,306     

PostNL N.V. (1)

    647,112   
    125,191     

Qantas Airways Ltd. (1)

    334,628   
     

 

 

 
      3,699,107   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

35

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 66.2% - (continued)  
            Utilities - 6.7%  
    180,000     

Cheung Kong Infrastructure Holdings Ltd.

  $ 1,524,849   
    1,124,000     

China Longyuan Power Group Corp. Ltd.
Class H

    1,392,965   
    53,500     

Cia de Saneamento Basico do Estado de Sao Paulo

    316,069   
    34,600     

Cia Paranaense de Energia (Preference Shares)

    389,414   
    472,915     

Enel Green Power S.p.A.

    918,323   
    193,500     

ENN Energy Holdings Ltd.

    1,392,694   
    37,052     

Gas Natural SDG S.A.

    911,037   
    27,999     

GDF Suez

    569,679   
    1,148,000     

Guangdong Investment Ltd.

    1,711,856   
    244,753     

Hong Kong & China Gas Co., Ltd.

    583,003   
    1,402     

Kenon Holdings Ltd. (1)

    30,359   
    22,273     

Korea Electric Power Corp.

    968,517   
    114,111     

National Grid plc

    1,535,174   
    14,590     

NextEra Energy, Inc.

    1,472,569   
    120,810     

NTPC Ltd.

    285,429   
    168,000     

Osaka Gas Co., Ltd.

    713,020   
    22,260     

PG&E Corp.

    1,177,999   
    108,000     

Power Assets Holdings Ltd.

    1,090,084   
    11,536     

Red Electrica Corporacion S.A.

    968,156   
    35,884     

Severn Trent plc

    1,168,521   
    190,183     

Snam S.p.A.

    990,690   
    43,801     

SSE plc

    1,037,808   
    74,183     

Suez Environnement Co.

    1,512,986   
    47,322     

UGI Corp.

    1,647,279   
    20,275     

Wisconsin Energy Corp.

    995,908   
     

 

 

 
      25,304,388   
     

 

 

 
   

Total Common Stocks
(cost $256,723,456)

  $ 249,341,980   
     

 

 

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.8%      
            Brazil - 1.0%  
   

Brazil Notas do Tesouro Nacional Serie B

  

  BRL        3,862,358     

6.00%, 08/15/2016 (5)

  $ 1,270,879   
    2,866,635     

6.00%, 08/15/2022 (5)

    940,515   
   

Brazil Notas do Tesouro Nacional Series B

 
    4,622,252     

6.00%, 08/15/2030 (5)

    1,529,693   
     

 

 

 
      3,741,087   
     

 

 

 
            Israel - 0.5%  
   

Israel Government Bond - CPI Linked

  

  ILS        2,624,924     

1.00%, 05/30/2017 (5)

    710,143   
    2,562,102     

1.75%, 09/29/2023 (5)

    770,454   
    1,480,044     

2.75%, 08/30/2041 (5)

    596,292   
     

 

 

 
      2,076,889   
     

 

 

 
            Mexico - 2.3%  
   

Mexican Udibonos

  

  MXN        47,245,568     

4.00%, 06/13/2019 (5)

    3,296,039   
    75,101,239     

4.00%, 11/15/2040 (5)

    5,375,985   
     

 

 

 
        8,672,024   
     

 

 

 
            South Africa - 0.4%  
   

South Africa Government Bond - CPI Linked

 
  ZAR      $ 6,788,705     

2.00%, 01/31/2025 (5)

    595,391   
    7,264,233     

3.45%, 12/07/2033 (5)

    797,922   
     

 

 

 
        1,393,313   
     

 

 

 

Shares or Principal Amount

 

Market Value *

 
FOREIGN GOVERNMENT OBLIGATIONS - 4.8% - (continued)      
            South Korea - 0.1%  
  KRW        352,319,327     

Inflation Linked Korea Treasury Bond
1.13%, 06/10/2023 (5)

  $ 314,555   
     

 

 

 
            Thailand - 0.1%  
  THB        13,467,969     

Thailand Government Bond
1.20%, 07/14/2021 (4)(5)

    396,207   
     

 

 

 
            Turkey - 0.4%  
  TRY        4,261,652     

Turkey Government Bond
2.00%, 09/18/2024 (5)

    1,541,153   
     

 

 

 
   

Total Foreign Government Obligations
(cost $19,085,738)

  $ 18,135,228   
     

 

 

 
U.S. GOVERNMENT SECURITIES - 15.1%      
            U.S. Treasury Securities - 15.1%  
            U.S. Treasury Bonds - 1.0%  
  $ 2,630,745     

0.25%, 01/15/2025 (5)

  $ 2,664,450   
    841,666     

2.38%, 01/15/2025 (5)

    1,023,544   
     

 

 

 
        3,687,994   
     

 

 

 
            U.S. Treasury Notes - 14.1%  
    1,717,040     

0.13%, 04/15/2016 (5)

    1,738,102   
    3,683,625     

0.13%, 04/15/2017 (5)

    3,762,189   
    4,761,590     

0.13%, 04/15/2018 (5)

    4,875,050   
    1,236,952     

0.13%, 04/15/2019 (5)

    1,265,267   
    1,272,934     

0.13%, 04/15/2020 (5)

    1,298,690   
    3,962,061     

0.13%, 01/15/2022 (5)

    4,008,492   
    4,301,642     

0.13%, 07/15/2022 (5)

    4,368,184   
    4,278,515     

0.13%, 01/15/2023 (5)

    4,313,945   
    2,955,306     

0.13%, 07/15/2024 (5)

    2,971,930   
    2,546,411     

0.38%, 07/15/2023 (5)

    2,623,002   
    3,435,207     

0.63%, 07/15/2021 (5)

    3,610,457   
    3,394,666     

0.63%, 01/15/2024 (5)

    3,555,383   
    1,854,983     

1.13%, 01/15/2021 (5)

    1,995,847   
    1,368,857     

1.25%, 07/15/2020 (5)

    1,488,739   
    3,199,417     

1.38%, 01/15/2020 (5)

    3,467,868   
    2,643,468     

1.88%, 07/15/2019 (5)

    2,920,620   
    803,440     

2.13%, 01/15/2019 (5)

    885,667   
    2,237,916     

2.38%, 01/15/2017 (5)

    2,372,540   
    557,816     

2.50%, 07/15/2016 (5)

    585,968   
    826,634     

2.63%, 07/15/2017 (5)

    898,383   
     

 

 

 
        53,006,323   
     

 

 

 
   

Total U.S. Government Securities
(cost $56,963,696)

  $ 56,694,317   
     

 

 

 
EXCHANGE TRADED FUNDS - 0.0%      
            Other Investment Pools & Funds - 0.0%  
    800     

ETFS Platinum Trust (1)

  $ 88,448   
     

 

 

 
   

Total Exchange Traded Funds
(cost $105,954)

  $ 88,448   
     

 

 

 
WARRANTS - 0.0%      
            Materials - 0.0%  
    10,100     

Shandong Denghai Seeds Co., Ltd. (1)

  $ 71,091   
     

 

 

 
   

Total Warrants
(cost $30,547)

  $ 71,091   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

36

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
RIGHTS - 0.0%      
          Materials - 0.0%  
    5,242     

Northam Platinum Ltd. (1)

  $ 93   
     

 

 

 
   

Total Rights
(cost $1,965)

  $ 93   
     

 

 

 
   

Total Long-Term Investments
(cost $332,911,356)

  $ 324,331,157   
     

 

 

 
SHORT-TERM INVESTMENTS - 11.7%  
          Other Investment Pools & Funds - 11.7%  
    43,952,402     

Federated Prime Obligations Fund

  $ 43,952,402   
     

 

 

 
   

Total Short-Term Investments
(cost $43,952,402)

    43,952,402   
     

 

 

 
   

Total Investments Excluding Purchased Options
(cost $376,863,758)

    97.8   $ 368,283,559   
     

 

 

   

 

 

 
   

Total Purchased Options
(cost $19,188)

    0.0     13,500   
     

 

 

   

 

 

 
   

Total Investments
(cost $376,882,946)^

    97.8   $ 368,297,059   
     

 

 

   

 

 

 
   

Other Assets and Liabilities

    2.2     8,271,903   
     

 

 

   

 

 

 
   

Total Net Assets

    100.0   $ 376,568,962   
     

 

 

   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

37

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Consolidated Schedule of Investments includes investments held by The Hartford Cayman Global Real Asset Fund, Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund, which primarily invests in commodity-related instruments. The Fund may invest up to 25% of its total assets in the Subsidiary. As of April 30, 2015, the Fund invested 18% of its total assets in the Subsidiary.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $389,870,515 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $     13,454,501   

Unrealized Depreciation

     (35,027,957
  

 

 

 

Net Unrealized Depreciation

   $ (21,573,456
  

 

 

 

 

(1)  Non-income producing.

 

(2)  The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, 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  
01/2013 - 05/2013    3,730    CNK International Co., Ltd.    $ 20,155   
03/2015    14,961    Technip S.A.          1,080,176   
01/2015    358,081    Zijin Mining Group Co., Ltd.      116,772   
        

 

 

 
         $ 1,217,103   
        

 

 

 

 

     At April 30, 2015, the aggregate value of these securities were $1,161,770, which represents 0.3% of total net assets.

 

(3)  These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of these securities were $141,841, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

(4) These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $513,388, which represents 0.1% of total net assets.

 

(5) The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

Exchange Traded Option Contracts Outstanding at April 30, 2015  

Description

   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                

Puts

                

Light Sweet Crude Oil Future Option

     50.00 USD         09/17/15         USD        10,000      $     13,500      $     19,188      $ (5,688
          

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

  

    10,000      $ 13,500      $ 19,188      $ (5,688
          

 

 

   

 

 

   

 

 

   

 

 

 

Written option contracts:

                

Calls

                

Light Sweet Crude Oil Future Option Call

     70.00 USD         09/17/15         USD        (10,000   $ (16,200     (15,041   $ (1,159
          

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                

Gold 100oz Future Option

     1,100.00 USD         05/26/15         USD        (400   $ (600     (12,664   $     12,064   
          

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

  

    (10,400   $ (16,800   $ (27,705   $ 10,905   
          

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

38

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

Brent Crude Oil Future

     42         05/14/2015       $ 2,666,686       $     2,804,760       $ 138,074   

Brent Crude Oil Future

     10         11/13/2015         576,022         696,800         120,778   

Brent Crude Oil Future

     5         10/31/2016         350,047         360,200         10,153   

Copper Future

     13         06/15/2015             1,905,893         2,062,937         157,044   

Corn Future

     80         12/14/2015         1,615,323         1,534,000         (81,323

Gold 100oz Future

     13         06/26/2015         1,509,487         1,537,120         27,633   

Hard Red Winter Wheat Future

     22         07/14/2015         580,479         548,900         (31,579

Henry Hub Natural Gas Future

     10         12/28/2016         109,523         87,851         (21,672

Henry Hub Natural Gas Future

     10         01/27/2017         109,523         87,526         (21,997

Henry Hub Natural Gas Future

     10         02/24/2017         109,523         86,075         (23,448

Henry Hub Natural Gas Future

     11         03/29/2017         120,475         87,808         (32,667

Henry Hub Natural Gas Future

     11         04/26/2017         120,475         87,945         (32,530

Henry Hub Natural Gas Future

     11         05/26/2017         120,475         88,990         (31,485

Henry Hub Natural Gas Future

     11         06/28/2017         120,475         90,118         (30,357

Henry Hub Natural Gas Future

     11         07/27/2017         120,475         90,448         (30,027

Henry Hub Natural Gas Future

     11         08/29/2017         120,475         90,118         (30,357

Henry Hub Natural Gas Future

     11         09/27/2017         120,475         90,723         (29,752

Henry Hub Natural Gas Future

     11         10/27/2017         120,475         92,703         (27,772

Henry Hub Natural Gas Future

     10         11/28/2017         109,523         88,551         (20,972

Henry Hub Natural Gas Future

     4         12/27/2017         45,409         36,740         (8,669

Henry Hub Natural Gas Future

     4         01/29/2018         45,409         36,520         (8,889

Henry Hub Natural Gas Future

     4         02/26/2018         45,409         35,890         (9,519

Henry Hub Natural Gas Future

     5         03/27/2018         56,761         40,925         (15,836

Henry Hub Natural Gas Future

     5         04/26/2018         56,761         40,962         (15,799

Henry Hub Natural Gas Future

     4         05/29/2018         45,409         33,100         (12,309

Henry Hub Natural Gas Future

     4         06/27/2018         45,409         33,480         (11,929

Henry Hub Natural Gas Future

     4         07/27/2018         45,409         33,600         (11,809

Henry Hub Natural Gas Future

     4         08/29/2018         45,409         33,530         (11,879

Henry Hub Natural Gas Future

     4         09/26/2018         45,409         33,770         (11,639

Henry Hub Natural Gas Future

     4         10/29/2018         45,409         34,500         (10,909

Henry Hub Natural Gas Future

     4         11/28/2018         45,409         36,190         (9,219

Lead Future

     15         06/15/2015         691,314         795,187         103,873   

Low Sulphur Gas Oil Future

     21         05/12/2015         1,125,353         1,258,425         133,072   

Natural Gas Future

     31         05/27/2015         790,882         852,810         61,928   

Natural Gas Future

     101         12/29/2015         3,519,613         3,268,360         (251,253

Nickel Future

     29         06/15/2015         2,424,544         2,424,516         (28

Nickel Future

     22         07/13/2015         1,797,597         1,841,268         43,671   

Palladuim Future

     20         06/26/2015         1,561,600         1,553,000         (8,600

Platinum Future

     39         07/29/2015         2,236,848         2,223,780         (13,068

Primary Aluminum Future

     27         12/14/2015         1,358,519         1,314,563         (43,956

Silver Future

     10         07/29/2015         810,287         807,650         (2,637

Soybean Future

     21         11/13/2015         1,037,464         999,863         (37,601

Soybean Oil Future

     21         07/14/2015         394,852         398,790         3,938   

Sugar No. 11 Future

     49         06/30/2015         703,884         723,319         19,435   

WTI Crude Future

     44         05/19/2015         2,523,496         2,623,720         100,224   

WTI Crude Future

     15         08/20/2015         830,873         926,700         95,827   

WTI Crude Future

     4         11/20/2015         368,123         252,280         (115,843

WTI Crude Future

     5         11/21/2016         297,198         324,650         27,452   

Zinc Future

     36         06/15/2015         1,927,661         2,120,850         193,189   

Zinc Future

     15         09/14/2015         778,778         880,500             101,722   
              

 

 

 

Total

  

   $ 280,684   
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

39

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Futures Contracts Outstanding at April 30, 2015 - (continued)  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

Brent Crude Oil Future

     4         10/26/2017       $ 48,101       $ 30,080       $ 18,021   

Brent Crude Oil Future

     10         10/31/2017         680,152         732,900         (52,748

Cattle Feeder Future

     3         05/21/2015         301,324         319,463         (18,139

Cattle Feeder Future

     2         08/27/2015         214,468         214,700         (232

Copper Future

     1         06/15/2015         158,684         158,688         (4

Lead Future

     4         06/15/2015         186,298         212,050         (25,752

Lean Hogs Future

     9         06/12/2015         294,174         293,130         1,044   

Live Cattle Future

     15         10/30/2015         889,079         898,050         (8,971

Nickel Future

     29         06/15/2015         2,367,593         2,424,516         (56,923

Primary Aluminum Future

     15         05/18/2015         670,628         717,844         (47,216

Primary Aluminum Future

     5         12/14/2015         225,586         243,437         (17,851

Primary Aluminum Future

     10         12/19/2016         460,710         498,625         (37,915

Soybean Future

     9         07/14/2015         428,603         439,200         (10,597

Zinc Future

     35         06/15/2015         1,818,879         2,061,938         (243,059

Zinc Future

     2         09/14/2015         117,392         117,400         (8
              

 

 

 

Total

  

   $ (500,350
              

 

 

 

Total futures contracts

  

   $ (219,666
              

 

 

 

 

OTC Interest Rate Swap Contracts Outstanding at April 30, 2015

Counterparty

  Payments made
by Fund
  Payments received
by Fund
  Notional Amount     Expiration
Date
    Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)

BOA

  CLICP Camara   2.09% Fixed     CLP    184,550,000        09/28/17      $     —      $     —      $     40,606      $    40,606
         

 

 

   

 

 

   

 

 

   

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

  Counter-
party
  Notional
Amount
    Payments
received
(paid) by the
Fund
    Expiration
Date
  Upfront
Premiums
Paid
    Upfront
Premiums
Received
    Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

Platinum Spot

  GSC     USD    389,110        Platinum Spot      10/30/15   $     —      $     —      $ (38,695     $    (38,695)   

S&P GSCI Industrial Metals

  GSC     USD    358,390        (0.10)% Fixed      05/20/15                       28,304            28,304   
         

 

 

   

 

 

   

 

 

   

 

 

 

Total

          $      $      $ (10,391     $    (10,391)   
         

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

40

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

   Buy/Sell    Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/05/15       GSC    $ 4,280,799       $ 4,245,858       $ (34,941

BRL

   Buy      05/05/15       UBS      4,427,821         4,245,858         (181,963

BRL

   Sell      05/05/15       UBS      4,280,799         4,245,858         34,941   

BRL

   Sell      05/05/15       GSC      4,164,297         4,245,858         (81,561

BRL

   Sell      06/02/15       UBS      4,385,995         4,204,291         181,704   

CAD

   Buy      05/04/15       CBA      41,663         41,484         (179

CAD

   Buy      05/29/15       BMO      2,435,631         2,444,090         8,459   

CAD

   Sell      05/01/15       CBA      160,601         160,674         (73

CAD

   Sell      05/05/15       CBA      15,626         15,634         (8

CAD

   Sell      05/29/15       BMO      6,059,101         6,114,368         (55,267

CLP

   Buy      06/17/15       SCB      145,427         150,282         4,855   

CLP

   Buy      06/17/15       DEUT      145,496         150,282         4,786   

EUR

   Sell      05/05/15       WEST      281,045         281,909         (864

EUR

   Sell      05/29/15       DEUT          10,818,252             11,185,669         (367,417

GBP

   Sell      05/01/15       TDB      821,249         822,508         (1,259

JPY

   Sell      05/01/15       DEUT      27,464         27,413         51   

NOK

   Buy      05/04/15       MSC      46,820         46,573         (247

ZAR

   Sell      05/05/15       CSFB      31,487         32,132         (645

ZAR

   Sell      05/06/15       SSG      39,588         39,408         180   
                 

 

 

 

Total

  

   $     (489,448
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BMO

   Bank of Montreal

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CSFB

   Credit Suisse First Boston Corp.

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

MSC

   Morgan Stanley

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

BRL

   Brazilian Real

CAD

   Canadian Dollar

CLP

   Chilean Peso

EUR

   Euro

GBP

   British Pound

ILS

   Israeli Shekel

JPY

   Japanese Yen

KRW

   South Korea Won

MXN

   Mexican Peso

NOK

   Norwegian Krone

THB

   Thai Baht

TRY

   Turkish Lira

ZAR

   South African Rand
Index Abbreviations:

GSCI

   Goldman Sachs Commodity

S&P

   Standard & Poors
Other Abbreviations:

ADR

   American Depositary Receipt

CLICP

   Sinacofi Chile Interbank Offered Rate

CMO

   Collateralized Mortgage Obligation

ETF

   Exchange Traded Fund

GDR

   Global Depositary Receipt

LIBOR

   London Interbank Offered Rate

OJSC

   Open Joint Stock Company

OTC

   Over-the-Counter

REIT

   Real Estate Investment Trust
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  41  

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

  

Common Stocks

        

Automobiles & Components

   $ 569,159      $      $ 569,159      $   

Banks

     5,242,997               5,242,997          

Capital Goods

     4,403,983        487,406        3,911,775        4,802   

Commercial & Professional Services

     807,864        40,282        767,582          

Diversified Financials

     2,158,341        300,646        1,857,695          

Energy

     127,503,253        88,017,519        39,485,734          

Food & Staples Retailing

     82,989        82,989                 

Food, Beverage & Tobacco

     6,815,861        4,744,533        2,071,328          

Insurance

     2,915,196        561,989        2,353,207          

Materials

     59,659,940        24,787,436        34,872,503        1   

Media

     1,201,697        1,201,697                 

Pharmaceuticals, Biotechnology & Life Sciences

     168,497        168,497                 

Real Estate

     1,416,368        1,416,368                 

Retailing

     1,129,511        41,350        1,088,161          

Semiconductors & Semiconductor Equipment

     2,093,353        603,801        1,489,552          

Software & Services

     1,007,334               1,007,334          

Telecommunication Services

     3,162,142               3,162,142          

Transportation

     3,699,107        1,235,165        2,463,942          

Utilities

     25,304,388        6,029,597        19,274,791          

Foreign Government Obligations

     18,135,228               18,135,228          

U.S. Government Securities

     56,694,317               56,694,317          

Exchange Traded Funds

     88,448        88,448                 

Warrants

     71,091               71,091          

Rights

     93        93                 

Short-Term Investments

     43,952,402        43,952,402                 

Purchased Options

     13,500        13,500                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     368,297,059      $     173,773,718      $     194,518,538      $     4,803   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 234,976      $      $ 234,976      $   

Futures Contracts (2)

     1,357,078        1,357,078                 

Swaps - Interest Rate (2)

     40,606               40,606          

Swaps - Total Return (2)

     28,304               28,304          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,660,964      $ 1,357,078      $ 303,886      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (724,424   $      $ (724,424   $   

Futures Contracts (2)

     (1,576,744     (1,576,744              

Swaps - Total Return (2)

     (38,695            (38,695       

Written Options

     (16,800     (16,800              
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (2,356,663   $ (1,593,544   $ (763,119   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) For the six-month period ended April 30, 2015, investments valued at $7,505,692 were transferred from Level 1 to Level 2, and investments valued at $1,101,443 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

42

 


The Hartford Global Real Asset Fund

Consolidated Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Common
Stocks
    Total  

Beginning balance

   $ 7,577      $ 7,577   

Purchases

              

Sales

     (12     (12

Accrued discounts/(premiums)

              

Total realized gain/(loss)

         (107,589         (107,589

Net change in unrealized appreciation/depreciation

     102,958        102,958   

Transfers into Level 3 (1)

     8,099        8,099   

Transfers out of Level 3 (1)

     (6,230     (6,230
  

 

 

   

 

 

 

Ending balance

   $ 4,803      $ 4,803   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $221,558.

 

(1) Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  43  

 


Hartford Long/Short Global Equity Fund

 

 

 

Diversification by Sector

as of April 30, 2015 (Unaudited)

 

Sector    Percentage of
Net Assets
 

Long Positions

  

Equity Securities

  

Consumer Discretionary

     20.6

Consumer Staples

     3.7   

Energy

     5.1   

Financials

     28.1   

Health Care

     13.2   

Industrials

     17.5   

Information Technology

     14.1   

Materials

     9.5   

Telecommunication Services

     2.5   

Utilities

     2.7   
  

 

 

 

Total

     117.0
  

 

 

 

Short-Term Investments

     0.1   

Securities Sold Short

  

Equity Securities

  

Consumer Discretionary

     (8.0 )% 

Consumer Staples

     (4.3

Energy

     (1.9

Financials

     (11.6

Health Care

     (5.6

Industrials

     (11.5

Information Technology

     (9.6

Materials

     (4.6

Utilities

     (3.5
  

 

 

 

Total

     (60.6
  

 

 

 

Other Assets & Liabilities

     43.5   
  

 

 

 

Total

     100.0
  

 

 

 

A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for reporting ease.

Diversification by Country - Long Positions

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Argentina

     1.1

Australia

     2.1   

Brazil

     0.7   

Canada

     3.4   

China

     3.7   

Denmark

     1.6   

Germany

     4.1   

Greece

     0.7   

Ireland

     4.3   

Israel

     0.9   

Italy

     3.9   

Japan

     12.0   

Malaysia

     0.6   

Mexico

     1.7   

Netherlands

     2.7   

Norway

     1.1   

Poland

     0.5   

South Africa

     0.7   

Taiwan

     1.3   

United Kingdom

     9.3   

United States

     60.6   

Short-Term Investments

     0.1   
  

 

 

 

Total Long Positions

     117.1   

Short Positions

     (60.6

Other Assets & Liabilities

     43.5   
  

 

 

 

Total

     100.0
  

 

 

 

Diversification by Country - Securities Sold Short

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Australia

     (0.6 )% 

Belgium

     (0.6

Canada

     (0.8

China

     (0.9

Denmark

     (0.7

Finland

     (0.3

France

     (1.6

Germany

     (1.3

Hong Kong

     (0.1

Italy

     (2.5

Japan

     (7.7

Mexico

     (1.2

Netherlands

     (0.9

New Zealand

     (0.4

South Africa

     (2.0

Spain

     (1.2

Sweden

     (1.1

Switzerland

     (0.6

United Kingdom

     (4.9

United States

     (31.2
  

 

 

 

Total

     (60.6 )% 
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

44

 


Hartford Long/Short Global Equity Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
LONG POSITIONS - 117.0%  
COMMON STOCKS - 111.9%  
      Automobiles & Components - 0.9%  
  10,600     

Keihin Corp.

  $ 173,624   
   

 

 

 
      Banks - 3.6%  
  33,000     

77 Bank Ltd.

    190,449   
  391,255     

Alpha Bank A.E. (1)

    137,098   
  215,874     

Banca Popolare di Milano Scarl (1)

    222,442   
  5,390     

Grupo Financiero Galicia S.A. ADR (2)

    118,796   
   

 

 

 
      668,785   
   

 

 

 
      Capital Goods - 8.3%  
  800     

Acuity Brands, Inc. (2)

    133,560   
  2,140     

Esterline Technologies Corp. (1)(2)

    238,161   
  18,255     

Finmeccanica S.p.A. (1)

    232,914   
  4,932     

OSRAM Licht AG

    259,837   
  56,813     

Salini Impregilo S.p.A. (1)

    247,904   
  2,380     

Teledyne Technologies, Inc. (1)(2)

    249,829   
  1,570     

Wabco Holdings, Inc. (1)(2)

    195,386   
   

 

 

 
      1,557,591   
   

 

 

 
      Consumer Durables & Apparel - 2.7%  
  55,000     

ANTA Sports Products Ltd.

    121,204   
  6,250     

Arctic Cat, Inc. (2)

    221,813   
  7,020     

Tumi Holdings, Inc. (1)(2)

    164,198   
   

 

 

 
      507,215   
   

 

 

 
      Consumer Services - 5.4%  
  4,710     

Brinker International, Inc. (2)

    260,793   
  1,180     

Buffalo Wild Wings, Inc. (1)

    187,974   
  3,720     

Cheesecake Factory, Inc.

    186,483   
  20,038     

Domino’s Pizza Group plc

    242,837   
  5,230     

New Oriental Education & Technology Group, Inc. ADR (1)(2)

    133,836   
   

 

 

 
      1,011,923   
   

 

 

 
      Diversified Financials - 5.5%  
  8,670     

Investment Technology Group, Inc. (1)

    247,008   
  12,470     

Janus Capital Group, Inc. (2)

    223,213   
  31,600     

Mitsubishi UFJ Lease & Finance Co., Ltd.

    169,511   
  4,800     

Nelnet, Inc. Class A (2)

    214,896   
  8,480     

Solar Capital Ltd. (2)

    167,565   
   

 

 

 
      1,022,193   
   

 

 

 
      Energy - 5.1%  
  417,000     

China Suntien Green Energy Corp. Ltd. Class H

    112,060   
  5,460     

Newfield Exploration Co. (1)

    214,250   
  9,690     

QEP Resources, Inc.

    218,025   
  2,260     

Targa Resources Corp.

    237,232   
  3,790     

Western Refining, Inc. (2)

    166,950   
   

 

 

 
      948,517   
   

 

 

 
      Food & Staples Retailing - 0.7%  
  11,400     

Raia Drogasil S.A.

