-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T97+o7bHJ4uxgyspB7qG9c6fYlzKNLelyjr0itmSBs100/ofaYxi0fhiy0lzwrKa UVhRJO2AQfg7l05MoS8GLg== 0000950135-03-000007.txt : 20030102 0000950135-03-000007.hdr.sgml : 20030101 20030102152851 ACCESSION NUMBER: 0000950135-03-000007 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021031 FILED AS OF DATE: 20030102 EFFECTIVENESS DATE: 20030102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MUTUAL FUNDS INC/CT CENTRAL INDEX KEY: 0001006415 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07589 FILM NUMBER: 03500838 BUSINESS ADDRESS: STREET 1: ITT HARTFORD GROUP NC P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06115 BUSINESS PHONE: 8008626668 MAIL ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD MUTUAL FUNDS INC DATE OF NAME CHANGE: 19960126 FORMER COMPANY: FORMER CONFORMED NAME: ITT HARTFORD MUTUAL FUNDS INC DATE OF NAME CHANGE: 19960226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MUTUAL FUNDS II INC CENTRAL INDEX KEY: 0000049905 IRS NUMBER: 416009937 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-00558 FILM NUMBER: 03500839 BUSINESS ADDRESS: STREET 1: P O BOX 64284 CITY: SAINT PAUL STATE: MN ZIP: 55164 BUSINESS PHONE: 6127384000 MAIL ADDRESS: STREET 1: POST OFFICE BOX 64284 CITY: ST PAUL STATE: MN ZIP: 55164 FORMER COMPANY: FORMER CONFORMED NAME: AMEV CAPITAL FUND INC DATE OF NAME CHANGE: 19920203 FORMER COMPANY: FORMER CONFORMED NAME: FORTIS SERIES FUND INC/MD DATE OF NAME CHANGE: 20011204 FORMER COMPANY: FORMER CONFORMED NAME: SAINT PAUL CAPITAL FUND INC DATE OF NAME CHANGE: 19850516 FORMER COMPANY: FORMER CONFORMED NAME: FORTIS EQUITY PORTFOLIOS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD FORTIS SERIES FUND INC DATE OF NAME CHANGE: 20020215 N-30D 1 b44880jinv30d.txt THE HARTFORD MUTUAL FUNDS, INC. ANNUAL REPORT [THE HARTFORD LOGO] ANNUAL REPORT OCTOBER 31, 2002 - MANAGER DISCUSSIONS - FINANCIALS [GRAPHIC BACKGROUND OF ELK] THE HARTFORD MUTUAL FUNDS, INC. THE HARTFORD MUTUAL FUNDS II, INC. TABLE OF CONTENTS Manager Discussions 1 The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. Financial Statements Schedule of Investments and Statements of Assets and Liabilities as of October 31, 2002: The Hartford Global Communications Fund 30 The Hartford Global Financial Services Fund 32 The Hartford Global Health Fund 34 The Hartford Global Technology Fund 36 The Hartford International Small Company Fund 37 The Hartford SmallCap Growth Fund 40 The Hartford Small Company Fund 43 The Hartford International Capital Appreciation Fund 46 The Hartford Capital Appreciation Fund 49 The Hartford Growth Opportunities Fund 52 The Hartford MidCap Fund 55 The Hartford MidCap Value Fund 57 The Hartford Value Opportunities Fund 59 The Hartford International Opportunities Fund 61 The Hartford Global Leaders Fund 65 The Hartford Focus Fund 68 The Hartford Growth Fund 70 The Hartford Stock Fund 72 The Hartford Value Fund 74 The Hartford Growth and Income Fund 76 The Hartford Dividend and Growth Fund 78 The Hartford Advisers Fund 80 The Hartford High Yield Fund 86 The Hartford Total Return Bond Fund 94 The Hartford Tax-Free Minnesota Fund 100 The Hartford Tax-Free National Fund 103 The Hartford U.S. Government Securities Fund 108 The Hartford Money Market Fund 110 Statements of Operations for the Year Ended October 31, 2002 114 Statements of Changes in Net Assets for the Year Ended October 31, 2002 120 Notes to Financial Statements 134 Financial Highlights 162 Report of Independent Auditors 192 Federal Tax Information Notice (Unaudited) 193 Board of Directors and Officers (Unaudited) 196 Shareholder Meeting Results 200 Privacy Policy 206 IMPORTANT FUND INFORMATION The following disclosure applies to all of The Hartford Mutual Funds: The graphs on the following pages represent hypothetical investments in The Hartford Mutual Funds. Past performance does not guarantee future results. The value of shares will fluctuate so that when redeemed, shares may be worth more or less than their original cost. The chart and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance information may reflect historical or current expense waivers / reimbursements from an affiliate of the investment adviser, without which performance would have been lower. For information on current expense waivers / reimbursements, please see the prospectus. The Hartford Global Communications Fund (2), (3) The Hartford Global Financial Services Fund (2), (3) The Hartford Global Health Fund (2), (3) The Hartford Global Technology Fund (2), (3) The Hartford International Small Company Fund (2), (3) The Hartford SmallCap Growth Fund (4), (5), (6), (10) The Hartford Small Company Fund (1), (2), (3) The Hartford International Capital Appreciation Fund (2), (3) The Hartford Capital Appreciation Fund (1), (2), (3) The Hartford Growth Opportunities (4), (5), (6), (10) The Hartford MidCap Fund (1), (2), (3) The Hartford MidCap Value Fund (2), (3) The Hartford Value Opportunities Fund (4), (5), (6), (10) The Hartford International Opportunities Fund (1), (2), (3) The Hartford Global Leaders Fund The Hartford Focus Fund (2), (3) The Hartford Growth Fund (4), (5), (6), (10) The Hartford Stock Fund (1), (2), (3) The Hartford Value Fund (2), (3) The Hartford Growth and Income Fund (1), (2), (3) The Hartford Dividend and Growth Fund (1), (2), (3) The Hartford Advisers Fund (1), (2), (3) The Hartford High Yield Fund (2), (3) The Hartford Total Return Bond Fund (1), (2), (3) The Hartford Tax-Free Minnesota Fund (7), (8), (9), (11) The Hartford Tax-Free National Fund (7), (8), (9), (11) The Hartford U.S. Government Securities Fund (7), (8), (9), (11) (1) Class C shares commenced operations on 7/31/98. Performance prior to 7/31/98 reflects Class B performance less Class C sales charges where applicable. (2) The initial investment in Class A and C shares reflects the maximum sales charge and Class B shares reflect a CDSC. (3) Growth of a $10,000 Investment in Class B,C and Y shares will vary from the results seen on the following pages due to differences in the expenses charged to these share classes. (4) New Class A, B and C shares were offered beginning on February 19, 2002. Performance prior to that date is that of the fund's Class L, M and N shares, respectively, which have lower operating expenses. Performance prior to February 19,2002 would have been lower if Class A, B and C share expenses were applied during that period. (5) The initial investment in Class A, C and L shares reflects the maximum sales charges and B, H, M and N shares reflect a CDSC. (6) Growth of a $10,000 Investment in Class B, C, H, L, M, N,Y and Z shares will vary from the results seen on the following pages due to differences in expenses charged to these share classes. (7) New Class A, B and C shares were offered beginning on February 19, 2002. Performance prior to that date is of the fund's Class E, M and N shares, respectively which have lower operating expenses. Performance prior to February 19, 2002 would have been lower if Class A, B and C share expenses were applied during that period. (8) The initial investment in Class A, C, E and L shares reflects the maximum sales charge and B, H, M and N shares reflect a CDSC. (9) Growth of a $10,000 Investment in Class B, C, E, H, L, M,N and Y shares will vary from the results seen on the following pages due to differences in expenses charged to these share classes. (10) New Class Y shares were offered beginning on February 19, 2002.Performance prior to that date is that of the fund's Class L shares. Performance prior to February 19,2002 would have been lower if Class Y share expenses were applied during that period. (11) New Class Y shares were offered beginning on February 19, 2002.Performance prior to that date is that of the fund's Class E shares. Performance prior to February 19,2002 would have been lower if Class Y share expenses were applied during that period. 1 COMPARATIVE BENCHMARKS appear throughout the fund commentary as a measure of fund performance. S & P 500 INDEX is a market capitalization weighted price index composed of 500 widely held common stocks. S & P MIDCAP 400 INDEX is an unmanaged index measuring the performance of the mid-size company segment of the U.S. market. S & P BARRA VALUE INDEX is an unmanaged capitalization weighted index of all the stocks in the S & P 500 that have low price-to-book ratios. MSCI AC (ALL COUNTRY) WORLD FREE TELECOMMUNICATIONS SERVICES INDEX is a free float-adjusted market capitalization index of developed and emerging market countries that is designed to measure international equity market performance. MSCI AC WORLD FREE EX U.S. INDEX is a broad based, unmanaged, market capitalization weighted,total return index that measures the performance of both developed and emerging stock markets, excluding the U.S. MSCI WORLD INDEX is a broad based, unmanaged, market capitalization weighted,total return index that measures the performance of 23 developed country global stock markets, including the United States, Canada, Europe, Australia, New Zealand and the Far East. MSCI FINANCIAL EX-REAL ESTATE INDEXis a cap-weighted index that measures the performance of financial stocks from around the world.This index excludes real estate. MSCI EAFE - the Morgan Stanley Capital International Europe,Australia and Far East Index is a free float-adjusted capitalization index that is designed to measure developed market equity performance; excluding the U.S. and Canada. EAFE GDP - the Morgan Stanley Europe, Australia,Far East GDP Index is an unmanaged index of stocks of companies representing stock markets in Europe, Australia, New Zealand and the Far East. GOLDMAN SACHS HEALTH CARE INDEX is an unmanaged index designed to measure the performance of companies in the health care sector. Issues in the index include providers of health care related services including long-term care and hospitalization facilities, health care management organizations and continuing care services. GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX is an unmanaged index designed to measure performance of companies in the technology sector. Issues in the index include producers of sophisticated devices, services and software related to the fields of computers, electronics, networking and Internet services. SSB BROAD MARKET EURO-PACIFIC <$2B INDEX takes the entire international universe of all stocks,and divides it evenly each year to include only those companies with a market cap between $100m and $2b regardless of country or industry.This represents roughly the bottom 20% of the international equity market. RUSSELL 2000 INDEX measures the performance of the 2,000 smallest companies in the Russell 3000 Index. RUSSELL 2500 INDEX measures the performance of the 2,500 smallest companies in the Russell 3000 Index. RUSSELL 1000 GROWTH INDEX is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 2000 GROWTH INDEX is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 3000 GROWTH INDEX is an unmanaged index that measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecast- ed growth values. RUSSELL 2500 VALUE INDEX measures the performance of those Russell 2500 Index companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL 3000 VALUE INDEX is an unmanaged index measuring the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. LEHMAN BROTHERS GOVERNMENT / CREDIT BOND INDEX is a broad based unmanaged, market value-weighted index of all debt obligations of the U.S. Treasury and U.S. Government agencies (excluding mortgage-backed securities) and of all publicly issued fixed-rate,nonconvertible, investment grade domestic corporate debt. LEHMAN BROTHERS HIGH YIELD CORPORATE INDEX is an unmanaged broad-based market value-weighted index that tracks the total return performance of non-investment grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt registered with the SEC. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT INDEX is an unmanaged index of government bonds with maturities of between one and ten years. LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds with maturities greater than two years. LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX is an unmanaged index and is composed of securities from the Lehman Brothers Government / Credit Bond Index, Mortgage-Backed Securities Index,Asset-Backed Securities Index and Commercial Mortgage-Backed Securities Index. 2 THE HARTFORD GLOBAL COMMUNICATIONS FUND PERFORMANCE OVERVIEW 10/31/00 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GLOBAL MSCI AC WORLD FREE TELECOMMUNICATION COMMUNICATIONS FUND SERVICE INDEX S & P 500 INDEX - -------------------------------------------------------------------------------- 9,450 10,000 10,000 8,883 9,231 9,586 6,492 7,922 8,794 5,585 6,911 8,553 4,319 6,020 7,513 4,101 5,776 8,041 3,317 4,977 7,686 2,731 4,254 6,534 3,061 4,411 6,378
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------------- Global Comm A 10/31/00 -33.06% -44.66% ----------------------------------------------------------------------- Global Comm B 10/31/00 -33.25% -44.66% ----------------------------------------------------------------------- Global Comm C 10/31/00 -31.44% -43.80% ----------------------------------------------------------------------- Global Comm Y 10/31/00 -29.13% -42.90% -----------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM ARCHANA BASI, CFA Vice President, Portfolio Coordinator, Global Industry Analyst Wellington Management Company, LLP DAVID NINCIC, CFA Vice President, Global Industry Analyst Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Communications Fund Class A shares returned -29.1%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed its market benchmark, the MSCI AC (All Country) World Free Telecommunication Services Index, which returned -26.7%, but outperformed the Lipper Telecommunications Mutual Fund Average, which returned -38.6% over the same period. WHY DID THE FUND PERFORM THIS WAY? The Telecommunications sector suffered steep losses during the twelve-month period ended October 31, 2002 as the market continued to punish this sector for the unrealistic projections of customer demand and the lofty valuations that were borne out of the Internet craze. The Fund's underperformance versus its market benchmark can be more than accounted for by the poor performance of Sprint PCS, a wireless holding which failed to meet the market's expectations for new customer additions.As a partial offset to this detractor, the Fund's overweight allocation to U.S. stocks served to contribute positively to performance. Relative to its competitors, the Fund meaningfully exceeded the Lipper peer group average due in large part to the strong performance of Citizens Communications, Nextel Communications and Nextel Partners. WHAT IS YOUR OUTLOOK? While a return to health will be a multi-year process for telecommunication service companies, we believe that the process is underway. Many viable businesses with non-viable balance sheets have de-levered their capital structures and are now fiscally strong. In much of the world,wireless pricing seems to be stable. Nonetheless, we expect some telecom sectors to continue to deteriorate. For instance, U.S. wireline companies should continue to lose minutes to wireless carriers while also facing deteriorating wholesale rates for local wireline access. However, we believe there are compelling investment opportunities in the telecom sector,and we intend for the Fund to participate in many of them. 3 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND PERFORMANCE OVERVIEW 10/31/00 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GLOBAL FINANCIAL MSCI FINANCE EX SERVICES FUND REAL ESTATE INDEX S & P 500 INDEX - -------------------------------------------------------------------------------- 9,450 10,000 10,000 9,857 10,361 9,586 9,715 9,501 8,794 9,885 9,166 8,553 8,854 8,117 7,513 8,949 8,330 8,041 9,430 8,799 7,686 8,079 7,630 6,534 7,588 7,314 6,378
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------------- Global Fin Ser A 10/31/00 -19.05% -12.88% ----------------------------------------------------------------------- Global Fin Ser B 10/31/00 -19.10% -12.80% ----------------------------------------------------------------------- Global Fin Ser C 10/31/00 -16.69% -11.45% ----------------------------------------------------------------------- Global Fin Ser Y 10/31/00 -13.92% -10.00% -----------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM MARK T. LYNCH, CFA Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst Wellington Management Company, LLP THEODORE SHASTA, CFA Senior Vice President, Partner, Global Industry Analyst Wellington Management Company, LLP MARK D. MANDEL, CFA Senior Vice President, Partner, Director of Global Industry Research, Global Industry Analyst Wellington Management Company, LLP ERIC HALET Vice President, Global Industry Analyst Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Financial Services Fund Class A shares returned -14.3%, before sales charge, for the twelve-month period ended October 31, 2002 underperforming the MSCI Finance ex Real Estate Index, which returned -9.9%, and lagging the Lipper Financial Services Average, which returned -1.6%, for the same period. WHY DID THE FUND PERFORM THIS WAY? Financial stocks fell sharply in the period as hopes for a rapid economic recovery were dashed by a barrage of negative earnings reports. European financial institutions performed poorly due to their significant leverage to severe declines in equity markets. Banks continued to be hurt by defaults in the telecom sector. In the U.S., financial institutions played the scapegoat for the overall decline in equity markets. Furthermore, a lack of confidence is causing negative news to be amplified. For instance, though settlements from recent regulatory inquiries into Citigroup's investment banking operations have cost the company a relatively insignificant amount, the publicity has resulted in a large loss in the company's market capitalization. Among insurance firms, rates continue to improve across the board. Terms and conditions, which can limit future losses, are more stringent also. At the end of the period the Fund was overweight in the Insurance industry and underweight in the Banks and Diversified Financials industries relative to the MSCI Finance ex Real Estate Index. The underweight position in the Banks industry relative to the benchmark was the greatest contributor to the Fund's performance during the period. Furthermore, the bank securities that were held by the Fund performed much better than those in the Index. Strong performers in the banking industry included Bank of Bermuda, Allied Irish Banks, Pacific Century Financial, Bank of Hawaii, Wachovia, ABN-Amro, and Banco Popular. WHAT IS YOUR OUTLOOK? We are very optimistic in our outlook for a recovery in the financial sector.The losses caused by poor lending practices in the past have for the most part unwound. The pricing and underwriting terms of new insurance business are less risky and more profitable. Firms will reap the benefits of these business practices over the next few years. In the insurance sector, we favor property/casualty companies over the European life insurers and reinsurers which will bear the brunt of the insured loss from European floods and have more equity exposure. The U.S. banks as a group are through the worst of its credit cycle.Lower loan losses should drive higher EPS growth through 2003 for most banks. European banks are at favorable valuation levels not seen in five years; combined with low interest rates, these present exceptional values. 4 THE HARTFORD GLOBAL HEALTH FUND PERFORMANCE OVERVIEW 5/1/00 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GLOBAL HEALTH FUND GOLDMAN SACHS HEALTH CARE INDEX S & P 500 INDEX - -------------------------------------------------------------------------------- 9,450 10,000 10,000 11,503 9,879 11,007 13,112 9,897 12,194 13,168 9,487 11,631 12,980 8,704 11,004 13,599 8,465 11,263 13,264 7,435 10,905 13,765 7,958 10,969 13,705 7,607 10,360 11,756 6,467 8,991 11,485 6,313 8,969
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------------- Global Health A 5/1/00 -18.16% 5.70% ----------------------------------------------------------------------- Global Health B 5/1/00 -18.26% 6.21% ----------------------------------------------------------------------- Global Health C 5/1/00 -15.94% 6.89% ----------------------------------------------------------------------- Global Health Y 5/1/00 -12.68% 8.84% -----------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM JOSEPH H. SCHWARTZ, CFA Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst Wellington Management Company, LLP JEAN M. HYNES, CFA Senior Vice President, Partner, Global Industry Analyst Wellington Management Company, LLP ANN C. GALLO Vice President,Global Industry Analyst Wellington Management Company, LLP KIRK J. MAYER, CFA Vice President,Global Industry Analyst Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Health Fund Class A shares returned -13.4%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund outperformed both the Goldman Sachs Health Care Index, which returned -17.7%, and the Lipper Health and Biotechnology Average, which returned -25.2% over the period. WHY DID THE FUND PERFORM THIS WAY? Good stock selection among our pharmaceutical and biotechnology holdings was a primary driver of outperformance relative to the Goldman Sachs Health Care Index. The key contributors to the Fund's outperformance during this time period included positions in Amylin Pharmaceuticals, Medicines Co, and our lack of ownership of Bristol Myers Squibb. Over the period, we maintained overweight allocations to the pharmaceutical and biotechnology sub-sector and underweight allocations to the health care services and medical device sub- sectors. This positioning was maintained to exploit valuation opportunities that had developed as a consequence of investment performance disparities among the sub-sectors. Within the medical device sub-sector, we took profits earlier in the period as the market increasingly recognized, and priced into the stocks, the favorable regulatory and reimbursement environment and strong patient census trends. Meanwhile, health care services stocks traded to the high end of their historical valuations and benefited from diversified investors looking for solid earnings visibility. WHAT IS YOUR OUTLOOK? We are embarking on a period of more significant U.S. product approvals in the pharmaceutical industry. The industry has historically been driven by innovation and the upcoming product launches are more significant in size than in 2001 and 2002. The impending launches of products give us confidence in the earnings recovery of the pharmaceutical industry, starting in 2003. We also believe that the other healthcare sub-sectors will generate strong growth, with high visibility,both near and long term. We remain very enthusiastic about the outlook for the health care sector, because it is a natural global growth sector. Technological innovation, powerful aging demographic trends for the populations of the U.S., Europe and Japan, and increasing penetration of less mature foreign markets, combined, create attractive long-term investment opportunities for investors. 5 THE HARTFORD GLOBAL TECHNOLOGY FUND PERFORMANCE OVERVIEW 5/1/00 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GOLDMAN SACHS TECHNOLOGY GLOBAL TECHNOLOGY FUND COMPOSITE INDEX S & P 500 INDEX - -------------------------------------------------------------------------------- 9,450 10,000 10,000 9,180 9,400 9,879 8,102 8,230 9,897 6,868 6,754 9,487 5,479 5,006 8,704 4,954 4,476 8,465 3,762 3,605 7,435 4,541 4,140 7,958 3,763 3,372 7,607 2,862 2,496 6,467 2,796 2,466 6,313
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------------- Global Tech A 5/1/00 -29.72% -39.93% ----------------------------------------------------------------------- Global Tech B 5/1/00 -29.95% -39.79% ----------------------------------------------------------------------- Global Tech C 5/1/00 -28.19% -39.29% ----------------------------------------------------------------------- Global Tech Y 5/1/00 -25.50% -38.31% -----------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGEMENT TEAM SCOTT E. SIMPSON Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President, Partner, Global Industry Analyst Wellington Management Company, LLP ERIC STROMQUIST Senior Vice President, Partner, Global Industry Analyst Wellington Management Company, LLP BRUCE L. GLAZER Vice President, Global Industry Analyst Wellington Management Company, LLP ANITA M. KILLIAN, CFA Vice President, Global Industry Analyst Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Technology Fund Class A shares returned -25.7%, before sales charges, for the twelve-month period ended October 31, 2002. The Fund outperformed both of its bench- marks, the Goldman Sachs Technology Composite Index, which returned -31.7%, and the Lipper Science and Technology Average, which returned -33.8%. WHY DID THE FUND PERFORM THIS WAY? The last twelve months continued to be difficult for technology stocks as disappointing earnings reports dovetailed with continuing concerns regarding consumer spending and investor confidence, created a volatile investment climate.Signs of gradual improvement included third quarter U.S. GDP growth of 3.1%, low inflation, relatively benign job data,and the Fed's decision to hold short-term rates steady. However, other barometers of economic health offer little hope of a near-term surge in activity. In particular,technology stocks have been pressured amid signs the industry's downturn is likely to continue. The IT spending environment is very weak, and competition throughout the industry is intense. The software market is overbought, with lots of "shelfware" remaining. Typically, the third quarter is weak for software companies as summer limits deal-closing opportunities in Europe and the U.S. The impetus for improved IT spending will be improved corporate profits and an improving U.S. economy; nonetheless we do not expect a robust recovery. Given the volatile investment environment, the Fund continued to be positioned defensively in those areas of the market,that offer steady earnings growth potential. In particular,the Fund maintained an overweight position in IT services stocks and reduced its positions within semiconductor stocks. Key outperformers for the period included Travelocity.com (an online travel services company) and Lexmark (a hardware company). Key detractors from performance included Brocade Communications (a provider of infrastructure for storage networks) and Cisco (a leading networking company). WHAT IS YOUR OUTLOOK? We continue to expect a slow economic recovery, albeit with more consistent trends appearing in 2003. While there are some encouraging signs, overall, the technology environment remains mixed. The outlook is most bleak for Europe and Asia, as business confidence remains weak in these regions. The rebound in software spending will be muted, and we are not optimistic about an increase in hardware spending before 2003. The IT services pipeline remains strong, but near-term bookings will probably be sluggish. One exception appears to be the PC sector where there are signs of a pick up in demand. The Fund is well positioned for such a recovery. In the short term,the markets may be volatile with geopolitical uncertainties and very uneven economic data. As a result, we expect continued short-term volatility and a fragile rebound. Long term,we continue to believe that technology will continue to be an important sector and will provide good investment opportunities. 6 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND PERFORMANCE OVERVIEW 4/30/01 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
INTERNATIONAL SMALL CO FUND SSB EURO PACIFIC <$2b INDEX - -------------------------------------------------------------- 9,450 10,000 9,044 9,365 8,335 8,554 8,580 8,585 9,346 9,565 8,920 9,000 7,909 8,117
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ----------------------------------------------------------------------- Int'l Small Co A 4/30/01 -10.29% -14.37% ----------------------------------------------------------------------- Int'l Small Co B 4/30/01 -10.07% -13.69% ----------------------------------------------------------------------- Int'l Small Co C 4/30/01 -7.58% -12.33% ----------------------------------------------------------------------- Int'l Small Co Y 4/30/01 -4.64% -10.69% -----------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER EDWARD L. MAKIN Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Small Company Fund Class A shares returned -5.1%, before sales charges, for the twelve-month period ended October 31, 2002. The Fund performed on par with its benchmark and outperformed its peer group for the period. The Salomon Smith Barney Euro Pacific <$2b Index returned -5.1%, while the Lipper International Small Cap Average returned -9.3% for the same period. WHY DID THE FUND PERFORM THIS WAY? Relative returns for the period benefited from results within the Health Care, Industrials, and Consumer Staples sectors. Detractors from relative Fund returns for the period came from stock selection in the Information Technology and Industrial sectors. Ceyoniq, a German-based software and service provider and Dutch-based information technology and hardware company, Getronics detracted from performance. In Industrials, UK-based Shanks Group and Astead Group also detracted from performance. Overall, we see gradual signs of improvement in the global economy, but remain cautious on the pace of recovery due to the impact of high debt levels and high unemployment on global consumers. As a result of severe price declines in some sectors, we shifted in August / September from a more defensive stance to one that is more aggressive, adding to media, financial services, and industrial stocks. WHAT IS YOUR OUTLOOK? The global economy is continuing to come to terms with an imbalance of supply and demand following massive capital expenditures in many industries in the late 1990's. The result has been severe price deflation in areas where excess supply has been most extreme (predominantly technology, telecommunications hardware, financial services, and infrastructure). Excess supply in Asia (Japan, Korea, and China) is making life very difficult for competitors in the higher cost countries of North America and Europe. Survivors in these industries will be innovators who represent a strong brand to their customers, and outsource production to the lowest cost countries. Service industries are less affected by this excess supply situation at present, with the exception of financial services. On the demand side of the equation there is good and bad. The end consumer still carries a lot of credit card and mortgage debt, and may be less inclined to make non-discretionary purchases in a less certain employment market. On the other hand, homeowners feel pleased by the sharp rise in housing prices resulting from lower interest rates, and by the increased cash flow they can get from refinancing their mortgage at lower rates. Our base case is that house prices trend sideways/down from here and that the consumer in the West stays cautious but stable, benefiting from lower interest rates and cheaper goods and services. Policymakers in the West have been using low interest rates and tax breaks to prop up the consumer, thus helping the demand side, but there is little they can do on the supply side. They must let the markets deal with the excess capacity in many industries worldwide, and hope that the labor force finds other means of employment. The situation is further complicated by altercations between the U.S. and Iraq, terrorist attacks on Western targets, and corporate governance issues in listed companies. As for the stock markets, our base case is that they trend sideways as demand and supply rebalance, but that significant opportunities always exist to make money in certain industries and stocks. Even in a flat market there can be high price volatility at the company or industry level, and we aim to take advantage of this to the benefit of our clients. 7 THE HARTFORD SMALLCAP GROWTH FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (4), (6) [PERFORMANCE LINE GRAPH]
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH FUND - -------------------------------------------------------------- 9,445 10,000 13,038 12,768 11,791 12,652 15,883 15,254 17,783 17,287 16,800 20,943 16,228 17,625 30,861 22,787 47,552 26,467 24,553 18,127 20,411 14,218
AVERAGE ANNUAL RETURNS (as of 10/31/02) (4), (5), (10)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION --------------------------------------------------------------------------------------------------- SmallCap A 1/4/88 -21.45% 2.80% 7.39% 10.33% --------------------------------------------------------------------------------------------------- SmallCap B 11/14/94 -21.48% 3.24% N/A 6.76% --------------------------------------------------------------------------------------------------- SmallCap C 11/14/94 -19.34% 2.98% N/A 6.60% --------------------------------------------------------------------------------------------------- SmallCap H 11/14/94 -20.66% 3.22% N/A 6.75% --------------------------------------------------------------------------------------------------- SmallCap L 1/4/88 -20.87% 2.95% 7.47% 10.38% --------------------------------------------------------------------------------------------------- SmallCap M 11/14/94 -20.66% 3.24% N/A 6.76% --------------------------------------------------------------------------------------------------- SmallCap N 11/14/94 -18.22% 3.39% N/A 6.76% --------------------------------------------------------------------------------------------------- SmallCap Y 2/19/02 N/A N/A N/A -22.77%* ---------------------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGERS DAVID J. ELLIOTT, CFA Vice President Wellington Management Company, LLP JAMES A. RULLO, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford SmallCap Growth Fund Class A shares returned -16.9%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund outperformed both its benchmark (Russell 2000 Growth Index) which returned - -21.6%, and the Lipper Small Cap Growth Average, which returned -20.0%, for the same time period. WHY DID THE FUND PERFORM THIS WAY? Strong stock selection, particularly in Information Technology and Health Care, was the reason for the Fund's outperformance during the period. Within the technology hardware and equipment industry, shares of hard drive manufacturer Western Digital benefited from improving industry fundamentals. Within Health Care, our position in Amylin Pharmaceuticals was a top contributor to outperformance during the period. In addition, PolyMedica, a company that provides specialty medical products and services primarily focused on the diabetes and consumer healthcare markets, was a standout performer. WHAT IS YOUR OUTLOOK? We remain cautiously optimistic on the outlook for the U.S. economy. We are anticipating positive but below-trend GDP growth until 2004. We expect that business capital expenditures will be slow in recovering, muting growth for the technology sector. We are looking for gradual improvements in the labor market, and some improvement for the consumer due to a high level of refinancings, although overall consumption may decelerate during the remainder of the year. Within the Fund, we will continue to focus on our growth style consistency and our systematic investment process which combines fundamental bottom-up stock selection with a quantitative overlay to help us identify the companies with the most upside potential while maintaining our risk disciplines. 8 THE HARTFORD SMALL COMPANY FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
SMALL COMPANY FUND RUSSELL 2000 INDEX RUSSELL 2000 GROWTH INDEX* - -------------------------------------------------------------------------------- 9,450 10,000 10,000 10,612 10,824 10,766 10,773 11,797 11,733 10,117 10,998 10,939 12,442 13,339 13,267 13,259 13,999 13,924 12,545 13,929 13,854 14,534 15,662 15,576 13,536 13,647 13,571 11,997 12,342 12,273 14,827 13,975 13,898 15,649 14,213 14,134 17,229 14,659 14,577 17,922 14,176 14,096 22,845 16,455 16,362 24,062 16,831 16,735 22,432 16,677 16,582 21,722 16,644 16,550 19,540 17,063 16,966 18,038 16,350 16,270 17,098 16,392 16,312 14,911 14,530 14,460 16,935 16,449 16,368 16,884 17,441 17,356 12,660 13,448 13,383 12,337 12,849 12,789
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR INCEPTION --------------------------------------------------------------------------------- Small Co A 7/22/96 -21.81% -2.53% 3.41% --------------------------------------------------------------------------------- Small Co B 7/22/96 -21.99% -2.44% 3.62% --------------------------------------------------------------------------------- Small Co C 7/22/96 -19.69% -2.28% 3.49% --------------------------------------------------------------------------------- Small Co Y 7/22/96 -16.84% -0.95% 4.84% ---------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. * THE FUND HAS CHANGED ITS BENCHMARK FROM THE RUSSELL 2000 INDEX TO THE RUSSELL 2000 GROWTH INDEX BECAUSE THE RUSSELL 2000 GROWTH INDEX IS BETTER SUITED FOR THE INVESTMENT STRATEGY OF THE FUND. PORTFOLIO MANAGER STEVEN C. ANGELI, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Small Company Fund Class A shares returned -17.3%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund outperformed both its market bench- mark, the Russell 2000 Growth Index, which returned -21.6% and the Lipper Small Cap Growth Average, which returned -20.0% for the period. WHY DID THE FUND PERFORM THIS WAY? During the last twelve months, we have been repositioning the Fund by reducing our large overweight in consumer discretionary stocks and increasing positions within more resilient sectors,such as Healthcare and Consumer Staples, where earnings estimates are the most stable in a weak economy. In fact, our top ten positions are concentrated in these more stable sectors, all of which should outgrow the economy over the next three to six months. Strong performers within these sectors included Bunge(soybean processing) and Steris (medical sterilization).Offsetting our conservative posture were a few companies that posted significant earnings shortfalls. Most of the shortfalls came from economy-dependent companies operating in industrial sectors. Examples include Flowserve (chemicals) and Frontier Airlines (regional airline).We usually experience earnings shortfalls each quarter, but the current bear market dictates that very few stocks will be strong enough to offset those with significant declines.In the latter half of the third quarter, we eliminated several stocks that posed even minor earnings risk. Examples include United Stationers (office supplies) and Hologix (medical imaging equipment). Thus far, these moves have paid off,as the Fund has experienced fewer earnings disappointments recently. Two new additions to the Fund included AGCO (farm equipment) and Amerigroup (healthcare services). WHAT IS YOUR OUTLOOK? We believe a strong economic recovery will be predicated upon stable consumer spending, and most importantly, a meaningful rebound in corporate profits. As long as corporate profit expectations are being revised downward, it will be hard for the market to sustain an upward move. Given our near-term outlook for below-consensus profits, a fading consumer, and a possible conflict with Iraq, we remain confident of the appropriateness of our conservative posture. We are positioned toward more stable industries that should deliver steady earnings and solid cash flows over the next three to six months. We will look towards a more aggressive positioning once we see a catalyst for a more robust economic recovery in the second half of 2003. 9 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND PERFORMANCE OVERVIEW 4/30/01 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
INTERNATIONAL CAP APP FUND MSCI EAFE - -------------------------------------------------------- 9,450 10,000 8,297 9,096 7,201 8,175 7,703 8,076 8,081 8,639 7,004 7,582 6,551 7,120
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ Int'l Cap App A 4/30/01 -14.02% -24.44% ------------------------------------------------------------------------ Int'l Cap App B 4/30/01 -14.14% -24.17% ------------------------------------------------------------------------ Int'l Cap App C 4/30/01 -11.52% -22.60% ------------------------------------------------------------------------ Int'l Cap App Y 4/30/01 -8.52% -21.19% ------------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER ANDREW S. OFFIT Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Capital Appreciation Fund Class A shares net return was -9.1%, before sales charge, for the twelve- month period ended October 31, 2002. During this period the Fund outperformed both the MSCI EAFE Index, which returned -12.9%, and the -12.7% average return of its Lipper International peer group. WHY DID THE FUND PERFORM THIS WAY? During the period, we continued to emphasize growth both in sectors and in individual companies. Fund performance benefited from good stock selection in the Consumer Discretionary sector, with names such as Hyundai Motors and P&O Princess Cruises. Stock selection was also strong in the Information Technology sector where our holdings in stocks such as semiconductor company Samsung and technology equipment company Tandberg outpaced weak performance in the sector overall. Our average overweight to the sector detracted from performance during the period. WHAT IS YOUR OUTLOOK? The good news is that valuations are now becoming attractive. Back in 1987, one would never pay more for a growth stock than 1x the growth rate of the company. Drug stocks, which "always" grew at 15%, were selling at 12-14x earnings. We are back to those levels today. As always, the market environment proves to be both interesting and challenging for global investors. As a broad-based international fund, the majority of the names in The Hartford International Capital Appreciation Fund are selected from leading, large cap companies based outside the U.S.. The remainder of the Fund, however, contains a collection of names that we believe have a good chance of being the "next" leaders among the fastest growing companies outside the United States. Over the long term, as long as we continue to identify the winning sectors and companies, the Fund should succeed and outperform. 10 THE HARTFORD CAPITAL APPRECIATION FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
CAPITAL APPRECIATION FUND S & P 500 INDEX - ------------------------------------------------------ 9,450 10,000 11,671 11,198 14,118 12,542 13,485 12,845 19,319 15,368 20,367 14,790 19,713 15,914 22,432 18,118 20,376 18,333 18,243 18,044 22,388 21,086 24,154 22,070 26,808 22,035 27,022 22,674 34,369 23,265 35,674 24,304 36,736 24,010 38,312 24,054 39,802 23,057 38,735 21,153 36,845 20,574 31,706 18,070 33,773 19,341 32,170 18,488 26,594 15,717 26,192 15,342
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
STANDARDIZED INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION ----------------------------------------------------------------------------------- Cap App A 7/22/96 -19.79% 4.53% 17.07% ----------------------------------------------------------------------------------- Cap App B 7/22/96 -19.91% 4.67% 17.32% ----------------------------------------------------------------------------------- Cap App C 7/22/96 -17.46% 4.80% 17.16% ----------------------------------------------------------------------------------- Cap App Y 7/22/96 -14.57% 6.25% 18.71% -----------------------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER SAUL J. PANNELL, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Capital Appreciation Fund Class A shares returned -15.1%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund's return trailed the -11.4% return for the Composite Index (S&P 500 Index 40%: Russell 2500 Index 60%), and that of the Lipper Multi-Cap Core Average, which returned -14.8% for the same time period. WHY DID THE FUND PERFORM THIS WAY? The last twelve months have been disappointing for investors as the market stands poised to deliver its third consecutive calendar year of declines for the first time since the 1939-1941 period. There has been practically no where to hide as large cap, small cap and mid-cap stocks all posted negative returns over this period, with large cap stocks getting hit the hardest. The revelation of fraudulent practices at certain companies has been responsible, in part, for the market's overall heightened risk aversion. Our holdings in Adelphia Communications in the media industry and WorldCom Group in telecommunication services detracted significantly from Fund performance during this twelve-month period. In each case, we eliminated our positions before the final act unfolded in the situations,but were too late to escape the effects entirely. Despite these setbacks, the Fund was able to perform roughly in line with its Lipper peer group average due largely to the strength of our holdings in Nextel Communications (Telecommunication Services), Samsung (Technology) and AGCO (Industrials). WHAT IS YOUR OUTLOOK? We expect that the market will eventually reflect the strong likeli- hood that the recovery in economic activity will not collapse,that interest rates will remain benign and that a war with Iraq would be winnable, but unfortunate. In the near-term, there is a risk that corporate earnings could fail to meet even recently subdued expectations. However, in the intermediate- to long-term we expect that the economy will prove its resilience and that the Fund's opportunistic approach to picking stocks will again reward its investors with satisfactory returns. 11 THE HARTFORD GROWTH OPPORTUNITIES FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (4), (6) [PERFORMANCE LINE GRAPH]
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX - -------------------------------------------------------------- 9,450 10,000 11,671 11,198 14,118 12,542 13,485 12,845 19,319 15,368 20,367 14,790 19,713 15,914 22,432 18,118 20,376 18,333 18,243 18,044 22,388 21,086 24,154 22,070 26,808 22,035 27,022 22,674 34,369 23,265 35,674 24,304 36,736 24,010 38,312 24,054 39,802 23,057 38,735 21,153 36,845 20,574 31,706 18,070 33,773 19,341 32,170 18,488 26,594 15,717 26,192 15,342
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (4), (5), (10)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION ---------------------------------------------------------------------------------------------------------------- Growth Opp A 3/31/63 -23.90% -1.18% 5.83% 12.08% ---------------------------------------------------------------------------------------------------------------- Growth Opp B 11/14/94 -23.92% -0.93% N/A 6.08% ---------------------------------------------------------------------------------------------------------------- Growth Opp C 11/14/94 -21.87% -1.19% N/A 5.93% ---------------------------------------------------------------------------------------------------------------- Growth Opp H 11/14/94 -23.15% -0.92% N/A 6.09% ---------------------------------------------------------------------------------------------------------------- Growth Opp L 3/31/63 -23.20% -1.00% 5.93% 12.10% ---------------------------------------------------------------------------------------------------------------- Growth Opp M 11/14/94 -23.13% -0.93% N/A 6.08% ---------------------------------------------------------------------------------------------------------------- Growth Opp N 11/14/94 -20.80% -0.77% N/A 6.08% ---------------------------------------------------------------------------------------------------------------- Growth Opp Y 2/19/02 N/A N/A N/A -22.47%* ---------------------------------------------------------------------------------------------------------------- Growth Opp Z 3/1/96 -18.67% 0.37% N/A 4.37% ----------------------------------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGER MICHAEL T. CARMEN, CFA Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Opportunities Fund Class A shares returned -19.4%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund's return exceeded the -19.7% return of the Russell 3000 Growth Index and the - -20.0% return of the Lipper Multi-Cap Growth MF Average for the same period. WHY DID THE FUND PERFORM THIS WAY? The equity market was very weak in the twelve month period ending October 31, 2002, with the S&P 500 down cumulative 39% from its peak in early 2000. The last time the market had three consecutive yearly declines was 1939 - 1941. And the only time there were four consecutive years of decline was between 1929-1932. The environment facing investors is fraught with uncertainty about earnings, corporate accounting scandals, the economy, and wide-ranging geopolitical risks that include war with Iraq. The Fund's outperformance versus its market benchmark resulted from a strong sector allocation. The Fund's large overweight position relative to the Russell 3000 Growth Index in the Consumer Discretionary sector proved to be beneficial as it was one of the better performing sectors over the twelve-month period. The Fund's significant underweight positions relative to its market benchmark in economically sensitive sectors such as Telecommunication Services and Health Care also positively contributed to performance. The top three contributors to the Fund's overall performance over this twelve-month period were AnnTaylor Stores, Intuit and Nextel Communications, and three detractors were Sanmina, Adelphia Communications and Cendant. WHAT IS YOUR OUTLOOK? Acknowledging the downside risk, we think the most likely path for the U.S. economy over the next eighteen months could best be described as one of healing. The environment continues to be characterized by stress in equity and bond markets, chronic excess capacity and pockets of deflation. Real GDP growth of 3% in 2003 is a subpar recovery performance by any standard. On an optimistic note,the healing that takes place next year should set the stage for a better economy in 2004. In terms of the stock market we suspect that the pendulum will continue to swing between the belief that the economy is improving versus the possibility of a double-dip recession. These periods of euphoria and pessimism provides us with opportunities to buy attractive stocks when under pressure and pare back positions when psychology becomes more constructive towards the economy. 12 THE HARTFORD MIDCAP FUND PERFORMANCE OVERVIEW 12/31/97 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
MIDCAP FUND S & P MIDCAP 400 INDEX - ---------------------------------------------------- 9,450 10,000 9,138 9,883 10,669 11,389 10,669 10,520 9,867 10,198 11,909 11,533 13,280 12,120 13,955 12,552 14,239 12,349 17,412 13,379 20,082 14,975 21,103 15,240 22,780 16,256 22,107 16,539 20,871 16,026 20,680 16,090 18,464 14,230 20,403 15,996 21,383 17,080 18,041 14,054 17,275 13,550
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ MidCap A 12/31/97 -11.58% 11.96% ------------------------------------------------------------------------ MidCap B 12/31/97 -11.74% 12.20% ------------------------------------------------------------------------ MidCap C 12/31/97 -9.02% 12.28% ------------------------------------------------------------------------ MidCap Y 12/31/97 -5.98% 13.79% ------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER PHILLIP H. PERELMUTER, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford MidCap Fund Class A shares returned -6.5%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund's return trailed the - -4.8% return for the S&P MidCap 400 Index, but exceeded the -9.7% return of Lipper Mid-Cap Core Average over this twelve-month period. WHY DID THE FUND PERFORM THIS WAY? The past year has been another disappointing year of negative returns for all market capitalization segments of the domestic equity market. However, over the last twelve months mid-cap stocks have outperformed both small-cap stocks, as measured by the Russell 2000, and large cap stocks, as measured by the S&P 500. On a relative basis, the Fund underperformed the S&P MidCap 400 Index over the last year as did almost 80% of the funds in its competitive universe. The Fund's underperformance versus this benchmark can be traced largely to the poor performance of some of its Technology and Telecommunications holdings. Within these sectors, telecommunications stock American Tower fell sharply due to scaled-back network expansion within the wireless industry, and technology software company Cadence Design continued to suffer from a prolonged downturn in technology spending. On a more favorable note, the Fund outperformed the majority of its competitors in its Lipper peer group. Three of the most positive contributors during this period were Williams-Sonoma (Consumer Discretionary), Anthem (Health Care), and Ryanair (Industrials). WHAT IS YOUR OUTLOOK? The economic environment continues to be mixed with increasing signs that demand is taking another turn for the worse or is at the very least unlikely to rebound in the short term. Expectations for industrial manufacturing have continued to wane in the face of lackluster demand and low capacity utilization across a number of industries. When combined with new demands on capital from under-funded pension plans and a renewed emphasis on generating free cash flow (often at the expense of capital expenditures),these factors make it hard to believe a major pickup in corporate spending is imminent. In this environment, we continue to try to emphasize long-term, thematic trends such as that of changing demographics. While economic fluctuations can alter the short-term earnings in any company, an understanding of the long-term demographic trends helps to provide a high degree of visibility into the secular demand growth of a company's products. 13 THE HARTFORD MIDCAP VALUE FUND PERFORMANCE OVERVIEW 4/30/01 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
MIDCAP VALUE FUND RUSSELL 2500 VALUE INDEX - ------------------------------------------------------ 9,450 10,000 9,375 10,336 8,015 9,305 9,422 10,689 10,123 11,689 8,431 9,808 7,883 9,184
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ MidCap Value A 4/30/01 -7.02% -14.58% ------------------------------------------------------------------------ MidCap Value B 4/30/01 -7.36% -14.31% ------------------------------------------------------------------------ MidCap Value C 4/30/01 -4.46% -12.54% ------------------------------------------------------------------------ MidCap Value Y 4/30/01 -1.29% -10.98% ------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER JAMES N. MORDY Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford MidCap Value Fund Class A shares returned -1.7%, before sales charge, for the twelve-month period ended October 31, 2002.The Fund's return slightly trailed the -1.3% return for the Russell 2500 Value Index, but outperformed the Lipper Mid Cap Value MF Average of -5.1%. WHY DID THE FUND PERFORM THIS WAY? For the year to date period,mid-caps have declined less than both large-caps and small-caps, and mid-cap value has done significantly better than mid-cap growth. Despite this favorable scenario, the steep declines in global equity markets have prevented the Fund from finishing the year ended October 31, 2002, in positive territory. Strong stock selection in Consumer Staples, Health Care, and Industrials contributed most positively to the Fund's relative performance during the period. However, the damage from our holding in Adelphia Communications, and a combination of poor stock selection and an overweight position in Technology kept the Fund's performance just below its market benchmark. Among the Fund's worst performers, in addition to Adelphia, were Technology stocks Vishay Intertech, Arrow Electronic, and Solectron. During the period,the Fund's top three contributors were Harman International, Toll Brothers, and Bunge. WHAT IS YOUR OUTLOOK? We believe equity values are now at compelling levels and seem particularly attractive relative to fixed income alternatives, where 10-year Treasury yields are at their lowest levels in 44 years. Nevertheless, there are serious obstacles to a significant near-term stock market rebound, namely the prospect of war with Iraq early next year, a pop in inflation (albeit temporary) from higher energy and grain prices, extremely sluggish nominal economic growth, reduced consumer and business confidence, and a weak capital-spending environment. Capacity utilization remains too low to require major plant additions anytime soon. Consumer spending has remained remarkably resilient, stimulated by tax cuts, financing incentives, and a mortgage refinancing boom which cannot continue indefinitely. All of this suggests that the pace of recovery will remain relatively muted by historical standards. While some of our sector weightings may change a bit over the next few months as we assess how a more subdued recovery in 2003 will impact our companies, we will not lose sight of our goal of maintaining a portfolio of undervalued stocks with solid fundamentals and meaningful longer-term upside as conditions improve. 14 THE HARTFORD VALUE OPPORTUNITIES FUND PERFORMANCE OVERVIEW 1/2/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (4), (6) [PERFORMANCE LINE GRAPH]
VALUE OPPORTUNITIES FUND RUSSELL 3000 VALUE INDEX - -------------------------------------------------------------- 9,800 10,000 10,140 10,617 9,800 10,334 10,697 11,451 11,716 12,706 11,842 12,923 13,544 15,299 13,302 15,295 14,225 16,154 15,698 18,369 14,967 17,839 14,053 17,220 15,539 18,708 16,586 20,452 16,325 20,284 15,824 19,850 16,013 19,201 17,536 19,769 17,012 19,399 19,213 21,102 20,764 21,551 20,539 21,266 19,793 21,287 16,879 18,867 18,472 20,379 17,704 20,805 14,329 17,793 13,952 17,085
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (4), (5), (10)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------------------------------- Value Opp A 1/2/96 -21.90% -0.18% 5.00% ------------------------------------------------------------------------------- Value Opp B 1/2/96 -21.83% -0.08% 5.07% ------------------------------------------------------------------------------- Value Opp C 1/2/96 -19.74% 0.20% 5.09% ------------------------------------------------------------------------------- Value Opp H 1/2/96 -21.05% -0.06% 5.09% ------------------------------------------------------------------------------- Value Opp L 1/2/96 -21.28% -0.03% 5.12% ------------------------------------------------------------------------------- Value Opp M 1/2/96 -20.98% -0.05% 5.09% ------------------------------------------------------------------------------- Value Opp N 1/2/96 -18.69% 0.20% 5.09% ------------------------------------------------------------------------------- Value Opp Y 2/19/02 N/A N/A -20.75%* -------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGERS JAMES H. AVERILL Senior Vice President, Partner Wellington Management Company, LLP JAMES N. MORDY Senior Vice President, Partner Wellington Management Company, LLP DAVID R. FASSNACHT, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Value Opportunities Fund Class A shares returned -17.3%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed the Russell 3000 Value Index return of -9.5% and the Lipper Multi Cap Value MF average of -12.6% for the same period. WHY DID THE FUND PERFORM THIS WAY? During the past year, steady equity market declines, lack of trust in corporate managements,and substantial geo-political risks have been weighing on investors and the economy. During the period, the Fund's positive results in Health Care, Financials, and Energy were not enough to counter the steep declines in the Telecommunication Services sector, which suffered predominantly due to the Fund's Worldcom position. Weak stock selection in Industrials and Consumer Discretionary also detracted from benchmark-relative performance. However, the Fund benefited from strong stock selection in the Health Care, Energy, and Financials sectors, with holdings such as RenaissanceRe (insurance), Pharmacia (pharmaceutical manufacturer), and Devon Energy (oil & gas company), which helped to compensate for losses sustained elsewhere by the Fund. WHAT IS YOUR OUTLOOK? Consumer spending has been the driver of growth over the last year and is expected to remain resilient in the upcoming quarters. The recent decline in long-term interest rates has led to a surge in mortgage refinancing, and a large portion of the increased disposable income will likely find its way into home-related and other consumer expenditures. Strong consumer credit growth is providing support as well. Looking out to 2003, we forecast some moderation in consumption spending as the labor market will be slow to recover and wage growth is expected to be moderate. A slower consumption environment should be offset by modestly positive corporate spending, as the headwinds of financial stress diminish over the course of 2003. Corporate yields should decline and another year of low policy rates will contribute to the healing that needs to take place.Relative to the market benchmark, the Fund is currently overweight Consumer Discretionary and Health Care and is underweight Consumer Staples and Telecommunication Services. 15 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
INTERNATIONAL OPPORTUNITIES EAFE GDP MSCI AC WORLD FREE EX US INDEX* - -------------------------------------------------------------------------------- 9,450 10,000 10,000 9,686 9,878 9,866 10,114 10,045 9,942 10,115 10,293 10,188 11,487 11,737 11,645 10,483 10,747 10,346 10,451 11,433 10,644 11,864 12,950 11,830 12,059 13,439 11,682 10,675 12,616 10,852 11,936 13,829 11,816 12,745 14,676 12,715 13,103 15,061 12,972 13,630 15,960 13,593 15,273 17,143 14,644 15,378 17,190 14,735 14,873 16,666 14,378 13,687 15,618 13,312 13,708 15,508 13,346 12,617 14,441 12,197 11,517 13,120 11,152 10,283 11,625 9,994 10,548 11,332 10,132 11,021 12,243 10,829 9,512 10,805 9,454 8,851 9,949 8,906
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR INCEPTION -------------------------------------------------------------------------------- Int'l Opp A 7/22/96 -18.64% -4.42% -1.92% -------------------------------------------------------------------------------- Int'l Opp B 7/22/96 -18.98% -4.40% -1.77% -------------------------------------------------------------------------------- Int'l Opp C 7/22/96 -16.53% -4.27% -1.94% -------------------------------------------------------------------------------- Int'l Opp Y 7/22/96 -13.70% -2.95% -0.64% --------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. * THE FUND HAS CHANGED ITS BENCHMARK FROM THE EAFE GDP TO THE MSCI AC WORLD FREE EX US INDEX BECAUSE THE MSCI AC WORLD FREE EX US INDEX IS BETTER SUITED FOR THE INVESTMENT STRATEGY OF THE FUND. PORTFOLIO MANAGER TROND SKRAMSTAD Senior Vice President, Partner, Director of Global Equity Strategies Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford International Opportunities Fund Class A shares returned -13.9%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed the Lipper International Fund Average (-12.7%) and the MSCI AC World Free ex U.S. Index (-10.9%). WHY DID THE FUND PERFORM THIS WAY? During the period, performance was hurt by stock selection in the UK, Canada, and Japan, which more than offset positive stock selection in Continental Europe. Within Europe, we have been overweight in Continental Europe and underweight in the UK, as it looked like the Continent would fare better in what we foresaw as a modest economic recovery due to its greater leverage to the cycle, while the UK is more defensive, in general, and is facing a potential housing bubble. From a sector prospective,we are overweight in equity market sensitive financials on the Continent, including brokers and insurers, which we added to on weakness over the summer, as we felt that the market was being unduly pessimistic about their equity market risk. This positioning hurt performance over the summer but has helped more recently as these stocks have rebounded sharply. We continue to reduce modestly our weight in Japan. With weak global growth and potentially wrenching internal restructuring unfolding, Japan's economy is unlikely to grow significantly going forward. Within the Fund, stock selection was strongest in Telecommunications Services, helped by holdings such as Koninkiijke KPN (+25%) and Colt Telecom Group (+187%), and Consumer Staples, helped by holdings such as Marks & Spencer (+29%) and Adidas-Solomon (+35%). Stock selection was weakest in Financials, hurt by Fortis Group (-61%) and Credit Suisse (-46%). WHAT IS YOUR OUTLOOK? We expect that the global economic environment over the next 12-18 months will remain challenging, characterized by plodding and uneven growth, anemic capital spending, excess capacity, and pockets of deflation. Global GDP growth is likely to be in the 3% range, well below that of past recoveries, as excess consumer and capital spending are gradually absorbed and consumer and corporate balance sheets are repaired. Most of the risks to this forecast lie on the downside, including further fall-out from the late-1990s bubble, war with Iraq, further terrorist strikes, contagion from default in Brazil, and a banking or government funding crisis in Japan. On the positive side,a final burst of mortgage refinancings and strong housing markets in the U.S., UK, and Australia continue to boost consumer spending and economic growth in the near-term. With this rather cautious global economic outlook, we have reduced the economic and market sensitivity of the Fund,while adding to selected defensive holdings. Geographically, we continue to favor select emerging markets, but are re-evaluating our overweight in Continental Europe. We remain underweight in Japan, the UK, and developed Asia. 16 THE HARTFORD GLOBAL LEADERS FUND PERFORMANCE OVERVIEW 9/30/98 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GLOBAL LEADERS FUND MSCI WORLD INDEX - -------------------------------------------------------- 9,450 10,000 10,697 10,902 12,932 12,375 13,478 13,037 14,072 13,102 14,697 13,619 17,481 14,264 18,472 14,640 18,135 14,333 17,287 13,783 16,870 13,414 15,370 12,290 14,395 11,604 12,781 10,271 13,487 10,619 13,347 10,627 11,674 9,165 11,167 8,781
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ Global Leaders A 9/30/98 -17.45% 2.74% ------------------------------------------------------------------------ Global Leaders B 9/30/98 -17.58% 2.97% ------------------------------------------------------------------------ Global Leaders C 9/30/98 -15.02% 3.21% ------------------------------------------------------------------------ Global Leaders Y 9/30/98 -12.13% 4.70% ------------------------------------------------------------------------
Please see page 1 for important additional information including inception dates and expenses. PORTFOLIO MANAGER ANDREW S. OFFIT Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Global Leaders Fund Class A shares returned -12.6%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund outperformed both the MSCI World Index, which returned -14.5%, and the Lipper Global Average, which returned -13.9%. WHY DID THE FUND PERFORM THIS WAY? During the past twelve months, stock picking has been critical to the strategy and relative strength of the Fund.The Fund's largest sector overweight, Information Technology, exhibited some of the best relative stock selection during the period.Holdings such as Samsung and Dell Computer were additive to performance. Within the Consumer Discretionary sector, retail holdings such as Great Britain's Marks & Spencer and Japan's Fast Retailingwere positive contributors to returns. The Consumer Discretionary sector should benefit from the anticipated global economic recovery, as consumers regain confidence and accelerate their spending on non-essential items. WHAT IS YOUR OUTLOOK? The good news is that valuations are now becoming attractive. Back in 1987, one would never pay more for a growth stock than 1x the growth rate of the company. Drug stocks, which "always" grew at 15%, were selling at 12-14x earnings. We are back to those levels today. While volatility can cause periods of dislocation,this is good news for the Fund overall. By their very nature,global leaders have superior products, market share, and management, making them desirable investments, especially in turbulent times.Over the long term,as long as we continue to identify the winning sectors and companies, the Fund should succeed and outperform. 17 THE HARTFORD FOCUS FUND PERFORMANCE OVERVIEW 5/24/01 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
FOCUS FUND S&P 500 INDEX - ----------------------------------------------- 9,450 10,000 8,996 9,386 8,335 8,242 9,176 8,822 8,439 8,433 7,125 7,169 6,917 6,998