    129,401   
   

 

 

 
      Food, Beverage & Tobacco - 3.0%  
  53,606     

Greencore Group plc

    290,897   
  12,800     

Gruma S.A.B. de C.V. Class B

    154,197   
  27,800     

Guinness Anchor Bhd

    113,981   
   

 

 

 
      559,075   
   

 

 

 
      Health Care Equipment & Services - 10.3%  
  117,000     

Jintian Pharmaceutical Group Ltd.

    62,264   
  10,250     

Kindred Healthcare, Inc. (2)

    235,238   
  4,530     

LifePoint Hospitals, Inc. (1)(2)

    339,206   

Shares or Principal Amount

 

Market Value *

 
LONG POSITIONS - 117.0% - (continued)  
COMMON STOCKS - 111.9% - (continued)  
      Health Care Equipment & Services - 10.3% - (continued)  
  3,770     

Molina Healthcare, Inc. (1)(2)

  $ 223,297   
  39,233     

Netcare Ltd.

    137,246   
  56,760     

Spire Healthcare Group plc (1)

    277,981   
  6,050     

Surgical Care Affiliates, Inc. (1)

    228,085   
  7,000     

Suzuken Co. Ltd/Aichi Japan

    219,047   
  6,238     

Synergy Health plc

    212,093   
   

 

 

 
      1,934,457   
   

 

 

 
      Insurance - 3.5%  
  3,640     

Assurant, Inc. (2)

    223,714   
  8,450     

Assured Guaranty Ltd.

    219,616   
  59,765     

Storebrand ASA (1)

    211,311   
   

 

 

 
      654,641   
   

 

 

 
      Materials - 9.5%  
  1,573     

Buzzi Unicem S.p.A.

    25,487   
  11,100     

Constellium N.V. Class A (1)

    203,907   
  27,130     

Graphic Packaging Holding Co. (2)

    382,533   
  6,250     

KapStone Paper & Packaging Corp. (2)

    174,687   
  3,850     

Methanex Corp.

    231,808   
  10,339     

Smurfit Kappa Group plc

    316,544   
  6,100     

Tokyo Ohka Kogyo Co., Ltd.

    189,864   
  2,046     

Wacker Chemie AG

    253,762   
   

 

 

 
      1,778,592   
   

 

 

 
      Media - 3.5%  
  2,100     

CyberAgent, Inc.

    101,053   
  10,800     

Quebecor, Inc. Class B

    297,011   
  8,800     

TV Asahi Holdings Corp.

    162,380   
  19,938     

TVN S.A. (1)

    94,156   
   

 

 

 
      654,600   
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 2.9%  
  9,250     

Achillion Pharmaceuticals, Inc. (1)

    80,937   
  3,840     

Anacor Pharmaceuticals, Inc. (1)(2)

    202,330   
  1,470     

Charles River Laboratories International, Inc. (1)

    101,665   
  3,710     

WuXi PharmaTech Cayman, Inc. ADR (1)

    160,161   
   

 

 

 
      545,093   
   

 

 

 
      Real Estate - 10.4%  
  24,445     

Big Yellow Group plc REIT

    250,654   
  91,100     

Corp. Inmobiliaria Vesta S.A.B. de C.V.

    171,013   
  4,280     

Equity LifeStyle Properties, Inc. REIT

    226,069   
  34,100     

Leopalace21 Corp. (1)

    196,670   
  25,050     

MFA Financial, Inc. REIT (2)

    194,638   
  5,070     

Pebblebrook Hotel Trust REIT

    217,706   
  9,070     

Starwood Property Trust, Inc. REIT (2)

    217,771   
  16,180     

Strategic Hotels & Resorts, Inc. REIT (1)

    189,306   
  29,483     

UNITE Group plc

    271,086   
   

 

 

 
      1,934,913   
   

 

 

 
      Retailing - 8.1%  
  9,670     

Chico’s FAS, Inc.

    163,036   
  74,715     

Dick Smith Holdings Ltd.

    123,162   
  9,190     

Haverty Furniture Cos., Inc.

    197,217   
  2,772     

Hornbach Holding AG

    245,299   
  5,800     

K’s Holdings Corp.

    193,661   
  6,020     

Lands’ End, Inc. (1)

    176,868   
  3,880     

Urban Outfitters, Inc. (1)

    155,355   
  11,941     

WH Smith plc

    261,987   
   

 

 

 
      1,516,585   
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

45

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
LONG POSITIONS - 117.0% - (continued)  
COMMON STOCKS - 111.9% - (continued)  
      Semiconductors & Semiconductor Equipment - 5.8%  
  3,000     

Canadian Solar, Inc. (1)

  $ 106,200   
  2,780     

First Solar, Inc. (1)(2)

    165,883   
  118,000     

King Yuan Electronics Co., Ltd.

    107,264   
  6,380     

Microsemi Corp. (1)

    212,837   
  20,560     

ON Semiconductor Corp. (1)(2)

    236,851   
  4,260     

SunPower Corp. (1)(2)

    137,129   
  82,000     

Vanguard International Semiconductor Corp.

    125,930   
   

 

 

 
      1,092,094   
   

 

 

 
      Software & Services - 6.3%  
  10,090     

Cadence Design Systems, Inc. (1)(2)

    188,179   
  13,530     

Convergys Corp. (2)

    306,860   
  5,800     

Exlservice Holdings, Inc. (1)

    199,694   
  4,100     

Fleetmatics Group Ltd. (1)

    186,878   
  2,100     

Imperva, Inc. (1)

    95,802   
  6,800     

SCSK Corp.

    198,565   
   

 

 

 
      1,175,978   
   

 

 

 
      Technology Hardware & Equipment - 2.0%  
  7,420     

ARRIS Group, Inc. (1)(2)

    249,868   
  51,000     

Sunny Optical Technology Group Co., Ltd.

    113,491   
   

 

 

 
      363,359   
   

 

 

 
      Telecommunication Services - 2.5%  
  88,425     

Bezeq The Israeli Telecommunication Corp. Ltd.

    167,480   
  65,490     

Vonage Holdings Corp. (1)(2)

    303,219   
   

 

 

 
      470,699   
   

 

 

 
      Transportation - 9.2%  
  8,648     

DSV A/S

    299,996   
  14,200     

Hitachi Transport System Ltd.

    229,008   
  10,850     

JetBlue Airways Corp. (1)

    222,751   
  2,530     

Landstar System, Inc. (2)

    157,644   
  60,120     

PostNL N.V. (1)

    298,562   
  95,499     

Qantas Airways Ltd. (1)

    255,263   
  10,820     

Swift Transportation Co. (1)(2)

    261,844   
   

 

 

 
      1,725,068   
   

 

 

 
      Utilities - 2.7%  
  5,480     

El Paso Electric Co. (2)

    203,911   
  4,300     

Pampa Energia S.A. ADR (1)

    70,004   
  18,100     

Tohoku Electric Power Co., Inc.

    227,693   
   

 

 

 
      501,608   
   

 

 

 
 

Total Common Stocks
(cost $19,628,337)

  $ 20,926,011   
   

 

 

 
EXCHANGE TRADED FUNDS - 5.1%  
      Other Investment Pools & Funds - 5.1%  
  4,750     

iShares MSCI EAFE ETF (2)

  $ 315,922   
  2,660     

iShares Russell 2000 ETF (2)

    322,286   
  14,740     

WisdomTree India Earnings Fund

    314,994   
   

 

 

 
 

Total Exchange Traded Funds
(cost $919,401)

  $ 953,202   
   

 

 

 
 

Total Long-Term Investments
(cost $20,547,738)

  $ 21,879,213   
   

 

 

 

Shares or Principal Amount

 

Market Value *

 
SHORT-TERM INVESTMENTS - 0.1%  
      Other Investment Pools & Funds - 0.1%  
  22,737     

Federated Prime Obligations Fund

  $ 22,737   
   

 

 

 
 

Total Short-Term Investments
(cost $22,737)

  $ 22,737   
   

 

 

 
 

Total Investments
(cost $20,570,475) ^

    117.1    $ 21,901,950   
 

Total Securities Sold Short
(proceeds $11,184,011)

    (60.6 )%     $     (11,340,197
 

Other Assets and Liabilities

    43.5      8,145,773   
   

 

 

    

 

 

 
 

Total Net Assets

    100.0    $ 18,707,526   
   

 

 

    

 

 

 
SECURITIES SOLD SHORT - (60.6%)  
COMMON STOCKS - (60.6%)  
      Automobiles & Components - (0.9%)  
  (1,614  

Montupet

  $ (113,755
  (1,619  

Nokian Renkaat Oyj

    (52,611
   

 

 

 
    (166,366
   

 

 

 
      Banks - (5.2%)  
  (7,001  

Banco Popolare (1)

    (110,682
  (1,400  

Bank of Hawaii Corp.

    (84,546
  (191  

Banque Cantonale Vaudoise

    (112,488
  (19,800  

Banregio Grupo Financiero S.A.B. de C.V. (1)

    (113,571
  (9,800  

Beneficial Bancorp, Inc. (1)

    (113,680
  (15,730  

FinecoBank Banca Fineco S.p.A.

    (118,750
  (5,357  

Suruga Bank Ltd.

    (118,086
  (7,200  

TFS Financial Corp.

    (105,264
  (2,066  

Westamerica BanCorp.

    (89,974
   

 

 

 
      (967,041
   

 

 

 
      Capital Goods - (6.3%)  
  (3,400  

AECOM (1)

    (107,304
  (2,900  

Air Lease Corp.

    (112,027
  (44,415  

AviChina Industry & Technology Co., Ltd. Class H

    (50,320
  (10,287  

Balfour Beatty plc

    (38,308
  (1,497  

CLARCOR, Inc.

    (97,305
  (3,383  

DigitalGlobe, Inc. (1)

    (108,831
  (16,033  

Furukawa Co., Ltd.

    (27,820
  (1,130  

MasTec, Inc. (1)

    (20,272
  (2,500  

SHO-BOND Holdings Co., Ltd.

    (110,214
  (2,087  

Spirax-Sarco Engineering plc

    (108,030
  (35,075  

Sumitomo Mitsui Construction Co., Ltd.

    (48,814
  (1,161  

TAL International Group, Inc. (1)

    (44,745
  (3,502  

USG Corp. (1)

    (92,943
  (4,165  

Vallourec S.A.

    (98,214
  (8,735  

Zardoya Otis S.A.

    (112,614
   

 

 

 
      (1,177,761
   

 

 

 
      Commercial & Professional Services - (2.0%)  
  (1,861  

Advisory Board Co. (1)

    (96,567
  (6,583  

HomeServe plc

    (38,469
  (769  

Mobile Mini, Inc.

    (29,637
  (4,578  

Moshi Moshi Hotline, Inc.

    (49,457
  (4,600  

Park24 Co., Ltd.

    (91,874
  (60,000  

Tianjin Capital Environmental Protection Group Co., Ltd. Class H

    (62,967
   

 

 

 
      (368,971
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

46

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
SECURITIES SOLD SHORT - (60.6%) - (continued)  
COMMON STOCKS - (60.6%) - (continued)  
      Consumer Durables & Apparel - (1.7%)  
  (2,000  

Asics Corp.

  $ (51,321
  (9,000  

Crocs, Inc. (1)

    (118,800
  (1,400  

Rinnai Corp.

    (106,222
  (800  

Ryland Group, Inc.

    (32,976
   

 

 

 
      (309,319
   

 

 

 
      Consumer Services - (2.2%)  
  (38,000  

Alsea S.A.B. de C.V. (1)

    (114,183
  (2,100  

Dunkin’ Brands Group, Inc.

    (109,431
  (3,900  

SeaWorld Entertainment, Inc.

    (82,680
  (2,400  

Six Flags Entertainment Corp.

    (112,848
   

 

 

 
      (419,142
   

 

 

 
      Diversified Financials - (4.7%)  
  (2,926  

AEON Financial Service Co., Ltd.

    (74,591
  (2,050  

Artisan Partners Asset Management, Inc. Class A

    (91,819
  (3,719  

Banca Generali S.p.A.

    (124,818
  (11,662  

BinckBank N.V.

    (116,886
  (10,039  

Coronation Fund Managers Ltd.

    (76,703
  (3,046  

Federated Investors, Inc. Class B

    (104,782
  (2,023  

Greenhill & Co., Inc.

    (80,010
  (11,000  

SLM Corp.

    (112,090
  (785  

Wendel S.A.

    (96,416
   

 

 

 
      (878,115
   

 

 

 
      Energy - (1.9%)  
  (1,400  

AltaGas Ltd.

    (47,576
  (901  

Gulfport Energy Corp. (1)

    (44,095
  (5,484  

Lundin Petroleum AB (1)

    (88,768
  (5,736  

Petrofac Ltd.

    (76,560
  (11,000  

TonenGeneral Sekiyu KK

    (105,570
   

 

 

 
      (362,569
   

 

 

 
      Food & Staples Retailing - (1.0%)  
  (45,252  

Booker Group plc

    (100,181
  (1,099  

PriceSmart, Inc.

    (88,425
   

 

 

 
      (188,606
   

 

 

 
      Food, Beverage & Tobacco - (3.3%)  
  (1,875  

AAK AB

    (118,623
  (3,369  

B&G Foods, Inc.

    (102,418
  (9,467  

Britvic plc

    (105,136
  (4,500  

Maruha Nichiro Corp.

    (62,466
  (1,900  

Post Holdings, Inc. (1)

    (89,186
  (3,378  

Snyder’s-Lance, Inc.

    (99,752
  (57,936  

Uni-President China Holdings Ltd.

    (46,869
   

 

 

 
      (624,450
   

 

 

 
      Health Care Equipment & Services - (5.2%)  
  (2,575  

Cardiovascular Systems, Inc. (1)

    (80,597
  (1,673  

DexCom, Inc. (1)

    (113,045
  (2,581  

Fagron

    (114,080
  (47,314  

Healthscope Ltd.

    (106,034
  (1,200  

HeartWare International, Inc. (1)

    (90,852
  (3,082  

NxStage Medical, Inc. (1)

    (56,493
  (1,500  

Providence Service Corp. (The) (1)

    (63,780
  (1,400  

Ship Healthcare Holdings, Inc.

    (34,216
  (4,264  

Spectranetics Corp. (1)

    (109,372
  (2,652  

Tornier N.V. (1)

    (68,607
  (4,200  

Wright Medical Group, Inc. (1)

    (106,554

Shares or Principal Amount

 

Market Value *

 
SECURITIES SOLD SHORT - (60.6%) - (continued)  
COMMON STOCKS - (60.6%) - (continued)  
      Health Care Equipment & Services - (5.2%) - (continued)  
  (1,061  

Zeltiq Aesthetics, Inc. (1)

  $ (32,573
   

 

 

 
      (976,203
   

 

 

 
      Insurance - (1.7%)  
  (3,167  

Brown & Brown, Inc.

    (101,186
  (1,929  

Mercury General Corp.

    (105,979
  (2,100  

RLI Corp.

    (104,286
   

 

 

 
      (311,451
   

 

 

 
      Materials - (4.6%)  
  (3,000  

Air Water, Inc.

    (53,281
  (2,477  

Auriga Industries AS Class B (1)

    (119,206
  (2,300  

HB Fuller Co.

    (96,071
  (13,575  

Impala Platinum Holdings Ltd. (1)

    (75,551
  (6,133  

Louisiana-Pacific Corp. (1)

    (93,467
  (32,586  

Nampak Ltd.

    (116,702
  (28,970  

Northam Platinum Ltd. (1)

    (119,081
  (4,100  

Platform Specialty Products Corp. (1)

    (110,454
  (23,825  

UACJ Corp.

    (68,883
   

 

 

 
      (852,696
   

 

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - (0.4%)  
  (1,023  

MorphoSys AG (1)

    (74,009
   

 

 

 
      Retailing - (3.2%)  
  (600  

Mattress Firm Holding Corp. (1)

    (35,448
  (1,953  

Men’s Wearhouse, Inc.

    (110,520
  (1,700  

Monro Muffler Brake, Inc.

    (101,813
  (7,923  

SuperGroup plc (1)

    (125,266
  (6,500  

USS Co., Ltd.

    (114,451
  (3,570  

Yoox S.p.A. (1)

    (112,455
   

 

 

 
      (599,953
   

 

 

 
      Semiconductors & Semiconductor Equipment - (1.6%)  
  (7,983  

AIXTRON SE (1)

    (52,865
  (2,865  

Cree, Inc. (1)

    (90,763
  (1,100  

Synaptics, Inc. (1)

    (93,192
  (2,168  

Veeco Instruments, Inc. (1)

    (63,978
   

 

 

 
      (300,798
   

 

 

 
      Software & Services - (6.3%)  
  (3,100  

CoreLogic, Inc. (1)

    (121,241
  (1,849  

Cornerstone OnDemand, Inc. (1)

    (52,937
  (2,108  

Dealertrack Technologies, Inc. (1)

    (82,865
  (2,848  

HomeAway, Inc. (1)

    (79,602
  (9,529  

Indra Sistemas S.A.

    (112,173
  (2,197  

Interactive Intelligence Group, Inc. (1)

    (96,624
  (3,092  

Marketo, Inc. (1)

    (87,967
  (2,100  

Pandora Media, Inc. (1)

    (37,464
  (4,521  

RealPage, Inc. (1)

    (89,697
  (634  

SPS Commerce, Inc. (1)

    (41,375
  (2,387  

Wirecard AG

    (104,835
  (2,907  

Xoom Corp. (1)

    (51,367
  (1,618  

Yelp, Inc. (1)

    (63,733
  (700  

Zillow Group, Inc. Class A (1)

    (68,348
  (38,772  

Zynga, Inc. Class A (1)

    (94,991
   

 

 

 
    (1,185,219
   

 

 

 
      Technology Hardware & Equipment - (1.7%)  
  (5,104  

Finisar Corp. (1)

    (103,764
  (2,890  

Topcon Corp.

    (75,160
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  47  

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
SECURITIES SOLD SHORT - (60.6%) - (continued)  
COMMON STOCKS - (60.6%) - (continued)  
      Technology Hardware & Equipment - (1.7%) - (continued)  
  (590  

ViaSat, Inc. (1)

  $ (35,471
  (1,100  

Zebra Technologies Corp. Class A (1)

    (101,288
   

 

 

 
    (315,683
   

 

 

 
      Transportation - (3.2%)  
  (22,259  

Auckland International Airport Ltd.

    (78,111
  (24,000  

Nankai Electric Railway Co., Ltd.

    (114,731
  (37,912  

Pacific Basin Shipping Ltd.

    (14,040
  (2,000  

Roadrunner Transportation Systems, Inc. (1)

    (48,940
  (23,000  

Sotetsu Holdings, Inc.

    (109,085
  (6,800  

Wesco Aircraft Holdings, Inc. (1)

    (106,624
  (2,613  

XPO Logistics, Inc. (1)

    (126,730
   

 

 

 
    (598,261
   

 

 

 
      Utilities - (3.5%)  
  (16,616  

Drax Group plc

    (101,521
  (3,500  

Dynegy, Inc. (1)

    (116,445
  (2,200  

NRG Yield, Inc. Class A

    (108,240
  (8,753  

Pennon Group plc

    (114,879
  (9,340  

Telecom Plus plc

    (109,964
  (11,300  

TransAlta Corp.

    (112,391
   

 

 

 
    (663,440
   

 

 

 
 

Total Common Stocks
(Proceeds $(11,180,947))

  $ (11,340,053
   

 

 

 
RIGHTS - (0.0%)  
      Materials - (0.0%)  
  (8,175  

Northam Platinum Ltd. (1)

  $ (144
   

 

 

 
 

Total Rights
(Proceeds $(3,064))

  $ (144
   

 

 

 
 

Total Securities Sold Short
(Proceeds $(11,184,011))

  $ (11,340,197
   

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

48

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $9,408,690 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 2,554,530   

Unrealized Depreciation

     (1,401,467
  

 

 

 

Net Unrealized Appreciation

   $     1,153,063   
  

 

 

 

 

(1)  Non-income producing.

 

(2)  This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.

Foreign Currency Contracts Outstanding at April 30, 2015

 

Currency

   Buy/Sell      Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

EUR

     Buy         05/05/15       WEST    $     25,381       $     25,459       $     78   

HKD

     Sell         05/05/15       UBS      46,581         46,585         (4

JPY

     Buy         05/08/15       DEUT      42,928         42,759         (169
                 

 

 

 

Total

  

   $ (95
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

DEUT

   Deutsche Bank Securities, Inc.

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

EUR

   Euro

HKD

   Hong Kong Dollar

JPY

   Japanese Yen

ZAR

   South African Rand
Index Abbreviations:

EAFE

   Europe, Australasia and Far East

MSCI

   Morgan Stanley Capital International
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange Traded Fund

MSCI

   Morgan Stanley Capital International

REIT

   Real Estate Investment Trust

 

The accompanying notes are an integral part of these financial statements.

 

 

  49  

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

  

Common Stocks

        

Automobiles & Components

   $ 173,624      $      $ 173,624      $     —   

Banks

     668,785        118,796        549,989          

Capital Goods

     1,557,591        816,936        740,655          

Consumer Durables & Apparel

     507,215        507,215                 

Consumer Services

     1,011,923        1,011,923                 

Diversified Financials

     1,022,193        852,682        169,511          

Energy

     948,517        836,457        112,060          

Food & Staples Retailing

     129,401        129,401                 

Food, Beverage & Tobacco

     559,075        154,197        404,878          

Health Care Equipment & Services

     1,934,457        1,237,919        696,538          

Insurance

     654,641        443,330        211,311          

Materials

     1,778,592        992,935        785,657          

Media

     654,600        391,167        263,433          

Pharmaceuticals, Biotechnology & Life Sciences

     545,093        545,093                 

Real Estate

     1,934,913        1,738,243        196,670          

Retailing

     1,516,585        937,775        578,810          

Semiconductors & Semiconductor Equipment

     1,092,094        858,900        233,194          

Software & Services

     1,175,978        977,413        198,565          

Technology Hardware & Equipment

     363,359        249,868        113,491          

Telecommunication Services

     470,699        303,219        167,480          

Transportation

     1,725,068        642,239        1,082,829          

Utilities

     501,608        273,915        227,693          

Exchange Traded Funds

     953,202        953,202                 

Short-Term Investments

     22,737        22,737                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     21,901,950      $     14,995,562      $     6,906,388      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 78      $      $ 78      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 78      $      $ 78      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Securities Sold Short

        

Automobiles & Components

     (166,366            (166,366       

Banks

     (967,041     (507,035     (460,006       

Capital Goods

     (1,177,761     (621,735     (556,026       

Commercial & Professional Services

     (368,971     (126,204     (242,767       

Consumer Durables & Apparel

     (309,319     (151,776     (157,543       

Consumer Services

     (419,142     (419,142              

Diversified Financials

     (878,115     (388,701     (489,414       

Energy

     (362,569     (91,671     (270,898       

Food & Staples Retailing

     (188,606     (88,425     (100,181       

Food, Beverage & Tobacco

     (624,450     (338,225     (286,225       

Health Care Equipment & Services

     (976,203     (721,873     (254,330       

Insurance

     (311,451     (311,451              

Materials

     (852,696     (419,198     (433,498       

Pharmaceuticals, Biotechnology & Life Sciences

     (74,009            (74,009       

Retailing

     (599,953     (373,047     (226,906       

Semiconductors & Semiconductor Equipment

     (300,798     (247,933     (52,865       

Software & Services

     (1,185,219     (968,211     (217,008       

Technology Hardware & Equipment

     (315,683     (240,523     (75,160       

Transportation

     (598,261     (282,294     (315,967       

Utilities

     (663,440     (447,040     (216,400       

Securities Sold Short - Rights

        

Materials

     (144     (144              
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (11,340,197   $ (6,744,628   $ (4,595,569   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ (173   $      $ (173   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (173   $      $ (173   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

50

 


Hartford Long/Short Global Equity Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers from Level 1 to Level 2, and investments valued at $204,947 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  (a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  (b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  (c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2) Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

51

 


Hartford Real Total Return Fund

 

 

 

Diversification by Country

as of April 30, 2015 (Unaudited)

 

Country    Percentage of
Net Assets
 

Australia

     0.1

Brazil

     0.7   

Canada

     0.8   

China

     0.6   

France

     3.2   

Germany

     1.2   

Greece

     8.1   

Hong Kong

     0.2   

Ireland

     0.2   

Israel

     0.1   

Italy

     0.2   

Japan

     23.2   

Luxembourg

     0.1   

Mexico

     10.0   

Netherlands

     0.4   

Singapore

     0.1   

United Kingdom

     0.5   

United States

     34.5   

Purchased Options

     0.5   

Other Assets & Liabilities

     15.3   
  

 

 

 

Total

     100.0
  

 

 

 

Credit Exposure

as of April 30, 2015 (Unaudited)

 

Credit Rating*    Percentage of
Net Assets
 

Aaa/AAA

     5.6

A

     10.0   

Baa/BBB

     1.2   

Ba/BB

     2.9   

B

     0.3   

Caa / CCC or Lower

     5.8   

Not Rated

     1.5   

Non-Debt Securities and Other Short-Term Instruments

     57.4   

Other Assets & Liabilities

     15.3   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Credit exposure is the long-term credit ratings for the Fund’s holdings, as of the date noted, as provided by Standard and Poor’s (S&P) or Moody’s Investors Service (Moody’s) and typically range from AAA/Aaa (highest) to C/D (lowest). Presentation of S&P and Moody’s credit ratings in this report have been selected for informational purposes for shareholders, as well as the Fund’s consideration of industry practice. If Moody’s and S&P assign different ratings, the lower rating is used. Fixed income securities that are not rated by either agency are listed as “Not Rated.” Ratings do not apply to the Fund itself or to the Fund’s shares. Ratings may change.

Diversification by Security Type

as of April 30, 2015 (Unaudited)

 

Category    Percentage of
Net Assets
 

Equity Securities

  

Common Stocks

     53.2

Exchange Traded Funds

     1.2   

Preferred Stocks

     0.2   

Rights

     0.1   

Warrants

     0.3   
  

 

 

 

Total

     55.0
  

 

 

 

Fixed Income Securities

  

Convertible Bonds

     2.4

Corporate Bonds

     3.7   

Foreign Government Obligations

     15.6   

U.S. Government Securities

     5.6   
  

 

 

 

Total

     27.3
  

 

 

 

Short-Term Investments

     1.9   

Purchased Options

     0.5   

Other Assets & Liabilities

     15.3   
  

 

 

 

Total

     100.0
  

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

52

 


Hartford Real Total Return Fund

Schedule of Investments

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2%      
          Automobiles & Components - 2.9%  
    11,426     

Fiat Chrysler Automobiles N.V. (1)

  $ 170,149   
    1,130     

Fuji Heavy Industries Ltd.

    37,787   
    1,970     

Harley-Davidson, Inc.

    110,734   
    12,725     

HI-LEX Corp.

    407,269   
    3,575     

Isuzu Motors Ltd.

    47,382   
    23,190     

Nissin Kogyo Co., Ltd.

    382,225   
    25,605     

Tachi-S Co., Ltd.

    393,932   
    19,980     

Tokai Rika Co., Ltd.

    488,164   
    8,412     

Toyota Industries Corp.

    476,408   
    16,090     

TS Tech Co., Ltd.

    479,149   
     

 

 

 
        2,993,199   
     

 

 

 
          Banks - 5.5%  
    852,782     

Alpha Bank A.E. (1)

    298,820   
    26,447     

BNP Paribas S.A.

    1,670,162   
    674,912     

Eurobank Ergasias S.A. (1)

    102,742   
    142,420     

Mitsubishi UFJ Financial Group, Inc.

    1,011,802   
    446,606     

Piraeus Bank S.A. (1)

    199,319   
    72,880     

San-In Godo Bank Ltd.

    697,448   
    33,110     

Societe Generale S.A.

    1,655,323   
    1,895     

Sumitomo Mitsui Financial Group, Inc.

    82,744   
     

 

 

 
        5,718,360   
     

 

 

 
          Capital Goods - 4.8%  
    3,562     

AECOM (1)

    112,417   
    137,032     

Capstone Turbine Corp. (1)

    86,083   
    19,969     

Ellaktor S.A. (1)

    44,829   
    1,308     

Illinois Tool Works, Inc.

    122,403   
    14,445     

Inaba Denki Sangyo Co., Ltd.