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ Focus A 5/24/01 -21.54% -22.57% ------------------------------------------------------------------------ Focus B 5/24/01 -21.64% -22.25% ------------------------------------------------------------------------ Focus C 5/24/01 -19.45% -20.64% ------------------------------------------------------------------------ Focus Y 5/24/01 -16.54% -19.10% ------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER RAND L. ALEXANDER, CFA Senior Vice President, Partner Wellington Management Company, LLP ASSOCIATE PORTFOLIO MANAGER MAYA K. BITTAR, CFA Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Focus Fund Class A shares returned -17.0%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed both the Lipper Large Cap Core Average (-16.3%) and the S&P 500 Index (-15.1%). WHY DID THE FUND PERFORM THIS WAY? The twelve-month period ending October 31, 2002 proved to be another difficult period for U.S.equity investors with all the major indices posting negative returns.The aftermath of the tragedies of September 11th, weak corporate profits, corporate malfeasance issues, the unwinding of the tech, telecom, and media euphoria of 1999 and 2000, Iraq and the Middle East all weighed heavily on investor confidence. The best performing sectors of the market on a relative basis included consumer staples, industrial and commercial, basic materials, and banks. Weakest groups were healthcare, technology, telecommunications, and utilities. Large caps under performed smaller caps and value outperformed growth. The Fund underperformed the index due to a switch in our emphasis from mid-caps to large-caps early in the first quarter of 2002, our underweights in consumer sectors, and our overweights to pharmaceuticals and diversified financials. The Fund also suffered from significant declines in some of our major positions such as AOL TimeWarner, Citigroup, Schering Plough, and Tyco. WHAT IS YOUR OUTLOOK? Going forward, we continue to believe that the combination of very low interest rates coupled with continued fiscal stimulus will lead to a pick up in economic growth both here in the U.S. and abroad. While the Middle East and Iraq remain problematic, we believe that some positive resolution of the Iraqi situation may occur over the next six to twelve months. With the yield on equities now higher than the yield on money market instruments, and with most large companies now reporting that profits have at least stabilized, we believe that the large cap, high quality companies that make up the Fund should provide very competitive returns over the next twelve months. 18 THE HARTFORD GROWTH FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (4), (6) [PERFORMANCE LINE GRAPH]
GROWTH FUND RUSSELL 1000 GROWTH INDEX - ------------------------------------------------------- 9,445 10,000 10,230 10,730 10,991 11,311 12,781 14,619 14,716 17,840 18,442 23,274 20,734 29,007 26,715 38,942 31,992 42,574 23,864 25,570 19,962 20,554
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (4), (5), (10)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION ------------------------------------------------------------------------------------------------- Growth A 6/8/49 -20.96% 0.46% 7.16% 10.84% ------------------------------------------------------------------------------------------------- Growth B 11/14/94 -21.05% 0.70% N/A 7.14% ------------------------------------------------------------------------------------------------- Growth C 11/14/94 -18.73% 0.45% N/A 7.00% ------------------------------------------------------------------------------------------------- Growth H 11/14/94 -20.27% 0.70% N/A 7.15% ------------------------------------------------------------------------------------------------- Growth L 6/8/49 -20.26% 0.63% 7.25% 10.87% ------------------------------------------------------------------------------------------------- Growth M 11/14/94 -20.22% 0.70% N/A 7.14% ------------------------------------------------------------------------------------------------- Growth N 11/14/94 -17.73% 0.85% N/A 7.14% ------------------------------------------------------------------------------------------------- Growth Y 2/19/02 N/A N/A N/A -18.05%* -------------------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGER ANDREW J. SHILLING, CFA Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth Fund Class A shares returned -16.4%, before sales charge, for the 12-month period ended October 31, 2002. The Fund's return exceeded the - -19.6% return of the Russell 1000 Growth Index and the -19.1% return of the Lipper Large Cap Growth MF Average over the same time period. WHY DID THE FUND PERFORM THIS WAY? During the 12-month period ending October 31, 2002 business investment continued to be very weak with no recovery expected until well into 2003. Technology spending has been extremely poor as corporate buyers struggle with their own profitability challenges, while realizing that they had overbought technology hardware and software during the bubble. While the industrial economy has been weak for two full years, the U.S. consumer has remained resilient, and has been spending freely,particularly on housing and autos. However, any shock to consumer psychology, such as a protracted war in the Middle East or further job losses, could cause an increase in the savings rate, resulting in lower consumer spending going forward. The poor outlook for near-term business spending combined with the potential for weakness in consumer spending puts the economy in a precarious position. In the Fund,stock selection was a positive contributor to performance versus the market benchmark. Stock selection was particularly strong in Information Technology, Health Care and Consumer Discretionary offset somewhat by poor choices in Financials.Sector allocation was strong in Financials and Consumer Discretionary, but was weak in Consumer Staples, which has held up well in an extremely vulnerable market. The top performers over this period were Dell, Forest Labs and Pharmacia. The three most significant detractors were Tyco,Intel and AOL Time Warner. WHAT IS YOUR OUTLOOK? We think the most likely path for the U.S. economy over the next eighteen months could best be described as one of healing. Our base case is that the slow,sluggish economic recovery that began in late 2001 continues for several more quarters. However,the possibility of a slip back into recession cannot be discounted.A further deterioration in the employment picture would make us considerably more concerned about this scenario. For now, the job picture appears stable with flat job creation for the year, compared with a loss of 1.4 million jobs in 2001. The Federal Reserve does have room to lower rates if further weakness were to emerge, but for now appears content remaining on the sidelines. We are on track for the third consecutive year of declining stock prices, with the S&P 500 down almost 40% from its high in early 2000 as of October 31, 2002. The last period of three consecutive declines was 1939-1941. Surely,the unwinding of the Technology/Telecom bubble of the late 1990s and the related valuation correction justified much of this downward move. However, fear abounds now, and we are seeing excellent opportunities to purchase high-quality growth companies at attractive valuations. 19 THE HARTFORD STOCK FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
STOCK FUND S&P 500 INDEX - ------------------------------------------------- 9,450 10,000 10,443 11,198 11,568 12,542 11,900 12,845 14,196 15,368 13,675 14,790 14,510 15,914 16,874 18,118 17,671 18,333 16,939 18,044 19,509 21,086 20,975 22,070 21,089 22,035 21,271 22,674 22,013 23,265 23,489 24,304 22,976 24,010 23,076 24,054 22,500 23,057 20,754 21,153 19,760 20,574 17,475 18,070 18,459 19,341 17,226 18,488 14,796 15,717 14,207 15,342
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR INCEPTION ------------------------------------------------------------------------- Stock A 7/22/96 -23.17% -0.37% 5.75% ------------------------------------------------------------------------- Stock B 7/22/96 -23.37% -0.32% 5.95% ------------------------------------------------------------------------- Stock C 7/22/96 -20.91% -0.11% 5.81% ------------------------------------------------------------------------- Stock Y 7/22/96 -18.26% 1.24% 7.21% -------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. PORTFOLIO MANAGER RAND L. ALEXANDER, CFA Senior Vice President, Partner Wellington Management Company, LLP ASSOCIATE PORTFOLIO MANAGER MAYA K. BITTAR, CFA Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Stock Fund Class A shares returned -18.7%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed both the Lipper Large Cap Core Average (-16.3%) and the S&P 500 Index (-15.1%). WHY DID THE FUND PERFORM THIS WAY? The twelve-month period ending October 31st proved to be another difficult period for U.S. equity investors with all the major indices posting negative returns. The aftermath of the tragedies of September 11th, weak corporate profits, corporate malfeasance issues, the unwinding of the tech, telecom, and media euphoria of 1999 and 2000, Iraq and the Middle East all weighed heavily on investor confidence. The best performing sectors of the market on a relative basis included consumer staples, industrial and commercial, basic materials, and banks. Weakest groups were healthcare, technology, telecommunications,and utilities. Large caps under performed smaller caps and value outperformed growth. The Fund underperformed the Index due to our emphasis on large caps, our underweights in consumer staples and consumer discretionary and significant declines in a few of our major holdings such as AOL Time Warner, Tyco, Wyeth, WorldCom, and Safeway. After September 11th, we repositioned the Fund to benefit from resurgence in economic growth brought about by lower interest rates and fiscal stimulus. Unfortunately,the U.S. economy has yet to respond in a robust way to such stimulus as confidence in the future has been undermined by threats of war and continuing corporate governance and accounting problems. WHAT IS YOUR OUTLOOK? Going forward, we continue to believe that the combination of very low interest rates coupled with continued fiscal stimulus will lead to a pick up in economic growth both here in the U.S. and abroad. While the Middle East and Iraq remain problematic, we believe that some positive resolution of the Iraqi situation may occur over the next six to twelve months. With the yield on equities now higher than the yield on money market instruments, and with most large companies now reporting that profits have at least stabilized, we believe that the large cap,high quality companies that make up the Fund should provide very competitive returns over the next twelve months. 20 THE HARTFORD VALUE FUND PERFORMANCE OVERVIEW 4/30/01 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
VALUE FUND RUSSELL 1000 VALUE INDEX - ------------------------------------------------------ 9,450 10,000 9,507 9,977 8,524 8,826 9,158 9,486 8,893 9,609 7,696 8,256 7,212 7,942
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------ Value A 4/30/01 -20.03% -19.47% ------------------------------------------------------------------------ Value B 4/30/01 -20.20% -19.19% ------------------------------------------------------------------------ Value C 4/30/01 -17.87% -17.53% ------------------------------------------------------------------------ Value Y 4/30/01 -15.05% -16.04% ------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President,Managing Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Value Fund Class A shares returned -15.4%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed the Russell 1000 Value Index return of -10.0% and the Lipper Large-Cap Value MF Average of -14.0% for the same period. WHY DID THE FUND PERFORM THIS WAY? As we approach the end of 2002 the market stands ready to hand investors their third consecutive year of negative returns. Over the last twelve months all market capitalization segments have declined, and large cap stocks have fallen further than small and mid-cap stocks. However, large cap value stocks, as measured by the Russell 1000 Value Index, have returned -10.0% over the last year and fared much better than their growth brethren as the Russell 1000 Growth Index returned -19.6% over the same period. The Fund underperformed its market benchmark primarily due to weak performance by holdings in the Consumer Discretionary and Telecommunication Services sectors, such as Worldcom, Adelphia Communications, and Goodyear Tire & Rubber. The Fund's Utilities holdings served to partially offset some of those declines; this was in sharp contrast with the poor performance of the benchmark's Utilities holdings. One of the Fund's particularly strong performers during the period was electric utility Exelon. Other stocks that contributed favorably to the Fund's performance were bank holdings Washington Mutual, and Wells Fargo. WHAT IS YOUR OUTLOOK? Though we would concede the expansion in the U.S. economy has lost some momentum recently, our forecast for a sustainable economic recovery appears to be on track. We believe the consumer will remain healthy, although we do expect some moderation in consumer spending. The industrial recovery has lagged our expectations, however, over the next twelve months a strengthening on the industrial side should offset most of what we lose on the consumer side. Relative to its benchmark, the Fund maintains an overweight position in the Materials sector and is underweight Financial stocks. 21 THE HARTFORD GROWTH AND INCOME FUND PERFORMANCE OVERVIEW 4/30/98 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
GROWTH AND INCOME FUND S&P 500 INDEX - ------------------------------------------------------ 9,450 10,000 9,591 10,119 9,625 9,959 11,197 11,638 11,652 12,181 11,889 12,162 11,861 12,515 12,359 12,841 13,104 13,414 13,143 13,252 13,124 13,276 12,855 12,727 12,073 11,676 11,663 11,356 10,380 9,974 10,952 10,676 10,251 10,205 8,657 8,675 8,447 8,468
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION ------------------------------------------------------------------------- Growth & Inc A 4/30/98 -23.08% -3.67% ------------------------------------------------------------------------- Growth & Inc B 4/30/98 -23.15% -3.56% ------------------------------------------------------------------------- Growth & Inc C 4/30/98 -20.90% -3.34% ------------------------------------------------------------------------- Growth & Inc Y 4/30/98 -17.97% -1.95% -------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER JAMES A. RULLO, CFA Senior Vice President, Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Growth and Income Fund Class A shares returned -18.6%, before sales charge, for the 12-month period ended October 31, 2002, underperforming its benchmark and peer group. The S&P 500 Index returned -15.1% and the Lipper Large Cap Core MF Average returned -16.3% during the period. WHY DID THE FUND PERFORM THIS WAY? The 12-month period ending October 31, 2002 proved to be another very difficult period for U.S. equity investors,with all major indices posting negative returns. Weak corporate profits, geopolitical uncertainties,and increasing concerns about the sustainability of consumer spending all weighed on investor confidence. Every major sector within the S&P 500 Index, except Consumer Staples, declined during the quarter. The best-performing sectors on a relative basis were Consumer Staples, Financials and Materials. The weakest sectors, which tended to be economically sensitive, included Information Technology and Telecommunications Services. With regard to a market- capitalization, large-caps underperformed small- and mid-caps. Value outperformed growth during the period. The Fund underperformed the benchmark during the period primarily due to stock selection in the Industrials, Telecommunications Services and Consumer Discretionary sectors. In Industrials, the overweight position in Tyco International accounted for approximately half of the Fund's underperformance relative to the Index during the period. In Telecommunication Services, holdings in WorldCom detracted heavily from performance. Within Consumer Discretionary, the Fund's exposure to AOL Time Warner, McDonald's and Adelphia Communications also negatively impacted performance. WHAT IS YOUR OUTLOOK? We remain cautiously optimistic on the outlook for the U.S. economy. We are anticipating positive but below-trend GDP growth until 2004. We expect that business capital expenditures will be slow in recovering, muting growth for the technology sector. We are looking for gradual improvements in the labor market, and some improvement for the consumer due to a high level of refinancing, although overall consumption may decelerate during the remainder of the year. 22 THE HARTFORD DIVIDEND AND GROWTH FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
DIVIDEND AND GROWTH FUND S&P 500 INDEX - ------------------------------------------------------- 9,450 10,000 10,423 11,198 11,409 12,542 11,504 12,845 13,652 15,368 13,356 14,790 14,454 15,914 15,771 18,118 15,553 18,333 15,434 18,044 16,179 21,086 17,330 22,070 16,913 22,035 16,962 22,674 16,393 23,265 16,960 24,304 16,774 24,010 18,242 24,054 18,509 23,057 18,653 21,153 18,597 20,574 16,841 18,070 17,983 19,341 17,970 18,488 15,855 15,717 15,065 15,342
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION STANDARDIZED DATE 1 YEAR 5 YEAR SINCE INCEPTION ------------------------------------------------------------------------------------ Div & Growth A 7/22/96 -15.43% 1.29% 6.75% ------------------------------------------------------------------------------------ Div & Growth B 7/22/96 -15.52% 1.37% 6.95% ------------------------------------------------------------------------------------ Div & Growth C 7/22/96 -12.97% 1.54% 6.81% ------------------------------------------------------------------------------------ Div & Growth Y 7/22/96 -10.00% 2.98% 8.25% ------------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. PORTFOLIO MANAGER EDWARD P. BOUSA Vice President Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Dividend and Growth Fund Class A shares returned -10.6%, before sales charge, for the 12-month period ended October 31, 2002. The Fund outperformed its competitive group as represented by the Lipper Equity Income MF Average, which provided a return of -12.2% and the S&P 500 Index, which provided return of -15.1% over the same period. WHY DID THE FUND PERFORM THIS WAY? During the past 12-months ended October 31, 2002, investor sentiment turned negative on not only the risk of terrorism and accounting scandals, but on the key factor in valuation,corporate earnings. Recently, the weakness in technology earnings spread to basic materials and capital goods as the economy showed no signs of rebounding. Although, the economy benefited from inventory building in the first half, there was no follow-through in corporate spending. These factors have combined to produce what is likely to be the third consecutive year of negative returns in the equity markets. With respect to the Fund's relative performance,strong stock selection and overweight positions relative to the S&P 500 Index in the Industrials and Utilities sectors were the greatest contributors. In line with our dividend-oriented, value style, the Fund continues to be underweight in the Information Technology sector. This underweight position relative to the S&P 500 Index also helped performance. Among the stocks that positively contributed to performance of the Fund were Pharmacia, Procter & Gamble, Avery Dennison, Exelon and Gannett. The Fund also had a few disappointments during the 12-month period including Alcoa, Safeway, Motorola, McDonald's and Household International. WHAT IS YOUR OUTLOOK? Pressures on the consumer coming from higher unemployment, higher state and local taxes,and higher energy prices should lead to weaker consumer discretionary spending. Growth in China could well lead Asia and Europe to start to recover before the U.S.; this would imply a weaker U.S. dollar, which would help the U.S. industrial economy. Hopefully, after a brief lag, the U.S. consumer will again recover and the economy can pick up more strongly across the board. We are well positioned for a strong industrial economy, and a weaker consumer. With a period of less-frequent doses of accounting, earnings,and terrorism-related bad news, the market could begin to recover. 23 THE HARTFORD ADVISERS FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
LEHMAN BROTHERS ADVISERS FUND GOVERNMENT/CREDIT BOND INDEX S&P 500 INDEX - ----------------------------------------------------------------------------- 9,450 10,000 10,000 10,188 11,198 10,430 10,923 12,542 10,517 11,123 12,845 10,565 12,750 15,368 11,122 12,484 14,790 11,349 13,127 15,914 11,691 14,383 18,118 11,762 14,907 18,333 12,019 14,766 18,044 12,514 16,063 21,086 12,711 16,678 22,070 12,501 16,633 22,035 12,300 16,771 22,674 12,432 17,074 23,265 12,346 17,964 24,304 12,619 17,840 24,010 13,001 18,086 24,054 13,318 18,111 23,057 14,045 17,388 21,153 14,147 17,079 20,574 14,653 16,157 18,070 15,358 16,648 19,341 15,096 15,951 18,488 15,205 14,721 15,717 15,661 14,475 15,342 16,199
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION STANDARDIZED DATE 1 YEAR 5 YEAR SINCE INCEPTION ------------------------------------------------------------------------------------- Advisers A 7/22/96 -15.36% 1.84% 6.07% ------------------------------------------------------------------------------------- Advisers B 7/22/96 -15.51% 1.92% 6.28% ------------------------------------------------------------------------------------- Advisers C 7/22/96 -12.88% 2.08% 6.11% ------------------------------------------------------------------------------------- Advisers Y 7/22/96 -9.89% 3.51% 7.55% -------------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. PORTFOLIO MANAGERS RAND L. ALEXANDER, CFA Senior Vice President, Partner Wellington Management Company, LLP PAUL D. KAPLAN Senior Vice President, Partner, Director of Fixed Income Wellington Management Company, LLP - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Advisers Fund Class A shares returned -10.4%, before sales charge, for the twelve-month period ended October 31, 2002. The Fund underperformed both the Lipper Flexible Portfolio peer group (-8.5%) and the Composite Index bench- mark (S&P 500 Index 55%; Lehmen Brothers Government/ Credit Bond Index 35%; T-Bills 10%) (-6.0%). WHY DID THE FUND PERFORM THIS WAY? During the year, the equity ratio in the Fund declined from a high of 70% to 55% but is currently back to 63% as we gradually reduce our exposure to bonds. The primary change in the bond market during the period was a sharp decline in yields as the result of a sense of gathering gloom concerning the health of the U.S. economy and the continuing decline in equity markets. Short-term yields experienced the most substantial declines as a general "flight to quality" pushed investors into short-term, high-quality securities. The result was a level of interest rates in the Treasury note and bond markets that has not been seen since the 1960s. The corporate bond market was once again held back by credit deterioration and the continuing weakness of the telecommunications and utility sectors, among others. The rate of default in the high yield market and the rate of credit deterioration in the investment-grade bond market remained at historically high levels. There is a growing sense that a general de-leveraging of corporate America is underway and that economic weakness and many areas of price deflation are generating operating difficulties for highly levered companies. The U.S. economy has historically dealt with this sort of problem and moved on, and it is likely that this period will be no different, but it is also clear that the process is not yet over. The mortgage-backed securities market has not had credit problems,but it has had repeated bouts of refinancing as interest rates have fallen. During the third quarter it became clear that yet another round of refinancing is underway. As a result, mortgage securities lagged comparable Treasury securities by wide margins of performance. WHAT IS YOUR OUTLOOK? Although it does not feel like it at the moment, we continue to believe that the odds are that the U.S. economy is expanding, though at a modest rate. The question at this point is, will that expansion continue or are we falling back into recession or near recession? Clearly, the economic statistics released recently have indicated more weakness than we would have thought. We still believe that economic expansion is the most likely outcome, but a sharp rebound does not, at this point, seem to be in the cards. Although the Federal funds rate is at a very low 1.75%, we think it is likely that the Fed will lower that rate yet again in order to send a positive signal to the financial markets. The confidence crisis remains and, if anything, has worsened. This situation will change, but it does now appear that the process will be more difficult than the standard recovery from recession. Declining equity markets, problems of corporate governance, talk of deflation,and war with Iraq are all weighing heavily. Although we remain attracted to the yields offered by corporate and mortgage-backed securities, diversification and caution remain important,at least for the foreseeable future. The view will grow rosier, but we aren't there yet. 24 THE HARTFORD HIGH YIELD FUND PERFORMANCE OVERVIEW 9/30/98 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3) [PERFORMANCE LINE GRAPH]
HIGH YIELD FUND LEBMAN BROTHERS HIGH YIELD CORPORATE INDEX - ------------------------------------------------------------------- 9,450 10,000 9,529 9,795 10,017 10,364 10,326 10,603 10,103 10,408 10,040 10,222 10,120 10,413 10,049 10,230 10,280 10,410 10,175 10,057 10,957 10,583 10,624 10,341 10,497 10,382 10,358 10,040 10,464 10,437 10,314 10,703 9,193 9,432 9,097 9,490
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (2)
STANDARDIZED INCEPTION DATE 1 YEAR SINCE INCEPTION -------------------------------------------------------------------------- High Yield A 9/30/98 -16.13% -2.28% -------------------------------------------------------------------------- High Yield B 9/30/98 -16.69% -2.22% -------------------------------------------------------------------------- High Yield C 9/30/98 -14.52% -2.08% -------------------------------------------------------------------------- High Yield Y 9/30/98 -12.01% -0.80% --------------------------------------------------------------------------
Please see page for important additional information 1 including inception dates and expenses. PORTFOLIO MANAGER ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company ASSOCIATE PORTFOLIO MANAGER CHRISTINE MOZONSKI Vice President Hartford Investment Management Company - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford High Yield Fund Class A shares placed in the 69th percentile of its Lipper peer group for the six months ended October 31, 2002 producing a total return of -11.79% versus the -9.72% return of the Lipper High Yield Fixed Income Fund average for the same period. The one-year return for the Fund's A shares, before sales charge, for the period ending October 31,2002 was -12.16% versus - -4.94% for the Lipper peer group. WHY DID THE FUND PERFORM THIS WAY? The Fund benefited from its overweight to cyclical commodities including independent energy producers, chemicals and metals/mining companies. In spite of their attractive yields,the Fund's holdings in technology and electric utilities were the major offset to these performance benefits. WHAT IS YOUR OUTLOOK? Due to attractive valuations, we anticipate maintaining the Fund's emphasis on industries poised to lead the U.S. economy toward higher growth. These include technology and basic industry cyclicals. The Fund continues to minimize exposure to finance and consumer-sensitive securities, as we expect the consumer to lag any economic recovery produced by a rise in capital spending. 25 THE HARTFORD TOTAL RETURN BOND FUND PERFORMANCE OVERVIEW 7/22/96 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (3 ) [PERFORMANCE LINE GRAPH]
TOTAL RETURN LEHMAN BROTHERS LEHMAN BROTHERS BOND FUND GOVERNMENT/CREDIT BOND INDEX U.S. AGGREGATE BOND INDEX* - -------------------------------------------------------------------------------- 9,450 10,000 10,000 9,958 10,429 10,410 10,153 10,515 10,522 10,205 10,564 10,588 10,811 11,121 11,108 10,960 11,348 11,337 11,339 11,690 11,652 11,419 11,761 11,743 11,618 12,018 11,980 11,871 12,514 12,394 12,122 12,709 12,591 11,940 12,500 12,479 11,655 12,298 12,276 11,766 12,431 12,458 11,673 12,345 12,356 11,951 12,619 12,634 12,293 13,001 13,008 12,539 13,317 13,367 13,302 14,044 14,066 13,378 14,147 14,200 13,740 14,653 14,660 14,162 15,357 15,316 14,075 15,096 15,129 14,178 15,205 15,314 14,335 15,662 15,767 14,798 16,199 16,218
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (1), (2)
INCEPTION STANDARDIZED DATE 1 YEAR 5 YEAR SINCE INCEPTION --------------------------------------------------------------------------------- Total Return A 7/22/96 -0.17% 5.21% 6.44% --------------------------------------------------------------------------------- Total Return B 7/22/96 -1.18% 5.12% 6.46% --------------------------------------------------------------------------------- Total Return C 7/22/96 1.76% 5.25% 6.29% --------------------------------------------------------------------------------- Total Return Y 7/22/96 5.01% 6.66% 7.71% ---------------------------------------------------------------------------------
Please see page for important additional information including 1 inception dates and expenses. * THE FUND HAS CHANGED ITS BENCHMARK FROM THE LEHMAN BROTHERS GOVERNMENT / CREDIT BOND INDEX TO THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX BECAUSE THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX IS BETTER SUITED FOR THE INVESTMENT STRATEGY OF THE FUND. PORTFOLIO MANAGER ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Total Return Bond Fund Class A shares placed in the 21st percentile of its Lipper peer group for the six months ended October 31, 2002, producing a total return of 4.38% versus a 2.05% for the Lipper Corporate Debt "BBB" rated Mutual Fund Universe. For the one-year period, the Fund's A shares placed in the 25th percentile with a return of 4.50% versus 2.32% for the Lipper peer group. WHY DID THE FUND PERFORM THIS WAY? The Fund benefited from its overweight to investment grade corporate bonds. The Fund's underweight to mortgage-backed securities and U.S. Treasuries also contributed positively to returns. The higher yields offered by foreign government securities combined with the outperformance of foreign currencies relative to the dollar combined to contribute outperformance to the Fund overall from its small exposure to non-dollar-denominated government securities. In spite of their attractive yield, the Fund's holdings in high yield corporate bonds were the major offset to these performance benefits. WHAT IS YOUR OUTLOOK? In the near term, we believe that war fears will dominate valuations of many fixed income instruments, particularly Treasury securities. We expect these concerns to lend volatility to the market. Apart from this consideration, we are seeing growing signs that certain corporations are focused on reducing leverage and improving their financial flexibility. Yields are currently at attractive levels relative to U.S. Treasury securities. Within corporates, Fund holdings particularly emphasize select telecommunications and technology issues, as well as basic industry cyclicals. We expect these industries to lead the U.S. economy toward higher growth. We are not emphasizing finance and consumer-sensitive securities, as we expect the consumer to lag any economic recovery produced by a rise in capital spending. 26 THE HARTFORD TAX-FREE MINNESOTA FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (7), (9) [PERFORMANCE LINE GRAPH]
TAX-FREE MINNESOTA FUND LEHMAN BROTHERS MUNICIPAL BOND INDEX - ------------------------------------------------------------------ 9,550 10,000 10,930 11,408 10,509 10,911 11,761 12,530 12,276 13,245 13,120 14,369 14,055 15,521 13,720 15,246 14,716 16,544 16,157 18,282 16,748 19,356
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (7), (8), (11)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION -------------------------------------------------------------------------------------------- Minn A 6/2/86 -0.99% 4.05% 5.29% 5.99% -------------------------------------------------------------------------------------------- Minn B 11/14/94 -1.74% 3.78% N/A 5.41% -------------------------------------------------------------------------------------------- Minn C 11/14/94 1.13% 3.71% N/A 5.28% -------------------------------------------------------------------------------------------- Minn H 11/14/94 -0.44% 3.83% N/A 5.46% -------------------------------------------------------------------------------------------- Minn E 6/2/86 -0.10% 4.23% 5.39% 6.04% -------------------------------------------------------------------------------------------- Minn L 11/14/94 -0.46% 3.97% N/A 5.63% -------------------------------------------------------------------------------------------- Minn M 11/14/94 -0.54% 3.82% N/A 5.44% -------------------------------------------------------------------------------------------- Minn N 11/14/94 2.66% 4.19% N/A 5.45% -------------------------------------------------------------------------------------------- Minn Y 2/19/02 N/A N/A N/A 4.92%* --------------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGER CHARLES GRANDE, CFA Vice President Hartford Investment Management Company PATRICK J. HENNIGAN Assistant Portfolio Manager Hartford Investment Management Company - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free Minnesota Fund Class A shares placed in the 22nd percentile of its Lipper peer group for the six months ending October 31, 2002 producing a total return of 4.15% versus the 3.86% return of the Lipper Minnesota Municipal Debt Fund average for the same period. The one-year return for the Fund's A shares, before sales charge, for the period ended October 31, 2002 was 4.58% versus 4.84% for the Lipper peer group. WHY DID THE FUND PERFORM THIS WAY? The municipal bond market is currently on track for a year of record-breaking issuance that has been met by record-breaking demand. In general, the municipal market has enjoyed a period of strong performance brought about by a continuous decline in rates, recognition of the relative safety of municipal credits and strong demand from both traditional and non-traditional buyers. The Fund's total return performance benefited from its favorable curve positioning and high credit quality of holdings. The Fund's duration was relatively close to the market, but an overweight to the intermediate portion of the curve provided better than average performance. Yields in the intermediate portion of the curve declined between 40 and 50 basis points while long yields declined just a little more than 20 basis points. The strategy of avoiding Alternative Minimum Tax and high-yield municipal bonds in the current environment paid off as spreads widened in both of these types of bonds. In August, Moody's ratings service announced upgrades to 36 of the 109 school districts Moody's rates in the state. At the end of October, the Fund gave back some of its performance as the nine month municipal market rally began to fizzle. WHAT IS YOUR OUTLOOK? We expect the municipal market will perform fairly well for the remainder of the year. The bulk of issuance appears to have subsided and demand, which has been greatly influenced by alternative investment trends, also appears healthy. We are entering the seasonal period of the year where municipals have historically performed well due to a lack of supply and strong reinvestment demand from maturities and coupon payments. The change in the Fund objective to yield maximization will benefit from the current widening of credit spreads. Credit spread has widened because of the effects of the national economic decline and credit spread will continue to widen until the benefits of an economic recovery have cycled through Minnesota, having addressed the immediate budget gap primarily with non-recurring revenues, is facing a structural imbalance for fiscal 2004-05 that will likely require a combination of spending cuts and revenue increases. Ongoing financial pressures at the state level could lead to reductions in state aid to local governments. 27 THE HARTFORD TAX-FREE NATIONAL FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (7), (9) [PERFORMANCE LINE GRAPH]
TAX-FREE NATIONAL FUND LEHMAN BROTHERS MUNICIPAL BOND INDEX - ------------------------------------------------------------------- 9,550 10,000 11,053 11,408 10,461 10,911 11,855 12,530 12,469 13,245 13,424 14,369 14,360 15,521 13,841 15,246 14,949 16,544 16,514 18,282 17,319 19,356
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (7), (8), (11)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION ------------------------------------------------------------------------------------------------ National A 6/2/86 0.13% 4.27% 5.65% 6.46% ------------------------------------------------------------------------------------------------ National B 11/14/94 -1.28% 3.82% N/A 5.87% ------------------------------------------------------------------------------------------------ National C 11/14/94 2.04% 3.84% N/A 5.76% ------------------------------------------------------------------------------------------------ National H 11/14/94 -0.01% 3.86% N/A 5.90% ------------------------------------------------------------------------------------------------ National E 6/2/86 0.18% 4.28% 5.65% 6.47% ------------------------------------------------------------------------------------------------ National L 11/14/94 -0.03% 4.03% N/A 6.08% ------------------------------------------------------------------------------------------------ National M 11/14/94 -0.01% 3.88% N/A 5.90% ------------------------------------------------------------------------------------------------ National N 11/14/94 2.99% 4.21% N/A 5.89% ------------------------------------------------------------------------------------------------ National Y 2/19/02 N/A N/A N/A 5.52%* ------------------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGER CHARLES GRANDE, CFA Vice President Hartford Investment Management Company PATRICK J. HENNIGAN Assistant Portfolio Manager Hartford Investment Management Company - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford Tax-Free National Class A shares placed in the 24th percentile of its Lipper peer group for the six months ending October 31, 2002 producing a total return of 4.75% versus the 3.95% return of the Lipper General Municipal Debt Fund average for the same period. The one-year return for the Fund's A shares, before sales charge, for the year ended October 31, 2002 was 4.93% versus 4.44% for the Lipper peer group. WHY DID THE FUND PERFORM THIS WAY? The municipal bond market is currently on track for a year of record-breaking issuance that has been met by record-breaking demand. In general, the municipal market has enjoyed a period of strong performance brought about by a continuous decline in rates, recognition of the relative safety of municipal credits and strong demand from both traditional and non-traditional buyers. The Fund's total return performance benefited from its favorable curve positioning and the high credit quality of holdings. The Fund's duration was relatively close to the market, but an overweight to the intermediate portion of the curve provided better than average performance.Yields in the intermediate portion of the curve declined between 40 and 50 basis points while long yields declined just a little more than 20 basis points. The strategy of avoiding Alternative Minimum Tax and high-yield municipal bonds in the current environment paid off as spreads widened in both of these types of bonds. Due to a glut of issuance, both New York and California bonds have underperformed the general market and the Fund continued to benefit from the tactical sales of bonds from these states executed earlier in the year. At the end of October,the Fund gave back some of its performance as the nine month municipal market rally began to fizzle. WHAT IS YOUR OUTLOOK? We expect the municipal market will perform fairly well for the remainder of the year. The bulk of issuance appears to have subsided and demand, which has been greatly influenced by alternative investment trends, also appears healthy. We are entering the seasonal period of the year where municipals have historically performed well due to a lack of supply and strong reinvestment demand from maturities and coupon payments. We are however, cautious on credit. Credit spread has widened because of the effects of the national economic decline and credit spread will continue to widen until the benefits of an economic recovery have cycled through. The change in the Fund objective to yield maximization will benefit from the current widening of credit spreads. 28 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND PERFORMANCE OVERVIEW 10/31/92 - 10/31/02 Growth of a $10,000 investment in Class A which includes Sales Charge (7), (9) [PERFORMANCE LINE GRAPH]
U.S. GOVERNMENT SECURITIES FUND LEHMAN BROTHERS INTERMEDIATE GOV'T INDEX - -------------------------------------------------------------------------------- 9,550 10,000 10,467 10,921 9,834 10,734 11,164 12,000 11,746 12,681 12,727 13,609 13,882 14,905 13,765 15,027 14,708 16,038 16,763 18,259 17,825 19,480
AVERAGE ANNUAL TOTAL RETURNS (as of 10/31/02) (7), (8), (11)
INCEPTION SINCE STANDARDIZED DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION ----------------------------------------------------------------------------------------- U.S. Gov A 2/28/73 1.51% 6.00% 5.96% 7.95% ----------------------------------------------------------------------------------------- U.S. Gov B 11/14/94 0.44% 5.62% N/A 6.76% ----------------------------------------------------------------------------------------- U.S. Gov C 11/14/94 3.39% 5.59% N/A 6.62% ----------------------------------------------------------------------------------------- U.S. Gov H 11/14/94 1.41% 5.63% N/A 6.75% ----------------------------------------------------------------------------------------- U.S. Gov E 2/28/73 1.70% 6.04% 5.98% 7.96% ----------------------------------------------------------------------------------------- U.S. Gov L 11/14/94 1.46% 5.77% N/A 6.92% ----------------------------------------------------------------------------------------- U.S. Gov M 11/14/94 1.51% 5.63% N/A 6.77% ----------------------------------------------------------------------------------------- U.S. Gov N 11/14/94 4.52% 5.98% N/A 6.77% ----------------------------------------------------------------------------------------- U.S. Gov Y 2/19/02 N/A N/A N/A 7.32%* -----------------------------------------------------------------------------------------
Please see page for important additional 1 information including inception dates and expenses. * CUMULATIVE TOTAL RETURN PORTFOLIO MANAGER PETER PERROTTI Senior Vice President Hartford Investment Management Company - -------------------------------------------------------------------------------- HOW DID THE FUND PERFORM? The Hartford U.S. Government Securities Fund Class A shares placed in the 25th percentile of its Lipper peer group for the six months ended October 31, 2002, producing a return of 6.87% versus 5.90% return for the Lipper U.S. Intermediate Government Funds Universe. The one-year return for the Fund's A shares, before sales charge, for the year ended October 31,2002 placed in the 8th percentile with a return of 6.55% versus 5.43% for the Universe. WHY DID THE FUND PERFORM THIS WAY? Investors have sought the safety of Treasury Securities as the prospects of war, fear of terrorism, mistrust of corporate leaders, and talk of deflation have weighed on the capital markets. Although the Federal Reserve had not moved the short-term funds rates through October of this year, the Treasury market rallied significantly. During 2002, the 5-year Treasury rallied 1.5%, closing the month near a multi-decade low of just over 2.7%. In addition to the market's march to lower rates, the Government market experienced a degree of volatility from within. Fannie Mae, which is a Government Sponsored Enterprise (but not guaranteed by the government), came under intense scrutiny due to a mismatch in their asset/liability mix. The Fannie Mae duration gap brought volatility to agency spreads, as investors and politicians became wary of the risks embedded in Fannie Mae's retained portfolio. Although the duration gap has moved back to within their self-imposed limit of a half-year, investors will continue to watch these monthly releases closely. The Fund's strong performance for the quarter is attributed to many factors. The Fund benefited from being overweight the 5 to 10-year part of the Treasury curve,where yields rallied the most on the quarter. The allocation to Mortgage-Backed Securities increased the yield and added to the total return of the Fund. Lastly, the Fund had an underweight to agency debentures, which came under pressure during the third quarter. WHAT IS YOUR OUTLOOK? The economy continues to walk on a tightrope to recovery. With the expectations of GDP growth in the 2% to 4% for the coming quarters, the economy appears to be expanding, albeit modestly. However, the risks of the economy taking another leg down are increasing. Manufacturing growth, as measured by the Institute of Supply Management, is currently contracting after showing signs of expansion for most of the first half of the year. Although the unemployment rate has dipped to 5.6% growth, employment growth has been anemic and jobless claims have been increasing. Consumer confidence has fallen off dramatically, and signs that the consumer may be retrenching have increased. Market volatility is likely to continue until the economic and political situations become more stable. There are strong technical conditions supporting the current market levels, but the fundamental picture is less certain. With the 10-year Treasury ending October at 3.9%, rates are unlikely to drop significantly further, unless GDP growth turns negative again or a deflationary environment takes hold. The data appears to be pointing to an economy that will grow at below trend growth, but will be expanding nonetheless. Within the Fund, we will look to add higher yielding but less price sensitive securities. 29 THE HARTFORD GLOBAL COMMUNICATIONS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 94.7% AUSTRIA -- 5.8% 42 Telekom Austria AG(a)(Information)................ $ 321 ------ ITALY -- 14.8% @165 Olivetti S.p.A. (Information)..................... 171 64 Telecom Italia Mobile S.p.A. (T.I.M.) (Information)................................... 296 @68 Telecom Italia S.p.A. (Information)............... 357 ------ 824 ------ JAPAN -- 4.8% @@ Nippon Telegraph & Telephone Corp. (Information)................................... 128 @@ NTT DoCoMo, Inc. (Information).................... 139 ------ 267 ------ NETHERLANDS -- 1.2% 11 Koninklijke (Royal) KPN N.V. (Information)........ 68 ------ SOUTH KOREA -- 4.7% 5 KT Freetel(a) (Information)....................... 133 31 LG Telecom Ltd.(a) (Information).................. 130 ------ 263 ------ UNITED KINGDOM -- 4.6% 30 Cable & Wireless plc (Information)................ 70 116 Vodafone Group plc (Information).................. 187 ------ 257 ------ UNITED STATES -- 58.8% 39 AT&T Corp. (Information).......................... 509 @35 AT&T Wireless Services, Inc.(a) (Information)..... 237 8 BellSouth Corp. (with rights) (Information)....... 207 @75 Citizens Communications Co.(a) (Information)...... 622 @22 Nextel Communications, Inc. Class A(a) (Information)................................... 246 @57 Nextel Partners, Inc. Class A(a) (Information).... 405 71 Qwest Communications International, Inc. (Information)................................... 241
MARKET SHARES VALUE(C) - --------- -------- UNITED STATES -- (CONTINUED) 10 SBC Communications, Inc.(Information)............. $ 259 @28 Sprint Corp.(PCS Group)(a) (Information).......... 98 17 Sprint Corp.(with rights)(Information)............ 207 @6 Verizon Communications, Inc. (Information)........ 245 ------ 3,276 ------ Total common stock (cost $6,062).................. $5,276 ====== PRINCIPAL MARKET AMOUNT VALUE(C) - --------- -------- SHORT-TERM INVESTMENTS -- 5.2% $ 291 Joint Repurchase Agreement, 1.88%, 11-01-2002 (Note 2f) (Finance and Insurance)...................................... 291 ------ Total short-term investments (cost $291).......... $ 291 ====== Total investments in securities (cost $6,353)(b)...................................... $5,567 ======
STATEMENT OF ASSETS AND LIABILITIES ASSETS Investments in securities, at value......................... $5,567 Collateral for securities lending transactions (Note 2d).... 1,460 Receivables: Fund shares sold.......................................... 1 Dividends and interest.................................... 9 Other assets................................................ 3 ------ Total assets................................................ 7,040 ------ LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........ 1,460 Fund shares redeemed...................................... 4 Payable for investment management and advisory fees (Note 3)...................................................... 4 Accrued Expenses.......................................... 3 ------ Total liabilities........................................... 1,471 ------ Net assets.................................................. $5,569 ======
The accompanying notes are an integral part of this financial statement. 30 - -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 1,727 shares outstanding............................................... $13,613 Accumulated net realized loss on investments and foreign currency transactions..................................... (7,258) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.......................................... (786) ------- Net assets.................................................. $ 5,569 =======
Class A Net asset value per share ($3,506 / 1,084 shares outstanding).................................. $3.24 ===== Maximum offering price per share ($3.24 /94.5%)... $3.43 ===== Class B Net asset value per share ($846 / 265 shares outstanding).................................. $3.19 ===== Class C Net asset value per share ($736 / 231 shares outstanding).................................. $3.19 ===== Maximum offering price per share ($3.19 /99.0%)... $3.22 ===== Class Y Net asset value per share ($481 / 147 shares outstanding).................................. $3.26 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes was $6,623 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 125 Unrealized depreciation...................... (1,181) ------- Net unrealized depreciation.................. $(1,056) =======
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 31 THE HARTFORD GLOBAL FINANCIAL SERVICES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 96.9% AUSTRALIA -- 1.1% 18 Australia & New Zealand Banking Group Ltd. (Finance and Insurance)......................... $ 183 ------- BELGIUM -- 2.4% 40 Dexia (Finance and Insurance)..................... 389 ------- BERMUDA -- 5.3% @21 Annuity & Life Re (Holdings) Ltd. (Finance and Insurance)...................................... 100 @25 Bank of Bermuda Ltd. (Finance and Insurance)...... 775 ------- 875 ------- FRANCE -- 4.3% 9 BNP Paribas (Finance and Insurance)............... 351 7 Societe Generale Class A (Finance and Insurance)...................................... 360 ------- 711 ------- IRELAND -- 1.8% 21 Allied Irish Banks plc (Finance and Insurance).... 292 ------- ITALY -- 5.0% 219 UniCredito Italiano S.p.A. (Finance and Insurance)...................................... 825 ------- JAPAN -- 3.6% @@ Mitsubishi Tokyo Financial Group, Inc. (Finance and Insurance).................................. 274 10 Promise Co. Ltd. (Finance and Insurance).......... 326 ------- 600 ------- NETHERLANDS -- 1.4% 17 Aegon N.V. (Finance and Insurance)................ 225 ------- PANAMA -- 0.2% 8 Banco Latinoamericano de Exportaciones S.A. Class E ADR (Finance and Insurance)................... 25 ------- SINGAPORE -- 1.5% 32 United Overseas Bank Ltd. (Finance and Insurance)...................................... 243 ------- SPAIN -- 1.5% 6 Banco Popular Espanol (Finance and Insurance)..... 248 ------- UNITED KINGDOM -- 8.8% 1 Aviva plc (Finance and Insurance)................. 6 52 Royal Bank of Scotland Group plc (Finance and Insurance)...................................... 1,233 19 Standard Chartered plc (Finance and Insurance).... 221 ------- 1,460 -------
MARKET SHARES VALUE(C) - --------- -------- UNITED STATES -- 60.0% 21 ACE Ltd. ADR (with rights) (Finance and Insurance)...................................... $ 649 9 Ambac Financial Group, Inc. (Finance and Insurance)...................................... 575 12 American International Group, Inc. (Finance and Insurance)...................................... 738 24 Bank of Hawaii Corp. (Finance and Insurance)...... 702 10 Bank One Corp. (Finance and Insurance)............ 405 @18 Cincinnati Financial Corp. (Finance and Insurance)...................................... 688 22 Citigroup, Inc. (Finance and Insurance)........... 809 @29 Clark/Bardes, Inc.(a) (Finance and Insurance)..... 485 8 Fannie Mae (Finance and Insurance)................ 535 @4 Freddie Mac (Finance and Insurance)............... 277 @14 Investment Technology Group, Inc. (with rights)(a) (Finance and Insurance)......................... 451 22 KeyCorp (Finance and Insurance)................... 530 15 Marsh & McLennan Companies, Inc. (with rights) (Finance and Insurance)......................... 710 @8 MBIA, Inc. (Finance and Insurance)................ 362 @20 Merrill Lynch & Co., Inc. (Finance and Insurance)...................................... 748 12 Morgan Stanley Dean Witter & Co. (with rights) (Finance and Insurance)......................... 448 @10 PNC Financial Services Group, Inc. (with rights) (Finance and Insurance)......................... 402 @14 Reinsurance Group of America, Inc. (Finance and Insurance)...................................... 379 ------- 9,893 ------- Total common stock (cost $18,067)................. $15,969 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 2.8% $456 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f) (Finance and Insurance)...................................... $ 456 ------- Total short-term investments (cost $456).......... $ 456 ======= Total investments in securities (cost $18,522)(b)..................................... $16,425 =======
The accompanying notes are an integral part of this financial statement. 32 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES ASSETS Investments in securities, at value.............. $16,425 Foreign currency on deposit with custodian (cost $3)...................................... 3 Collateral for securities lending transactions (Note 2d)...................................... 2,676 Receivables: Investment securities sold..................... 92 Fund shares sold............................... 4 Dividends and interest......................... 22 Other assets..................................... 7 ------- Total assets..................................... 19,229 ------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).................................... 2,676 Investment securities purchased................ 50 Payable for investment management and advisory fees (Note 3)................................ 13 Payable for distribution fees (Note 3)......... 2 Accrued Expenses............................... 11 ------- Total liabilities................................ 2,752 ------- Net assets....................................... $16,477 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 2,059 shares outstanding....................... $20,586 Accumulated undistributed net investment income......................................... 58 Accumulated net realized loss on investments and foreign currency transactions.................. (2,070) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.... (2,097) ------- Net assets....................................... $16,477 =======
Class A Net asset value per share ($9,739 / 1,212 shares outstanding).................................. $8.03 ===== Maximum offering price per share ($8.03 / 94.5%)............................... $8.50 ===== Class B Net asset value per share ($2,755 / 348 shares outstanding).................................. $7.92 ===== Class C Net asset value per share ($2,548 / 322 shares outstanding).................................. $7.92 ===== Maximum offering price per share($7.92 / 99.0%).......................... $8.00 ===== Class Y Net asset value per share ($1,435 / 177 shares outstanding).................................. $8.10 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $18,649 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 277 Unrealized depreciation...................... (2,501) ------- Net unrealized depreciation.................. $(2,224) =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 33 THE HARTFORD GLOBAL HEALTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 99.2% CHEMICAL MANUFACTURING -- 1.0% 51 Bayer AG.......................................... $ 982 70 Connetics Corp.(a)................................ 897 -------- 1,879 -------- COMPUTER MANUFACTURING -- 1.5% 100 Beckman Coulter, Inc. (with rights)............... 2,785 -------- FINANCE -- INSURANCE CARRIERS -- .8% 25 Anthem, Inc.(a)................................... 1,581 -------- HEALTH CARE -- ELECTROMEDICAL MANUFACTURING --2.8% 112 Guidant Corp.(a).................................. 3,327 84 Waters Corp. (with rights)(a)..................... 2,113 -------- 5,440 -------- HEALTH CARE -- HEALTH AND PERSONAL CARE STORES -- 2.0% 138 CVS Corp. ........................................ 3,824 -------- HEALTH CARE -- MEDICAL AND DIAGNOSTIC LABORATORIES -- 1.5% @13 Gen-Probe, Inc.(a)................................ 261 105 Laboratory Corp. of America Holdings (with rights)(a)...................................... 2,523 -------- 2,784 -------- HEALTH CARE -- MEDICAL EQUIPMENT & SUPPLIES --8.3% 141 Baxter International, Inc. (with rights).......... 3,528 144 Becton, Dickinson & Co. (with rights)............. 4,237 @627 Gambro AB Class B................................. 3,149 76 St. Jude Medical, Inc. (with rights)(a)........... 2,692 @137 Viasys Healthcare, Inc. (with rights)(a).......... 2,204 -------- 15,810 -------- HEALTH CARE -- OUTPATIENT CARE CENTERS -- 2.9% 122 Coventry Health Care, Inc. (with rights)(a)....... 4,082 63 Health Net, Inc. (with rights)(a)................. 1,468 -------- 5,550 -------- HEALTH CARE -- PHARMACEUTICAL & MEDICINE -- 49.4% 324 Abbott Laboratories (with rights)................. 13,587 209 Abgenix, Inc. (with rights)(a).................... 1,420 @286 Amylin Pharmaceuticals, Inc.(a)................... 4,974 285 AstraZeneca plc ADR............................... 10,702 57 AtheroGenics, Inc. (with rights)(a)............... 379 80 Aventis S.A. ADR.................................. 4,712 @61 Cephalon, Inc.(a)................................. 3,080 168 Chugai Pharmaceutical Co. Ltd. ................... 1,377 168 Eisai Co. Ltd. ................................... 3,627 27 Forest Laboratories, Inc. (with rights)(a)........ 2,685
MARKET SHARES VALUE(C) - --------- -------- HEALTH CARE -- PHARMACEUTICAL & MEDICINE -- (CONTINUED) 183 Fujisawa Pharmaceutical Co. Ltd. ................. $ 3,555 199 Fujisawa Pharmaceutical Co. Ltd.(e)............... 311 261 Genzyme Corp. -- General Division(a).............. 7,269 88 ILEX Oncology, Inc. (with rights)(a).............. 540 136 Lilly (Eli) & Co. (with rights)................... 7,576 86 Novartis AG....................................... 3,263 94 SangStat Medical Corp.(a)......................... 1,762 473 Schering-Plough Corp. (with rights)............... 10,094 @281 Shionogi & Co. Ltd................................ 3,223 94 Vertex Pharmaceuticals, Inc.(a)................... 1,837 93 Watson Pharmaceuticals, Inc.(a)................... 2,568 178 Wyeth (with rights)............................... 5,963 -------- 94,504 -------- HEALTH CARE -- DRUGS & DRUGGISTS SUNDRIES WHOLESALERS -- 2.4% 155 McKesson Corp. ................................... 4,609 -------- HEALTH CARE -- DRUGS AND DRUGGISTS' SUNDRIES MERCHANT -- 2.6% @9 Serono S.A. Class B............................... 5,033 -------- HEALTH CARE -- SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES -- 18.8% 66 Amgen, Inc. (with rights)(a)...................... 3,062 236 Applera Corp. -- Celera Genomics Group(a)......... 1,945 210 Ciphergen Biosystems, Inc.(a)..................... 614 @151 CV Therapeutics, Inc. (with rights)(a)............ 3,626 @377 Elan Corp. plc ADR(a)............................. 660 56 Genentech, Inc.(a)................................ 1,895 90 Gilead Sciences, Inc.(a).......................... 3,113 117 Human Genome Sciences, Inc. (with rights)(a)...... 1,139 @154 Medicines Co.(a).................................. 2,240 141 Monsanto Co. ..................................... 2,325 252 Pharmacia Corp. (with rights)..................... 10,853 @105 Regeneron Pharmaceutical, Inc.(a)................. 1,589 201 Ribapharm, Inc.(a)................................ 913 198 Rigel Pharmaceuticals, Inc.(a).................... 297 @123 Telik, Inc.(a).................................... 1,816 -------- 36,087 -------- INFORMATION -- SOFTWARE APPLICATIONS & SERVICES -- 1.4% 150 NDCHealth Corp. (with rights)..................... 2,656 -------- PROFESSIONAL SERVICES -- COMPUTER SYS DESIGN & RELATED -- 1.8% 84 Cerner Corp.(a)................................... 2,991 116 Eclipsys Corp. (with rights)(a)................... 565 -------- 3,556 --------
The accompanying notes are an integral part of this financial statement. 34 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES -- 2.0% @322 Exelixis, Inc.(a)................................. $ 1,592 166 Molecular Devices Corp. (with rights)(a).......... 2,231 -------- 3,823 -------- Total Common Stock (cost $221,971)................ $189,921 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 0.8% FINANCE -- 0.8% $1,563 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 1,563 -------- Total short-term investments (cost $1,563)................................... $ 1,563 ======== Total investments in securities (cost $223,534)(b).............................. $191,484 ========
STATEMENT OF ASSETS AND LIABILITIES ASSETS Investments in securities, at value............ $191,484 Foreign currency on deposit with custodian (cost $1).................................... 1 Collateral for securities lending transactions (Note 2d).................................... 16,243 Receivables: Investment securities sold................... 234 Fund shares sold............................. 256 Dividends and interest....................... 317 Other assets................................... 61 -------- Total assets................................... 208,596 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).................................. 16,243 Investment securities purchased.............. 388 Fund shares redeemed......................... 229 Payable for investment management and advisory fees (Note 3)..................... 158 Payable for distribution fees (Note 3)....... 24 Accrued Expenses............................. 91 -------- Total liabilities.............................. 17,133 -------- Net assets..................................... $191,463 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 16,913 shares outstanding.................... $221,219 Accumulated net realized gain on investments and foreign currency transactions............ 2,291 Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency..................................... (32,047) -------- Net asset...................................... $191,463 ========
Class A Net asset value per share ($101,881 / 8,921 shares outstanding).......................... $11.42 ====== Maximum offering price per share ($11.42 / 94.5%)............................. $12.08 ====== Class B Net asset value per share ($45,659 / 4,076 shares outstanding).......................... $11.20 ====== Class C Net asset value per share ($43,042 / 3,840 shares outstanding).......................... $11.21 ====== Maximum offering price per share ($11.21 / 99.0%)............................. $11.32 ====== Class Y Net asset value per share ($881 / 76 shares outstanding)................................. $11.61 ======
(a) Presently non-incoming producing (b) At October 31, 2002, the cost of securities for federal income tax purposes is $225,660 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $8,802 Unrealized depreciation.................................................. (42,978) ----- Net unrealized depreciation.............................................. $(34,176) =====
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 21.20% of total net assets as of October 31, 2002. (e) Security sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, this issue is deemed to be liquid. The aggregate value of this security as of October 31, 2002, was $311, which represents .16% of total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements.
The accompanying notes are an integral part of this financial statement. 35 THE HARTFORD GLOBAL TECHNOLOGY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 98.7% SERVICES -- 10.0% @81 Accenture Ltd. Class A(a)......................... $ 1,372 @139 Cendant Corp.(a).................................. 1,601 @29 CheckFree Corp.(a)................................ 475 72 Sun Microsystems, Inc. (with rights)(a)........... 213 ------- 3,661 ------- TECHNOLOGY -- 88.7% 273 Agere Systems, Inc. Class A(a).................... 238 259 Agere Systems, Inc. Class B(a).................... 241 107 AOL Time Warner, Inc. (with rights)(a)............ 1,584 @26 ATI Technologies, Inc. ADR(a)..................... 167 27 Broadcom Corp. Class A(a)......................... 328 209 Cisco Systems, Inc. (with rights)(a).............. 2,339 50 Concord EFS, Inc.(a).............................. 713 41 Dell Computer Corp. (with rights)(a).............. 1,164 18 Emulex Corp.(a)................................... 316 28 Fairchild Semiconductor Corp. Class A(a).......... 337 68 First Data Corp. ................................. 2,369 114 Hewlett-Packard Co. .............................. 1,796 94 Intel Corp. ...................................... 1,631 23 International Business Machines Corp. ............ 1,847 21 Intersil Corp. Class A(a)......................... 360 40 J.D. Edwards & Co. (with rights)(a)............... 479 @20 Lexmark International, Inc. (with rights)(a)................................ 1,200 346 Maxtor Corp.(a)................................... 1,301 84 Microsoft Corp.(a)................................ 4,492 57 Nokia Oyj ADR..................................... 942 @70 OmniVision Technologies, Inc.(a).................. 788 223 Oracle Corp. (with rights)(a)..................... 2,283 @14 QLogic Corp. (with rights)(a)..................... 473 20 QUALCOMM, Inc.(a)................................. 694 45 RF Micro Devices, Inc. (with rights)(a)........... 383 61 Sabre Holdings Corp.(a)........................... 1,177 6 Samsung Electronics Co. Ltd. ..................... 814 @71 STMicroelectronics N.V............................ 1,389 73 VeriSign, Inc. (with rights)(a)................... 587 ------- 32,432 ------- Total common stock (cost $40,498)................. $36,093 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 4.1% FINANCE -- 4.1% $1,501 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 1,501 ------- Total short-term investments (cost $1,501)................................... $ 1,501 ======= Total investments in securities (cost $41,999)(b)............................... $37,594 =======
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............... $ 37,594 Collateral for securities lending transactions (Note 2d)....................................... 4,325 Receivables: Investment securities sold...................... 974 Fund shares sold................................ 57 Other assets...................................... 10 -------- Total assets...................................... 42,960 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........................................... 4,325 Investment securities purchased................. 1,994 Fund shares redeemed............................ 31 Payable for investment management and advisory fees (Note 3)................................. 28 Payable for distribution fees (Note 3).......... 4 Accrued Expenses................................ 15 -------- Total liabilities................................. 6,397 -------- Net assets........................................ $ 36,563 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 12,393 shares outstanding....................... $113,840 Accumulated net realized loss on investments...... (72,872) Unrealized depreciation of investments in securities...................................... (4,405) -------- Net assets........................................ $ 36,563 ========
Class A Net asset value per share ($18,321 / 6,152 shares outstanding)................................... $2.98 ===== Maximum offering price per share( $2.98 / 94.5%)................................. $3.15 ===== Class B Net asset value per share ($8,170 / 2,799 shares outstanding)................................... $2.92 ===== Class C Net asset value per share ($9,560 / 3,272 shares outstanding)................................... $2.92 ===== Maximum offering price per share ($2.92 / 99.0%)................................ $2.95 ===== Class Y Net asset value per share ($512 / 170 shares outstanding)................................... $3.01 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $44,536 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 2,356 Unrealized depreciation...................... (9,298) ------- Net unrealized depreciation.................. $(6,942) =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 9.06% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements.