    522,287   
    3,440     

ITOCHU Corp.

    42,357   
    14,750     

JGC Corp.

    306,960   
    36,020     

Kinden Corp.

    505,925   
    2,705     

KLX, Inc. (1)

    113,367   
    30,070     

Kuroda Electric Co., Ltd.

    540,564   
    17,910     

Nippo Corp.

    299,528   
    623     

Northrop Grumman Corp.

    95,967   
    4,461     

Owens Corning

    172,462   
    1,173     

Raytheon Co.

    121,992   
    19,040     

Star Micronics Co., Ltd.

    309,711   
    17,000     

Taihei Dengyo Kaisha Ltd.

    143,411   
    15,380     

Taikisha Ltd.

    412,868   
    2,616     

Taser International, Inc. (1)

    78,977   
    8,850     

Toshiba Machine Co., Ltd.

    39,299   
    1,439     

Trex Co., Inc. (1)

    67,518   
    30,330     

Ushio, Inc.

    397,733   
    50,810     

Yamazen Corp.

    452,029   
     

 

 

 
        4,988,687   
     

 

 

 
          Commercial & Professional Services - 1.4%  
    16,075     

Aeon Delight Co., Ltd.

    425,706   
    2,048     

Clean Harbors, Inc. (1)

    113,152   
    33,700     

Heidrick & Struggles International, Inc.

    810,822   
    2,380     

Robert Half International, Inc.

    131,971   
     

 

 

 
        1,481,651   
     

 

 

 
          Consumer Durables & Apparel - 3.5%  
    22,750     

Funai Electric Co., Ltd. (1)

    268,759   
    914     

G-III Apparel Group Ltd. (1)

    101,619   
    3,910     

GoPro, Inc. Class A (1)

    195,813   
    533     

Harman International Industries, Inc.

    69,493   
    2,664     

iRobot Corp. (1)

    86,367   
    4,163     

Kate Spade & Co. (1)

    136,130   

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2% - (continued)      
          Consumer Durables & Apparel - 3.5% - (continued)  
    1,155     

Michael Kors Holdings Ltd. (1)

  $ 71,448   
    127,460     

PanaHome Corp.

    929,144   
    12,645     

Sankyo Co., Ltd.

    478,949   
    44,300     

Sekisui House Ltd.

    686,679   
    797     

Under Armour, Inc. Class A (1)

    61,807   
    1,805     

VF Corp.

    130,736   
    21,700     

Yondoshi Holdings, Inc.

    476,814   
     

 

 

 
        3,693,758   
     

 

 

 
          Consumer Services - 0.8%  
    1,276     

Brinker International, Inc.

    70,652   
    526     

DineEquity, Inc.

    50,722   
    459     

Domino’s Pizza, Inc.

    49,503   
    1,242     

Fiesta Restaurant Group, Inc. (1)

    62,783   
    820     

HIS Co., Ltd.

    27,333   
    490     

Jack in the Box, Inc.

    42,517   
    2,229     

Kona Grill, Inc. (1)

    54,075   
    4,080     

LifeLock, Inc. (1)

    59,609   
    1,025     

Marriott Vacations Worldwide Corp.

    84,265   
    3,725     

OPAP S.A.

    33,326   
    472     

Papa John’s International, Inc.

    28,967   
    760     

Popeyes Louisiana Kitchen, Inc. (1)

    42,317   
    2,252     

Sonic Corp.

    64,520   
    1,744     

Starbucks Corp.

    86,467   
    904     

Wyndham Worldwide Corp.

    77,202   
     

 

 

 
        834,258   
     

 

 

 
          Diversified Financials - 1.8%  
    44,750     

Aizawa Securities Co., Ltd.

    305,489   
    228     

BlackRock, Inc.

    82,978   
    2,983     

E*TRADE Financial Corp. (1)

    85,881   
    74,640     

Hellenic Exchanges - Athens Stock Exchange S.A. Holding (1)

    486,095   
    2,689     

Interactive Brokers Group, Inc. Class A

    91,292   
    24,870     

Kyokuto Securities Co., Ltd.

    371,737   
    1,161     

MarketAxess Holdings, Inc.

    99,672   
    1,034     

MSCI, Inc.

    63,271   
    34,300     

Uranium Participation Corp. (1)

    158,920   
    4,109     

Wisdomtree Investments, Inc.

    78,235   
     

 

 

 
        1,823,570   
     

 

 

 
          Energy - 4.4%  
    1,630     

Baker Hughes, Inc.

    111,590   
    25,095     

Cobalt International Energy, Inc. (1)

    268,517   
    941     

Energen Corp.

    66,971   
    4,400     

HollyFrontier Corp.

    170,632   
    49,416     

Japan Petroleum Exploration Co., Ltd.

    1,902,287   
    59,015     

Karoon Gas Australia Ltd. (1)

    127,167   
    10,087     

Laredo Petroleum, Inc. (1)

    159,375   
    18,100     

Malakoff Corp. Bhd (1)

    9,148   
    35,513     

McDermott International, Inc. (1)

    186,443   
    58,438     

Motor Oil Hellas Corinth Refineries S.A.

    511,709   
    4,980     

Patterson-UTI Energy, Inc.

    111,303   
    1,557     

Pioneer Natural Resources Co.

    269,018   
    4,653     

Rice Energy, Inc. (1)

    114,603   
    1,545     

Southwestern Energy Co. (1)

    43,306   
    37,560     

Trican Well Service Ltd.

    158,770   
    25,826     

Tsakos Energy Navigation Ltd.

    237,083   
    3,007     

Whiting Petroleum Corp. (1)

    113,995   
     

 

 

 
        4,561,917   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

53

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2% - (continued)      
          Food & Staples Retailing - 0.2%  
    908     

CVS Health Corp.

  $ 90,156   
    7,800     

Kato Sangyo Co., Ltd.

    165,097   
     

 

 

 
        255,253   
     

 

 

 
          Food, Beverage & Tobacco - 0.4%  
    1,230     

Asahi Group Holdings Ltd.

    39,553   
    1,660     

Japan Tobacco, Inc.

    57,969   
    1,016     

Monster Beverage Corp. (1)

    139,304   
    3,793     

Post Holdings, Inc. (1)

    178,043   
     

 

 

 
        414,869   
     

 

 

 
          Health Care Equipment & Services - 2.2%  
    968     

Anthem, Inc.

    146,100   
    2,382     

Cantel Medical Corp.

    106,690   
    195,770     

CareView Communications, Inc. (1)

    76,331   
    797     

Cigna Corp.

    99,338   
    2,248     

Community Health Systems, Inc. (1)

    120,673   
    1,630     

HCA Holdings, Inc. (1)

    120,636   
    785     

Humana, Inc.

    129,996   
    1,824     

LifePoint Hospitals, Inc. (1)

    136,581   
    24,260     

Medipal Holdings Corp.

    330,967   
    1,657     

Medtronic plc

    123,364   
    1,913     

Molina Healthcare, Inc. (1)

    113,307   
    2,447     

Natus Medical, Inc. (1)

    92,276   
    12,210     

Paramount Bed Holdings Co., Ltd.

    330,832   
    1,329     

Sirona Dental Systems, Inc. (1)

    123,265   
    610     

UnitedHealth Group, Inc.

    67,954   
    1,133     

Universal Health Services, Inc. Class B

    132,504   
    1,932     

Zeltiq Aesthetics, Inc. (1)

    59,313   
     

 

 

 
        2,310,127   
     

 

 

 
          Insurance - 1.2%  
    43,920     

Sony Financial Holdings, Inc.

    788,475   
    23,250     

T&D Holdings, Inc.

    335,492   
    2,200     

Tokio Marine Holdings, Inc.

    89,685   
     

 

 

 
        1,213,652   
     

 

 

 
          Materials - 2.2%  
    9,563     

Graphic Packaging Holding Co.

    134,838   
    11,867     

Louisiana-Pacific Corp. (1)

    180,853   
    13,370     

Maruichi Steel Tube Ltd.

    337,694   
    5,326     

Methanex Corp.

    320,678   
    10,235     

Norbord, Inc.

    206,481   
    22,650     

Tenma Corp.

    366,488   
    6,950     

Tokyo Ohka Kogyo Co., Ltd.

    216,320   
    1,194     

Wacker Chemie AG

    148,090   
    14,540     

Yamato Kogyo Co., Ltd.

    342,096   
     

 

 

 
        2,253,538   
     

 

 

 
          Media - 2.2%  
    2,904     

AMC Entertainment Holdings, Inc. Class A

    87,294   
    1,466     

Cinemark Holdings, Inc.

    62,496   
    13,530     

Daiichikosho Co., Ltd.

    436,366   
    1,266     

DISH Network Corp. Class A (1)

    85,658   
    2,090     

IMAX Corp. (1)

    78,082   
    521     

Madison Square Garden Co. Class A (1)

    41,836   
    32,230     

Nippon Television Holdings, Inc.

    555,770   
    1,432     

Time Warner, Inc.

    120,875   
    2,843     

Tribune Media Co. Class A

    159,407   
    28,655     

TV Asahi Holdings Corp.

    528,749   
    1,348     

Walt Disney Co.

    146,555   
     

 

 

 
        2,303,088   
     

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2% - (continued)      
          Pharmaceuticals, Biotechnology & Life Sciences - 3.2%  
    513     

Actavis plc (1)

  $ 145,107   
    615     

Agios Pharmaceuticals, Inc. (1)

    56,789   
    487     

Alkermes plc (1)

    26,965   
    355     

Alnylam Pharmaceuticals, Inc. (1)

    36,164   
    40,689     

Arena Pharmaceuticals, Inc. (1)

    177,404   
    1,363     

ARIAD Pharmaceuticals, Inc. (1)

    11,817   
    416     

Biogen, Inc. (1)

    155,555   
    371     

BioMarin Pharmaceutical, Inc. (1)

    41,571   
    2,048     

Bristol-Myers Squibb Co.

    130,519   
    705     

Celgene Corp. (1)

    76,182   
    1,877     

Dyax Corp. (1)

    44,879   
    1,975     

Eisai Co., Ltd.

    131,648   
    2,320     

Eli Lilly & Co.

    166,738   
    829     

Endo International plc (1)

    69,690   
    821     

Gilead Sciences, Inc. (1)

    82,519   
    639     

Illumina, Inc. (1)

    117,736   
    425     

Incyte Corp. (1)

    41,293   
    353     

Jazz Pharmaceuticals plc (1)

    63,081   
    324     

Medivation, Inc. (1)

    39,120   
    1,880     

Merck & Co., Inc.

    111,973   
    2,234     

Mylan N.V. (1)

    161,429   
    5,560     

Portola Pharmaceuticals, Inc. (1)

    198,436   
    163     

Receptos, Inc. (1)

    24,016   
    141     

Regeneron Pharmaceuticals, Inc. (1)

    64,502   
    1,262     

Repligen Corp. (1)

    37,242   
    3,215     

Supernus Pharmaceuticals, Inc. (1)

    41,152   
    100,480     

TherapeuticsMD, Inc. (1)

    651,110   
    803     

Thermo Fisher Scientific, Inc.

    100,921   
    253     

Ultragenyx Pharmaceutical, Inc. (1)

    14,277   
    208     

United Therapeutics Corp. (1)

    33,216   
    367     

Vertex Pharmaceuticals, Inc. (1)

    45,244   
    2,080     

WuXi PharmaTech Cayman, Inc. ADR (1)

    89,794   
    2,412     

Zoetis, Inc.

    107,141   
     

 

 

 
        3,295,230   
     

 

 

 
          Real Estate - 3.2%  
    3,035     

CBRE Group, Inc. Class A (1)

    116,362   
    2,651     

Corrections Corp. of America REIT

    97,530   
    4,615     

Daito Trust Construction Co., Ltd.

    537,419   
    25,477     

Deutsche Annington Immobilien SE

    855,138   
    1,931     

Geo Group, Inc. REIT

    75,309   
    60     

GLP J-REIT

    61,691   
    3,997     

Grand City Properties S.A. (1)

    75,761   
    142,593     

Grivalia Properties REIC

    1,133,302   
    218,099     

Immobiliare Grande Distribuzione SIIQ S.p.A. REIT

    214,601   
    2,649     

LEG Immobilien AG (1)

    205,529   
     

 

 

 
        3,372,642   
     

 

 

 
          Retailing - 1.9%  
    597     

Advance Auto Parts, Inc.

    85,371   
    784     

Amazon.com, Inc. (1)

    330,676   
    39,834     

Groupon, Inc. (1)

    275,651   
    928     

L Brands, Inc.

    82,926   
    2,381     

Liberty Interactive Corp. Class A (1)

    68,478   
    220     

Netflix, Inc. (1)

    122,430   
    402     

O’Reilly Automotive, Inc. (1)

    87,568   
    15,735     

Pal Co., Ltd.

    505,746   
    325     

Shimamura Co., Ltd.

    32,394   
    3,767     

Vipshop Holdings Ltd. ADR (1)

    106,568   
    15,100     

Xebio Co., Ltd.

    266,524   
     

 

 

 
        1,964,332   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

54

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2% - (continued)      
          Semiconductors & Semiconductor Equipment - 2.0%  
    1,358     

Ambarella, Inc. (1)

  $ 99,338   
    740     

Avago Technologies Ltd.

    86,491   
    14,709     

Cypress Semiconductor Corp. (1)

    195,924   
    555,705     

GCL-Poly Energy Holdings Ltd. (1)

    168,063   
    4,005     

Integrated Device Technology, Inc. (1)

    72,851   
    9,901     

Micron Technology, Inc. (1)

    278,515   
    1,025     

NXP Semiconductors N.V. (1)

    98,523   
    5,260     

Pericom Semiconductor Corp.

    65,855   
    16,260     

Sumco Corp.

    245,334   
    7,122     

SunEdison Semiconductor Ltd. (1)

    159,034   
    16,412     

SunEdison, Inc. (1)

    415,552   
    3,570     

SunPower Corp. (1)

    114,918   
    1,920     

Tessera Technologies, Inc.

    69,331   
    1,050     

Tokyo Seimitsu Co., Ltd.

    22,632   
     

 

 

 
        2,092,361   
     

 

 

 
          Software & Services - 5.5%  
    3,121     

ACI Worldwide, Inc. (1)

    71,877   
    2,530     

Alibaba Group Holding Ltd. ADR (1)

    205,664   
    4,250     

AOL, Inc. (1)

    169,575   
    1,022     

Automatic Data Processing, Inc.

    86,400   
    1,440     

Barracuda Networks, Inc. (1)

    58,363   
    20,474     

Coupons.com, Inc. (1)

    256,539   
    867     

CyberArk Software Ltd. (1)

    54,578   
    15,380     

Dena Co., Ltd.

    307,231   
    14,860     

Enernoc, Inc. (1)

    164,203   
    2,333     

Facebook, Inc. Class A (1)

    183,770   
    1,274     

FireEye, Inc. (1)

    52,616   
    650     

FleetCor Technologies, Inc. (1)

    104,579   
    1,107     

Fortinet, Inc. (1)

    41,778   
    962     

Global Payments, Inc.

    96,469   
    13,537     

Gogo, Inc. (1)

    286,172   
    157     

Google, Inc. Class A (1)

    86,157   
    1,661     

Heartland Payment Systems, Inc.

    84,545   
    481     

LinkedIn Corp. Class A (1)

    121,275   
    1,818     

Logmein, Inc. (1)

    116,679   
    1,624     

MAXIMUS, Inc.

    103,952   
    640     

Mobileye N.V. (1)

    28,710   
    37,583     

Monster Worldwide, Inc. (1)

    221,364   
    1,990     

Nintendo Co., Ltd.

    334,121   
    25,762     

NSD Co., Ltd.

    373,526   
    40,977     

Optimal Payments plc (1)

    186,213   
    8,880     

Pandora Media, Inc. (1)

    158,419   
    665     

Proofpoint, Inc. (1)

    35,897   
    856     

Qualys, Inc. (1)

    42,389   
    805     

Red Hat, Inc. (1)

    60,584   
    1,544     

ServiceNow, Inc. (1)

    115,584   
    1,845     

SolarWinds, Inc. (1)

    89,999   
    301     

Tableau Software, Inc. Class A (1)

    29,450   
    5,795     

Tangoe, Inc. (1)

    79,276   
    10,100     

Tencent Holdings Ltd.

    208,453   
    2,054     

Tencent Holdings Ltd. ADR

    42,353   
    2,664     

Total System Services, Inc.

    105,388   
    2,390     

VASCO Data Security International, Inc. (1)

    60,754   
    627     

Verint Systems, Inc. (1)

    38,517   
    1,516     

Visa, Inc. Class A

    100,132   
    17,720     

Wellnet Corp.

    396,522   
    3,470     

Yelp, Inc. (1)

    136,683   
    1,880     

Zillow Group, Inc. Class A (1)

    183,563   
     

 

 

 
        5,680,319   
     

 

 

 

Shares or Principal Amount

 

Market Value *

 
COMMON STOCKS - 53.2% - (continued)      
            Technology Hardware & Equipment - 2.7%      
    24,955     

Amano Corp.

  $ 321,000   
    2,380     

Apple, Inc.

    297,857   
    1,020     

Canon, Inc.

    36,368   
    3,500     

Hewlett-Packard Co.

    115,395   
    900     

Hitachi High-Technologies Corp.

    26,082   
    50,500     

Hosiden Corp.

    295,436   
    629     

IPG Photonics Corp. (1)

    55,717   
    29,200     

Japan Digital Laboratory Co., Ltd.

    444,700   
    22,010     

Melco Holdings, Inc.

    454,078   
    21,410     

Nichicon Corp.

    197,516   
    18,125     

Nippon Ceramic Co., Ltd.

    258,317   
    267     

Palo Alto Networks, Inc. (1)

    39,441   
    123,323     

ParkerVision, Inc. (1)

    83,860   
    3,336     

Stratasys Ltd. (1)

    124,933   
    2,429     

Super Micro Computer, Inc. (1)

    69,882   
     

 

 

 
        2,820,582   
     

 

 

 
            Telecommunication Services - 0.4%      
    6,704     

inContact, Inc. (1)

    69,386   
    1,495     

Nippon Telegraph & Telephone Corp.

    100,950   
    700     

SBA Communications Corp. Class A (1)

    81,074   
    1,840     

SoftBank Corp.

    115,019   
     

 

 

 
        366,429   
     

 

 

 
            Transportation - 0.8%      
    548     

Alaska Air Group, Inc.

    35,105   
    3,494     

CSX Corp.

    126,098   
    793     

Delta Air Lines, Inc.

    35,400   
    432     

FedEx Corp.

    73,254   
    8,375     

Hertz Global Holdings, Inc. (1)

    174,535   
    960     

J.B. Hunt Transport Services, Inc.

    83,712   
    1,280     

Japan Airlines Co., Ltd.

    42,678   
    1,774     

JetBlue Airways Corp. (1)

    36,420   
    1,265     

Old Dominion Freight Line, Inc. (1)

    89,979   
    3,360     

Republic Airways Holdings, Inc. (1)

    41,126   
    702     

United Continental Holdings, Inc. (1)

    41,938   
    8,618     

UTi Worldwide, Inc. (1)

    77,821   
     

 

 

 
        858,066   
     

 

 

 
   

Total Common Stocks
(cost $53,530,624)

  $ 55,295,888   
     

 

 

 
     
CORPORATE BONDS - 3.7%      
            Auto Manufacturers - 2.4%  
   

FCA US LLC / CG Co-Issuer, Inc.

 
  $        1,580,000     

8.00%, 06/15/2019

  $ 1,655,129   
   

Fiat Chrysler Automobiles N.V.

 
    325,000     

4.50%, 04/15/2020 (2)

    327,113   
   

General Motors Co.

 
    525,000     

5.20%, 04/01/2045

    555,482   
     

 

 

 
        2,537,724   
     

 

 

 
            Commercial Banks - 0.6%  
   

CIT Group, Inc.

 
    350,000     

5.50%, 02/15/2019 (2)

    366,187   
   

Goldman Sachs Group, Inc.

 
    240,000     

5.38%, 05/10/2020 (3)(4)

    239,760   
     

 

 

 
        605,947   
     

 

 

 
            Office/Business Equipment - 0.3%  
   

CDW LLC / CDW Finance Corp.

 
    305,000     

5.00%, 09/01/2023

    314,150   
     

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

55

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Shares or Principal Amount

 

Market Value *

 
CORPORATE BONDS - (continued)      
            Telecommunications - 0.4%  
   

T-Mobile USA, Inc.

 
  $        356,000     

6.46%, 04/28/2019

  $ 367,570   
     

 

 

 
   

Total Corporate Bonds
(cost $3,772,371)

  $ 3,825,391   
     

 

 

 
     
FOREIGN GOVERNMENT OBLIGATIONS - 15.6%      
            Brazil - 0.7%  
   

Brazil Notas do Tesouro Nacional Serie B

 
  BRL        2,098,880     

6.00%, 08/15/2022 (5)

  $ 688,622   
     

 

 

 
            Greece - 4.9%  
   

Hellenic Republic Government Bond

  

  EUR        1,545,000     

3.00%, 02/24/2023 (3)(6)

    1,023,534   
    1,435,000     

3.00%, 02/24/2024 (3)(6)

    948,727   
    1,360,000     

3.00%, 02/24/2025 (3)(6)

    882,619   
    125,000     

3.00%, 02/24/2026 (3)(6)

    77,906   
    2,385,000     

3.00%, 02/24/2028 (3)(6)

    1,446,118   
    575,000     

3.00%, 02/24/2029 (3)(6)

    348,258   
    125,000     

3.00%, 02/24/2030 (3)(6)

    75,419   
    465,000     

3.00%, 02/24/2031 (3)(6)

    280,580   
     

 

 

 
        5,083,161   
     

 

 

 
            Mexico - 10.0%  
   

Mexican Udibonos

 
  MXN        135,777,656     

4.50%, 11/22/2035

    10,425,639   
     

 

 

 
   

Total Foreign Government Obligations
(cost $19,063,567)

  $ 16,197,422   
     

 

 

 
     
U.S. GOVERNMENT SECURITIES - 5.6%      
            U.S. Treasury Securities - 5.6%  
            U.S. Treasury Bonds - 5.6%  
   

Treasury Inflation Protected Security

 
  $        6,048,122     

0.63%, 02/15/2043 (5)

  $ 5,856,753   
     

 

 

 
        5,856,753   
     

 

 

 
   

Total U.S. Government Securities
(cost $4,785,531)

  $ 5,856,753   
     

 

 

 
     
CONVERTIBLE BONDS - 2.4%      
            Energy-Alternate Sources - 1.5%      
   

SunEdison, Inc.

 
    352,000     

0.25%, 01/15/2020 (2)

  $ 395,560   
    328,000     

2.00%, 10/01/2018

    589,170   
    328,000     

2.75%, 01/01/2021

    598,805   
     

 

 

 
        1,583,535   
     

 

 

 
            Oil & Gas - 0.9%      
   

Cobalt International Energy, Inc.

 
    1,192,000     

3.13%, 05/15/2024

    931,995   
     

 

 

 
   

Total Convertible Bonds
(cost $2,200,000)

  $ 2,515,530   
     

 

 

 
     

Shares or Principal Amount

 

Market Value *

 
EXCHANGE TRADED FUNDS - 1.2%      
            Other Investment Pools & Funds - 1.2%      
  $        7,106     

Health Care Select Sector SPDR Fund

  $ 509,358   
    35,717     

iShares MSCI Japan ETF

    459,321   
    2,710     

Powershares QQQ Trust Series 1

    291,677   
     

 

 

 
   

Total Exchange Traded Funds
(cost $1,276,351)

  $ 1,260,356   
     

 

 

 
PREFERRED STOCKS - 0.2%      
            Health Care Equipment & Services - 0.2%      
    53,625     

Corindus Vascular Robotics, Inc. (7)

    227,370   
     

 

 

 
   

Total Preferred Stocks
(cost $134,062)

  $ 227,370   
     

 

 

 
     
WARRANTS - 0.3%      
            Banks - 0.3%      
    596,843     

Alpha Bank A.E. (1)

  $ 348,486   
     

 

 

 
   

Total Warrants
(cost $833,874)

  $ 348,486   
     

 

 

 
     
RIGHTS - 0.1%      
            Software & Services - 0.1%      
    36,646     

Optimal Payments plc (1)

  $ 78,190   
     

 

 

 
   

Total Rights
(cost $47,469)

    78,190   
     

 

 

 
   

Total Long-Term Investments
(cost $85,643,849)

    85,605,386   
     

 

 

 
     
SHORT-TERM INVESTMENTS - 1.9%      
            Other Investment Pools & Funds - 1.9%      
    1,956,618     

Fidelity Money Market Class 1

  $ 1,956,618   
     

 

 

 
   

Total Short-Term Investments
(cost $1,956,618)

  $ 1,956,618   
   

Total Investments Excluding Purchased Options
(cost $87,600,467)

  84.2%   $ 87,562,004   
   

Total Purchased Options
(cost $781,035)

  0.5%     549,638   
     

 

 

 

 

 
   

Total Investments
(cost $88,381,502)^

  84.7%   $ 88,111,642   
     

 

 

 

 

 
   

Other Assets and Liabilities

  15.3%     15,929,249   
     

 

 

 

 

 
   

Total Net Assets

  100.0%   $ 104,040,891   
     

 

 

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

 

56

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Note: Percentage of investments as shown is the ratio of the total market value to total net assets.

 

     Prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange.

 

     The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types.

 

     Other than the industry classifications “Other Investment Pools and Funds” and “Exchange Traded Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s.

 

     For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for reporting ease.

 

^ At April 30, 2015, the cost of securities for federal income tax purposes was $88,976,328 and the aggregate gross unrealized appreciation and depreciation based on that cost were:

 

Unrealized Appreciation

   $ 7,942,640   

Unrealized Depreciation

         (8,807,326
  

 

 

 

Net Unrealized Depreciation

   $ (864,686
  

 

 

 

 

(1)  Non-income producing.

 

(2)  Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $1,088,860, which represents 1.0% of total net assets.

 

(3)  Variable rate securities; the rate reported is the coupon rate in effect at April 30, 2015.

 

(4)  Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first.

 

(5)  The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount.

 

(6)  These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At April 30, 2015, the aggregate value of these securities were $5,083,161, which represents 4.9% of total net assets.

 

(7)  This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At April 30, 2015, the aggregate fair value of this security was $227,370, which represents 0.2% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors.

 

OTC Option Contracts Outstanding at April 30, 2015  

Description

   Counter-
party
  Exercise Price/
FX Rate/Rate
    Expiration
Date
    Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 

Purchased option contracts:

                

Calls

                

Euro STOXX 50 Index Option

   JPM     3,661.57 EUR        06/19/15      EUR     1,304      $ 96,035      $ 136,174      $ (40,139

FTSE/MIB Index Option

   JPM     23,000.00 EUR        12/16/16      EUR     87            194,315        166,416        27,899   

Hang Seng Index Option

   GSC     30,000.00 HKD        12/30/15      HKD     346        47,892        45,237        2,655   

NIKKEI 225 Index Option

   JPM     20,000.00 JPY        12/11/15      JPY     6,865        56,018        41,596        14,422   
          

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

             8,602      $ 394,260      $ 389,423      $ 4,837   
          

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

             8,602      $ 394,260      $ 389,423      $ 4,837   
          

 

 

   

 

 

   

 

 

   

 

 

 

Written option contracts:

                

Calls

                

FTSE/MIB Index Option

   JPM     30,000.00 EUR        12/16/16      EUR     (87   $ (29,826   $ (25,139   $ (4,687
          

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                

Hang Seng Index Option

   GSC     26,000.00 HKD        06/29/15      HKD     (346   $ (13,721   $ (24,382   $ 10,661   

NIKKEI 225 Index Option

   JPM     17,500.00 JPY        06/12/15      JPY     (9,153     (5,393     (39,741     34,348   

NIKKEI 225 Index Option

   GSC     19,000.00 JPY        06/12/15      JPY     (8,509     (22,834     (22,880     46   
          

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

             (18,008   $ (41,948   $ (87,003   $     45,055   
          

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

             (18,095   $ (71,774   $     (112,142   $ 40,368   
          

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

57

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Exchange Traded Option Contracts Outstanding at April 30, 2015  

Description

   Exercise Price/
FX Rate/Rate
     Expiration
Date
     Number of
Contracts
    Market
Value *
    Premiums
Paid by
Fund
    Unrealized
Appreciation/
(Depreciation)
 
                 

Purchased option contracts:

                 

Calls

                 

Powershares DB US Dollar Index Option

     25.50 USD         05/08/15         USD         233,200      $ 6,996      $ 30,409      $ (23,413

Powershares QQQ Trust Series 1 Option

     114.00 USD         06/30/15         USD         22,300        7,805        19,187        (11,382

Russell 2000 Index Option

     1,500.00 USD         12/16/16         USD         1,700        40,120        41,787        (1,667

S&P 500 Index Option

     2,175.00 USD         06/19/15         USD         1,100        4,510        9,913        (5,403

S&P 500 Index Option

     2,160.00 USD         05/15/15         USD         7,500        3,750        168,228        (164,478

SPX Volatility Index Option

     24.00 USD         07/22/15         USD         11,800        12,980        12,987        (7

SPX Volatility Index Option

     17.00 USD         05/20/15         USD         78,700        70,830        89,812        (18,982
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

              356,300      $      146,991      $ 372,323      $ (225,332
           

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                 

SPX Volatility Index Option

     12.50 USD         05/20/15         USD         157,500      $ 4,725      $ 14,175      $ (9,450

S&P 500 Index Option

     1,650.00 USD         07/17/15         USD         1,100        3,135        4,433        (1,298

SPDR S&P 500 ETF Trust Option

     165.00 USD         07/17/15         USD         1,700        527        681        (154
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

              160,300      $ 8,387      $ 19,289      $ (10,902
           

 

 

   

 

 

   

 

 

   

 

 

 

Total purchased option contracts

              516,600      $ 155,378      $      391,612      $ (236,234
           

 

 

   

 

 

   

 

 

   

 

 

 

Written option contracts:

                 

Calls

                 

iPath S&P 500 VIX Short Term Option

     60.00 USD         01/15/16         USD         (173   $ (18,771     (61,213   $      42,442   

Russell 2000 Index Option

     1,250.00 USD         12/16/16         USD         (17     (178,755     (170,033     (8,722

SPX Volatility Index Option

     30.00 USD         05/20/15         USD         (787     (7,870     (13,324     5,454   

Utilities Select Sector SPDR Fund Option

     45.00 USD         06/19/15         USD         (1,185     (80,580     (112,656     32,076   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Calls

              (2,162   $ (285,976   $ (357,226   $ 71,250   
           

 

 

   

 

 

   

 

 

   

 

 

 

Puts

                 

CSX Corp. Option

     34.00 USD         05/15/15         USD         (93   $ (2,046     (5,018   $ 2,972   

iShares Russell 2000 ETF Option

     118.00 USD         05/15/15         USD         (222     (17,316     (24,744     7,428   

iShares Russell 2000 ETF Option

     118.00 USD         06/30/15         USD         (191     (47,750     (45,115     (2,635

Powershares QQQ Trust Series 1 Option

     106.00 USD         06/19/15         USD         (252     (47,124     (30,156     (16,968

S&P 500 Index Option

     1,950.00 USD         07/17/15         USD         (11     (24,640     (25,487     847   

SPDR S&P 500 ETF Trust Index Option

     202.00 USD         06/19/15         USD         (12     (2,928     (2,471     (457

SPDR S&P 500 ETF Trust Index Option

     195.00 USD         07/17/15         USD         (17     (3,842     (4,470     628   

SPX Volatility Index Option

     13.50 USD         05/20/15         USD         (1,575     (39,374     (41,044     1,670   
           

 

 

   

 

 

   

 

 

   

 

 

 

Total Puts

              (2,373   $ (185,020   $ (178,505   $ (6,515
           

 

 

   

 

 

   

 

 

   

 

 

 

Total written option contracts

              (4,535   $ (470,996   $ (535,731   $ 64,735   
           

 

 

   

 

 

   

 

 

   

 

 

 

 

Futures Contracts Outstanding at April 30, 2015  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Long position contracts:

              

DAX Index Future

     26         06/19/2015       $ 8,519,489       $ 8,059,773       $ (459,716

Euro STOXX 50 Future

     700         06/19/2015             27,575,264             27,410,513         (164,751

Euro-BUND Future

     94         06/08/2015         16,349,629         16,112,998         (236,631

FTSE/MIB Index Future

     5         06/19/2015         625,706         608,880         (16,826

Hang Seng Index Future

     2         05/28/2015         366,503         362,636         (3,867

IBEX 35 Index Future

     5         05/15/2015         624,780         605,531         (19,249

KOSPI 200 Index Future

     12         06/11/2015         1,481,077         1,480,875         (202

MSCI Taiwan Stock Index Future

     91         05/28/2015         3,375,896         3,297,840         (78,056

NIKKEI 225 Index Future

     40         06/11/2015         6,759,135         6,555,270         (203,865

SGX FTSE China A50 Index Future

     23         05/28/2015         380,436         379,799         (637

U.S. Treasury 10-Year Note Future

     27         06/19/2015         3,467,858         3,466,125         (1,733

U.S. Treasury CME Ultra Long Term Bond Future

     2         06/19/2015         344,749         329,000         (15,749

U.S. Treasury Long Bond Future

     27         06/19/2015         4,313,458         4,309,031         (4,427
              

 

 

 

Total

               $     (1,205,709
              

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

58

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Futures Contracts Outstanding at April 30, 2015 - (continued)  

Description

   Number of
Contracts
     Expiration
Date
     Notional
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

Short position contracts:

              

Australian 10-Year Bond Future

     75         06/15/2015       $ 7,501,563       $ 7,391,157       $ 110,406   

Australian SPI 200 Index Future

     49         06/18/2015         5,580,595         5,499,293         81,302   

BIST 30 Index Future

     942         06/30/2015         3,767,433         3,661,341         106,092   

CAC 40 Index Future

     8         05/15/2015         441,772         427,683         14,089   

CBOE Volatility Index Future

     7         06/17/2015         115,945         116,375         (430

Canadian Government 10-Year Bond Future

     43         06/19/2015         4,988,232         4,930,109         58,123   

Euro BUXL 30-Year Bond Future

     4         06/08/2015         748,318         727,415         20,903   

FTSE 100 Index Future

     28         06/19/2015         2,910,254         2,903,278         6,976   

FTSE KLCI Index Future

     85         05/29/2015         2,219,982         2,168,676         51,306   

FTSE/JSE Top 40 Future Index

     84         06/18/2015         3,436,569         3,413,852         22,717   

Japan 10-Year Bond Future

     12         06/11/2015         14,771,670         14,797,443         (25,773

Long Gilt Future

     24         06/26/2015         4,281,374         4,217,899         63,475   

Mexican Stock Exchange Index Future

     137         06/19/2015         3,918,595         3,962,496         (43,901

Russell 2000 Mini Index Future

     10         06/19/2015         1,216,468         1,216,400         68   

S&P 500 (E-Mini) Future

     167         06/19/2015         17,411,886         17,358,815         53,071   

S&P/TSX 60 Index Future

     29         06/18/2015         4,017,354         4,070,707         (53,353

SGX FTSE China A50 Index Future

     38         05/28/2015         540,222         532,190         8,032   

Tokyo Price Index Future

     145         06/11/2015         18,233,214         19,007,359         (774,145
              

 

 

 

Total

               $ (301,042
              

 

 

 

Total futures contracts

               $     (1,506,751
              

 

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015  

Reference Entity

   Counter-
party
   Notional
Amount
     Payments received
(paid) by the Fund
    Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

BMF Ibovespa Volatility Index

   GSC    BRL      217,054         BZM5        06/01/15       $     —       $     —       $ (3,474   $ (3,474

BMF Ibovespa Volatility Index

   GSC    BRL      220,923         BZM5        06/17/15                         (2,190     (2,190

Consumer Staples SPDR

   DEUT    USD      608,797         1M LIBOR -0.25%        04/13/16                         13,991        13,991   

Eurex Stoxx Bank

   GSC    EUR      122,061         (CAM5     06/01/15                         201        201   

Eurex Stoxx Bank

   GSC    EUR      140,148         (CAM5     06/19/15                         5,628        5,628   

iPath S&P 500 VIX

   MSC    USD      23,328         1M LIBOR - 2.90%        11/19/15                         (292     (292

iPath S&P 500 VIX

   MSC    USD      120,340         1M LIBOR - 2.90%        12/02/15                         15,565        15,565   

iPath S&P 500 VIX

   MSC    USD      222,329         1M LIBOR - 2.90%        12/09/15                         12,779        12,779   

iPath S&P 500 VIX

   MSC    USD      217,717         1M LIBOR - 2.90%        12/11/15                         8,167        8,167   

iPath S&P 500 VIX

   MSC    USD      1,652,333         1M LIBOR - 2.90%        12/19/15                         (20,712     (20,712

iPath S&P 500 VIX

   MSC    USD      169,606         1M LIBOR - 2.90%        12/24/15                         (7,469     (7,469

iPath S&P 500 VIX

   MSC    USD      127,417         1M LIBOR - 2.90%        02/13/16                         4,779        4,779   

iPath S&P 500 VIX

   MSC    USD      18,869         1M LIBOR - 2.90%        02/19/16                         (237     (237

iPath S&P 500 VIX

   MSC    USD      187,721         1M LIBOR - 2.90%        02/19/16                         (2,353     (2,353

iPath S&P 500 VIX

   MSC    USD      39,204         1M LIBOR - 2.90%        02/23/16                         (1,319     (1,319

iPath S&P 500 VIX

   MSC    USD      169,021         1M LIBOR - 2.90%        02/24/16                         (7,444     (7,444

iPath S&P 500 VIX

   MSC    USD      65,937         1M LIBOR - 2.90%        02/26/16                         (1,107     (1,107

iPath S&P 500 VIX

   JPM    USD      584,324         1M LIBOR - 2.80%        03/21/16                         (7,599     (7,599

iPath S&P 500 VIX

   JPM    USD      346,718         1M LIBOR - 2.80%        04/07/16                         33,308        33,308   

iPath S&P 500 VIX

   JPM    USD      239,995         1M LIBOR - 2.80%        04/11/16                         4,534        4,534   

iPath S&P 500 VIX

   JPM    USD      61,072         1M LIBOR - 2.80%        04/11/16                         2,774        2,774   

iPath S&P 500 VIX

   JPM    USD      274,955         1M LIBOR - 2.80%        04/15/16                         (505     (505

iPath S&P 500 VIX

   JPM    USD      35,628         1M LIBOR - 2.80%        04/25/16                         (598     (598

iShares Transportation

   CSI    USD      610,038         1M LIBOR - 2.35%        04/13/16                         9,516        9,516   

iShares U.S. Telecommunications ETF

   BOA    USD      599,201         1M LIBOR - 0.40%        02/20/16                         8,832        8,832   

iShares U.S. Telecommunications ETF

   BOA    USD      299,127         1M LIBOR - 0.40%        04/04/16                         5,772        5,772   

S&P 500 Energy Sector Index

   BOA    USD      303,810         1M LIBOR - 0.15%        04/15/16                         (2,519     (2,519

S&P 500 Financial Select Sector SPDR

   BOA    USD      303,252         1M LIBOR + 0.10%        03/31/16                         251        251   

S&P 500 Financial Select Sector SPDR

   BOA    USD      303,932         1M LIBOR + 0.10%        04/11/16                         (758     (758

S&P 500 Financial Select Sector SPDR

   BOA    USD      303,545         1M LIBOR + 0.10%        04/21/16                         (252     (252

 

The accompanying notes are an integral part of these financial statements.

 

 

  59  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

OTC Total Return Swap Contracts Outstanding at April 30, 2015 - (continued)  

Reference Entity

   Counter-
party
   Notional
Amount
     Payments received
(paid) by the Fund
    Expiration
Date
     Upfront
Premiums
Paid
     Upfront
Premiums
Received
     Market
Value *
    Unrealized
Appreciation/
(Depreciation)
 

S&P 500 High Beta Index

   DEUT    USD      810,933         1M LIBOR + 0.20%        01/29/16       $       $       $ 872      $ 872   

S&P 500 High Beta Index

   DEUT    USD      327,576         1M LIBOR + 0.17%        01/29/16                         (9,073     (9,073

S&P 500 High Beta Index

   DEUT    USD      10,356,816         1M LIBOR + 0.20%        04/29/16                         4,863        4,863   

S&P 500 Industrial Select Sector SPDR

   BOA    USD      304,125         1M LIBOR + 0.05%        04/11/16                         219        219   

S&P 500 Industrial Select Sector SPDR

   BOA    USD      582,571         1M LIBOR + 0.05%        03/03/16                         2,295        2,295   

S&P 500 Materials Select Sector Index

   DEUT    USD      599,508         1M LIBOR - 0.20%        03/16/16                         (4,070     (4,070

S&P 500 Utilities Select Sector SPDR

   BCLY    USD      260,058         1M LIBOR + 0.25%        06/30/15                         3,225        3,225   

S&P 500 Utilities Select Sector SPDR

   BOA    USD      1,060,055         1M LIBOR        02/26/16                         5,010        5,010   

S&P 500 Utilities Select Sector SPDR

   BOA    USD      522,396         1M LIBOR        02/26/16                         3,695        3,695   

Technology Select Sector Index

   BCLY    USD      320,712         (1M LIBOR + 0.45%     06/30/15                         8,517        8,517   

Technology Select Sector Index

   BCLY    USD      344,174         (1M LIBOR + 0.45%     06/30/15                         2,948        2,948   

Utilities Select Sector Index

   BCLY    USD      254,705         1M LIBOR + 0.25%        06/30/15                         1,186        1,186   

VelocityShares Inverse VIX

   MSC    USD      45,248         1M LIBOR - 2.50%        12/02/15                         (5,850     (5,850

VelocityShares Inverse VIX

   MSC    USD      274,204         1M LIBOR - 2.50%        12/09/15                         (12,421     (12,421

VelocityShares Inverse VIX

   MSC    USD      278,440         1M LIBOR - 2.50%        12/11/15                         (8,185     (8,185

VelocityShares Inverse VIX

   MSC    USD      171,020         1M LIBOR - 2.50%        12/12/15                         (5,027     (5,027

VelocityShares Inverse VIX

   MSC    USD      2,851,418         1M LIBOR - 2.50%        12/19/15                         56,020        56,020   

VelocityShares Inverse VIX

   MSC    USD      33,545         1M LIBOR - 2.50%        01/13/16                         (986     (986

VelocityShares Inverse VIX

   MSC    USD      560,371         1M LIBOR - 2.50%        01/13/16                         (16,473     (16,473

VelocityShares Inverse VIX

   MSC    USD      106,358         1M LIBOR - 2.50%        02/27/16                         2,166        2,166   

WIG20 Index

   GSC    PLN      7,524,112         KRSM5        06/19/15                         (187,754     (187,754
                

 

 

    

 

 

    

 

 

   

 

 

 

Total

                 $       $       $     (91,554   $     (91,554
                

 

 

    

 

 

    

 

 

   

 

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

AUD

   Buy      05/29/15       GSC    $     5,568,459       $     5,667,786       $ 99,327   

AUD

   Buy      05/29/15       SSG      1,244,762         1,244,322         (440

AUD

   Buy      05/29/15       CBA      302,381         299,427         (2,954

AUD

   Buy      06/17/15       SSG      2,758,513         2,811,194         52,681   

AUD

   Buy      06/17/15       GSC      531,268         546,928         15,660   

AUD

   Buy      06/17/15       MSC      225,167         235,187         10,020   

AUD

   Buy      06/17/15       BNP      293,707         299,903         6,196   

AUD

   Buy      06/17/15       BNP      120,878         124,696         3,818   

AUD

   Buy      06/17/15       CBA      298,262         301,481         3,219   

AUD

   Buy      06/17/15       JPM      70,842         73,397         2,555   

AUD

   Buy      06/17/15       GSC      114,781         116,804         2,023   

AUD

   Buy      06/17/15       TDB      272,413         269,124         (3,289

AUD

   Buy      06/17/15       UBS      1,486,166         1,475,837         (10,329

AUD

   Sell      05/29/15       CBA      4,738,884         4,717,361         21,523   

AUD

   Sell      05/29/15       BCLY      586,906         597,274         (10,368

AUD

   Sell      05/29/15       CBA      2,340,113         2,359,075         (18,962

AUD

   Sell      05/29/15       BOA      2,339,225         2,358,285               (19,060

AUD

   Sell      06/17/15       CBA      82,906         82,079         827   

AUD

   Sell      06/17/15       BCLY      250,242         253,339         (3,097

AUD

   Sell      06/17/15       GSC      91,509         95,496         (3,987

AUD

   Sell      06/17/15       GSC      137,869         142,059         (4,190

AUD

   Sell      06/17/15       RBS      406,900         411,972         (5,072

AUD

   Sell      06/17/15       HSBC      320,948         329,104         (8,156

AUD

   Sell      06/17/15       CBA      293,005         301,481         (8,476

AUD

   Sell      06/17/15       CBK      278,840         292,011         (13,171

AUD

   Sell      06/17/15       JPM      524,963         542,193         (17,230

AUD

   Sell      06/17/15       CBK      1,056,183         1,097,012         (40,829

AUD

   Sell      06/17/15       NAB      2,112,636         2,197,182         (84,546

AUD

   Sell      06/17/15       CBA      3,186,906         3,272,097         (85,191

 

The accompanying notes are an integral part of these financial statements.

 

 

  60  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

BRL

   Buy      05/05/15       MSC    $ 282,649       $ 305,477       $ 22,828   

BRL

   Buy      05/05/15       GSC      1,803,889         1,813,311         9,422   

BRL

   Buy      05/05/15       UBS      946,018         938,296         (7,722

BRL

   Buy      05/05/15       SCB      1,190,206         1,180,491         (9,715

BRL

   Buy      05/05/15       UBS      1,423,882         1,365,367         (58,515

BRL

   Buy      06/02/15       BCLY      1,483,058         1,428,770         (54,288

BRL

   Sell      05/05/15       SCB      1,197,245         1,180,491         16,754   

BRL

   Sell      05/05/15       GSC      1,828,234         1,813,311         14,923   

BRL

   Sell      05/05/15       MSC      307,990         305,476         2,514   

BRL

   Sell      05/05/15       UBS      2,161,700         2,303,664         (141,964

BRL

   Sell      06/02/15       UBS      1,410,432         1,352,000         58,432   

BRL

   Sell      06/02/15       SCB      285,666         278,208         7,458   

BRL

   Sell      06/02/15       GSC      290,132         289,363         769   

CAD

   Buy      05/29/15       TDB      2,365,201         2,379,467         14,266   

CAD

   Buy      05/29/15       BMO      2,365,597         2,379,467         13,870   

CAD

   Buy      05/29/15       CBA      4,664,440         4,663,655         (785

CAD

   Buy      06/17/15       BOA      1,051,461         1,096,663         45,202   

CAD

   Buy      06/17/15       TDB      681,818         712,334         30,516   

CAD

   Buy      06/17/15       GSC      529,143         543,361         14,218   

CAD

   Buy      06/17/15       CBA      258,223         270,024         11,801   

CAD

   Buy      06/17/15       SSG      249,732         258,428         8,696   

CAD

   Buy      06/17/15       BMO      258,565         261,741         3,176   

CAD

   Buy      06/17/15       SCB      4,764         4,969         205   

CAD

   Sell      06/17/15       TDB      541,004         539,220         1,784   

CAD

   Sell      06/17/15       SSG      260,992         260,085         907   

CAD

   Sell      06/17/15       BCLY      3,959         4,141         (182

CAD

   Sell      06/17/15       BNP      257,052         257,600         (548

CAD

   Sell      06/17/15       JPM      108,288         111,820         (3,532

CAD

   Sell      06/17/15       CBA      134,759         141,638         (6,879

CAD

   Sell      06/17/15       GSC      260,396         270,853         (10,457

CAD

   Sell      06/17/15       TDB      256,247         267,539         (11,292

CAD

   Sell      06/17/15       MSC      271,982         283,277         (11,295

CAD

   Sell      06/17/15       TDB      409,884         428,229         (18,345

CAD

   Sell      06/17/15       GSC      1,043,637         1,096,663         (53,026

CHF

   Sell      05/29/15       UBS      9,622,418         9,936,853               (314,435

CHF

   Sell      06/17/15       TDB      249,380         254,483         (5,103

CHF

   Sell      06/17/15       GSC      1,022,197         1,045,852         (23,655

CHF

   Sell      06/17/15       JPM      526,251         551,918         (25,667

CHF

   Sell      06/17/15       CSFB      533,424         561,581         (28,157

DKK

   Buy      06/17/15       CBK      290         302         12   

DKK

   Sell      06/17/15       UBS      292         301         (9

EUR

   Buy      05/04/15       DEUT      285,411         287,008         1,597   

EUR

   Buy      05/05/15       WEST      188,111         188,689         578   

EUR

   Buy      05/29/15       DEUT          1,897,920             1,962,378         64,458   

EUR

   Buy      06/17/15       RBS      1,290,995         1,368,497         77,502   

EUR

   Buy      06/17/15       NAB      1,295,907         1,369,621         73,714   

EUR

   Buy      06/17/15       JPM      2,333,495         2,398,801         65,306   

EUR

   Buy      06/17/15       HSBC      1,171,043         1,224,681         53,638   

EUR

   Buy      06/17/15       TDB      518,310         550,545         32,235   

EUR

   Buy      06/17/15       CBA      561,203         586,499         25,296   

EUR

   Buy      06/17/15       JPM      416,371         439,312         22,941   

EUR

   Buy      06/17/15       RBC      286,951         304,485         17,534   

EUR

   Buy      06/17/15       MSC      447,761         462,907         15,146   

EUR

   Buy      06/17/15       UBS      269,057         283,137         14,080   

EUR

   Buy      06/17/15       RBC      443,744         456,166         12,422   

EUR

   Buy      06/17/15       UBS      270,883         283,137         12,254   

EUR

   Buy      06/17/15       UBS      261,330         271,902         10,572   

EUR

   Buy      06/17/15       UBS      171,667         182,017         10,350   

 

The accompanying notes are an integral part of these financial statements.

 

 

  61  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

EUR

   Buy      06/17/15       MSC    $ 280,990       $ 289,878       $ 8,888   

EUR

   Buy      06/17/15       MSC      143,218         151,680         8,462   

EUR

   Buy      06/17/15       RBC      307,265         315,721         8,456   

EUR

   Buy      06/17/15       TDB      282,142         289,879         7,737   

EUR

   Buy      06/17/15       DEUT      224,062         231,454         7,392   

EUR

   Buy      06/17/15       CBK      236,063         242,689         6,626   

EUR

   Buy      06/17/15       TDB      281,403         287,632         6,229   

EUR

   Buy      06/17/15       JPM      111,544         113,480         1,936   

EUR

   Sell      05/29/15       GSC      1,954,544         1,962,379         (7,835

EUR

   Sell      05/29/15       DEUT      9,782,924         10,115,178         (332,254

EUR

   Sell      06/17/15       TDB      383,069         384,258         (1,189

EUR

   Sell      06/17/15       BOA      47,217         50,560         (3,343

EUR

   Sell      06/17/15       GSC      101,129         104,491         (3,362

EUR

   Sell      06/17/15       CBA      58,797         62,919         (4,122

EUR

   Sell      06/17/15       BNP      315,228         322,461         (7,233

EUR

   Sell      06/17/15       BNYM      142,439         151,681         (9,242

EUR

   Sell      06/17/15       BNP      268,938         279,767         (10,829

EUR

   Sell      06/17/15       BOA      288,323         305,609         (17,286

EUR

   Sell      06/17/15       RBC      335,992         353,922         (17,930

EUR

   Sell      06/17/15       MSC      450,762         471,895         (21,133

EUR

   Sell      06/17/15       BCLY      532,649         557,286         (24,637

EUR

   Sell      06/17/15       UBS      531,988         561,780         (29,792

EUR

   Sell      06/17/15       MSC      567,569         601,105         (33,536

EUR

   Sell      06/17/15       MSC      587,474         621,329         (33,855

EUR

   Sell      06/17/15       JPM      1,454,677         1,506,695         (52,018

EUR

   Sell      06/17/15       HSBC      2,049,609         2,105,553         (55,944

EUR

   Sell      06/17/15       UBS      1,178,461         1,238,164         (59,703

EUR

   Sell      06/17/15       NAB      6,611,357         6,987,423         (376,066

EUR

   Sell      06/17/15       RBS      6,589,585         6,985,176               (395,591

GBP

   Buy      05/01/15       GSC      93,884         93,379         (505

GBP

   Buy      06/17/15       GSC      1,044,335         1,078,739         34,404   

GBP

   Buy      06/17/15       JPM      227,655         234,775         7,120   

GBP

   Buy      06/17/15       RBS      364,468         371,343         6,875   

GBP

   Buy      06/17/15       BCLY      366,064         372,878         6,814   

GBP

   Buy      06/17/15       BCLY      123,440         128,897         5,457   

GBP

   Buy      06/17/15       JPM      213,991         219,430         5,439   

GBP

   Buy      06/17/15       CSFB      1,472         1,534         62   

GBP

   Sell      05/01/15       HSBC      17,474         17,345         129   

GBP

   Sell      05/29/15       GSC          4,736,227             4,837,281         (101,054

GBP

   Sell      06/17/15       SSG      251,264         250,120         1,144   

GBP

   Sell      06/17/15       UBS      1,489         1,535         (46

GBP

   Sell      06/17/15       MSC      240,574         242,448         (1,874

GBP

   Sell      06/17/15       DEUT      104,655         107,413         (2,758

GBP

   Sell      06/17/15       BCLY      179,266         182,603         (3,337

GBP

   Sell      06/17/15       RBS      177,716         181,069         (3,353

GBP

   Sell      06/17/15       GSC      521,167         524,792         (3,625

GBP

   Sell      06/17/15       CBK      256,668         263,931         (7,263

GBP

   Sell      06/17/15       BOM      262,478         270,069         (7,591

GBP

   Sell      06/17/15       CBA      263,457         271,602         (8,145

GBP

   Sell      06/17/15       UBS      266,137         276,206         (10,069

GBP

   Sell      06/17/15       BOA      1,029,287         1,078,738         (49,451

HKD

   Buy      06/17/15       CSFB      225,370         225,403         33   

HKD

   Buy      06/17/15       CSFB      5,150         5,161         11   

HKD

   Buy      06/17/15       BCLY      143,985         143,990         5   

HKD

   Buy      06/17/15       JPM      6,835         6,838         3   

HKD

   Buy      06/17/15       HSBC      205,151         205,146         (5

HKD

   Buy      06/17/15       JPM      146,448         146,441         (7

HKD

   Sell      05/06/15       SSG      10,482         10,484         (2

 

The accompanying notes are an integral part of these financial statements.