The accompanying notes are an integral part of this financial statement. 36 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 98.0% AUSTRALIA -- 4.5% 55 Australian Pipeline Trust (Pipeline Transportation)................................. $ 81 60 Computershare Ltd. (Computer and Electronic Product Manufacturing).......................... 74 102 David Jones Ltd. (Retail Trade)................... 61 11 Santos Ltd. (Pipeline Transportation)............. 37 16 Southern Cross Broadcasting Ltd. (Arts, Entertainment, and Recreation).................. 80 ------ 333 ------ BRAZIL -- 0.2% 8 Companhia de Concessoes Rodoviarias(a) (Support Activities for Transportation).................. 12 ------ DENMARK -- 2.5% 6 Novozymes A/S Class B (Health Care and Social Assistance)..................................... 100 2 Radiometer A/S Class B (Health Care and Social Assistance)..................................... 82 ------ 182 ------ FINLAND -- 1.3% 7 Pohjola Group plc (Finance and Insurance)......... 92 ------ FRANCE -- 12.5% 2 Camaieu (Retail Trade)............................ 61 3 Cegedim S.A. (Professional, Scientific, and Technical Services)............................. 83 1 Cegid (Computer and Electronic Product Manufacturing).................................. 25 @5 Clarins S.A. (Miscellaneous Manufacturing)........ 151 1 Dassault Systemes S.A. (Information).............. 27 1 Eiffage S.A. (Construction)....................... 106 15 Generale de Sante(a) (Health Care and Social Assistance)..................................... 150 8 NRJ Group (Arts, Entertainment, and Recreation)... 133 4 Societe Bic S.A. (Wholesale Trade)................ 120 @2 Wavecom S.A.(a) (Information)..................... 62 ------ 918 ------ GERMANY -- 4.3% 8 GfK AG (Professional, Scientific, and Technical Services)....................................... 107 2 Hornbach Holding AG (Retail Trade)................ 81 7 Jungheinrich AG (Machinery Manufacturing)......... 56 23 MWG-Biotech AG(a) (Health Care and Social Assistance)..................................... 14 3 Vossloh AG (Electrical Equipment, Appliance Manufacturing).................................. 60 ------ 318 ------
MARKET SHARES VALUE(C) - --------- -------- HONG KONG -- 3.5% 490 Bejing Capital International Airport Co. Ltd. (Air Transportation)................................. $ 104 146 Cosco Pacific Ltd. (Transportation Equipment Manufacturing).................................. 117 @134 Tingyi Holding Corp. (Food Manufacturing)......... 37 ------ 258 ------ ITALY -- 6.8% @30 Banca Popolare di Milano Scrl (Finance and Insurance)...................................... 105 @15 Caltagirone Editore S.p.A. (Arts, Entertainment, and Recreation)................................. 84 7 Ericsson S.p.A. (Computer and Electronic Product Manufacturing).................................. 137 16 Mondadori (Arnoldo) Editore S.p.A. (Arts, Entertainment, and Recreation).................. 98 14 Saipem S.p.A. (Construction)...................... 75 ------ 499 ------ JAPAN -- 30.5% @8 Alpine Electronics, Inc. (Computer and Electronic Product Manufacturing).......................... 93 11 Banyu Pharmaceutical Co. Ltd. (Health Care and Social Assistance).............................. 101 1 BML, Inc. (Health Care and Social Assistance)..... 27 @21 Chugoku Bank Ltd. (Finance and Insurance)......... 127 5 FUJIMI, Inc. (Nonmetallic Mineral Product Manufacturing).................................. 99 30 Higo Bank Ltd. (Finance and Insurance)............ 115 11 Hokuetsu Paper Mills Ltd. (Arts, Entertainment, and Recreation)................................. 59 4 Hutech Norin Co. Ltd. (Truck Transportation)...... 44 19 INES Corp. (Arts, Entertainment, and Recreation)..................................... 104 18 Kikkoman Corp. (Food Manufacturing)............... 107 8 Kirin Beverage Corp. (Beverage and Tobacco Product Manufacturing).................................. 136 6 Kissei Pharmaceutical Co. Ltd. (Health Care and Social Assistance).............................. 72 @45 Meiji Seika Kaisha Ltd. (Food Manufacturing)...... 113 39 Mitsui-Soko Co. Ltd (Support Activities for Transportation)................................. 72 9 N.I.C. Corp. (Professional, Scientific, and Technical Services)............................. 120 5 Nagaileben Co. Ltd (Apparel Manufacturing)........ 108 @31 Nippon Shinyaku Co. Ltd. (Health Care and Social Assistance)..................................... 141 @10 Santen Pharmaceutucal Co. Ltd. (Health Care and Social Assistance).............................. 91 7 Shimano, Inc. (Arts, Entertainment, and Recreation)..................................... 109
The accompanying notes are an integral part of this financial statement. 37 THE HARTFORD INTERNATIONAL SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) JAPAN -- (CONTINUED) @10 SRL, Inc. (Health Care and Social Assistance)..... $ 82 10 Towa Pharmaceutical Co. Ltd. (Health Care and Social Assistance).............................. 135 5 Tsuruha Co. Ltd. (Retail Trade)................... 109 3 Tsutsumi Jewelry Co. Ltd. (Retail Trade).......... 73 ------ 2,237 ------ NETHERLANDS -- 4.3% 2 IHC Caland N.V. (Machinery Manufacturing)......... 100 8 SNT Groep N.V.(a) (Management of Companies and Enterprises).................................... 115 5 Volker Wessels Stevin N.V. (Construction)......... 102 ------ 317 ------ NEW ZEALAND -- 0.9% 36 Tower Ltd. (Finance and Insurance)................ 63 ------ PORTUGAL -- 1.8% 19 Vodafone Telecel-Comunicacoes Pessoais S.A. (Information)................................... 132 ------ SINGAPORE -- 1.0% 17 Fraser & Neave Ltd. (Beverage and Tobacco Product Manufacturing).................................. 74 ------ SOUTH KOREA -- 4.1% 1 Cheil Communications, Inc. (Professional, Scientific, and Technical Services)............. 65 19 Koram Bank(a) (Finance and Insurance)............. 121 1 Nong Shim Co. Ltd. (Wholesale Trade).............. 55 @@ Shinsegae Co. Ltd. (Retail Trade)................. 59 ------ 300 ------ SPAIN -- 1.7% 34 Telefonica Publicidad e Informacion S.A. (Professional, Scientific, and Technical Services)....................................... 122 ------ SWEDEN -- 4.5% 13 Alfa Laval AB(a) (Fabricated Metal Product Manufacturing).................................. 97 3 Autoliv, Inc. (Motor Vehicle & Parts Manufacturing).................................. 58 19 Eniro AB (Arts, Entertainment, and Recreation).... 114 14 Intrum Justitia AB(a) (Management of Companies and Enterprises).................................... 61 ------ 330 ------
MARKET SHARES VALUE(C) - --------- -------- UNITED KINGDOM -- 13.6% 26 Abbot Group plc (Miscellaneous Manufacturing)..... $ 57 26 Alvis plc (Miscellaneous Manufacturing)........... 60 81 Arm Holdings plc(a) (Computer and Electronic Product Manufacturing).......................... 72 5 Cobham plc (Miscellaneous Manufacturing).......... 72 27 Croda International plc (Chemical Manufacturing).................................. 112 47 Informa Group plc (Information)................... 111 29 Logica plc (Professional, Scientific, and Technical Services)............................. 72 @8 NDS Group plc ADR(a) (Information)................ 60 7 Oxford Glycosciences plc(a) (Health Care and Social Assistance).............................. 17 50 RM plc (Educational Services)..................... 47 64 Securicor plc (Public Administration)............. 105 55 Shanks Group plc (Administrative Waste Management and Remediation)................................ 67 21 St. James's Place Capital plc (Finance and Insurance)...................................... 40 10 Ultra Electronics Holdings plc (Electrical Equipment, Appliance Manufacturing)............. 69 9 UMECO plc (Miscellaneous Manufacturing)........... 37 ------ 998 ------ Total common stock (cost $7,780).................. $7,185 ====== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 1.9% FINANCE -- 1.9% $142 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Finance and Insurance) (Note 2f)............................................. $ 142 ------ Total short-term investments (cost $142).......... $ 142 ====== Total investments in securities (cost $7,922)(b)...................................... $7,327 ======
The accompanying notes are an integral part of this financial statement. 38 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value.............. $7,327 Collateral for securities lending transactions (Note 2d)...................................... 630 Receivables: Investment securities sold..................... 143 Fund shares sold............................... 2 Dividends and interest......................... 24 Other assets..................................... 19 ------ Total assets..................................... 8,145 ------ LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).......................................... 630 Investment securities purchased................ 147 Payable for investment management and advisory fees (Note 3)................................ 6 Accrued Expenses............................... 10 ------ Total liabilities................................ 793 ------ Net assets....................................... $7,352 ======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 879 shares outstanding......................... $ 8,528 Accumulated undistributed net investment income......................................... 18 Accumulated net realized loss on investments and foreign currency transactions.................. (599) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.... (595) -------- Net assets....................................... $ 7,352 ========
Class A Net asset value per share ($4,598 / 549 shares outstanding)................................... $8.37 ===== Maximum offering price per share ($8.37 / 94.5%)................................ $8.86 ===== Class B Net asset value per share ($926 / 111 shares outstanding)................................... $8.34 ===== Class C Net asset value per share ($859 / 104 shares outstanding)................................... $8.28 ===== Maximum offering price per share ($8.28 / 99.0%)................................ $8.36 ===== Class Y Net asset value per share ($969 / 115 shares outstanding)................................... $8.43 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $8,116 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 182 Unrealized depreciation...................... (971) ----- Net unrealized depreciation.................. $(789) =====
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- British Pounds (Buy) $ 27 $ 27 11/01/2002 $ -- Euro (Buy) 26 26 11/05/2002 -- Japanese Yen (Buy) 63 63 11/05/2002 -- Japanese Yen (Buy) 30 30 11/06/2002 -- Swiss Francs (Sell) (2) (2) 11/01/2002 -- Euro (Sell) (6) (6) 11/01/2002 -- British Pounds (Sell) (52) (52) 11/01/2002 -- Hong Kong Dollar (Sell) (19) (19) 11/04/2002 -- British Pounds (Sell) (23) (23) 11/04/2002 -- British Pounds (Sell) (21) (21) 11/05/2002 -- Australian Dollar (Sell) (19) (19) 11/06/2002 -- ---- $ -- ====
The accompanying notes are an integral part of this financial statement. 39 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 98.1% BASIC MATERIALS -- 2.8% @25 Cabot Microelectronics Corp.(a)................... $ 1,121 13 Cambrex Corp. .................................... 353 34 Crompton Corp. (with rights)...................... 227 23 Schweitzer-Mauduit International, Inc. ........... 578 35 Shaw Group, Inc. (with rights)(a)................. 528 97 Stillwater Mining Co. (with rights)(a)............ 778 -------- 3,585 -------- CAPITAL GOODS -- 2.2% 46 Axcelis Technologies, Inc.(a)..................... 246 48 Callaway Golf Co. ................................ 586 14 DuPont Photomasks, Inc. (with rights)(a).......... 301 14 Graco, Inc. (with rights)......................... 391 77 Mattson Technology, Inc.(a)....................... 154 24 Moog, Inc. Class A(a)............................. 627 @38 Nautilus Group, Inc.(a)........................... 529 -------- 2,834 -------- CONSUMER CYCLICAL -- 14.4% 76 AFC Enterprises, Inc.(a).......................... 1,387 39 AnnTaylor Stores Corp. (with rights)(a)........... 914 13 CEC Entertainment, Inc.(a)........................ 364 68 Chico's FAS, Inc.(a).............................. 1,303 32 Columbia Sportswear Co.(a)........................ 1,291 43 Furniture Brands International, Inc. (with rights)(a)...................................... 968 33 Genesco, Inc. (with rights)(a).................... 531 15 Granite Construction, Inc. ....................... 242 41 Hollywood Entertainment Corp.(a).................. 802 38 Hot Topic, Inc.(a)................................ 741 51 J. Jill Group, Inc.(a)............................ 1,093 66 Owens & Minor, Inc. .............................. 972 58 Pacific Sunwear of California, Inc.(a)............ 1,367 51 PolyMedica Corp.(a)............................... 1,434 36 RARE Hospitality International, Inc.(a)........... 958 21 Reebok International Ltd. (with rights)(a)........ 590 21 Sonic Corp.(a).................................... 491 407 SONICblue, Inc.(a)................................ 167 53 Too, Inc. (with rights)(a)........................ 1,333 89 Tweeter Home Entertainment Group, Inc.(a) ........ 698 76 Vans, Inc.(a)..................................... 350 48 Wild Oats Markets, Inc.(a)........................ 540 -------- 18,536 -------- CONSUMER STAPLES -- 2.0% 35 Constellation Brands, Inc. Class A(a)............. 897 32 Hain Celestial Group, Inc.(a)..................... 457 50 Sensient Technologies Corp. ...................... 1,220 -------- 2,574 -------- ENERGY -- 3.6% 38 Cabot Oil & Gas Corp. ............................ 842 86 Chesapeake Energy Corp. (with rights)............. 602 78 Global Power Equipment Group, Inc.(a)............. 322 44 Patina Oil & Gas Corp. (with rights).............. 1,291
MARKET SHARES VALUE(C) - --------- -------- ENERGY -- (CONTINUED) 31 Unit Corp.(a)..................................... $ 604 39 XTO Energy, Inc. (with rights).................... 946 -------- 4,607 -------- FINANCE AND INSURANCE -- 15.6% 18 American Capital Strategies Ltd. ................. 362 33 AMERIGROUP Corp.(a)............................... 973 40 Arden Realty, Inc. (REIT)......................... 858 37 Brookline Bancorp, Inc. .......................... 417 26 Camden Property Trust (REIT)...................... 802 34 Chelsea Property Group, Inc. ..................... 1,100 25 Citizens Banking Corp. (with rights).............. 606 83 Clark/Bardes, Inc.(a)............................. 1,406 25 Downey Financial Corp. ........................... 964 12 Financial Federal Corp.(a)........................ 333 35 FNB Corp. ........................................ 997 15 Hancock Holding Co. .............................. 725 25 Hanmi Financial Corp.(a).......................... 378 68 Investment Technology Group, Inc. (with rights)(a)...................................... 2,164 16 Jefferies Group, Inc. ............................ 662 @50 Metris Companies, Inc............................. 143 147 NetBank, Inc. (with rights)(a).................... 1,448 9 Pacific Northwest Bancorp......................... 214 27 People's Bank..................................... 664 24 PS Business Parks, Inc. .......................... 751 65 Reinsurance Group of America, Inc. ............... 1,781 38 Staten Island Bancorp, Inc. ...................... 700 19 Sun Communities, Inc. (REIT)...................... 640 8 Texas Regional Bancshares, Inc. Class A........... 251 20 Whitney Holding Corp. ............................ 669 -------- 20,008 -------- HEALTH CARE -- 15.6% 54 Abgenix, Inc. (with rights)(a).................... 364 55 Amylin Pharmaceuticals, Inc.(a)................... 958 15 Cephalon, Inc.(a)................................. 774 198 Ciphergen Biosystems, Inc.(a)..................... 580 42 CONMED Corp.(a)................................... 824 26 Coventry Health Care, Inc. (with rights)(a)....... 867 48 CV Therapeutics, Inc. (with rights)(a)............ 1,142 30 Edwards Lifesciences Corp.(a)..................... 781 29 Gene Logic, Inc.(a)............................... 223 156 Genzyme Corp. -- Genzyme Biosurgery Division(a)... 342 129 Genzyme Molecular Oncology(a)..................... 272 80 Guilford Pharmaceuticals, Inc.(a)................. 402 34 ILEX Oncology, Inc. (with rights)(a).............. 212 171 Incyte Genomics, Inc.(a).......................... 846 55 MedCath Corp.(a).................................. 624 14 Neurocrine Biosciences, Inc.(a)................... 642 33 Neurogen Corp.(a)................................. 217 25 NPS Pharmaceuticals, Inc.(a)...................... 644 32 Ocular Sciences, Inc.(a).......................... 694 30 OSI Pharmaceuticals, Inc. (with rights)(a)........ 514 70 Perrigo Co.(a).................................... 877 60 Pharmacopeia, Inc.(a)............................. 588
The accompanying notes are an integral part of this financial statement. 40 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) HEALTH CARE -- (CONTINUED) 128 PRAECIS Pharmaceuticals, Inc. (with rights)(a).... $ 349 59 Regeneron Pharmaceutical, Inc.(a)................. 891 33 Respironics, Inc.(a).............................. 1,067 54 SangStat Medical Corp.(a)......................... 998 @192 Sequenom, Inc. (with rights)(a)................... 447 236 Triangle Pharmaceuticals, Inc. (with rights)(a)... 780 62 Vertex Pharmaceuticals, Inc.(a)................... 1,212 42 Viasys Healthcare, Inc. (with rights)(a).......... 677 -------- 19,808 -------- SERVICES -- 17.1% 63 Argosy Gaming Co.(a).............................. 1,269 40 Beasley Broadcast Group, Inc. Class A(a).......... 511 19 Black Box Corp.(a)................................ 803 28 Caminus Corp.(a).................................. 70 32 Cerner Corp.(a)................................... 1,157 37 CheckFree Corp.(a)................................ 599 8 Cognizant Technology Solutions Corp.(a)........... 516 100 Exelixis, Inc.(a)................................. 496 166 Gartner, Inc. Class A(a).......................... 1,327 222 Hollywood Media Corp.(a).......................... 285 151 IDX Systems Corp.(a).............................. 2,343 90 ITT Educational Services, Inc.(a)................. 1,964 34 Jacobs Engineering Group, Inc.(a)................. 1,039 14 Lee Enterprises, Inc. (with rights)............... 464 23 MAXIMUS, Inc.(a).................................. 461 62 Mentor Graphics Corp. (with rights)(a)............ 588 105 Molecular Devices Corp. (with rights)(a).......... 1,419 57 Per-Se Technologies, Inc.(a)...................... 486 @54 Pre-Paid Legal Services, Inc.(a).................. 1,153 60 PRG-Schultz International, Inc.(a)................ 560 101 Radiant Systems, Inc.(a).......................... 1,093 123 Right Management Consultants, Inc.(a)............. 1,617 20 Stratos Lightwave, Inc. (with rights)(a).......... 109 292 UnitedGlobalCom, Inc. Class A(a).................. 552 17 Viad Corp. ....................................... 336 34 Watson Wyatt & Co. Holdings, Inc.(a).............. 672 -------- 21,889 -------- TECHNOLOGY -- 21.1% 80 Aclara BioSciences, Inc. (with rights)(a)......... 155 57 Actel Corp.(a).................................... 929 24 Activision, Inc.(a)............................... 498 255 Actuate Corp.(a).................................. 464 73 Agile Software Corp. (with rights)(a)............. 495 20 Benchmark Electronics, Inc. (with rights)(a)...... 456 152 Cirrus Logic, Inc.(a)............................. 502 25 Credence Systems Corp. (with rights)(a)........... 208 28 CSG Systems International, Inc.(a)................ 367 27 Cymer, Inc.(a).................................... 671
MARKET SHARES VALUE(C) - --------- -------- TECHNOLOGY -- (CONTINUED) 15 DRS Technologies, Inc.(a)......................... $ 497 63 Electronics for Imaging, Inc.(a).................. 1,141 38 Emulex Corp.(a)................................... 691 29 Exar Corp.(a)..................................... 365 119 Extreme Networks, Inc. (with rights)(a)........... 502 57 FileNET Corp.(a).................................. 614 42 Fisher Scientific International, Inc.(a).......... 1,213 18 FLIR Systems, Inc.(a)............................. 871 130 General Communication, Inc. Class A(a)............ 603 28 Helix Technology Corp. ........................... 281 26 IDT Corp.(a)...................................... 456 27 IDT Corp. Class B(a).............................. 427 20 Intrado, Inc.(a).................................. 193 39 J.D. Edwards & Co. (with rights)(a)............... 466 26 Kronos, Inc.(a)................................... 943 120 Manufacturers' Services Ltd.(a)................... 515 238 Maxtor Corp.(a)................................... 894 329 MRV Communications, Inc.(a)....................... 372 63 Powerwave Technologies, Inc. (with rights)(a)..... 290 147 Quovadx, Inc.(a).................................. 228 44 Rayovac Corp.(a).................................. 627 47 REMEC, Inc. (with rights)(a)...................... 151 16 Roper Industries, Inc. ........................... 606 73 Roxio, Inc. (with rights)(a)...................... 224 185 RSA Security, Inc.(a)............................. 825 30 SanDisk Corp.(a).................................. 583 73 Silicon Storage Technology, Inc.(a)............... 326 161 Sycamore Networks, Inc.(a)........................ 402 122 Tekelec(a)........................................ 1,060 155 TeleCommunication Systems, Inc. Class A(a)........ 276 40 Therma-Wave, Inc.(a).............................. 25 189 Trizetto Group, Inc. (with rights)(a)............. 1,149 131 US Unwired, Inc.(a)............................... 58 57 Varian, Inc. (with rights)(a)..................... 1,665 55 Veeco Instruments, Inc.(a)........................ 664 26 Verity, Inc.(a)................................... 234 164 Vignette Corp. (with rights)(a)................... 174 307 Visual Networks, Inc.(a).......................... 268 238 Western Digital Corp. (with rights)(a)............ 1,476 -------- 27,100 -------- TRANSPORTATION -- 3.7% 94 AirTran Holdings, Inc.(a)......................... 356 55 Atlantic Coast Airlines Holdings, Inc. (with rights)(a)...................................... 727 18 ExpressJet Holdings, Inc.(a)...................... 202 25 Kansas City Southern(a)........................... 353 9 Landstar System, Inc.(a).......................... 444 12 Polaris Industries, Inc. (with rights)............ 787 12 SCS Transportation, Inc.(a)....................... 112 18 USFreightways Corp. .............................. 520
The accompanying notes are an integral part of this financial statement. 41 THE HARTFORD SMALLCAP GROWTH FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- (CONTINUED) 30 Werner Enterprises, Inc. ......................... $ 607 25 Yellow Corp.(a)................................... 681 -------- 4,789 -------- Total common stock (cost $164,659)................ $125,730 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 1.5% FINANCE -- 1.5% $1,457 Repurchase Agreement, 1.88%, 11-01-2002 (Note 2f)..................... $ 1,457 4 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. 4 450 U.S. Treasury Bill, 1.57%, 01/09/2003(e).......... 449 ======== Total short-term investments (cost $1,910)................................... $ 1,910 ======== Total investments in securities (cost $166,569)(b).............................. $127,640 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $127,640 Cash............................................ 1 Collateral for securities lending transactions (Note 2)...................................... 3,741 Receivables: Investment securities sold.................... 761 Fund shares sold.............................. 62 Dividends and interest........................ 36 Other assets.................................... 47 -------- Total assets.................................... 132,288 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2).......................................... 3,741 Investment securities purchased............... 111 Fund shares redeemed.......................... 88 Payable for investment management and advisory fees (Note 3)............................... 99 Payable for distribution fees (Note 3)........ 14 Accrued Expenses.............................. 23 Variation Margin Payable...................... 6 -------- Total liabilities............................... 4,082 -------- Net assets...................................... $128,206 ======== SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 8,445 shares outstanding...................... $248,635 Accumulated net realized loss on investments.... (81,474) Unrealized depreciation of investments in securities.................................... (38,955) -------- Net assets...................................... $128,206 ========
Class A Net asset value per share ($3,457 / 222 shares outstanding).................................. $15.57 ====== Maximum offering price per share ($15.57 / 94.5%).............................. $16.48 ====== Class B Net asset value per share ($1,756 / 122 shares outstanding).................................. $14.36 ====== Class C Net asset value per share ($1,432 / 100 shares outstanding).................................. $14.35 ====== Maximum offering price per share ($14.35 / 99.0%).............................. $14.49 ====== Class H Net asset value per share ($16,675 / 1,161 shares outstanding)........................... $14.37 ====== Class L Net asset value per share ($86,414 / 5,554 shares outstanding)........................... $15.56 ====== Maximum offering price per share ($15.56 / 95.25%)............................. $16.34 ====== Class M Net asset value per share ($13,714 / 955 shares outstanding).................................. $14.36 ====== Class N Net asset value per share ($4,757 / 331 shares outstanding).................................. $14.37 ====== Class Y Net asset value per share ($1 / @@ shares outstanding).................................. $15.61 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $167,311 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation..................... $ 8,756 Unrealized depreciation..................... (48,427) -------- Net unrealized depreciation................. $(39,671) ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Security pledged as initial margin deposit for 6 open Russell 2000 Index December 2002 long futures contracts. As of October 31, 2002, these contracts had a value of $1,121 with unrealized depreciation of $26. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 42 THE HARTFORD SMALL COMPANY FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 94.5% BASIC MATERIALS -- 2.7% 230 Crompton Corp. (with rights)...................... $ 1,522 124 Harmony Gold Mining Co. Ltd. ..................... 1,620 85 IMC Global, Inc. (with rights).................... 935 112 PolyOne Corp. .................................... 897 -------- 4,974 -------- CAPITAL GOODS -- 8.1 % 110 AGCO Corp.(a)..................................... 2,800 49 DALSA Corp.(a).................................... 537 55 Leapfrog Enterprises, Inc.(a)..................... 1,498 @118 Multimedia Games, Inc.(a)......................... 2,609 151 Pall Corp. (with rights).......................... 2,616 162 Rudolph Technologies, Inc.(a)..................... 2,763 307 Scientific Games Corp.(a)......................... 2,342 -------- 15,165 -------- CONSUMER CYCLICAL -- 7.3 % 145 A.C. Moore Arts & Crafts, Inc.(a)................. 2,288 114 Chicago Pizza & Brewery, Inc.(a).................. 949 15 Granite Construction, Inc. ....................... 244 189 Hollywood Entertainment Corp.(a).................. 3,714 36 J. Jill Group, Inc.(a)............................ 781 46 O'Reilly Automotive, Inc. (with rights)(a)........ 1,258 70 Pacific Sunwear of California, Inc.(a)............ 1,638 44 Panera Bread Co. Class A(a)....................... 1,419 84 Steven Madden Ltd. (with rights)(a)............... 1,432 -------- 13,723 -------- CONSUMER STAPLES -- 4.8% 135 Bunge Ltd. ....................................... 3,422 100 Interstate Bakeries Corp. (with rights)........... 2,492 128 Peet's Coffee & Tea, Inc.(a)...................... 1,847 179 Swedish Match AB.................................. 1,289 -------- 9,050 -------- ENERGY -- 7.7% 382 Chesapeake Energy Corp. (with rights)............. 2,667 46 Cimarex Energy Co.(a)............................. 725 107 ElkCorp (with rights)............................. 1,682 64 Helmerich & Payne, Inc. .......................... 1,826 84 Patina Oil & Gas Corp. (with rights).............. 2,453 124 Willbros Group, Inc. (with rights)(a)............. 919 170 XTO Energy, Inc. (with rights).................... 4,092 -------- 14,364 --------
MARKET SHARES VALUE(C) - --------- -------- FINANCE AND INSURANCE -- 11.3% 119 AMERIGROUP Corp.(a)............................... $ 3,461 80 Arch Capital Group Ltd.(a)........................ 2,252 49 Camden Property Trust (REIT)...................... 1,522 72 Chelsea Property Group, Inc. ..................... 2,342 78 Federated Investors, Inc. Class B................. 2,095 44 First Niagara Financial Group, Inc. .............. 1,332 51 FNB Corp. ........................................ 1,480 436 HealthExtras, Inc.(a)............................. 1,656 74 Investment Technology Group, Inc. (with rights)(a)...................................... 2,369 69 iShares Russell 2000 Growth Index Fund............ 2,708 -------- 21,217 -------- HEALTH CARE -- 16.5% 179 Abgenix, Inc. (with rights)(a).................... 1,218 60 AmSurg Corp. (with rights)(a)..................... 1,680 204 Array BioPharma, Inc. (with rights)(a)............ 1,696 53 Coventry Health Care, Inc. (with rights)(a)....... 1,763 @79 CV Therapeutics, Inc. (with rights)(a)............ 1,888 132 Edwards Lifesciences Corp.(a)..................... 3,402 76 Human Genome Sciences, Inc. (with rights)(a)...... 741 @42 InterMune, Inc.(a)................................ 1,525 105 NPS Pharmaceuticals, Inc.(a)...................... 2,724 217 Option Care, Inc.(a).............................. 1,694 78 Orthofix International N.V.(a).................... 1,978 210 Quintiles Transnational Corp. (with rights)(a).... 2,263 140 SangStat Medical Corp.(a)......................... 2,609 170 STERIS Corp.(a)................................... 4,510 65 Vertex Pharmaceuticals, Inc.(a)................... 1,280 -------- 30,971 -------- SERVICES -- 9.9% @148 Administaff, Inc.(a).............................. 899 186 AMC Entertainment, Inc.(a)........................ 1,313 25 AMN Healthcare Services, Inc.(a).................. 359 71 Business Objects S.A. ADR(a)...................... 1,051 34 Cerner Corp.(a)................................... 1,210 94 Cumulus Media, Inc. Class A(a).................... 1,615 18 Entercom Communications Corp.(a).................. 888 34 G & K Services, Inc. Class A (with rights)........ 1,076 158 Moore Corp. Ltd.(a)............................... 1,751 185 Pinnacle Systems, Inc.(a)......................... 2,195 @212 PracticeWorks, Inc.(a)............................ 1,115 @197 Station Casinos, Inc.(a).......................... 3,538 32 VCA Antech, Inc.(a)............................... 484 83 Wynn Resorts Ltd.(a).............................. 1,050 -------- 18,544 --------
The accompanying notes are an integral part of this financial statement. 43 THE HARTFORD SMALL COMPANY FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- 21.2% 763 Actuate Corp.(a).................................. $ 1,388 520 ASE Test Ltd. ADR(a).............................. 2,215 244 Borland Software Corp. (with rights)(a)........... 3,278 126 Cognex Corp.(a)................................... 2,396 72 Cognos, Inc.(a)................................... 1,430 22 DENTSPLY International, Inc. ..................... 808 154 Fairchild Semiconductor Corp. Class A(a).......... 1,835 37 Harman International Industries, Inc. (with rights)......................................... 2,099 131 Hyperion Solutions Corp. (with rights)(a)......... 3,532 226 J.D. Edwards & Co. (with rights)(a)............... 2,675 267 Networks Associates, Inc.(a)...................... 4,240 336 Nextel Partners, Inc. Class A(a).................. 2,390 188 OraSure Technologies, Inc. (with rights)(a)....... 954 262 Pericom Semiconductor Corp.(a).................... 2,250 220 Rational Software Corp.(a)........................ 1,456 25 Teledyne Technologies, Inc.(a).................... 358 49 Varian, Inc. (with rights)(a)..................... 1,431 231 VeriSign, Inc. (with rights)(a)................... 1,860 516 Western Digital Corp. (with rights)(a)............ 3,192 -------- 39,787 -------- TRANSPORTATION -- 5.0% 69 CNF, Inc. ........................................ 2,230 40 JetBlue Airways Corp.(a).......................... 1,622 158 Kansas City Southern(a)........................... 2,215 47 SCS Transportation, Inc.(a)....................... 430 102 Yellow Corp.(a)................................... 2,835 -------- 9,332 -------- Total common stock (cost $187,149)................ $177,127 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 3.5% FINANCE -- 3.5% $6,626 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 6,626 -------- Total short-term investments (cost $6,626)................................... $ 6,626 ======== Total investments in securities (cost $193,775)(b).............................. $183,753 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value........... $ 183,753 Collateral for securities lending transactions (Note 2d)................................... 8,347 Receivables: Investment securities sold.................. 8,673 Fund shares sold............................ 137 Dividends and interest...................... 32 Other assets................................ 93 --------- Total assets.................................. 201,035 --------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)................................. 8,347 Investment securities purchased............. 4,591 Fund shares redeemed........................ 370 Payable for investment management and advisory fees (Note 3).................... 132 Payable for distribution fees (Note 3)...... 22 Accrued Expenses............................ 60 --------- Total liabilities............................. 13,522 --------- Net assets.................................... $ 187,513 ========= SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 19,237 shares outstanding................... $ 334,039 Accumulated net realized loss on investments and foreign currency transactions........... (136,504) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.................................... (10,022) --------- Net assets.................................... $ 187,513 =========
Class A Net asset value per share ($96,302 / 9,694 shares outstanding).......................... $ 9.93 ====== Maximum offering price per share ($9.93 / 94.5%).............................. $10.51 ====== Class B Net asset value per share ($41,439 / 4,378 shares outstanding).......................... $ 9.46 ====== Class C Net asset value per share ($38,938 / 4,110 shares outstanding).......................... $ 9.47 ====== Maximum offering price per share ($9.47 / 99.0%).............................. $ 9.57 ====== Class Y Net asset value per share ($10,834 / 1,055 shares outstanding).......................... $10.27 ======
The accompanying notes are an integral part of this financial statement. 44 - -------------------------------------------------------------------------------- (a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $197,320 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $11,031 Unrealized depreciation.................................................. (24,598) ----- Net unrealized depreciation.............................................. $(13,567) =====
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.77% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements.
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- Canadian Dollar (Buy) $ 47 $ 47 11/01/2002 $-- Canadian Dollar (Buy) 213 213 11/04/2002 -- Canadian Dollar (Buy) 134 134 11/05/2002 -- --- $-- ===
The accompanying notes are an integral part of this financial statement. 45 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 96.2% AUSTRALIA -- 2.0% 19 Woolworths Ltd. (Retail Trade).................... $ 132 ------ CANADA -- 5.5% 4 Molson, Inc. Class A (Beverage and Tobacco Product Manufacturing).................................. 73 @@ Nortel Networks(a) (Information).................. 53 @186 Nortel Networks Corp.(a)(Information)............. 229 ------ 355 ------ FINLAND -- 4.9% 19 Nokia Oyj (Computer and Electronic Product Manufacturing).................................. 322 ------ FRANCE -- 13.7% 7 Air France (Air Transportation)................... 87 16 Axa (Finance and Insurance)....................... 234 4 Cie Generale D'Optique Essilor International S.A. (Nonmetallic Mineral Product Manufacturing)..... 145 1 L'Oreal S.A. (Wholesale Trade).................... 89 2 Renault S.A. (Retail Trade)....................... 71 1 Rodriguez Group (Transportation Equipment Manufacturing).................................. 59 1 Total Fina Elf S.A. (Petroleum and Coal Products Manufacturing).................................. 124 2 Union du Credit-Bail Immobilier (Real Estate and Rental and Leasing)............................. 86 ------ 895 ------ GERMANY -- 3.7% @@ Allianz AG (Finance and Insurance)................ 42 2 SAP AG (Information).............................. 146 1 Schering AG (Health Care and Social Assistance)... 51 ------ 239 ------ HONG KONG -- 2.0% 126 China Unicom Ltd.(a) (Information)................ 78 40 CNOOC Ltd. (Petroleum and Coal Products Manufacturing).................................. 50 ------ 128 ------ INDIA -- 1.0% 6 Ranbaxy Laboratories Ltd. GDR (Health Care and Social Assistance).............................. 63 ------ IRELAND -- 1.2% @2 Ryanair Holdings plc ADR(a) (Air Transportation)................................. 78 ------ ITALY -- 2.0% @18 Mediaset S.p.A. (Arts, Entertainment, and Recreation)..................................... 129 ------ JAPAN -- 8.7% 6 Fast Retailing Co. Ltd. (Retail Trade)............ 195 25 Nikko Cordial Corp. (Finance and Insurance)....... 100
MARKET SHARES VALUE(C) - --------- -------- JAPAN -- (CONTINUED) @@ Nintendo Co. Ltd. (Toy Manufacturing)............. $ 39 6 Nissan Motor Co. Ltd. (Motor Vehicle & Parts Manufacturing).................................. 42 8 Nomura Securities Co. Ltd. (Finance and Insurance)...................................... 92 @@ SKY Perfect Communications, Inc.(a) (Information)................................... 31 2 Sony Corp. (Computer and Electronic Product Manufacturing).................................. 65 ------ 564 ------ NETHERLANDS -- 9.2% 17 Aegon N.V. (Finance and Insurance)................ 236 42 Koninklijke (Royal) KPN N.V. (Information)........ 268 @2 STMicroelectronics N.V. (Computer and Electronic Product Manufacturing).......................... 40 @1 Unilever N.V. NY Shares (Food Manufacturing)...... 57 ------ 601 ------ NORWAY -- 3.6% 17 Tandberg ASA (Information)........................ 182 7 Tomra Systems ASA (Machinery Manufacturing)....... 52 ------ 234 ------ RUSSIA -- 2.8% @4 Mining and Metallurgical Co. Norilsk Nickel (Mining)........................................ 71 @1 OAO LUKoil Holdings (Petroleum and Coal Products Manufacturing).................................. 52 @3 Surgutneftegaz ADR (Petroleum and Coal Products Manufacturing).................................. 58 ------ 181 ------ SINGAPORE -- 1.3% @10 Flextronics International Ltd.(a) (Computer and Electronic Product Manufacturing)............... 87 ------ SOUTH KOREA -- 4.4% 3 LG Electronics, Inc.(a) (Wholesale Trade)......... 105 1 Samsung Electronics Co. Ltd. GDR(e) (Computer and Electronic Product Manufacturing)............... 184 ------ 289 ------ SWEDEN -- 4.8% @6 SKF AB B Shares (Fabricated Metal Product Manufacturing).................................. 150 23 Swedish Match AB (Beverage and Tobacco Product Manufacturing).................................. 163 ------ 313 ------
The accompanying notes are an integral part of this financial statement. 46 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) SWITZERLAND -- 6.5% 11 Credit Suisse Group (Finance and Insurance)....... $ 215 @5 Logitech International S.A.(a) (Computer and Electronic Product Manufacturing)............... 151 1 Roche Holding AG (Health Care and Social Assistance)..................................... 60 ------ 426 ------ TAIWAN -- 1.1% 136 China Steel Corp. (Primary Metal Manufacturing)... 73 ------ UNITED KINGDOM -- 15.8% 4 AstraZeneca plc (Health Care and Social Assistance)..................................... 157 12 Capita Group plc (Public Administration).......... 42 101 Carphone Warehouse plc(a) (Information)........... 153 117 COLT Telecom Group plc(a) (Information)........... 59 7 Imperial Tobacco Group plc (Beverage and Tobacco Product Manufacturing).......................... 105 178 mm02 plc(a) (Information)......................... 134 28 P & O Princess Cruises plc (Scenic and Sightseeing Transportation)................................. 202 111 Vodafone Group plc (Information).................. 178 ------ 1,030 ------ UNITED STATES -- 2.0% @5 Bunge Ltd. (Food Manufacturing)................... 129 ------ Total Common Stock (cost $5,947).................. $6,268 ====== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 3.0% $195 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f) (Finance and Insurance)...................................... $ 195 ------ Total Short-Term Investments (cost $195).......... $ 195 ====== Total Investments in Securities (cost $6,142)(b)...................................... $6,463 ======
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value.............. $6,463 Cash............................................. 1 Collateral for securities lending transactions (Note 2d)...................................... 885 Receivables: Investment securities sold..................... 132 Fund shares sold............................... 5 Dividends and interest......................... 6 Other assets..................................... 1 ------ Total assets..................................... 7,493 ------ LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).......................................... 885 Investment securities purchased................ 47 Fund shares redeemed........................... 28 Payable for investment management and advisory fees (Note 3)................................ 5 Payable for distribution fees (Note 3)......... 1 Accrued Expenses............................... 13 ------ Total liabilities................................ 979 ------ Net assets....................................... $6,514 ======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 942 shares outstanding......................... $ 8,134 Accumulated undistributed net investment income......................................... 6 Accumulated net realized loss on investments and foreign currency transactions.................. (1,947) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.... 321 ------- Net assets....................................... $ 6,514 =======
Class A Net asset value per share ($4,666 / 673 shares outstanding)................................... $6.93 ===== Maximum offering price per share ($6.93 / 94.5%)................................ $7.33 ===== Class B Net asset value per share ($813 / 119 shares outstanding)................................... $6.86 ===== Class C Net asset value per share ($826 / 120 shares outstanding)................................... $6.86 ===== Maximum offering price per share ($6.86 / 99.0%)................................ $6.93 ===== Class Y Net asset value per share ($209 / 30 shares outstanding)................................... $6.98 =====
The accompanying notes are an integral part of this financial statement. 47 THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- (a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes was $6,291 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 395 Unrealized depreciation...................... (223) ----- Net unrealized appreciation.................. $ 172 =====
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Security sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, this issue is deemed to be liquid. The aggregate value of this security at October 31, 2002, was $184, which represents 2.83% of total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- British Pounds (Sell) $50 $50 11/01/2002 $-- Euro (Sell) 78 78 11/01/2002 -- Japanese Yen (Buy) 43 43 11/01/2002 -- -- $-- ==
The accompanying notes are an integral part of this financial statement. 48 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- 96.6% BASIC MATERIALS -- 8.7% 700 3M Co. ........................................... $ 88,858 888 Agrium, Inc. ..................................... 8,738 595 Alcoa, Inc. ...................................... 13,130 @528 Barrick Gold Corp................................. 7,959 873 Engelhard Corp. (with rights)..................... 19,330 2,556 Gold Fields Ltd. ADR.............................. 28,114 752 Mining and Metallurgical Co. Norilsk Nickel....... 14,906 @199 Potash Corp. of Saskatchewan...................... 13,435 300 Rohm & Haas Co. (with rights)..................... 9,981 @3,157 Sappi Ltd. ADR.................................... 38,710 @3,781 Smurfit-Stone Container Corp.(a).................. 49,196 ---------- 292,357 ---------- CAPITAL GOODS -- 9.3% 2,295 AGCO Corp.(a)..................................... 58,295 @1,913 Callaway Golf Co.................................. 23,413 @627 Cummins, Inc...................................... 15,016 1,000 Deere & Co. (with rights)......................... 46,390 1,329 Empresa Brasileira de Aeronautica S.A. ADR........ 20,843 @1,156 Northrop Grumman Corp. (with rights).............. 119,218 85 Novellus Systems, Inc.(a)......................... 2,680 170 Optical Switch Private Placement(e)............... -- 1,332 Pall Corp. (with rights).......................... 23,142 1,205 Sensable Technology, Inc. Private Placement(e).... 3,205 ---------- 312,202 ---------- CONSUMER CYCLICAL -- 8.6% @282 Advance Auto Parts, Inc.(a)....................... 15,096 @1,900 Autonation, Inc.(a)............................... 20,159 @1,226 Borders Group, Inc.(a)............................ 21,115 @450 Cheesecake Factory, Inc. (with rights)(a)................................ 15,255 750 Chicago Bridge & Iron Co. N.V. ................... 20,325 @1,371 Chico's FAS, Inc.(a).............................. 26,452 @1,477 CSK Auto Corp.(a)................................. 18,310 1,700 Delphi Corp. ..................................... 11,832 600 Dollar General Corp. (with rights)................ 8,376 @2,854 Foster Wheeler Ltd.(a)............................ 4,396 3,400 i2 Technologies, Inc. (with rights)(a)............ 2,652 889 Neiman Marcus Group, Inc. Class A(a).............. 25,876 3,484 OfficeMax, Inc. (with rights)(a).................. 16,478 1,014 Pathmark Stores, Inc.(a).......................... 4,614 1,199 Reebok International Ltd. (with rights)(a)................................ 33,866 300 Target Corp. (with rights)........................ 9,036 1,395 Toyota Motor Corp. ............................... 33,923 ---------- 287,761 ---------- CONSUMER STAPLES -- 2.2% 1,375 Bunge Ltd. ....................................... 34,892 @217 Dean Foods Co.(a)................................. 8,143 1,206 Interstate Bakeries Corp. (with rights)........... 30,054 ---------- 73,089 ----------
MARKET SHARES VALUE(C) - --------- ---------- ENERGY -- 7.6% 400 Amerada Hess Corp. ............................... $ 20,499 715 Burlington Resources, Inc. (with rights).......... 29,458 3,110 Halliburton Co. (with rights)..................... 50,315 6,200 Sasol Ltd. ADR.................................... 68,510 1,433 Valero Energy Corp. .............................. 50,449 600 XTO Energy, Inc. (with rights).................... 14,430 @146 YUKOS ADR......................................... 20,280 ---------- 253,941 ---------- FINANCE AND INSURANCE -- 12.6% @3,080 ACE Ltd. ADR (with rights)........................ 94,710 817 American International Group, Inc. ............... 51,106 200 Bank of America Corp. ............................ 13,960 @1,419 Capital One Financial Corp........................ 43,228 2,738 Citigroup, Inc. .................................. 101,151 2,000 Converium Holding AG ADR(a)....................... 40,040 600 Golden West Financial Corp. ...................... 41,436 989 Merrill Lynch & Co., Inc. ........................ 37,525 ---------- 423,156 ---------- HEALTH CARE -- 12.8% 959 Abbott Laboratories (with rights)................. 40,162 @501 AstraZeneca plc ADR............................... 18,812 875 Becton, Dickinson & Co. (with rights)............. 25,818 446 Boston Scientific Corp.(a)........................ 16,772 900 Bright Horizons Family Solutions, Inc.(a)......................................... 24,345 2,704 HealthSouth Corp.(a).............................. 11,761 509 Lilly (Eli) & Co. (with rights)................... 28,244 2,287 McKesson Corp. ................................... 68,167 1,646 Quintiles Transnational Corp. (with rights)(a).... 17,699 @1,000 Regeneron Pharmaceutical, Inc.(a)................. 15,130 2,312 Schering-Plough Corp. (with rights)............... 49,357 1,308 Shionogi & Co. Ltd. .............................. 15,001 462 Teva Pharmaceutical Industries Ltd. ADR........................................ 35,804 1,049 Vertex Pharmaceuticals, Inc.(a)................... 20,571 1,510 Watson Pharmaceuticals, Inc.(a)................... 41,504 ---------- 429,147 ---------- SERVICES -- 8.7% 500 Clear Channel Communications, Inc.(a)............. 18,525 1,550 Comcast Corp. Special Class A(a).................. 35,665 700 First Health Group Corp. (with rights)(a)......... 18,186 3,855 Liberty Media Corp. Class A(a).................... 31,884 @550 Manpower, Inc..................................... 18,755 @1,074 Omnicom Group, Inc................................ 61,883 @1,426 USA Interactive(a)................................ 36,074 @808 Vivendi Universal S.A. ADR........................ 9,787 2,155 Waste Management, Inc. ........................... 49,617 1,006 Wynn Resorts Ltd.(a).............................. 12,691 ---------- 293,067 ---------- TECHNOLOGY -- 24.4% @76 Agere Systems, Inc. Class A(a).................... 67 2,625 Agile Software Corp. (with rights)(a)............. 17,876
The accompanying notes are an integral part of this financial statement. 49 THE HARTFORD CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 3,663 AOL Time Warner, Inc. (with rights)(a)................................ $ 54,034 600 Applied Biosystems Group -- Applera Corp. ........ 12,138 @2,119 ASML Holding N.V.(a).............................. 18,224 4,900 AT&T Corp. ....................................... 63,899 2,000 Borland Software Corp. (with rights)(a)........... 26,860 4,647 Cisco Systems, Inc. (with rights)(a).............. 51,951 1,876 Concord EFS, Inc.(a).............................. 26,782 600 Dell Computer Corp. (with rights)(a).............. 17,166 600 First Data Corp. ................................. 20,964 1,159 General Electric Co. ............................. 29,275 13,100 Interland, Inc.(a)(e)............................. 15,615 10,287 Nextel Communications, Inc. Class A(a)............ 116,034 1,666 Oracle Corp. (with rights)(a)..................... 17,073 1,535 Pegasystems, Inc.(a).............................. 9,058 @911 QUALCOMM, Inc.(a)................................. 31,444 426 Samsung Electronics............................... 120,613 369 SAP AG............................................ 28,289 24,601 Taiwan Semiconductor Manufacturing Co. Ltd.(a).... 32,915 893 Thermo Electron Corp. (with rights)(a)............ 16,422 @4,094 Time Warner Telecom, Inc. Class A(a).............. 3,643 @4,426 Tyco International Ltd. (with rights)............. 63,999 2,932 VeriSign, Inc. (with rights)(a)................... 23,599 ---------- 817,940 ---------- TRANSPORTATION -- 0.2% 1,400 AirTran Holdings, Inc.(a)......................... 5,320 ---------- UTILITIES -- 1.5% @2,134 CMS Energy Corp................................... 16,712 550 FPL Group, Inc. (with rights)..................... 32,433 ---------- 49,145 ---------- Total common stock (cost $3,601,036).............. $3,237,125 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 4.2% FINANCE -- 4.2% $142,316 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 142,316 ---------- Total short-term investments (cost $142,316)...... $ 142,316 ========== Total investments in securities (cost $3,743,352)(b).................................. $3,379,441 ==========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $3,379,441 Cash........................................................ 250 Foreign currency on deposit with custodian (cost $499)...... 499 Collateral for securities lending transactions (Note 2d).... 200,871 Unrealized appreciation on foreign currency contracts....... 841 Receivables: Investment securities sold................................ 19,275 Fund shares sold.......................................... 6,164 Dividends and interest.................................... 2,021 Other assets................................................ 622 ---------- Total assets................................................ 3,609,984 ---------- LIABILITIES Unrealized depreciation on foreign currency contracts....... 1,738 Payables: Payable upon return of securities loaned (Note 2d)........ 200,871 Investment securities purchased........................... 49,274 Fund shares redeemed...................................... 4,744 Payable for investment management and advisory fees (Note 3)...................................................... 1,845 Payable for distribution fees (Note 3).................... 423 Accrued Expenses.......................................... 1,405 ---------- Total liabilities........................................... 260,300 ---------- Net assets.................................................. $3,349,684 ==========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 625,000 shares authorized; 167,797 shares outstanding............................................... $4,422,901 Accumulated undistributed net investment income............. 897 Accumulated net realized loss on investments and foreign currency transactions..................................... (709,294) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.......................................... (364,820) ---------- Net assets.................................................. $3,349,684 ==========
Class A Net asset value per share ($1,700,765 / 83,067 shares outstanding)........................... $20.47 ====== Maximum offering price per share ($20.47 / 94.5%).............................. $21.66 ====== Class B Net asset value per share ($884,553 / 45,513 shares outstanding)........................... $19.44 ====== Class C Net asset value per share ($738,988 / 38,021 shares outstanding)........................... $19.44 ====== Maximum offering price per share ($19.44 / 99.0%).............................. $19.64 ====== Class Y Net asset value per share ($25,378 / 1,196 shares outstanding)........................... $21.23 ======
The accompanying notes are an integral part of this financial statement. 50 - -------------------------------------------------------------------------------- (a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $3,764,311 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $257,846 Unrealized depreciation.................................................. (642,716) ----- Net unrealized depreciation.............................................. $(384,870) =====
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 17.79% of total net assets as of October 31, 2002. (e) Restricted securities held (excluding 144A). Securities are valued at fair value under guidelines established and approved by the Board of Directors. These investments have been identified by portfolio management as illiquid securities:
PERIOD COST ACQUIRED SHARES SECURITY BASIS -------- ------ ----------------------------- ------- 2002 13,100 Interland, Inc. $16,375 2000 170 Optical Switch Private Placement $ 7,750 2000 1,205 Sensable Technology, Inc. Private Placement $ 4,000
The aggregate fair value of these securities at October 31, 2002, is $18,820 which represents 0.56% of net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- Japanese Yen (Buy) $ 585 $ 580 11/01/2002 $ 5 Japanese Yen (Buy) 733 730 11/05/2002 3 Japanese Yen (Buy) 546 546 11/06/2002 -- Japanese Yen (Buy) 27,221 26,388 12/27/2002 833 Japanese Yen (Sell) 27,221 25,483 12/27/2002 (1,738) ------- $ (897) =======
The accompanying notes are an integral part of this financial statement. 51 THE HARTFORD GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 96.1% CAPITAL GOODS -- 1.6% 209 AGCO Corp.(a)..................................... $ 5,311 93 Novellus Systems, Inc.(a)......................... 2,933 -------- 8,244 -------- CONSUMER CYCLICAL -- 7.3% 304 AnnTaylor Stores Corp. (with rights)(a)........... 7,126 515 Burberry Group plc(a)............................. 1,964 510 Foot Locker, Inc.(a).............................. 4,995 325 Hollywood Entertainment Corp.(a).................. 6,395 211 Mattel, Inc. (with rights)........................ 3,872 339 Pacific Sunwear of California, Inc.(a)............ 7,913 202 Williams-Sonoma, Inc. (a)......................... 4,796 -------- 37,061 -------- CONSUMER STAPLES -- 1.4% 224 Bunge Ltd. ....................................... 5,677 57 Constellation Brands, Inc. Class A(a)............. 1,434 -------- 7,111 -------- FINANCE AND INSURANCE -- 6.7% 89 Anthem, Inc.(a)................................... 5,588 191 Fannie Mae........................................ 12,770 86 Freddie Mac....................................... 5,327 71 Goldman Sachs Group, Inc. ........................ 5,098 130 Merrill Lynch & Co., Inc. ........................ 4,926 -------- 33,709 -------- HEALTH CARE -- 27.9% 117 Abbott Laboratories (with rights)................. 4,903 136 AmerisourceBergen Corp. (with rights)............. 9,648 488 Applera Corp. -- Celera Genomics Group(a)........................................ 4,024 172 Cephalon, Inc.(a)................................. 8,651 344 Edwards Lifesciences Corp.(a)..................... 8,837 27 Forest Laboratories, Inc.(a)...................... 2,646 271 Genzyme Corp. -- General Division(a).............. 7,539 289 Gilead Sciences, Inc.(a).......................... 10,036 243 Human Genome Sciences, Inc.(a).................... 2,378 67 IDEC Pharmaceuticals Corp.(a)..................... 3,093 @66 InterMune, Inc.(a)................................ 2,424 268 Laboratory Corp. of America Holdings (with rights)(a)...................................... 6,464 91 Lilly (Eli) & Co. (with rights)................... 5,045 266 McKesson Corp. ................................... 7,944 701 Millennium Pharmaceuticals, Inc. (with rights)(a)...................................... 5,212 98 Neurocrine Biosciences, Inc.(a)................... 4,382 289 Pfizer, Inc. (with rights)........................ 9,194 484 Schering-Plough Corp. (with rights)............... 10,342 @52 Scios, Inc.(a).................................... 1,512 186 Serono S.A. ADR................................... 2,606 247 St. Jude Medical, Inc. (with rights)(a)........... 8,789 357 Viasys Healthcare, Inc. (with rights)(a).......... 5,743 379 Watson Pharmaceuticals, Inc.(a)................... 10,430 -------- 141,842 --------
MARKET SHARES VALUE(C) - --------- -------- SERVICES -- 17.8% 738 Accenture Ltd. Class A(a)......................... $ 12,459 249 AMN Healthcare Services, Inc.(a).................. 3,595 195 BISYS Group, Inc.(a).............................. 3,492 1,450 Cendant Corp.(a).................................. 16,669 99 Clear Channel Communications, Inc.(a)............. 3,672 @60 Expedia, Inc.(a).................................. 4,060 296 Lamar Advertising Co.(a).......................... 10,043 112 Manpower, Inc. ................................... 3,809 85 Omnicom Group, Inc. .............................. 4,899 376 Station Casinos, Inc.(a).......................... 6,773 275 Univision Communications, Inc. Class A(a)......... 7,130 208 USA Interactive(a)................................ 5,250 121 Weight Watchers International, Inc.(a)............ 5,744 198 Wynn Resorts Ltd.(a).............................. 2,498 -------- 90,093 -------- TECHNOLOGY -- 27.3% 286 Applied Materials, Inc.(a)........................ 4,303 343 ASML Holding N.V.(a).............................. 2,950 383 AT&T Corp. ....................................... 4,996 307 Beckman Coulter, Inc. (with rights)............... 8,547 149 Cymer, Inc.(a).................................... 3,738 492 First Data Corp. ................................. 17,190 164 Harman International Industries, Inc. (with rights)......................................... 9,162 351 Intel Corp. ...................................... 6,077 75 Intuit, Inc. (with rights)(a)..................... 3,899 86 Maxim Integrated Products, Inc.(a)................ 2,751 324 Micron Technology, Inc.(a)........................ 5,184 189 Microsoft Corp.(a)................................ 10,117 51 Networks Associates, Inc.(a)...................... 809 816 Nextel Communications, Inc. Class A(a)............ 9,210 634 Nokia Oyj ADR..................................... 10,542 @213 QLogic Corp. (with rights)(a)..................... 7,409 227 QUALCOMM, Inc.(a)................................. 7,836 795 Taiwan Semiconductor Manufacturing Co. Ltd. ADR(a).......................................... 6,217 286 Thermo Electron Corp. (with rights)(a)............ 5,261 482 UTStarcom, Inc.(a)................................ 8,233 144 Varian, Inc. (with rights)(a)..................... 4,226 -------- 138,657 -------- TRANSPORTATION -- 6.1% 240 Carnival Corp. ................................... 6,261 @56 JetBlue Airways Corp.(a).......................... 2,262 @430 Royal Caribbean Cruises Ltd. ..................... 7,895 @248 Ryanair Holdings plc ADR(a)....................... 9,220 200 Yellow Corp.(a)................................... 5,527 -------- 31,165 -------- Total common stock (cost $497,990)................ $487,882 ========
The accompanying notes are an integral part of this financial statement. 52 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(C) - --------- -------- SHORT-TERM INVESTMENTS -- 8.5% FINANCE -- 8.5% $42,985 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 42,985 18 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.59%.................. 18 -------- Total short-term investments (cost $43,003)....... $ 43,003 ======== Total investments in securities (cost $540,993)(b).................................... $530,885 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $ 530,885 Collateral for securities lending transactions (Note 2d).................................... 29,700 Unrealized appreciation on foreign currency contracts.................................... 6 Receivables: Investment securities sold................... 14,923 Fund shares sold............................. 164 Dividends and interest....................... 271 Other assets................................... 74 --------- Total assets................................... 576,023 --------- LIABILITIES Cash overdraft................................. 4,819 Payables: Payable upon return of securities loaned (Note 2d).................................. 29,700 Investment securities purchased.............. 33,097 Fund shares redeemed......................... 173 Payable for investment management and advisory fees (Note 3)..................... 327 Payable for distribution fees (Note 3)....... 33 Accrued Expenses............................. 84 --------- Total liabilities.............................. 68,233 --------- Net asset...................................... $ 507,790 =========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000,000 shares authorized; 33,554 shares outstanding........ $ 739,534 Accumulated undistributed net investment loss......................................... (6) Accumulated net realized loss on investments and foreign currency transactions............ (221,630) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency..................................... (10,108) --------- Net assets..................................... $ 507,790 =========
Class A Net asset value per share ($3,338 / 218 shares outstanding).................................. $15.31 ====== Maximum offering price per share ($15.31 / 94.5%).............................. $16.20 ====== Class B Net asset value per share ($777 / 57 shares outstanding).................................. $13.71 ====== Class C Net asset value per share ($892 / 65 shares outstanding).................................. $13.70 ====== (Maximum offering price per share ($13.70 / 99.0%).............................. $13.84 ====== Class H Net asset value per share ($39,151 / 2,851 shares outstanding)........................... $13.73 ====== Class L Net asset value per share ($412,454 / 26,898 shares outstanding)........................... $15.33 ====== Maximum offering price per share ($15.33 / 95.25%)............................. $16.09 ====== Class M Net asset value per share ($20,163 / 1,470 shares outstanding)........................... $13.71 ====== Class N Net asset value per share ($4,172 / 304 shares outstanding).................................. $13.71 ====== Class Y Net asset value per share ($1 / @@ shares outstanding).................................. $15.35 ====== Class Z Net asset value per share ($26,842 / 1,691 shares outstanding)........................... $15.87 ======
(a) Presently non-incoming producing. (b) At October 31, 2002 the cost of securities for federal income tax purposes is $544,814 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation..................................... $ 30,941 Unrealized depreciation..................................... (44,870) -------- Net unrealized depreciation................................. $(13,929) ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 6.60% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 53 THE HARTFORD GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- British Pounds (Buy) $759 $756 11/01/2002 $ 3 British Pounds (Buy) 737 734 11/04/2002 3 British Pounds (Buy) 251 251 11/05/2002 -- --- $ 6 ===
The accompanying notes are an integral part of this financial statement. 54 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- 93.7% BASIC MATERIALS -- 4.3% 2,338 Abitibi-Consolidated, Inc. ....................... $ 14,844 446 Bowater, Inc. .................................... 15,118 @211 Cabot Microelectronics Corp.(a)................... 9,568 178 Rohm & Haas Co. (with rights)..................... 5,907 666 Smurfit-Stone Container Corp.(a).................. 8,671 ---------- 54,108 ---------- CAPITAL GOODS -- 7.7% 262 American Standard Companies, Inc.(a).............. 17,462 @999 Callaway Golf Co.................................. 12,229 360 Ingersoll-Rand Co. Class A (with rights)................................... 14,052 1,587 Lam Research Corp.(a)............................. 19,981 467 Parker-Hannifin Corp. (with rights)............... 20,384 1,161 Teradyne, Inc. (with rights)(a)................... 14,062 ---------- 98,170 ---------- CONSUMER CYCLICAL -- 10.8% @2,435 American Tower Corp. Class A(a)................... 3,433 194 Borders Group, Inc.(a)............................ 3,351 2,956 Burberry Group plc(a)............................. 11,285 320 Lennar Corp. ..................................... 17,643 1,571 Mattel, Inc. (with rights)........................ 28,852 221 Mohawk Industries, Inc.(a)........................ 11,818 292 Newell Rubbermaid, Inc. (with rights)............. 9,459 @488 NIKE, Inc. Class B................................ 23,023 268 PACCAR, Inc. (with rights)........................ 11,829 306 Staples, Inc.(a).................................. 4,741 512 Williams-Sonoma, Inc.(a).......................... 12,191 ---------- 137,625 ---------- CONSUMER STAPLES -- 1.7% 148 Kellogg Co. ...................................... 4,724 638 Pepsi Bottling Group, Inc. ....................... 17,191 ---------- 21,915 ---------- ENERGY -- 7.6% 555 EOG Resources, Inc. (with rights)................. 20,555 886 GlobalSantaFe Corp. .............................. 21,185 82 KeySpan Corp. (with rights)....................... 2,998 246 Nabors Industries Ltd.(a)......................... 8,604 254 Noble Corp. (with rights)(a)...................... 8,195 559 Sunoco, Inc. (with rights)........................ 16,759 510 Valero Energy Corp. .............................. 17,943 ---------- 96,239 ---------- FINANCE AND INSURANCE -- 19.6% 145 Ambac Financial Group, Inc. ...................... 8,978 290 Anthem, Inc.(a)................................... 18,272 430 Arch Capital Group Ltd.(a)........................ 12,041 825 Astoria Financial Corp. .......................... 21,598 447 Bank of Hawaii Corp. ............................. 13,234 127 BlackRock, Inc.(a)................................ 4,551 461 Countrywide Credit Industries, Inc. .............. 23,208 337 Federated Investors, Inc. Class B................. 9,024 278 Golden West Financial Corp. ...................... 19,226 849 Hibernia Corp. Class A............................ 16,738 2,437 Host Marriott Corp.(a)............................ 19,981
MARKET SHARES VALUE(C) - --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 407 Investment Technology Group, Inc. (with rights)(a)...................................... $ 12,983 226 IPC Holdings Ltd.(a).............................. 7,032 370 Legg Mason, Inc. ................................. 17,183 181 M&T Bank Corp. ................................... 14,820 1,336 Sovereign Bancorp, Inc. (with rights)............. 18,809 263 UnionBanCal Corp. ................................ 11,243 ---------- 248,921 ---------- HEALTH CARE -- 15.8% 527 Applera Corp. -- Celera Genomics Group(a)......... 4,343 447 Becton, Dickinson & Co. (with rights)............. 13,187 424 Cephalon, Inc.(a)................................. 21,293 576 Guidant Corp.(a).................................. 17,021 780 Health Management Associates, Inc. Class A(a)..... 14,908 720 Human Genome Sciences, Inc. (with rights)(a)...... 7,036 155 IDEC Pharmaceuticals Corp.(a)..................... 7,115 800 Laboratory Corp. of America Holdings (with rights)(a)...................................... 19,270 668 McKesson Corp. ................................... 19,906 1,777 Millennium Pharmaceuticals, Inc. (with rights)(a)...................................... 13,219 @261 Regeneron Pharmaceutical, Inc.(a)................. 3,951 337 St. Jude Medical, Inc. (with rights)(a)........... 12,015 500 Vertex Pharmaceuticals, Inc.(a)................... 9,806 548 Waters Corp. (with rights)(a)..................... 13,788 905 Watson Pharmaceuticals, Inc.(a)................... 24,866 ---------- 201,724 ---------- SERVICES -- 13.0% 515 ARAMARK Corp. Class B(a).......................... 10,875 208 BISYS Group, Inc.(a).............................. 3,729 2,080 Cadence Design Systems, Inc.(a)................... 21,068 710 Gartner, Inc. Class A(a).......................... 5,677 356 Knight-Ridder, Inc. (with rights)................. 21,441 @698 Lamar Advertising Co.(a).......................... 23,680 675 Manpower, Inc. ................................... 23,013 96 MGM Mirage, Inc.(a)............................... 2,998 350 Robert Half International, Inc. (with rights)(a)...................................... 5,847 185 Scripps (E.W.) Co. Class A........................ 14,245 635 Univision Communications, Inc. Class A(a)......... 16,450 @646 USA Interactive(a)................................ 16,331 ---------- 165,354 ---------- TECHNOLOGY -- 8.7% 283 Beckman Coulter, Inc. (with rights)............... 7,891 994 Broadcom Corp. Class A(a)......................... 11,907 141 Certegy, Inc.(a).................................. 2,969 @1,523 Citizens Communications Co. (with rights)(a)...... 12,670 1,654 Flextronics International Ltd.(a)................. 13,823 354 Intuit, Inc. (with rights)(a)..................... 18,394
The accompanying notes are an integral part of this financial statement. 55 THE HARTFORD MIDCAP FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- (CONTINUED) TECHNOLOGY -- (CONTINUED) 1,150 Nextel Communications, Inc. Class A(a)...................................... $ 12,973 265 Symantec Corp.(a)................................. 10,612 1,439 Symbol Technologies, Inc. (with rights)........... 12,448 912 VeriSign, Inc. (with rights)(a)................... 7,345 ---------- 111,032 ---------- TRANSPORTATION -- 3.2% 295 CNF, Inc. ........................................ 9,480 427 CSX Corp. (with rights)........................... 11,777 @534 Ryanair Holdings plc ADR(a)....................... 19,857 ---------- 41,114 ---------- UTILITIES -- 1.3% 134 Cinergy Corp. (with rights)....................... 4,175 919 DPL, Inc. (with rights)........................... 12,683 ---------- 16,858 ---------- Total common stock (cost $1,296,933).............. $1,193,060 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 7.4% FINANCE -- 7.4% $94,568 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 94,568 ---------- Total short-term investments (cost $94,568)....... $ 94,568 ========== Total investments in securities (cost $1,391,501)(b).................................. $1,287,628 ==========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $1,287,628 Collateral for securities lending transactions (Note 2d).................................... 61,486 Receivables: Investment securities sold................... 15,013 Fund shares sold............................. 6,976 Dividends and interest....................... 237 Other assets................................... 437 ---------- Total assets................................... $1,371,777 ---------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d).................................. 61,486 Investment securities purchased.............. 33,750 Fund shares redeemed......................... 1,564 Payable for investment management and advisory fees (Note 3)..................... 805 Payable for distribution fees (Note 3)....... 151 Accrued Expenses............................. 509 ---------- Total liabilities.............................. 98,265 ---------- Net assets..................................... $1,273,512 ==========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 360,000 shares authorized; 83,456 shares outstanding.................... $1,523,988 Accumulated net realized loss on investments... (146,603) Unrealized depreciation of investments in securities................................... (103,873) ---------- Net assets..................................... $1,273,512 ==========
Class A Net asset value per share ($704,238 / 45,446 shares outstanding).......................... $15.50 ------ Maximum offering price per share ($15.50 / 94.5%)............................. $16.40 ====== Class B Net asset value per share ($266,650 / 17,862 shares outstanding).......................... $14.93 ====== Class C Net asset value per share ($275,305 / 18,428 shares outstanding).......................... $14.94 ------ Maximum offering price per share ($14.94 / 99.0%)............................. $15.09 ====== Class Y Net asset value per share ($27,319 / 1,720 shares outstanding).......................... $15.88 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $1,408,073 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................... $ 38,860 Unrealized depreciation.................... (159,305) --------- Net unrealized depreciation................ $(120,445) =========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 4.70% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements.
The accompanying notes are an integral part of this financial statement. 56 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 97.6% BASIC MATERIALS -- 8.9% 256 Abitibi-Consolidated, Inc. ....................... $ 1,628 117 AK Steel Holding Corp.(a)......................... 846 29 Albemarle Corp. .................................. 821 44 Cambrex Corp. .................................... 1,222 87 Engelhard Corp. (with rights)..................... 1,934 @43 Grupo IMSA S.A. de C.V. ADR....................... 519 135 IMC Global, Inc. (with rights).................... 1,489 28 Lafarge North America, Inc. ...................... 815 21 Michelin (C.G.D.E.) Class B....................... 614 83 Pactiv Corp.(a)................................... 1,643 162 Smurfit-Stone Container Corp.(a).................. 2,106 -------- 13,637 -------- CAPITAL GOODS -- 8.9% 342 Axcelis Technologies, Inc.(a)..................... 1,837 63 Black & Decker Corp. ............................. 2,946 128 Callaway Golf Co. ................................ 1,565 133 Flowserve Corp.(a)................................ 1,559 47 IHC Caland N.V. .................................. 2,069 11 ITT Industries, Inc. ............................. 689 84 Rockwell Automation, Inc. ........................ 1,387 128 Teradyne, Inc. (with rights)(a)................... 1,551 -------- 13,603 -------- CONSUMER CYCLICAL -- 4.0% 14 Beazer Homes USA, Inc.(a)......................... 888 119 Granite Construction, Inc. ....................... 1,906 11 Toll Brothers, Inc.(a)............................ 223 108 United Stationers, Inc.(a)........................ 3,196 -------- 6,213 -------- CONSUMER STAPLES -- 7.5% 125 Bunge Ltd. ....................................... 3,175 89 Constellation Brands, Inc. Class A(a)............. 2,254 85 Dean Foods Co.(a)................................. 3,190 117 Sensient Technologies Corp. ...................... 2,859 -------- 11,478 -------- ENERGY -- 7.4% 40 Devon Energy Corp. ............................... 2,020 44 Noble Corp. (with rights)(a)...................... 1,419 137 Ocean Energy, Inc. ............................... 2,548 57 Petro-Canada...................................... 1,603 22 Progress Energy, Inc. ............................ 922 26 Valero Energy Corp. .............................. 898 84 XTO Energy, Inc. (with rights).................... 2,008 -------- 11,418 -------- FINANCE AND INSURANCE -- 26.1% 57 ACE Ltd. ADR (with rights)........................ 1,750 83 Ambac Financial Group, Inc. ...................... 5,142 58 Astoria Financial Corp. .......................... 1,513 78 Charter One Financial, Inc. (with rights)......... 2,353 82 CIT Group, Inc. .................................. 1,459 91 Converium Holding AG ADR(a)....................... 1,826
MARKET SHARES VALUE(C) - --------- -------- 150 Hibernia Corp. Class A............................ $ 2,955 31 Legg Mason, Inc. ................................. 1,431 35 Liberty Property Trust (with rights) (REIT).......................................... 1,030 53 Oxford Health Plans, Inc.(a)...................... 1,892 8 Platinum Underwriters Holdings Ltd.(a)............ 203 40 Reckson Associates Realty Corp. (REIT)............ 804 @157 Reinsurance Group of America, Inc. ............... 4,305 41 RenaissanceRe Holdings Ltd. ADR................... 1,673 50 Rent-A-Center, Inc.(a)............................ 2,200 40 Rouse Co. ........................................ 1,195 41 St. Paul Companies, Inc. ......................... 1,338 82 UnionBanCal Corp. ................................ 3,484 145 United Rentals, Inc. (with rights)(a)............. 882 82 Webster Financial Corp. .......................... 2,664 -------- 40,099 -------- HEALTH CARE -- 3.2% 38 Bard (C.R.), Inc. (with rights)................... 2,109 78 Health Net, Inc. (with rights)(a)................. 1,818 59 Monsanto Co. ..................................... 982 -------- 4,909 -------- SERVICES -- 7.3% 52 Argosy Gaming Co.(a).............................. 1,036 @202 Bally Total Fitness Holding Corp.(a).............. 1,375 316 BearingPoint, Inc. (with rights)(a)............... 2,467 107 Reader's Digest Association, Inc. Class A......... 1,733 181 Republic Services, Inc.(a)........................ 3,727 87 Six Flags, Inc.(a)................................ 398 265 UnitedGlobalCom, Inc. Class A(a).................. 501 -------- 11,237 -------- TECHNOLOGY -- 15.0% 66 AMETEK, Inc. ..................................... 2,340 189 Arrow Electronics, Inc.(a)........................ 2,483 181 Cirrus Logic, Inc.(a)............................. 596 47 DENTSPLY International, Inc. ..................... 1,746 168 Fairchild Semiconductor Corp. Class A(a)...................................... 1,999 224 Flextronics International Ltd.(a)................. 1,876 112 Harman International Industries, Inc. (with rights)......................................... 6,300 24 McLeodUSA, Inc. Class A(a)........................ 10 367 Solectron Corp. (with rights)(a).................. 827 187 Sybase, Inc. (with rights)(a)..................... 2,397 237 Vishay Intertechnology, Inc.(a)................... 2,437 -------- 23,011 -------- TRANSPORTATION -- 5.6% 65 Canadian National Railway Co. .................... 2,786 53 CNF, Inc. ........................................ 1,693 37 Continental Airlines, Inc. Class B (with rights)(a)...................................... 233 153 ExpressJet Holdings, Inc.(a)...................... 1,744 105 Werner Enterprises, Inc. ......................... 2,147 -------- 8,603 --------
The accompanying notes are an integral part of this financial statement. 57 THE HARTFORD MIDCAP VALUE FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) UTILITIES -- 3.7% 42 CMS Energy Corp. ................................. $ 331 36 FirstEnergy Corp. (with rights)................... 1,181 18 FPL Group, Inc. (with rights)..................... 1,068 90 PPL Corp. ........................................ 3,132 5,712 -------- Total common stock (cost $176,217)................ $149,920 -------- PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 2.1% FINANCE -- 2.1% $3,292 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 3,292 -------- Total short-term investments (cost $3,292)................................... $ 3,292 ======== Total investments in securities (cost $179,509)(b).................................... $153,212 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $153,212 Collateral for securities lending transactions (Note 2d)..................................... 2,216 Receivables: Investment securities sold.................... 296 Fund shares sold.............................. 533 Dividends and interest........................ 70 Other assets.................................... 71 -------- Total assets.................................... 156,398 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)......................................... 2,216 Investment securities purchased............... 242 Fund shares redeemed.......................... 117 Payable for investment management and advisory fees (Note 3)............................... 106 Payable for distribution fees (Note 3)........ 17 Accrued Expenses.............................. 86 -------- Total liabilities............................... 2,784 -------- Net assets...................................... $153,614 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 18,502 shares outstanding..................... $182,379 Accumulated net realized loss on investments and foreign currency transactions................. (2,468) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency... (26,297) -------- Net assets...................................... $153,614 ========
Class A Net asset value per share ($94,532 / 11,342 shares outstanding)........................... $8.34 ===== Maximum offering price per share ($8.34 / 94.5%)............................... $8.83 ===== Class B Net asset value per share ($26,556 / 3,219 shares outstanding)........................... $8.25 ===== Class C Net asset value per share ($32,274 / 3,911 shares outstanding)........................... $8.25 ===== Maximum offering price per share ($8.25 / 99.0%)............................... $8.33 ===== Class Y Net asset value per share ($252 / 30 shares outstanding).................................. $8.39 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $179,802 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 6,008 Unrealized depreciation...................... (32,598) -------- Net unrealized depreciation.................. $(26,590) ========
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 8.41% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements.
The accompanying notes are an integral part of this financial statement. 58 THE HARTFORD VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 99.0% BASIC MATERIALS -- 9.1% 111 Abitibi-Consolidated, Inc. ....................... $ 706 3 Air Products and Chemicals, Inc. (with rights).... 128 52 Alcoa, Inc. ...................................... 1,154 5 Engelhard Corp. (with rights)..................... 104 31 IMC Global, Inc. ................................. 344 8 Lafarge North America, Inc. ...................... 237 12 Michelin (C.G.D.E.) Class B....................... 352 28 Smurfit-Stone Container Corp.(a).................. 363 -------- 3,388 -------- CAPITAL GOODS -- 5.1% 50 Axcelis Technologies, Inc.(a)..................... 268 7 Eaton Corp. (with rights)......................... 499 33 Flowserve Corp.(a)................................ 388 7 IHC Caland N.V. .................................. 306 15 Rockwell Automation, Inc. ........................ 252 16 Teradyne, Inc. (with rights)(a)................... 190 -------- 1,903 -------- CONSUMER CYCLICAL -- 12.1% 20 BJ's Wholesale Club, Inc.(a)...................... 404 8 Granite Construction, Inc. ....................... 129 25 Kroger Co. (with rights)(a)....................... 368 23 Petroleo Brasileiro S.A. ADR...................... 306 11 Pier 1 Imports, Inc. ............................. 213 20 Ross Stores, Inc. ................................ 837 20 Safeway, Inc.(a).................................. 453 65 TJX Companies, Inc. .............................. 1,334 22 Toll Brothers, Inc.(a)............................ 453 -------- 4,497 -------- CONSUMER STAPLES -- 2.1% 27 EnCana Corp. ..................................... 780 -------- ENERGY -- 4.3% 18 Devon Energy Corp. ............................... 904 20 GlobalSantaFe Corp. .............................. 490 5 Progress Energy, Inc. ............................ 196 -------- 1,590 -------- FINANCE AND INSURANCE -- 33.5% 20 ACE Ltd. ADR (with rights)........................ 624 8 Arch Capital Group Ltd.(a)........................ 221 28 Astoria Financial Corp. .......................... 746 6 CIGNA Corp. (with rights)......................... 199 43 CIT Group, Inc. .................................. 771 62 Citigroup, Inc. .................................. 2,297 17 Fannie Mae........................................ 1,157 10 Freddie Mac....................................... 585 40 Hibernia Corp. Class A............................ 794 8 MBIA, Inc. ....................................... 371 30 Oxford Health Plans, Inc.(a)...................... 1,085 2 Platinum Underwriters Holdings Ltd.(a)............ 50 39 RenaissanceRe Holdings Ltd. ADR................... 1,607
MARKET SHARES VALUE(C) - --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 19 St. Paul Companies, Inc. ......................... $ 617 3 Travelers Property Casualty Corp. Class A(a)...... 33 27 Travelers Property Casualty Corp. Class B(a)...... 370 22 UnionBanCal Corp. ................................ 940 -------- 12,467 -------- HEALTH CARE -- 7.6% 14 Abbott Laboratories (with rights)................. 599 7 Aventis S.A. ADR.................................. 420 24 Health Net, Inc. (with rights)(a)................. 562 11 Monsanto Co. ..................................... 185 21 Pharmacia Corp. (with rights)..................... 886 6 Wyeth (with rights)............................... 194 -------- 2,846 -------- SERVICES -- 4.9% 30 BearingPoint, Inc. (with rights)(a)............... 231 61 Comcast Corp. Special Class A(a).................. 1,394 100 UnitedGlobalCom, Inc. Class A(a).................. 189 -------- 1,814 -------- TECHNOLOGY -- 17.4% 7 AMETEK, Inc. ..................................... 237 87 AOL Time Warner, Inc. (with rights)(a)............ 1,283 34 Arrow Electronics, Inc.(a)........................ 446 17 Cirrus Logic, Inc.(a)............................. 56 18 Cisco Systems, Inc. (with rights)(a).............. 201 21 Cox Communications, Inc. Class A(a)............... 575 15 Fairchild Semiconductor Corp. Class A(a)...................................... 182 13 International Business Machines Corp. ............ 995 52 McLeodUSA, Inc.(a)................................ 23 28 Micron Technology, Inc.(a)........................ 443 54 Solectron Corp. (with rights)(a).................. 123 18 Sybase, Inc. (with rights)(a)..................... 229 97 Tyco International Ltd. (with rights)............. 1,406 29 Vishay Intertechnology, Inc.(a)................... 298 -------- 6,497 -------- TRANSPORTATION -- 1.9% 5 Canadian National Railway Co. .................... 209 18 Continental Airlines, Inc. Class B (with rights)(a)...................................... 115 33 ExpressJet Holdings, Inc.(a)...................... 374 -------- 698 -------- UTILITIES -- 1.0% 5 CMS Energy Corp. ................................. 38 6 FirstEnergy Corp. (with rights)................... 191 4 PPL Corp. ........................................ 156 -------- 385 -------- Total common stock (cost $41,737)................. $ 36,865 ========
The accompanying notes are an integral part of this financial statement. 59 THE HARTFORD VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(C) - --------- -------- SHORT-TERM INVESTMENTS -- 2.2% FINANCE -- 2.2% $ 806 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)....................................... $ 806 1 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. 1 -------- Total short-term investments (cost $807).......... $ 807 ======== Total investments in securities (cost $42,544)(b)..................................... $ 37,672 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value.............. $37,672 Receivables: Fund shares sold............................... 19 Dividends and interest......................... 39 Other assets..................................... 37 ------- Total assets..................................... 37,767 ------- LIABILITIES Payables: Investment securities purchased................ 453 Fund shares redeemed........................... 25 Payable for investment management and advisory fees (Note 3)................................ 30 Payable for distribution fees (Note 3)......... 4 Accrued Expenses............................... 7 ------- Total liabilities................................ 519 ------- Net assets....................................... $37,248 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 4,097 shares outstanding....................... $51,645 Accumulated net realized loss on investments and foreign currency transactions.................. (9,525) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.... (4,872) ------- Net assets....................................... $37,248 =======
Class A Net asset value per share ($2,600 / 281 shares outstanding)................................... $9.26 ===== Maximum offering price per share ($9.26 / 94.5%)................................ $9.80 ===== Class B Net asset value per share ($481 / 54 shares outstanding)................................... $8.84 ===== Class C Net asset value per share ($430 / 49 shares outstanding)................................... $8.85 ===== Maximum offering price per share ($8.85 / 99.0%)................................ $8.94 ===== Class H Net asset value per share ($5,634 / 636 shares outstanding)................................... $8.85 ===== Class L Net asset value per share ($19,684 / 2,126 shares outstanding)................................... $9.26 ===== Maximum offering price per share ($9.26 / 95.25%)............................... $9.72 ===== Class M Net asset value per share ($6,669 / 754 shares outstanding)................................... $8.85 ===== Class N Net asset value per share ($1,749 / 197 shares outstanding)................................... $8.85 ===== Class Y Net asset value per share ($1 / @@ shares outstanding)................................... $9.30 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $43,469 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation...................... $ 2,110 Unrealized depreciation...................... (7,907) ------- Net unrealized depreciation.................. $(5,797) =======
(c) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 8.27% of total net assets as of October 31, 2002. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 60 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 92.3% AUSTRALIA -- 1.1% 189 News Corp. Ltd (Arts, Entertainment, and Recreation)..................................... $ 1,118 -------- BRAZIL -- 0.7% @26 Companhia Vale do Rio Doce ADR(a) (Primary Metal Manufacturing).................................. 687 -------- CANADA -- 2.0% 29 Canadian National Railway Co. (Rail Transportation)................................. 1,224 42 National Bank of Canada (Finance and Insurance)... 798 -------- 2,022 -------- FINLAND -- 2.9% 130 Nokia Oyj (Computer and Electronic Product Manufacturing).................................. 2,205 26 UPM-Kymmene Oyj (Paper Manufacturing)............. 834 -------- 3,039 -------- FRANCE -- 12.0% 36 Aventis S.A. (Health Care and Social Assistance)..................................... 2,173 58 Axa (Finance and Insurance)....................... 864 @38 BNP Paribas (Finance and Insurance)............... 1,532 12 Carrefour S.A. (Retail Trade)..................... 575 15 CNP Assurances (Finance and Insurance)............ 534 25 PSA Peugeot Citroen S.A. (Motor Vehicle & Parts Manufacturing).................................. 1,048 10 Sanofi-Synthelabo S.A. (Health Care and Social Assistance)..................................... 593 10 Schneider Electric S.A. (Miscellaneous Manufacturing).................................. 454 @18 Societe Television Francaise 1 Arts, Entertainment, and Recreation).................. 469 24 Total Fina Elf S.A. (Petroleum and Coal Products Manufacturing).................................. 3,348 24 Vivendi Environnement (Administrative Waste Management and Remediation)..................... 557 25 Vivendi Universal S.A. (Other Services)........... 307 -------- 12,454 -------- GERMANY -- 6.8% 11 Adidas-Salomon AG (Leather and Allied Product Manufacturing).................................. 865 34 BASF AG (Chemical Manufacturing).................. 1,255 @77 Deutsche Telekom AG ADR (Information)............. 873 34 E.On AG (Miscellaneous Manufacturing)............. 1,552 46 Metro AG (Retail Trade)........................... 1,068 24 RWE AG (Petroleum and Coal Products Manufacturing).................................. 761 8 SAP AG (Information).............................. 637 -------- 7,011 -------- HONG KONG -- 0.4% 60 Sun Hung Kai Properties Ltd. (Construction)....... 374 --------
MARKET SHARES VALUE(C) - --------- -------- IRELAND -- 2.1% 77 Allied Irish Banks plc (Finance and Insurance).... $ 1,081 169 Ryanair Holdings plc(a) (Air Transportation)...... 1,109 -------- 2,190 -------- ITALY -- 4.9% @130 Autostrade -- Concessioni e Costruzioni Autostrade S.p.A. (Construction)........................... 1,079 @396 Banca Monte dei Paschi di Siena S.p.A. (Finance and Insurance).................................. 858 @47 Banco Popolare di Verona e Novara Scrl (Finance and Insurance).................................. 558 @65 ENI-Ente Nazionale Idrocarburi S.p.A. (Petroleum and Coal Products Manufacturing)................ 905 @150 Mediaset S.p.A. (Arts, Entertainment, and Recreation)..................................... 1,049 @135 Telecom Italia Mobile S.p.A. (T.I.M.) (Information)................................... 627 -------- 5,076 -------- JAPAN -- 13.2% 16 Canon, Inc. (Computer and Electronic Product Manufacturing).................................. 590 70 Citizen Watch Co. Ltd. (Retail Trade)............. 367 @@ East Japan Railway Co. (Transit and Ground Passenger Transportation)....................... 633 8 Fast Retailing Co. Ltd. (Retail Trade)............ 232 32 Fujisawa Pharmaceutical Co. Ltd. (Health Care and Social Assistance).............................. 615 43 Kao Corp. (Retail Trade).......................... 983 9 Kyocera Corp. (Computer and Electronic Product Manufacturing).................................. 542 65 Matsushita Electric Industrial Co. Ltd. (Computer and Electronic Product Manufacturing)........... 681 41 Mitsubishi Estate Co. Ltd. (Real Estate and Rental and Leasing).................................... 307 10 Murata Manufacturing Co. Ltd. (Electrical Equipment, Appliance Manufacturing)............. 449 53 Nikko Cordial Corp. (Finance and Insurance)....... 211 5 Nintendo Co. Ltd. (Toy Manufacturing)............. 472 471 Nippon Steel Corp. (Primary Metal Manufacturing).................................. 538 @@ Nippon Unipac Holding (Paper Manufacturing)....... 372 @@ NTT DoCoMo, Inc. (Information).................... 622 28 Pioneer Corp. (Computer and Electronic Product Manufacturing).................................. 478 21 Promise Co. Ltd. (Finance and Insurance).......... 680 10 Secom Co. Ltd. (Administrative Waste Management and Remediation)................................ 371 78 Shionogi & Co. Ltd. (Health Care and Social Assistance)..................................... 895 1 SKY Perfect Communications, Inc.(a) (Information)................................... 797
The accompanying notes are an integral part of this financial statement. 61 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) JAPAN -- (CONTINUED) 13 Sony Corp. (Computer and Electronic Product Manufacturing).................................. $ 558 135 Sumitomo Mitsui Banking Corp. (Finance and Insurance)...................................... 557 55 Tostem Inax Holding Corp. (Retail Trade).......... 741 41 Toyota Motor Corp. (Motor Vehicle & Parts Manufacturing).................................. 990 -------- 13,681 -------- MALAYSIA -- 0.5% 224 Resorts World Berhad (Arts, Entertainment, and Recreation)..................................... 531 -------- NETHERLANDS -- 8.3% 115 Aegon N.V. (Finance and Insurance)................ 1,560 65 Fortis Banks N.A. (Finance and Insurance)......... 1,181 70 ING Groep N.V. (Finance and Insurance)............ 1,163 262 Koninklijke (Royal) KPN N.V. (Information)........ 1,660 59 Royal Dutch Petroleum Co. (Petroleum and Coal Products Manufacturing)......................... 2,552 33 TPG N.V. (Postal Service)......................... 528 -------- 8,644 -------- NEW ZEALAND -- 0.5% 219 Telecom Corp. of New Zealand Ltd. (Information)... 539 -------- SINGAPORE -- 0.7% 98 United Overseas Bank Ltd. (Finance and Insurance)...................................... 744 -------- SOUTH KOREA -- 2.7% 56 Korea Tobacco & Ginseng Corp. (Beverage and Tobacco Product Manufacturing).................. 412 4 Samsung Electronics (Computer and Electronic Product Manufacturing).......................... 1,107 7 SK Telecom Co. Ltd. (Information)................. 1,250 -------- 2,769 -------- SPAIN -- 1.2% 10 Banco Popular Espanol (Finance and Insurance)..... 423 37 Industria de Diseno Textil S.A. (Inditex) (Wholesale Trade)............................... 828 -------- 1,251 -------- SWEDEN -- 2.4% @125 Gambro AB Class A (Health Care and Social Assistance)..................................... 652 48 Svenska Handelsbanken AB Class A (Finance and Insurance)...................................... 610 170 Swedish Match AB (Beverage and Tobacco Product Manufacturing).................................. 1,228 -------- 2,490 --------
MARKET SHARES VALUE(C) - --------- -------- SWITZERLAND -- 7.5% 12 Ciba Specialty Chemicals AG (Chemical Manufacturing).................................. $ 836 64 Credit Suisse Group (Finance and Insurance)....... 1,225 12 Nestle S.A. (Food Manufacturing).................. 2,567 29 Novartis AG (Health Care and Social Assistance)... 1,089 7 Roche Holding AG (Health Care and Social Assistance)..................................... 467 1 Serono S.A. Class B (Health Care and Social Assistance)..................................... 662 15 Syngenta AG (Agriculture, Forestry, Fishing and Hunting)........................................ 878 -------- 7,724 -------- TAIWAN -- 1.9% 1 China Steel Corp. (Primary Metal Manufacturing)... @@ 753 Chinatrust Financial Holding Co. Ltd.(a) (Finance and Insurance).................................. 600 @@ Formosa Chemicals & Fibre Corp. (Chemical Manufacturing).................................. @@ 134 Quanta Computer, Inc. (Computer and Electronic Product Manufacturing).......................... 272 76 Taiwan Semiconductor Manufacturing Co. Ltd. ADR(a) (Computer and Electronic Product Manufacturing).................................. 597 560 United Microelectronics Corp. (Computer and Electronic Product Manufacturing)............... 406 @23 United Microelectronics Corp. ADR(a) (Computer and Electronic Product Manufacturing)............... 94 -------- 1,969 -------- THAILAND -- 0.9% 668 Siam Commercial Bank Public Co. Ltd.(a) (Finance and Insurance).................................. 405 669 Thai Farmers Bank Public Co. Ltd.(a) (Finance and Insurance)...................................... 479 -------- 884 -------- UNITED KINGDOM -- 18.4% 73 AstraZeneca plc (Health Care and Social Assistance)..................................... 2,742 94 Aviva plc (Finance and Insurance)................. 723 422 BAE Systems plc (Miscellaneous Manufacturing)..... 1,229 290 BP plc (Petroleum and Coal Products Manufacturing).................................. 1,858 45 British Sky Broadcasting Group plc(a) (Information)................................... 422 152 Compass Group plc (Accommodation and Food Services)....................................... 675 95 Diageo plc (Beverage and Tobacco Product Manufacturing).................................. 1,073 80 GlaxoSmithKline plc (Health Care and Social Assistance)..................................... 1,525
The accompanying notes are an integral part of this financial statement. 62 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 82 Hilton Group plc (Arts, Entertainment, and Recreation)..................................... $ 222 67 Imperial Tobacco Group plc (Beverage and Tobacco Product Manufacturing).......................... 1,054 96 Pearson plc (Arts, Entertainment, and Recreation)..................................... 1,022 84 Royal Bank of Scotland Group plc (Finance and Insurance)...................................... 1,970 58 Scottish & Newcastle plc (Beverage and Tobacco Product Manufacturing).......................... 450 183 Tesco plc (Retail Trade).......................... 568 2,161 Vodafone Group plc (Information).................. 3,473 -------- 19,006 -------- UNITED STATES -- 1.2% @62 Accenture Ltd. Class A(a) (Professional, Scientific, and Technical Services)............. 1,045 6 Schlumberger Ltd. (Petroleum and Coal Products Manufacturing).................................. 242 -------- 1,287 -------- Total common stock (cost $104,028)................ $ 95,490 ======== PREFERRED STOCK -- 0.7% GERMANY -- 0.7% 14 Wella AG (Health Care and Social Assistance)...... $ 724 -------- Total preferred stock (cost $730)................. $ 724 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 9.5% FINANCE -- 9.5% $9,787 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)....................................... $ 9,787 @@ U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. -- -------- Total short-term investments (cost $9,787)........ $ 9,787 ======== Total investments in securities (cost $114,545)(b).................................... $106,001 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $106,001 Cash........................................................ 7 Foreign currency on deposit with custodian (cost $77)....... 90 Collateral for securities lending transactions (Note 2d).... 9,505 Receivables: Investment securities sold................................ 1,475 Fund shares sold.......................................... 227 Dividends and interest.................................... 244 Other assets................................................ 56 -------- Total assets................................................ 117,605 -------- LIABILITIES Unrealized depreciation on foreign currency contracts....... 7 Payables: Payable upon return of securities loaned (Note 2d)........ 9,505 Investment securities purchased........................... 330 Fund shares redeemed...................................... 4,169 Payable for investment management and advisory fees (Note 3)...................................................... 73 Payable for distribution fees (Note 3).................... 11 Accrued Expenses.......................................... 86 -------- Total liabilities........................................... 14,181 -------- Net assets.................................................. $103,424 ========
The accompanying notes are an integral part of this financial statement. 63 THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 13,046 shares outstanding............................................... $169,508 Accumulated net realized loss on investments and foreign currency transactions..................................... (57,561) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.......................................... (8,523) -------- Net assets.................................................. $103,424 ========
Class A Net asset value per share ($66,775 / 8,320 shares outstanding)........................... $ 8.03 ======== Maximum offering price per share ($8.03 / 94.5%)............................... $ 8.50 ======== Class B Net asset value per share ($18,668 / 2,420 shares outstanding)........................... $ 7.71 ======== Class C Net asset value per share ($13,438 / 1,752 shares outstanding)........................... $ 7.67 ======== Maximum offering price per share ($7.67 / 99.0%)............................... $ 7.75 ======== Class Y Net asset value per share ($4,543 / 554 shares outstanding).................................. $ 8.19 ========
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes was $116,569 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation..................... $ 1,103 Unrealized depreciation..................... (11,671) -------- Net unrealized depreciation................. $(10,568) ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- Swiss Francs (Sell) $ 98 $ 98 11/01/2002 $-- Euro (Sell) 451 448 11/01/2002 (3) Japanese Yen (Sell) 311 308 11/01/2002 (3) Euro (Sell) 103 102 11/04/2002 (1) Euro (Sell) 433 433 11/05/2002 -- Swiss Francs (Buy) 101 101 11/05/2002 -- Japanese Yen (Buy) 75 75 11/05/2002 -- Japanese Yen (Buy) 112 112 11/06/2002 -- --- $(7) ===
The accompanying notes are an integral part of this financial statement. 64 THE HARTFORD GLOBAL LEADERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 97.0% AUSTRALIA -- 1.3% 969 Woolworths Ltd. (Retail Trade).................... $ 6,620 -------- CANADA -- 2.5% @@ Nortel Networks(a) (Information).................. 3,197 @7,591 Nortel Networks Corp.(a) (Information)............ 9,336 -------- 12,533 -------- FINLAND -- 4.4% 1,303 Nokia Oyj (Computer and Electronic Product Manufacturing).................................. 22,136 -------- FRANCE -- 6.5% 634 Axa (Finance and Insurance)....................... 9,456 28 Groupe Danone (Food Manufacturing)................ 3,581 91 L'Oreal S.A. (Wholesale Trade).................... 6,799 @206 Societe Television Francaise 1 (Arts, Entertainment, and Recreation).................. 5,317 55 Total Fina Elf S.A. (Petroleum and Coal Products Manufacturing).................................. 7,563 -------- 32,716 -------- GERMANY -- 1.8% 20 Allianz AG (Finance and Insurance)................ 2,080 91 SAP AG (Information).............................. 7,006 -------- 9,086 -------- HONG KONG -- 1.8% @5,326 China Unicom Ltd.(a) (Information)................ 3,312 @4,564 CNOOC Ltd. (Petroleum and Coal Products Manufacturing).................................. 5,705 -------- 9,017 -------- ISRAEL -- 0.6% 42 Teva Pharmaceutical Industries Ltd. ADR (Health Care and Social Assistance)..................... 3,244 -------- ITALY -- 1.0% @756 Mediaset S.p.A. (Arts, Entertainment, and Recreation)..................................... 5,278 -------- JAPAN -- 4.6% 280 Fast Retailing Co. Ltd. (Retail Trade)............ 8,675 2,650 Nikko Cordial Corp. (Finance and Insurance)....... 10,621 20 Nintendo Co. Ltd. (Toy Manufacturing)............. 1,888 46 Sony Corp. (Computer and Electronic Product Manufacturing).................................. 1,957 -------- 23,141 --------
MARKET SHARES VALUE(C) - --------- -------- NETHERLANDS -- 9.0% 933 Aegon N.V. (Finance and Insurance)................ $ 12,647 2,294 Koninklijke (Royal) KPN N.V. (Information)........ 14,537 @260 STMicroelectronics N.V. (Computer and Electronic Product Manufacturing).......................... 5,117 203 Unilever N.V. NY Shares (Food Manufacturing)...... 12,993 -------- 45,294 -------- NORWAY -- 1.4% @644 Tandberg ASA (Information)........................ 6,971 -------- SINGAPORE -- 1.4% 820 Flextronics International Ltd.(a) (Computer and Electronic Product Manufacturing)............... 6,858 -------- SOUTH KOREA -- 2.3% 83 Samsung Electronics Co. Ltd. GDR(e) (Computer and Electronic Product Manufacturing)............... 11,736 -------- SPAIN -- 0.5% 62 Banco Popular Espanol (Finance and Insurance)..... 2,666 -------- SWEDEN -- 1.6% @243 SKF AB B Shares (Fabricated Metal Product Manufacturing).................................. 6,092 303 Swedish Match AB (Beverage and Tobacco Product Manufacturing).................................. 2,182 -------- 8,274 -------- SWITZERLAND -- 3.5% 661 Credit Suisse Group (Finance and Insurance)....... 12,636 71 Roche Holding AG (Health Care and Social Assistance)..................................... 5,054 -------- 17,690 -------- UNITED KINGDOM -- 8.7% 173 AstraZeneca plc (Health Care and Social Assistance)..................................... 6,440 491 Cable & Wireless plc (Information)................ 1,137 884 Capita Group plc (Public Administration).......... 3,098 4 GlaxoSmithKline plc (Health Care and Social Assistance)..................................... 80 605 Imperial Tobacco Group plc (Beverage and Tobacco Product Manufacturing).......................... 9,459 1,028 P & O Princess Cruises plc (Scenic and Sightseeing Transportation)................................. 7,539 254 Reckitt Benckiser plc (Soap, Cleaning Compound, and Toilet Manufacturing)....................... 4,617 7,356 Vodafone Group plc (Information).................. 11,825 -------- 44,195 --------
The accompanying notes are an integral part of this financial statement. 65 THE HARTFORD GLOBAL LEADERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) UNITED STATES -- 44.1% 112 3M Co. (Paper Manufacturing)...................... $ 14,217 145 Abbott Laboratories (with rights) (Health Care and Social Assistance).............................. 6,088 98 American Standard Companies, Inc.(a) (Machinery Manufacturing).................................. 6,537 824 AOL Time Warner, Inc. (with rights)(a) (Information)................................... 12,160 610 AT&T Corp. (Information).......................... 7,957 42 Bank of America Corp. (Finance and Insurance)..... 2,946 115 Bank One Corp. (Finance and Insurance)............ 4,420 355 Cadence Design Systems, Inc.(a) (Professional, Scientific, and Technical Services)............. 3,597 181 Cisco Systems, Inc. (with rights)(a) (Computer and Electronic Product Manufacturing)............... 2,028 470 Citigroup, Inc. (Finance and Insurance)........... 17,383 84 Deere & Co. (with rights) (Machinery Manufacturing).................................. 3,920 397 Dell Computer Corp. (with rights)(a) (Computer and Electronic Product Manufacturing)............... 11,364 159 Du Pont (E.I.) de Nemours & Co. (Chemical Manufacturing).................................. 6,571 @146 eBay, Inc.(a) (Retail Trade)...................... 9,230 174 Exxon Mobil Corp. (Petroleum and Coal Products Manufacturing).................................. 5,840 32 Gannett Co., Inc. (with rights) (Arts, Entertainment, and Recreation).................. 2,422 56 Genentech, Inc.(a) (Health Care and Social Assistance)..................................... 1,909 134 General Electric Co. (Electrical Equipment, Appliance Manufacturing)........................ 3,396 29 Goldman Sachs Group, Inc. (Finance and Insurance)...................................... 2,062 124 Halliburton Co. (with rights) (Petroleum and Coal Products Manufacturing)......................... 2,013 586 Hewlett-Packard Co. (Computer and Electronic Product Manufacturing).......................... 9,265 87 IDEC Pharmaceuticals Corp.(a) (Health Care and Social Assistance).............................. 3,995 157 Lilly (Eli) & Co. (with rights) (Health Care and Social Assistance).............................. 8,714
MARKET SHARES VALUE(C) - --------- -------- UNITED STATES -- (CONTINUED) 160 Medtronic, Inc. (with rights) (Health Care and Social Assistance).............................. $ 7,172 151 Merrill Lynch & Co., Inc. (Finance and Insurance)...................................... 5,727 260 Microsoft Corp.(a) (Information).................. 13,891 581 Pfizer, Inc. (with rights) (Health Care and Social Assistance)..................................... 18,471 98 R.J. Reynolds Tobacco Holdings, Inc. (with rights) (Beverage and Tobacco Product Manufacturing).... 3,994 641 Schering-Plough Corp. (with rights) (Health Care and Social Assistance).......................... 13,679 68 Schlumberger Ltd. (Petroleum and Coal Products Manufacturing).................................. 2,735 75 SYSCO Corp. (with rights) (Wholesale Trade)....... 2,376 122 Viacom, Inc. Class B(a) (Arts, Entertainment, and Recreation)..................................... 5,456 32 Wal-Mart Stores, Inc. (Retail Trade).............. 1,697 -------- 223,232 -------- Total common stock (cost $468,574)................ $490,687 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 4.0% FINANCE -- 4.0% $20,315 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)....................................... $ 20,315 2 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61% (Finance and Insurance)...................................... 2 -------- Total short-term investments (cost $20,317)....... $ 20,317 ======== Total investments in securities (cost $488,891)(b).................................... $511,004 ========
The accompanying notes are an integral part of this financial statement. 66 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $511,004 Cash........................................................ 4 Foreign currency on deposit with custodian (cost $291)...... 295 Collateral for securities lending transactions (Note 2d).... 36,186 Unrealized appreciation on foreign currency contracts..... 6 Receivables: Investment securities sold................................ 14,260 Fund shares sold.......................................... 1,750 Dividends and interest.................................... 630 Other assets................................................ 109 -------- Total assets................................................ 564,244 -------- LIABILITIES Unrealized depreciation on foreign currency contracts....... 54 Payables: Payable upon return of securities loaned (Note 2d)........ 36,186 Investment securities purchased........................... 19,912 Fund shares redeemed...................................... 1,440 Payable for investment management and advisory fees (Note 3)...................................................... 341 Payable for distribution fees (Note 3).................... 51 Accrued Expenses.......................................... 232 -------- Total liabilities........................................... 58,216 -------- Net assets.................................................. $506,028 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 45,493 shares outstanding............................................... $ 720,079 Accumulated undistributed net investment income............. 48 Accumulated net realized loss on investments and foreign currency transactions..................................... (236,234) Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency.......................................... 22,135 --------- Net assets.................................................. $ 506,028 =========
Class A Net asset value per share ($354,407 / 31,603 shares outstanding)........................... $11.21 ====== Maximum offering price per share ($11.21 / 94.5%).............................. $11.86 ====== Class B Net asset value per share ($70,280 / 6,457 shares outstanding)........................... $10.88 ====== Class C Net asset value per share ($75,174 / 6,895 shares outstanding)........................... $10.90 ====== Maximum offering price per share($10.90 / 99.0%)......................... $11.01 ====== Class Y Net asset value per share ($6,167 / 538 shares outstanding).................................. $11.45 ======
(a) Presently non-incoming producing (b) At October 31, 2002, the cost of securities for federal income tax purposes is $502,241 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $ 19,557 Unrealized depreciation.................................................. (10,794) -------- Net unrealized appreciation.............................................. $ 8,763 ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets (e) Securities issued within the terms of a private placement memorandum, exempt form registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of directors, these issues ate determined to be liquid. The aggregate value of these securities at October 31, 2002, was $11,736, which represents 2.32% of total net assets @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- ---------- -------------- Euro (Sell) $5,206 $5,176 11/01/2002 $(30) Euro (Sell) 2,867 2,864 11/05/2002 (3) Japanese Yen (Sell) 963 955 11/01/2002 (8) British Pound (Sell) 3,406 3,393 11/01/2002 (13) British Pound (Buy) 1,344 1,338 11/04/2002 6 British Pound (Buy) 1,139 1,139 11/05/2002 -- ---- $(48) ====
The accompanying notes are an integral part of this financial statement. 67 THE HARTFORD FOCUS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 98.0% BASIC MATERIALS -- 2.8% 120 Dow Chemical Co. ................................. $ 3,119 -------- CAPITAL GOODS -- 5.6% 100 Boeing Co. ....................................... 2,975 32 Northrop Grumman Corp. (with rights).............. 3,331 -------- 6,306 -------- CONSUMER CYCLICAL -- 6.2% 120 Home Depot, Inc. ................................. 3,466 150 Safeway, Inc.(a).................................. 3,465 -------- 6,931 -------- CONSUMER STAPLES -- 5.7% 107 Pepsi Bottling Group, Inc......................... 2,876 77 Weyerhaeuser Co. ................................. 3,470 -------- 6,346 -------- ENERGY -- 6.2% 101 Exxon Mobil Corp. ................................ 3,410 220 Halliburton Co. (with rights)..................... 3,559 -------- 6,969 -------- FINANCE AND INSURANCE -- 24.9% 93 American Express Co. ............................. 3,379 85 American International Group, Inc. ............... 5,317 160 Citigroup, Inc. .................................. 5,912 91 Franklin Resources, Inc. ......................... 2,999 45 Goldman Sachs Group, Inc. ........................ 3,222 140 Household International, Inc. (with rights)................................... 3,326 97 Merrill Lynch & Co., Inc. ........................ 3,692 -------- 27,847 -------- HEALTH CARE -- 20.7% 80 Abbott Laboratories (with rights)................. 3,350 128 Baxter International, Inc. (with rights).......... 3,212 100 Genzyme Corp. -- General Division(a).............. 2,785 180 Pfizer, Inc. (with rights)........................ 5,719 200 Schering-Plough Corp. (with rights)............... 4,270 112 Wyeth (with rights)............................... 3,735 -------- 23,071 -------- TECHNOLOGY -- 25.9% 390 AOL Time Warner, Inc. (with rights)(a)............ 5,752 259 Cisco Systems, Inc. (with rights)(a).............. 2,899 260 Hewlett-Packard Co. .............................. 4,108 200 Intel Corp. ...................................... 3,460 49 International Business Machines Corp. ............ 3,900 100 Microsoft Corp.(a)................................ 5,347 132 SBC Communications, Inc. ......................... 3,392 -------- 28,858 -------- Total common stock (cost $134,807)................ $109,447 ======== PRINCIPAL MARKET AMOUNT VALUE(C) - --------- -------- SHORT-TERM INVESTMENTS -- 2.3% FINANCE -- 2.3% $2,601 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 2,601 -------- Total short-term investments (cost $2,601)................................... $ 2,601 ======== Total investments in securities (cost $137,408)(b).................................... $112,048 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $112,048 Cash........................................................ 1 Receivables: Investment securities sold................................ 587 Fund shares sold.......................................... 171 Dividends and interest.................................... 128 Other assets................................................ 33 -------- Total assets................................................ 112,968 -------- LIABILITIES Payables: Investment securities purchased........................... 973 Fund shares redeemed...................................... 194 Payable for investment management and advisory fees (Note 3)...................................................... 91 Payable for distribution fees (Note 3).................... 12 Accrued Expenses.......................................... 48 -------- Total liabilities........................................... 1,318 -------- Net assets.................................................. $111,650 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 15,313 shares outstanding............................................... $154,438 Accumulated net realized loss on investments................ (17,428) Unrealized depreciation of investments in securities........ (25,360) -------- Net assets.................................................. $111,650 ========
Class A Net asset value per share ($66,432 / 9,073 shares outstanding)........................... $7.32 ===== Maximum offering price per share ($7.32 / 94.5%)............................... $7.75 ===== Class B Net asset value per share ($18,862 / 2,602 shares outstanding)........................... $7.25 ===== Class C Net asset value per share ($25,847 / 3,569 shares outstanding)........................... $7.24 ===== Maximum offering price per share ($7.24 / 99.0%)............................... $7.31 ===== Class Y Net asset value per share ($509 / 69 shares outstanding).................................. $7.37 =====
The accompanying notes are an integral part of this financial statement. 68 - -------------------------------------------------------------------------------- (a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $139,052 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $ 1,627 Unrealized depreciation.................................................. (28,631) -------- Net unrealized depreciation.............................................. $(27,004) ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 69 THE HARTFORD GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 99.4% CONSUMER CYCLICAL -- 7.9% 141 Bed Bath & Beyond, Inc.(a)........................ $ 4,996 54 eBay, Inc.(a)..................................... 3,448 91 Home Depot, Inc. ................................. 2,640 208 Lowe's Companies, Inc. (with rights).............. 8,671 107 SYSCO Corp. (with rights)......................... 3,396 167 TJX Companies, Inc. .............................. 3,423 -------- 26,574 -------- CONSUMER STAPLES -- 1.3% 107 Philip Morris Companies, Inc. .................... 4,364 -------- FINANCE AND INSURANCE -- 17.0% 195 American International Group, Inc. ............... 12,185 50 Anthem, Inc.(a)................................... 3,131 373 Citigroup, Inc. .................................. 13,775 83 Countrywide Credit Industries, Inc. .............. 4,196 74 Freddie Mac....................................... 4,551 142 Household International, Inc. (with rights)....... 3,369 64 MBIA, Inc. ....................................... 2,807 110 Merrill Lynch & Co., Inc. ........................ 4,171 161 St. Paul Companies, Inc. ......................... 5,277 46 Wellpoint Health Networks, Inc.(a)................ 3,490 -------- 56,952 -------- HEALTH CARE -- 34.3% 210 Abbott Laboratories (with rights)................. 8,809 66 AmerisourceBergen Corp. (with rights)............. 4,732 46 Amgen, Inc. (with rights)(a)...................... 2,142 286 AstraZeneca plc ADR............................... 10,739 194 Becton, Dickinson & Co. (with rights)............. 5,713 223 CVS Corp.......................................... 6,178 71 Forest Laboratories, Inc.(a)...................... 6,987 71 Genentech, Inc.(a)................................ 2,420 173 Genzyme Corp. -- General Division(a).............. 4,829 77 Gilead Sciences, Inc.(a).......................... 2,668 72 HCA, Inc. ........................................ 3,127 186 Laboratory Corp. of America Holdings (with rights)(a)...................................... 4,480 190 Lilly (Eli) & Co. (with rights)................... 10,545 110 McKesson Corp. ................................... 3,294 346 Pharmacia Corp. (with rights)..................... 14,861 802 Schering-Plough Corp. (with rights)............... 17,129 @193 Serono S.A. ADR................................... 2,716 109 Wyeth (with rights)............................... 3,642 -------- 115,011 -------- SERVICES -- 13.3% 224 Accenture Ltd. Class A(a)......................... 3,784 79 Automatic Data Processing, Inc. .................. 3,377 252 Clear Channel Communications, Inc.(a)............. 9,348 426 Liberty Media Corp. Class A(a).................... 3,523 182 Omnicom Group, Inc. .............................. 10,489 344 Univision Communications, Inc. Class A(a)......... 8,913 115 Viacom, Inc. Class B(a)........................... 5,148 -------- 44,582 --------
MARKET SHARES VALUE(C) - --------- -------- TECHNOLOGY -- 25.6% 460 Cisco Systems, Inc. (with rights)(a).............. $ 5,142 223 Concord EFS, Inc.(a).............................. 3,184 548 Dell Computer Corp. (with rights)(a).............. 15,693 160 EchoStar Communications Corp. Class A(a).......... 3,254 387 First Data Corp. ................................. 13,522 482 General Electric Co. ............................. 12,176 198 Intel Corp. ...................................... 3,420 101 Intuit, Inc. (with rights)(a)..................... 5,244 78 Maxim Integrated Products, Inc.(a)................ 2,499 340 Microsoft Corp.(a)................................ 18,174 224 Nokia Oyj ADR..................................... 3,718 -------- 86,026 -------- Total common stock (cost $353,438)................ $333,509 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 1.1% FINANCE -- 1.1% $3,663 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 3,663 8 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. 8 -------- Total short-term investments (cost $3,671)........ $ 3,671 ======== Total investments in securities (cost $357,109)(b).................................... $337,180 ========
The accompanying notes are an integral part of this financial statement. 70 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $337,180 Cash........................................................ 1 Collateral for securities lending transactions (Note 2d).... 1,478 Receivables: Investment securities sold................................ 1,328 Fund shares sold.......................................... 249 Dividends and interest.................................... 334 Other assets................................................ 55 -------- Total assets................................................ 340,625 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)........ 1,478 Investment securities purchased........................... 2,856 Fund shares redeemed...................................... 329 Payable for investment management and advisory fees (Note 3)...................................................... 231 Payable for distribution fees (Note 3).................... 24 Accrued Expenses.......................................... 55 -------- Total liabilities........................................... 4,973 -------- Net assets.................................................. $335,652 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 28,650 shares outstanding............................................... $448,412 Accumulated net realized loss on investments................ (92,831) Unrealized depreciation of investments in securities........ (19,929) -------- Net assets.................................................. $335,652 ========
Class A Net assets value per share ($5,970 / 502 shares out- standing)............................................... $11.90 ====== Maximum offering price per share ($11.90 / 94.5%)......... $12.59 ====== Class B Net assets value per share ($1,698 / 157 shares out- standing)............................................... $10.80 ====== Class C Net assets value per share ($1,480 / 137 shares out- standing)............................................... $10.80 ====== Maximum offering price per share ($10.80 / 99.0%)......... $10.91 ====== Class H Net assets value per share ($26,002 / 2,405 shares outstanding)............................................ $10.81 ====== Class L Net assets value per share ($274,683 / 23,058 shares outstanding)............................................ $11.91 ====== Maximum offering price per share ($11.91 / 95.25%)........ $12.50 ====== Class M Net assets value per share ($21,478 / 1,989 shares outstanding)............................................ $10.80 ====== Class N Net assets value per share ($4,340 / 402 shares out- standing)............................................... $10.80 ====== Class Y Net assets value per share ($1 / @@ shares outstanding)... $11.94 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $369,609 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation........................... $ 2,508 Unrealized depreciation........................... (34,937) -------- Net unrealized depreciation....................... $(32,429) ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.12% of total net assets as of October 31, 2002. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 71 THE HARTFORD STOCK FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- 98.3% BASIC MATERIALS -- 6.1% 900 Alcoa, Inc. ...................................... $ 19,854 822 Dow Chemical Co. ................................. 21,364 518 Gillette Co. (with rights)........................ 15,469 448 International Paper Co. .......................... 15,648 450 Kimberly-Clark Corp. ............................. 23,175 ---------- 95,510 ---------- CAPITAL GOODS -- 3.6% 700 Boeing Co. ....................................... 20,825 145 Illinois Tool Works, Inc. ........................ 8,921 155 Northrop Grumman Corp. (with rights).............. 15,965 186 United Technologies Corp. ........................ 11,446 ---------- 57,157 ---------- CONSUMER CYCLICAL -- 7.6% 248 Caterpillar, Inc. (with rights)................... 10,135 560 Costco Wholesale Corp.(a)......................... 19,004 832 Home Depot, Inc. ................................. 24,037 400 Masco Corp. (with rights)......................... 8,222 417 McDonald's Corp. ................................. 7,555 513 NIKE, Inc. Class B................................ 24,194 1,150 Safeway, Inc.(a).................................. 26,572 ---------- 119,719 ---------- CONSUMER STAPLES -- 4.1% 434 Estee Lauder Companies, Inc. Class A.............. 12,641 333 General Mills, Inc. .............................. 13,755 667 PepsiCo, Inc. .................................... 29,415 105 Procter & Gamble Co. ............................. 9,314 ---------- 65,125 ---------- ENERGY -- 6.8% 434 Anadarko Petroleum Corp. (with rights)............ 19,348 278 Chevron Texaco Corp. (with rights)................ 18,826 1,183 Exxon Mobil Corp. ................................ 39,810 1,084 Halliburton Co. (with rights)..................... 17,537 300 Schlumberger Ltd. ................................ 12,049 ---------- 107,570 ---------- FINANCE AND INSURANCE -- 22.6% 478 American Express Co. ............................. 17,385 790 American International Group, Inc. ............... 49,424 179 Bank of America Corp. ............................ 12,466 700 Bank One Corp. ................................... 26,999 1,572 Citigroup, Inc. .................................. 58,078 223 Fannie Mae........................................ 14,897 694 FleetBoston Financial Corp. (with rights)......... 16,223 618 Franklin Resources, Inc. ......................... 20,404 226 Goldman Sachs Group, Inc. ........................ 16,189 920 Household International, Inc. (with rights)....... 21,869 634 Marsh & McLennan Companies, Inc. (with rights).... 29,619 703 Merrill Lynch & Co., Inc. ........................ 26,671 703 State Street Corp. (with rights).................. 29,100
MARKET SHARES VALUE(C) - --------- ---------- 500 U.S. Bancorp (with rights)........................ $ 10,545 197 Wachovia Corp. (with rights)...................... 6,843 ---------- 356,712 ---------- HEALTH CARE -- 16.6% 770 Abbott Laboratories (with rights)................. 32,231 384 Amgen, Inc. (with rights)(a)...................... 17,860 951 Baxter International, Inc. (with rights).......... 23,804 930 CVS Corp. ........................................ 25,789 700 Genzyme Corp. -- General Division(a).............. 19,495 334 Lilly (Eli) & Co. (with rights)................... 18,543 1,400 Pfizer, Inc. (with rights)........................ 44,478 300 Pharmacia Corp. (with rights)..................... 12,891 1,224 Schering-Plough Corp. (with rights)............... 26,135 154 Waters Corp. (with rights)(a)..................... 3,888 1,111 Wyeth (with rights)............................... 37,229 ---------- 262,343 ---------- SERVICES -- 6.8% 1,049 Accenture Ltd. Class A(a)......................... 17,707 500 Automatic Data Processing, Inc. .................. 21,265 446 Computer Sciences Corp.(a)........................ 14,417 230 FedEx Corp. ...................................... 12,234 222 Gannett Co., Inc. (with rights)................... 16,879 1,749 Liberty Media Corp. Class A(a).................... 14,466 468 Waste Management, Inc. ........................... 10,776 ---------- 107,744 ---------- TECHNOLOGY -- 21.6% 3,108 AOL Time Warner, Inc. (with rights)(a)............ 45,850 714 AT&T Corp. ....................................... 9,309 1,730 Cisco Systems, Inc. (with rights)(a).............. 19,338 1,788 General Electric Co. ............................. 45,152 853 General Motors Corp. Class H -- Hughes Electronics Corp.(a)........................................ 8,405 1,609 Hewlett-Packard Co. .............................. 25,418 1,948 Intel Corp. ...................................... 33,699 497 International Business Machines Corp. ............ 39,241 1,111 Microsoft Corp.(a)................................ 59,421 1,740 Oracle Corp. (with rights)(a)..................... 17,835 1,004 SBC Communications, Inc. ......................... 25,765 308 Verizon Communications, Inc. ..................... 11,642 ---------- 341,075 ---------- UTILITIES -- 2.5% 465 Exelon Corp. ..................................... 23,431 268 FPL Group, Inc. (with rights)..................... 15,807 ---------- 39,238 ---------- Total common stock (cost $2,044,552).............. $1,552,193 ==========
The accompanying notes are an integral part of this financial statement. 72 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(C) - --------- ---------- SHORT-TERM INVESTMENTS -- 2.1% FINANCE -- 2.1% $32,647 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 32,647 ---------- Total short-term investments (cost $32,647)....... $ 32,647 ========== Total investments in securities (cost $2,077,199)(b).................................. $1,584,840 ==========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $1,584,840 Receivables: Fund shares sold............................. 1,579 Dividends and interest....................... 1,593 Other assets................................... 318 ---------- Total assets................................... 1,588,330 ---------- LIABILITIES Payables: Investment securities purchased.............. 4,802 Fund shares redeemed......................... 2,713 Payable for investment management and advisory fees (Note 3)..................... 925 Payable for distribution fees (Note 3)....... 187 Variation Margin Payable..................... 661 ---------- Total liabilities.............................. 9,288 ---------- Net assets..................................... $1,579,042 ==========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 117,220 shares outstanding................... $2,449,983 Accumulated net realized loss on investments... (378,582) Unrealized depreciation of investments in securities................................... (492,359) ---------- Net assets..................................... $1,579,042 ==========
Class A Net asset value per share ($880,371 / $64,127 shares outstanding)........................... $13.73 ====== Maximum offering price per share ($13.73 / 94.5%).............................. $14.53 ====== Class B Net asset value per share ($351,382 / 26,831 shares outstanding)........................... $13.10 ====== Class C Net asset value per share ($313,173 / 23,851 shares outstanding)........................... $13.13 ====== Maximum offering price per share ($13.13 / 99.0%).............................. $13.26 ====== Class Y Net asset value per share ($34,116 / 2,411 shares outstanding)........................... $14.15 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $2,081,262 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................... $ 10,841 Unrealized depreciation.................... (507,263) --------- Net unrealized depreciation................ $(496,422) =========
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets.
The accompanying notes are an integral part of this financial statement. 73 THE HARTFORD VALUE FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 99.1% BASIC MATERIALS -- 12.5% 33 Alcoa, Inc. ...................................... $ 722 16 Ashland, Inc. (with rights)....................... 425 24 Dow Chemical Co. ................................. 613 29 Du Pont (E.I.) de Nemours & Co. .................. 1,196 33 Goodyear Tire & Rubber Co. (with rights).......... 237 18 Kimberly-Clark Corp. ............................. 907 10 Nucor Corp. (with rights)......................... 400 33 Stanley Works..................................... 1,075 ------- 5,575 ------- CAPITAL GOODS -- 1.8% 4 Illinois Tool Works, Inc. ........................ 270 45 Teradyne, Inc. (with rights)(a)................... 544 ------- 814 ------- CONSUMER CYCLICAL -- 7.8% 34 Autonation, Inc.(a)............................... 358 18 Caterpillar, Inc. (with rights)................... 731 44 Dollar General Corp. (with rights)................ 616 8 Family Dollar Stores, Inc. ....................... 249 18 McDonald's Corp. ................................. 333 26 NIKE, Inc. Class B................................ 1,208 ------- 3,495 ------- CONSUMER STAPLES -- 4.8% 20 Kellogg Co. ...................................... 624 22 PepsiCo, Inc. .................................... 953 13 Weyerhaeuser Co. ................................. 580 ------- 2,157 ------- ENERGY -- 9.3% 11 Chevron Texaco Corp. (with rights)................ 757 62 Exxon Mobil Corp. ................................ 2,084 26 GlobalSantaFe Corp. .............................. 619 23 National Fuel Gas Co. ............................ 462 5 Progress Energy, Inc. ............................ 225 ------- 4,147 FINANCE AND INSURANCE -- 30.5% 32 ACE Ltd. ADR (with rights)........................ 999 15 Archstone-Smith Trust (REIT)...................... 353 19 Bank of America Corp. ............................ 1,326 11 Chubb Corp. (with rights)......................... 598 10 CIGNA Corp. (with rights)......................... 380 52 Citigroup, Inc. .................................. 1,933 11 Comerica, Inc. (with rights)...................... 467 11 Fannie Mae........................................ 749 9 Goldman Sachs Group, Inc. ........................ 630 10 Marsh & McLennan Companies, Inc. (with rights).... 486 44 National City Corp. .............................. 1,183 9 PNC Financial Services Group, Inc. (with rights)......................................... 350 19 St. Paul Companies, Inc. ......................... 626 10 StanCorp Financial Group, Inc. ................... 518 6 Travelers Property Casualty Corp. Class A(a)...................................... 85
MARKET SHARES VALUE(C) - --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 44 Washington Mutual, Inc. (with rights)............. $ 1,590 26 Wells Fargo & Co. (with rights)................... 1,307 ------- 13,580 ------- HEALTH CARE -- 5.6% 10 Bard (C.R.), Inc. (with rights)................... 554 18 CVS Corp. ........................................ 507 23 Pharmacia Corp. (with rights)..................... 985 22 Schering-Plough Corp. (with rights)............... 463 ------- 2,509 ------- SERVICES -- 3.7% 13 BearingPoint, Inc. (with rights)(a)............... 99 47 Comcast Corp. Special Class A(a).................. 1,086 22 Republic Services, Inc.(a)........................ 455 ------- 1,640 ------- TECHNOLOGY -- 17.8% 34 Agere Systems, Inc. Class A(a).................... 30 47 AOL Time Warner, Inc. (with rights)(a)............ 698 47 AT&T Corp. ....................................... 613 3 AT&T Wireless Services, Inc.(a)................... 21 14 Beckman Coulter, Inc. (with rights)............... 376 40 BellSouth Corp. (with rights)..................... 1,041 16 Emerson Electric Co. (with rights)................ 751 71 Hewlett-Packard Co. .............................. 1,126 34 Intel Corp. ...................................... 579 33 Micron Technology, Inc.(a)........................ 528 50 SBC Communications, Inc. ......................... 1,273 24 Verizon Communications, Inc. ..................... 891 ------- 7,927 ------- TRANSPORTATION -- 3.0% 16 Shell Transport & Trading Co. plc ADR............. 610 49 Southwest Airlines Co. (with rights).............. 715 ------- 1,325 ------- UTILITIES -- 2.3% 5 Dominion Resources, Inc. ......................... 243 10 Exelon Corp. ..................................... 499 9 Scana Corp. ...................................... 274 ------- 1,016 ------- Total common stock (cost $52,221)................. $44,185 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 0.8% FINANCE -- 0.8% $ 353 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 353 ------- Total short-term investments (cost $353).......... $ 353 ======= Total investments in securities (cost $52,574)(b)..................................... $44,538 =======
The accompanying notes are an integral part of this financial statement. 74 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $44,538 Cash........................................................ 1 Receivables: Investment securities sold................................ 191 Fund shares sold.......................................... 26 Dividends and interest.................................... 99 Other assets................................................ 18 ------- Total assets................................................ 44,873 ------- LIABILITIES Payables: Investment securities purchased........................... 221 Fund shares redeemed...................................... 22 Payable for investment management and advisory fees (Note 3)...................................................... 29 Payable for distribution fees (Note 3).................... 5 Accrued Expenses.......................................... 24 ------- Total liabilities........................................... 301 ------- Net assets.................................................. $44,572 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 5,892 shares outstanding....................... $56,599 Accumulated undistributed net investment income......................................... 194 Accumulated net realized loss on investments..... (4,185) Unrealized depreciation of investments in securities..................................... (8,036) ------- Net assets....................................... $44,572 =======
Class A Net asset value per share ($30,010 / 3,953 shares outstanding)........................... $7.59 ===== Maximum offering price per share ($7.59 / 94.5%)............................... $8.03 ===== Class B Net asset value per share ($5,222 / 696 shares outstanding).................................. $7.51 ===== Class C Net asset value per share ($9,110 / 1,213 shares outstanding).................................. $7.51 ===== Maximum offering price per share ($7.51 / 99.0%)............................... $7.59 ===== Class Y Net asset value per share ($230 / 30 shares outstanding).................................. $7.64 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $52,692 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $ 498 Unrealized depreciation.................................................. (8,652) ------- Net unrealized depreciation.............................................. $(8,154) =======
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 1.37% of total net assets as of October 31, 2002.