 

 

  62  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

HKD

   Sell      06/17/15       JPM    $ 6,189       $ 6,193       $ (4

HKD

   Sell      06/17/15       DEUT      12,252         12,257         (5

HKD

   Sell      06/17/15       CSFB      192,468         192,502         (34

HKD

   Sell      06/17/15       MSC      239,321         239,595         (274

HKD

   Sell      06/17/15       CBK      347,631         348,104         (473

INR

   Buy      06/17/15       HSBC      387,105         383,607         (3,498

INR

   Buy      06/17/15       JPM      5,880,244         5,853,681         (26,563

INR

   Sell      06/17/15       HSBC      137,739         136,419         1,320   

INR

   Sell      06/17/15       DEUT      2,266,672         2,265,970         702   

JPY

   Buy      05/07/15       HSBC      17,326         17,278         (48

JPY

   Buy      05/08/15       DEUT      69,481         69,207         (274

JPY

   Buy      05/29/15       HSBC      4,866,157         4,872,550         6,393   

JPY

   Buy      06/17/15       CBK      264,100         268,460         4,360   

JPY

   Buy      06/17/15       JPM      351,161         355,157         3,996   

JPY

   Buy      06/17/15       JPM      102,471         103,967         1,496   

JPY

   Buy      06/17/15       DEUT      102,473         103,959         1,486   

JPY

   Buy      06/17/15       CSFB      58,763         59,588         825   

JPY

   Buy      06/17/15       RBS      905,815         906,324         509   

JPY

   Buy      06/17/15       GSC      85,149         85,615         466   

JPY

   Buy      06/17/15       HSBC      156,967         157,345         378   

JPY

   Buy      06/17/15       DEUT      105,882         105,358         (524

JPY

   Buy      06/17/15       JPM      530,564         529,053         (1,511

JPY

   Buy      06/17/15       DEUT      567,147         565,614         (1,533

JPY

   Buy      06/17/15       RBS      1,061,030         1,059,136         (1,894

JPY

   Sell      05/29/15       DEUT      1,600,126         1,593,388         6,738   

JPY

   Sell      05/29/15       MSC      5,856,769         5,867,962         (11,193

JPY

   Sell      06/17/15       GSC      2,011,140         2,004,467         6,673   

JPY

   Sell      06/17/15       JPM      103,533         103,137         396   

JPY

   Sell      06/17/15       BCLY      59,680         60,367         (687

JPY

   Sell      06/17/15       BNP      104,040         104,788         (748

JPY

   Sell      06/17/15       MSC      267,692         268,461         (769

JPY

   Sell      06/17/15       BNP      58,657         59,479         (822

JPY

   Sell      06/17/15       SSG      1,237,572         1,238,789         (1,217

JPY

   Sell      06/17/15       MSC      1,205,639         1,209,418         (3,779

JPY

   Sell      06/17/15       DEUT          13,174,401             13,365,396               (190,995

JPY

   Sell      06/17/15       JPM      13,173,103         13,365,404         (192,301

KRW

   Buy      06/17/15       BCLY      263,634         272,117         8,483   

KRW

   Buy      06/17/15       DEUT      132,756         137,059         4,303   

KRW

   Sell      06/17/15       CBK      195,141         204,588         (9,447

KRW

   Sell      06/17/15       CBK      194,234         204,587         (10,353

MXN

   Buy      05/29/15       SCB      2,486,256         2,461,980         (24,276

MXN

   Buy      06/17/15       MSC      128,702         130,497         1,795   

MXN

   Buy      06/17/15       RBC      128,733         130,497         1,764   

MXN

   Buy      06/17/15       MSC      122,867         119,519         (3,348

MXN

   Buy      06/17/15       SCB      3,112,356         3,037,996         (74,360

MXN

   Sell      05/29/15       DEUT      2,192,728         2,186,721         6,007   

MXN

   Sell      05/29/15       SCB      273,544         275,259         (1,715

MXN

   Sell      06/17/15       DEUT      518,680         511,010         7,670   

MXN

   Sell      06/17/15       SSG      264,602         260,994         3,608   

MXN

   Sell      06/17/15       JPM      129,447         130,432         (985

MXN

   Sell      06/17/15       MSC      1,472,509         1,494,575         (22,066

MXN

   Sell      06/17/15       UBS      3,000,157         3,039,295         (39,138

MXN

   Sell      06/17/15       RBC      4,415,545         4,476,059         (60,514

MXN

   Sell      06/17/15       MSC      4,414,568         4,476,124         (61,556

NOK

   Buy      06/17/15       UBS      272,217         287,134         14,917   

NOK

   Sell      06/17/15       CBK      263,521         287,134         (23,613

NZD

   Buy      06/17/15       WEST      128,625         135,214         6,589   

NZD

   Buy      06/17/15       CBA      128,686         135,215         6,529   

 

The accompanying notes are an integral part of these financial statements.

 

 

  63  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Foreign Currency Contracts Outstanding at April 30, 2015 - (continued)  

Currency

  

Buy/Sell

   Delivery
Date
     Counterparty    Contract
Amount
     Market
Value *
     Unrealized
Appreciation/
(Depreciation)
 

NZD

   Buy      06/17/15       JPM    $ 260,965       $ 264,352       $ 3,387   

NZD

   Sell      06/17/15       GSC      267,481         270,430         (2,949

NZD

   Sell      06/17/15       UBS      525,934         534,022         (8,088

PLN

   Buy      05/29/15       DEUT      860,442         885,526         25,084   

PLN

   Buy      05/29/15       BNP      270,716         281,393         10,677   

PLN

   Buy      05/29/15       GSC      466,239         466,212         (27

PLN

   Sell      05/29/15       DEUT      816,269         847,785         (31,516

RUB

   Buy      06/17/15       JPM      503,854         568,472         64,618   

RUB

   Buy      06/17/15       JPM      548,803         533,362         (15,441

RUB

   Sell      06/17/15       JPM      555,912         568,472         (12,560

RUB

   Sell      06/17/15       JPM      512,404         533,362         (20,958

SEK

   Buy      06/17/15       MSC      778,500         803,555         25,055   

SEK

   Buy      06/17/15       UBS      296,685         311,573         14,888   

SEK

   Buy      06/17/15       CBK      270,417         279,743         9,326   

SEK

   Buy      06/17/15       BNP      256,174         265,330         9,156   

SEK

   Buy      06/17/15       MSC      225,868         233,019         7,151   

SEK

   Buy      06/17/15       CBK      261,113         267,492         6,379   

SEK

   Buy      06/17/15       BNP      245,127         246,232         1,105   

SEK

   Buy      06/17/15       SSG      452,626         453,066         440   

SEK

   Buy      06/17/15       GSC      589         601         12   

SEK

   Buy      06/17/15       JPM      350         361         11   

SEK

   Sell      06/17/15       UBS      935         961         (26

SGD

   Sell      06/17/15       GSC      261,437         268,049         (6,612

TRY

   Buy      06/17/15       JPM      116,883         116,186         (697

TRY

   Sell      06/17/15       JPM      118,934         116,186         2,748   

TWD

   Buy      05/29/15       JPM      4,271,930         4,328,488         56,558   

TWD

   Buy      06/17/15       JPM      2,041,311         2,075,121         33,810   

TWD

   Buy      06/17/15       CBA      1,250,585         1,273,953         23,368   

TWD

   Sell      06/17/15       CBK          10,548,635             10,917,976         (369,341

ZAR

   Buy      05/29/15       DEUT      817,451         837,735         20,284   

ZAR

   Buy      05/29/15       BOA      918,969         919,710         741   

ZAR

   Sell      05/29/15       GSC      923,748         919,710         4,038   

ZAR

   Sell      05/29/15       DEUT      811,496         837,734         (26,238

ZAR

   Sell      06/17/15       JPM      2,903,853         3,013,552         (109,699
                 

 

 

 

Total

                  $     (2,650,886
                 

 

 

 

 

* See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of securities.

 

The accompanying notes are an integral part of these financial statements.

 

 

64

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Counterparty Abbreviations:

BCLY

   Barclays

BMO

   Bank of Montreal

BNP

   BNP Paribas Securities Services

BOA

   Banc of America Securities LLC

CBA

   Commonwealth Bank of Australia

CBK

   Citibank NA

CSFB

   Credit Suisse First Boston Corp.

CSI

   Credit Suisse International

DEUT

   Deutsche Bank Securities, Inc.

GSC

   Goldman Sachs & Co.

HSBC

   HSBC Bank USA

JPM

   JP Morgan Chase & Co.

MSC

   Morgan Stanley

NAB

   National Australia Bank Limited

RBC

   RBC Dominion Securities, Inc.

RBS

   RBS Greenwich Capital

SCB

   Standard Chartered Bank

SSG

   State Street Global Markets LLC

TDB

   Toronto-Dominion Bank

UBS

   UBS AG

WEST

   Westpac International
Currency Abbreviations:

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CHF

   Swiss Franc

DKK

   Danish Krone

EUR

   Euro

GBP

   British Pound

HKD

   Hong Kong Dollar

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   South Korea Won

MXN

   Mexican Peso

NOK

   Norwegian Krone

NZD

   New Zealand Dollar

PLN

   Polish Zloty

RUB

   Russian Ruble

SEK

   Swedish Krona

SGD

   Singapore Dollar

TRY

   Turkish Lira

TWD

   Taiwanese Dollar

USD

   United States Dollar

ZAR

   South African Rand
 

 

GLOSSARY: (abbreviations used in preceding Schedule of Investments)
Index Abbreviations:

BIST

   Borsa Istanbul 100 Index

CAC

   Cotation Assistee en Continu

CBOE

   Chicago Board Options Exchange

CME

   Chicago Mercantile Index

DAX

   Deutscher Aktien Index

FTSE

   Financial Times and Stock Exchange

IBEX

   Spanish Stock Index

JSE

   Johannesburg Stock Exhange

KOSPI

   Korea Composite Stock Price

KRSM5

   WIG20 Index Future

MIB

   Milano Italia Borsa

MSCI

   Morgan Stanley Capital International

S&P

   Standard & Poors

SGX

   Singapore Exchange

SPX

   Standard and Poor’s 500 Index

TSX

   Toronto Stock Exchange

WIG20

   Capitalization-weighted stock market index of 20 largest companies on the Warsaw Stock Exchange
Other Abbreviations:

ADR

   American Depositary Receipt

ETF

   Exchange Traded Fund

J-REIT

   Japanese Real Estate Investment Trust

MSCI

   Morgan Stanley Capital International

OTC

   Over-the-Counter

REIC

   Real Estate Investment Company

REIT

   Real Estate Investment Trust

SPDR

   Standard & Poor’s Depositary Receipt
 

 

The accompanying notes are an integral part of these financial statements.

 

 

  65  

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

Fair Valuation Summary

The following is a summary of the fair valuations according to the inputs used as of April 30, 2015 in valuing the Fund’s investments.

 

     Total     Level 1 (1)     Level 2 (1)     Level 3  

Assets

        

Common Stocks

        

Automobiles & Components

   $ 2,993,199      $ 110,734      $ 2,882,465      $   

Banks

     5,718,360               5,718,360          

Capital Goods

     4,988,687        971,186        4,017,501          

Commercial & Professional Services

     1,481,651        1,055,945        425,706          

Consumer Durables & Apparel

     3,693,758        853,413        2,840,345          

Consumer Services

     834,258        773,599        60,659          

Diversified Financials

     1,823,570        1,146,344        677,226          

Energy

     4,561,917        2,020,754        2,541,163          

Food & Staples Retailing

     255,253        90,156        165,097          

Food, Beverage & Tobacco

     414,869        317,347        97,522          

Health Care Equipment & Services

     2,310,127        1,648,328        661,799          

Insurance

     1,213,652               1,213,652          

Materials

     2,253,538        842,850        1,410,688          

Media

     2,303,088        782,203        1,520,885          

Pharmaceuticals, Biotechnology & Life Sciences

     3,295,230        3,163,582        131,648          

Real Estate

     3,372,642        289,201        3,083,441          

Retailing

     1,964,332        1,159,668        804,664          

Semiconductors & Semiconductor Equipment

     2,092,361        1,656,332        436,029          

Software & Services

     5,680,319        3,874,253        1,806,066          

Technology Hardware & Equipment

     2,820,582        787,085        2,033,497          

Telecommunication Services

     366,429        150,460        215,969          

Transportation

     858,066        815,388        42,678          

Corporate Bonds

     3,825,391               3,825,391          

Foreign Government Obligations

     16,197,422               16,197,422          

U.S. Government Securities

     5,856,753               5,856,753          

Convertible Bonds

     2,515,530               2,515,530          

Exchange Traded Funds

     1,260,356        1,260,356                 

Preferred Stocks

     227,370                      227,370   

Warrants

     348,486        348,486                 

Rights

     78,190        78,190                 

Short-Term Investments

     1,956,618        1,956,618                 

Purchased Options

     549,638        155,378        394,260          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $     88,111,642      $     26,307,856      $     61,576,416      $     227,370   
  

 

 

   

 

 

   

 

 

   

 

 

 

Foreign Currency Contracts (2)

   $ 1,544,686      $      $ 1,544,686      $   

Futures Contracts (2)

     596,560        596,560                 

Swaps - Total Return (2)

     217,113               217,113          
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,358,359      $ 596,560      $ 1,761,799      $   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

        

Foreign Currency Contracts (2)

   $ (4,195,572   $      $ (4,195,572   $   

Futures Contracts (2)

     (2,103,311     (2,103,311              

Swaps - Total Return (2)

     (308,667            (308,667       

Written Options

     (542,770     (470,996     (71,774       
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (7,150,320   $ (2,574,307   $ (4,576,013   $   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the six-month period ended April 30, 2015, there were no transfers from Level 1 to Level 2, and investments valued at $502,222 were transferred from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to:

 

  a) Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1).

 

  b) U.S. Treasury securities that no longer represent the most recent issue (transfer into Level 2).

 

  c) Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1).

 

(2)  Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments.

 

The accompanying notes are an integral part of these financial statements.

 

 

66

 


Hartford Real Total Return Fund

Schedule of Investments – (continued)

April 30, 2015 (Unaudited)

 

 

 

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended April 30, 2015:

 

     Preferred
Stocks
     Total  

Beginning balance

   $      196,160       $      196,160   

Purchases

               

Sales

               

Accrued discounts/(premiums)

               

Total realized gain/(loss)

               

Net change in unrealized appreciation/depreciation

     31,210         31,210   

Transfers into Level 3 (1)

               

Transfers out of Level 3 (1)

               
  

 

 

    

 

 

 

Ending balance

   $ 227,370       $ 227,370   

The change in net unrealized appreciation/depreciation relating to the Level 3 investment held at April 30, 2015 was $31,210.

 

(1)  Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to:

 

  a) Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3).

 

  b) Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3).

 

  c) Investments that have certain restrictions on trading (transfer into level 3) or investments where trading restrictions have expired (transfer out of Level 3).

 

Note: For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period.

 

The accompanying notes are an integral part of these financial statements.

 

 

  67  

 


Hartford Funds – Alternative Funds

Statements of Assets and Liabilities

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Global Alpha
Fund
    The Hartford
Global Real
Asset Fund
    Hartford
Long/Short
Global Equity
Fund
    Hartford Real
Total Return
Fund
 

Assets:

        

Investments in securities, at market value

   $ 24,553,483      $ 368,297,059      $ 21,901,950      $ 88,111,642   

Cash

     848,041        8,149        128,181        384,557   

Cash collateral

     143,426        5,667,000        7,755,558        17,706,160   

Foreign currency on deposit with custodian

            189,281               29,535   

Unrealized appreciation on foreign currency contracts

     201,156        234,976        78        1,544,686   

Unrealized appreciation on OTC swap contracts

     73,252        68,910               217,113   

Receivables:

        

Investment securities sold

     729,747        6,568,618        465,160        1,997,398   

Fund shares sold

     528        82,983        44,706        154   

Dividends and interest

     110,584        904,142        24,759        543,954   

Variation margin on financial derivative instruments

            226,139               545,687   

OTC swap premiums paid

     368,306                        

Other assets

     56,640        170,967        52,816        50,501   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

     27,085,163        382,418,224        30,373,208        111,131,387   
  

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

        

Unrealized depreciation on foreign currency contracts

     450,617        724,424        173        4,195,572   

Bank overdraft - foreign cash

     1,122               169,788          

Cash collateral

                          310,000   

Unrealized depreciation on OTC swap contracts

     112,099        38,695               308,667   

Securities sold short, at market value

                   11,340,197          

Payables:

        

Investment securities purchased

     1,127,849        4,217,449        71,817        1,613,099   

Fund shares redeemed

            460,958                 

Investment management fees

     11,416        293,296        21,464        103,830   

Variation margin on financial derivative instruments

     34,666                        

Distribution fees

     3,748        17,946        2,780        352   

Dividends on securities sold short

                   45,285          

Accrued expenses

     12,625        79,694        14,178        16,206   

Written options

     9,554        16,800               542,770   

OTC Swap premiums received

     142,068                        
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,905,764        5,849,262        11,665,682        7,090,496   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net assets

   $ 25,179,399      $ 376,568,962      $ 18,707,526      $ 104,040,891   
  

 

 

   

 

 

   

 

 

   

 

 

 

Summary of Net Assets:

        

Capital stock and paid-in-capital

   $ 25,894,296      $ 459,092,331      $ 18,050,443      $ 104,493,620   

Undistributed (distributions in excess of) net investment income

     (80,558     640,969        (157,981     (661,296

Accumulated net realized gain (loss)

     (494,248     (73,908,837     (364,461     4,565,855   

Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency

     (140,091     (9,255,501     1,179,525        (4,357,288
  

 

 

   

 

 

   

 

 

   

 

 

 

Net assets

   $     25,179,399      $     376,568,962      $     18,707,526      $     104,040,891   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

     450,000,000        650,000,000        300,000,000        450,000,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Par value

   $ 0.001      $ 0.001      $ 0.001      $ 0.001   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class A:     Net asset value per share

   $ 9.51      $ 9.51      $ 10.36      $ 10.17   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Maximum offering price per share

   $ 10.06      $ 10.06      $ 10.96      $ 10.76   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     490,562        3,339,570        442,917        61,430   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 4,663,654      $ 31,749,031      $ 4,590,228      $ 624,654   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C:     Net asset value per share

   $ 9.34      $ 9.33      $ 10.31      $ 10.06   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     208,067        1,402,565        218,577        18,985   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 1,944,081      $ 13,083,681      $ 2,254,097      $ 191,031   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I:      Net asset value per share

   $ 9.57      $ 9.50      $ 10.38      $ 10.22   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Shares outstanding

     253,138        2,857,927        442,687        17,950   
  

 

 

   

 

 

   

 

 

   

 

 

 

                 Net Assets

   $ 2,422,457      $ 27,156,976      $ 4,594,292      $ 183,405   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

68

 


Hartford Funds – Alternative Funds

Statements of Assets and Liabilities – (continued)

April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Global Alpha
Fund
     The Hartford
Global Real
Asset Fund
     Hartford
Long/Short
Global Equity
Fund
     Hartford Real
Total Return
Fund
 

Class R3:   Net asset value per share

   $ 9.42       $ 9.54       $       $ 10.12   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     200,000         18,822                 10,345   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,883,208       $ 179,523       $       $ 104,645   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R4:   Net asset value per share

   $ 9.48       $ 9.53       $       $ 10.16   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     200,000         334,632                 10,344   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,896,634       $ 3,187,388       $       $ 105,087   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class R5:   Net asset value per share

   $ 9.55       $ 9.51       $       $ 10.21   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     200,000         57,905                 10,343   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 1,910,152       $ 550,791       $       $ 105,573   
  

 

 

    

 

 

    

 

 

    

 

 

 

Class Y:     Net asset value per share

   $ 9.57       $ 9.51       $ 10.38       $ 10.22   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Shares outstanding

     1,092,860         31,613,534         700,001         10,054,257   
  

 

 

    

 

 

    

 

 

    

 

 

 

                 Net Assets

   $ 10,459,213       $ 300,661,572       $ 7,268,909       $ 102,726,496   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost of investments

   $     24,424,998       $     376,882,946       $     20,570,475       $     88,381,502   

Cost of foreign currency on deposit with custodian

   $       $ 185,506       $       $ 29,500   

Cost of Bank overdraft - foreign cash

   $ 1,178       $       $ 174,680       $   

Proceeds of Securities sold short

   $       $       $ 11,184,011       $   

Proceeds of written option contracts

   $ 11,458       $ 27,705       $       $ 647,873   

 

The accompanying notes are an integral part of these financial statements.

 

 

  69  

 


Hartford Funds – Alternative Funds

Statements of Operations

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Global
Alpha Fund
    The Hartford
Global Real
Asset Fund
    Hartford
Long/Short
Global

Equity Fund
    Hartford Real
Total Return
Fund
 

Investment Income:

        

Dividends

   $      $ 3,071,937      $ 153,724      $ 528,537   

Interest

     100,916        366,701               704,295   

Other Income

                          704   

Less: Foreign tax withheld

     971        (234,889     (6,875     (32,601
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income, net

     101,887        3,203,749        146,849        1,200,935   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Investment management fees

     68,074        2,124,811        121,545        633,513   

Administrative services fees

        

Class R3

     1,873        192               101   

Class R4

     1,414        2,223               76   

Class R5

     949        253               51   

Transfer agent fees

        

Class A

     492        36,603        43        252   

Class C

     134        14,418        41        86   

Class I

     267        18,756        52        24   

Class R3

            125                 

Class R4

            66                 

Class R5

            37                 

Class Y

     82        2,382        53        843   

Distribution fees

        

Class A

     5,851        45,260        5,075        743   

Class C

     9,704        72,156        10,555        775   

Class R3

     4,684        480               252   

Class R4

     2,357        3,704               126   

Custodian fees

     5,454        20,068        4,931        8,926   

Registration and filing fees

     36,086        45,267        33,374        58,307   

Accounting services fees

     3,136        48,058        2,170        13,198   

Board of Directors’ fees

     843        7,091        843        1,984   

Dividend and interest expense on securities sold short

                   101,854          

Audit fees

     5,454        17,951        5,158        6,546   

Short position fees

                   31,228          

Other expenses

     6,772        28,731        5,477        8,975   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses (before waivers and fees paid indirectly)

     153,626        2,488,632        322,399        734,778   

Expense waivers

                   (3,805     (148

Management fee waivers

            (723,657     (35,650     (45,402

Commission Recapture

            (2,127     (259     (425

Custodian fee offset

     (13                   (9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total waivers and fees paid indirectly

     (13     (725,784     (39,714     (45,984
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net

     153,613        1,762,848        282,685        688,794   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss)

     (51,726     1,440,901        (135,836     512,141   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions:

        

Net realized gain (loss) on investments

     (217,677     (23,394,578     (763,750     (1,273,613

Net realized gain (loss) on purchased options contracts

     103,533        (64,303            (206,618

Net realized gain (loss) on futures contracts

     (378,365     (11,171,616            401,769   

Net realized gain (loss) on securities sold short

                   575,051          

Net realized gain (loss) on written options contracts

     3,226        14,365               655,342   

Net realized gain (loss) on swap contracts

     270,936        (686,532            (2,561,868

Net realized gain (loss) on foreign currency contracts

     311,763        601,025        1,870        10,009,346   

Net realized gain (loss) on other foreign currency transactions

     32,156        5,550        (4,678     (225,127
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     125,572        (34,696,089     (191,507     6,799,231   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

70

 


Hartford Funds – Alternative Funds

Statements of Operations – (continued)

For the Six-Month Period Ended April 30, 2015 (Unaudited)

 

 

 

     The Hartford
Global
Alpha Fund
    The Hartford
Global Real
Asset Fund
    Hartford
Long/Short
Global

Equity Fund
    Hartford Real
Total Return
Fund
 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions:

        

Net unrealized appreciation (depreciation) of investments

     223,804        15,227,919        2,212,046        2,191,937   

Net unrealized appreciation (depreciation) of purchased options contracts

     (8,023     10,685               (56,249

Net unrealized appreciation (depreciation) of securities sold short

                   (577,714       

Net unrealized appreciation (depreciation) of future contracts

     134,196        4,359,727               (781,008

Net unrealized appreciation (depreciation) of written option contracts

     2,343        14,105               (59,348

Net unrealized appreciation (depreciation) of swap contracts

     (46,844     (4,757            850,328   

Net unrealized appreciation (depreciation) of foreign currency contracts

     (317,848     (403,708     (626     (5,089,943

Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies

     (940     (31,744     5,040        71,196   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions

     (13,312     19,172,227        1,638,746        (2,873,087
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions

     112,260        (15,523,862     1,447,239        3,926,144   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     60,534      $     (14,082,961   $     1,311,403      $     4,438,285   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

71

 


Hartford Funds – Alternative Funds

Statements of Changes in Net Assets

 

 

 

    The Hartford Global
Alpha Fund
 
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
 

Operations:

   

Net investment income (loss)

  $ (51,726   $ (131,785

Net realized gain (loss) on investments, other financial instruments and foreign currency transactions

    125,572        (10,248

Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions

    (13,312     3,459   
 

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

    60,534        (138,574
 

 

 

   

 

 

 

Distributions to Shareholders:

   

From net investment income

   

Class A

             

Class I

             

Class R3

             

Class R4

             

Class R5

             

Class Y

             
 

 

 

   

 

 

 
             
 

 

 

   

 

 

 

From net realized gain on investments

   

Class A

             

Class C

             

Class I

             

Class R3

             

Class R4

             

Class R5

             

Class Y

             
 

 

 

   

 

 

 

Total from net realized gain on investments

             
 

 

 

   

 

 

 

Total distributions

             
 

 

 

   

 

 

 

Capital Share Transactions:

   

Sold

    180,113        4,121,443   

Issued on reinvestment of distributions

             

Redeemed

    (298,004     (10,346,808
 

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

    (117,891     (6,225,365
 

 

 

   

 

 

 

Net Increase (Decrease) in Net Assets

    (57,357     (6,363,939
 

 

 

   

 

 

 

Net Assets:

   

Beginning of period

    25,236,756        31,600,695   
 

 

 

   

 

 

 

End of period

  $     25,179,399      $     25,236,756   
 

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

  $ (80,558   $ (28,832
 

 

 

   

 

 

 

 

(1) Commencement of operations.

 

The accompanying notes are an integral part of these financial statements.

 

 

72

 


Hartford Funds – Alternative Funds

Statements of Changes in Net Assets – (continued)

 

 

 

The Hartford Global Real
Asset Fund
    Hartford Long/Short Global
Equity Fund
    Hartford Real Total
Return Fund
 
For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the
Year Ended
October 31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the period
August 29, 2014 (1)
through
October  31, 2014
    For the
Six-Month
Period Ended
April 30, 2015
(Unaudited)
    For the period
November 29, 2013 (1)
through
October  31, 2014
 
         
$ 1,440,901      $ 4,923,175      $ (135,836   $ (21,303   $ 512,141      $ 646,025   
  (34,696,089     16,961,037        (191,507     (173,795     6,799,231        (580,723
  19,172,227        (36,713,831     1,638,746        (459,221     (2,873,087     (1,484,200

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (14,082,961     (14,829,619     1,311,403        (654,319     4,438,285        (1,418,898

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         
         
  (21,870     (214,743                            
  (111,144     (442,524                            
         (739                            
  (4,310     (19,332                            
  (2,482     (3,415                            
  (1,634,940     (2,904,356                            

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (1,774,746     (3,585,109                            

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         
                              (18,693       
                              (4,729       
                              (4,451       
                              (3,263       
                              (3,263       
                              (3,263       
                              (3,456,926       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                              (3,494,588       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (1,774,746     (3,585,109                   (3,494,588       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         
  49,168,852        81,750,993        870,315        17,246,536        5,119,651        150,358,920   
  1,692,865        3,351,694                      3,494,338          
  (85,362,574     (183,279,065     (66,409            (15,230,675     (39,226,142

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (34,500,857     (98,176,378     803,906        17,246,536        (6,616,686     111,132,778   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  (50,358,564     (116,591,106     2,115,309        16,592,217        (5,672,989     109,713,880   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         
  426,927,526        543,518,632        16,592,217               109,713,880          

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$     376,568,962      $     426,927,526      $     18,707,526      $     16,592,217      $     104,040,891      $     109,713,880   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 640,969      $ 974,814      $ (157,981   $ (22,145   $ (661,296   $ (1,173,438

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

73

 


Hartford Funds – Alternative Funds

Notes to Financial Statements

April 30, 2015 (Unaudited)

 

 

 

1. Organization:

The Hartford Mutual Funds, Inc. (the “Company”) is an open-end management investment company comprised of forty-two series as of April 30, 2015. The financial statements for certain other series of the Company are presented in separate reports. The following series (individually, a “Fund” and collectively, the “Funds”) are included in this report.

The Hartford Mutual Funds, Inc.:

The Hartford Global Alpha Fund (the “Global Alpha Fund”)

The Hartford Global Real Asset Fund (the “Global Real Asset Fund”)

Hartford Long/Short Global Equity Fund (the “Long/Short Global Equity Fund”)

Hartford Real Total Return Fund (the “Real Total Return Fund”)

The Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”). Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, Financial Services – Investment Companies.