The accompanying notes are an integral part of this financial statement. 75 THE HARTFORD GROWTH & INCOME FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- 98.1% BASIC MATERIALS -- 5.7% 82 Cambrex Corp. .................................... $ 2,288 122 Du Pont (E.I.) de Nemours & Co. .................. 5,020 78 Engelhard Corp. (with rights)..................... 1,730 102 Freeport-McMoRan Copper & Gold, Inc. Class B (with rights)(a)........................ 1,251 73 Gillette Co. (with rights)........................ 2,169 110 Kimberly-Clark Corp. ............................. 5,675 11 Precision Castparts Corp. ........................ 208 -------- 18,341 -------- CAPITAL GOODS -- 2.7% 60 ITT Industries, Inc. ............................. 3,899 35 KLA-Tencor Corp.(a)............................... 1,235 56 United Technologies Corp. ........................ 3,460 -------- 8,594 -------- CONSUMER CYCLICAL -- 9.2% 64 Bed Bath & Beyond, Inc.(a)........................ 2,266 105 Dillard's, Inc. Class A (with rights)............. 1,725 54 General Motors Corp. ............................. 1,779 129 Home Depot, Inc. ................................. 3,732 14 Kroger Co. (with rights)(a)....................... 209 88 Lowe's Companies, Inc. (with rights).............. 3,672 91 Masco Corp. (with rights)......................... 1,873 102 Mattel, Inc. (with rights)........................ 1,880 83 McDonald's Corp. ................................. 1,496 38 NIKE, Inc. Class B................................ 1,779 66 Safeway, Inc.(a).................................. 1,513 135 Wal-Mart Stores, Inc. ............................ 7,240 -------- 29,164 -------- CONSUMER STAPLES -- 5.1% 149 Pepsi Bottling Group, Inc. ....................... 4,010 109 PepsiCo, Inc. .................................... 4,794 96 Philip Morris Companies, Inc. .................... 3,916 22 Procter & Gamble Co. ............................. 1,937 76 Sara Lee Corp. (with rights)...................... 1,737 -------- 16,394 -------- ENERGY -- 6.4% 32 Amerada Hess Corp. ............................... 1,626 83 Burlington Resources, Inc. (with rights).......... 3,403 118 ConocoPhillips (with rights)...................... 5,728 156 Exxon Mobil Corp. ................................ 5,248 110 Halliburton Co. (with rights)..................... 1,773 90 Sunoco, Inc. (with rights)........................ 2,686 -------- 20,464 -------- FINANCE AND INSURANCE -- 22.2% 53 Ambac Financial Group, Inc. ...................... 3,257 111 American International Group, Inc. ............... 6,929 36 Anthem, Inc.(a)................................... 2,255 70 Bank of America Corp. ............................ 4,865 90 Bank One Corp. ................................... 3,471 63 Capital One Financial Corp. ...................... 1,917 369 Citigroup, Inc. .................................. 13,644 78 Fannie Mae........................................ 5,208
MARKET SHARES VALUE(C) - --------- -------- FINANCE AND INSURANCE -- (CONTINUED) 53 Golden West Financial Corp. ...................... $ 3,660 210 KeyCorp........................................... 5,118 30 Lehman Brothers Holdings, Inc. ................... 1,577 46 Marsh & McLennan Companies, Inc. (with rights).... 2,149 71 MBIA, Inc. ....................................... 3,104 159 Merrill Lynch & Co., Inc. ........................ 6,042 7 S & P 500 Depositary Receipt...................... 630 96 UnionBanCal Corp. ................................ 4,078 80 Wachovia Corp. (with rights)...................... 2,790 -------- 70,694 -------- HEALTH CARE -- 16.7% 65 Abbott Laboratories (with rights)................. 2,709 55 Becton, Dickinson & Co. (with rights)............. 1,629 54 Cardinal Health, Inc. ............................ 3,710 40 Cephalon, Inc.(a)................................. 2,010 108 CVS Corp. ........................................ 2,992 123 Genzyme Corp. -- General Division(a).............. 3,426 127 King Pharmaceuticals, Inc.(a)..................... 1,943 76 Lilly (Eli) & Co. (with rights)................... 4,207 116 McKesson Corp. ................................... 3,449 155 Pfizer, Inc. (with rights)........................ 4,928 197 Pharmacia Corp. (with rights)..................... 8,473 318 Schering-Plough Corp. (with rights)............... 6,783 126 Watson Pharmaceuticals, Inc.(a)................... 3,472 100 Wyeth (with rights)............................... 3,333 -------- 53,064 -------- SERVICES -- 4.3% 33 Automatic Data Processing, Inc. .................. 1,387 75 Comcast Corp. Special Class A(a).................. 1,724 62 FedEx Corp. ...................................... 3,308 47 McClatchy Co. Class A............................. 2,920 38 Omnicom Group, Inc. .............................. 2,161 84 USA Interactive(a)................................ 2,132 -------- 13,632 -------- TECHNOLOGY -- 21.0% 251 AOL Time Warner, Inc. (with rights)(a)............ 3,708 94 Applied Materials, Inc.(a)........................ 1,413 376 AT&T Corp. ....................................... 4,899 217 AT&T Wireless Services, Inc.(a)................... 1,492 509 Cisco Systems, Inc. (with rights)(a).............. 5,688 85 Dell Computer Corp. (with rights)(a).............. 2,435 160 First Data Corp. ................................. 5,587 297 General Electric Co. ............................. 7,502 269 Hewlett-Packard Co. .............................. 4,244 236 Intel Corp. ...................................... 4,091 33 International Business Machines Corp. ............ 2,621 73 Lexmark International, Inc. (with rights)(a)...... 4,361 74 Micron Technology, Inc.(a)........................ 1,179 228 Microsoft Corp.(a)................................ 12,213 587 Qwest Communications International, Inc. ......... 1,991 134 SBC Communications, Inc. ......................... 3,433 -------- 66,857 --------
The accompanying notes are an integral part of this financial statement. 76 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- -------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 2.2% 97 Carnival Corp. ................................... $ 2,528 94 CSX Corp. (with rights)........................... 2,597 69 USFreightways Corp. .............................. 1,931 -------- 7,056 -------- UTILITIES -- 2.6% 109 Exelon Corp. ..................................... 5,479 42 Pinnacle West Capital Corp. (with rights)......... 1,208 49 PPL Corp. ........................................ 1,696 -------- 8,383 -------- Total common stock (cost $366,370)................ $312,643 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 1.9% FINANCE -- 1.9% $6,021 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 6,021 -------- Total short-term investments (cost $6,021)........ $ 6,021 ======== Total investments in securities (cost $372,391)(b).................................... $318,664 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $318,664 Cash........................................................ 200 Receivables: Investment securities sold................................ 207 Fund shares sold.......................................... 670 Dividends and interest.................................... 387 Other assets................................................ 115 -------- Total assets................................................ 320,243 -------- LIABILITIES Payables: Investment securities purchased........................... 796 Fund shares redeemed...................................... 368 Payable for investment management and advisory fees (Note 3)...................................................... 207 Payable for distribution fees (Note 3).................... 32 Accrued Expenses.......................................... 134 Variation Margin Payable.................................. 15 -------- Total liabilities........................................... 1,552 -------- Net assets.................................................. $318,691 ========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 38,116 shares outstanding............................................... $ 478,133 Accumulated net realized loss on investments................ (105,670) Unrealized depreciation of investments in securities........ (53,772) --------- Net assets.................................................. $ 318,691 =========
Class A Net asset value per share ($230,545 / 27,336 shares outstanding)........................... $8.43 ===== Maximum offering price per share ($8.43 / 94.5%)............................... $8.92 ===== Class B Net asset value per share ($43,431 / 5,315 shares outstanding)........................... $8.17 ===== Class C Net asset value per share ($44,054 / 5,388 shares outstanding)........................... $8.18 ===== Maximum offering price per share ($8.18 / 99.0%)............................... $8.26 ===== Class Y Net asset value per share ($661 / 77 shares outstanding).................................. $8.63 =====
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes was $375,206 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation..................... $ 6,466 Unrealized depreciation..................... (63,008) -------- Net unrealized depreciation................. $(56,542) ========
(c) See Note 2b of acompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (e) Cash of $257 pledged as initial margin deposit for 14 open Standard & Poor's 500 December 2002 long futures contracts. As of October 31, 2002, these contracts had a value of $3,099 with unrealized depreciation of $45.
The accompanying notes are an integral part of this financial statement. 77 THE HARTFORD DIVIDEND & GROWTH FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- 94.2% BASIC MATERIALS -- 10.2% 297 Abitibi-Consolidated, Inc. ....................... $ 1,886 183 Akzo Nobel N.V. ADR............................... 5,470 190 Alcan, Inc. ...................................... 5,343 866 Alcoa, Inc. ...................................... 19,104 121 Bowater, Inc. .................................... 4,094 268 Dow Chemical Co. ................................. 6,952 787 Du Pont (E.I.) de Nemours & Co. .................. 32,466 240 Eastman Kodak Co. ................................ 7,898 243 Gillette Co. (with rights)........................ 7,249 346 Goodyear Tire & Rubber Co. (with rights).......... 2,454 206 Kimberly-Clark Corp. ............................. 10,599 283 Rohm & Haas Co. (with rights)..................... 9,419 177 Temple-Inland, Inc. (with rights)................. 7,277 ---------- 120,211 ---------- CAPITAL GOODS -- 4.5 % 364 Boeing Co. ....................................... 10,844 396 Honeywell International, Inc. .................... 9,490 195 Ingersoll-Rand Co. Class A (with rights).......... 7,597 289 Parker-Hannifin Corp. (with rights)............... 12,618 340 Pitney Bowes, Inc. (with rights).................. 11,397 ---------- 51,946 ---------- CONSUMER CYCLICAL -- 5.1% 132 Avery Dennison Corp. (with rights)................ 8,203 382 Caterpillar, Inc. (with rights)................... 15,593 689 Delphi Corp. ..................................... 4,796 590 Ford Motor Co. ................................... 4,989 740 McDonald's Corp. ................................. 13,409 366 Safeway, Inc.(a).................................. 8,459 85 Wal-Mart Stores, Inc. ............................ 4,530 ---------- 59,979 ---------- CONSUMER STAPLES -- 7.0% 532 EnCana Corp. ..................................... 15,475 353 General Mills, Inc. .............................. 14,578 312 PepsiCo, Inc. .................................... 13,764 311 Philip Morris Companies, Inc. .................... 12,685 384 Sara Lee Corp. (with rights)...................... 8,778 380 Weyerhaeuser Co. ................................. 17,205 ---------- 82,485 ---------- ENERGY -- 8.8% 280 Chevron Texaco Corp. (with rights)................ 18,916 250 ConocoPhillips (with rights)...................... 12,125 988 Exxon Mobil Corp. ................................ 33,270 437 Halliburton Co. (with rights)..................... 7,067 284 Royal Dutch Petroleum Co. NY Shares............... 12,132 236 Schlumberger Ltd. ................................ 9,478 152 Total Fina Elf S.A. ADR........................... 10,353 ---------- 103,341 ---------- FINANCE AND INSURANCE -- 17.0% 177 ACE Ltd. ADR (with rights)........................ 5,437 208 Aflac, Inc. ...................................... 6,338 272 American International Group, Inc. ............... 17,032 93 CIGNA Corp. (with rights)......................... 3,375 880 Citigroup, Inc. .................................. 32,516 286 Comerica, Inc. (with rights)...................... 12,495
MARKET SHARES VALUE(C) - --------- ---------- FINANCE AND INSURANCE -- (CONTINUED) 380 Franklin Resources, Inc. ......................... $ 12,520 147 Freddie Mac....................................... 9,071 487 Household International, Inc. (with rights)....... 11,578 156 Kimco Realty Corp. ............................... 4,730 231 MBIA, Inc. ....................................... 10,098 343 Merrill Lynch & Co., Inc. ........................ 13,025 71 People's Bank..................................... 1,739 225 PNC Financial Services Group, Inc. (with rights)......................................... 9,148 446 Synovus Financial Corp. (with rights)............. 9,139 31 Travelers Property Casualty Corp. Class A(a)...... 408 63 Travelers Property Casualty Corp. Class B(a)...... 854 443 U.S. Bancorp (with rights)........................ 9,345 486 Wachovia Corp. (with rights)...................... 16,912 184 XL Capital Ltd. Class A (with rights)............. 14,042 ---------- 199,802 ---------- HEALTH CARE -- 10.0% 422 Abbott Laboratories (with rights)................. 17,678 317 AstraZeneca plc ADR............................... 11,914 385 Baxter International, Inc. (with rights).......... 9,625 270 Becton, Dickinson & Co. (with rights)............. 7,968 363 CVS Corp. ........................................ 10,069 226 McKesson Corp. ................................... 6,728 424 Monsanto Co. ..................................... 7,013 526 Pharmacia Corp. (with rights)..................... 22,617 1,109 Schering-Plough Corp. (with rights)............... 23,679 ---------- 117,291 ---------- SERVICES -- 6.1% 131 Automatic Data Processing, Inc. .................. 5,576 231 Cadence Design Systems, Inc.(a)................... 2,341 380 Comcast Corp. Special Class A(a).................. 8,732 202 FedEx Corp. ...................................... 10,750 214 Gannett Co., Inc. (with rights)................... 16,272 68 Knight-Ridder, Inc. (with rights)................. 4,098 140 Omnicom Group, Inc. .............................. 8,085 661 Waste Management, Inc. ........................... 15,214 ---------- 71,068 ---------- TECHNOLOGY -- 15.0% 684 AOL Time Warner, Inc. (with rights)(a)............ 10,092 925 AT&T Corp. ....................................... 12,060 1,358 AT&T Wireless Services, Inc.(a)................... 9,333 695 BellSouth Corp. (with rights)..................... 18,182 188 Emerson Electric Co. (with rights)................ 9,034 208 General Electric Co. ............................. 5,260 1,152 Hewlett-Packard Co. .............................. 18,198 497 Intel Corp. ...................................... 8,595 356 International Business Machines Corp. ............ 28,126 130 Microsoft Corp.(a)................................ 6,946 914 Motorola, Inc. (with rights)...................... 8,383 497 Texas Instruments, Inc. (with rights)............. 7,887 158 Tyco International Ltd. (with rights)............. 2,290 837 Verizon Communications, Inc. ..................... 31,622 ---------- 176,008 ----------
The accompanying notes are an integral part of this financial statement. 78 - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - --------- ---------- COMMON STOCK -- (CONTINUED) TRANSPORTATION -- 3.5% 307 CP Railway Ltd. ADR............................... $ 6,086 349 CSX Corp. (with rights)........................... 9,632 407 Delta Air Lines, Inc. (with rights)............... 4,100 299 Union Pacific Corp. .............................. 17,674 104 USFreightways Corp. .............................. 2,928 ---------- 40,420 ---------- UTILITIES -- 7.0% 285 American Electric Power Co., Inc. ................ 7,313 256 Constellation Energy Group, Inc. ................. 6,538 113 Dominion Resources, Inc. ......................... 5,446 413 Exelon Corp. ..................................... 20,807 393 FirstEnergy Corp. (with rights)................... 12,746 314 FPL Group, Inc. (with rights)..................... 18,532 392 Pinnacle West Capital Corp. (with rights)......... 11,166 ---------- 82,548 ---------- Total common stock (cost $1,300,425).............. $1,105,099 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 5.8% FINANCE -- 5.8% $67,924 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 67,924 ---------- Total short-term investments (cost $67,924)....... $ 67,924 ========== Total investments in securities (cost $1,368,349)(b).................................. $1,173,023 ==========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $1,173,023 Cash........................................... 454 Receivables: Investment securities sold................... 625 Fund shares sold............................. 4,713 Dividends and interest....................... 2,095 Other assets................................... 275 ---------- Total assets................................... 1,181,185 ---------- LIABILITIES Payables: Investment securities purchased.............. 5,128 Fund shares redeemed......................... 1,373 Payable for investment management and advisory fees (Note 3)..................... 652 Payable for distribution fees (Note 3)....... 121 Accrued Expenses............................. 497 ---------- Total liabilities.............................. 7,771 ---------- Net assets..................................... $1,173,414 ==========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 500,000 shares authorized; 86,722 shares outstanding.................... $1,383,465 Accumulated undistributed net investment income....................................... 9 Accumulated net realized loss on investments... (14,734) Unrealized depreciation of investments in securities................................... (195,326) ---------- Net assets..................................... $1,173,414 ==========
Class A Net asset value per share ($808,633 / 59,549 shares outstanding)........................... $13.58 ------ Maximum offering price per share ($13.58 / 94.5%).............................. $14.37 ====== Class B Net asset value per share ($185,731 / 13,833 shares outstanding)........................... $13.43 ====== Class C Net asset value per share ($164,260 / 12,262 shares outstanding)........................... $13.40 ------ Maximum offering price per share ($13.40 / 99.0%).............................. $13.54 ====== Class Y Net asset value per share ($14,790 / 1,078 shares outstanding)........................... $13.73 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes was $1,375,707 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $ 16,689 Unrealized depreciation.................................................. (219,373) --------- Net unrealized depreciation.............................................. $(202,684) =========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 5.85% of total net assets as of October 31, 2002.
The accompanying notes are an integral part of this financial statement. 79 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE(C) - ------ ---------- COMMON STOCK -- 62.0% BASIC MATERIALS -- 3.9% 807 Alcoa, Inc. ...................................... $ 17,800 732 Dow Chemical Co. ................................. 19,034 500 Gillette Co. (with rights)........................ 14,940 388 International Paper Co. .......................... 13,567 428 Kimberly-Clark Corp. ............................. 22,021 ---------- 87,362 ---------- CAPITAL GOODS -- 2.3% 650 Boeing Co. ....................................... 19,340 127 Illinois Tool Works, Inc. ........................ 7,804 147 Northrop Grumman Corp. (with rights).............. 15,181 162 United Technologies Corp. ........................ 10,015 ---------- 52,340 ---------- CONSUMER CYCLICAL -- 4.9% 361 Caterpillar, Inc. (with rights)................... 14,743 503 Costco Wholesale Corp.(a)......................... 17,074 703 Home Depot, Inc. ................................. 20,294 391 Masco Corp. (with rights)......................... 8,035 364 McDonald's Corp. ................................. 6,583 440 NIKE, Inc. Class B................................ 20,788 1,005 Safeway, Inc.(a).................................. 23,211 ---------- 110,726 ---------- CONSUMER STAPLES -- 3.0% 418 Estee Lauder Companies, Inc. Class A.............. 12,166 406 General Mills, Inc. .............................. 16,768 581 PepsiCo, Inc. .................................... 25,627 133 Procter & Gamble Co. ............................. 11,764 ---------- 66,325 ---------- ENERGY -- 4.4% 367 Anadarko Petroleum Corp. (with rights)............ 16,364 300 Chevron Texaco Corp. (with rights)................ 20,289 1,007 Exxon Mobil Corp. ................................ 33,909 1,098 Halliburton Co. (with rights)..................... 17,763 256 Schlumberger Ltd. ................................ 10,264 ---------- 98,589 ---------- FINANCE AND INSURANCE -- 14.1% 473 American Express Co. ............................. 17,192 642 American International Group, Inc. ............... 40,181 301 Bank of America Corp. ............................ 21,038 550 Bank One Corp. ................................... 21,217 1,317 Citigroup, Inc. .................................. 48,671 24 Dime Bancorp, Inc. (Warrants)(a).................. 2 250 Fannie Mae........................................ 16,715 587 FleetBoston Financial Corp.(with rights).......... 13,725 579 Franklin Resources, Inc. ......................... 19,095 191 Goldman Sachs Group, Inc. ........................ 13,647 777 Household International, Inc. (with rights)....... 18,469 555 Marsh & McLennan Companies, Inc. (with rights).... 25,919 580 Merrill Lynch & Co., Inc. ........................ 22,004
MARKET SHARES VALUE(C) - ------ ---------- FINANCE AND INSURANCE -- (CONTINUED) 510 State Street Corp. (with rights).................. $ 21,115 326 U.S. Bancorp (with rights)........................ 6,875 284 Wachovia Corp. (with rights)...................... 9,891 ---------- 315,756 ---------- HEALTH CARE -- 10.3% 666 Abbott Laboratories (with rights)................. 27,869 331 Amgen, Inc. (with rights)(a)...................... 15,416 826 Baxter International, Inc. (with rights).......... 20,667 918 CVS Corp. ........................................ 25,445 550 Genzyme Corp. -- General Division(a).............. 15,318 288 Lilly (Eli) & Co. (with rights)................... 16,006 1,180 Pfizer, Inc. (with rights)........................ 37,504 259 Pharmacia Corp. (with rights)..................... 11,146 1,056 Schering-Plough Corp. (with rights)............... 22,537 232 Waters Corp. (with rights)(a)..................... 5,832 959 Wyeth (with rights)............................... 32,125 ---------- 229,865 ---------- SERVICES -- 4.5% 1,000 Accenture Ltd. Class A(a)......................... 16,880 449 Automatic Data Processing, Inc. .................. 19,092 463 Computer Sciences Corp.(a)........................ 14,947 196 FedEx Corp. ...................................... 10,452 194 Gannett Co., Inc. (with rights)................... 14,768 1,530 Liberty Media Corp. Class A(a).................... 12,657 509 Waste Management, Inc. ........................... 11,713 ---------- 100,509 ---------- TECHNOLOGY -- 13.1% 2,696 AOL Time Warner, Inc. (with rights)(a)............ 39,760 622 AT&T Corp. ....................................... 8,108 1,474 Cisco Systems, Inc. (with rights)(a).............. 16,479 1,558 General Electric Co. ............................. 39,332 877 General Motors Corp. Class H -- Hughes Electronics Corp.(a)........................................ 8,638 1,396 Hewlett-Packard Co. .............................. 22,050 1,660 Intel Corp. ...................................... 28,720 422 International Business Machines Corp. ............ 33,352 943 Microsoft Corp.(a)................................ 50,422 @@ Minorplanet Systems USA, Inc. (Warrants)(a)(f).... @@ 1,476 Oracle Corp. (with rights)(a)..................... 15,134 862 SBC Communications, Inc. ......................... 22,116 268 Verizon Communications, Inc. ..................... 10,140 ---------- 294,251 ---------- UTILITIES -- 1.5% 370 Exelon Corp. ..................................... 18,648 236 FPL Group, Inc. (with rights)..................... 13,890 ---------- 32,538 ---------- Total common stock (cost $1,717,386).............. $1,388,261 ==========
The accompanying notes are an integral part of this financial statement. 80 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- ASSET BACKED SECURITIES -- 3.1% FINANCE -- 2.1% $10,000 Chase Manhattan Auto Owner Trust, 4.21%, Ser 2002-B Class A4 01/15/2009........... AAA $ 10,429 10,000 Citibank Credit Card Issuance Trust, 5.65%, Ser 2001-A6 Class A6 06/16/2008.......... AAA 10,901 1,000 Citibank Credit Card Master Trust I, 6.90%, Ser 1999-7 Class B 11/15/2006.............................. A 1,086 10,000 MBNA Credit Card Master Note Trust, 4.95%, Ser 2002-A1 Class A1 06/15/2009.......... AAA 10,728 248 Money Store Home Improvement Trust, 7.41%, Ser 1999-1 Class M1 05/15/2017........... AA 253 10,000 Peco Energy Transition Trust, 6.13%, Ser 1999-A Class A7 03/01/2009........... AAA 11,131 1,500 Standard Credit Card Master Trust, 8.45%, Ser 1995-1 Class B 01/07/2007.............................. A 1,688 ---------- 46,216 ---------- TRANSPORTATION -- 0.5% 10,000 Connecticut RRB Special Purpose Trust CL&P-1, 6.21%, Ser 2001-1 Class A5 12/30/2011............................. AAA 11,153 ---------- UTILITIES -- 0.5% 10,000 PSE&G Transition Funding LLC, 6.61%, Ser 2001-1 Class A6 06/15/2015............................. AAA 11,312 ---------- Total asset backed securities (cost $65,623)...... $ 68,681 ========== CORPORATE BONDS: INVESTMENT GRADE -- 16.9% BASIC MATERIALS -- 1.5% 4,000 Alcan, Inc., 6.45%, 03/15/2011............................... A- 4,418 7,000 Alcoa, Inc., 7.375%, 08/01/2010.............................. A 8,210 500 ICI Wilmington, Inc., 6.95%, 09/15/2004............................... BBB 525 7,000 Rohm & Haas Co., 7.40%, 07/15/2009............................... A- 8,139 4,000 Vulcan Materials Co., 5.75%, 04/01/2004............................... A+ 4,179 7,000 Westvaco Corp., 7.95%, 02/15/2031............................... BBB 7,452 ---------- 32,923 ----------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- CAPITAL GOODS -- 0.8% $ 5,000 Eaton Corp., 6.95%, 11/15/2004............................... A- $ 5,439 2,000 Parker-Hannifin Corp., 5.65%, 09/15/2003............................... A 2,068 2,000 Pitney Bowes, Inc., 5.50%, 04/15/2004............................... AA 2,096 7,000 United Technologies Corp., 7.125%, 11/15/2010.............................. A+ 8,064 ---------- 17,667 ---------- CONSUMER CYCLICAL -- 1.1% 4,000 Albertson's, Inc., 6.55%, 08/01/2004............................... BBB+ 4,251 500 DaimlerChrysler N.A. Holding Corp., 7.40%, 01/20/2005............................... BBB+ 532 250 DaimlerChrysler N.A. Holding Corp., 7.75%, 01/18/2011............................... BBB+ 276 4,000 Dayton Hudson Corp., 5.875%, 11/01/2008.............................. A+ 4,356 250 Federated Department Stores, Inc., 6.30%, 04/01/2009............................... BBB+ 261 3,000 Ford Motor Co., 6.625%, 10/01/2028.............................. BBB 2,068 5,000 Home Depot, Inc., 6.50%, 09/15/2004............................... AA 5,401 250 Safeway, Inc., 7.25%, 02/01/2031............................... BBB 273 250 Sysco Corp., 6.50%, 08/01/2028............................... AA- 266 6,000 Wal-Mart Stores, Inc., 6.875%, 08/10/2009.............................. AA 6,956 ---------- 24,640 ---------- CONSUMER STAPLES -- 2.5% 4,000 Anheuser-Busch Companies, Inc., 7.55%, 10/01/2030............................... A+ 4,923 5,000 Archer-Daniels-Midland Co., 7.00%, 02/01/2031............................... A+ 5,530 2,000 Archer-Daniels-Midland Co., 8.125%, 06/01/2012.............................. A+ 2,466 7,000 Clorox Co., 6.125%, 02/01/2011.............................. A+ 7,570 250 Coca-Cola Bottling Co., 6.375%, 05/01/2009.............................. BBB 271 4,000 Coca-Cola Enterprises, Inc., 5.75%, 11/01/2008............................... A 4,349 2,000 Colgate-Palmolive Co., 5.58%, 11/06/2008............................... Aa3* 2,180 4,906 ConAgra Foods, Inc., 6.70%, 08/01/2027............................... BBB+ 5,525 2,000 Hershey Foods Corp., 7.20%, 08/15/2027............................... A+ 2,307 500 Pepsi Bottling Group, Inc., 7.00%, Ser B 03/01/2029......................... A- 569 7,000 PepsiAmericas, Inc., 5.95%, 02/15/2006............................... A- 7,501
The accompanying notes are an integral part of this financial statement. 81 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) CONSUMER STAPLES -- (CONTINUED) $ 3,000 PepsiAmericas, Inc., 6.375%, 05/01/2009.............................. A- $ 3,216 250 Proctor & Gamble Co., 6.875%, 09/15/2009.............................. AA- 291 7,000 Proctor & Gamble Co., 9.36%, Ser A 01/01/2021......................... AA- 9,664 ---------- 56,362 ---------- ENERGY -- 0.6% 7,000 Atlantic Richfield Co., 5.90%, 04/15/2009............................... AA+ 7,734 500 Conoco, Inc., 6.95%, 04/15/2029............................... A- 549 4,000 National Fuel Gas Co., 6.00%, 03/01/2009............................... A- 4,247 250 Valero Energy Corp., 8.375%, 06/15/2005.............................. BBB 260 ---------- 12,790 ---------- FINANCE -- 5.7% 4,000 ACE INA Holdings Corp., 8.30%, 08/15/2006............................... A- 4,507 2,000 Allstate Corp., 6.75%, 05/15/2018............................... A+ 2,084 250 American General Corp., 6.625%, 02/15/2029.............................. AAA 262 7,000 American Reinsurance Corp., 7.45%, Ser B 12/15/2026......................... AA 7,227 1,420 Amerus Group, Inc., 6.95%, 06/15/2005............................... BBB+ 1,470 7,000 Apache Finance Property Ltd., 7.00%, 03/15/2009............................... A- 7,989 500 Aristar, Inc., 7.25%, 06/15/2006............................... A- 556 4,000 AXA Financial, Inc., 7.00%, 04/01/2028............................... A+ 3,889 3,000 Bank One Corp., 6.50%, 02/01/2006............................... A 3,285 3,000 Bank One Corp., 6.875%, 08/01/2006.............................. A 3,361 2,000 Bayerische Landesbank NY, 5.65%, 02/01/2009............................... AAA 2,143 250 Boeing Capital Corp., 6.10%, 03/01/2011............................... A+ 249 500 BSCH Issuance Ltd., 7.625%, 11/03/2009.............................. A- 531 1,000 Cigna Corp., 6.375%, 01/15/2006.............................. BBB+ 1,046 500 Citigroup, Inc., 6.50%, 01/18/2011............................... AA- 550 2,725 ERAC USA Finance Co., 7.35%, 06/15/2008(g)............................ BBB+ 2,969 10,000 Financing Corp., 9.80%, 04/06/2018............................... Aaa* 14,728 545 First Union National Bank, 5.80%, 12/01/2008............................... A 581
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- FINANCE -- (CONTINUED) $ 500 General Motors Acceptance Corp., 6.15%, 04/05/2007............................... BBB $ 477 7,000 General Motors Acceptance Corp., 8.00%, 11/01/2031............................... BBB 6,250 250 Heller Financial, Inc., 6.375%, 03/15/2006.............................. AAA 275 500 Household Finance Corp., 6.00%, 05/01/2004............................... A- 471 4,000 International Lease Finance Corp., 5.75%, 02/15/2007............................... AA- 4,052 500 J.P. Morgan Chase & Co., 6.75%, 02/01/2011............................... A 540 2,000 Jackson National Life Insurance Co., 8.15%, 03/15/2027(g)............................ AA 2,108 4,000 John Hancock Financial Services, Inc., 7.375%, 02/15/2024(g)........................... A+ 4,139 2,755 Key Bank N.A., Inc., 5.80%, 04/01/2004............................... A 2,886 250 KeyCorp Capital II, 6.875%, 03/17/2029.............................. BBB 240 250 Korea Development Bank, 7.125%, 04/22/2004.............................. A- 267 5,000 Liberty Mutual Insurance, 8.20%, 05/04/2007(g)............................ A- 5,206 1,000 MBIA, Inc., 7.00%, 12/15/2025............................... AA 1,015 250 National City Corp., 6.875%, 05/15/2019.............................. A- 263 500 NBD Bancorp, Inc., 7.125%, 05/15/2007.............................. A- 574 3,100 New England Mutual Life Insurance Co., 7.875%, 02/15/2024(g)........................... A+ 3,342 7,000 Provident Companies, Inc., 7.00%, 07/15/2018............................... A- 6,366 2,000 Prudential Funding LLC, 6.75%, 09/15/2023(g)............................ A2* 1,898 500 Prudential Insurance Co. of America, 6.375%, 07/23/2006(f)........................... A+ 533 500 ReliaStar Financial Corp., 8.00%, 10/30/2006............................... AA- 558 250 Republic New York Capital I, 7.75%, 11/15/2026............................... A- 253 500 Salomon Smith Barney Holdings, Inc., 5.875%, 03/15/2006.............................. AA- 537 500 St. Paul Bancorp, Inc., 7.125%, 02/15/2004(f)........................... BBB+ 525 4,000 St. Paul Companies, Inc., 5.75%, 03/15/2007............................... BBB+ 4,110 200 State Street Corp., 7.65%, 06/15/2010............................... A+ 238 500 Texaco Capital, Inc., 8.625%, 06/30/2010.............................. AA 617
The accompanying notes are an integral part of this financial statement. 82 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 500 Textron Financial Corp., 7.125%, 12/09/2004.............................. A- $ 529 3,000 Torchmark Corp., 8.25%, 08/15/2009............................... A 3,470 2,000 Toyota Motor Credit Corp., 5.50%, 12/15/2008............................... AAA 2,174 4,000 UnitedHealth Group, Inc., 7.50%, 11/15/2005............................... A 4,502 250 Verizon Global Funding Corp., 7.25%, 12/01/2010............................... A+ 271 250 Verizon Global Funding Corp., 7.75%, 12/01/2030............................... A+ 268 3,000 Wachovia Corp., 5.625%, 12/15/2008.............................. A- 3,176 4,000 Wells Fargo Bank N.A., 6.45%, 02/01/2011............................... A+ 4,445 4,165 XL Capital Europe plc, 6.50%, 01/15/2012............................... A+ 4,240 ---------- 128,242 ---------- HEALTH CARE -- 0.9% 4,000 Becton, Dickinson & Co., 6.70%, 08/01/2028............................... A+ 4,337 4,000 Bristol-Myers Squibb Co., 5.75%, 10/01/2011............................... AA 4,255 4,000 Cardinal Health, Inc., 6.75%, 02/15/2011............................... A 4,524 3,000 Pharmacia Corp., 6.60%, 12/01/2028............................... AA- 3,256 4,000 Wyeth, 6.70%, 03/15/2011............................... A 4,371 ---------- 20,743 ---------- SERVICES -- 0.9% 250 Clear Channel Communications, Inc., 7.65%, 09/15/2010............................... BBB- 271 7,000 Comcast Cable Communications, Inc., 6.875%, 06/15/2009.............................. BBB 6,791 500 Comcast Cable Communications, Inc., 8.50%, 05/01/2027............................... BBB 486 250 Liberty Media Corp., 8.25%, 02/01/2030............................... BBB- 238 500 Park Place Entertainment Corp., 8.50%, 11/15/2006............................... BBB- 520 500 Viacom, Inc., 7.625%, 01/15/2016.............................. A- 579 7,000 Viacom, Inc., 7.70%, 07/30/2010............................... A- 8,193
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- SERVICES -- (CONTINUED) $ 3,000 Washington Post Co., 5.50%, 02/15/2009............................... A+ $ 3,131 250 Waste Management, Inc., 7.375%, 08/01/2010.............................. BBB 263 ---------- 20,472 ---------- TECHNOLOGY -- 1.9% 250 AirTouch Communications, Inc., 6.65%, 05/01/2008............................... A 269 500 ALLTEL Corp., 6.80%, 05/01/2029............................... A 503 750 AT&T Corp., 7.30%, 11/15/2011............................... BBB+ 735 2,545 AT&T Corp., 8.00%, 11/15/2031............................... BBB+ 2,430 250 AT&T Wireless Services, Inc., 8.75%, 03/01/2031............................... BBB 200 1,000 Computer Associates International, Inc., 6.50%, Ser B 04/15/2008......................... BBB+ 890 500 Cox Communications, Inc., 6.40%, 08/01/2008............................... BBB 504 2,000 Danaher Corp., 6.00%, 10/15/2008............................... A+ 2,165 250 France Telecom S.A., 8.25%, 03/01/2011............................... BBB- 276 250 GTE Corp., 7.51%, 04/01/2009............................... A+ 276 5,000 Hewlett-Packard Co., 7.15%, 06/15/2005............................... A- 5,294 250 Koninklijke KPN N.V., 8.375%, 10/01/2030.............................. BBB- 283 500 Lockheed Martin Corp., 7.65%, 05/01/2016............................... BBB 616 1,580 Motorola, Inc., 7.60%, 01/01/2007............................... BBB 1,583 1,000 New York Telephone Co., 6.00%, 04/15/2008............................... A+ 1,035 400 Raytheon Co., 7.20%, 08/15/2027............................... BBB- 409 2,000 Rockwell International Corp., 6.70%, 01/15/2028............................... A 2,029 7,055 Sprint Capital Corp., 6.125%, 11/15/2008.............................. BBB- 5,545 250 Sprint Capital Corp., 6.875%, 11/15/2028.............................. BBB- 166 250 Sprint Capital Corp., 7.625%, 01/30/2011.............................. BBB- 201 250 Telecomunicaciones de Puerto Rico, Inc., 6.65%, 05/15/2006............................... BBB 249 500 Telefonica Europe B.V., 7.35%, 09/15/2005............................... A 542 500 Time Warner, Inc., 6.875%, 06/15/2018.............................. BBB+ 450 7,000 USA Networks, Inc., 6.75%, 11/15/2005............................... BBB- 6,902 500 Vodafone Group plc, 7.875%, Ser B 02/15/2030........................ A 581
The accompanying notes are an integral part of this financial statement. 83 THE HARTFORD ADVISERS FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 7,000 Walt Disney Co., 6.375%, 03/01/2012.............................. BBB+ $ 7,514 ---------- 41,647 ---------- TRANSPORTATION -- 0.4% 6,000 Burlington Northern Sante Fe Corp., 7.875%, 04/15/2007.............................. BBB+ 6,975 750 CSX Corp., 7.90%, 05/01/2017............................... BBB 930 250 Norfolk Southern Corp., 6.75%, 02/15/2011............................... BBB 278 ---------- 8,183 ---------- UTILITIES -- 0.7% 4,000 Alabama Power Co., 7.125%, Ser K 08/15/2004........................ A 4,300 500 Alabama Power Co., 7.125%, Ser L 10/01/2007........................ A 577 255 Chilquinta Energia Finance Co., 6.62%, 04/01/2011(g)............................ AAA 278 250 Dominion Fiber Ventures LLC, 7.05%, 03/15/2005(g)............................ BBB 238 4,000 Duke Energy Corp., 5.375%, Ser B 01/01/2009........................ A 3,963 500 Duke Energy Corp., 6.00%, Ser A 12/01/2028......................... A 451 250 El Paso Corp., 8.05%, 10/15/2030............................... BBB 155 2,000 Kansas City Power & Light Co., 7.125%, 12/15/2005.............................. BBB 2,214 500 Madison Gas & Electric Co., 6.02%, 09/15/2008............................... AA- 538 189 Niagara Mohawk Power Corp., 7.625%, Ser F 10/01/2005........................ A- 207 1,150 Northern Border Pipeline, Inc., 7.75%, Ser A 09/01/2009......................... A- 1,273 250 Tennessee Gas Pipeline Co., 7.50%, 04/01/2017............................... BBB+ 225 250 TransCanada Pipelines Ltd., 6.49%, 01/21/2009............................... A- 267 ---------- 14,686 ---------- Total corporate bonds: investment grade (cost $ 378,355 $356,721)....................................... ========== CORPORATE BONDS: NON-INVESTMENT GRADE -- 0.1% BASIC MATERIALS -- 0.0% 600 Georgia-Pacific Corp., 9.625%, 03/15/2022.............................. BB+ 456 ENERGY -- 0.0% 300 Williams Companies, Inc., 7.50%, Ser A 01/15/2031......................... B 165
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- ---------- UTILITIES -- 0.1% $ 4,000 TXU Eastern Funding Co., 6.45%, 05/15/2005(a)............................ D $ 740 ---------- Total corporate bonds: non-investment grade (cost $ 1,361 $4,915)......................................... ==========
U.S. GOVERNMENT SECURITIES -- 15.9% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- MORTGAGE BACKED SECURITIES -- 0.0% 258 6.30% 2008........................................ 286 41 9.00% 2016-2021................................... 45 ---------- 331 ---------- GOVERNMENT NATIONAL MORTGAGE -- MORTGAGE BACKED SECURITIES -- 4.0% 24,386 6.00% 2023-2031................................... 25,278 24,594 6.50% 2026-2029................................... 25,663 31,842 7.00% 2023-2032................................... 33,476 4,916 8.00% 2029-2031................................... 5,268 377 9.00% 2023........................................ 417 9 9.50% 2019........................................ 10 ---------- 90,112 ---------- U.S. TREASURY SECURITIES -- 11.8% 2,000 10.375% 2012...................................... 2,681 50,000 3.25% 2003........................................ 51,064 3,000 5.00% 2011........................................ 3,272 10,000 5.50% 2009........................................ 11,274 4,000 5.625% 2006....................................... 4,431 44,750 5.875% 2005....................................... 49,657 5,000 6.00% 2004........................................ 5,387 3,900 6.03% 2021(e)..................................... 1,380 14,000 6.125% 2007....................................... 16,099 80,000 6.25% 2023........................................ 91,866 25,000 6.50% 2005........................................ 28,022 ---------- 265,133 ---------- Total U.S. government securities (cost $327,011)....................................... $ 355,576 ---------- Total long-term investments (cost $2,471,656)..... $2,192,234 ---------- SHORT-TERM INVESTMENTS -- 2.2% FINANCE -- 2.2% 49,038 Joint Repurchase Agreement, 1.88%, 11/01/2002 (Note 2f)..................... $ 49,038 3 U.S. Bank N.A. Money Market Variable Rate Time Deposit, 1.61%.................................. 3 ---------- Total short-term investments (cost $49,041)....... $ 49,041 ========== Total investments in securities (cost $2,520,697)(b).................................. $2,241,275 ==========
The accompanying notes are an integral part of this financial statement. 84 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $2,241,275 Receivables: Investment securities sold................... 1,197 Fund shares sold............................. 4,317 Dividends and interest....................... 13,070 Other assets................................... 461 ---------- Total assets................................... 2,260,320 ---------- LIABILITIES Payables: Investment securities purchased.............. 14,569 Fund shares redeemed......................... 3,530 Payable for investment management and advisory fees (Note 3)..................... 1,198 Payable for distribution fees (Note 3)....... 273 Accrued Expenses............................. 949 ---------- Total liabilities.............................. 20,519 ---------- Net assets..................................... $2,239,801 ==========
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 460,000 shares authorized; 177,276 shares outstanding................... $2,773,062 Accumulated undistributed net investment income....................................... 1,166 Accumulated net realized loss on investments... (255,005) Unrealized depreciation of investments in securities................................... (279,422) ---------- Net assets..................................... $2,239,801 ==========
Class A Net asset value per share ($1,245,331 / 98,298 shares outstanding)........................... $12.67 ====== Maximum offering price per share ($12.67 / 94.5%)........................................ $13.41 ====== Class B Net asset value per share ($567,953 / 45,290 shares outstanding)........................... $12.54 ====== Class C Net asset value per share ($422,520 / 33,376 shares outstanding)........................... $12.66 ====== Maximum offering price per share ($12.66 / 99.0%)........................................ $12.79 ====== Class Y Net asset value per share ($3,997 / 312 shares outstanding).................................. $12.82 ======
(a) Presently non-incoming producing. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $2,530,331 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................... $ 67,968 Unrealized depreciation.................... (356,965) --------- Net unrealized depreciation................ $(288,997) =========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents .91% of total net assets as of October 31, 2002. (e) The interest rate for this security represents the effective yield on the date of acquisition. (f) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." These investments have been identified by portfolio management as illiquid securities:
PERIOD ACQUIRED SHARES/PAR SECURITY COST BASIS --------------- ---------- -------------------------- ---------- 1997 -- Minorplanet Systems USA (Warrants) -- 144A........ $ 5 1998 500 Prudential Insurance Co. of America due 2006 -- 144A.............. 499 1997 500 St. Paul Bancorp, Inc. due 2004...................... 499
The aggregate value of these securities at October 31, 2002, was $1,058, which represents 0.05% of total net assets. (g) Securities sold within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors." Pursuant to guidelines adopted by the Board of Directors, these issues are deemed to be liquid. The aggregate value of these securities at October 31, 2002, was $20,178, which represents 0.90% of total net assets. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. * Moody's Rating
The accompanying notes are an integral part of this financial statement. 85 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- 23.7% BASIC MATERIALS -- 8.1% $ 350 Boise Cascade Corp., 7.35%, 02/01/2016............................... Baa3* $ 312 1,375 Boise Cascade Corp., 7.50%, 02/01/2008............................... Baa3* 1,425 900 Bowater Canada Finance, 7.95%, 11/15/2011............................... BBB- 880 900 Crompton Corp., 8.50%, 03/15/2005............................... BBB- 904 210 Cypress Amax Minerals Co., 8.375%, 02/01/2023.............................. BBB- 185 950 Ferro Corp., 9.125%, 01/01/2009.............................. BBB- 995 @170 Georgia Gulf Corp., 7.625%, 11/15/2005.............................. BBB- 176 600 Inco Ltd., 9.60%, 06/15/2022............................... BBB- 626 1,000 Methanex Corp., 8.75%, 08/15/2012............................... BBB- 1,040 280 Newmont Mining Corp. (Holding Co.), 8.625%, 05/15/2011.............................. BBB 326 @1,045 Nova Chemicals Corp., 7.00%, 05/15/2006............................... BBB- 930 700 Olin Corp., 9.125%, 12/15/2011.............................. BBB 792 1,045 Phelps Dodge Corp., 8.75%, 06/01/2011............................... BBB- 1,050 @2,755 Phelps Dodge Corp., 9.50%, 06/01/2031............................... BBB- 2,673 100 Placer Dome, Inc., 7.125%, 06/15/2007.............................. BBB+ 110 1,000 Polyone Corp., 8.875%, 05/01/2012.............................. Baa3* 921 650 Potlatch Corp., 9.425%, 12/01/2009.............................. BBB- 725 590 Santa Fe Pacific Gold Corp., 8.375%, 07/01/2005.............................. BBB 639 -------- 14,709 -------- CONSUMER CYCLICAL -- 1.3% 935 Millennium America, Inc., 7.00%, 11/15/2006............................... BBB- 874 718 Millennium America, Inc., 7.625%, 11/15/2026.............................. BBB- 560 1,230 Penney (J.C.) Co., Inc., 8.25%, 08/15/2022............................... BBB- 996 -------- 2,430 -------- CONSUMER STAPLES -- 0.5% 950 Dole Foods Co., 7.25%, 05/01/2009............................... BBB- 865 -------- ENERGY -- 0.7% 900 Consumers Energy Co., 6.25%, 09/15/2006............................... BBB- 859 400 Varco International, Inc., 7.50%, 02/15/2008............................... BBB+ 444 -------- 1,303 --------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- FINANCE -- 4.0% $ @2,553 French Treasury Note (Euro), 4.50%, 07/12/2003............................... AAA $ 2,552 2,200 Netherlands Government (Euro), 6.50%, 04/15/2003............................... AAA 2,210 340 Sovereign Bancorp, Inc., 8.625%, 03/15/2004.............................. BBB- 355 1,300 United Kingdom Treasury (British Pound), 8.00% 06/10/2003................................ AAA 2,086 -------- 7,203... -------- HEALTH CARE -- 2.2% @160 HCA, Inc., 7.00%, 07/01/2007............................... BBB- 170 1,020 HCA, Inc., 7.125%, 06/01/2006.............................. BBB- 1,072 350 HCA, Inc., 7.50%, 11/15/2095............................... BBB- 318 @1,200 HCR Manor Care, Inc., 7.50%, 06/15/2006............................... BBB 1,215 600 Manor Care, Inc., 8.00%, 03/01/2008............................... BBB 618 540 Watson Pharmaceuticals, Inc., 7.125%, 05/15/2008.............................. BBB- 564 -------- 3,957 -------- SERVICES -- 3.1% 1,400 Hilton Hotels Corp., 7.625%, 05/15/2008.............................. BBB- 1,418 @25 ITT Corp., 6.75%, 11/15/2005............................... BBB- 24 200 MGM Mirage, Inc., 6.875%, 02/06/2008.............................. BBB- 198 1,660 Mirage Resorts, Inc., 7.25%, 10/15/2006............................... BBB- 1,667 175 Quebecor World (USA), Inc., 7.75%, 02/15/2009............................... BBB 175 1,350 Starwood Hotels & Resorts Worldwide, Inc., 7.375%, 05/01/2007(g)........................... BBB- 1,289 900 Waste Management, Inc., 6.50%, 11/15/2008............................... BBB 918 -------- 5,689 -------- TECHNOLOGY -- 2.6% 260 Apogent Technologies, Inc., 8.00%, Ser B 04/01/2011......................... BBB 297 1,150 AT&T Corp., 8.00%, 11/15/2031............................... BBB+ 1,098 475 Deutsche Telekom International Financial B.V., 9.25%, 06/01/2032............................... BBB+ 560 125 Lenfest Communications, Inc., 10.50%, 06/15/2006.............................. BBB 122 1,450 Sprint Capital Corp., 7.90%, 03/15/2005............................... Baa3* 1,310
The accompanying notes are an integral part of this financial statement. 86 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 365 Time Warner Entertainment Co., 8.375%, 03/15/2023.............................. BBB+ $ 371 900 USA Networks, Inc., 6.75%, 11/15/2005............................... BBB- 887 1 Voicestream Wireless Corp., 10.375%, 11/15/2009............................. BBB+ 1 -------- 4,646 -------- UTILITIES -- 1.1% 125 El Paso Electric Co., 9.40%, Ser E 05/01/2011......................... BBB- 129 800 Western Resources, Inc., 7.65%, 04/15/2023............................... BBB- 652 1,100 Western Resources, Inc., 7.875%, 05/01/2007.............................. BBB- 1,058 -------- 1,839 -------- Total corporate bonds: investment grade (cost $41,784)......... $ 42,641 ======== CORPORATE BONDS: NON-INVESTMENT GRADE -- 71.1% BASIC MATERIALS -- 15.4% 2,345 AK Steel Corp., 7.875%, 02/15/2009.............................. BB 2,333 500 Arco Chemical Co., 9.80%, 02/01/2020............................... BB 375 175 Compass Minerals Group, Inc., 10.00%, 08/15/2011.............................. B 187 @490 Crown Cork & Seal Co., Inc., 6.75%, 04/15/2003............................... CCC 466 @505 Crown Cork & Seal Co., Inc., 8.00%, 04/15/2023............................... CCC 318 3,955 Equistar Chemicals L.P., 7.55%, 02/15/2026............................... BB 2,887 1,032 FMC Corp., 10.25%, 11/01/2009(g)........................... BB+ 1,063 @855 General Chemical Industrial Products, Inc., 10.625%, 05/01/2009............................. B- 598 @765 Georgia Gulf Corp., 10.375%, 11/01/2007............................. BB- 826 @550 Georgia-Pacific Corp., 7.25%, 06/01/2028............................... BB+ 385 @1,175 Georgia-Pacific Corp., 7.50%, 05/15/2006............................... BB+ 1,034 565 Georgia-Pacific Corp., 8.875%, 05/15/2031.............................. BB+ 435 @520 Georgia-Pacific Corp., 9.875%, 11/01/2021.............................. BB+ 400 @600 Hercules, Inc., 11.125%, 11/15/2007............................. BB- 661 260 Hercules, Inc., 6.60%, 08/01/2027............................... BB 253 150 Huntsman ICI Chemicals, Inc., 10.125%, 07/01/2009............................. B- 117
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- BASIC MATERIALS -- (CONTINUED) $ 1,120 IMC Global, Inc., 11.25%, Ser B 06/01/2011........................ BB $ 1,204 275 Jefferson Smurfit Corp., 8.25%, 10/01/2012(g)............................ B 282 415 Kappa Beheer B.V. (Euro), 10.625%, 07/15/2009............................. B 419 720 Longview Fibre Co., 10.00%, 01/15/2009.............................. B+ 742 @1,005 Louisiana-Pacific Corp., 8.50%, 08/15/2005............................... BB- 1,019 100 Lukens, Inc., 7.625%, 08/01/2004(a)(e)................................ NR 4 480 Lyondell Chemical Co., 9.625%, Ser A 05/01/2007...................................... BB 458 1,000 Lyondell Chemical Co., 9.875%, Ser B 05/01/2007...................................... BB 955 1,050 Messer Griesheim Holdings AG (Euro), 10.375%, 06/01/2011............................. B+ 1,081 620 Oregon Steel Mills, Inc., 10.00%, 07/15/2009(g)........................... BB- 620 1,920 Owens-Brockway Glass Co., Inc., 8.875%, 02/15/2009.............................. BB 1,973 161 Peabody Energy Corp., 9.625%, Ser B 05/15/2008...................................... B+ 169 905 Plastipak Holdings, Inc., 10.75%, 09/01/2011.............................. B+ 938 1,360 Potlatch Corp., 10.00%, 07/15/2011.............................. BB+ 1,489 140 Silgan Holdings, Inc., 9.00%, 06/01/2009............................... B 146 810 Stone Container Corp., 8.375%, 07/01/2012.............................. B 834 1,200 Stone Container Corp., 9.75%, 02/01/2011............................... B 1,287 @1,945 United States Steel LLC., 10.75%, 08/01/2008.............................. BB 1,916 -------- 27,874 -------- CAPITAL GOODS -- 3.1% 325 Briggs & Stratton Corp., 8.875%, 03/15/2011.............................. BB+ 341 254 Flowserve Finance B.V., Inc. (Euro), 12.25%, 08/15/2010.............................. B 262 @425 Jorgensen (Earle M.) Co., 9.75%, 06/01/2012............................... B- 412 200 Joy Global, Inc., 8.75%, Ser B 03/15/2012......................... B+ 201 250 Sequa Corp., 8.875%, Ser B 04/01/2008........................ BB- 210 360 Sequa Corp., 9.00%, 08/01/2009............................... BB- 302
The accompanying notes are an integral part of this financial statement. 87 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- (CONTINUED) $ 3,675 Tyco International Group S.A., 6.375%, 02/15/2006.............................. BB- $ 3,308 @400 Xerox Capital Europe plc, 5.875%, 05/15/2004.............................. B+ 348 270 Xerox Corp., 9.75%, 01/15/2009(g)............................ B+ 230 -------- 5,614 -------- CONSUMER CYCLICAL -- 1.1% 155 B & G Foods, Inc., 9.625%, Ser D 08/01/2007...................................... B- 161 260 Collins & Aikman Floorcovering, Inc., 9.75%, Ser B 02/15/2010......................... B 251 350 Dillard's, Inc., 6.625%, 01/15/2018.............................. BB+ 287 255 Dillard's, Inc., 7.13%, 08/01/2018............................... BB+ 210 @420 Integrated Electrical Services, Inc., 9.375%, Ser C 02/01/2009........................ B+ 370 220 Kaufman & Broad Home Corp., 7.75%, 10/15/2004............................... BB+ 227 125 Toll Corp., 7.75%, 09/15/2007............................... BB+ 121 100 Toll Corp., 8.75%, 11/15/2006............................... BB+ 101 @271 United Rentals, Inc., 10.75%, Ser B 04/15/2008...................................... BB- 252 -------- 1,980 -------- CONSUMER STAPLES -- 2.9% 750 Johnsondiversey, Inc., 9.625%, 05/15/2012(g)........................... B 750 1,120 Land O'Lakes, Inc., 8.75%, 11/15/2011............................... B+ 616 2,500 Solutia, Inc., 11.25%, 07/15/2009 (with warrants)(g)........... BB- 2,025 565 Tembec Industries, Inc., 7.75%, 03/15/2012............................... BB+ 555 950 Tembec Industries, Inc., 8.50%, 02/01/2011............................... BB+ 967 250 Tembec Industries, Inc., 8.625%, 06/30/2009.............................. BB+ 254 -------- 5,167 -------- ENERGY -- 7.2% 150 Belco Oil & Gas Corp., 8.875%, Ser B 09/15/2007...................................... BB-..... 154 @75 Clark R&M, Inc., 8.625%, 08/15/2008.............................. BB- 62
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- ENERGY -- (CONTINUED) $ 1,530 Enron Corp., 6.95%, 7/15/2028(a)............................. D $ 172 300 Key Energy Services, Inc., 8.375%, Ser C 03/01/2008........................ BB 312 845 Magnum Hunter Resources, Inc., 9.60%, 03/15/2012............................... B+ 887 1,060 Newpark Resources, Inc., 8.625%, Ser B 12/15/2007........................ B+ 996 625 Nuevo Energy Co., 9.375%, Ser B 10/01/2010........................ B+ 622 @403 Nuevo Energy Co., 9.50%, Ser B 06/01/2008......................... B+ 404 1,475 Pioneer Natural Resources Co., 6.50%, 01/15/2008............................... BB+ 1,500 500 Pioneer Natural Resources Co., 7.20%, 01/15/2028............................... BB+ 470 1,000 Pioneer Natural Resources Co., 9.625%, 04/01/2010.............................. BB+ 1,172 700 Plains Exploration and Production Co., 8.75%, 07/01/2012(g)............................ B 700 650 Pogo Producing Co., 10.375%, Ser B 02/15/2009....................... BB 699 @540 Pogo Producing Co., 8.25%, Ser B 04/15/2011......................... BB 564 @1,805 Swift Energy Co., 10.25%, 08/01/2009.............................. B 1,769 @320 Tesoro Petroleum Corp., 9.00%, Ser B 07/01/2008......................... B 166 460 Tesoro Petroleum Corp., 9.625%, 04/01/2012.............................. B 235 @500 Tesoro Petroleum Corp., 9.625%, Ser B 11/01/2008...................................... B 280 1,005 Vintage Petroleum, Inc., 8.25%, 05/01/2012............................... BB- 1,025 @475 Williams Companies, Inc., 6.50%, 08/01/2006............................... B 290 675 Williams Companies, Inc., 8.75%, 03/15/2032(g)............................ B 395 50 XTO Energy, Inc., 8.75%, Ser B 11/01/2009......................... BB- 52 -------- 12,926 -------- FINANCE -- 3.4% 623 Armkel LLC, 9.50%, 08/15/2009............................... B- 665 950 Burns Phillip Capital Ltd., 9.75%, 07/15/2012(g)............................ B 931 100 Colombia (Republic of), 8.375%, 02/15/2027.............................. BB 69 8 Ecuador (Republic of), 12.00%, 11/15/2012(g)........................... CCC+ 4
The accompanying notes are an integral part of this financial statement. 88 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) FINANCE -- (CONTINUED) $ 145 Ecuador (Republic of), Variable rate, 8/15/2030(g).................................... NR $ 59 250 Fed Republic of Brazil, 12.75%, 01/15/2020.............................. B+ 148 75 Interpool, Inc., 7.35%, 08/01/2007............................... BB+ 69 2,000 IPC Acquistion Corp., 11.50%, 12/15/2009.............................. B- 1,560 8 Republic of Ecuador, 12.00%, 11/15/2012(g)........................... CCC+ 4 145 Republic of Ecuador, Variable rate, 8/15/2030(g).................................... NR 59 75 RFS Partnership L.P., 9.75%, 03/01/2012............................... B+ 75 400 Russian Federation National Govt., 11.00%, 07/24/2018(g)........................... BB- 459 605 Ventas Realty L.P., Inc., 8.75%, 05/01/2009............................... BB- 596 225 Western Financial Bank, 9.625%, 05/15/2012.............................. BB- 212 1,420 Xerox Credit Corp., 6.10%, 12/16/2003............................... B+ 1,314 -------- 6,161 -------- HEALTH CARE -- 2.7% 750 AdvancePCS, 8.50%, 04/01/2008............................... BB 769 @515 Alaris Medical Systems, Inc., 11.625%, Ser B 12/01/2006....................... B+ 572 270 Hanger Orthopedic Group, Inc., 10.375%, 02/15/2009............................. B- 289 1,345 IASIS Healthcare Corp., 13.00%, 10/15/2009.............................. CCC+ 1,372 @1,100 Select Medical Corp., 9.50%, 06/15/2009............................... B 1,111 @580 United Surgical Partners International, Inc., 10.00%, 12/15/2011.............................. B- 580 260 Vanguard Health Systems, Inc., 9.75%, 08/01/2011............................... B- 246 -------- 4,939 -------- SERVICES -- 9.8% 300 Allied Waste Industries, Inc., 6.375%, 01/15/2008.............................. BB- 257 500 Allied Waste Industries, Inc., 7.875%, 03/15/2005.............................. BB- 484 345 Allied Waste North America, Inc., 7.625% Ser B 01/01/2006......................... BB- 338 900 Allied Waste North America, 8.875%, Ser B 04/01/2008........................ BB- 891
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- SERVICES -- (CONTINUED) $ 10,117 Australis Media Ltd., 15.75% Disc Note 05/15/2003 (with warrants)(a)(e)................................. NR $ 1 @1,305 Browning-Ferris Industries, Inc., 7.40%, 09/15/2035............................... BB- 981 @1,275 Callahan Nordrhein-Westfalen, 14.00%, 07/15/2010(a)(e)........................ NR 38 920 Dex Media East LLC, 9.875%, 11/15/2009(g)........................... B 948 1,800 Encompass Services Corp., 10.50%, 05/01/2009(e)........................... D 72 825 Hollinger International Publishing, Inc., 9.25%, 02/01/2006............................... B 829 700 Hollinger International Publishing, Inc., 9.25%, 03/15/2007............................... B 704 1,185 John Q. Hammons Hotels, Inc., 8.875%, Ser B 05/15/2012...................................... B 1,141 400 K-III Communications Corp., 8.50%, Ser B 02/01/2006......................... B 344 450 Park Place Entertainment Corp., 9.375%, 02/15/2007.............................. BB+ 472 @1,000 Penn National Gaming, Inc., 11.125%, Ser B 03/01/2008....................... B- 1,076 890 Petroleum Geo-Services ASA, 8.15%, 07/15/2029............................... B- 240 3,110 Petroleum Geo-Services ASA, 7.125%, 3/30/2028............................... B- 840 250 Primedia, Inc., 10.25%, 06/01/2004.............................. B 238 175 Primedia, Inc., 7.625%, 04/01/2008.............................. B 143 1,545 Quebecor Media, Inc., 11.125%, 07/15/2011............................. B 1,089 2,420 Service Corp. International, 6.50%, 03/15/2008............................... BB- 2,009 @670 Service Corp. International, 6.875%, 10/01/2007.............................. BB- 553 300 Service Corp. International, 7.875%, 02/01/2013.............................. BB- 249 900 Six Flags, Inc., 8.875%, 02/01/2010.............................. B 788 1,105 Stewart Enterprises, Inc., 10.75%, 07/01/2008.............................. B+ 1,188 900 Unisys Corp., 7.25%, 01/15/2005............................... BB+ 900 450 Unisys Corp., 8.125%, 06/01/2006.............................. BB+ 459
The accompanying notes are an integral part of this financial statement. 89 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) SERVICES -- (CONTINUED) $ 460 Venetian Casino Resort LLC, 11.00%, 06/15/2010(g)........................... B- $ 472 50 Webb (Del E.) Corp., 9.375%, 05/01/2009.............................. BB+ 53 -------- 17,797 -------- TECHNOLOGY -- 19.0% 1,640 Allegiance Telecom, Inc., 19.08%, Ser B 02/15/2008 (Zero coupon through 02/15/2003, thereafter 11.75%)(f)............... CC 221 1,250 Asia Global Crossing Ltd., 13.375%, 10/15/2010(a).......................... NR 238 1,325 AT&T Canada, Inc., 7.625%, 03/15/2005(a)........................... D 202 @1,015 Avaya, Inc., 11.125%, 04/01/2009............................. B+ 736 1,750 British Sky Broadcasting Group plc, 8.20%, 07/15/2009............................... BB+ 1,838 430 Charter Communications Holdings, 10.00%, 04/01/2009.............................. B- 184 1,755 Charter Communications Holdings, 10.00%, 05/15/2011.............................. B- 750 2,055 Charter Communications Holdings, 10.75%, 10/01/2009.............................. B- 909 485 Charter Communications Holdings, 8.625%, 04/01/2009.............................. B- 209 510 Charter Communications Holdings, 9.625%, 11/15/2009.............................. B- 218 1,525 EchoStar DBS Corp., 9.375%, 02/01/2009.............................. B+ 1,525 @890 Focal Communications Corp., 11.875%, Ser B 01/15/2010(e).................... CC 53 300 Focal Communications Corp., 12.125%, Ser B 02/15/2008 (Zero coupon through 02/15/2003, thereafter 12.125%)(e)(f).................................. CC 6 @6,475 Global Crossing Holdings Ltd., 9.50%, 11/15/2009(a)(e)................................ NR 97 3,510 Global Crossing Holdings Ltd., 9.625%, 05/15/2008(a)(e)................................ NR 53
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- TECHNOLOGY -- (CONTINUED) $ 1,000 International Cabletel, Inc., 11.50%, Ser B 02/01/2006(a)..................... D $ 70 520 KPNQwest N.V. (Euro), 7.125%, 06/01/2009(a)........................... NR 1 3,385 KPNQwest N.V., 8.125%, 06/01/2009(a)(e)........................ NR @@ 825 Level 3 Communications, Inc. (Euro), 11.25%, 03/15/2010.............................. CC 400 @1,350 Level 3 Communications, Inc., 11.00%, 03/15/2008.............................. CC 780 @3,680 Level 3 Communications, Inc., 11.25%, 03/15/2010.............................. CC 2,061 250 Level 3 Communications, Inc., 14.84%, 03/15/2010 (Zero coupon through 3/15/2005, thereafter 12.875%)(f)............... CC 63 @2,835 Level 3 Communications, Inc., 9.125%, 05/01/2008.............................. CC 1,602 150 Loral Space & Communications Ltd., 9.50%, 01/15/2006............................... CCC- 27 @1,400 Lucent Technologies, Inc., 5.50%, 11/15/2008............................... B- 588 6,053 Lucent Technologies, Inc., 6.45%, 03/15/2029............................... B- 2,542 6,818 Marconi plc, 8.375%, 09/15/2030.............................. C 750 @300 Metromedia Fiber Network, Inc. (Euro), 10.00%, 12/15/2009(a)........................... NR 6 770 Metromedia Fiber Network, Inc., 10.00%, 12/15/2009(a)(e)........................ NR 2 3,465 Metromedia Fiber Network, Inc., 10.00%, Ser B 11/15/2008(a)(e).................. NR 9 @480 Nextel Communications, Inc., 9.375%, 11/15/2009.............................. B 412 3,160 Nextel Communications, Inc., 9.75%, 10/31/2007 (Zero coupon through 10/31/2002, thereafter 9.75%)(f)................ B 2,797 950 Nextel Communications, Inc., 9.95%, 02/15/2008 (Zero coupon through 02/15/2003, thereafter 9.95%)(f)................ B 805
The accompanying notes are an integral part of this financial statement. 90 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) TECHNOLOGY -- (CONTINUED) $ 1,200 Nextlink Communications, Inc., 10.50%, 12/01/2009(a)(e)........................ NR $ 3 900 Nextlink Communications, Inc., 12.125%, 12/01/2009 (Zero coupon through 12/01/2004, thereafter 12.125%)(a)(e)........... NR 2 1,065 Nextlink Communications, Inc., 12.50%, 04/15/2006(a)(e)........................ NR 3 3,570 Nortel Networks Corp., 6.125%, 02/15/2006.............................. B 1,714 455 Nortel Networks Corp., 6.875%, 09/01/2023.............................. B 182 870 NTL Communications Corp. (Euro), 12.375%, 02/01/2008(a).......................... D 112 475 NTL Communications Corp. (Euro), 9.875%, 11/15/2009(a)........................... D 61 1,270 NTL Communications Corp., 11.875%, Ser B 10/01/2010(a).................... D 89 2,400 NTL Communications Corp., 13.91%, Ser B 10/01/2008 (Zero coupon through 10/01/2003, thereafter 12.375%)(f).............. D 132 430 PanAmSat Corp., 6.375%, 01/15/2008.............................. BB 407 2,215 PanAmSat Corp., 6.875%, 01/15/2028.............................. BB 1,870 635 PanAmSat Corp., 8.50%, 02/01/2012(g)............................ B 572 1,250 PSINet, Inc., 11.00%, 08/01/2009(a)(e)........................ NR 134 @2,260 Qwest Corp., 6.875%, 09/15/2033.............................. B- 1,559 825 Qwest Corp., 7.25%, 10/15/2035............................... B- 561 @900 Qwest Corp., 7.625%, 06/09/2003.............................. B- 868 635 Qwest Corp., 8.875%, 03/15/2012(g)........................... B- 578 1,375 RCN Corp., 11.125%, 10/15/2007............................. CCC- 220 5,195 RCN Corp., 34.99%, Ser B 02/15/2008 (Zero coupon through 02/15/2003, thereafter 9.80%)(f)............................ CCC- 805 800 Rogers Cantel, Inc., 9.375%, 06/01/2008.............................. BB+ 664 200 Rogers Cantel, Inc., 9.75%, 06/01/2016............................... BB+ 150
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- TECHNOLOGY -- (CONTINUED) $ 2,405 Telewest Communications plc, 11.00%, 10/01/2007(a)........................... D $ 277 260 Telewest Communications plc, 9.625%, 10/01/2006(a)........................... D 30 920 Time Warner Telecom, Inc., 9.75%, 07/15/2008............................... CCC+ 423 330 United Pan-Europe Communications N.V. (Euro), 10.875%, 11/01/2007(a).......................... D 16 300 United Pan-Europe Communications N.V., 10.875%, Ser B 08/01/2009(a).................... D 10 2,190 Williams Communications Group, Inc., 10.875%, 10/01/2009(a).......................... NR 290 4,640 Williams Communications Group, Inc., 11.70%, 08/01/2008(a)........................... NR 603 1,750 Williams Communications Group, Inc., 11.875%, 08/01/2010(a).......................... NR 228 @1,575 WorldCom, Inc., 7.50%, 05/15/2011(a)............................ D 272 8,310 WorldCom, Inc., 8.25%, 05/15/2031(a)............................ D 1,433 750 XO Communications, Inc., 10.75%, 11/15/2008(a)(e)........................ NR 2 -------- 34,424 -------- TRANSPORTATION -- 2.0% @780 AMR Corp., 9.00%, 08/01/2012............................... B+ 289 825 CP Ships Ltd., 10.375%, 07/15/2012(g).......................... BB+ 850 50 Delta Air Lines, Inc., 7.70%, 12/15/2005............................... BB- 31 @100 Delta Air Lines, Inc., 7.90%, 12/15/2009............................... BB- 59 1,820 Delta Air Lines, Inc., 8.30%, 12/15/2029............................... BB- 855 640 Delta Air Lines, Inc., 9.00%, 05/15/2016............................... BB- 320 650 Teekay Shipping Corp., 8.32%, 02/01/2008............................... BB+ 666 105 United Air Lines, Inc., 10.67%, Ser A 05/01/2004...................................... CC 22 100 United Air Lines, Inc., 9.125%, 01/15/2012.............................. CC 16 @2,530 United Air Lines, Inc., 9.75%, 08/15/2021CC............................. 417 -------- 3,525 -------- UTILITIES -- 4.5% 1,910 Calpine Canada Energy Financial, 8.50%, 05/01/2008............................... B+ 623
The accompanying notes are an integral part of this financial statement. 91 THE HARTFORD HIGH YIELD FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) UTILITIES -- (CONTINUED) $ 665 Calpine Corp., 4.00%, Conv. 12/26/2006......................... B+ $ 223 @150 Calpine Corp., 8.625%, 08/15/2010.............................. B+ 48 900 Champion Home Builders Co., 11.25%, 04/15/2007(g)........................... B 621 350 Cogentrix Energy, Inc., 8.75% Ser B 10/15/2008.......................... BB+ 177 350 CMS Energy Corp., 7.50%, 01/15/2009............................... B+ 252 80 CMS Energy Corp., 8.50%, 04/15/2011............................... NR 57 375 CMS Energy Corp., 8.90%, 07/15/2008............................... B+ 281 600 Kansas Gas & Electric Co., 6.50%, 08/01/2005............................... BB+ 577 425 Kansas Gas & Electric Co., 7.60%, 12/15/2003............................... BB+ 423 @3,605 Mission Energy Holding Co., 13.50%, 07/15/2008.............................. BB- 901 1,130 Sierra Pacific Power Co., 8.00%, Ser A 06/01/2008......................... BB 1,006 2,500 Transcontinental Gas Pipeline Corp., 6.125%, 01/15/2005.............................. B+ 2,350 800 Transcontinental Gas Pipeline Corp., 8.875%, 07/15/2012(g)........................... B+ 780 -------- 8,319 -------- Total corporate bonds: non-investment grade (cost $188,518).... $128,726 ========
SHARES - --------- COMMON STOCK -- 0.1% CONSUMER CYCLICAL -- 0.0% 1 Hosiery Corp. of America, Inc. Class A(a)(e)...... $ -- -------- SERVICES -- 0.0% 4 Splitrock Service (Warrants)(a)(e)................ 12 -------- TECHNOLOGY -- 0.1% @6 Adelphia Business Solutions, Inc. (with rights)(a)...................................... -- 33 McLeod USA, Inc. (Warrants)(a).................... 2 1 Minorplanet Systems USA, Inc. (Warrants)(a)(e).... 1 5 Nextlink Communications, Inc., 14.00% Conv Pfd PIK............................................. -- 13 Powertel, Inc. (Warrants)(a)(e)(h)................ 185 11 Telus Corp. (Warrants)(a)(e)(h)................... 27 -------- 215 -------- Total common stock (cost $483).................... $ 227 ========
MARKET SHARES VALUE(C) - --------- -------- PREFERRED STOCK -- 0.4% CAPITAL GOODS -- 0.1% 3 Xerox Corp., Conv. 7.50%(g)....................... $ 129 -------- CONSUMER CYCLICAL -- 0.3% 21 Rio Algom Ltd. ................................... 520 -------- TECHNOLOGY -- 0.0% 20 Adelphia Communications Corp., 7.50%, Conv. Ser F(a)............................................ 2 15 McLeodUSA, Inc. Conv. Pfd. 2.50% Ser A............ 33 -------- 35 -------- Total preferred stock (cost $1,105)............... $ 684 ======== Total long-term investments (cost $231,890)....... $172,278 ========
PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 2.4% FINANCE -- 2.4% $4,331 Joint Repurchase Agreement, 1.86%, 11/01/2002 (Note 2f)..................... $ 4,331 2 U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. 2 -------- Total short-term investments (cost $4,333)........ $ 4,333 ======== Total investments in securities (cost $236,223)(b).................................... $176,611 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $176,611 Foreign currency on deposit with custodian (cost $191)......................................... 197 Collateral for securities lending transactions (Note 2d)..................................... 25,118 Receivables: Investment securities sold.................... 2,094 Fund shares sold.............................. 788 Dividends and interest........................ 5,083 Other assets.................................... 51 -------- Total assets.................................... 209,942 -------- LIABILITIES Cash overdraft.................................. 289 Payables: Payable upon return of securities loaned (Note 2d)......................................... 25,118 Investment securities purchased............... 3,352 Fund shares redeemed.......................... 235 Payable for investment management and advisory fees (Note 3)............................... 113 Payable for distribution fees (Note 3)........ 21 Accrued Expenses.............................. 83 -------- Total liabilities............................... 29,211 -------- Net assets...................................... $180,731 ========
The accompanying notes are an integral part of this financial statement. 92 - --------------------------------------------------------------------------------
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 26,863 shares outstanding..................... $285,999 Accumulated undistributed net investment loss... (304) Accumulated net realized gain on investments and foreign currency transactions................. (45,223) Unrealized depreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency... (59,741) -------- Net assets...................................... $180,731 ========
Class A Net asset value per share ($95,760 / 14,220 shares outstanding)............................ $6.73 ===== Maximum offering price per share ($6.73 / 95.5%)................................ $7.05 ===== Class B Net asset value per share ($44,359 / 6,600 shares outstanding)................................... $6.72 ===== Class C Net asset value per share ($40,611 / 6,043 shares outstanding)................................... $6.72 ===== Maximum offering price per share ($6.72 / 99.0%)................................ $6.79 ===== Class Y Net asset value per share ($1 / @@ shares outstanding)................................... $6.73 =====
(a) Presently non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $237,337 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $ 5,726 Unrealized depreciation.................................................. (66,452) -------- Net unrealized depreciation.............................................. $(60,726) ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 14.79% of total net assets as of October 31, 2002. (e) Securities issued within the terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors" these investments have been identified by portfolio management as illiquid securities:
PERIOD SHARES/ COST ACQUIRED PAR SECURITY BASIS -------- ------- ------------------------------- ------ 1996 10,117 Australis Media Ltd. due 2003........................... $7,595 2000 1,275 Callahan Nordrhein-Westfalen due 2010....................... 1,209 2001 1,800 Encompass Services Corp., due 2009........................... 1,752
PERIOD SHARES/ COST ACQUIRED PAR SECURITY BASIS -------- ------- ------------------------------- ------ 2001 300 Focal Communications Corp., due 2008........................... $ 256 2001 890 Focal Communications Corp., due 2010........................... 516 1999 3,510 Global Crossing Holdings, Ltd due 2008....................... 1,076 1999 6,475 Global Crossing Holdings, Ltd due 2009....................... 3,366 1994 1 Hosiery Corp. of America, Inc. Class A -- 144A................ 21 2001 3,385 KPNQwest N.V., due 2009........ 1,885 1999 100 Lukens, Inc. due 2004.......... 97 1998 3,465 Metromedia Fiber Network, Inc. due 2008....................... 3,103 2001 770 Metromedia Fiber Network, Inc. due 2009....................... 383 1997 1 Minorplanet Systems USA (Warrants) -- 144A............. 13 1998 1,065 Nextlink Communications, Inc. due 2006....................... 791 1999 2,100 Nextlink Communications, Inc. due 2009....................... 1,847 1997 13 Powertel, Inc. (Warrants) -- 144A............. 94 2000 1,250 PSINet, Inc. due 2009.......... 851 1998 4 Splitrock Serivice (Warrants) -- 144A............. 46 1996 11 Telus Corp. (Warrants) -- 144A............. 76 2001 750 XO Communications, Inc. due 2008........................... 331
The aggregate value of these securities at October 31, 2002, was $704, which represents 0.39% of total net assets. (f) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. (g) Securities sold within the terms of a private placement memorandum, exempt form registration under Section 144A of the securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2002, was $13,757, which represents 7.61% of total net assets. (h) Securities are valued at fair value under guidelines established and approved by the board of directors. Total fair valued securities had a value of $217, which represents 0.12% of total net assets at October 31, 2002. See note 2b of accompanying Notes to Financial Statements. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 93 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- 44.1% BASIC MATERIALS -- 8.2% $ 460 Abitibi Consolidated, Inc., 8.30%, 08/01/2005............................... BBB- $ 481 1,750 Alcan, Inc., 7.25%, 03/15/2031............................... A- 2,007 2,000 Boise Cascade Corp., 7.50%, 02/01/2008............................... Baa3* 2,073 400 Bowater Canada Finance, 7.95%, 11/15/2011............................... BBB- 391 @1,550 Bowater, Inc., 9.00%, 08/01/2009............................... BBB- 1,658 1,240 Champion International Corp., 7.20%, 11/01/2026............................... BBB 1,407 650 Crompton Corp., 8.50%, 03/15/2005............................... BBB- 653 500 Cypress Amax Minerals Co., 8.375%, 02/01/2023.............................. BBB- 440 1,270 Domtar, Inc., 7.875%, 10/15/2011.............................. BBB- 1,432 2,250 Dow Chemical Co., 5.75%, 12/15/2008............................... A 2,278 @300 Du Pont (E.I.) de Nemours & Co., 6.75%, 09/01/2007............................... AA- 345 720 Ferro Corp., 7.125%, 04/01/2028.............................. BBB- 595 1,200 Inco Ltd., 7.75%, 05/15/2012............................... BBB- 1,284 @430 International Paper Co., 6.75%, 09/01/2011............................... BBB 471 500 Mead Corp., 7.55%, 03/01/2047............................... BBB 500 580 Methanex Corp., 7.75%, 08/15/2005............................... BBB- 580 185 Methanex Corp., 8.75%, 08/15/2012............................... BBB- 192 335 Newmont Mining Corp. (Holding Co.), 8.625%, 05/15/2011.............................. BBB 390 560 Noranda, Inc., 7.00%, 07/15/2005............................... BBB- 571 @2,330 Nova Chemicals Corp., 7.00%, 05/15/2006............................... BBB- 2,074 750 Nova Chemicals Ltd., 7.875%, 09/15/2025.............................. BBB- 532 840 Olin Corp., 9.125%, 12/15/2011.............................. BBB 950 440 Phelps Dodge Corp., 8.75%, 06/01/2011............................... BBB- 442 5,130 Phelps Dodge Corp., 9.50%, 06/01/2031............................... BBB- 4,978 400 Placer Dome, Inc., 7.125%, 05/15/2003.............................. BBB+ 408 600 Placer Dome, Inc., 7.125%, 06/15/2007.............................. BBB+ 663 300 PolyOne Corp., 6.875%, 12/01/2004.............................. Baa3 299
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- BASIC MATERIALS -- (CONTINUED) $ 640 Potash Corp. of Saskatchewan, Inc., 7.125%, 06/15/2007.............................. BBB+ $ 722 1,025 Potash Corp. of Saskatchewan, Inc., 7.75%, 05/31/2011............................... BBB+ 1,192 1,900 Potlatch Corp., 9.425%, 12/01/2009.............................. BBB- 2,120 2,500 Praxair, Inc., 4.75%, 07/15/2007............................... BBB+ 2,631 675 Santa Fe Pacific Gold Corp., 8.375%, 07/01/2005.............................. BBB 732 2,000 Union Camp Corp., 7.00%, 08/15/2006............................... BBB 2,195 -------- 37,686 -------- CAPITAL GOODS -- 0.5% 2,422 Tyco International Group S.A., 6.375%, 02/15/2006.............................. BBB- 2,180 -------- CONSUMER CYCLICAL -- 1.0% 1,200 CRH America, Inc., 6.95%, 03/15/2012............................... BBB+ 1,325 2,250 Daimler Chrysler N.A. Holdings, 7.30%, 01/15/2012............................... BBB+ 2,436 545 Millennium America, Inc., 7.00%, 11/151/2006.............................. BBB- 509 470 Millennium America, Inc., 7.625%, 11/15/2026.............................. BBB- 367 -------- 4,637 -------- CONSUMER STAPLES -- 3.2% 1,370 Archer-Daniels-Midland Co., 6.95%, 12/15/2097............................... A+ 1,476 4,000 Buoni Poliennali Del Tesoro (Euro), 4.50%, 07/15/2003............................... AA 4,001 625 ConAgra Foods, Inc., 7.00%, 10/01/2028............................... BBB+ 686 1,635 ConAgra Foods, Inc., 7.50%, 09/15/2005............................... BBB+ 1,830 1,000 ConAgra Foods, Inc., 2.475%, 09/10/2003(e)........................... BBB+ 1,002 600 Dole Foods Co., 7.25%, 05/01/2009............................... BBB- 547 1,000 Entergy Gulf States, 3.01%, 06/02/2003(e)(g)......................... BBB- 1,000 1,875 Weyerhaeuser Co., 5.50%, 03/15/2005............................... BBB 1,946 1,200 Weyerhaeuser Co., 5.95%, 11/01/2008............................... BBB 1,244 700 Weyerhaeuser Co., 7.25%, 07/01/2013............................... BBB 773 -------- 14,505 --------
The accompanying notes are an integral part of this financial statement. 94 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) ENERGY -- 4.9% $ 225 Burlington Resources Finance Co., 6.68%, 02/15/2011............................... BBB+ $ 249 3,000 Coastal Corp., 7.625%, 09/01/2008.............................. BBB 2,175 1,885 Conoco Funding Co., 6.35%, 10/15/2011............................... A- 2,074 1,275 Consolidated Natural Gas Co., 5.375%, Ser B 11/01/2006........................ BBB+ 1,315 1,300 Consumers Energy Co., 6.25%, 09/15/2006............................... BBB- 1,241 @1,875 Kerr-McGee Corp., 6.875%, 09/15/2011.............................. BBB 2,101 500 Lasmo (USA), Inc., 7.50%, 06/30/2006............................... AA 571 300 Lasmo (USA), Inc., 8.375%, 06/01/2023.............................. AA 314 650 Occidental Petroleum Corp., 7.375%, 11/15/2008.............................. BBB 748 950 Ocean Energy, Inc., 7.25%, 10/01/2011............................... BBB- 1,069 4,000 PanCanadian Petroleum Ltd., 6.30%, 11/01/2011............................... A- 4,312 1,500 PanCanadian Petroleum Ltd., 7.20%, 11/01/2031............................... A- 1,646 1,000 Valero Energy Corp., 6.125%, 04/15/2007.............................. BBB 999 1,450 Valero Energy Corp., 6.875%, 04/15/2012.............................. BBB 1,398 500 Valero Energy Corp., 8.375%, 06/15/2005.............................. BBB 520 1,500 Valero Energy Corp., 8.75%, 06/15/2030............................... BBB 1,541 250 Varco International, Inc., 7.50%, 02/15/2008............................... BBB+ 277 -------- 22,550 -------- FINANCE -- 10.4% 2,800 Aetna, Inc., 7.875%, 03/01/2011.............................. BBB 3,099 6,700 Austria (Republic of) (Euro), 4.30%, 07/15/2003............................... AAA 6,691 @575 Bank of Tokyo -- Mitsubishi Ltd., 8.40%, 04/15/2010............................... BBB 676 545 Bombardier Capital, Inc., 3.86%, 11/21/2002(e)(g)......................... BBB+ 543 4,400 Buoni Poliennali Del Tesoro (Euro), 4.50%, 03/01/2007............................... AA 4,480 600 Comed Transitional Funding Trust, 5.44%, 03/25/2007............................... AAA 631 4,740 Deutsche Bundesrepublik (Euro), 6.00%, Ser 93 09/15/2003........................ AAA 4,808
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- FINANCE -- (CONTINUED) $ 465 ERAC USA Finance Co., 8.25%, 05/01/2005(g)............................ BBB+ $ 505 @750 Ford Motor Credit Co., 6.50%, 01/25/2007............................... BBB 679 750 Ford Motor Credit Co., 6.875%, 02/01/2006.............................. BBB 691 1,500 Ford Motor Credit Co., 7.375%, 10-28-2009.............................. BBB 1,358 4,884 French Treasury Note (Euro), 4.50%, 07/12/2003 AAA 4,882 941 General Motors Acceptance Corp., 6.125%, 09/15/2006.............................. BBB 905 4,000 International Bank Reconstruction & Development (Australian Dollar), 5.50%, 05/14/2003............................... AAA 2,229 4,350 Netherlands Government (Euro), 6.50%, 04/15/2003............................... AAA 4,370 8,000 New South Wales Treasury Corp. (Australian Dollar), 7.00%, 04/01/2004............................... AAA 4,563 750 PP&L Transition Bond Co., 6.83%, Ser 1999-1 Class A5 03/25/2007........... AAA 806 2,750 Queensland Treasury Corp. (Australian Dollar), 8.00%, 05/14/2003............................... AAA 1,552 250 Southern Investments UK plc, 6.80%, 12/01/2006............................... BBB 267 1,750 TIAA Global Markets, 4.125%, 11/15/2007(g)........................... AAA 1,779 970 United Kingdom Treasury (British Pound), 8.00%, 06/10/2003............................... AAA 1,557 720 Wellpoint Health Networks, Inc., 6.375%, 06/15/2006.............................. A- 774 -------- 47,845 -------- HEALTH CARE -- 2.6% 800 Aetna Corp., 7.375%, 03/01/2006.............................. BBB 859 680 HCA, Inc., 6.95%, 05/01/2012............................... BBB- 689 3,400 HCA, Inc., 7.125%, 06/01/2006.............................. BBB- 3,573 300 HCA, Inc., 7.50%, 11/15/2095............................... BBB- 273 785 HCR Manor Care, Inc., 7.50%, 06/15/2006............................... BBB 795 750 Humana, Inc., 7.25%, 08/01/2006............................... BBB 797 150 Manor Care, Inc., 8.00%, 03/01/2008............................... BBB 155
The accompanying notes are an integral part of this financial statement. 95 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED) HEALTH CARE -- (CONTINUED) $ @600 Quest Diagnostics, Inc., 6.75%, 07/12/2006............................... BBB- $ 654 4,200 Tenet Healthcare Corp., 5.375%, 11/15/2006.............................. BBB 4,368 -------- 12,163 -------- SERVICES -- 1.8% 1,100 Clear Channel Communications, Inc., 6.00%, 11/01/2006............................... BBB- 1,132 735 Clear Channel Communications, Inc., 7.25%, 09/15/2003............................... BBB- 749 @1,350 Computer Sciences Corp., 6.75%, 06/15/2006............................... A 1,440 500 FedEx Corp., 6.625%, 02/12/2004.............................. BBB 523 1,350 MGM Mirage, Inc., 8.50%, 09/15/2010............................... BBB- 1,471 @113 Paramount Communications, Inc., 7.50%, 07/15/2023............................... A- 118 3,000 Starwood Hotels & Resorts Worldwide, Inc., 7.375%, 05/01/2007(g)........................... BBB- 2,865 -------- 8,298 -------- TECHNOLOGY -- 10.7% 4,210 AOL Time Warner, Inc., 6.15%, 05/01/2007............................... BBB+ 4,164 500 Apogent Technologies, Inc., 8.00%, Ser B 04/01/2011......................... BBB 572 4,820 AT&T Corp., 8.00%, 11/15/2031............................... BBB+ 4,603 300 AT&T Corp., 8.00%, 11/15/2031(g)............................ BBB+ 287 1,400 AT&T Wireless Services, Inc., 7.50%, 05/01/2007............................... BBB 1,239 4,300 British Telecommunications plc, 8.875%, 12/15/2030.............................. A- 5,190 4,250 Deutsche Telekom International Financial B.V., 9.25%, 06/01/2032............................... BBB+ 5,011 2,250 France Telecom S.A., 8.25%, 03/01/2011............................... BBB- 2,482 2,050 France Telecom, 8.70%, 03/01/2006............................... BBB- 2,196 1,475 Hewlett-Packard Co., 5.75%, 12/15/2006............................... A- 1,535 1,660 News America Holdings, Inc., 7.75%, 12/01/2045............................... BBB- 1,450 750 News America Holdings, Inc., 8.875%, 04/26/2023.............................. BBB- 766 1,045 Rockwell International Corp., 5.20%, 01/15/2098............................... A 760 1,500 Rockwell International Corp., 6.70%, 01/15/2028............................... A 1,522
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- TECHNOLOGY -- (CONTINUED) $ 420 Shaw Communications, Inc., 8.25%, 04/11/2010............................... BBB $ 392 4,575 Sprint Capital Corp., 7.90%, 03/15/2005............................... Baa3* 4,132 2,600 USA Networks, Inc., 6.75%, 11/15/2005............................... BBB- 2,563 6,500 Verizon New York, Inc., 6.875%, Ser A 04/01/2012........................ A+ 6,951 3,000 Vodafone Group plc, 7.75%, 02/15/2010............................... A 3,429 -------- 49,244 -------- TRANSPORTATION -- 0.0% 250 American Airlines, Inc., 7.858%, Ser 2001-2 Cl A-2 10/01/2011............ AA 227 -------- UTILITIES -- 0.8% 700 Appalachian Power Co., 2.10%, 08/20/2003(e)............................ BBB+ 701 250 Cleveland Electric Illuminating Co., 7.13%, Ser B 07/01/2007......................... AAA 283 565 Detroit Edison Co., 6.125%, 10/01/2010.............................. A- 609 1,100 Nisource Finance Corp., 7.875%, 11/15/2010.............................. BBB 1,072 200 Pacificorp, 6.12%, 01/15/2006............................... A 216 125 Public Service Electric & Gas, 7.00%, 09/01/2024............................... AAA 130 155 Tennessee Gas Pipeline Co., 7.00%, 10/15/2028............................... BBB+ 132 400 Western Resources, Inc., 7.875%, 05/01/2007.............................. BBB- 385 -------- 3,528 -------- Total corporate bonds: investment grade (cost $195,626)........ $202,863 ======== CORPORATE BONDS: NON-INVESTMENT GRADE -- 7.5% BASIC MATERIALS -- 1.6% 450 Equistar Chemicals L.P., 7.55%, 02/15/2026............................... BB 328 2,580 FMC Corp., 10.25%, 11/01/2009(g)........................... BB+ 2,657 1,130 Georgia-Pacific Corp., 7.25%, 06/01/2028............................... BB+ 791 @500 Georgia-Pacific Corp., 7.50%, 05/15/2006............................... BB+ 440 2,150 Georgia-Pacific Corp., 8.875%, 05/15/2031.............................. BB+ 1,656 350 Oregon Steel Mills, Inc., 10.00%, 07/15/2009(g)........................... BB- 350 1,280 United States Steel LLC, 10.75%, 08/01/2008.............................. BB 1,261 -------- 7,483 --------
The accompanying notes are an integral part of this financial statement. 96 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) CAPITAL GOODS -- 0.3% $ 300 Sequa Corp., 8.875%, Ser B 04/01/2008........................ BB- $ 252 985 Xerox Corp., 9.75%, 01/15/2009(g)............................ B+ 840 -------- 1,092 -------- CONSUMER STAPLES -- 0.5% 2,730 Solutia, Inc., 11.25%, 07/15/2009 (with warrants)(g)........... BB- 2,211 -------- ENERGY -- 0.7% 450 Pioneer Natural Resources Co., 6.50%, 01/15/2008............................... BB+ 457 1,465 Pioneer Natural Resources Co., 7.20%, 01/15/2028............................... BB+ 1,377 @80 Tesoro Petroleum Corp., 9.00%, Ser B 07/01/2008......................... B 42 450 Williams Companies, Inc., 8.75%, 03/15/2032(g) B 263 1,105 XTO Energy, Inc., 7.50%, 04/15/2012............................... BB 1,171 -------- 3,310 -------- FINANCE -- 0.1% 120 Interpool, Inc., 7.20%, 08/01/2007............................... BB+ 110 300 Trenwick Group, Inc., 6.70%, 04/01/2003(a)(f)......................... B 293 -------- 403 -------- SERVICES -- 0.1% 710 Petroleum Geo Services ASA, 8.15%, 07/15/2029............................... B- 192 1,635 Petroleum GeoServices ASA, 7.125%, 03/30/2028.............................. B- 441 -------- 633 -------- TECHNOLOGY -- 2.5% 1,630 AT&T Canada, Inc., 7.625%, 03/15/2005(a)........................... D 249 1,030 British Sky Broadcasting Group plc, 8.20%, 07/15/2009............................... BB+ 1,081 455 Global Crossing Holdings Ltd., 8.70%, 08/01/2007(a)(f)......................... NR 7 @2,385 Global Crossing Holdings Ltd., 9.50%, 11/15/2009(a)(f)......................... NR 36
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- TECHNOLOGY -- (CONTINUED) $ 1,000 Global Crossing Holdings Ltd., 9.625%, 05/15/2008(a)(f)........................ NR $ 15 500 KPNQwest N.V., 8.125%, 06/01/2009(a)(f)........................ NR -- 3,724 Lucent Technologies, Inc., 6.45%, 03/15/2029............................... B- 1,564 280 Lucent Technologies, Inc., 6.50%, 01/15/2028............................... B- 118 @1,300 Marconi Corp. plc, 7.75%, 09/15/2010(f)............................ C 143 5,272 Marconi Corp. plc, 8.375%, 09/15/2030(f)........................... C 580 275 Nortel Networks Corp., 4.25%, Conv. 09/01/2008......................... B 108 1,690 Nortel Networks Corp., 6.125%, 02/15/2006.............................. B 811 1,415 Nortel Networks Corp., 6.875%, 09/01/2023.............................. B 566 320 PanAmSat Corp., 6.375%, 01/15/2008.............................. BB 303 325 PanAmSat Corp., 6.875%, 01/15/2028.............................. BB 274 750 Qwest Corp., 6.625%, 09/15/2005.............................. B- 675 2,880 Qwest Corp., 6.875%, 09/15/2033.............................. B- 1,987 1,685 Qwest Corp., 8.875%, 03/15/2012(g)........................... B- 1,533 220 Williams Communications Group, Inc., 10.875%, 10/01/2009(a).......................... NR 29 7,070 WorldCom, Inc., 8.25%, 05/15/2031(a)............................ D 1,220 -------- 11,299 -------- TRANSPORTATION -- 0.2% 120 Delta Air Lines, Inc., 7.70%, 12/15/2005............................... BB- 74 @240 Delta Air Lines, Inc., 7.90%, 12/15/2009............................... BB- 142 915 Delta Air Lines, Inc., 8.30%, 12/15/2029............................... BB- 430 280 Teekay Shipping Corp., 8.32%, 02/01/2008............................... BB+ 287 580 United Air Lines, Inc., 9.75%, 08/15/2021............................... CC 96 -------- 1,029 --------
The accompanying notes are an integral part of this financial statement. 97 THE HARTFORD TOTAL RETURN BOND FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED) UTILITIES -- 1.5% $ 1,120 Kansas Gas & Electric Co., 7.60%, 12/15/2003............................... BB+ $ 1,115 445 Mission Energy Holding Co., 13.50%, 07/15/2008.............................. BB- 111 @1,700 Southern California Edison Co., 7.125%, 07/15/2025.............................. BB 1,538 1,850 Transcontinental Gas Pipeline Corp., 6.125%, 01/15/2005.............................. B+ 1,739 500 Transcontinental Gas Pipeline Corp., 7.25%, 12/01/2026............................... B+ 410 2,100 Transcontinental Gas Pipeline Corp., 8.875%, 07/15/2012(g)........................... B+ 2,048 -------- 6,961 -------- Total corporate bonds: non-investment grade (cost $45,932)..... $ 34,421 ======== U.S. GOVERNMENT SECURITIES -- 41.9% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- MORTGAGE BACKED SECURITIES -- 4.6% 14,351 6.00% 2013 -- 2016............................................. 14,997 1,821 6.50% 2031..................................................... 1,887 4,236 7.50% 2029 -- 2031............................................. 4,482 -------- 21,366 -------- GOVERNMENT NATIONAL MORTGAGE -- MORTGAGE BACKED SECURITIES -- 21.6% 2,950 6.00% 2032..................................................... 3,057 82,091 6.50% 2028 -- 2032............................................. 85,559 10,396 7.00% 2031..................................................... 10,921 -------- 99,537 -------- OTHER DIRECT FEDERAL OBLIGATIONS -- 0.1% 250 6.694% 2007(e)................................................. 259 -------- U.S. TREASURY SECURITIES -- 15.6% @1,450 3.25% 2007..................................................... 1,483 @5,531 4.25% 2010(h).................................................. 6,244 @1,325 4.375% 2007.................................................... 1,420 @13,450 4.375% 2012.................................................... 13,963 @8,100 4.875% 2012.................................................... 8,734 @320 5.00% 2011..................................................... 349 @6,450 5.375% 2031.................................................... 6,808 @1,900 5.50% 2008..................................................... 2,138 @800 5.75% 2010..................................................... 914 @16,500 6.00% 2009..................................................... 19,071 @6,730 6.25% 2030..................................................... 7,817
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(C) - --------- ----------- -------- U.S. TREASURY SECURITIES -- (CONTINUED) $ @1,200 6.50% 2006 -- 2010............................................. $ 1,387 @1,350 6.625% 2007.................................................... 1,578 -------- 71,906 -------- Total U.S. government securities (cost $187,326)............... $193,068 ======== SHARES - --------- PREFERRED STOCK -- 0.1% CAPITAL GOODS -- 0.1% 8 Xerox Corp., Conv. 7.50%(g)..................................................... 402 -------- Total preferred stock (cost $425).............................. $ 402 ======== Total long-term investments (cost $429,309).............................................. $430,754 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM INVESTMENTS -- 7.2% FINANCE -- 7.2% $ 33,075 Joint Repurchase Agreement, 1.86%, 11/01/2002 (Note 2f).................................. $ 33,075 -------- Total short-term investments (cost $33,075)............................................... $ 33,075 ======== Total investments in securities (cost $462,384)(b)........................................... $463,829 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $463,829 Cash............................................ 1 Foreign currency on deposit with custodian (cost $2,389)....................................... 2,399 Collateral for securities lending transactions (Note 2)...................................... 70,622 Receivables: Investment securities sold.................... 5,883 Fund shares sold.............................. 2,813 Dividends and interest........................ 6,374 Other assets.................................... 132 -------- Total assets.................................... 552,053 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2).......................................... 70,622 Investment securities purchased............... 19,398 Fund shares redeemed.......................... 1,194 Payable for investment management and advisory fees (Note 3)............................... 250 Payable for distribution fees (Note 3)........ 53 Accrued Expenses.............................. 168 -------- Total liabilities............................... 91,685 -------- Net assets...................................... $460,368 ========
The accompanying notes are an integral part of this financial statement. 98 - -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 300,000 shares authorized; 42,722 shares outstanding..................... $454,237 Accumulated undistributed net investment income........................................ 555 Accumulated net realized gain on investments and foreign currency transactions................. 4,116 Unrealized appreciation of investments in securities and the translations of assets and liabilities denominated in foreign currency... 1,460 -------- Net assets...................................... $460,368 ========
Class A Net asset value per share ($215,083 / 19,951 shares outstanding)........................... $10.78 ------ Maximum offering price per share ($10.78 / 95.5%)................................ $11.29 ====== Class B Net asset value per share ($98,028 / 9,133 shares outstanding)........................... $10.73 ====== Class C Net asset value per share ($107,479 / 9,980 shares outstanding)........................... $10.77 ------ Maximum offering price per share ($10.77 / 99.0%)................................ $10.88 ====== Class Y Net asset value per share ($39,778 / 3,658 shares outstanding)........................... $10.87 ======
(a) Presently non-incoming producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. (b) At October 31, 2002, the cost of securities for federal income tax purposes is $462,781 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation..................... $ 15,281 Unrealized depreciation..................... $(14,233) -------- Net unrealized appreciation $ 1,048 ========
(c) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (d) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. Market value of investments in foreign securities represents 17.76% of total net assets as of October 31, 2002. (e) Variable rate securities; the yield reported is the rate in effect as of October 31, 2002. (f) Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". These investments have been identified by portfolio management as illiquid securities:
PERIOD PRINCIPAL COST ACQUIRED AMOUNT SECURITY BASIS --------- --------- -------------------------- ------ 2001 $1,000 Global Crossing Holdings Ltd., due 2008 $ 929 2001 455 Global Crossing Holdings Ltd., due 2007 164 2001 2,385 Global Crossing Holdings Ltd., due 2009 1,250 2001-2002 500 KPNQwest N.V., due 2009 284 2001 1,300 Marconi Corp. plc, due 2010 497 2001 5,272 Marconi Corp. plc, due 2030 3,007 1998 300 Trenwick Group, Inc., due 2003 300
The aggregate value of these securities at October 31, 2002, was $1,074, which represents 0.23% of total net assets. (g) Securities issued within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are determined to be liquid. The aggregate value of these securities at October 31, 2002, was $17,283, which represents 3.75% of total net assets. (h) U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. * Moody's Rating.
The accompanying notes are an integral part of this financial statement. 99 THE HARTFORD TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- 96.3% GENERAL OBLIGATIONS -- 35.9% $1,000 Anoka-Hennepin Independent School District #11, 5.00%, School District Cr Enhancement PG-A 02/15/2015...................................... AA+ $ 1,055 1,300 Becker (City of), MN, Independent School District #726, 6.00%, General Obligation Ser A FSA Insured 02/01/2017...................................... Aaa* 1,454 1,000 Bloomington (City of), MN, Independent School District #271, 5.45%, General Obligation Ser A 02/01/2012...... Aa1* 1,102 500 Brainerd (City of), MN, 5.375%, Independent School District #181 Ser A FGIC Insured 02/01/2016......................... Aaa* 546 620 Hennepin County, MN, 5.00%, General Obligation Ser B 12/01/2017...... AAA 647 1,250 Hopkins (City of), MN, Independent School District #270, 5.00%, General Obligation 02/01/2011............ Aa1* 1,369 835 Minneapolis (City of), MN, 4.75%, General Obligation Ser B 12/01/2010...... AAA 901 500 Minneapolis (City of), MN, 5.00%, General Obligation Ref Ser D 02/01/2016...................................... AAA 526 250 Minneapolis (City of), MN, 5.00%, Parking Facility General Obligation 12/01/2020...................................... AAA 256 250 Minneapolis (City of), MN, School District #001, 5.00%, General Obligation 02/01/2009............ AAA 275 1,000 Minnesota (State of), 5.25%, General Obligation 08/01/2016............ AAA 1,070 375 Moorhead (City of), MN, 5.00%, Independent School District #152, FGIC Insured 04/01/2018.............................. Aaa* 390 785 Mounds View (City of), MN, Independent School District #621, 5.25%, General Obligation Ser A 02/01/2014...... Aa1* 853
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- GENERAL OBLIGATIONS -- (CONTINUED) $ 500 Osseo (City of), MN, Independent School District #279, 5.00%, General Obligation Ser B 02/01/2012...... Aa1* $ 541 250 Ramsey County, MN, 4.50%, General Obligation Capital Improvement Plan Ser A 02/01/2009........................... AAA 268 1,950 Rosemount (City of), MN, Independent School District #196, 5.70%, Zero Coupon General Obligation MBIA Insured 04/01/2015(d)........................... AA+ 1,111 250 St. Paul (City of), MN, 5.00%, General Obligation Capital Improvement Ser A 03/01/2007................................ AAA 273 650 St. Paul (City of), MN, Independent School District #625, 5.00%, General Obligation Ser B 02/01/2010...... AA+ 711 500 St. Paul (City of), MN, Independent School District #625, 5.00%, General Obligation Ser B 02/01/2011...... AA+ 549 ------- 13,897 ------- HEALTH CARE/SERVICES -- 13.0% 1,500 Minneapolis (City of), MN, 5.125%, Health Care System Rev Fairview Health Services Ser B 05/15/2008....................... AAA 1,642 370 Minneapolis (City of), MN, 6.00%, Health Care Fac Rev Bond Shelter Care Foundation Ser A 04/01/2010...................................... NR 360 1,000 Minnesota Agriculture and Economic Development Board, 5.25%, Healthcare Fac Rev Benedictine Health Ser A MBIA Insured 02/15/2014....................... AAA 1,077 250 Rochester (City of), MN, 5.80%, Health Care Fac Rev Mayo Foundation/Mayo Medical Center Ser I 11/15/2007................. AA 281 500 Rochester (City of), MN, 5.90%, Health Care Fac Rev Mayo Foundation/Mayo Medical Center Ser I 11/15/2010................. AA 573
The accompanying notes are an integral part of this financial statement. 100 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) HEALTH CARE/SERVICES -- (CONTINUED) $1,000 Waconia (City of), MN, 6.10%, Health Care Fac Rev Ridgeview Med Ctr Ser A Asset Guaranty Insured 01/01/2019............. AA $ 1,107 ------- 5,040 ------- HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 8.3% 1,000 Minnesota State Higher Education Fac Auth, 5.375%, Rev for University of St. Thomas Ser 4-P 04/01/2018...................................... A2* 1,044 1,000 Minnesota State Higher Education Fac Auth, 5.40%, Rev for University of St. Thomas Ser 4-P 04/01/2023...................................... A2* 1,015 1,000 University of MN (Regents of), 5.75%, General Obligation Ser A 07/01/2018...... AA 1,154 ------- 3,213 ------- HOUSING (HFA'S, ETC.) -- 13.7% 1,500 Brainerd (City of), MN, 6.65%, Rev Ref Bond Evangelical Lutheran-Good Samaritan Proj Ser B FSA Insured 03/01/2017..... AAA 1,534 760 Minneapolis (City of), MN, 7.10%, HRA Mortgage Rev Bond Riverplace Proj Ser A LOC Bank of Tokyo 01/01/2020.................. A2* 760 1,000 Minnesota (State Of), Housing Finance Agency, 5.00%, Residential Housing Finance Ser E 01/01/2020...................................... AA+ 1,003 500 Puerto Rico, 5.00%, Public Buildings Auth Rev Gtd Ref Government Fac Ser C 07/01/2007................. A- 545 500 St. Paul (City of), MN, 5.00%, Port Authority Lease Rev Office Bldg, 12/01/2019...................................... AA+ 512
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- HOUSING (HFA'S, ETC.) -- (CONTINUED) $1,000 Washington County, MN, 4.60%, Housing and Redevelopment Auth Governmental Rev Ref-Woodland Park Apartments Project 04/01/2022.............................. AA $ 947 ------- 5,301 ------- MISCELLANEOUS -- 5.4% 1,000 Golden Valley (City of), MN, 5.875%, Rev Bond Breck School Proj 10/01/2019... A2* 1,073 1,000 Minneapolis (City of), MN, 7.375%, CDA Limited Tax Supported Dev Rev Common Bond Fund Ser 1995-G3 12/01/2012................ A- 1,023 ------- 2,096 ------- REFUNDED WITH U.S. GOV'T SECURITIES -- 1.4% 500 Red Wing (City of), MN, 6.50%, Elderly Housing Fac Rev River Region Obligated Group Ser C 09/01/2022 (prerefunded 09/01/2005 @ 100)............................... NR 529 TRANSPORTATION -- 3.0% 1,000 Puerto Rico, 5.50%, Commonwealth Highway & Transportation Auth Rev Ser W FSA Insured 07/01/2013........... AAA 1,151 UTILITIES -- ELECTRIC -- 12.5% 1,000 Northern MN Municipal Power Agency, 5.30%, Elec Sys Rev FSA Insured 01/01/2021...... AAA 1,023 1,295 Northern MN Municipal Power Agency, 6.94%, Zero Coupon Elec Sys Rev Ref Ser A AMBAC Primary Insured 01/01/2011(d)................... AAA 937 750 Puerto Rico, 5.00%, Electric Power Auth Rev Ref Ser JJ MBIA Insured 07/01/2009.............................. AAA 825 960 Rochester (City of), MN, 4.375%, Electric Utility Rev Ser A 12/01/2016... Aaa* 964 1,000 Southern MN, 5.00%, Municipal Power Agency Power Supply Sys Rev Ser A 01/01/2008............................ AAA 1,090 ------- 4,839 -------
The accompanying notes are an integral part of this financial statement. 101 THE HARTFORD TAX-FREE MINNESOTA FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) =x UTILITIES -- WATER AND SEWER -- 3.1% $1,000 Puerto Rico, 6.25%, Commonwealth Aqueduct & Sewer Auth Rev Ref 07/01/2013.................................. A- $ 1,196 ------- Total municipal bonds (cost $35,180).............. $37,262 ======= SHORT-TERM INVESTMENTS -- 4.5% FINANCE -- 4.5% @@ Federated Minnesota Municipal Cash Trust, Current rate -- 1.50%................................... $ @@ 1,752 State Street Bank Tax Free Money Market, Current rate -- 1.40%................................... 1,752 ------- Total short-term investments (cost $1,752)........ $ 1,752 ======= Total investments in securities (cost $36,932)(a)..................................... $39,014 =======
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value......................... $39,014 Receivables: Fund shares sold.......................................... 83 Dividends and interest.................................... 499 Other assets................................................ 3 ------- Total assets................................................ 39,599 ------- LIABILITIES Payables: Investment securities purchased........................... 757 Fund shares redeemed...................................... 95 Payable for investment management and advisory fees (Note 3)...................................................... 24 Payable for distribution fees (Note 3).................... 1 Accrued Expenses.......................................... 6 ------- Total liabilities........................................... 883 ------- Net assets.................................................. $38,716 =======
SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 3,679 shares outstanding............................................... $ 36,406 Accumulated undistributed net investment income............. 34 Accumulated net realized gain on investments................ 194 Unrealized appreciation of investments in securities........ 2,082 -------- Net assets.................................................. $ 38,716 ========
Class A Net asset value per share ($2,073 / 198 shares outstanding).................................. $10.46 ====== Maximum offering price per share ($10.46 / 95.5%).............................. $10.95 ====== Class B Net asset value per share ($238 / 23 shares outstanding).................................. $10.47 ====== Class C Net asset value per share ($304 / 29 shares outstanding).................................. $10.48 ====== Maximum offering price per share ($10.48 / 99.0%).............................. $10.59 ====== Class E Net asset value per share ($31,414 / 2,983 shares outstanding)........................... $10.53 ====== Maximum offering price per share ($10.53 / 95.5%).............................. $11.03 ====== Class H Net asset value per share ($577 / 55 shares outstanding).................................. $10.52 ====== Class L Net asset value per share ($3,344 / 319 shares outstanding).................................. $10.49 ====== Maximum offering price per share ($10.49 / 95.5%).............................. $10.98 ====== Class M Net asset value per share ($562 / 53 shares outstanding).................................. $10.49 ====== Class N Net asset value per share ($203 / 19 shares outstanding).................................. $10.51 ====== Class Y Net asset value per share ($1 / @@ shares outstanding).................................. $10.49 ======
(a) At October 31, 2002, the cost of securities for income tax purposes is $36,932 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation.................................................. $2,160 Unrealized depreciation.................................................. (78) ------ Net unrealized appreciation.............................................. $2,082 ======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. * Moody's Rating.