Each Fund offers Class A, Class C, Class I and Class Y shares. In addition, each Fund, except Long/Short Global Equity Fund, offers Class R3, Class R4 and Class R5 shares. Class A shares are sold with a front-end sales charge of up to 5.50%. Class C shares are sold with a contingent deferred sales charge of up to 1.00% on shares redeemed within twelve months of purchase. Class I shares are sold without sales charges to certain eligible investors primarily through advisory fee-based wrap programs. Class R3, R4 and R5 shares, if applicable, which are offered to employer-sponsored retirement plans, and Class Y shares, which are sold to certain eligible institutional investors, are sold without a sales charge. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, with the exceptions that each class may have different expenses, which may affect performance.

 

2. Significant Accounting Policies:

The following is a summary of significant accounting policies of each Fund in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

  a) Determination of Net Asset Value – The per share net asset value (“NAV”) of each class of each Funds’ shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day.

 

  b)

Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV, portfolio investments and other assets held by each Fund’s portfolio for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of last reported sales prices or official close price. If no sales are reported, market value is based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, each Fund will use the fair value of the investment as determined in good faith under policies and procedures established by and under the supervision of the Company’s Board of Directors. Market quotes are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or indicative market quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of each Fund’s portfolio investments or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the investments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets may be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Investments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign investments in which a Fund invests 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 NAV of its shares to differ significantly from the NAV that would

 

 

74

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  have been calculated using market prices at the close of the exchange on which a portfolio investment is primarily traded. There can be no assurance that each Fund could obtain the fair market value assigned to an investment if the Fund were to sell the investment at approximately the time at which each Fund determines its NAV.

Fixed income investments (other than short-term obligations), non-exchange traded derivatives and centrally cleared swaps held by each Fund are normally valued on the basis of quotes obtained from independent pricing services or brokers and dealers in accordance with procedures established by the Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values through accepted market modeling, trading and pricing conventions. Inputs to the models may include, but are not limited to, prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models and the investment’s terms and conditions. Generally, the Funds may use fair valuation in regard to fixed income investments when the Funds hold defaulted or distressed investments or investments in a company in which a reorganization is pending. Short-term investments maturing in 60 days or less are generally valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days, which approximates fair value.

Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If the last trade price for exchange traded options does not fall between the bid and ask prices, the value will be the mean of the bid and ask prices as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of over-the-counter (“OTC”) options and such instruments that do not trade on an exchange, values may be supplied by a pricing service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.

Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of certain Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of the Funds.

Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.

Investments in open-end mutual funds are valued at the respective NAV of each open-end mutual fund on the Valuation Date.

Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the Company’s Board of Directors.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

 

    Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants.

 

    Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract.

 

 

75

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

    Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price.

The Board of Directors of the Company generally reviews and approves the “Procedures for Valuation of Portfolio Securities” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. Voting members of the Valuation Committee include the Company’s Treasurer or designee and a Vice President of the investment manager or designee. An Assistant Vice President of the Company with legal expertise or designee is also included on the Valuation Committee as a non-voting advisory member. In addition, the Company’s Chief Compliance Officer shall designate a member of the compliance group to attend Valuation Committee meetings as a non-voting resource, to monitor for and provide guidance with respect to compliance with these procedures. Two members of the Valuation Committee or their designees, representing different departments, shall constitute a quorum for purposes of permitting the Valuation Committee to take action. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of each Fund’s subadviser, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors then must consider for ratification all of the fair value determinations made during the previous quarter.

Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.

For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.

 

  c) Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost.

Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, certain Funds will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts and additional principal received in-kind in lieu of cash, is accrued on a daily basis.

 

  d) Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions.

The Funds do not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements.

Net realized foreign exchange gains or losses arise from sales of foreign currencies and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign

 

 

76

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

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.

 

  e) Joint Trading Account – Each Fund, except Long/Short Global Equity Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements.

 

  f) Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the shareholders. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange See Note 2(a). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund.

Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.

Dividends are declared pursuant to a policy adopted by the Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund, except Long/Short Global Equity Fund, is to pay dividends and/or distributions from net investment income, if any, quarterly and realized gains, if any, at least once a year. The policy of Long/Short Global Equity Fund is to pay dividends from net investment income and realized gains, if any; at least once a year.

Distributions from net investment income, net realized gains and capital are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing. These differences may include, but are not limited to, losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), Regulated Investment Companies (“RICs”), certain derivatives and partnerships. Permanent book and federal income tax basis differences relating to shareholder distributions will result in reclassifications to certain of the Fund’s capital accounts (see Federal Income Taxes: Reclassification of Capital Accounts note).

 

  g) Basis for Consolidation – The Global Real Asset Fund may invest up to 25% of its total assets in a wholly-owned subsidiary of the Global Real Asset Fund. The Subsidiary is organized under the laws of the Cayman Islands and is consolidated in the Global Real Asset Fund’s financial statements. All intercompany balances, revenues, and expenses have been eliminated in consolidation. The Subsidiary acts as an investment vehicle in order to enter into certain investments (primarily commodities) for the Global Real Asset Fund consistent with the investment objectives and policies specified in the Prospectus and Statement of Additional Information.

 

3. Securities and Other Investments:

 

  a) Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk – that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a 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, which approximates fair value. Repurchase agreements have master netting arrangements which allow the Funds to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of April 30, 2015.

 

 

77

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  b) Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of their net assets in illiquid investments. Illiquid investments 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 NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid 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 investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Each Fund may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by the Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of April 30, 2015.

 

  c) Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by certain Funds on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of April 30, 2015.

 

4. Financial Derivative Instruments:

The following disclosures contain information on how and why the Funds use derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.

 

  a) Foreign Currency Contracts – Each Fund may enter into foreign currency contracts that obligate the Funds to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled.

Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of April 30, 2015.

 

  b) Futures Contracts – Each Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Funds. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, the Funds seek to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of April 30, 2015.

 

 

78

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  c) Options Contracts – An option contract is a contract sold by one party to another party that offers the buyer the right, but not the obligation, to buy (call) or sell (put) an investment or other financial asset at an agreed-upon price during a specific period of time or on a specific date. Option contracts are either privately negotiated in the over-the-counter market (“OTC options”) or executed in a registered exchange (“exchange traded options”). A Fund may write (sell) covered call and put options on futures, swaps (“swaptions”), securities, commodities or currencies. “Covered” means that so long as a Fund is obligated as the writer of an option, it will own either the underlying investments or currency or an option to purchase the same underlying investments or currency having an expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will pledge cash or other liquid investments having a value equal to or greater than the fluctuating market value of the option investment or currency. Writing put options increases a Fund’s exposure to the underlying instrument. Writing call options decreases a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset amounts paid on the underlying futures, swap, investment or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. A Fund may also purchase put and call options. Purchasing call options increases a Fund’s exposure to the underlying instrument. Purchasing put options decreases a Fund’s exposure to the underlying instrument. The Funds pay a premium, which is included on the Funds’ Statements of Assets and Liabilities as an investment and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is generally limited to the premium paid. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss. Entering into over-the-counter options also exposes a Fund to counterparty risk. Counterparty risk is the possibility that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements.

See each Fund’s Schedule of Investments, if applicable, for outstanding purchased option contracts as of April 30, 2015. The funds had no outstanding written option contracts as of April 30, 2015. Transactions involving written option contracts during the six-month period April 30, 2015, are summarized below:

The Hartford Global Alpha Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  1,200,000      1,200   

Written

  2,015,000      5,857   

Expired

  (2,400,000   (2,580

Closed

  (210,000   (286

Exercised

         
  

 

 

   

 

 

 

End of Period

  605,000      4,191   
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

         

Written

  1,368,000      9,059   

Expired

  (215,000   (471

Closed

  (159,000   (1,321

Exercised

         
  

 

 

   

 

 

 

End of Period

  994,000      7,267   
  

 

 

   

 

 

 

 

 

79

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Hartford Global Real Asset Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  28      25,857   

Written

  10      15,041   

Expired

         

Closed

  (28   (25,857

Exercised

         
  

 

 

   

 

 

 

End of Period

  10      15,041   
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  4      12,664   

Written

         

Expired

         

Closed

         

Exercised

         
  

 

 

   

 

 

 

End of Period

  4      12,664   
  

 

 

   

 

 

 

 

Hartford Real Total Return Fund

Options Activity During the Six-Month Period Ended April 30, 2015

 

Call Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  3,560,000      82,008   

Written

  5,551      1,487,223   

Expired

  (1,077   (35,855

Closed

  (3,562,225   (1,151,011

Exercised

         
  

 

 

   

 

 

 

End of Period

  2,249      382,365   
  

 

 

   

 

 

 

Put Options Written During the Period

Number of Contracts   Premium Amounts  

Beginning of period

  3,992,594      320,673   

Written

  144,226      1,695,979   

Expired

  (390,916   (141,065

Closed

  (3,725,479   (1,605,338

Exercised

  (44   (4,741
  

 

 

   

 

 

 

End of Period

  20,381      265,508   
  

 

 

   

 

 

 

Swap Contracts – Each Fund may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared in a central clearing house (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Swaps are valued based on custom valuations furnished by an independent pricing service. Swaps for which prices are not available from an independent pricing service are valued in accordance with procedures established by the Company’s Board of Directors.

 

 

80

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statement of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swap. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statement of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statement of Operations.

Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).

A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statement of Assets and Liabilities, as applicable) as well as the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces a Fund’s exposure to counterparty risk. A Fund is still exposed to the counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.

Credit Default Swap Contracts – The credit default swap market allows a Fund to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.

Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statement of Operations. 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. Although specified events are contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of six-month period-end are disclosed in the notes to the Schedule of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a

 

 

81

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. See each Fund’s Schedule of Investments, if applicable, for outstanding credit default swap contracts as of April 30, 2015.

Interest Rate Swap Contracts – Certain Funds are subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because certain Funds holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap contracts. In a typical interest rate swap, one party agrees to make regular payments equal to a floating interest rate, based on a specified interest rate or benchmark (e.g. London Interbank Offered Rate (“LIBOR”)), multiplied by a notional amount, in return for payments equal to a fixed rate multiplied by the same amount, for a specific period of time. The net interest received or paid on interest rate swap contracts is recorded as a realized gain or loss. Interest rate swaps are marked to market daily and the change, if any, is recorded as an unrealized gain or loss in the Statements of Operations. When the interest rate swap contract is terminated early, a Fund records a realized gain or loss equal to the difference between the current market value and the upfront premium or cost.

If an interest rate swap contract provides for payments in different currencies, the parties might agree to exchange the notional amount as well. Interest rate swaps may also depend on other prices or rates, such as the value of an index. The risks of interest rate swaps include changes in market conditions which will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligations under the contract. A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. See each Fund’s Schedule of Investments, if applicable, for outstanding interest rate swap contracts as of April 30, 2015.

Total Return Swap Contracts – Certain Funds may invest in total return swap contracts. An investment in a total return swap allows a Fund to gain or mitigate exposure to underlying referenced securities, indices or commodities. Total return swap contracts involve commitments where cash flows are exchanged based on the price of underlying securities, indices or commodities and based on a fixed or variable rate. One party would receive payments based on the price appreciation or depreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying to or receiving from the counterparty seller an agreed-upon rate, which can be fixed or variable. A variable rate may be correlated to a base rate, such as the LIBOR, and is adjusted each reset period, which are defined at the beginning of the contract. Therefore, if interest rates increase over the term of the swap contract, the party paying the rate may be required to pay a higher rate at each swap reset date.

Total return swap contracts on indices involve commitments to pay interest in exchange for a market-linked return. One party pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding total return swap contracts as of April 30, 2015.

 

  d) Additional Derivative Instrument Information:

Global Alpha Fund

Fair Value of Derivative Instruments on the Consolidated Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $     10,911       $ 50,245       $ 273       $     —       $     —       $     —       $ 61,429   

Unrealized appreciation on foreign currency contracts

                 201,156                                             201,156   

Unrealized appreciation on swap contracts(1)

     62,238                     53,810                                 116,048   

Unrealized appreciation on futures contracts(2)

     17,968                                                 17,968   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 91,117       $ 251,401       $ 54,803       $       $       $       $ 396,601   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 450,617       $       $       $       $       $ 450,617   

Unrealized depreciation on swap contracts(1)

     42,347                 80,952                                 123,299   

Unrealized depreciation on futures contracts(2)

     28,932                                                 28,932   

Written options, market value

     1,914         7,605         35                                 9,554   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 73,193       $ 458,222       $ 80,987       $       $       $       $ 612,402   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

82

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

     Risk Exposure Category  
     Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on purchased options

   $ (3,765   $ 111,451      $ (4,153   $     —       $     —       $     —       $ 103,533   

Net realized gain (loss) on written options

     757        373        2,096                                3,226   

Net realized gain (loss) on futures

         (378,365                                               (378,365

Net realized gain (loss) on swap contracts

     217,860               53,076                                270,936   

Net realized gain (loss) on foreign currency contracts

            311,763                                       311,763   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ (163,513   $ 423,587      $ 51,019      $       $       $       $ 311,093   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of investments in purchased options

   $ 7,193      $ (15,832   $ 616      $       $       $       $ (8,023

Net change in unrealized appreciation (depreciation) of written options

     2,242        (338     439                                2,343   

Net change in unrealized appreciation (depreciation) of futures

     134,196                                              134,196   

Net change in unrealized appreciation (depreciation) of swap contracts

     (32,235                (14,609                             (46,844

Net change in unrealized appreciation (depreciation) of foreign currency

            (317,848                                    (317,848
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 111,396      $     (334,018   $ (13,554   $       $       $       $ (236,176
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Global Real Asset Fund

Fair Value of Derivative Instruments on the Consolidated Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $       $       $     —       $       $ 13,500       $     —       $ 13,500   

Unrealized appreciation on foreign currency contracts

                 234,976                                         234,976   

Unrealized appreciation on swap contracts(1)

         40,606                             28,304                         68,910   

Unrealized appreciation on futures contracts(2)

                                         1,357,078                     1,357,078   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 40,606       $ 234,976       $       $ 28,304       $ 1,370,578       $       $ 1,674,464   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 724,424       $       $       $       $       $ 724,424   

Unrealized depreciation on swap contracts(1)

                             38,695                         38,695   

Unrealized depreciation on futures contracts(2)

                                     1,576,744                 1,576,744   

Written options, market value

                                     16,800                 16,800   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $       $ 724,424       $       $ 38,695       $ 1,593,544       $       $ 2,356,663   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

83

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
     Equity
Contracts
    Commodity
Contracts
    Other
Contracts
     Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

Net realized gain (loss) on purchased options

  $      $      $     —       $      $ (64,303   $     —       $ (64,303

Net realized gain (loss) on written options

                                 14,365                14,365   

Net realized gain (loss) on futures

        19,124                                  (11,190,740                 (11,171,616

Net realized gain (loss) on swap contracts

    564                           (642,273     (44,823             (686,532

Net realized gain (loss) on foreign currency contracts

               601,025                                      601,025   
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

  $ 19,688      $ 601,025      $       $ (642,273   $ (11,285,501   $       $ (11,307,061
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

Net change in unrealized appreciation (depreciation) of investments in purchased options

  $      $      $       $      $ 10,685      $       $ 10,685   

Net change in unrealized appreciation (depreciation) of written options

                                 14,105                14,105   

Net change in unrealized appreciation (depreciation) of futures

    (981                           4,360,708                4,359,727   

Net change in unrealized appreciation (depreciation) of swap contracts

    2,349                       (787     (6,319             (4,757

Net change in unrealized appreciation (depreciation) of foreign currency

           (403,708                                   (403,708
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

  $ 1,368      $ (403,708   $       $ (787   $ 4,379,179      $       $ 3,976,052   
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Long/Short Global Equity Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Assets:

             

Unrealized appreciation on foreign currency contracts

  $     —      $ 78      $     —      $     —      $     —      $     —      $ 78   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $      $ 78      $      $      $      $      $ 78   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

             

Unrealized depreciation on foreign currency contracts

  $      $     173      $      $      $      $      $     173   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $      $ 173      $      $      $      $      $ 173   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

 

Net realized gain (loss) on foreign currency contracts

  $     —      $     1,870      $     —      $     —      $     —      $     —      $     1,870   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $      $ 1,870      $      $      $      $      $ 1,870   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

 

Net change in unrealized appreciation (depreciation) of foreign currency

  $      $ (626   $      $      $      $      $ (626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $      $ (626   $      $      $      $      $ (626
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

84

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Real Total Return Fund

Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of April 30, 2015:

 

     Risk Exposure Category  
     Interest Rate
Contracts
     Foreign
Exchange
Contracts
     Credit
Contracts
     Equity
Contracts
     Commodity
Contracts
     Other
Contracts
     Total  

Assets:

                    

Investments in securities, at value (purchased options), market value

   $       $       $     —       $ 549,638       $     —       $     —       $ 549,638   

Unrealized appreciation on foreign currency contracts

                 1,544,686                                         1,544,686   

Unrealized appreciation on swap contracts(1)

         199,819                         17,294                         217,113   

Unrealized appreciation on futures contracts(2)

     252,907                         343,653                         596,560   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 452,726       $ 1,544,686       $       $ 910,585       $       $       $     2,907,997   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

                    

Unrealized depreciation on foreign currency contracts

   $       $ 4,195,572       $       $       $       $       $ 4,195,572   

Unrealized depreciation on swap contracts(1)

     308,667                                                 308,667   

Unrealized depreciation on futures contracts(2)

     284,313                             1,818,998                         2,103,311   

Written options, market value

                             542,770                         542,770   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 592,980       $ 4,195,572       $       $ 2,361,768       $       $       $ 7,150,320   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The volume of derivatives that is presented in the Schedules of Investments is consistent with the Fund’s derivatives activity during the six-month period ended April 30, 2015.

The Effect of Derivative Instruments on the Statement of Operations for the six-month period ended April 30, 2015

 

    Risk Exposure Category  
    Interest Rate
Contracts
    Foreign
Exchange
Contracts
    Credit
Contracts
    Equity
Contracts
    Commodity
Contracts
    Other
Contracts
    Total  

Realized Gain on Derivatives Recognized as a Result of Operations:

  

 

Net realized gain (loss) on purchased options

  $      $ 32,203      $      $ (238,821   $     —      $     —      $ (206,618

Net realized gain (loss) on written options

           (39,754            695,096                      655,342   

Net realized gain (loss) on futures

    750,804                      (349,035                   401,769   

Net realized gain (loss) on swap contracts

        (1,004,611            (20,758     (1,536,499                   (2,561,868

Net realized gain (loss) on foreign currency contracts

               10,009,346                                        10,009,346   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ (253,807   $ 10,001,795      $     (20,758   $     (1,429,259   $      $      $ 8,297,971   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations:

  

 

Net change in unrealized appreciation (depreciation) of investments in purchased options

  $      $ 23,779      $      $ (80,028   $      $      $ (56,249

Net change in unrealized appreciation (depreciation) of written options

           (74,906            15,558                      (59,348

Net change in unrealized appreciation (depreciation) of futures

    (145,224                   (635,784                   (781,008

Net change in unrealized appreciation (depreciation) of swap contracts

    (108,848            26,752        932,424                      850,328   

Net change in unrealized appreciation (depreciation) of foreign currency

           (5,089,943                                 (5,089,943
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ (254,072   $ (5,141,070   $ 26,752      $ 232,170      $      $      $ (5,136,220
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Statements of Assets and Liabilities location: Unrealized appreciation (depreciation) on OTC swap contracts and Variation margin on financial derivative instruments
  (2)  Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities.

 

  e)

Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and the Funds’ custodian. The master netting arrangements (“MNA”) allow the clearing brokers to net any collateral held in or on behalf of the Funds, or liabilities or payment obligations of the clearing brokers to the Funds, against any liabilities or payment obligations of the Funds to the clearing brokers. The Funds are required to deposit financial collateral (including

 

 

85

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  cash collateral) at the Funds’ custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy.

The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of April 30, 2015:

 

Global Alpha Fund  

Derivative Financial Instruments:

   Assets ($)     Liabilities ($)  

Foreign currency contracts

     201,156        (450,617

Futures contracts

     17,968        (28,932

Purchased options and swaptions

     61,429          

Swap contracts

     404,716        (213,758

Written options and swaptions

            (9,554
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  685,269      (702,861
  

 

 

   

 

 

 

Derivatives not subject to a MNA

  (91,135   98,532   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  594,134      (604,329
  

 

 

   

 

 

 

 

Global Alpha Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Bank of America Securities LLC

  18,585      (18,585               

Barclays

  3,176      (3,176               

BNP Paribas Securities Services

  26,723      (4,931             21,792   

Citibank NA

  13,425      (13,425               

Commonwealth Bank of Australia

  2,654      (2,654               

Credit Suisse First Boston Corp.

  2,557      (1,292             1,265   

Credit Suisse International

  77,770      (15,326             62,444   

Deutsche Bank Securities, Inc.

  69,042      (69,042               

Goldman Sachs & Co.

  83,161      (83,161               

HSBC Bank USA

  3,712      (3,712               

JP Morgan Chase & Co.

  118,747      (43,397             75,350   

Morgan Stanley

  94,648      (51,329             43,319   

National Australia Bank Limited

  1,094      (1,094               

RBC Dominion Securities, Inc.

  1,420      (1,420               

Standard Chartered Bank

  2,100      (874             1,226   

State Street Global Markets LLC

  66,495      (3,518             62,977   

UBS AG

  8,811      (8,811               

Westpac International

  14      (14               
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

  594,134      (325,761           —              —      268,373   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

 

86

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Bank of America Securities LLC

  (38,122   18,585                (19,537

Bank of Montreal

  (6,810                  (6,810

Barclays

  (17,868   3,176                (14,692

BNP Paribas Securities Services

  (4,931   4,931                  

Citibank NA

  (20,657   13,425                (7,232

Commonwealth Bank of Australia

  (2,992   2,654                (338

Credit Suisse First Boston Corp.

  (1,292   1,292                  

Credit Suisse International

  (15,326   15,326                  

Deutsche Bank Securities, Inc.

  (133,583   69,042                (64,541

Goldman Sachs & Co.

  (157,460   83,161      74,299             

HSBC Bank USA

  (30,008   3,712                (26,296

JP Morgan Chase & Co.

  (43,397   43,397                  

Morgan Stanley

  (51,329   51,329                  

National Australia Bank Limited

  (2,040   1,094                (946

RBC Dominion Securities, Inc.

  (23,298   1,420                (21,878

RBS Greenwich Capital

  (11,532                  (11,532

Standard Chartered Bank

  (874   874                  

State Street Global Markets LLC

  (3,518   3,518                  

Toronto-Dominion Bank

  (273                  (273

UBS AG

  (38,994   8,811                (30,183

Westpac International

  (25   14                (11
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ (604,329   325,761      74,299              —      (204,269
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Global Real Asset Fund

 

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  234,976      (724,424

Futures contracts

  1,357,078      (1,576,744

Purchased options and swaptions

  13,500        

Swap contracts

  68,910      (38,695

Written options and swaptions

       (16,800
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  1,674,464      (2,356,663
  

 

 

   

 

 

 

Derivatives not subject to a MNA

  (1,370,578   1,593,544   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  303,886      (763,119
  

 

 

   

 

 

 

 

 

87

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Global Real Asset Fund

 

Counterparty

   Gross Amount of
Assets ($)
    Financial
Instruments
and
Derivatives
Available for
Offset ($)
    Non-cash
Collateral
Received ($)*
     Cash
Collateral
Received ($)*
     Net Amount
of
Assets ($)
 

Bank of America Securities LLC

     40,606                               40,606   

Bank of Montreal

     8,459        (8,459                       

Deutsche Bank Securities, Inc.

     4,837        (4,837                       

Goldman Sachs & Co.

     28,304        (28,304                       

Standard Chartered Bank

     4,855                               4,855   

State Street Global Markets LLC

     180                               180   

UBS AG

     216,645        (181,963                     34,682   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  303,886      (223,563             80,323   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Bank of Montreal

  (55,267   8,459                (46,808

Commonwealth Bank of Australia

  (260                  (260

Credit Suisse First Boston Corp.

  (645                  (645

Deutsche Bank Securities, Inc.

  (367,417   4,837                (362,580

Goldman Sachs & Co.

  (155,197   28,304           17,940      (108,953

Morgan Stanley

  (247                  (247

Toronto-Dominion Bank

  (1,259                  (1,259

UBS AG

  (181,963   181,963                  

Westpac International

  (864                  (864
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

  (763,119   223,563              —      17,940      (521,616
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

 

88

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Long/Short Global Equity Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  78      (173
  

 

 

    

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  78      (173

Derivatives not subject to a MNA

         
  

 

 

    

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  78      (173
  

 

 

    

 

 

 

 

Long/Short Global Equity Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Westpac International

  78                     78   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Counterparty

Gross Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Deutsche Bank Securities, Inc.

  (169                  (169

UBS AG

  (4                  (4
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (173           —              —              —      (173
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

Real Total Return Fund  

Derivative Financial Instruments:

Assets ($)   Liabilities ($)  

Foreign currency contracts

  1,544,686      (4,195,572

Futures contracts

  596,560      (2,103,311

Purchased options and swaptions

  549,638        

Swap contracts

  217,113      (308,667

Written options and swaptions

       (542,770
  

 

 

   

 

 

 

Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities

  2,907,997      (7,150,320
  

 

 

   

 

 

 

Derivatives not subject to a MNA

  (751,938   2,574,307   
  

 

 

   

 

 

 

Total gross amount of assets and liabilities subject to MNA or similar agreements

  2,156,059      (4,576,013
  

 

 

   

 

 

 

 

 

89

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Real Total Return Fund  

Counterparty

Gross Amount of
Assets ($)
  Financial
Instruments
and
Derivatives
Available for
Offset ($)
  Non-cash
Collateral
Received ($)*
  Cash
Collateral
Received ($)*
  Net Amount
of
Assets ($)
 

Bank of America Securities LLC

  72,017      (72,017               

Bank of Montreal

  17,046                     17,046   

Barclays

  36,635      (36,635               

BNP Paribas Securities Services

  30,952      (20,180             10,772   

Citibank NA

  26,703      (26,703               

Commonwealth Bank of Australia

  92,563      (92,563               

Credit Suisse First Boston Corp.

  931      (931               

Credit Suisse International

  9,516                     9,516   

Deutsche Bank Securities, Inc.

  165,447      (165,447               

Goldman Sachs & Co.

  255,656      (255,656               

HSBC Bank USA

  61,858      (61,858               

JP Morgan Chase & Co.

  659,304      (523,094        (136,210     

Morgan Stanley

  201,335      (201,335               

National Australia Bank Limited

  73,714      (73,714               

RBC Dominion Securities, Inc.

  40,176      (40,176               

RBS Greenwich Capital

  84,886      (84,886               

Standard Chartered Bank

  24,417      (24,417               

State Street Global Markets LLC

  67,476      (1,659             65,817   

Toronto-Dominion Bank

  92,767      (39,218             53,549   

UBS AG

  135,493      (135,493               

Westpac International

  7,167                     7,167   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

  2,156,059      (1,855,982           —      (136,210   163,867   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

 

90

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

Counterparty

Gross
Amount of
Liabilities ($)
  Financial
Instruments
and
Derivatives
Available
for
Offset ($)
  Non-cash
Collateral
Pledged ($)*
  Cash
Collateral
Pledged ($)*
  Net Amount
of
Liabilities ($)
 

Bank of America Securities LLC

  (92,669   72,017                (20,652

Bank of New York Mellon

  (9,242                  (9,242

Barclays

  (96,596   36,635                (59,961

BNP Paribas Securities Services

  (20,180   20,180                  

BOM

  (7,591                  (7,591

Citibank NA

  (474,490   26,703                (447,787

Commonwealth Bank of Australia

  (135,514   92,563                (42,951

Credit Suisse First Boston Corp.

  (28,191   931                (27,260

Deutsche Bank Securities, Inc.

  (599,240   165,447           265,000      (168,793

Goldman Sachs & Co.

  (451,257   255,656           195,601        

HSBC Bank USA

  (67,651   61,858                (5,793

JP Morgan Chase & Co.

  (523,094   523,094                  

Morgan Stanley

  (294,553   201,335           93,218        

National Australia Bank Limited

  (460,612   73,714                (386,898

RBC Dominion Securities, Inc.