The accompanying notes are an integral part of this financial statement. 102 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- 92.3% ALABAMA -- 2.7% $1,855 Huntsville, AL, 5.25%, General Obligation Warrants Ser A 05/01/2022 (General Obligations)................ AA $ 1,896 ------- ALASKA -- 0.8% 500 Anchorage (City of), Alaska, 5.50%, General Obligation Ser A MBIA Insured 06/01/2019 (General Obligations)................ AAA 538 ------- ARIZONA -- 5.8% 500 Arizona (State of), 5.25%, School Facilities Board Rev State School Improvement 07/01/2009 (Higher Education (Univ., Dorms, etc.))................................... AAA 561 1,800 Phoenix (City of), AZ, 6.25%, General Obligation Ser A 07/01/2017 (General Obligations)........................... AA+ 2,176 1,225 Tucson (City of), AZ, 5.50%, Water Rev Ref 07/01/2014 (Utilities -- Water and Sewer)................................ A+ 1,376 ------- 4,113 ------- CALIFORNIA -- 5.9% 80 California (State of), 5.50%, Dept Water Res Rev Ser W 12/01/2010 (Escrowed to Maturity) (Utilities -- Water and Sewer).......................................... AA 92 420 California (State of), 5.50%, Dept Water Res Rev Ser W 12/01/2010 (Unrefunded) (Utilities -- Water and Sewer)..... AA 478 500 California (State of), 6.75%, General Obligation 08/01/2011 (General Obligations).................................... A+ 600 500 Moreno Valley (City of), CA Unity School District, 6.00%, Community Facs Dist Spec Tax No. 2002-1 09/01/2022 (Public Facilities).................. NR 500
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- CALIFORNIA -- (CONTINUED) $4,000 Southern California Public Power Auth, 6.36%, Zero Coupon Transmission Proj Rev 07/01/2013 (Utilities -- Electric)(d)........... A+ $ 2,484 ------- 4,154 ------- COLORADO -- 0.8% 500 Platte River Power Auth, CO, 5.25%, Power Rev Ser EE 06/01/2010 (Utilities -- Electric)....................................... AA- 557 ------- FLORIDA -- 5.3% 1,000 Collier County, FL, 5.375%, School Board Participation Cert FSA Insured 02/15/2020 (Public Facilities).......... Aaa* 1,060 1,250 Florida (State of), 5.375%, Dept of Environmental Protection Preservation Rev Ser A MBIA Insured 07/01/2015 (Pollution Control)............................. AAA 1,387 500 Hillsborough County, FL, 5.50%, Industrial Dev Auth Pollution Control Rev Tampa Elec Co Proj 10/01/2023 (Pollution Control)........................................ BBB 497 750 Miami (City of), FL, 5.50%, General Obligation MBIA Insured 01/01/2020 (General Obligations)................ AAA 802 ------- 3,746 ------- GEORGIA -- 7.7% 1,105 Fulton County, GA, 5.375%, School District General Obligation 01/01/2018 (General Obligations)................ AA 1,230 1,765 Fulton County, GA, 6.375%, Water & Sewer Rev FGIC Insured 01/01/2014 (Escrowed to Maturity) (Utilities -- Water and Sewer)................................ AAA 2,131 35 Fulton County, GA, 6.375%, Water & Sewer Rev FGIC Insured 01/01/2014 (Unrefunded) (Utilities -- Water and Sewer).......................................... AAA 42
The accompanying notes are an integral part of this financial statement. 103 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) GEORGIA -- (CONTINUED) $ 750 Georgia (State of), 5.25%, Road and Tollway Auth Rev Governor's Transportation Choices 03/01/2009 (Transportation)................................ AAA $ 837 40 Georgia Municipal Electric, 6.50%, Auth Power Rev Ser Y 01/01/2017 (Escrowed to Maturity) (Utilities -- Electric)............ A 49 960 Georgia Municipal Electric, 6.50%, Auth Power Rev Ser Y 01/01/2017 (Unrefunded) (Utilities -- Electric)............ A 1,173 ------- 5,462 ------- HAWAII -- 2.7% 1,000 Hawaii (State of), 5.25%, General Obligation Ref Ser CY 02/01/2008 (General Obligations)........................... AAA 1,106 500 Hawaii (State of), 5.50%, General Obligation Ref Ser CY 02/01/2011 (General Obligations)........................... AAA 566 250 Honolulu (City of), HI, 5.00%, City and County Board Water Supply Sys Rev FSA Insured 07/01/2009 (Utilities -- Water and Sewer)...................................... AAA 276 ------- 1,948 ------- ILLINOIS -- 3.0% 960 Chicago (City of), IL, 5.25%, Board of Education General Obligation Ser A MBIA Insured 12/01/2019 (General Obligations).................................... AAA 1,011 1,000 Illinois (State of), 5.25%, General Obligation First Series 02/01/2011 (General Obligations)................ AAA 1,109 ------- 2,120 ------- KANSAS -- 1.5% 1,000 Johnson County, KS, 5.25%, School District #229 General Obligation Ser A 10/01/2012 (General Obligations).......... AA 1,098 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- KENTUCKY -- 4.5% $1,000 Carroll County, KY, 7.45%, Collateralized Pollution Control Rev KY Utilities Project Ser A 09/15/2016 (Pollution Control)........................................ A $ 1,020 1,000 Christian County, KY, 6.00%, Hospital Rev Ref Jennie Stuart Medical Center Ser A 07/01/2013 (Health Care/Services).................................. A- 1,048 1,000 Louisville & Jefferson County, KY, 6.75%, Metro Sewer Dist Sewer and Drain Sys Ser A AMBAC Insured 05/15/2019 (Prerefunded 11/15/2004 @ 102) (Refunded with U.S. Gov't Securities)..................................... AAA 1,119 ------- 3,187 ------- LOUISIANA -- 0.7% 500 Louisiana (State of), 5.50%, Public Fac Auth Rev Ochsner Clinic Foundation PJ Ser B 05/15/2027 (General Obligations).................................... A3* 484 ------- MARYLAND -- 1.6% 1,000 Prince Georges County, MD, 6.25%, General Obligation FSA Insured 05/15/2008 (General Obligations)........................... AAA 1,111 ------- MASSACHUSETTS -- 3.0% 1,000 Massachusetts (State of), 5.25%, General Obligation Consolidated Loan Ser B FSA Insured 03/01/2021 (General Obligations)................ AAA 1,035 1,000 Massachusetts (State of), 5.25%, General Obligation Consolidated Loan Ser C 12/01/2007 (General Obligations).............. AA- 1,119 ------- 2,154 ------- MICHIGAN -- 4.3% 300 Detroit (City of), MI, 5.375%, General Obligation Ser B MBIA Insured 04/01/2014 (General Obligations)................ AAA 330 500 Detroit (City of), MI, 5.50%, General Obligation 04/01/2020 (Public Facilities)..................................... AAA 535
The accompanying notes are an integral part of this financial statement. 104 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) MICHIGAN -- (CONTINUED) $1,750 Detroit (City of), MI, 6.50%, Water Supply Sys Ref Rev FGIC Insured 07/01/2015 (Utilities -- Water and Sewer)....... AAA $ 2,159 ------- 3,024 ------- MINNESOTA -- 5.4% 1,140 Fergus Falls (City of), MN, 6.50%, Health Care Fac Rev Lake Region Hospital Corp Proj A 09/01/2018 (Health Care/Services)... BBB+ 1,164 1,000 Hopkins, (City of), MN, 4.00%, Independent School District #270 Ref Ser B 02/01/2007 (General Obligations).............. Aa1* 1,050 670 Minneapolis (City of), MN, 7.00%, Health Care Fac Rev St. Olaf Residence Inc Proj Ser 1993 10/01/2012 (Health Care/Services).................................. NR 658 1,000 Minnesota (State Of), Housing Finance Agency, 5.00%, Residential Housing Finance Ser E 01/01/2020 (Housing (HFA's, etc.)).............. AA+ 1,003 ------- 3,875 ------- NEVADA -- 0.4% 250 Nevada (State of), 5.50%, Pollution Control General Obligation Ser A 08/01/2009 (Pollution Control)................ AA 275 ------- NEW JERSEY -- 1.6% 1,000 New Jersey (State of), Transportation Fund, 5.25%, Ser C 12/15/2009 (Transportation)........ AAA 1,125 ------- NEW YORK -- 2.4% 500 New York (City of), NY, 6.00%, General Obligation Ser A 08/01/2012 (General Obligations)........................... A 561 1,000.. New York (City of), NY, 8.25%, General Obligation Ser B 06/01/2005 (General Obligations)........................... A 1,133 ------- 1,694 -------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- NORTH CAROLINA -- 0.4% $ 250 North Carolina Eastern Municipal Power Agency, 5.875%, Power Sys Rev Ser D 01/01/2014 (Utilities -- Electric)......................... BBB $ 255 ------- OHIO -- 3.8% 1,045 Cincinnati (City of), OH, 5.50%, Water Sys Rev 12/01/2011 (Utilities -- Water and Sewer)................................ AA+ 1,194 1,270 Hamilton (City of), OH, 6.15%, School District Improvement Ser A 12/01/2016 (General Obligations)................ AA- 1,532 ------- 2,726 ------- OREGON -- 3.2% 500 Oregon (State of), 5.00%, Dept Admin Services Certificate Participation Ser B 05/01/2008 (Public Facilities)..................................... AAA 549 500 Oregon (State of), 5.25%, Dept Admin Services Certificate Participation Ser B MBIA Insured 05/01/2013 (Public Facilities)............................. AAA 555 1,000 Oregon (State of), 6.25%, Dept Admin Services Certificate Participation Ser A AMBAC Insured 05/01/2018 (Public Facilities)............................. AAA 1,191 ------- 2,295 ------- PENNSYLVANIA -- 1.7% 250 Pennsylvania (State of), 5.50%, Turnpike Highway Rev Ref Ser C FGIC Insured 06/01/2008 (General Obligations)........ AAA 280 855 Philadelphia (City of), PA, 5.00%, School District General Obligation Ser A 02/01/2010 (General Obligations)................ AAA 936 ------- 1,216 ------- PUERTO RICO -- 1.2% 750 Puerto Rico, 5.00%, Electric Power Auth Rev Ref Ser JJ MBIA Insured 07/01/2009 (Utilities -- Electric)...... AAA 825 -------
The accompanying notes are an integral part of this financial statement. 105 THE HARTFORD TAX-FREE NATIONAL FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) RHODE ISLAND -- 1.4% $1,000 Rhode Island (State of), Clean Water Finance Agency, 5.00%, Water Pollution Control Rev 10/01/2022 (Utilities -- Water and Sewer).................. AAA $ 1,018 ------- SOUTH CAROLINA -- 3.2% 1,000 Piedmont (City of), SC, Muni Power Agency, 6.25%, Elec Rev Ref FGIC Insured 01/01/2021 (Utilities -- Electric)......................... AAA 1,194 1,000.. South Carolina (State of), 5.00%, Public Service Auth Rev Ser B FSA Insured 01/01/2010 (Housing (HFA's, etc.)).............. AAA 1,096 ------- 2,290 ------- TENNESSEE -- 1.6% 1,000 Tennessee (State of), 5.25%, General Obligation Ser A FGIC Insured 02/01/2008 (General Obligations)................ AAA 1,103 ------- TEXAS -- 7.3% 750 Austin (City of), TX, 5.50%, Water & Waste-Water Sys Rev Ser A AMBAC Insured 11/15/2012 (Utilities -- Water and Sewer).......................................... AAA 858 1,000 Clear Creek (City of), TX, 5.00%, Independent School District Ref General Obligation 02/15/2018 (General Obligations)..... AAA 1,036 750 Houston (City of), TX, 5.50%, Water & Sewer Rev Ref Ser A 12/01/2013 (Utilities -- Water and Sewer).................. AAA 838 500 Sam Rayburn (City of), TX, Municipal Power Agency, 5.50%, Ref Rev 10/01/2010 (Utilities -- Electric)......................... BBB- 529 350 San Antonio (City of), TX, 5.25%, Electric & Gas Rev Ref Ser A 02/01/2014 (Prerefunded 02/01/2009 @ 101) (Refunded with U.S. Gov't Securities).......................... AA+.... 391
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- TEXAS -- (CONTINUED) $ 650 San Antonio (City of), TX, 5.25%, Electric & Gas Rev Ser A 02/01/2014 (Unrefunded) (Utilities -- Electric)....................................... AA+.... $ 697 750 Texas (State of) Turnpike Auth, 5.00%, Central Texas Turnpike System Rev Bond Antic Notes -- Second Tier 06/01/2007 (Transportation)................................ AA 821 ------- 5,170 ------- UTAH -- 2.2% 1,000 Utah (State of), 5.00%, Transportation Authority Sales Tax Rev Ser A 06/15/2025 (Transportation)............... AAA 999 500.... Utah (State of), 5.375%, General Obligation Ref Ser B 07/01/2011 (General Obligations)........................... AAA 565 ------- 1,564 ------- VIRGINIA -- 1.5% 1,000 Peninsula Ports Authority of VA, 6.00%, Port Facility CSX Transportation Project Rev 12/15/2012 (Transportation)................. Baa2* 1,095 ------- WASHINGTON -- 1.9% 670 King County, WA, School District #210, 5.00%, General Obligation 06/01/2019 (General Obligations).................................... AA+ 683 ------- 600 Washington (State of), Public Power Supply, 5.00%, Nuclear Proj No. 2 Rev Ser A FSA Insured 07/01/2010 (Utilities -- Electric).............. AAA 652 ------- 1,335 ------- WISCONSIN -- 2.8% 1,305 Sparta (City of), WI, 5.90%, School District Ref General Obligation FGIC Insured 03/01/2016 (General Obligations)... Aaa* 1,510
The accompanying notes are an integral part of this financial statement. 106 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL RATING MARKET AMOUNT (UNAUDITED) VALUE(B) - --------- ----------- -------- MUNICIPAL BONDS -- (CONTINUED) WISCONSIN -- (CONTINUED) $ 500 Wisconsin Housing & Economic Dev Auth, 4.85%, Home Ownership Rev Ser G 09/01/2017 (Housing (HFA's, etc.))......................... AA $ 505 ------- 2,015 ------- Total municipal bonds (cost $61,422)........................... $65,468 ------- SHORT-TERM INVESTMENTS -- 4.8% MINNESOTA -- 4.8% 1 First American Tax-Free Obligations Fund, Current rate -- 1.36% (Finance)......................... $ 1 3,437 State Street Bank Tax Free Money Market, Current rate -- 1.40% (Finance)......................... 3,437 ------- Total short-term investments (cost $3,438)........ $ 3,438 ======= Total investments in securities (cost $64,860)(a)..................................... $68,906 =======
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $68,906 Cash............................................ 1,882 Receivables: Fund shares sold.............................. 430 Dividends and interest........................ 945 Other assets.................................... 44 ------- Total assets.................................... 72,207 ------- LIABILITIES Payables: Investment securities purchased............... 1,063 Fund shares redeemed.......................... 176 Payable for investment management and advisory fees (Note 3)............................... 45 Payable for distribution fees (Note 3)........ 4 Accrued Expenses.............................. 11 ------- Total liabilities............................... 1,299 ------- Net assets...................................... $70,908 ======= SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 6,296 shares outstanding...................... $65,222 Accumulated undistributed net investment income........................................ 37 Accumulated net realized gain on investments.... 1,603 Unrealized appreciation of investments in securities.................................... 4,046 ------- Net assets...................................... $70,908 =======
Class A Net asset value per share ($12,192 / 1,081 shares outstanding)................................... $11.28 ====== Maximum offering price per share ($11.28 / 95.5%)............................... $11.81 ====== Class B Net asset value per share ($3,764 / 336 shares outstanding)................................... $11.21 ====== Class C Net asset value per share ($3,121 / 278 shares outstanding)................................... $11.23 ====== Maximum offering price per share ($11.23 / 99.0%)............................... $11.34 ====== Class E Net asset value per share ($39,423 / 3,497 shares outstanding)................................... $11.27 ====== Maximum offering price per share ($11.27 / 95.5%)............................... $11.80 ====== Class H Net asset value per share ($2,895 / 258 shares outstanding)................................... $11.24 ====== Class L Net asset value per share ($7,360 / 654 shares outstanding)................................... $11.25 ------ Maximum offering price per share ($11.25 / 95.5%)............................... $11.78 ====== Class M Net asset value per share ($1,552 / 138 shares outstanding)................................... $11.24 ====== Class N Net asset value per share ($600 / 54 shares outstanding)................................... $11.22 ====== Class Y Net asset value per share ($1 / @@ shares outstanding)................................... $11.28 ======
(a) At October 31, 2002, the cost of securities for income tax purposes is $64,860 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation....................... $4,108 Unrealized depreciation....................... (62) ------ Net unrealized appreciation................... $4,046 ------
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) The interest rate disclosed for these securities represents the effective yield on the date of acquisition. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. * Moody's Rating.
The accompanying notes are an integral part of this financial statement. 107 THE HARTFORD U.S. GOVERNMENT SECURITIES FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE(B) - --------- -------- U.S. GOVERNMENT SECURITIES -- 96.1% FEDERAL HOME LOAN MORTGAGE CORPORATION -- 14.3% MORTGAGE BACKED SECURITIES: $10,000 5.50% 2032........................................ $ 10,132 7,984 6.00% 2032........................................ 8,226 17,648 6.50% 2028-2032................................... 18,318 1,037 7.00% 2029-2031................................... 1,083 412 9.00% 2022........................................ 456 13 10.50% 2015....................................... 13 62 11.25% 2013....................................... 70 197 11.50% 2015-2019.................................. 225 196 11.75% 2010-2011.................................. 225 56 12.50% 2019....................................... 65 -------- 38,813 -------- NOTE: 14,200 6.25% 2032........................................ 15,376 -------- 54,189 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 33.5% MORTGAGE BACKED SECURITIES: 27,593 5.50% 2015-2032................................... 27,991 2,310 5.85% 2009........................................ 2,522 2,870 5.89% 2008........................................ 3,141 38,004 6.00% 2016-2032................................... 39,217 1,388 6.01% 2009........................................ 1,527 2,774 6.36% 2008........................................ 3,081 5,780 6.50% 2013-2015................................... 6,083 5,781 6.52% 2008........................................ 6,458 1,842 6.63% 2005........................................ 2,001 6,242 7.18% 2006........................................ 7,001 945 7.50% 2030........................................ 999 145 8.00% 2025........................................ 157 155 8.50% 2022........................................ 168 46 9.00% 2020........................................ 50 257 9.75% 2020........................................ 288 290 10.00% 2020....................................... 331 152 10.50% 2012-2018.................................. 175 40 10.75% 2013....................................... 45 764 11.00% 2015-2020.................................. 880 98 11.25% 2013....................................... 110 37 11.50% 2015....................................... 43 84 12.00% 2011-2016.................................. 97 166 12.50% 2015....................................... 195 -------- 102,560 -------- NOTES: 7,300 4.375% 2012....................................... 7,186 @5,400 5.00% 2007........................................ 5,613 10,000 6.125% 2012....................................... 11,221 -------- 24,020 -------- 126,580 -------- GOVERNMENT NATIONAL MORTGAGE -- 9.0% MORTGAGE BACKED SECURITIES: 29,734 6.50% 2031-2032................................... 30,992 651 7.00% 2030........................................ 681 689 8.00% 2017-2022................................... 746 1,254 9.50% 2016-2019................................... 1,412 131 11.00% 2015-2018.................................. 153 -------- 33,984 -------- OTHER DIRECT FEDERAL OBLIGATIONS -- 7.3% FEDERAL HOME LOAN BANK: 22,400 5.75% 2012........................................ 24,563
PRINCIPAL MARKET AMOUNT VALUE(B) - --------- -------- TENNESSEE VALLEY AUTHORITY: $ 2,800 5.375% 2008....................................... $ 3,063 -------- 27,626 -------- U.S. TREASURY SECURITIES -- 32.0% U.S. TREASURY BONDS: 42,000 7.25% 2016........................................ 53,025 8,400 7.50% 2016........................................ 10,829 1,500 10.38% 2012....................................... 2,010 -------- 65,864 -------- U.S. TREASURY NOTES: 14,571 3.00% 2012(d)..................................... 15,320 9,128 4.25% 2010(d)..................................... 10,305 9,200 6.00% 2009........................................ 10,634 15,850 6.50% 2010........................................ 18,838 -------- 55,097 -------- 120,961 -------- Total U.S. government securities (cost $354,520)....................................... $363,340 ======== SHORT-TERM INVESTMENTS -- 2.5% FINANCE -- 2.5% $ 9,326 Joint Repurchase Agreement, 1.86%, 11/01/2002 (Note 2f)....................................... $ 9,326 3 First American Treasury Obligations Fund, Current rate -- 1.44%................................... 3 @@ U.S. Bank N.A. Money Market Variable Rate Time Deposit, Current rate -- 1.61%.................. @@ -------- Total short-term investments (cost $9,329)........ $ 9,329 ======== Total investments in securities (cost $363,849)(a).................................... $372,669 ========
MARKET VALUE(B) -------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............. $372,669 Cash............................................ 1 Collateral for securities lending transactions (Note 2d)..................................... 57,439 Receivables: Investment securities sold.................... 100,128 Fund shares sold.............................. 2,660 Dividends and interest........................ 3,519 Other assets.................................... 82 -------- Total assets.................................... 536,498 -------- LIABILITIES Payables: Payable upon return of securities loaned (Note 2d)......................................... 57,439 Investment securities purchased............... 100,277 Fund shares redeemed.......................... 406 Payable for investment management and advisory fees (Note 3)............................... 222 Payable for distribution fees (Note 3)........ 26 Accrued Expenses.............................. 69 -------- Total liabilities............................... 158,439 -------- Net assets...................................... $378,059 ========
The accompanying notes are an integral part of this financial statement. 108 - -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 100,000 shares authorized; 38,334 shares outstanding..................... $397,894 Accumulated undistributed net investment loss... 42 Accumulated net realized gain on investments.... (28,697) Unrealized appreciation of investments in securities.................................... 8,820 -------- Net assets...................................... $378,059 ========
Class A Net asset value per share ($75,245 / 7,617 shares outstanding)........................... $ 9.88 ====== Maximum offering price per share ($9.88 / 95.5%)............................... $10.35 ====== Class B Net asset value per share ($39,276 / 3,992 shares outstanding)........................... $ 9.84 ====== Class C Net asset value per share ($40,708 / 4,138 shares outstanding)........................... $ 9.84 ====== Maximum offering price per share ($9.84 / 99.0%)............................... $ 9.94 ====== Class E Net asset value per share ($156,085 / 15,820 shares outstanding)........................... $ 9.87 ====== Maximum offering price per share ($9.87 / 95.5%)............................... $10.34 ====== Class H Net asset value per share ($9,319 / 948 shares outstanding).................................. $ 9.83 ====== Class L Net asset value per share ($49,048 / 4,968 shares outstanding)........................... $ 9.87 ====== Maximum offering price per share ($9.87 / 95.5%)............................... $10.34 ====== Class M Net asset value per share ($6,660 / 677 shares outstanding).................................. $ 9.84 ====== Class N Net asset value per share ($1,717 / 174 shares outstanding).................................. $ 9.84 ====== Class Y Net asset value per share ( $1 / @@ shares outstanding).................................. $ 9.89 ======
(a) At October 31, 2002, the cost of securities for income tax purposes is $364,125 and the aggregate gross unrealized appreciation and depreciation based on that cost were:
Unrealized appreciation....................... $9,260 Unrealized depreciation....................... (716) ------ Net unrealized appreciation................... $8,544 ======
(b) See Note 2b of accompanying Notes to Financial Statements regarding valuation of securities. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. @ Security is fully or partially on loan as of October 31, 2002. See Note 2d of accompanying Notes to Financial Statements. @@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement. 109 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL MATURITY RATING MARKET AMOUNT YIELD DATE (UNAUDITED) VALUE(A) - --------- ----- ---------- ----------- -------- SHORT-TERM INVESTMENTS -- 101.9% BASIC MATERIALS -- 2.5% $ 2,000 Dupont (EI) De Nemours......... 1.73 12/04/2002 A1+ $ 1,997 10,000 Dupont (EI) De Nemours......... 1.75 11/13/2002 A1+ 9,994 -------- 11,991 -------- CONSUMER CYCLICAL -- 1.5% 3,000 7-Eleven, Inc..... 1.77 11/18/2002 A1+ 2,998 4,000 7-Eleven, Inc..... 1.77 11/01/2002 A1+ 4,000 -------- 6,998 -------- CONSUMER STAPLES -- 6.8% 5,000 Cargill, Inc.(e)......... 1.72 01/10/2003 A1 4,984 5,000 Cargill, Inc.(e)......... 1.78 01/24/2003 A1 4,979 10,000 Coca-Cola Co...... 1.70 01/28/2003 A1 9,959 5,000 Procter & Gamble Co.(e).......... 1.71 05/05/2003 A1 4,957 7,000 Procter & Gamble Co.(e).......... 1.74 11/26/2002 A1+ 6,992 -------- 31,871 -------- FINANCE AND INSURANCE -- 78.6% 3,000 Abbey National North America... 2.15 11/04/2002 A1 2,999 10,000 American Express Credit Corp..... 1.77 12/02/2002 A1 9,985 3,000 American Honda Finance Corp.(d)(f)..... 1.81 01/13/2003 A1 3,000 7,000 American Honda Finance Corp.,(d)(f).... 1.81 10/21/2003 A1 6,998 8,000 Bank of New York Co., Inc.(d).... 1.85 10/30/2003 A1 8,008 10,000 Bank One Corp.(d)........ 1.98 02/18/2003 A1 10,008 7,000 Bradford & Bingley plc.(e)......... 1.77 03/24/2003 A1 6,952 3,000 Caterpillar Financial Services........ 1.74 12/09/2002 A1 2,995 5,000 Caterpillar Financial Services........ 1.75 11/18/2002 A1 4,996 1,000 Caterpillar Financial Services........ 1.79 11/05/2002 A1 1,000 2,000 Corporate Asset Funding Co., Inc.(e)......... 1.72 12/17/2002 A1 1,995 8,000 Corporate Asset Funding Co., Inc.(e)......... 1.72 11/07/2002 A1+ 7,998 4,000 Diageo Capital plc(e).......... 2.98 03/18/2003 A1 3,956 6,000 Diageo Capital plc(e).......... 1.78 11/08/2002 A1 5,998 5,000 FHLB.............. 1.76 12/26/2002 A1+ 4,987 11,000 FHLMC............. 1.64 11/14/2002 A1+ 10,994 3,000 FHLMC............. 1.75 12/05/2002 A1+ 2,995 12,500 FNMA.............. 1.73 01/08/2003 A1+ 12,460
STANDARD AND POOR'S PRINCIPAL MATURITY RATING MARKET AMOUNT YIELD DATE (UNAUDITED) VALUE(A) - --------- ----- ---------- ----------- -------- FINANCE AND INSURANCE -- (CONTINUED) $ 2,000 General Electric Capital Corp.... 1.75 12/03/2002 A1+ $ 1,996 6,000 General Electric Capital Corp.... 2.81 02/03/2003 A1+ 6,064 4,000 General Electric Capital Corp.... 2.42 01/15/2003 A1+ 4,024 6,000 Goldman Sachs Group, Inc...... 1.75 11/20/2002 A1+ 5,994 1,000 Goldman Sachs Group, Inc.(d)......... 1.92 11/21/2002 A1 1,000 5,000 Goldman Sachs Group, Inc.(d)......... 1.74 02/03/2003 A1 5,000 4,000 International Lease Finance Corp............ 1.78 11/26/2002 A1+ 3,995 3,000 J.P. Morgan Chase & Co.(d)........ 1.89 03/06/2003 A1 3,002 1,000 J.P. Morgan Chase & Co.(d)........ 1.90 01/30/2003 A1 1,000 6,000 J.P. Morgan Chase & Co.(d)........ 1.87 02/20/2003 A1 6,003 26,941 Joint Repurchase Agreement(d) (Note 2f)....... 1.88 11/01/2002 A1 26,942 7,500 Key Bank(d)....... 1.85 02/07/2003 A1 7,503 1,000 KFW International Finance, Inc.... 1.82 11/07/2002 A1+ 1,000 4,000 KFW International Finance, Inc.... 1.82 11/12/2002 A1+ 3,998 5,000 KFW International Finance, Inc.... 1.76 12/27/2002 A1 4,987 510 Lehman Brothers Holdings, Inc............. 1.79 04/01/2003 A1 519 1,000 Lehman Brothers Holdings, Inc............. 1.79 05/15/2003 A1 1,028 4,000 Lehman Brothers Holdings, Inc.(d)......... 1.73 03/28/2003 A1 4,000 2,500 Lehman Brothers Holdings, Inc.(d)......... 2.17 04/04/2003 A1 2,504 9,500 Merrill Lynch & Co., Inc.(d).... 1.95 06/24/2003 A1 9,506 2,000 Morgan Stanley Dean Witter & Co.............. 1.77 01/15/2003 A1 2,022 2,000 Morgan Stanley Dean Witter & Co.............. 1.76 12/20/2002 A1 1,995 8,000 Morgan Stanley Dean Witter & Co.(d).......... 1.97 02/21/2003 A1 8,007 8,000 Nationwide Building Society......... 1.69 02/04/2003 A1 7,965 2,000 Nationwide Building Society(d)(f)... 1.80 02/14/2003 A1 2,000 8,000 Nestle Capital Corp.(e)........ 1.75 12/17/2002 A1 7,982 8,000 Nordea North America, Inc.... 1.76 02/25/2003 A1 7,955 4,000 Nordea North America, Inc.... 2.60 12/11/2002 A1 3,989 1,500 Northern Rock plc............. 1.73 01/28/2003 A1 1,494
The accompanying notes are an integral part of this financial statement. 110 - --------------------------------------------------------------------------------
STANDARD AND POOR'S PRINCIPAL MATURITY RATING MARKET AMOUNT YIELD DATE (UNAUDITED) VALUE(A) - --------- ----- ---------- ----------- -------- SHORT-TERM INVESTMENTS -- (CONTINUED) FINANCE AND INSURANCE -- (CONTINUED) $ 7,500 Northern Rock plc............. 1.73 02/11/2003 A1 $ 7,464 1,000 Old Line Funding Corp.(e)........ 1.82 11/06/2002 A1 1,000 1,000 Old Line Funding Corp.(e)........ 1.82 11/14/2002 A1 999 1,000 Old Line Funding Corp.(e)........ 1.81 12/06/2002 A1 998 6,857 Old Line Funding Corp.(e)........ 1.80 12/13/2002 A1+ 6,843 8,000 Quebec (Province of)............. 1.96 11/01/2002 A1 8,000 10,000 Salomon Smith Barney Holdings, Inc.,(d)........ 1.71 05/09/2003 A1+ 10,000 4,000 Spintab, Inc...... 1.69 02/03/2003 A1 3,983 10,000 State Street Corp............ 1.76 11/25/2002 A1+ 9,988 7,000 Svenska Handelsbanken, Inc............. 1.69 03/31/2003 A1 6,952 3,000 Svenska Handelsbanken, Inc............. 1.66 03/12/2003 A1 2,982 8,000 Swedbank, Inc..... 2.61 12/13/2002 A1 7,976 7,000 Toronto-Dominion Holdings (USA), Inc............. 1.75 12/16/2002 A1 6,985 3,000 Toyota Motor Credit Corp.(e)........ 1.75 12/04/2002 A1+ 2,995 9,000 Toyota Motor Credit Corp.(e)........ 1.76 12/13/2002 A1 8,982 2 U.S. Bank N.A. Money Market Variable Rate Time Deposit(d)...... 1.61 11/01/2002 A1+ 2 4,000 US Bancorp(d)..... 2.02 11/01/2002 A1 4,000 6,000 US Bancorp(d)..... 2.05 02/03/2002 A1 6,004 10,000 Wachovia Bank, Inc. Ser CD3(d).......... 1.77 10/20/2003 A1 10,000 8,000 Wells Fargo & Co.............. 1.76 11/19/2002 A1 7,993 4,000 Wells Fargo & Co.............. 1.77 12/23/2002 A1 3,990 -------- 369,934 -------- HEALTH CARE -- 8.5% 7,000 Abbott Laboratories(e).. 1.76 11/12/2002 A1 6,996 3,000 Abbott Laboratories(e).. 1.75 12/03/2002 A1 2,995 6,500 Johnson & Johnson(e)...... 1.76 01/23/2003 A1 6,474 1,000 Johnson & Johnson(e)...... 1.73 11/25/2002 A1 999
STANDARD AND POOR'S PRINCIPAL MATURITY RATING MARKET AMOUNT YIELD DATE (UNAUDITED) VALUE(A) - --------- ----- ---------- ----------- -------- HEALTH CARE -- (CONTINUED) $ 4,500 Johnson & Johnson(e)...... 1.77 11/12/2002 A1 $ 4,498 1,500 Pfizer, Inc.(e)... 1.73 12/18/2002 A1+ 1,497 5,000 Pfizer, Inc.(e)... 1.76 01/21/2003 A1+ 4,980 5,500 Pfizer, Inc.(e)... 1.73 01/24/2003 A1+ 5,478 6,000 Wyeth(e).......... 1.97 11/19/2002 A 5,994 -------- 39,911 -------- SERVICES -- 2.5% 3,000 Washington Post Co.(e).......... 1.77 12/04/2002 A1 2,995 6,000 Washington Post Co.(e).......... 1.73 11/04/2002 A1 5,999 3,000 Washington Post Co.(e).......... 1.76 12/03/2002 A1 2,995 -------- 11,989 -------- TECHNOLOGY -- 1.5% 1,000 Emerson Electric Co.(e).......... 1.76 12/23/2002 A1 998 6,000 SBC Communications, Inc.(d)(f)...... 1.80 03/14/2003 A1+ 6,000 -------- 6,998 -------- Total investments in securities (cost $479,692)(b)................................... $479,692 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investments in securities, at value............ $479,692 Receivables: Fund shares sold............................. 1,683 Dividends and interest....................... 538 Other assets................................... 161 -------- Total assets................................... 482,074 -------- LIABILITIES Payables: Investment securities purchased.............. 7,505 Fund shares redeemed......................... 3,551 Dividend Payable............................. 8 Payable for investment management and advisory fees (Note 3)..................... 203 Payable for distribution fees (Note 3)....... 54 Accrued Expenses............................. 134 -------- Total liabilities.............................. 11,455 -------- Net assets..................................... $470,619 ========
The accompanying notes are an integral part of this financial statement. 111 THE HARTFORD MONEY MARKET FUND SCHEDULE OF INVESTMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- SUMMARY OF NET ASSETS: Capital stock and paid-in capital, par value $0.001 per share; 2,700,000 shares authorized; 470,619 shares outstanding.................... $470,619 -------- Net assets...................................... $470,619 ========
Class A Net asset value per share ($302,862 / 302,862 shares outstanding)........................... $1.00 ===== Class B Net asset value per share ($99,048 / 99,048 shares outstanding)........................... $1.00 ===== Class C Net asset value per share ($65,894 / 65,894 shares outstanding)........................... $1.00 ===== Class Y Net asset value per share ($2,815 / 2,815 shares outstanding).................................. $1.00 =====
(a) See Note 2b of accompanying Notes of Financial Statements regarding valuation of securities. (b) Also represents cost for federal income tax purposes. (c) Note: Percentage of investments as shown is the ratio of the total market value to total net assets. (d) Variable Rate Securities; the yield reported is the rate in effect as of October 31, 2002. (e) Commercial paper sold within the terms of a private placement memorandum, exempt from registrations under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are deemed to be liquid. The aggregate value of these securities at October 31, 2002, was $131,508, which represents 27.94% of total net assets. (f) Securities sold within the terms of a private placement memorandum, exempt from registrations under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or to other "accredited investors". Pursuant to guidelines adopted by the Board of Directors, these issues are deemed to be liquid. The aggregate value of these securities at October 31, 2002, was $17,998, which represents 3.82% of total net assets.
The accompanying notes are an integral part of this financial statement. 112 (This page intentionally left blank) 113 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD GLOBAL GLOBAL FINANCIAL COMMUNICATIONS SERVICES FUND FUND -------------- ---------------- INVESTMENT INCOME: Dividends................................................. $ 84 $ 378 Interest.................................................. 5 7 Securities lending........................................ 4 10 Less: Foreign tax withheld................................ (4) (18) ------- ------- Total investment income (loss), net..................... 89 377 ------- ------- EXPENSES: Investment management and advisory fees................... 57 175 Transfer agent fees....................................... 26 70 Distribution fees Class A................................................. 13 38 Class B................................................. 8 28 Class C................................................. 8 27 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 6 20 Accounting services....................................... 1 3 Registration and filing fees.............................. 2 3 Board of Director's fees.................................. -- -- Other expenses............................................ 2 7 ------- ------- Total expenses, (before reimbursements and waivers)..... 123 371 ------- ------- Expense reimbursements.................................... (17) (44) Class A distribution fees waived.......................... (2) (5) ------- ------- Total reimbursements and waivers........................ (19) (49) ------- ------- Total expenses, net..................................... 104 322 ------- ------- Net investment income (loss).............................. (15) 55 ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... (3,539) (1,563) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on redemptions-in-kind........... -- -- Net realized gain (loss) on foreign currency transactions............................................ 3 6 ------- ------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... (3,536) (1,557) ------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. 1,451 (1,487) Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- ------- ------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. 1,451 (1,487) ------- ------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. (2,085) (3,044) ------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $(2,100) $(2,989) ======= =======
The accompanying notes are an integral part of these financial statements. 114 - --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD INTERNATIONAL THE HARTFORD THE HARTFORD CAPITAL CAPITAL GLOBAL HEALTH GLOBAL TECHNOLOGY SMALL COMPANY SMALLCAP GROWTH SMALL COMPANY APPRECIATION APPRECIATION FUND FUND FUND FUND FUND FUND FUND ------------- ----------------- ------------- --------------- ------------- -------------- ------------ $ 1,959 $ 64 $ 119 $ 584 $ 826 $ 110 $ 36,888 101 26 6 70 262 9 3,226 90 17 3 4 81 2 967 (83) -- (13) -- (29) (9) (184) -------- -------- ----- -------- -------- ------- --------- 2,067 107 115 658 1,140 112 40,897 -------- -------- ----- -------- -------- ------- --------- 2,174 524 55 1,526 2,071 56 24,971 691 175 40 10 750 22 11,347 408 88 12 5 428 14 6,514 494 109 6 6 524 7 9,864 496 147 7 6 521 6 8,108 -- -- -- 225 -- -- -- -- -- -- 523 -- -- -- -- -- -- 181 -- -- -- -- -- -- 63 -- -- -- 27 8 43 19 36 60 429 43 10 1 1 49 1 738 56 29 1 86 41 6 714 2 -- -- 10 2 -- 32 105 26 3 95 126 2 1,965 -------- -------- ----- -------- -------- ------- --------- 4,496 1,116 168 2,756 4,548 174 64,682 -------- -------- ----- -------- -------- ------- --------- (166) (66) (70) (63) (309) (71) (933) (60) (12) (2) (1) (61) (2) -- -------- -------- ----- -------- -------- ------- --------- (226) (78) (72) (64) (370) (73) (933) -------- -------- ----- -------- -------- ------- --------- 4,270 1,038 96 2,692 4,178 101 63,749 -------- -------- ----- -------- -------- ------- --------- (2,203) (931) 19 (2,034) (3,038) 11 (22,852) -------- -------- ----- -------- -------- ------- --------- 5,142 (26,339) (482) (6,795) (30,807) (1,119) (594,233) -- -- -- 8 -- -- -- -- (925) -- -- 2,151 -- -- 36 -- (1) -- 7 (4) (16,817) -------- -------- ----- -------- -------- ------- --------- 5,178 (27,264) (483) (6,787) (28,649) (1,123) (611,050) -------- -------- ----- -------- -------- ------- --------- (39,989) 14,476 (323) (17,373) (9,098) 334 (62,719) -- -- -- -- -- -- -- -- -- -- -- (1) 1 (858) -------- -------- ----- -------- -------- ------- --------- (39,989) 14,476 (323) (17,373) (9,099) 335 (63,577) -------- -------- ----- -------- -------- ------- --------- (34,811) (12,788) (806) (24,160) (37,748) (788) (674,627) -------- -------- ----- -------- -------- ------- --------- $(37,014) $(13,719) $(787) $(26,194) $(40,786) $ (777) $(697,479) ======== ======== ===== ======== ======== ======= ========= THE HARTFORD GROWTH OPPORTUNITIES FUND ------------- $ 2,646 283 60 (14) --------- 2,975 --------- 5,246 8 5 4 4 517 1,380 262 57 33 -- 188 44 327 --------- 8,075 --------- (2) (1) --------- (3) --------- 8,072 --------- (5,097) --------- (131,326) -- -- -- --------- (131,326) --------- 17,612 -- -- --------- 17,612 --------- (113,714) --------- $(118,811) =========
115 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD MIDCAP MIDCAP VALUE FUND FUND ------------ ------------ INVESTMENT INCOME: Dividends................................................. $ 9,199 $ 1,415 Interest.................................................. 837 85 Securities lending........................................ 347 17 Less: Foreign tax withheld................................ (38) (17) -------- -------- Total investment income (loss), net..................... 10,345 1,500 -------- -------- EXPENSES: Investment management and advisory fees................... 10,054 1,061 Transfer agent fees....................................... 4,021 416 Distribution fees Class A................................................. 2,383 274 Class B................................................. 2,850 209 Class C................................................. 2,989 259 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 24 70 Accounting services....................................... 259 25 Registration and filing fees.............................. 261 11 Board of Director's fees.................................. 11 1 Other expenses............................................ 702 72 -------- -------- Total expenses, (before reimbursements and waivers)..... 23,554 2,398 -------- -------- Expense reimbursements.................................... (686) (39) Class A distribution fees waived.......................... (340) (234) -------- -------- Total reimbursements and waivers........................ (1,026) (273) -------- -------- Total expenses, net..................................... 22,528 2,125 -------- -------- Net investment income (loss).............................. (12,183) (625) -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... (37,567) (1,811) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on redemptions-in-kind........... 3,125 -- Net realized gain (loss) on foreign currency transactions............................................ -- 3 -------- -------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... (34,442) (1,808) -------- -------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. (43,737) (22,577) Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- -------- -------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. (43,737) (22,577) -------- -------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. (78,179) (24,385) -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $(90,362) $(25,010) ======== ========
The accompanying notes are an integral part of these financial statements. 116 - --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD THE HARTFORD VALUE INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD GROWTH AND OPPORTUNITIES OPPORTUNITIES GLOBAL LEADERS FOCUS GROWTH STOCK VALUE INCOME FUND FUND FUND FUND FUND FUND FUND FUND -------------- ------------- -------------- ------------ ------------ ------------ ------------ ------------ $ 610 $ 2,263 $ 8,712 $ 1,335 $ 3,484 $ 26,246 $ 890 $ 4,930 14 163 438 152 126 1,087 16 116 4 67 263 -- 20 69 -- 15 (9) (125) (258) -- (18) -- (1) -- ------- -------- -------- -------- -------- --------- -------- -------- 619 2,368 9,155 1,487 3,612 27,402 905 5,061 ------- -------- -------- -------- -------- --------- -------- -------- 466 1,092 4,205 1,324 3,380 13,670 340 2,979 5 398 1,566 403 11 5,920 147 1,140 3 285 1,108 278 8 3,694 100 922 2 216 779 223 5 4,507 48 502 2 175 980 302 4 4,098 89 580 74 -- -- -- 341 -- -- -- 67 -- -- -- 872 -- -- -- 86 -- -- -- 266 -- -- -- 24 -- -- -- 61 -- -- -- 7 172 135 7 14 27 21 15 -- 26 99 26 1 390 9 75 47 79 133 32 98 382 1 100 3 2 7 1 26 16 -- 6 25 84 256 60 204 1,025 22 203 ------- -------- -------- -------- -------- --------- -------- -------- 811 2,529 9,268 2,656 5,291 33,729 777 6,522 ------- -------- -------- -------- -------- --------- -------- -------- (11) (136) -- (66) (4) -- (52) (262) -- (40) (158) (40) (1) (518) (14) (132) ------- -------- -------- -------- -------- --------- -------- -------- (11) (176) (158) (106) (5) (518) (66) (394) ------- -------- -------- -------- -------- --------- -------- -------- 800 2,353 9,110 2,550 5,286 33,211 711 6,128 ------- -------- -------- -------- -------- --------- -------- -------- (181) 15 45 (1,063) (1,674) (5,809) 194 (1,067) ------- -------- -------- -------- -------- --------- -------- -------- (7,258) (17,721) (84,298) (15,707) (82,179) (250,183) (4,159) (66,486) -- -- -- -- -- -- -- (1,358) -- (547) -- -- -- -- -- -- 1 (108) (279) -- -- -- -- -- ------- -------- -------- -------- -------- --------- -------- -------- (7,257) (18,376) (84,577) (15,707) (82,179) (250,183) (4,159) (67,844) ------- -------- -------- -------- -------- --------- -------- -------- (1,174) 8,132 19,095 (12,682) 13,761 (152,541) (6,448) (11,555) -- -- -- -- -- -- -- (293) -- 69 (40) -- -- -- -- -- ------- -------- -------- -------- -------- --------- -------- -------- (1,174) 8,201 19,055 (12,682) 13,761 (152,541) (6,448) (11,848) ------- -------- -------- -------- -------- --------- -------- -------- (8,431) (10,175) (65,522) (28,389) (68,418) (402,724) (10,607) (79,692) ------- -------- -------- -------- -------- --------- -------- -------- $(8,612) $(10,160) $(65,477) $(29,452) $(70,092) $(408,533) $(10,413) $(80,759) ======= ======== ======== ======== ======== ========= ======== ========
117 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
THE HARTFORD DIVIDEND THE HARTFORD AND GROWTH ADVISERS FUND FUND ------------ ------------ INVESTMENT INCOME: Dividends................................................. $ 22,410 $ 21,289 Interest.................................................. 1,166 48,999 Securities lending........................................ 64 399 Less: Foreign tax withheld................................ (33) -- --------- --------- Total investment income (loss), net..................... 23,607 70,687 --------- --------- EXPENSES: Investment management and advisory fees................... 7,498 15,514 Transfer agent fees....................................... 3,380 7,413 Distribution fees Class A................................................. 2,560 4,440 Class B................................................. 1,847 6,503 Class C................................................. 1,562 4,878 Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Custodian fees............................................ 23 33 Accounting services....................................... 217 484 Registration and filing fees.............................. 176 449 Board of Director's fees.................................. 9 41 Other expenses............................................ 584 1,376 --------- --------- Total expenses, (before reimbursements and waivers)..... 17,856 41,131 --------- --------- Expense reimbursements.................................... (118) -- Class A distribution fees waived.......................... (367) (634) --------- --------- Total reimbursements and waivers........................ (485) (634) --------- --------- Total expenses, net..................................... 17,371 40,497 --------- --------- Net investment income (loss).............................. 6,236 30,190 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on investments................... (10,830) (185,895) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on redemptions-in-kind........... -- -- Net realized gain (loss) on foreign currency transactions............................................ -- -- --------- --------- NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS......................... (10,830) (185,895) --------- --------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS: Net unrealized appreciation (depreciation) of investments............................................. (155,094) (138,097) Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- --------- --------- NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS.............................................. (155,094) (138,097) --------- --------- NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS............................. (165,924) (323,992) --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $(159,688) $(293,802) ========= =========
The accompanying notes are an integral part of these financial statements. 118 - --------------------------------------------------------------------------------
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD TOTAL RETURN TAX-FREE TAX-FREE U.S. GOVERNMENT THE HARTFORD HIGH YIELD BOND MINNESOTA NATIONAL SECURITIES MONEY MARKET FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------ --------------- ------------ $ 67 $ 24 $ -- $ -- $ -- $ -- 17,659 20,047 1,705 2,730 13,762 7,179 58 108 -- -- 44 -- -- (7) -- -- -- -- -------- ------- ------ ------ ------- ------ 17,784 20,172 1,705 2,730 13,806 7,179 -------- ------- ------ ------ ------- ------ 1,226 2,216 267 463 1,909 1,753 521 1,049 2 19 133 1,093 299 548 1 11 60 789 392 715 1 10 90 608 381 796 1 9 96 569 -- -- 9 37 100 -- -- -- 9 19 126 -- -- -- 6 18 66 -- -- -- 2 6 19 -- 16 16 3 3 8 6 33 68 -- 1 7 70 57 41 6 57 82 141 1 3 2 4 17 4 82 123 12 27 150 148 -------- ------- ------ ------ ------- ------ 3,008 5,575 321 684 2,863 5,181 -------- ------- ------ ------ ------- ------ (141) (299) (2) (31) (113) (832) (43) (77) -- (2) (9) (112) -------- ------- ------ ------ ------- ------ (184) (376) (2) (33) (122) (944) -------- ------- ------ ------ ------- ------ 2,824 5,199 319 651 2,741 4,237 -------- ------- ------ ------ ------- ------ 14,960 14,973 1,386 2,079 11,065 2,942 -------- ------- ------ ------ ------- ------ (12,075) 4,549 687 1,606 12,535 -- -- -- -- -- -- -- -- -- -- -- -- -- 138 1,254 -- -- -- -- -------- ------- ------ ------ ------- ------ (11,937) 5,803 687 1,606 12,535 -- -------- ------- ------ ------ ------- ------ (28,281) (5,037) (490) (987) (6,917) -- -- -- -- -- -- -- 929 871 -- -- -- -- -------- ------- ------ ------ ------- ------ (27,352) (4,166) (490) (987) (6,917) -- -------- ------- ------ ------ ------- ------ (39,289) 1,637 197 619 5,618 -- -------- ------- ------ ------ ------- ------ $(24,329) $16,610 $1,583 $2,698 $16,683 $2,942 ======== ======= ====== ====== ======= ======
119 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS (000'S OMITTED) - --------------------------------------------------------------------------------
GLOBAL COMMUNICATIONS FUND --------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ------------------ OPERATIONS: Net investment income (loss).............................. $ (15) $ (41) Net realized gain (loss) on investments................... (3,536) (3,713) Net unrealized appreciation (depreciation) of investments............................................. 1,451 (2,237) ------- ------- Net increase (decrease) in net assets resulting from operations.............................................. (2,100) (5,991) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- ------- ------- Total distributions..................................... -- -- ------- ------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 786 1,176 Class B................................................. 312 500 Class C................................................. 190 530 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 164 -- Class Z................................................. -- -- Issuance of shares in connection with fund mergers (Note 11) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ------- ------- Net increase (decrease) from capital share transactions... 1,452 2,206 ------- ------- Net increase (decrease) in net assets..................... (648) (3,785) NET ASSETS: Beginning of year......................................... 6,217 10,002 ------- ------- End of year............................................... $ 5,569 $ 6,217 ======= ======= Accumulated undistributed (distribution in excess of) net investment income....................................... $ -- $ -- ======= =======
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 120 - --------------------------------------------------------------------------------
GLOBAL FINANCIAL SERVICES FUND GLOBAL HEALTH FUND GLOBAL TECHNOLOGY FUND ---------------------------------------- --------------------------------------- --------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2001 OCTOBER 31, 2001 ------------------- ------------------ ------------------ ------------------ ------------------ ------------------ $ 55 $ 16 $ (2,203) $ (1,399) $ (931) $ (1,085) (1,557) (530) 5,178 5,084 (27,264) (45,499) (1,487) (610) (39,989) (3,193) 14,476 (9,063) ------- ------- -------- -------- -------- -------- (2,989) (1,124) (37,014) 492 (13,719) (55,647) ------- ------- -------- -------- -------- -------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,088) (1,912) -- (331) -- -- (898) (884) -- (154) -- -- (945) (1,140) -- (213) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (92) (111) -- (49) -- -- -- -- -- -- ------- ------- -------- -------- -------- -------- -- -- (4,023) (4,047) -- (747) ------- ------- -------- -------- -------- -------- 1,494 3,676 24,768 55,526 948 16,674 1,225 1,211 12,754 22,809 398 6,402 1,001 1,227 8,274 18,649 (1,969) 9,846 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 754 -- (3,491) 1,938 (5,064) 4,232 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- -------- -------- -------- -------- 4,474 6,114 42,305 98,922 (5,687) 37,154 ------- ------- -------- -------- -------- -------- 1,485 4,990 1,268 95,367 (19,406) (19,240) 14,992 10,002* 190,195 94,828 55,969 75,209 ------- ------- -------- -------- -------- -------- $16,477 $14,992 $191,463 $190,195 $ 36,563 $ 55,969 ======= ======= ======== ======== ======== ======== $ 58 $ (2) $ -- $ -- $ -- $ -- ======= ======= ======== ======== ======== ========
121 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
INTERNATIONAL SMALL COMPANY FUND --------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001** ------------------ ------------------ OPERATIONS: Net investment income (loss).............................. $ 19 $ 12 Net realized gain (loss) on investments................... (483) (135) Net unrealized appreciation (depreciation) of investments............................................. (323) (272) ------ ------ Net increase (decrease) in net assets resulting from operations.............................................. (787) (395) ------ ------ DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- ------ ------ Total distributions..................................... -- -- ------ ------ CAPITAL SHARE TRANSACTIONS: Class A................................................. 2,951 2,435 Class B................................................. 774 312 Class C................................................. 527 469 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. 766 300 Class Z................................................. -- -- Issuance of shares in connection with fund mergers (Note 11) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ------ ------ Net increase (decrease) from capital share transactions... 5,018 3,516 ------ ------ Net increase (decrease) in net assets..................... 4,231 3,121 NET ASSETS: Beginning of year......................................... 3,121 -- ------ ------ End of year............................................... $7,352 $3,121 ====== ====== Accumulated undistributed (distribution in excess of) net investment income....................................... $ 18 $ -- ====== ======
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 122 - --------------------------------------------------------------------------------
SMALLCAP GROWTH FUND SMALL COMPANY FUND ----------------------------------------------------------- --------------------------------------- FOR THE TWO-MONTH FOR THE YEAR ENDED PERIOD ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 AUGUST 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ----------------- ------------------ ------------------ ------------------ $ (2,034) $ (331) $ (1,877) $ (3,038) $ (2,573) (6,787) (6,159) (63,536) (28,649) (102,280) (17,373) (13,466) (144,795) (9,099) (11,341) -------- --------- -------- -------- --------- (26,194) (19,956) (210,208) (40,786) (116,194) -------- --------- -------- -------- --------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (5,414) -- -- -- -- (2,437) -- -- -- -- (2,627) -- -- -- -- -- (418) -- (11,624) -- -- (2,073) -- (67,343) -- -- (335) -- (9,155) -- -- (118) -- (3,305) -- -- -- -- -- -- (1,479) -- -- -- -- -- -------- --------- -------- -------- --------- (2,944) -- (91,427) -- (11,957) -------- --------- -------- -------- --------- 4,351 -- -- 1,791 10,746 2,107 -- -- 1,843 4,279 1,754 -- -- (2,682) 1,361 -- -- -- -- -- (2,423) (286) 13,619 -- -- (15,851) (2,390) 46,586 -- -- (1,079) (255) 12,094 -- -- (626) (29) 3,932 -- -- 1 -- -- (23,496) 3,463 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- --------- -------- -------- --------- (11,766) (2,960) 76,231 (22,544) 19,849 -------- --------- -------- -------- --------- (40,904) (22,916) (225,404) (63,330) (108,302) 169,110 192,026 417,430 250,843 359,145 -------- --------- -------- -------- --------- $128,206 $ 169,110 $192,026 $187,513 $ 250,843 ======== ========= ======== ======== ========= $ -- $ -- $ -- $ -- $ (2) ======== ========= ======== ======== ========= INTERNATIONAL CAPITAL APPRECIATION FUND ----------------------------------------- FOR THE YEAR ENDED FOR THE PERIOD ENDED OCTOBER 31, 2002 OCTOBER 31, 2001** ------------------ -------------------- $ 11 $ (2) (1,123) (835) 335 (14) ------- ------ (777) (851) ------- ------ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------ -- -- ------- ------ 2,614 3,201 621 408 605 393 -- -- -- -- -- -- -- -- -- -- 300 -- -- -- -- -- -- -- -- ------- ------ 3,840 4,302 ------- ------ 3,063 3,451 3,451 -- ------- ------ $ 6,514 $3,451 ======= ====== $ 6 $ (1) ======= ======
123 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND --------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ------------------ OPERATIONS: Net investment income (loss).............................. $ (22,852) $ (16,885) Net realized gain (loss) on investments................... (611,050) (91,222) Net unrealized appreciation (depreciation) of investments............................................. (63,577) (521,732) ---------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. (697,479) (629,839) ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- -- Class Z................................................. -- -- From net realized gain on investments Class A................................................. -- (159,028) Class B................................................. -- (103,762) Class C................................................. -- (62,308) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. -- (10,666) Class Z................................................. -- -- ---------- ---------- Total distributions..................................... -- (335,764) ---------- ---------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 464,355 737,821 Class B................................................. 196,362 334,093 Class C................................................. 235,783 364,644 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (54,635) 14,144 Class Z................................................. -- -- Issuance of shares in connection with fund mergers (Note 11) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ---------- ---------- Net increase (decrease) from capital share transactions... 841,865 1,450,702 ---------- ---------- Net increase (decrease) in net assets..................... 144,386 485,099 NET ASSETS: Beginning of year......................................... 3,205,298 2,720,199 ---------- ---------- End of year............................................... $3,349,684 $3,205,298 ========== ========== Accumulated undistributed (distribution in excess of) net investment income....................................... $ 897 $ 3,200 ========== ==========
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 124 - --------------------------------------------------------------------------------
GROWTH OPPORTUNITIES FUND MIDCAP FUND MIDCAP VALUE FUND ------------------------------------------------------------ --------------------------------------- ------------------ FOR THE TWO-MONTH FOR THE YEAR ENDED PERIOD ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 AUGUST 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 ------------------- ----------------- ------------------ ------------------ ------------------ ------------------ $ (5,097) $ (760) $ (5,123) $ (12,183) $ (9,651) $ (625) (131,326) (87,500) 7,447 (34,442) (100,709) (1,808) 17,612 (11,357) (599,632) (43,737) (138,269) (22,577) --------- --------- ---------- ---------- ---------- -------- (118,811) (99,617) (597,308) (90,362) (248,629) (25,010) --------- --------- ---------- ---------- ---------- -------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (37,482) -- -- -- -- -- (16,839) -- -- -- -- -- (19,558) -- -- -- -- -- -- -- (654) -- (19,978) -- -- -- (6,438) -- (224,717) -- -- -- (326) -- (9,277) -- -- -- (73) -- (2,251) -- -- -- -- -- -- -- (5,416) -- (1,001) -- (42,782) -- -- -- --------- --------- ---------- ---------- ---------- -------- (8,492) -- (299,005) -- (79,295) -- --------- --------- ---------- ---------- ---------- -------- 4,143 -- -- 141,807 345,350 83,020 972 -- -- 22,055 151,367 23,725 1,016 -- -- 10,259 148,017 28,679 -- -- -- -- -- -- (4,533) (274) 23,048 -- -- -- (72,239) (12,486) 156,627 -- -- -- (1,207) 159 14,561 -- -- -- (840) 55 3,205 -- -- -- 1 -- -- (27,164) 8,283 -- (68,131) (2,987) 4,135 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --------- --------- ---------- ---------- ---------- -------- (140,818) (15,533) 201,576 146,957 653,017 135,424 --------- --------- ---------- ---------- ---------- -------- (268,121) (115,150) (694,737) 56,595 325,093 110,414 775,911 891,061 1,585,798 1,216,917 891,824 43,200 --------- --------- ---------- ---------- ---------- -------- $ 507,790 $ 775,911 $ 891,061 $1,273,512 $1,216,917 $153,614 ========= ========= ========== ========== ========== ======== $ (6) $ -- $ -- $ -- $ -- $ -- ========= ========= ========== ========== ========== ======== MIDCAP VALUE FUND -------------------- FOR THE PERIOD ENDED OCTOBER 31, 2001** -------------------- $ (51) (666) (3,720) ------- (4,437) ------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- -- ------- 29,599 7,883 9,855 -- -- -- -- -- 300 -- -- -- -- ------- 47,637 ------- 43,200 -- ------- $43,200 ======= $ -- =======
125 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
VALUE OPPORTUNITIES FUND ----------------------------------------------------------------- FOR THE TWO-MONTH FOR THE YEAR ENDED PERIOD ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 AUGUST 31, 2001 ------------------ ----------------- ------------------ OPERATIONS: Net investment income (loss)........................ $ (181) $ (36) $ (133) Net realized gain (loss) on investments............. (7,257) (2,169) 4,620 Net unrealized appreciation (depreciation) of investments....................................... (1,174) (3,000) (3,463) ------- ------- ------- Net increase (decrease) in net assets resulting from operations........................................ (8,612) (5,205) 1,024 ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- Class E........................................... -- -- -- Class H........................................... -- -- -- Class L........................................... -- -- (44) Class M........................................... -- -- -- Class N........................................... -- -- -- Class Y........................................... -- -- -- Class Z........................................... -- -- -- From net realized gain on investments Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- Class E........................................... -- -- -- Class H........................................... (556) -- (827) Class L........................................... (1,884) -- (3,614) Class M........................................... (583) -- (720) Class N........................................... (184) -- (257) Class Y........................................... -- -- -- Class Z........................................... -- -- -- ------- ------- ------- Total distributions............................... (3,207) -- (5,462) ------- ------- ------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 3,054 -- -- Class B........................................... 557 -- -- Class C........................................... 496 -- -- Class E........................................... -- -- -- Class H........................................... (425) (156) 860 Class L........................................... (1,773) 535 (6,738) Class M........................................... 226 9 2,798 Class N........................................... (301) (1) 503 Class Y........................................... 1 -- -- Class Z........................................... -- -- -- Issuance of shares in connection with fund mergers (Note 11) Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- ------- ------- ------- Net increase (decrease) from capital share transactions...................................... 1,835 387 (2,577) ------- ------- ------- Net increase (decrease) in net assets............... (9,984) (4,818) (7,015) NET ASSETS: Beginning of year................................... 47,232 52,050 59,065 ------- ------- ------- End of year......................................... $37,248 $47,232 $52,050 ======= ======= ======= Accumulated undistributed (distribution in excess of) net investment income......................... $ -- $ -- $ -- ======= ======= =======
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. **** Included in these amounts were a return of capital in the amounts of $188, 51, 86 and 6 for Classes A, B, C and Y, respectively. The accompanying notes are an integral part of these financial statements. 126 - --------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND GLOBAL LEADERS FUND FOCUS FUND ---------------------------------------- --------------------------------------- ----------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE PERIOD ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001*** ------------------- ------------------ ------------------ ------------------ ------------------ -------------------- $ 15 $ 465 $ 45 $ (1,007) $ (1,063) $ (225) (18,376) (31,663) (84,577) (142,160) (15,707) (1,721) 8,201 (8,748) 19,055 (700) (12,682) (12,678) -------- -------- -------- --------- -------- -------- (10,160) (39,946) (65,477) (143,867) (29,452) (14,624) -------- -------- -------- --------- -------- -------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (4,152) -- (2,859)**** -- -- -- (1,246) -- (862)**** -- -- -- (1,290) -- (1,599)**** -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,035) -- (110)**** -- -- -- -- -- -- -- -- -------- -------- -------- --------- -------- -------- -- (7,723) -- (5,430) -- -- -------- -------- -------- --------- -------- -------- (12,728) 8,561 65,748 73,397 16,800 75,876 (2,578) 742 (5,497) 10,590 5,397 20,990 (4,144) (620) (19,349) 1,942 8,635 27,393 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (12,860) 1,178 (1,951) 706 625 10 -- -- -- -- -- -- 12,538 -- 81,253 -- -- -- 5,906 -- 26,325 -- -- -- 711 -- 3,427 -- -- -- -------- -------- -------- --------- -------- -------- (13,155) 9,861 149,956 86,635 31,457 124,269 -------- -------- -------- --------- -------- -------- (23,315) (37,808) 84,479 (62,662) 2,005 109,645 126,739 164,547 421,549 484,211 109,645 -- -------- -------- -------- --------- -------- -------- $103,424 $126,739 $506,028 $ 421,549 $111,650 $109,645 ======== ======== ======== ========= ======== ======== -- $ $ 1 $ -- $ (51) $ -- $ -- ======== ======== ======== ========= ======== ========
127 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
GROWTH FUND ----------------------------------------------------------------- FOR THE TWO-MONTH FOR THE YEAR ENDED PERIOD ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 AUGUST 31, 2001 ------------------ ----------------- ------------------ OPERATIONS: Net investment income (loss)........................ $ (1,674) $ (354) $ (1,650) Net realized gain (loss) on investments............. (82,179) (3,483) (6,864) Net unrealized appreciation (depreciation) of investments....................................... 13,761 (24,910) (166,174) --------- -------- --------- Net increase (decrease) in net assets resulting from operations........................................ (70,092) (28,747) (174,688) --------- -------- --------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- Class E........................................... -- -- -- Class H........................................... -- -- -- Class L........................................... -- -- -- Class M........................................... -- -- -- Class N........................................... -- -- -- Class Y........................................... -- -- -- Class Z........................................... -- -- -- From net realized gain on investments Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- Class E........................................... -- -- -- Class H........................................... (13) -- (8,431) Class L........................................... (122) -- (84,540) Class M........................................... (10) -- (5,782) Class N........................................... (2) -- (1,605) Class Y........................................... -- -- -- Class Z........................................... -- -- -- --------- -------- --------- Total distributions............................... (147) -- (100,358) --------- -------- --------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 6,608 -- -- Class B........................................... 1,826 -- -- Class C........................................... 1,609 -- -- Class E........................................... -- -- -- Class H........................................... (5,746) (497) 6,719 Class L........................................... (53,347) (6,845) 32,938 Class M........................................... (1,925) 98 7,416 Class N........................................... (1,527) (140) 1,056 Class Y........................................... 1 -- -- Class Z........................................... -- -- -- Issuance of shares in connection with fund mergers (Note 11) Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- --------- -------- --------- Net increase (decrease) from capital share transactions...................................... (52,501) (7,384) 48,129 --------- -------- --------- Net increase (decrease) in net assets............... (122,740) (36,131) (226,917) NET ASSETS: Beginning of year................................... 458,392 494,523 721,440 --------- -------- --------- End of year......................................... $ 335,652 $458,392 $ 494,523 ========= ======== ========= Accumulated undistributed (distribution in excess of) net investment income......................... $ -- $ -- $ -- ========= ======== =========
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 128 - --------------------------------------------------------------------------------
STOCK FUND VALUE FUND GROWTH AND INCOME FUND --------------------------------------- ----------------------------------------- --------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE PERIOD ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001** OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ------------------ ------------------ -------------------- ------------------ ------------------ $ (5,809) $ (5,997) $ 194 $ 17 $ (1,067) $ (1,034) (250,183) (128,441) (4,159) 75 (67,844) (35,963) (152,541) (463,925) (6,448) (1,588) (11,848) (43,302) ---------- ---------- -------- ------- -------- -------- (408,533) (598,363) (10,413) (1,496) (80,759) (80,299) ---------- ---------- -------- ------- -------- -------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (49,517) (79) -- -- (7,583) -- (27,588) (12) -- -- (1,607) -- (23,538) (27) -- -- (2,474) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,437) (1) -- -- (19) -- -- -- -- -- -- ---------- ---------- -------- ------- -------- -------- -- (102,080) (119) -- -- (11,683) ---------- ---------- -------- ------- -------- -------- 72,759 314,049 23,394 14,680 27,213 103,759 (24,517) 71,780 4,471 2,166 (635) 14,410 (32,747) 97,523 6,440 5,147 (6,177) 15,052 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 13,254 4,426 2 300 364 76 -- -- -- -- -- -- -- -- -- -- 20,626 -- -- -- -- -- 12,446 -- -- -- -- -- 1,856 -- ---------- ---------- -------- ------- -------- -------- 28,749 487,778 34,307 22,293 55,693 133,297 ---------- ---------- -------- ------- -------- -------- (379,784) (212,665) 23,775 20,797 (25,066) 41,315 1,958,826 2,171,491 20,797 -- 343,757 302,442 ---------- ---------- -------- ------- -------- -------- $1,579,042 $1,958,826 $ 44,572 $20,797 $318,691 $343,757 ========== ========== ======== ======= ======== ======== -- $ $ -- $ 194 $ 26 $ -- $ -- ========== ========== ======== ======= ======== ========
129 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
DIVIDEND AND GROWTH FUND --------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ------------------ OPERATIONS: Net investment income (loss).............................. $ 6,236 $ 5,494 Net realized gain (loss) on investments................... (10,830) 10,787 Net unrealized appreciation (depreciation) of investments............................................. (155,094) (83,378) ---------- -------- Net increase (decrease) in net assets resulting from operations.............................................. (159,688) (67,097) ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A................................................. (5,490) (4,317) Class B................................................. (223) (443) Class C................................................. (247) (379) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (216) (376) Class Z................................................. -- -- From net realized gain on investments Class A................................................. (8,340) (12,819) Class B................................................. (2,411) (5,208) Class C................................................. (1,890) (2,777) Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (412) (961) Class Z................................................. -- -- ---------- -------- Total distributions..................................... (19,229) (27,280) ---------- -------- CAPITAL SHARE TRANSACTIONS: Class A................................................. 410,049 285,285 Class B................................................. 64,289 50,519 Class C................................................. 73,195 67,003 Class E................................................. -- -- Class H................................................. -- -- Class L................................................. -- -- Class M................................................. -- -- Class N................................................. -- -- Class Y................................................. (10,771) 7,356 Class Z................................................. -- -- Issuance of shares in connection with fund mergers (Note 11) Class A................................................. -- -- Class B................................................. -- -- Class C................................................. -- -- ---------- -------- Net increase (decrease) from capital share transactions... 536,762 410,163 ---------- -------- Net increase (decrease) in net assets..................... 357,845 315,786 NET ASSETS: Beginning of year......................................... 815,569 499,783 ---------- -------- End of year............................................... $1,173,414 $815,569 ========== ======== Accumulated undistributed (distribution in excess of) net investment income....................................... $ 9 $ 409 ========== ========
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 130 - --------------------------------------------------------------------------------
ADVISERS FUND HIGH YIELD FUND TOTAL RETURN BOND FUND --------------------------------------- --------------------------------------- --------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 ------------------ ------------------ ------------------ ------------------ ------------------ ------------------ $ 30,190 $ 35,668 $ 14,960 $ 6,008 $ 14,973 $ 8,345 (185,895) (66,684) (11,937) (1,916) 5,803 5,600 (138,097) (223,962) (27,352) (4,914) (4,166) 6,091 ---------- ---------- -------- ------- -------- -------- (293,802) (254,978) (24,329) (822) 16,610 20,036 ---------- ---------- -------- ------- -------- -------- (20,818) (19,995) (8,394) (2,955) (7,842) (3,443) (5,930) (8,066) (3,559) (1,072) (3,073) (1,416) (4,835) (5,942) (3,513) (1,567) (3,440) (1,524) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (377) (1,466) (75) (343) (1,791) (1,893) -- -- -- -- -- -- -- (33,510) -- -- (732) -- -- (23,894) -- -- (343) -- -- (16,207) -- -- (377) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,394) -- -- (263) -- -- -- -- -- -- -- ---------- ---------- -------- ------- -------- -------- (31,960) (111,474) (15,541) (5,937) (17,861) (8,276) ---------- ---------- -------- ------- -------- -------- 183,664 363,245 29,591 25,534 92,879 80,413 (25,825) 99,578 5,199 10,273 42,260 31,530 (1,961) 124,614 19,445 20,187 45,451 43,111 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (54,198) 1,962 (4,252) 1,636 (3,250) 10,758 -- -- -- -- -- -- 149,372 -- 41,430 -- -- -- 58,085 -- 31,948 -- -- -- 10,535 -- 2,737 -- -- -- ---------- ---------- -------- ------- -------- -------- 319,672 589,399 126,098 57,630 177,340 165,812 ---------- ---------- -------- ------- -------- -------- (6,090) 222,947 86,228 50,871 176,089 177,572 2,245,891 2,022,944 94,503 43,632 284,279 106,707 ---------- ---------- -------- ------- -------- -------- $2,239,801 $2,245,891 $180,731 $94,503 $460,368 $284,279 ========== ========== ======== ======= ======== ======== $ 1,166 $ 3,162 $ (304) $ 139 $ 555 $ 166 ========== ========== ======== ======= ======== ========
131 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED) (000'S OMITTED) - --------------------------------------------------------------------------------
TAX-FREE MINNESOTA FUND ----------------------------------------------------------------------- FOR THE ONE-MONTH FOR THE YEAR ENDED PERIOD ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 SEPTEMBER 30, 2001 ------------------ ----------------- ------------------ OPERATIONS: Net investment income (loss)........................ $ 1,386 $ 136 $ 1,797 Net realized gain (loss) on investments............. 687 18 (81) Net unrealized appreciation (depreciation) of investments....................................... (490) 361 1,803 ------- ------- ------- Net increase (decrease) in net assets resulting from operations........................................ 1,583 515 3,519 ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class A........................................... (19) -- -- Class B........................................... (2) -- -- Class C........................................... (1) -- -- Class E........................................... (1,167) (118) (1,604) Class H........................................... (23) (3) (44) Class L........................................... (118) (12) (158) Class M........................................... (16) (2) (33) Class N........................................... (6) (1) (8) Class Y........................................... -- -- -- Class Z........................................... -- -- -- From net realized gain on investments Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- Class E........................................... -- -- -- Class H........................................... -- -- -- Class L........................................... -- -- -- Class M........................................... -- -- -- Class N........................................... -- -- -- Class Y........................................... -- -- -- Class Z........................................... -- -- -- ------- ------- ------- Total distributions............................... (1,352) (136) (1,847) ------- ------- ------- CAPITAL SHARE TRANSACTIONS: Class A........................................... 2,075 -- -- Class B........................................... 238 -- -- Class C........................................... 305 -- -- Class E........................................... (1,325) (49) (2,258) Class H........................................... (517) (3) (35) Class L........................................... (224) (62) (41) Class M........................................... (212) (25) (72) Class N........................................... (1) 1 (64) Class Y........................................... 1 -- -- Class Z........................................... -- -- -- Issuance of shares in connection with fund mergers (Note 11) Class A........................................... -- -- -- Class B........................................... -- -- -- Class C........................................... -- -- -- ------- ------- ------- Net increase (decrease) from capital share transactions...................................... 340 (138) (2,470) ------- ------- ------- Net increase (decrease) in net assets............... 571 241 (798) NET ASSETS: Beginning of year................................... 38,145 37,904 38,702 ------- ------- ------- End of year......................................... $38,716 $38,145 $37,904 ======= ======= ======= Accumulated undistributed (distribution in excess of) net investment income......................... $ 34 $ -- $ -- ======= ======= =======
* These amounts represents seed money deposited in The Hartford Global Communications Fund, The Hartford Global Financial Services Fund and The Hartford Growth Fund on October 31, 2000. ** From inception April 30, 2001, to October 31, 2001. *** From inception May 24, 2001, to October 31, 2001. The accompanying notes are an integral part of these financial statements. 132 - --------------------------------------------------------------------------------
TAX-FREE NATIONAL FUND U.S. GOVERNMENT SECURITIES FUND -------------------------------------------------------- -------------------------------------------------------- FOR THE FOR THE FOR THE THREE MONTH FOR THE FOR THE THREE MONTH FOR THE YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 SEPTEMBER 30, 2001 OCTOBER 31, 2002 OCTOBER 31, 2001 SEPTEMBER 30, 2001 ---------------- ---------------- ------------------ ---------------- ---------------- ------------------ $ 2,079 $ 198 $ 2,463 $ 11,065 $ 3,253 $ 14,222 1,606 92 407 12,535 1,858 5,061 (987) 501 2,508 (6,917) 6,183 9,057 ------- ------- ------- -------- -------- -------- 2,698 791 5,378 16,683 11,294 28,340 ------- ------- ------- -------- -------- -------- (116) -- -- (660) -- -- (29) -- -- (272) -- -- (25) -- -- (289) -- -- (1,450) (152) (1,982) (6,920) (2,435) (11,080) (99) (13) (171) (331) (111) (438) (259) (27) (311) (2,041) (626) (2,778) (47) (5) (57) (218) (62) (234) (17) (1) (12) (65) (19) (82) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (167) -- -- -- -- -- (18) -- -- -- -- -- (32) -- -- -- -- -- (7) -- -- -- -- -- (2) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- ------- -------- -------- -------- (2,268) (198) (2,533) (10,796) (3,253) (14,612) ------- ------- ------- -------- -------- -------- 12,110 -- -- 74,121 -- -- 3,750 -- -- 38,705 -- -- 3,110 -- -- 40,119 -- -- (3,291) (328) (2,021) (33,953) (318) (12,695) (1,768) (223) (423) (1,617) 361 1,213 (713) 55 1,033 (4,483) 3,177 1,665 (188) 4 79 (55) 1,110 760 56 64 162 (584) 613 (92) 1 -- -- 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------- ------- ------- -------- -------- -------- 13,067 (428) (1,170) 112,254 4,943 (9,149) ------- ------- ------- -------- -------- -------- 13,497 165 1,675 118,141 12,984 4,579 57,411 57,246 55,571 259,918 246,934 242,355 ------- ------- ------- -------- -------- -------- $70,908 $57,411 $57,246 $378,059 $259,918 $246,934 ======= ======= ======= ======== ======== ======== $ 37 $ -- $ -- $ 42 $ -- $ -- ======= ======= ======= ======== ======== ======== MONEY MARKET FUND ----------------------------------- FOR THE FOR THE YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- $ 2,942 $ 5,029 -- 3 -- -- -------- -------- 2,942 5,032 -------- -------- (2,373) (2,340) (225) (751) (217) (980) -- -- -- -- -- -- -- -- -- -- (127) (961) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- (2,942) (5,032) -------- -------- 22,036 42,851 44,803 34,024 11,397 47,031 -- -- -- -- -- -- -- -- -- -- (30,494) 14,984 -- -- 194,078 -- 5,247 -- 624 -- -------- -------- 247,691 138,890 -------- -------- 247,691 138,890 222,928 84,038 -------- -------- $470,619 $222,928 ======== ======== $ -- $ -- ======== ========
133 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- 1. ORGANIZATION: The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc. (the Companies) are open-end management investment companies comprised of thirty-three portfolios (each a "Fund" or together the "Funds"). Twenty-eight Funds are included in these financial statements, they are The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Technology Fund, The Hartford International Small Company Fund, The Hartford SmallCap Growth Fund, The Hartford Small Company Fund, The Hartford International Capital Appreciation Fund, The Hartford Capital Appreciation Fund, The Hartford Growth Opportunities Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, The Hartford Value Opportunities Fund, The Hartford International Opportunities Fund, The Hartford Global Leaders Fund, The Hartford Growth Fund, The Hartford Stock Fund, The Hartford Value Fund, The Hartford Growth and Income Fund, The Hartford Dividend and Growth Fund, The Hartford Advisers Fund, The Hartford High Yield Fund, The Hartford Total Return Bond Fund, The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund, The U.S. Government Securities Fund and The Hartford Money Market Fund. The Companies are organized under the laws of the State of Maryland and were registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, as amended, as diversified open-end management investment companies, except for The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Technology Fund and The Hartford Focus Fund which are non-diversified. The Funds, their classes and investment objectives are listed below: The Hartford Global Communications Fund Seeks long-term capital appreciation. (Global Communications Fund) Classes A, B, C and Y The Hartford Global Financial Services Fund Seeks long-term capital appreciation. (Global Financial Services Fund) Classes A, B, C and Y The Hartford Global Health Fund Seeks long-term capital appreciation by investing at (Global Health Fund) least 80% of its total assets in the equity securities Classes A, B, C and Y of health care companies worldwide. The Hartford Global Technology Fund Seeks long-term capital appreciation by investing at (Global Technology Fund) least 80% of its total assets in the equity securities Classes A, B, C and Y of technology companies worldwide. The Hartford International Small Company Fund Seeks capital appreciation. (International Small Company Fund) Classes A, B, C and Y The Hartford SmallCap Growth Fund Seeks to maximize short and long-term capital (SmallCap Growth Fund) appreciation. Classes A, B, C, H, L, M, N and Y The Hartford Small Company Fund Seeks growth of capital by investing primarily in (Small Company Fund) stocks selected on the basis of potential for capital Classes A, B, C and Y appreciation. The Hartford International Capital Appreciation Fund Seeks capital appreciation. (International Capital Appreciation Fund) The Hartford Capital Appreciation Fund Seeks growth of capital. (Capital Appreciation Fund) Classes A, B, C and Y
134 - -------------------------------------------------------------------------------- The Hartford Growth Opportunities Fund Seeks short- and long-term capital appreciation. (Growth Opportunities Fund) Classes A, B, C, H, L, M, N, Y and Z The Hartford MidCap Fund Seeks long-term growth of capital. (MidCap Fund) Classes A, B, C and Y The Hartford MidCap Value Fund Seeks long-term capital appreciation. (MidCap Value Fund) Classes A, B, C and Y The Hartford Value Opportunities Fund Seeks short- and long-term capital appreciation. (Value Opportunities Fund) Classes A, B, C, H, L, M, N and Y The Hartford International Opportunities Fund Seeks growth of capital. (International Opportunities Fund) Classes A, B, C and Y The Hartford Global Leaders Fund Seeks growth of capital. (Global Leaders Fund) Classes A, B, C and Y The Hartford Focus Fund Seeks long-term capital appreciation. (Focus Fund) Classes A, B, C and Y The Hartford Growth Fund Seeks long-term capital appreciation. (Growth Fund) Classes A, B, C, H, L, M, N and Y The Hartford Stock Fund Seeks long-term growth of capital, with income as a (Stock Fund) secondary consideration. Classes A, B, C and Y The Hartford Value Fund Seeks long-term total return. (Value Fund) Classes A, B, C and Y The Hartford Growth and Income Fund Seeks growth of capital and current income by investing (Growth and Income Fund) primarily in stocks with earnings growth potential and Classes A, B, C and Y steady or rising dividends. The Hartford Dividend and Growth Fund Seeks a high level of current income consistent with (Dividend and Growth Fund) growth of capital by investing primarily in stocks. Classes A, B, C and Y The Hartford Advisers Fund Seeks maximum long-term total return. (Advisers Fund) Classes A, B, C and Y The Hartford High Yield Fund Seeks high current income by investing in (High Yield Fund) non-investment grade debt securities. Growth of capital Classes A, B, C and Y is a secondary objective. The Hartford Total Return Bond Fund Seeks a high level of current income, consistent with a (Total Return Bond Fund) competitive total return, as compared to bond funds Classes A, B, C and Y with similar investment objectives and policies, by investing primarily in debt securities.