  (78,444   40,176                (38,268

RBS Greenwich Capital

  (405,910   84,886                (321,024

Standard Chartered Bank

  (110,066   24,417                (85,649

State Street Global Markets LLC

  (1,659   1,659                  

Toronto-Dominion Bank

  (39,218   39,218                  

UBS AG

  (679,836   135,493                (544,343
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

  (4,576,013   1,855,982              —      553,819      (2,166,212
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  * In some instances, the actual collateral received and/or pledged may be more than the amount shown.

 

5. Principal Risks:

Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.

Each Fund’s investments expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension and foreign currency risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by the Funds are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Senior floating rate interests and securities subject to prepayment and extension risk generally offer less potential for gains when interest rates decline. 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 and extension risk are major risks of mortgage backed securities, senior floating rate interests and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.

 

 

91

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

If the Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund. The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.

 

6. Federal Income Taxes:

 

  a) Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2015. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes.

 

  b) Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments and short-term capital gain adjustments. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by each Fund.

 

  c) Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended October 31, 2014, October 31, 2013 are as follows (as adjusted for dividends payable, if applicable):

 

Fund

   Ordinary
Income
For the Year Ended
October 31, 2014
     Long-Term
Capital Gains
For the Year Ended
October 31, 2014
     Ordinary
Income
For the Year Ended
October 31, 2013
     Long - Term
Capital Gains
For the Year Ended
October 31, 2013
 

Global Alpha Fund

   $       $     —       $       $     —   

Global Real Asset Fund

   $     3,585,108       $       $     3,806,005       $   

Long/Short Global Equity Fund

   $       $       $       $   

Real Total Return Fund

   $       $       $       $   

 

 

  92  

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

As of October 31, 2014, the components of distributable earnings (deficit for each fund) on a tax basis are as follows:

 

    Undistributed
Ordinary
Income
    Undistributed
Long-Term
Capital Gain
    Accumulated
Capital and
Other
Losses(1)
    Unrealized
Appreciation
(Depreciation)
on
Investments(2)
    Unrealized
Appreciation
(Depreciation)
on Other
Financial
Instruments
and Foreign
Currency
Transactions
    Other
Temporary
Differences
    Total
Accumulated
Earnings
(Deficit)
 

Global Alpha Fund

  $      $      $ (794,573   $ 18,920      $     —      $     —      $ (775,653

Global Real Asset Fund

  $     1,241,961      $      $     (26,382,547   $     (41,525,075   $      $      $     (66,665,661

Long/Short Global Equity Fund

  $      $      $ (172,873   $ (481,447   $      $      $ (654,320

Real Total Return Fund

  $ 30,147      $     3,494,301      $ (1,629,981   $ (4,288,769   $      $      $ (2,394,302

 

  (1)  The Global Alpha Fund, Long/Short Global Equity Fund, and Real Total Return Fund include Late-Year Ordinary Losses. These amounts are $63,719, $12,640, and $1,629,981, respectively.
  (2)  Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships.

 

  d) Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2014, the Funds recorded reclassifications to increase (decrease) the accounts listed below:

 

     Capital Stock and
Paid-in-Capital
    Undistributed Net
Investment Income
(Loss)
    Accumulated Net
Realized Gain
(Loss)
 

Global Alpha Fund

   $ (680,538   $ 781,020      $ (100,482

Global Real Asset Fund

         (1,897,716)            (2,138,232)            4,035,948   

Long/Short Global Equity Fund

            (842     842   

Real Total Return Fund

     (22,471     (1,819,191     1,841,662   

 

  e) Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation.

At October 31, 2014 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:

 

     Year of Expiration      Unlimited
Short-Term
Capital Loss
Carryforward
     Unlimited Long-
Term Capital
Loss
Carryforward
 

Fund

   2015      2016      2017      2018      2019        

Global Alpha Fund

   $     —       $     —       $     —       $     —       $       $ 32,913       $ 697,941   

Global Real Asset Fund

   $       $       $       $       $     6,682,380       $       $     19,700,167   

Long/Short Global Equity Fund

   $       $       $       $       $       $     160,233       $   

Real Total Return Fund

   $       $       $       $       $       $       $   

 

 

  93  

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

During the year ended October 31, 2014, the Global Alpha Fund utilized $178,323 of short term post RIC modernization capital loss carryforwards. The Global Real Asset Fund utilized $11,708,682 of long term post RIC modernization capital loss carryforwards.

 

  f) Accounting for Uncertainty in Income Taxes – Under provisions set forth by U.S. GAAP, the Adviser reviews each Fund’s tax positions for all open tax years. As of October 31, 2014, the Adviser had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax benefits relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. No Fund is aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

7. Expenses:

 

  a) Investment Management Agreement – Hartford Funds Management Company, LLC (“HFMC”) serves as each Fund’s investment manager pursuant to an Investment Management Agreement with the Company. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). The investment manager has overall investment supervisory responsibility for the Fund. In addition, the investment manager provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement for the provision of day-to-day investment management services to each Fund in accordance with each Fund’s investment objective and policies. Each Fund pays a fee to the investment manager, a portion of which may be used to compensate Wellington Management.

The schedule below reflects the rates of compensation paid to the investment manager for investment management services rendered as of April 30, 2015; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:

 

 

Management Fee Rates

Global Alpha Fund

1.100% on first $500 million and;
1.090% on next $500 million and;
1.080% on next $1.5 billion and;
1.070% on next $2.5 billion and;
1.060% over $5 billion

Global Real Asset Fund

0.950% on first $250 million and;
0.930% on next $250 million and;
0.850% on next $500 million and;
0.780% on next $1.5 billion and;
0.750% on next $2.5 billion and;
0.710% over $5 billion

Long/Short Equity Income Fund

1.400% on first $1 billion and;
1.390% on next $1 billion and;
1.380% over $2 billion

Real Total Return Fund

1.200% on first $250 million and;
1.150% on next $250 million and;
1.100% on next $500 million and;
1.050% on next $1.5 billion and;
1.020% on next $2.5 billion and;
1.010% on next $5 billion and;
1.000% over $10 billion

The Global Alpha Fund’s management fee rate is adjusted based on the Global Alpha Fund’s performance relative to the cumulative investment record of its benchmark index (the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index) over the Performance Measurement Period. The accrual of this adjustment began in December 2013 and the first payment was made in January 2014. Prior to December 2013, only the base fee rate shown in the table applied.

 

 

94

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

The Performance Measurement Period is the previous 36 months; however, until the Global Alpha Fund has been in operation for 36 months, the Performance Measurement Period equals the time that has elapsed since the Global Alpha Fund’s inception. The management fee rate paid to HFMC by the Global Alpha Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the management fee to the Global Alpha Fund’s average daily net assets during the previous month (“Base Fee Rate”), and (2) a performance fee adjustment (“Performance Adjustment”), calculated by applying a variable rate of up to 0.50% of the Global Alpha Fund’s average daily net assets during the applicable Performance Measurement Period. The Performance Adjustment may either increase the management fee owed to HFMC if the Global Alpha Fund outperforms the benchmark index, or may partially offset the management fee owed to HFMC if the Global Alpha Fund underperforms the benchmark index.

The investment performance of the Global Alpha Fund’s Class A Shares (excluding the frond-end sales load) for the Performance Measurement Period is used to calculate the Performance Adjustment. The Performance Adjustment is equivalent to 25% of the amount by which the Global Alpha Fund outperforms or underperforms the cumulative investment record of its benchmark index plus 1.15%. No Performance Adjustment is applied if the Global Alpha Fund’s investment performance is equal to the cumulative investment record of the Global Alpha Fund’s benchmark index plus 1.15% during the applicable Performance Measurement Period. The Performance Adjustment is calculated monthly in arrears, accrued throughout the month, and paid monthly. For the period November 1, 2014 through April 30, 2015, the Base Fee Rate represented an effective rate (excluding the impact of any expense waivers in effect, if applicable) of 1.10% of the Global Alpha Fund’s average daily net assets before a decrease of $69,927 (a ratio of 0.56% of the Global Alpha Fund’s average daily net assets) based on the Performance Adjustment. The Performance Adjustment amount is included as a component of the Investment management fees on the Statement of Operations. For more information on management fees, including the Performance Adjustment, please refer to the Global Alpha Fund’s prospectus.

 

  b) Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and the Company, on behalf of each Fund, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly.

 

 

Accounting Services Fee Rates

Global Alpha Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Global Real Asset Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Long/Short Global Equity Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Real Total Return Fund

0.025% on first $5 billion and;
0.020% on next $5 billion and;
0.015% over $10 billion

Effective February 28, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation will be borne by HFMC, not by the Funds, and HFMC will compensate State Street for its services out of its own resources.

 

 

95

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  c) Operating Expenses – Allocable expenses incurred by the Company are allocated to each Fund and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. As of April 30, 2015, HFMC contractually limited the total operating expenses of each Fund, exclusive of taxes, interest expense, brokerage commissions and extraordinary expenses, through February 29, 2016 as follows:

 

  Expense Limit as a Percentage of Average Daily Net Assets  

Fund

Class A   Class C   Class I   Class R3   Class R4   Class R5   Class Y  

Global Alpha Fund

  1.55   2.30   1.30   1.85   1.55   1.25   1.20

Global Real Asset Fund

  1.35   2.10   1.10   1.60   1.30   1.05   1.00

Long/Short Global Equity Fund

  1.90   2.65   1.65   NA      NA      NA      1.50

Real Total Return Fund

  1.70   2.45   1.45   2.00   1.70   1.40   1.30

 

  d) Fees Paid Indirectly – Certain Funds have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. 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 a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended April 30, 2015, these amounts, if any, are included in the Statements of Operations.

The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:

 

  Class A   Class C   Class I   Class R3   Class R4   Class R5   Class Y  

Global Alpha Fund

  1.27   2.01   1.02   1.70   1.40   1.10   1.00

Global Real Asset Fund

  1.20   1.95   0.95   1.45   1.15   0.90   0.85

Long/Short Global Equity Fund

  3.29 %(1)    4.03 %(1)    3.03 %(1)                   3.14 %(1) 

Real Total Return Fund

  1.67   2.43   1.42   2.00   1.70   1.32   1.30

 

  (1)  Excluding the expenses not subject to cap, the ratio would have been 1.82%, 2.57%, 1.57% and 1.50% for Class A, Class C, Class I and Class Y, respectively.

 

  e) Distribution and Service Plan for Class A, C, R3 and R4 Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. HFD 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 six-month period ended April 30, 2015, HFD received front-end load sales charges and contingent deferred sales charges for each Fund as follows:

 

Fund

Front-end Load
Sales Charges
  Contingent Deferred
Sales Charges
 

Global Alpha Fund

$ 993    $   

Global Real Asset Fund

  23,819      1,774   

Long/Short Global Equity Fund

  3,263        

Real Total Return Fund

  7,020     

 

  * Total CDSC Includes Underwriter adjustment credits which may cause negative dollar amounts.

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 of the 1940 Act to compensate the distributor (HFD) for activities intended to result in the sale and distribution of Class A, C, R3 and R4 shares and for providing services for shareholders. The Rule 12b-1 plan applicable to Class A shares of each Fund provides for payment of a Rule 12b-1 fee of 0.25% of average daily net assets. Some or all of the fee may be used for shareholder servicing expenses with the remainder used for distribution expenses. Under the Class C Plan, each 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 R3 shares have a distribution fee of 0.50% of average daily net assets and Class R4 shares have a distribution fee of 0.25% of average daily net assets. For Class R3 and R4 shares, some or the entire fee may be remitted to broker/dealers for distribution and/or shareholder account services. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the Company’s Board of Directors may determine.

 

 

96

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  f) Other Related Party Transactions – Certain officers of each Fund are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period April 30, 2015, a portion of each Fund’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. HASCO has contractually agreed to reimburse any portion of the transfer agency fees over 0.30% of average daily net assets per fiscal year for each class. Effective December 1, 2014, pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated based on average daily net assets, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO and any related contractual reimbursement amounts, if applicable, can be found in the Statements of Operations. These fees are accrued daily and paid monthly.

Administrative services fees are paid to HASCO for third-party recordkeeping services that are payable as a percentage of net assets in the amount of up to 0.20%, 0.15% and 0.10% for Classes R3, R4 and R5 shares, respectively. The total administrative services fees are shown on the Statements of Operations. These fees are accrued daily and paid monthly.

 

8. Affiliate Holdings:

As of April 30, 2015, affiliates of The Hartford had ownership of shares in the Fund as follows:

Percentage of Class:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class Y  

Global Alpha Fund

  91        96   79   100   100   100   82

Global Real Asset Fund

                                       

Long/Short Global Equity Fund

  90        92   46                  100

Real Total Return Fund

  17        54   58   100   100   100   %(1) 

Percentage of Fund:

 

  Class A   Class B   Class C   Class I   Class R3   Class R4   Class R5   Class Y  

Global Alpha Fund

  17        7   8   7   8   8   34

Global Real Asset Fund

                                       

Long/Short Global Equity Fund

  22        11   11                  39

Real Total Return Fund

  %(1)    %(1)    %(1)    %(1)    %(1)    %(1)    %(1)    %(1) 

 

(1)  Percentage rounds to zero.

 

9. Investment Transactions:

For the six-month period ended April 30, 2015, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:

 

  Cost of Purchases
Excluding U.S.
Government
Obligations
  Sales Proceeds
Excluding U.S.
Governments
 

Global Alpha Fund

$ 12,766,265    $ 6,507,911   

Global Real Asset Fund

$     248,297,148    $     247,213,656   

Long/Short Global Equity Fund

$ 13,197,861    $ 13,051,074   

Real Total Return Fund

$ 79,627,699    $ 89,933,426   
  Cost of Purchases
U.S. Government
Obligations
  Sales Proceeds
U.S. Governments
 

Global Alpha Fund

$     11,674,594    $ 12,660,361   

Global Real Asset Fund

$ 6,476,178    $     25,521,838   

Long/Short Global Equity Fund

$    $   

Real Total Return Fund

$    $ 2,034,421   

 

 

97

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

 

  Total Cost of
Purchases
  Total Sales
Proceeds
 

Global Alpha Fund

$ 24,440,859    $ 19,168,272   

Global Real Asset Fund

$     254,773,326    $     272,735,494   

Long/Short Global Equity Fund

$ 13,197,861    $ 13,051,074   

Real Total Return Fund

$ 79,627,699    $ 91,967,847   

 

10. Capital Share Transactions:

The following information is for the six-month period ended April 30, 2015, and the year ended October 31, 2014:

Global Alpha Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  2,536    $ 24,043      29,220    $ 279,798   

Shares Redeemed

      (12,364       (117,717       (300,847       (2,888,861
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (9,828   (93,674   (271,627   (2,609,063
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  2,309    $ 21,590      6,238    $ 59,294   

Shares Redeemed

  (1,600   (15,086   (7,108   (66,740
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  709      6,504      (870   (7,446
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  509    $ 4,847      55,016    $ 525,492   

Shares Redeemed

  (5,345   (51,083   (11,715   (112,321
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (4,836   (46,236   43,301      413,171   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

     $         $ 180   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

                 180   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      167    $ 1,740   

Shares Redeemed

            (167   (1,600
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

                 140   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  13,553    $ 129,633      338,065    $ 3,254,939   

Shares Redeemed

  (11,893   (114,118   (759,379   (7,277,286
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  1,660      15,515      (421,314   (4,022,347
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (12,295 $ (117,891   (650,510 $ (6,225,365
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

98

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Global Real Asset Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  143,365    $ 1,314,274      387,864    $ 4,079,122   

Shares Issued for Reinvested Dividends

  2,288      20,935      20,083      205,046   

Shares Redeemed

  (1,330,067       (12,175,741   (2,638,338       (27,416,535
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,184,414   (10,840,532   (2,230,391   (23,132,367
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  36,111    $ 330,923      67,448    $ 698,277   

Shares Redeemed

  (426,225   (3,866,524   (1,079,705   (11,066,130
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (390,114   (3,535,601   (1,012,257   (10,367,853
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  323,226    $ 3,000,396      811,872    $ 8,699,143   

Shares Issued for Reinvested Dividends

  9,928      90,745      33,437      341,058   

Shares Redeemed

  (2,254,147   (21,333,749   (2,463,265   (25,670,477
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (1,920,993   (18,242,608   (1,617,956   (16,630,276
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

  1,755    $ 16,326      3,089    $ 32,238   

Shares Issued for Reinvested Dividends

            68      703   

Shares Redeemed

  (10,946   (103,726   (3,615   (36,885
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (9,191   (87,400   (458   (3,944
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R4

Shares Sold

  104,302    $ 964,057      116,789    $ 1,212,329   

Shares Issued for Reinvested Dividends

  440      4,033      1,765      18,052   

Shares Redeemed

  (143,378   (1,310,129   (67,425   (706,818
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (38,636   (342,039   51,129      523,563   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

  11,972    $ 110,818      16,541    $ 172,235   

Shares Issued for Reinvested Dividends

  271      2,482      334      3,415   

Shares Redeemed

  (6,492   (59,408   (8,290   (85,897
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  5,751      53,892      8,585      89,753   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  4,728,841    $ 43,432,058      6,408,009    $ 66,857,649   

Shares Issued for Reinvested Dividends

  172,095      1,574,670      272,617      2,783,420   

Shares Redeemed

  (4,985,180   (46,513,297   (11,260,107   (118,296,323
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (84,244   (1,506,569   (4,579,481   (48,655,254
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (3,621,841 $ (34,500,857   (9,380,829 $ (98,176,378
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

99

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

Long/Short Global Equity Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014 (1)
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  40,308    $ 418,524      402,609    $ 4,026,306   
  

 

 

   

 

 

   

 

 

    

 

 

 

Net Increase (Decrease)

  40,308      418,524      402,609      4,026,306   
  

 

 

   

 

 

   

 

 

    

 

 

 

Class C

Shares Sold

  11,296    $ 112,564      208,642    $ 2,085,386   

Shares Redeemed

  (1,361   (13,384          
  

 

 

   

 

 

   

 

 

    

 

 

 

Net Increase (Decrease)

  9,935      99,180      208,642      2,085,386   
  

 

 

   

 

 

   

 

 

    

 

 

 

Class I

Shares Sold

  33,503    $ 339,227      414,264    $ 4,134,834   

Shares Redeemed

  (5,080   (53,025          
  

 

 

   

 

 

   

 

 

    

 

 

 

Net Increase (Decrease)

  28,423      286,202      414,264      4,134,834   
  

 

 

   

 

 

   

 

 

    

 

 

 

Class Y

Shares Sold

     $      700,001    $ 7,000,010   
  

 

 

   

 

 

   

 

 

    

 

 

 

Net Increase (Decrease)

            700,001      7,000,010   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total Net Increase (Decrease)

  78,666    $       803,906      1,725,516    $       17,246,536   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

  (1)  Commenced operations on August 20, 2014.

Real Total Return Fund

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014 (1)
 
  Shares   Amount   Shares   Amount  

Class A

Shares Sold

  5,523    $ 54,322      65,392    $ 688,946   

Shares Issued for Reinvested Dividends

  1,961      18,693             

Shares Redeemed

  (5,185   (51,802   (6,261   (66,982
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  2,299      21,213      59,131      621,964   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

Shares Sold

  6,364    $ 63,128      12,930    $ 130,507   

Shares Issued for Reinvested Dividends

  500      4,729             

Shares Redeemed

  (62   (631   (747   (7,811
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  6,802      67,226      12,183      122,696   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class I

Shares Sold

  24,088    $ 236,068      15,571    $ 158,424   

Shares Issued for Reinvested Dividends

  439      4,201             

Shares Redeemed

  (20,216   (198,158   (1,932   (20,804
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  4,311      42,111      13,639      137,620   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R3

Shares Sold

     $      10,001    $ 100,010   

Shares Issued for Reinvested Dividends

  344      3,263             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  344      3,263      10,001      100,010   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

100

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

  For the Six-Month Period
Ended April 30, 2015
  For the Year Ended
October 31, 2014 (1)
 
  Shares   Amount   Shares   Amount  

Class R4

Shares Sold

     $      10,001    $ 100,008   

Shares Issued for Reinvested Dividends

  343      3,263             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  343      3,263      10,001      100,008   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class R5

Shares Sold

     $      10,001    $ 100,010   

Shares Issued for Reinvested Dividends

  342      3,263             
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  342      3,263      10,001      100,010   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

Shares Sold

  490,138    $ 4,766,133      14,397,815    $ 149,081,015   

Shares Issued for Reinvested Dividends

  361,603      3,456,926             

Shares Redeemed

  (1,502,727   (14,980,084   (3,692,572   (39,130,545
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase (Decrease)

  (650,986   (6,757,025   10,705,243      109,950,470   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Net Increase (Decrease)

  (636,545 $     (6,616,686   10,820,199    $     111,132,778   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)  Commenced operations on November 29, 2013.

 

11. Line of Credit:

Each Fund, together with certain other Hartford Funds, participates in a $350 million committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment. This commitment fee is allocated to all the funds participating in the line of credit based on the average net assets of the funds. During the six-month period ended April 30, 2015, none of the Funds had borrowings under this facility.

 

12. Pending Legal Proceedings:

On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as HFD) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In March 2015, the plaintiffs filed a new complaint that removed The Hartford Small Company Fund as a plaintiff. Discovery is ongoing. HFMC and HIFSCO dispute the allegations and have filed a motion for summary judgment.

 

 

101

 


Hartford Funds – Alternative Funds

Notes to Financial Statements – (continued)

April 30, 2015 (Unaudited)

 

 

 

No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.

 

13. Indemnifications:

Under the Company’s organizational documents, each Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and the federal securities laws. In addition, the Company, on behalf of each Fund, may enter into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

14. Recent Accounting Pronouncement:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, modifying Accounting Standards Codification Topic 860. The amended guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance also requires new disclosures for certain transfers accounted for as sales and collateral supporting transactions that are accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014, except for the disclosures related to secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of ASU 2014-11 is not expected to have a material impact on the Fund’s results of operations or financial position, but may impact the Fund’s disclosures.

 

 

102

 


Hartford Funds – Alternative Funds

Financial Highlights

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Global Alpha Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

               

A

  $ 9.49      $   (0.02   $    0.04      $    0.02      $   —      $   —      $   —      $   —      $   9.51        0.21 %(4)    $ 4,664        1.27 %(5)      1.27 %(5)      (0.46 )%(5)      132

C

    9.36        (0.06     0.04        (0.02                                 9.34        (0.11 )(4)      1,944        2.01 (5)      2.01 (5)      (1.21 )(5)      132   

I

    9.54        (0.01     0.04        0.03                                    9.57        0.31 (4)      2,422        1.02 (5)      1.02 (5)      (0.21 )(5)      132   

R3

    9.42        (0.04     0.04                                           9.42        (4)      1,883        1.70 (5)      1.70 (5)      (0.89 )(5)      132   

R4

    9.47        (0.03     0.04        0.01                                    9.48        0.11 (4)      1,897        1.40 (5)      1.40 (5)      (0.59 )(5)      132   

R5

    9.52        (0.01     0.04        0.03                                    9.55        0.32 (4)      1,910        1.10 (5)      1.10 (5)      (0.29 )(5)      132   

Y

    9.54        (0.01     0.04        0.03                                    9.57        0.31 (4)      10,459        1.00 (5)      1.00 (5)      (0.19 )(5)      132   

For the Year Ended October 31, 2014

  

               

A

  $ 9.55      $ (0.05   $ (0.01   $ (0.06   $      $      $      $      $ 9.49        (0.63 )%    $ 4,747        1.44     1.44     (0.53 )%      386

C

    9.48        (0.12            (0.12                                 9.36        (1.27     1,941        2.14        2.14        (1.25     386   

I

    9.57        (0.02     (0.01     (0.03                                 9.54        (0.31     2,460        1.13        1.13        (0.25     386   

R3

    9.51        (0.09            (0.09                                 9.42        (0.95     1,883        1.83        1.83        (0.94     386   

R4

    9.54        (0.06     (0.01     (0.07                                 9.47        (0.73     1,894        1.53        1.53        (0.64     386   

R5

    9.56        (0.03     (0.01     (0.04                                 9.52        (0.42     1,905        1.23        1.23        (0.34     386   

Y

    9.57        (0.02     (0.01     (0.03                                 9.54        (0.31       10,407        1.15        1.15        (0.25     386   

For the Period Ended October 31, 2013(6)

  

               

A

  $   10.00      $ (0.08   $ (0.37   $ (0.45   $      $      $      $      $ 9.55        (4.50 )%(4)    $ 7,371        1.88 %(5)      1.47 %(5)      (0.90 )%(5)      384 %(4) 

C

    10.00        (0.14     (0.38     (0.52                                 9.48        (5.20 )(4)      1,975        2.62 (5)      2.21 (5)      (1.65 )(5)      384 (4) 

I

    10.00        (0.06     (0.37     (0.43                                 9.57        (4.30 )(4)      2,055        1.64 (5)      1.23 (5)      (0.69 )(5)      384 (4) 

R3

    10.00        (0.11     (0.38     (0.49                                 9.51        (4.90 )(4)      1,903        2.32 (5)      1.85 (5)      (1.30 )(5)      384 (4) 

R4

    10.00        (0.09     (0.37     (0.46                                 9.54        (4.60 )(4)      1,908        2.02 (5)      1.55 (5)      (1.00 )(5)      384 (4) 

R5

    10.00        (0.06     (0.38     (0.44                                 9.56        (4.40 )(4)      1,913        1.72 (5)      1.25 (5)      (0.70 )(5)      384 (4) 

Y

    10.00        (0.05     (0.38     (0.43                                 9.57        (4.30 )(4)      14,476        1.61 (5)      1.20 (5)      (0.62 )(5)      384 (4) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  103  

 


Hartford Funds – Alternative Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
The Hartford Global Real Asset Fund                     

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

               

A

  $ 9.85      $    0.09      $   (0.42   $ (0.33   $   (0.01   $      $      $ (0.01   $ 9.51        (3.40 )%(4)    $ 31,749        1.64 %(5)      1.20 %(5)      1.91 %(5)      78

C

    9.70        (0.01     (0.36     (0.37                                 9.33        (3.81 )(4)      13,084        2.39 (5)      1.95 (5)      (0.18 )(5)      78   

I

    9.87        0.03        (0.36     (0.33     (0.04                   (0.04     9.50        (3.35 )(4)      27,157        1.32 (5)      0.95 (5)      0.71 (5)      78   

R3

    9.89               (0.35     (0.35                                 9.54        (3.54 )(4)      180        2.02 (5)      1.46 (5)      (0.08 )(5)      78   

R4

    9.88        0.01        (0.35     (0.34     (0.01                   (0.01     9.53        (3.39 )(4)      3,187        1.59 (5)      1.15 (5)      0.26 (5)      78   

R5

    9.89        0.13        (0.46     (0.33     (0.05                   (0.05     9.51        (3.35 )(4)      551        1.31 (5)      0.90 (5)      2.90 (5)      78   

Y

    9.89        0.03        (0.36     (0.33     (0.05                   (0.05     9.51        (3.31 )(4)      300,662        1.19 (5)      0.85 (5)      0.66 (5)      78   

For the Year Ended October 31, 2014

  

               

A

  $ 10.30      $ 0.08      $ (0.49   $ (0.41   $ (0.04   $      $      $ (0.04   $ 9.85        (4.03 )%    $ 44,562        1.58     1.35     0.76     162

C

    10.18               (0.48     (0.48                                 9.70        (4.72     17,382        2.31        2.10        0.01        162   

I

    10.33        0.11        (0.50     (0.39     (0.07                   (0.07     9.87        (3.76     47,168        1.21        1.06        1.03        162   

R3

    10.35        0.05        (0.48     (0.43     (0.03                   (0.03     9.89        (4.20     277        1.93        1.60        0.49        162   

R4

    10.34        0.08        (0.48     (0.40     (0.06                   (0.06     9.88        (3.91     3,686        1.55        1.30        0.79        162   

R5

    10.35        0.11        (0.49     (0.38     (0.08                   (0.08     9.89        (3.72     516        1.26        1.05        1.05        162   

Y

    10.34        0.12        (0.49     (0.37     (0.08                   (0.08     9.89        (3.58     313,337        1.15        1.00        1.11        162   

For the Year Ended October 31, 2013

  

               

A

  $ 10.68      $ (0.04   $ (0.27   $   (0.31   $ (0.07   $      $      $   (0.07   $   10.30        (2.98 )%    $ 69,554        1.52     1.30     (0.35 )%      147

C

    10.58        (0.11     (0.29     (0.40                                 10.18        (3.78     28,546        2.24        2.05        (1.08     147   

I

    10.72               (0.29     (0.29     (0.10                   (0.10     10.33        (2.78     66,061        1.19        1.05        (0.04     147   

R3

    10.69        0.17        (0.51     (0.34                                 10.35        (3.18     295        1.86        1.53        1.66        147   

R4

    10.71        0.17        (0.49     (0.32     (0.05                   (0.05     10.34        (3.00     3,331        1.50        1.27        1.65        147   

R5

    10.73        0.21        (0.50     (0.29     (0.09                   (0.09     10.35        (2.76     451        1.20        1.01        1.98        147   

Y

    10.73        0.12        (0.41     (0.29     (0.10                   (0.10     10.34        (2.74     375,280        1.09        0.98        1.14        147   

For the Year Ended October 31, 2012

  

               

A

  $   11.05      $ 0.03      $ (0.31   $ (0.28   $ (0.09   $      $   —      $ (0.09   $ 10.68        (2.50 )%    $ 114,692        1.52     1.17     0.28     167

C

    10.96        (0.05     (0.30     (0.35     (0.03                   (0.03     10.58        (3.20     52,906        2.23        1.91        (0.46     167   

I

    11.09        0.06        (0.31     (0.25     (0.12                   (0.12     10.72        (2.26     75,179        1.22        0.91        0.53        167   

R3

    11.04               (0.30     (0.30     (0.05                   (0.05     10.69        (2.75     1,964        1.84        1.43        0.01        167   

R4

    11.07        0.03        (0.30     (0.27     (0.09                   (0.09     10.71        (2.44     3,135        1.56        1.15        0.30        167   

R5

    11.10        0.06        (0.31     (0.25     (0.12                   (0.12     10.73        (2.19     2,062        1.23        0.90        0.54        167   

Y

    11.10        0.04        (0.28     (0.24     (0.13                   (0.13     10.73        (2.14     256,693        1.19        0.90        0.38        167   

For the Year Ended October 31, 2011

  

               

A

  $ 11.06      $ 0.09      $ 0.03      $ 0.12      $ (0.06   $   (0.07   $      $ (0.13   $ 11.05        1.08   $ 155,876        1.55     1.04     0.82     145

C

    11.02        0.01        0.05        0.06        (0.05     (0.07            (0.12     10.96        0.46        81,736        2.27        1.76        0.13        145   

I

    11.07        0.14        0.02        0.16        (0.07     (0.07            (0.14     11.09        1.41        135,558        1.25        0.74        1.22        145   

R3

    11.04        0.06        0.04        0.10        (0.03     (0.07            (0.10     11.04        0.90        2,001        1.87        1.30        0.52        145   

R4

    11.06        0.09        0.04        0.13        (0.05     (0.07            (0.12     11.07        1.15        1,846        1.57        1.00        0.81        145   

R5

    11.07        0.13        0.04        0.17        (0.07     (0.07            (0.14     11.10        1.49        1,871        1.26        0.70        1.10        145   

Y

    11.07        0.12        0.05        0.17        (0.07     (0.07            (0.14     11.10        1.52        70,019        1.16        0.65        1.06        145   

For the Year Ended October 31, 2010(7)

  

               

A

  $ 10.00      $ 0.01      $ 1.05      $ 1.06      $      $      $      $      $ 11.06        10.60 %(4)    $ 26,248        1.62 %(5)      0.96 %(5)      0.13 %(5)      20 %(4) 

C

    10.00        (0.03     1.05        1.02                                    11.02        10.20 (4)      8,650        2.38 (5)      1.72 (5)      (0.61 )(5)      20 (4) 

I

    10.00        0.01        1.06        1.07                                    11.07        10.70 (4)      10,821        1.45 (5)      0.79 (5)      0.33 (5)      20 (4) 

R3

    10.00        (0.01     1.05        1.04                                    11.04        10.40 (4)      2,208        2.01 (5)      1.31 (5)      (0.21 )(5)      20 (4) 

R4

    10.00               1.06        1.06                                    11.06        10.60 (4)      2,211        1.71 (5)      1.01 (5)      0.09 (5)      20 (4) 

R5

    10.00        0.02        1.05        1.07                                    11.07        10.70 (4)      2,214        1.41 (5)      0.71 (5)      0.39 (5)      20 (4) 

Y

    10.00        0.03        1.04        1.07                                    11.07        10.70 (4)      11,643        1.32 (5)      0.66 (5)      0.43 (5)      20 (4) 

 

The accompanying notes are an integral part of these financial statements.

 

 

  104  

 


Hartford Funds – Alternative Funds

Financial Highlights – (continued)

 

 

 

    — Selected Per-Share Data(1)     — Ratios and Supplemental Data —  

Class

  Net Asset
Value at,
Beginning
of Period
    Net
Investment
Income
(Loss)
    Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
    Total from
Investment
Operations
    Dividends
from Net
Investment
Income
    Distributions
from
Realized
Capital
Gains
    Distributions
Capital
    Total
Dividends
and
Distributions
    Net
Asset
Value
End of
Period
    Total
Return(2)
    Net
Assets at
End of
Period
(000s)
    Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3)
    Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3)
    Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
    Portfolio
Turnover
 
Hartford Long/Short Global Equity Fund                   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                 

A

  $ 9.62      $ (0.08   $ 0.82      $ 0.74      $      $      $      $      $ 10.36        7.69 %(4)    $ 4,590        3.72 %(5)      3.29 %(5)(8)      (1.68 )%(5)      126

C

    9.61        (0.12     0.82        0.70                                    10.31        7.28 (4)      2,254        4.46 (5)      4.03 (5)(8)      (2.41 )(5)      126   

I

    9.62        (0.07     0.83        0.76                                    10.38        7.80 (4)      4,594        3.46 (5)      3.04 (5)(8)      (1.41 )(5)      126   

Y

    9.62        (0.07     0.83        0.76                                    10.38        7.90 (4)      7,269        3.64 (5)      3.14 (5)(8)      (1.33 )(5)      126   

For the Period Ended October 31, 2014(9)

  

                 

A

  $ 10.00      $ (0.01   $ (0.37   $ (0.38   $      $      $      $      $ 9.62        (3.80 )%(4)    $ 3,871        3.32 %(5)      2.86 %(5)(10)      (0.84 )%(5)      32 %(4) 

C

    10.00        (0.03     (0.36       (0.39                                 9.61        (3.90 )(4)      2,004        4.07 (5)      3.61 (5)(10)      (1.60 )(5)      32 (4) 

I

    10.00        (0.01     (0.37     (0.38                                 9.62        (3.80 )(4)      3,984        3.08 (5)      2.62 (5)(10)      (0.73 )(5)      32 (4) 

Y

    10.00        (0.01     (0.37     (0.38                                 9.62        (3.80 )(4)      6,733        3.08 (5)      2.62 (5)(10)      (0.59 )(5)      32 (4) 
Hartford Real Total Return Fund                   

For the Six-Month Period Ended April 30, 2015 (Unaudited)

  

                 

A

  $ 10.11      $ 0.03      $ 0.36      $ 0.39      $      $   (0.33   $      $   (0.33   $ 10.17        4.04 %(4)    $ 625        1.72 %(5)      1.67 %(5)      0.65 %(5)      90

C

    10.04        0.02        0.33        0.35               (0.33            (0.33     10.06        3.76 (4)      191        2.50 (5)      2.43 (5)      0.46 (5)      90   

I

    10.15        0.02        0.38        0.40               (0.33            (0.33     10.22        4.12 (4)      183        1.42 (5)      1.42 (5)      0.50 (5)      90   

R3

    10.08        0.02        0.35        0.37               (0.33            (0.33     10.12        3.85 (4)      105        2.08 (5)      2.00 (5)      0.45 (5)      90   

R4

    10.10        0.04        0.35        0.39               (0.33            (0.33     10.16        4.04 (4)      105        1.79 (5)      1.70 (5)      0.76 (5)      90   

R5

    10.13        0.06        0.35        0.41               (0.33            (0.33     10.21        4.23 (4)      106        1.49 (5)      1.32 (5)      1.13 (5)      90   

Y

    10.14        0.05        0.36        0.41               (0.33            (0.33     10.22        4.23 (4)        102,726        1.39 (5)      1.30 (5)      0.97 (5)      90   

For the Period Ended October 31, 2014(11)

  

                 

A

  $   10.00      $   0.04      $   0.07      $   0.11      $   —      $   —      $   —      $   —      $   10.11        1.10 %(4)    $ 598        1.70 %(5)      1.65 %(5)      0.42 %(5)      305 %(4) 

C

    10.00          (0.05     0.09        0.04                                    10.04        0.40 (4)      122        2.41 (5)      2.36 (5)      (0.56 )(5)      305 (4) 

I

    10.00        0.17          (0.02     0.15                                    10.15        1.50 (4)      138        1.39 (5)      1.34 (5)      1.68 (5)      305 (4) 

R3

    10.00        (0.01     0.09        0.08                                    10.08        0.80 (4)      101        2.05 (5)      2.00 (5)      (0.11 )(5)      305 (4) 

R4

    10.00        0.02        0.08        0.10                                    10.10        1.00 (4)      101        1.75 (5)      1.70 (5)      0.18 (5)      305 (4) 

R5

    10.00        0.05        0.08        0.13                                    10.13        1.30 (4)      101        1.45 (5)      1.40 (5)      0.48 (5)      305 (4) 

Y

    10.00        0.06        0.08        0.14                                    10.14        1.40 (4)      108,553        1.35 (5)      1.30 (5)      0.57 (5)      305 (4) 

 

(1)  Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted.
(2)  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.
(3) Adjustments include waivers and reimbursements, if applicable.
(4)  Not annualized.
(5)  Annualized.
(6)  Commenced operations on December 14, 2012.
(7)  Commenced operations on May 28, 2010.
(8)  Excluding the expenses not subject to cap, the ratio would have been 1.82%, 2.57%, 1.57% and 1.50% for Class A, Class C, Class I and Class Y, respectively.
(9)  Commenced operations on August 29, 2014.
(10)  Excluding the expenses not subject to cap, the ratio would have been 1.74%, 2.49%, 1.50% and 1.50% for Class A, Class C, Class I and Class Y, respectively.
(11)  Commenced operations on November 29, 2013.

 

The accompanying notes are an integral part of these financial statements.

 

 

  105  

 


Hartford Funds – Alternative Funds

Directors and Officers (Unaudited)

 

 

 

The Board of Directors of the Company (the “Directors”) appoints officers who are responsible for the day-to-day operations of the Fund and who execute policies formulated by the Directors. Each Director serves until his or her death, resignation, or retirement or until the next annual 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 financial interest in The Hartford Financial Services Group, Inc. (“The Hartford”) are considered “interested” persons of the Fund pursuant to the 1940 Act. Each officer and one of the Company’s Directors, as noted in the chart below, are “interested” persons of the Fund. Each Director serves as a director for The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., and Hartford HLS Series Fund II, Inc., and as a trustee for The Hartford Alternative Strategies Fund, which, as of June 2015, collectively, consist of 68 funds. Correspondence may be sent to Directors and officers c/o Hartford Funds, 5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087.

The table below sets forth, for each Director and officer, his or her name, year of birth, current position with the Company and 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 Fund’s 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 Funds, P.O. Box 55022, Boston, MA 02205-5022.

Information on the aggregate remuneration paid to the directors of the Company can be found in the Statement of Operations herein. The Fund pays to The Hartford a portion of the Chief Compliance Officer’s compensation, but does not pay salaries or compensation to any of its other officers or Directors who are employed by The Hartford.

Non-Interested Directors

Hilary E. Ackermann (1956) Director since 2014

Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011 and serves as a Director of Dynegy, Inc., an independent power company, from October 2012 to present.

Lynn S. Birdsong (1946) Director since 2003, Chairman of the Investment Committee since 2014

Mr. Birdsong currently serves a Director of a Director of Aberdeen Global and Aberdeen Global II (Investment Funds) (September 2014 to present) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015). 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. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm.

Robert M. Gavin, Jr. (1940) Director since 2002 (MF) and 1986 (MF2), Chairman of the Board for each 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 (1945) Director since 2001 (MF) and 2002 (MF2), Chairman of the Nominating Committee since 2003

Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies.

Sandra S. Jaffee (1941) Director since 2005

Ms. Jaffee is the founder and Chief Executive Officer of a private company, Homeworks Concierge, LLC, which provides residential property management services in Westchester County, New York (January 2012 to present). Ms. Jaffee served as Chairman (2008 to 2009) and Chief Executive Officer of Fortent (formerly Searchspace Group), a leading provider of compliance/regulatory technology to financial institutions from August 2005 to August 2009. From August 2004 to August 2005, Ms. Jaffee served as an Entrepreneur in Residence with Warburg Pincus, a private equity firm. Prior to joining Warburg Pincus, Ms. Jaffee served as Executive Vice President at Citigroup, from September 1995 to July 2004, where she was President and Chief Executive Officer of Citibank’s Global Securities Services (1995 to 2003). Ms. Jaffee served as a member of the Board of Directors of Broadridge Financial Solutions (November 2010 to November 2014). Ms. Jaffee currently serves as a member of the Board of Directors of Global Corp. Africa (a non-profit organization) (January 2015 to present) as well as a Trustee of Muhlenberg College.

 

 

106

 


Hartford Funds – Alternative Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

William P. Johnston (1944) Director since 2005, Chairman of the Compliance Committee since 2005

In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. 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 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. 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 (1944) Director since 2002 (MF) and 2000 (MF2), Chairman of the Audit Committee since 2002

Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds.

Lemma W. Senbet (1946) Director since 2005

Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service.

Interested Directors and Officers

James E. Davey (1964) Director since 2012, President and Chief Executive Officer since 2010

Mr. Davey serves as Executive Vice President of Hartford Life Insurance Company (“HLIC”) and The Hartford. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002.

Other Officers

Andrew S. Decker (1963) AML Compliance Officer since 2015

Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011.

Michael Flook (1965) Vice President, Treasurer and Controller since 2015

Mr. Flook currently serves as the Treasurer of HFMG. Mr. Flook served as Assistant Treasurer for each Company, The Hartford Alternative Strategies Fund and the Retail Funds from February 2015 to March 2015. Mr. Flook joined The Hartford in 2014. Prior to joining The Hartford, Mr. Flook served as Director, Vice President and Assistant Treasurer at UBS Global Asset Management from May 2006 to November 2014.

 

 

107

 


Hartford Funds – Alternative Funds

Directors and Officers (Unaudited) – (continued)

 

 

 

Edward P. Macdonald (1967) Vice President, Secretary and Chief Legal Officer since 2005

Mr. Macdonald currently serves as Assistant Secretary, Executive Vice President and Deputy General Counsel of HFD, HASCO, HFMC and HFMG. He also serves as Vice President of HLIC. Mr. Macdonald has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Macdonald joined The Hartford in 2005.

Joseph G. Melcher (1973) Vice President and Chief Compliance Officer since 2013

Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010.

Vernon J. Meyer (1964) Vice President since 2006

Mr. Meyer currently serves as Senior Vice President of HLIC. He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004.

Laura S. Quade (1969) Vice President since 2012

Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001.

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)

A description of the policies and procedures that each uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Funds Forms N-Q is available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’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.

 

 

108

 


Hartford Funds – Alternative Funds

Expense Example (Unaudited)

 

 

 

Your Fund’s Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, if any, and contingent deferred sales charges (CDSC), if any, and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 entire period of November 1, 2014 through April 30, 2015.

Actual Expenses

The first set of columns of the table below provides information about actual account values and actual expenses. You may use the information in this row, 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 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 set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a 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 a 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) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns 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 181/365 (to reflect the one-half year period).

The Hartford Global Alpha Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,002.10    $     6.30    $     1,000.00    $     1,018.50    $ 6.36      1.27   181      365   

Class C

$ 1,000.00    $ 998.90    $ 9.96    $ 1,000.00    $ 1,014.83    $     10.04      2.01   181      365   

Class I

$ 1,000.00    $ 1,003.10    $ 5.07    $ 1,000.00    $ 1,019.74    $ 5.11      1.02   181      365   

Class R3

$ 1,000.00    $ 1,000.00    $ 8.43    $ 1,000.00    $ 1,016.36    $ 8.50      1.70   181      365   

Class R4

$ 1,000.00    $ 1,001.10    $ 6.95    $ 1,000.00    $ 1,017.85    $ 7.00      1.40   181      365   

Class R5

$ 1,000.00    $ 1,003.20    $ 5.46    $ 1,000.00    $ 1,019.34    $ 5.51      1.10   181      365   

Class Y

$ 1,000.00    $ 1,003.10    $ 4.97    $ 1,000.00    $ 1,019.84    $ 5.01      1.00   181      365   

 

 

109

 


Hartford Funds – Alternative Funds

Expense Example (Unaudited) – (continued)

 

 

 

The Hartford Global Real Asset Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     966.00    $     5.85    $     1,000.00    $     1,018.84    $     6.01      1.20   181      365   

Class C

$ 1,000.00    $ 961.90    $ 9.49    $ 1,000.00    $ 1,015.13    $ 9.74      1.95   181      365   

Class I

$ 1,000.00    $ 966.50    $ 4.63    $ 1,000.00    $ 1,020.08    $ 4.76      0.95   181      365   

Class R3

$ 1,000.00    $ 964.60    $ 7.11    $ 1,000.00    $ 1,017.56    $ 7.30      1.46   181      365   

Class R4

$ 1,000.00    $ 966.10    $ 5.61    $ 1,000.00    $ 1,019.09    $ 5.76      1.15   181      365   

Class R5

$ 1,000.00    $ 966.50    $ 4.39    $ 1,000.00    $ 1,020.33    $ 4.51      0.90   181      365   

Class Y

$ 1,000.00    $ 966.90    $ 4.15    $ 1,000.00    $ 1,020.58    $ 4.26      0.85   181      365   

Hartford Long/Short Global Equity Fund

 

  Actual Return  

Hypothetical (5% return before expenses)

             
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     ,076.90    $     16.94    $     1,000.00    $     1,008.48    $     16.38      3.29   181      365   

Class C

$ 1,000.00    $ 1,072.80    $ 20.71    $ 1,000.00    $ 1,004.81    $ 20.03      4.03   181      365   

Class I

$ 1,000.00    $ 1,078.00    $ 15.66    $ 1,000.00    $ 1,009.72    $ 15.15      3.04   181      365   

Class Y

$ 1,000.00    $ 1,079.00    $ 16.19    $ 1,000.00    $ 1,009.22    $ 15.64      3.14   181      365   

Hartford Real Total Return Fund

 

  Actual Return   Hypothetical (5% return before expenses)              
   Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Beginning
Account
Value
November 1,
2014
  Ending
Account
Value April
30, 2015
  Expenses paid
during the period
November 1, 2014
through April 30,
2015
  Annualized
expense
ratio
  Days in
the
current
1/2 year
  Days in
the full
year
 

Class A

$     1,000.00    $     1,040.40    $ 8.45    $     1,000.00    $     1,016.51    $ 8.35      1.67   181      365   

Class C

$ 1,000.00    $ 1,037.60    $     12.28    $ 1,000.00    $ 1,012.74    $     12.13      2.43   181      365   

Class I

$ 1,000.00    $ 1,041.20    $ 7.19    $ 1,000.00    $ 1,017.75    $ 7.10      1.42   181      365   

Class R3

$ 1,000.00    $ 1,038.50    $ 10.11    $ 1,000.00    $ 1,014.88    $ 9.99      2.00   181      365   

Class R4

$ 1,000.00    $ 1,040.40    $ 8.60    $ 1,000.00    $ 1,016.36    $ 8.50      1.70   181      365   

Class R5

$ 1,000.00    $ 1,042.30    $ 6.68    $ 1,000.00    $ 1,018.25    $ 6.61      1.32   181      365   

Class Y

$ 1,000.00    $ 1,042.30    $ 6.58    $ 1,000.00    $ 1,018.35    $ 6.51      1.30   181      365   

 

 

110

 


Hartford Funds – Alternative Funds

Main Risks (Unaudited)

 

 

 

The main risks of investing in each Fund are described below. Each Fund’s Prospectus contains further information on the risks applicable to that Fund.

Active Trading Risk: Actively trading investments may result in higher costs and higher taxable income.

Asset Allocation Strategy Risk: (Global Alpha Fund and Real Total Return Fund only) The portfolio managers’ asset allocation strategy may not always work as intended, and asset allocation does not guarantee better performance or reduce the risk of investment loss.

Cayman Subsidiary Risk: (Global Real Asset Fund only) Investing in a Cayman Islands subsidiary exposes the Fund to the risks associated with the subsidiary and its investments.

Commodities Risk: (Global Real Asset Fund only) Investments in commodities may be more volatile than investments in traditional securities.

Derivatives Risk: Investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

Fixed Income Risk: Each Fund is subject to interest rate risk (the risk that the value of an investment decreases when interest rates rise), credit risk (the risk that the issuing company of a security is unable to pay interest and principal when due) and call risk (the risk that an investment may be redeemed early).

Foreign Investment and Emerging Markets Risk: Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets.

Foreign Investment, Emerging Markets and Sovereign Debt Risk: (Global Alpha Fund only) Investments in foreign securities may be riskier than investments in U.S. securities. Potential risks include the risks of illiquidity, increased price volatility, less government regulation, less extensive and less frequent accounting and other reporting requirements, unfavorable changes in currency exchange rates, and economic and political disruptions. These risks are generally greater for investments in emerging markets. Sovereign debt investments are subject to credit risk and the risk of default.

Inflation Protected Securities Risk: (Real Total Return Fund only) The market for inflation protected securities may be less developed or liquid, and more volatile, than other securities markets.

Junk Bond Risk: (Global Alpha Fund and Global Real Asset Fund only) Investments in junk bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Market, Selection and Strategy Risk: Each Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Mortgage-Backed Securities Risk: (Real Total Return Fund only) Mortgage-backed securities are subject to interest rate risk, credit risk, prepayment risk, extension risk, and the risk that an investment’s value may be reduced or become worthless if it receives interest or income payments only after other investments in the same pool.

Natural Resources Risk: (Global Real Asset Fund only) Investments in the natural resources sector include liquidity risk and risk of loss if there are adverse developments in the sector.

Performance Fee Risk: (Global Alpha Fund only) The use of a Treasury bill index to calculate the Fund’s performance fee could result in the Fund paying higher management fees than if the Fund limited its investments to U.S. Treasury bills and other short-term instruments.

Quantitative Analysis Risk: (Global Alpha Fund and Long/Short Global Equity Fund only) Each Fund uses quantitative analysis in its securities selection; securities selected by this method may perform differently from the broader stock market.

Short Sales and Leverage Risk: (Long/Short Global Equity Fund only) When selling a borrowed security, the Fund will lose money if it must repurchase the security at a higher price than it received for the borrowed security. The potential loss is theoretically unlimited. The Fund’s use of leverage may not be successful, may increase the volatility of the Fund’s returns, and could cause the Fund to underperform.

Small-Cap Stock Risk: (Long/Short Global Equity Fund only) Small-cap stocks are generally more volatile and risky and may be less liquid than large-cap stocks because they may have limited operating histories, narrow product lines, and focus on niche markets.

Structured Securities Risk: (Real Total Return Fund only) Structured securities are typically sold in private placement transactions, and there currently is no active trading market for structured securities, which may make them difficult to value and sell.

 

 

111

 


THIS PRIVACY POLICY IS NOT PART OF THIS REPORT

Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates

(herein called “we, our and us”)

This Privacy Policy applies to our United States Operations

We value your trust. We are committed to the responsible:

a) management;

b) use; and

c) protection;

of Personal Information.

This notice describes how we collect, disclose, and protect Personal Information.

We collect Personal Information to:

a) service your Transactions with us; and

b) support our business functions.

We may obtain Personal Information from:

a) You;

b) your Transactions with us; and

c) third parties such as a consumer-reporting agency.

Based on the type of product or service You apply for or get from us, Personal Information such as:

a) your name;

b) your address;

c) your income;

d) your payment; or

e) your credit history;

may be gathered from sources such as applications, Transactions, and consumer reports.

To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:

a) our insurance companies;

b) our employee agents;

c) our brokerage firms; and

d) our administrators.

As allowed by law, we may share Personal Financial Information with our affiliates to:

a) market our products; or

b) market our services;

to You without providing You with an option to prevent these disclosures.

We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:

a) independent agents;

b) brokerage firms;

c) insurance companies;

d) administrators; and

e) service providers;

who help us serve You and service our business.

When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:

a) taking surveys;

b) marketing our products or services; or

c) offering financial products or services under a joint agreement between us and one or more financial institutions.

We, and third parties we partner with, may track some of the pages You visit through the use of:

a) cookies;

b) pixel tagging; or

c) other technologies;

and currently do not process or comply with any web browser’s “do not track” signal or similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.

We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:

a) “opt-out;” or

b) “opt-in;”

as required by law.

We only disclose Personal Health Information with:

a) your proper written authorization; or

b) as otherwise allowed or required by law.

Our employees have access to Personal Information in the course of doing their jobs, such as:

a) underwriting policies;

b) paying claims;

c) developing new products; or

d) advising customers of our products and services.

We use manual and electronic security procedures to maintain:

a) the confidentiality; and

b) the integrity of;

Personal Information that we have. We use these procedures to guard against unauthorized access.

Some techniques we use to protect Personal Information include:

a) secured files;

b) user authentication;

c) encryption;

d) firewall technology; and

e) the use of detection software.

 


 

 

We are responsible for and must:

a) identify information to be protected;

b) provide an adequate level of protection for that data;

c) grant access to protected data only to those people who must use it in the performance of their job-related duties.

Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.

At the start of our business relationship, we will give You a copy of our current Privacy Policy.

We will also give You a copy of our current Privacy Policy once a year if You maintain a continuing business relationship with us.

We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.

As used in this Privacy Notice:

Application means your request for our product or service.

Personal Financial Information means financial information such as:

a) credit history;

b) income;

c) financial benefits; or

d) policy or claim information.

Personal Health Information means health information such as:

a) your medical records; or

b) information about your illness, disability or injury.

Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:

a) Personal Financial Information; and

b) Personal Health Information .

Transaction means your business dealings with us, such as:

a) your Application;

b) your request for us to pay a claim; and

c) your request for us to take an action on your account.

You means an individual who has given us Personal Information in conjunction with:

a) asking about;

b) applying for; or

c) obtaining;

a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.

 

This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:

1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FTC

Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC .; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Planco, LLC; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.

HPP Revised February 2015



 

 

 

LOGO

This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Funds. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (or 800-279-1541 for institutional investors). Investors should read them carefully before they invest.

Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.

 

MFSAR-ALT15     6/15    117961    Printed in U.S.A.

hartfordfunds.com


Item 2. Code of Ethics.

    Not applicable to this semi-annual filing.

Item 3. Audit Committee Financial Expert.

    Not applicable to this semi-annual filing.

Item 4. Principal Accountant Fees and Services.

    Not applicable to this semi-annual filing.

Item 5. Audit Committee of Listed Registrants.

    Not applicable

Item 6. Investments.

 

  (a) The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the semi-annual report filed under Item 1 of this form.
  (b) Not applicable.

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)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment


  Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are generally effective to provide reasonable assurance, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b) There have been changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (“internal controls”) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. The internal controls were revised to reflect that State Street Bank and Trust Company now provides certain administrative and accounting services to the registrant.

Item 12. Exhibits.

 

(a)(1) Not applicable
(a)(2) Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached herewith.
(a)(3) Not applicable
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
 
 
 


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: July 9, 2015 By:

/s/ James E. Davey

James E. Davey, President and
Chief Executive Officer

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: July 9, 2015 By:

/s/ James E. Davey

James E. Davey, President and
Chief Executive Officer
Date: July 9, 2015 By:

/s/ Michael Flook

Michael Flook, Vice President,
Treasurer and Controller