135 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- The Hartford Tax-Free Minnesota Fund Seeks to provide current income exempt from both (Tax-Free Minnesota Fund) federal and Minnesota income tax. Classes A, B, C, E, H, L, M, N and Y The Hartford Tax-Free National Fund Seeks to provide current income exempt from federal (Tax-Free National Fund) income tax. Classes A, B, C, E, H, L, M, N and Y The Hartford U.S. Government Securities Fund Seeks to provide current income consistent with prudent (U.S. Government Securities Fund) investment risk. Classes A, B, C, E, H, L, M, N and Y The Hartford Money Market Fund Seeks maximum current income consistent with liquidity (Money Market Fund) and preservation of capital. Classes A, B, C and Y
Effective October 31, 2002, the name of The Hartford Bond Income Strategy Fund was changed to The Hartford Total Return Bond Fund. Class A shares are sold with a front-end sales charge of up to 5.50%. Class B shares are sold with a contingent deferred sales charge which is assessed on the lesser of the net asset value of the shares at the time of redemption or the original purchase price, and declines from up to 5.00% to zero depending on the period of time the shares are held. Class C shares are sold with a front-end sales charge of up to 1% and a contingent deferred sales charge of up to 1%. Class E is sold with a front-end sales charge of 4.50%. Classes H and M are sold with a contingent deferred sales charge which is assessed on the lesser of the net asset value of the shares at the time of redemption or the original purchase price, and declines from 4.00% to zero depending on the period of time the shares are held. Class L is sold with a front end sales charge up to 4.75%. Class N is sold with a contingent deferred sales charge of 1.00% if redeemed within 1 year. Class Y shares are sold to certain eligible institutional investors without a sales charge. Class Z is sold without sales charges. All classes of shares have identical voting, redemption, dividend, liquidation and other rights and the same terms and conditions, except that each class may have different expenses, which may affect performance, and except that Class B shares automatically convert to Class A shares after 8 years. Classes H and N shares will automatically convert to Class L shares after 8 years. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Funds, which are in accordance with generally accepted accounting principles in the investment company industry: a) Security Transactions -- Security transactions are recorded on the trade date (date the order to buy or sell is executed). Security gains and losses are determined on the basis of identified cost. b) Security Valuation and Investment Income -- Equity securities are valued at the last sales price reported on the principal securities exchange on which such securities are traded (domestic or foreign) or on the principal over-the-counter market on which such securities are traded, as of the close of business on the day the securities are being valued. If no sale took place on a particular day then such securities are valued at the mean between the bid and asked prices. The difference between cost and market value for debt and equity securities is recorded in the Statement of Operations and accumulated in net assets. Debt securities (other than short-term obligations) are valued on the basis of valuations furnished by an unaffiliated pricing service, which determines valuations for normal institutional size trading units of debt securities. Mortgage securities are valued at the bid price. Short-term securities held in the Money Market Fund are valued at amortized cost or original cost plus accrued interest receivable, both of which approximate market value. In the remaining Funds, short-term investments with maturity of 60 days or less when purchased are valued at amortized cost, which approximates market value. Short-term investments purchased with a maturity of more than 60 days when purchased are valued based on market quotations until the remaining days to maturity becomes less than 61 days. From such time until maturity, the investments are valued at amortized cost. 136 - -------------------------------------------------------------------------------- Securities quoted in foreign currencies are translated into U.S. dollars at the exchange rates at the end of each business day. Options are valued at the last sales price. If no sale took place on such day, then options are valued at the mean between the bid and asked prices. Securities for which market quotations are not readily available and all other assets are valued in good faith at fair value by, or under the direction of, the Funds' Board of Directors. (See Note 2 (g)) Investment Income such as dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on the accrual basis. c) Foreign Currency Transactions -- The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of portfolio security valuation resulting from fluctuations in foreign currency exchange rates on portfolio securities from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements. Net realized foreign exchange gains or losses arise from sales of foreign currencies and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates. d) Securities Lending -- The Funds, except for the Money Market Fund, may lend their securities to certain qualified brokers who pay these Funds negotiated lender fees. The loans are collateralized at all times with cash or short-term money market instruments with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, these Funds may bear the risk of delay of the recovery of loaned securities or even loss of rights in the collateral should the borrower of the securities fail financially. As of October 31, 2002, the market value of the securities loaned and the market value of the collateral were as follows:
VALUE OF VALUE OF FUND SECURITIES LOANED COLLATERAL ---- ----------------- ---------- Global Communications Fund.................................. $ 1,357 $ 1,460 Global Financial Services Fund.............................. 2,579 2,676 Global Health Fund.......................................... 15,438 16,243 Global Technology Fund...................................... 4,099 4,325 International Small Company Fund............................ 603 630 SmallCap Growth Fund........................................ 3,208 3,741 Small Company Fund.......................................... 8,106 8,347 International Capital Appreciation Fund..................... 723 885 Capital Appreciation Fund................................... 190,134 200,871 Growth Opportunities Fund................................... 28,313 29,700 MidCap Fund................................................. 57,639 61,486 MidCap Value Fund........................................... 2,152 2,216 International Opportunities Fund............................ 9,246 9,505 Global Leaders Fund......................................... 29,337 36,186 Growth Fund................................................. 1,384 1,478 High Yield Fund............................................. 23,476 25,118 Total Return Bond Fund...................................... 68,123 70,622 U.S. Government Securities Fund............................. 56,267 57,439
e) Joint Trading Account -- Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Funds may transfer uninvested cash balances into a joint trading account managed by The Hartford Investment 137 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- Management Company (HIMCO) or Wellington Management Company LLP (Wellington). These balances may be invested in one or more repurchase agreements and/or short-term money market instruments. f) Repurchase Agreements -- A repurchase agreement is an agreement by which the seller of a security agrees to repurchase the security sold at a mutually agreed upon time and price. At the time the Funds enter into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Securities which serve to collateralize the repurchase agreement are held by each Fund's custodian in book entry or physical form in the custodial account of the Fund. Repurchase agreements are valued at cost plus accrued interest receivable. All repurchase agreements are executed through the Fund's custodian, State Street Bank. Certain Funds, together with other investment management companies having investment advisory agreements with Wellington have an interest in a $1,645,903 joint repurchase agreement dated 10/31/02, 1.88% due 11/01/02. This joint repurchase agreement is collateralized by $1,249,457 U.S. Treasury Bonds 6.25% - 10.375% due 2016 - 2029, and $397,903 U.S. Treasury Bills 1.25% - 1.55% due 2002 - 2003. The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Global Communications Fund.................................. $ 291 Global Financial Services................................... 456 Global Health Fund.......................................... 1,563 Global Technology Fund...................................... 1,501 International Small Company Fund............................ 142 Small Company Fund.......................................... 6,626 International Capital Appreciation Fund..................... 195 Capital Appreciation Fund................................... 142,323 MidCap Fund................................................. 94,573 MidCap Value Fund........................................... 3,292 Value Opportunities Fund.................................... 806 International Opportunities Fund............................ 9,788 Global Leaders Fund......................................... 20,316 Focus Fund.................................................. 2,601 Growth Fund................................................. 3,663 Growth Opportunities Fund................................... 42,987 Stock Fund.................................................. 32,649 Value Fund.................................................. 353 Growth and Income Fund...................................... 6,021 Dividend and Growth Fund.................................... 67,928 Advisers Fund............................................... 49,041
Certain Funds, together with other investment management companies having investment advisory agreements with HIMCO have an interest in $621,971 joint repurchase agreement dated 10/31/02, 1.86% due 11/01/02. This joint repurchase agreement is collateralized by $420,294 U.S. Treasury Bonds 8.125% - 8.875% due 2004 - 2029, and $233,670 U.S. Treasury Bills 5.25% - 5.75% due 2002 - 2003. The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- High Yield Fund............................................. $ 4,331 Total Return Bond Fund...................................... 33,077 U.S. Government Securities Fund............................. 9,326 Money Market Fund 26,942
138 - -------------------------------------------------------------------------------- g) Futures, Options on Futures and Options Transactions -- Certain Funds may invest in futures contracts in order to gain exposure to or protect against changes in the market. A futures contract is an agreement between two parties to buy and sell a security at a set price on a future date. When the Funds enter into such contracts, they are required to deposit with their custodian an amount of "initial margin" of cash, commercial paper or U.S. Treasury Bills. Subsequent payments, called maintenance margin, to and from the broker, are made on a daily basis as the price of the underlying security fluctuates, making the long and short positions in the futures contract more or less valuable (i.e., mark-to-market), which results in an unrealized gain or loss to the Funds. The market value of a traded futures contract is the last sale price. In the absence of a last sale price, the last offering price is used. In the absence of either of these prices, fair value is determined according to procedures established by the Funds' Board of Directors. At any time prior to expiration of the futures contract, the Funds may close the position by taking an opposite position, which would operate to terminate the position in the futures contract. A final determination of maintenance margin is then made, additional cash is required to be paid by or released to the Funds and the Funds realize a gain or loss. The use of futures contracts involve elements of market and counterparty risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Change in the value of the futures contracts may decrease the effectiveness of a Fund's strategies and potentially result in loss. The premium paid by a Fund for the purchase of a call or put option is included in the Fund's Statements of Assets and Liabilities as an investment and subsequently "marked-to-market" through net unrealized appreciation (depreciation) of options to reflect the current market value of the option as of the end of the reporting period. If a purchased option expires on its stipulated expiration date, the Fund realizes a loss in the amount of the cost of the option. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security, which the Fund purchases upon exercise, will be increased by the premium originally paid to buy the call. The Funds may write covered options. "Covered" means that so long as a Fund is obligated as the writer of an option, it will own either the underlying securities or currency or the option to purchase or sell the same underlying securities or currency having the expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will establish or maintain with it's custodian for the term of the option a "segregated account" consisting of cash or other liquid securities having a value equal to the fluctuating market value of the option securities or currencies. A Fund receives a premium for writing a call or put option, recorded as a component of other liabilities on the Statements of Assets and Liabilities, which increases the Funds' return, recorded as a realized gain, if the option expires unexercised or is closed out at a net profit. Any loss realized from the covered option is offset by the gain realized on the sale of the underlying securities or currency. Covered options, at times before exercise or close out, are marked-to-market through net unrealized appreciation (depreciation) of options. There is a risk of loss from a change in value of such options, which may exceed the related premiums received. The Fund's had no option activity for the year ended October 31, 2002. h) Forward Foreign Currency Contracts -- For the year ended October 31, 2002, the Global Communications Fund, the Global Financial Services Fund, the International Small Company Fund, the Small Company Fund, the International Capital Appreciation Fund, the Capital Appreciation Fund, the MidCap Value Fund, the International Opportunities Fund and the Global Leaders Fund entered into forward foreign currency exchange contracts that obligate the Funds to repurchase/replace or sell currencies at specified future dates. The Funds enter into forward foreign currency contracts to hedge against adverse fluctuations in exchange rates between currencies. Forward contracts involve elements of market risk in excess of the amount reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of the contract and from unanticipated movement in the value of foreign currencies relative to the U.S. dollar. 139 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- i) Indexed Securities -- The Funds may invest in indexed securities whose values are linked to changes in interest rates, indices, or other underlying instruments. The Funds use these securities to increase or decrease their exposure to different underlying instruments and to gain exposure to markets that might be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment and there is a limit to the potential appreciation of the investment. j) Federal Income Taxes -- For federal income tax purposes, the Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code by distributing substantially all of their taxable net investment income and net realized capital gains to their shareholders or otherwise complying with the requirements of regulated investment companies. On a calendar year basis, the funds are subject to a 4% federal excise tax to the extent it does not distribute substantially all of its net investment income and realized gains, if any. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements. The tax character of distributions paid for the years indicated is as follows:
FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 SEPTEMBER 30, 2001 AUGUST 31, 2001 JULY 31, 2001 ---------------- ---------------- ------------------ --------------- ------------- GLOBAL HEALTH FUND Ordinary income........... 2,670 4,047 Long-term capital gains... 1,353 GLOBAL TECHNOLOGY FUND Ordinary income........... 747 SMALL CAP GROWTH FUND Ordinary income........... 69,468 Long-term capital gains... 2,944 21,959 SMALL COMPANY FUND Long-term capital gains... 11,957 CAPITAL APPRECIATION FUND Ordinary income........... 246,519 Long-term capital gains... 89,245 GROWTH OPPORTUNITIES FUND Ordinary income........... 171,709 Long-term capital gains... 8,492 127,296 MIDCAP FUND Ordinary income........... 72,919 Long-term capital gains... 6,376 VALUE OPPORTUNITIES FUND Ordinary income........... 1,805 2,998 Long-term capital gains... 1,402 2,464 INTERNATIONAL OPPORTUNITIES FUND Ordinary income........... 881 Long-term capital gains... 6,842 GLOBAL LEADERS FUND Ordinary income........... 2,964 Long-term capital gains... 2,135 Return of Capital......... 331 GROWTH FUND Ordinary income........... 31,090 Long-term capital gains... 147 69,268
140 - --------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 SEPTEMBER 30, 2001 AUGUST 31, 2001 JULY 31, 2001 ---------------- ---------------- ------------------ --------------- ------------- STOCK FUND Ordinary income........... 63,319 Long-term capital gains... 38,761 VALUE FUND Ordinary income........... 119 GROWTH AND INCOME FUND Ordinary income........... 8,754 Long-term capital gains... 2,929 DIVIDEND AND GROWTH FUND Ordinary income........... 6,346 6,446 Long-term capital gains... 12,883 20.834 ADVISERS FUND Ordinary income........... 31,960 84,236 Long-term capital gains... 27,238 HIGH YIELD FUND Ordinary income........... 15,541 5,937 TOTAL RETURN BOND FUND Ordinary income........... 16,772 8,276 Long-term capital gains... 1,089 TAX-FREE MINNESOTA FUND Ordinary income........... 1,352 136 1,847 TAX-FREE NATIONAL FUND Ordinary income........... 2,171 198 2,533 Long-term capital gains... 97 U.S. GOVERNMENT SECURITIES FUND Ordinary income........... 10,796 3,253 14,612 MONEY MARKET FUND Ordinary income........... 2,942 5,032
141 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- As of October 31, 2002, the components of distributable earnings on a tax basis are as follows:
TOTAL UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION**) (DEFICIT) ------------- ------------- ------------- ---------------- ----------- Global Communications Fund......... $ -- $ -- $ (6,987) $ (1,056) $ (8,043) Global Financial Services Fund..... 58 -- (1,944) (2,224) (4,110) Global Health Fund................. 1,235 3,181 -- (34,176) (29,760) Global Technology Fund............. -- -- (70,335) (6,942) (77,277) International Small Company Fund... 17 -- (405) (789) (1,177) SmallCap Growth Fund............... -- -- (80,758) (39,671) (120,429) Small Company Fund................. -- -- (132,354) (13,567) (145,921) International Capital Appreciation Fund............................. 6 -- (1,800) 172 (1,622) Capital Appreciation Fund.......... -- -- (687,875) (384,870) (1,072,745) Growth Opportunities Fund.......... -- -- (217,816) (13,929) (231,745) MidCap Fund........................ -- -- (130,031) (120,445) (250,476) MidCap Value Fund.................. -- -- (2,174) (26,590) (28,764) Value Opportunities Fund........... -- -- (8,600) (5,797) (14,397) International Opportunities Fund... -- -- (55,536) (10,568) (66,104) Global Leaders Fund................ -- -- (222,836) 8,763 (214,073) Focus Fund......................... -- -- (15,785) (27,004) (42,789) Growth Fund........................ -- -- (80,330) (32,429) (112,759) Stock Fund......................... -- -- (374,519) (496,422) (870,941) Value Fund......................... 194 -- (4,067) (8,154) (12,027) Growth and Income Fund............. -- -- (102,989) (56,542) (159,531) Dividend and Growth Fund........... 9 -- (7,375) (202,684) (210,050) Advisers Fund...................... 1,167 -- (245,429) (288,997) (533,259) High Yield Fund.................... 496 -- (45,223) (60,726) (105,453) Total Return Bond Fund............. 3,996 1,071 -- 1,048 6,115 Tax-Free Minnesota Fund............ 34 194 -- 2,082 2,310 Tax-Free National Fund............. 37 1,603 -- 4,046 5,686 U.S. Government Securities Fund.... 42 -- (28,421) 8,544 (19,835)
* Certain Funds had capital loss carryovers that are identified elsewhere in the notes. ** The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of wash sale losses and differing treatments for the interest accrual on defaulted securities. k) Fund Share Valuation and Dividend Distributions to Shareholders -- Orders for a Fund's shares are executed in accordance with the investment instructions of the shareholders. Dividend income is accrued as of the ex-dividend date, except that certain dividends for foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund is informed of the dividend in the exercise of reasonable diligence. Interest income and expenses are accrued on a daily basis. The net asset value of each Fund's shares is determined as of the close of each business day of the New York Stock Exchange (the Exchange). The net asset value per share is determined separately for each class of each fund by dividing the Fund's net assets attributable to that class by the number of shares of the class outstanding. Orders for the purchase of a Fund's shares received prior to the close of the Exchange on any day on which the Exchange is open for business are priced at the per-share net asset value determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Fund is not open for business, are priced at the per-share net asset value next determined. Each Fund intends to distribute substantially all of its net investment income and net realized capital gains to shareholders no less frequently than once a year. Normally, dividends from net investment income of the Global 142 - -------------------------------------------------------------------------------- Communications Fund, the Global Financial Services Fund, the Global Health Fund, the Global Technology Fund, the International Small Company Fund, the SmallCap Growth Fund, the Small Company Fund, the International Capital Appreciation Fund, the Capital Appreciation Fund, the Growth Opportunities Fund, the MidCap Fund, the MidCap Value Fund, the Value Opportunities Fund, the International Opportunities Fund, the Global Leaders Fund, the Focus Fund, the Growth Fund, the Stock Fund and the Value Fund will be declared and paid annually; dividends from net investment income of the Growth and Income Fund, the Dividend and Growth Fund and the Advisers Fund will be declared and paid quarterly; dividends from the net investment income of the High Yield Fund, the Total Return Bond Fund, the Tax-Free Minnesota Fund, the Tax-Free National Fund and the U. S. Government Securities Fund will be declared and paid monthly and dividends from net investment income of the Money Market Fund will be declared daily and paid monthly. Dividends from the Money Market Fund are not paid on shares until the day following the date on which the shares are issued. Unless shareholders specify otherwise, all dividends and distributions will be automatically reinvested in additional full or fractional shares of each Fund. Net investment income and net realized capital gains available for distribution are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gains and losses; losses deferred due to wash sales and excise tax regulations. Permanent book and federal income tax basis differences relating to shareholder distributions will result in reclassifications to certain of the Funds' capital accounts (see Note 7). l) Use of Estimates -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Operating results in the future could vary from the amounts derived from management's estimates. m) Restricted Securities -- Each Fund is permitted to invest up to 15% of its net assets in illiquid securities, except for the Money Market Fund, which may invest up to 10% in such securities. "Illiquid Securities" are those that may not be sold or disposed of in the ordinary course of business, at approximately the price used to determine a Fund's net asset value per share. Each Fund may also purchase certain restricted securities, commonly known as Rule 144A securities, that can be resold to institutions and which may be determined to be liquid pursuant to policies and guidelines established by the Funds' Board of Directors. 3. EXPENSES: a) Investment Management and Advisory Agreements -- Hartford Investment Financial Services Company (HIFSCO), a wholly-owned indirect subsidiary of The Hartford Financial Services Group, Inc. (The Hartford), serves as investment manager to each Fund pursuant to an Investment Advisory Agreement dated March 3, 1997. As investment manager, HIFSCO has overall investment supervisory responsibility for each Fund. In addition, HIFSCO provides administrative personnel, services, equipment and facilities and office space for proper operation of the Funds. HIFSCO has contracted with Wellington for the provision of day to day investment management services to the Global Communications Fund, the Global Financial Services Fund, the Global Health Fund, the Global Technology Fund, the International Small Company Fund, the SmallCap Growth Fund, the Small Company Fund, the International Capital Appreciation Fund, the Capital Appreciation Fund, the Growth Opportunities Fund, the MidCap Fund, the MidCap Value Fund, the Value Opportunities Fund, the International Opportunities Fund, the Global Leaders Fund, the Focus Fund, the Growth Fund, the Stock Fund, the Value Fund, the Growth and Income Fund, the Dividend and Growth Fund and the Advisers Fund in accordance with each Fund's investment objective and policies. In addition, HIFSCO has contracted with HIMCO, a wholly owned subsidiary of The Hartford, for the provision of day to day investment management services for the High Yield Fund, the Total Return Bond Fund, the Tax-Free Minnesota Fund, the Tax-Free National Fund, the U.S. Government Securities Fund and the Money Market Fund. Each Fund pays a fee to HIFSCO, a portion of which may be used to compensate Wellington or HIMCO. 143 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- The schedule below reflects the rates of compensation paid to HIFSCO for investment advisory services rendered: MONEY MARKET FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. .50% On next $500 million............................................... .45% Over $1 billion.................................................... .40%
U.S. GOVERNMENT SECURITIES FUND AND TAX-FREE NATIONAL FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $50 million............................................... .80% Over $50 million................................................... .70%
TOTAL RETURN BOND FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. .65% On next $500 million............................................... .55% Over $1 billion.................................................... .50%
SMALL COMPANY FUND, MIDCAP FUND, MIDCAP VALUE FUND, INTERNATIONAL OPPORTUNITIES FUND AND GLOBAL LEADERS FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. .85% On next $500 million............................................... .75% Over $1 billion.................................................... .70%
TAX-FREE MINNESOTA
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $50 million............................................... .72% Over $50 million................................................... .70%
SMALLCAP GROWTH FUND, GROWTH OPPORTUNITIES FUND, VALUE OPPORTUNITIES FUND AND GROWTH FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $100 million.............................................. 1.00% On next $150 million............................................... .80% Over $250 million.................................................. .70%
DIVIDEND AND GROWTH FUND, ADVISERS FUND AND HIGH YIELD FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. .75% On next $500 million............................................... .65% Over $1 billion.................................................... .60%
INTERNATIONAL SMALL COMPANY FUND AND INTERNATIONAL CAPITAL APPRECIATION FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. 1.00% On next $500 million............................................... .90% Over $1 billion.................................................... .85%
CAPITAL APPRECIATION FUND, STOCK FUND, VALUE FUND AND GROWTH AND INCOME FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. .80% On next $500 million............................................... .70% Over $1 billion.................................................... .65%
GLOBAL COMMUNICATIONS FUND, GLOBAL FINANCIAL SERVICES FUND, GLOBAL HEALTH FUND, GLOBAL TECHNOLOGY FUND AND FOCUS FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE - ------------------------ ---------- On first $500 million.............................................. 1.00% On next $500 million............................................... .95% Over $1 billion.................................................... .90%
b) Distribution and Service Plan for Class A, B, C, E, H, L, M and N Shares -- HIFSCO, is the principal underwriter and distributor of the Funds. HIFSCO is engaged in distribution activities which include marketing, distribution 144 - -------------------------------------------------------------------------------- and clearing of shares through broker-dealers, financing distribution costs and maintaining financial books and records. For the year ended October 31, 2002, the following revenues were received by HIFSCO:
FRONT-END LOAD CONTINGENT DEFERRED SALES CHARGE SALES CHARGE -------------- ------------------- HIFSCO...................................................... $82,441 $10,835
The Funds have adopted Distribution and Service Plans in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended, to compensate the Distributor (HIFSCO) for activities intended to result in the sale and distribution of Classes A, B, C, H, L, M and N shares and for providing services for shareholders. The Distributor is compensated at an annual rate that may not exceed 0.35% of the average daily net asset value of Class A shares of the Fund, some or all of which may be remitted to brokers. Up to an amount equal to 0.25% of a fund's average daily net assets may be used for shareholder servicing expenses with the remainder used for distribution expenses. The Class A Rule 12b-1 fee for each Fund has been voluntarily capped at 0.30% through at least February 28, 2003. The cap may be removed at any time thereafter. Some or the entire 12b-1 fee for Class B shares may be remitted to broker-dealers for distribution and/or shareholder account services. Under the Class B Plan, the Fund pays the Distributor 1.00% of the average daily net assets of Class B shares that are outstanding for 8 years or less, 0.25% of which is a fee for service provided to existing shareholders with the remainder used for distribution expenses. After eight years, Class B shares convert to Class A shares. Upon conversion to Class A shares, the Class A plan described above will apply to those shares. Under the Class C Plan, the Fund pays the Distributor 1.00% of the average daily net assets of Class C shares outstanding, 0.25% of which is intended as a fee for services provided to existing shareholders with the remainder used for distribution expenses. For Class C shares, some or the entire fee may be remitted to broker-dealers for distribution and/or shareholder account services. Class L has a distribution fee of 0.25% of average daily net assets for each fund, except for SmallCap Growth Fund has a 0.45%. Classes H, M and N have a distribution fee of 1.00% of average daily net assets on an annual basis, to be used to compensate those who sell shares of the fund and to pay certain other expenses of selling fund shares. There is no distribution plan for Class Y shares. c) Operating Expenses -- Allocable expenses incurred by the Funds are allocated to each Fund in proportion to the average daily net assets of each Fund, except where allocation of certain expenses is more fairly made directly to the Fund or to specific classes within a Fund. The Hartford has voluntarily agreed to limit the total operating 145 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- expenses of the Class A, B, C, H, L, M, N and Y shares of all the Funds, exclusive of taxes, interest, brokerage commissions, certain distribution expenses and extraordinary expenses, until at least February 28, 2003 as follows:
FUND CLASS A CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y ---- ------- ------- ------- ------- ------- ------- ------- ------- Global Communications Fund............. 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Financial Services Fund......... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Health Fund..................... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Technology Fund................. 1.65% 2.35% 2.35% NA NA NA NA 1.20% International Small Company Fund....... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Small Cap Growth Fund.................. 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% Small Company Fund..................... 1.45% 2.15% 2.15% NA NA NA NA 1.00% International Capital Appreciation Fund................................. 1.65% 2.35% 2.35% NA NA NA NA 1.20% Capital Appreciation Fund.............. 1.45% 2.15% 2.15% NA NA NA NA 1.00% Growth Opportunities Fund.............. 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% MidCap Fund............................ 1.45% 2.15% 2.15% NA NA NA NA 1.00% MidCap Value Fund...................... 1.45% 2.15% 2.15% NA NA NA NA 1.00% Value Opportunities Fund............... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% International Opportunities Fund....... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Global Leaders Fund.................... 1.65% 2.35% 2.35% NA NA NA NA 1.20% Focus Fund............................. 1.65% 2.35% 2.35% NA NA NA NA 1.20% Growth Fund............................ 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00% Stock Fund............................. 1.45% 2.15% 2.15% NA NA NA NA 1.00% Value Fund............................. 1.45% 2.15% 2.15% NA NA NA NA 1.00% Growth and Income Fund................. 1.45% 2.15% 2.15% NA NA NA NA 1.00% Dividend and Growth Fund............... 1.40% 2.10% 2.10% NA NA NA NA 0.95% Advisers Fund.......................... 1.40% 2.10% 2.10% NA NA NA NA 0.95% High Yield Fund........................ 1.40% 2.10% 2.10% NA NA NA NA 0.95% Total Return Bond Fund................. 1.25% 1.95% 1.95% NA NA NA NA 0.80% Tax-Free Minnesota Fund................ 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.70% Tax-Free National Fund................. 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.70% U.S. Government Securities Fund........ 1.20% 1.90% 1.90% 1.90% 1.20% 1.90% 1.90% 0.75% Money Market Fund...................... 1.00% 1.70% 1.70% NA NA NA NA 0.55%
The Hartford may terminate such voluntary and temporary fee waivers and expense limitation arrangements at any time after February 28, 2003 without notice. Amounts incurred which exceed the above limits, are deducted from expenses and are reported as expense reimbursements or waivers on the accompanying Statements of Operations. d) Other Related Party Transactions -- The Hartford and its subsidiaries provide facilities and office equipment, as well as perform certain other services, including fund accounting and financial reporting, to the Funds. Certain officers of the Funds are directors and/or officers of HIFSCO, HIMCO and/or The Hartford or its subsidiaries. No officer of the Funds receives any compensation directly from the Funds. As of October 15, 2001, Hartford Administrative Services Company (HASCO), a wholly owned subsidiary of The Hartford, began providing transfer agent services to the Funds. e) For the year ended October 31, 2002, legal fees and expenses were paid as follows to a law firm of which the former secretary of the Funds is a partner. 146 - --------------------------------------------------------------------------------
FUND AMOUNT ---- ------ SmallCap Growth Fund........................................ $ 7 Growth Opportunities Fund................................... 26 Value Opportunities Fund.................................... 2 Growth Fund................................................. 18 U.S. Government Securities Fund............................. 8 Tax-Free Minnesota Fund..................................... 2 Tax-Free National Fund...................................... 3 High Yield Fund............................................. 5
4. AFFILIATE HOLDINGS: As of October 31, 2002, HL Investment Advisors, is a subsidiary of The Hartford, and owned shares in the Funds as follows:
FUND CLASS A CLASS B CLASS C CLASS Y ---- ------- ------- ------- ------- Global Communications Fund..................... 700 100 100 100 Global Financial Services Fund..................... 700 100 100 100 Global Health Fund......... # # # # Global Technology Fund..... # -- -- # International Small Company Fund..................... 210 30 30 30 SmallCap Growth Fund....... # # # # International Capital Appreciation Fund........ 210 30 30 30 Growth Opportunities Fund..................... # # # # MidCap Value Fund.......... -- -- -- # Value Opportunities Fund... # # # # Global Leaders Fund........ -- -- -- # Focus Fund................. -- -- -- 1 Growth Fund................ # # # # Value Fund................. -- -- -- 30 Growth and Income Fund..... -- -- -- 32 High Yield Fund............ -- -- -- # Tax-Free Minnesota Fund.... # # # # Tax-Free National Fund..... # # # # U.S. Government Securities Fund..................... # # # #
# Due to the presentation of the financial statements in thousands, the number of shares held round to zero. During the year ended October 31, 2002, the Global Technology Fund, the International Opportunities Fund, the Small Company Fund and the MidCap Fund realized ($925), ($547), $2,151 and $3,125, respectively, of net capital gains (losses) resulting from in-kind redemptions valued at fair value, in which a shareholder who is an affiliate of The Hartford, exchanged Fund shares for securities held by the Fund rather than for cash. 147 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS: For the year ended October 31, 2002, the cost of purchases and proceeds from sales of securities for Money Market Fund were $8,149,639 and $8,099,124, respectively. The cost of purchases and proceeds from sales of securities (excluding short-term investments) for the other Funds were as follows:
PROCEEDS COST OF FROM FUND PURCHASES SALES ---- ---------- ---------- Global Communications Fund.................................. $ 6,148 $ 4,575 Global Financial Services Fund.............................. 17,494 12,847 Global Health Fund.......................................... 177,110 133,091 Global Technology Fund...................................... 87,856 94,604 International Small Company Fund............................ 15,271 10,128 SmallCap Growth Fund........................................ 149,693 165,242 Small Company Fund.......................................... 525,657 543,543 International Capital Appreciation Fund..................... 20,955 16,922 Capital Appreciation Fund................................... 4,687,087 3,901,651 Growth Opportunities Fund................................... 1,222,533 1,378,471 MidCap Fund................................................. 1,484,424 1,355,174 MidCap Value Fund........................................... 181,911 48,288 Value Opportunities Fund.................................... 32,136 32,744 International Opportunities Fund............................ 201,092 223,386 Global Leaders Fund......................................... 1,577,875 1,517,983 Focus Fund.................................................. 298,584 265,219 Growth Fund................................................. 437,781 484,047 Stock Fund.................................................. 937,882 905,129 Value Fund.................................................. 49,012 14,348 Growth and Income Fund...................................... 350,515 325,809 Dividend and Growth Fund.................................... 831,797 334,633 Advisers Fund............................................... 1,195,501 1,032,426 High Yield Fund............................................. 151,953 32,711 Total Return Bond Fund...................................... 655,932 496,854 Tax-Free Minnesota Fund..................................... 12,626 12,047 Tax-Free National Fund...................................... 34,642 24,985 U.S. Government Securities Fund............................. 681,096 568,924
The cost of securities acquired in the merger transaction for the International Opportunities Fund, the Global Leaders Fund, the Growth and Income Fund, the Advisers Fund, the High Yield Fund and the Money Market Fund were $18,301, $106,324, $34,890, $219,022, $95,358 and $198,965, respectively. See note 11. 148 (This page intentionally left blank) 149 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- 6. CAPITAL SHARE TRANSACTIONS: The following information is for the periods ended October 31, 2002:
SHARES SOLD ------------------------------------------------------- 2002 2001* 2001** ---------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------- ------ -------- ------ ------- GLOBAL COMMUNICATIONS FUND: Class A................... 306 $ 1,162 206 $ 1,282 -- $ -- Class B................... 123 440 90 539 -- -- Class C................... 98 408 96 547 -- -- Class Y................... 47 164 # # -- -- GLOBAL FINANCIAL SERVICES FUND: Class A................... 304 2,884 386 3,912 -- -- Class B................... 164 1,540 133 1,335 -- -- Class C................... 164 1,530 134 1,352 -- -- Class Y................... 78 762 # # -- -- GLOBAL HEALTH FUND: Class A................... 6,349 83,934 5,553 74,684 -- -- Class B................... 1,729 22,654 2,081 27,633 -- -- Class C................... 1,583 20,910 2,146 28,415 -- -- Class Y................... 94 1,245 217 2,935 -- -- GLOBAL TECHNOLOGY FUND: Class A................... 6,012 26,713 6,736 40,596 -- -- Class B................... 772 3,149 1,614 9,846 -- -- Class C................... 742 3,146 3,833 24,353 -- -- Class Y................... 516 2,264 2,367 14,306 -- -- INTERNATIONAL SMALL COMPANY FUND: Class A................... 1,081 10,260 246 2,444 -- -- Class B................... 123 1,160 31 316 -- -- Class C................... 86 774 49 479 -- -- Class Y................... 91 827 30 300 -- -- SMALL CAP GROWTH FUND: Class A................... 357 6,601 -- -- -- -- Class B................... 132 2,283 -- -- -- -- Class C................... 114 1,948 -- -- -- -- Class H................... 149 2,732 29 508 269 7,860 Class L................... 830 16,839 174 3,186 1,539 44,058 Class M................... 133 2,366 37 642 283 8,493 Class N................... 40 728 10 178 108 3,271 Class Y................... # 1 -- -- -- -- SMALL COMPANY FUND: Class A................... 6,686 83,361 6,044 84,554 -- -- Class B................... 1,061 12,844 1,036 14,391 -- -- Class C................... 1,185 14,298 1,226 17,129 -- -- Class Y................... 440 5,800 678 9,817 -- -- INTERNATIONAL CAPITAL APPRECIATION FUND: Class A................... 1,535 11,891 339 3,202 -- -- Class B................... 104 840 44 419 -- -- Class C................... 277 2,073 45 416 -- -- Class Y................... -- -- 30 300 -- -- CAPITAL APPRECIATION FUND: Class A................... 37,272 911,291 29,984 831,370 -- -- Class B................... 15,443 361,905 12,870 342,810 -- -- Class C................... 17,915 419,454 14,675 391,621 -- -- Class Y................... 915 22,058 693 20,259 -- -- SHARES ISSUED FOR REINVESTED DIVIDENDS ------------------------------------------------------ 2002 2001* 2001** --------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ -------- ------ ------- GLOBAL COMMUNICATIONS FUND: Class A................... -- $ -- -- $ -- -- $ -- Class B................... -- -- -- -- -- -- Class C................... -- -- -- -- -- -- Class Y................... -- -- -- -- -- -- GLOBAL FINANCIAL SERVICES FUND: Class A................... -- -- -- -- -- -- Class B................... -- -- -- -- -- -- Class C................... -- -- -- -- -- -- Class Y................... -- -- -- -- -- -- GLOBAL HEALTH FUND: Class A................... 154 2,030 138 1,883 -- -- Class B................... 64 840 59 802 -- -- Class C................... 69 897 81 1,097 -- -- Class Y................... 7 92 8 111 -- -- GLOBAL TECHNOLOGY FUND: Class A................... -- -- 40 327 -- -- Class B................... -- -- 18 149 -- -- Class C................... -- -- 25 206 -- -- Class Y................... -- -- 6 49 -- -- INTERNATIONAL SMALL COMPANY FUND: Class A................... -- -- -- -- -- -- Class B................... -- -- -- -- -- -- Class C................... -- -- -- -- -- -- Class Y................... -- -- -- -- -- -- SMALL CAP GROWTH FUND: Class A................... -- -- -- -- -- -- Class B................... -- -- -- -- -- -- Class C................... -- -- -- -- -- -- Class H................... 23 416 -- -- 381 11,412 Class L................... 103 2,032 -- -- 2,035 65,138 Class M................... 18 328 -- -- 300 8,981 Class N................... 6 116 -- -- 109 3,266 Class Y................... -- -- -- -- -- -- SMALL COMPANY FUND: Class A................... -- -- 302 5,252 -- -- Class B................... -- -- 133 2,239 -- -- Class C................... -- -- 150 2,525 -- -- Class Y................... -- -- 83 1,479 -- -- INTERNATIONAL CAPITAL APPRECIATION FUND: Class A................... -- -- -- -- -- -- Class B................... -- -- -- -- -- -- Class C................... -- -- -- -- -- -- Class Y................... -- -- -- -- -- -- CAPITAL APPRECIATION FUND: Class A................... -- -- 5,389 155,469 -- -- Class B................... -- -- 3,519 97,784 -- -- Class C................... -- -- 2,155 59,774 -- -- Class Y................... -- -- 360 10,666 -- --
* For the period ended October 31, 2001. See Statements of Changes in Net Assets for dates. ** For the year ended. See Statements of Changes in Net Assets for dates. # Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 150 - --------------------------------------------------------------------------------
SHARES ISSUED SHARES REDEEMED FROM MERGER ------------------------------------------------------------ ---------------- 2002 2001* 2001** 2002 ------------------- ------------------ ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- --------- ------ --------- ------ -------- ------ ------- (107) $ (376) (21) $ (106) -- $ -- (41) (128) (7) (39) -- -- (60) (218) (3) (17) -- -- -- -- # # -- -- (154) (1,390) (24) (236) -- -- (37) (315) (12) (124) -- -- (63) (529) (13) (125) -- -- (1) (8) -- -- -- -- (4,932) (61,196) (1,581) (21,041) -- -- (915) (10,740) (432) (5,626) -- -- (1,139) (13,533) (842) (10,863) -- -- (345) (4,828) (85) (1,108) -- -- (6,044) (25,765) (4,403) (24,249) -- -- (739) (2,751) (671) (3,593) -- -- (1,399) (5,115) (2,419) (14,713) -- -- (1,485) (8,253) (1,770) (10,123) -- -- (777) (7,309) (1) (9) -- -- (43) (386) # (4) -- -- (30) (247) (1) (10) -- -- (6) (61) # # -- -- (135) (2,250) -- -- -- -- (10) (176) -- -- -- -- (14) (194) -- -- -- -- (313) (5,571) (45) (794) (210) (5,654) (1,757) (34,722) (303) (5,576) (2,268) (62,610) (220) (3,773) (53) (897) (208) (5,380) (82) (1,470) (12) (207) (97) (2,605) -- -- -- -- -- -- (6,688) (81,570) (5,737) (79,060) -- -- (1,001) (11,001) (929) (12,351) -- -- (1,518) (16,980) (1,351) (18,293) -- -- (2,094) (27,145) (549) (7,833) -- -- (1,201) (9,277) -- (1) -- -- (28) (219) (1) (11) -- -- (199) (1,468) (3) (23) -- -- -- -- -- -- -- -- (19,951) (446,936) (9,075) (249,018) -- -- (7,947) (165,543) (4,091) (106,501) -- -- (8,820) (183,671) (3,305) (86,751) -- -- (2,801) (76,693) (607) (16,781) -- -- NET INCREASE (DECREASE) OF SHARES -------------------------------------------------------- 2002 2001* 2001** ----------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ ------- 199 $ 786 185 $ 1,176 -- $ -- 82 312 83 500 -- -- 38 190 93 530 -- -- 47 164 # # -- -- 150 1,494 362 3,676 -- -- 127 1,225 121 1,211 -- -- 101 1,001 121 1,227 -- -- 77 754 # # -- -- 1,571 24,768 4,110 55,526 -- -- 878 12,754 1,708 22,809 -- -- 513 8,274 1,385 18,649 -- -- (244) (3,491) 140 1,938 -- -- (32) 948 2,373 16,674 -- -- 33 398 961 6,402 -- -- (657) (1,969) 1,439 9,846 -- -- (969) (5,989) 603 4,232 -- -- 304 2,951 245 2,435 -- -- 80 774 31 312 -- -- 56 527 48 469 -- -- 85 766 30 300 -- -- 222 4,351 -- -- -- -- 122 2,107 -- -- -- -- 100 1,754 -- -- -- -- (141) (2,423) (16) (286) 440 13,619 (824) (15,851) (129) (2,390) 1,306 46,586 (69) (1,079) (16) (255) 375 12,094 (36) (626) (2) (29) 120 3,932 # 1 -- -- -- -- (2) 1,791 609 10,746 -- -- 60 1,843 240 4,279 -- -- (333) (2,682) 25 1,361 -- -- (1,654) (21,345) 212 3,463 -- -- 334 2,614 339 3,201 -- -- 76 621 43 408 -- -- 78 605 42 393 -- -- -- -- 30 300 -- -- 17,321 464,355 26,298 737,821 -- -- 7,496 196,362 12,298 334,093 -- -- 9,095 235,783 13,525 364,644 -- -- (1,886) (54,635) 446 14,144 -- --
151 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
SHARES SOLD -------------------------------------------------------- 2002 2001* 2001** ----------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ ------- GROWTH OPPORTUNITIES FUND: Class A.................. 289 $ 5,314 -- $ -- -- $ -- Class B.................. 69 1,159 -- -- -- -- Class C.................. 106 1,612 -- -- -- -- Class H.................. 316 5,424 71 1,228 576 14,842 Class L.................. 1,473 28,880 232 4,421 1,918 54,172 Class M.................. 214 3,662 63 1,077 401 10,727 Class N.................. 42 744 23 399 111 3,030 Class Y.................. # 1 -- -- -- -- Class Z.................. 59 1,299 38 794 504 15,064 MIDCAP FUND: Class A.................. 16,040 269,742 22,106 416,251 -- -- Class B.................. 4,128 67,559 9,094 167,086 -- -- Class C.................. 4,901 80,204 9,460 174,063 -- -- Class Y.................. 1,373 24,730 1,063 20,372 -- -- MIDCAP VALUE FUND: Class A.................. 10,353 102,514 3,273 30,590 -- -- Class B.................. 2,914 28,637 890 8,285 -- -- Class C.................. 3,687 35,966 1,085 10,065 -- -- Class Y.................. -- -- 31 309 -- -- VALUE OPPORTUNITIES FUND: Class A.................. 309 3,321 -- -- -- -- Class B.................. 63 650 -- -- -- -- Class C.................. 50 501 -- -- -- -- Class H.................. 71 773 15 173 187 2,555 Class L.................. 416 4,918 140 1,686 873 12,367 Class M.................. 177 1,988 33 396 262 3,599 Class N.................. 23 263 12 142 81 1,105 Class Y.................. # 1 -- -- -- -- INTERNATIONAL OPPORTUNITIES FUND: Class A.................. 71,750 672,351 33,604 359,927 -- -- Class B.................. 347 3,098 388 4,199 -- -- Class C.................. 6,014 49,239 5,943 61,413 -- -- Class Y.................. 1,255 12,179 334 3,717 -- -- GLOBAL LEADERS FUND: Class A.................. 38,303 476,139 25,136 375,876 -- -- Class B.................. 892 12,236 1,488 22,688 -- -- Class C.................. 1,533 19,049 4,585 70,000 -- -- Class Y.................. 575 7,234 175 2,683 -- -- SHARES ISSUED FOR REINVESTED DIVIDENDS ------------------------------------------------------ 2002 2001* 2001** --------------- ---------------- ----------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------- ------ -------- GROWTH OPPORTUNITIES FUND: Class A.................. -- $ -- -- $ -- -- $ -- Class B.................. -- -- -- -- -- -- Class C.................. -- -- -- -- -- -- Class H.................. 36 647 -- -- 747 19,753 Class L.................. 311 6,190 -- -- 7,400 215,126 Class M.................. 17 322 -- -- 346 9,134 Class N.................. 4 73 -- -- 85 2,236 Class Y.................. -- -- -- -- -- -- Class Z.................. 48 983 -- -- 1,394 41,595 MIDCAP FUND: Class A.................. -- -- 1,832 36,639 -- -- Class B.................. -- -- 818 16,000 -- -- Class C.................. -- -- 962 18,827 -- -- Class Y.................. -- -- 267 5,416 -- -- MIDCAP VALUE FUND: Class A.................. -- -- -- -- -- -- Class B.................. -- -- -- -- -- -- Class C.................. -- -- -- -- -- -- Class Y.................. -- -- -- -- -- -- VALUE OPPORTUNITIES FUND: Class A.................. -- -- -- -- -- -- Class B.................. -- -- -- -- -- -- Class C.................. -- -- -- -- -- -- Class H.................. 49 542 -- -- 63 821 Class L.................. 160 1,848 -- -- 270 3,610 Class M.................. 52 576 -- -- 55 715 Class N.................. 16 183 -- -- 19 252 Class Y.................. -- -- -- -- -- -- INTERNATIONAL OPPORTUNITIES FUND: Class A.................. -- -- 326 4,069 -- -- Class B.................. -- -- 100 1,214 -- -- Class C.................. -- -- 103 1,245 -- -- Class Y.................. -- -- 82 1,034 -- -- GLOBAL LEADERS FUND: Class A.................. -- -- 167 2,796 -- -- Class B.................. -- -- 49 815 -- -- Class C.................. -- -- 92 1,532 -- -- Class Y.................. -- -- 6 110 -- --
* For the period ended October 31, 2001. See Statements of Changes in Net Assets for dates. ** For the year ended. See Statements of Changes in Net Assets for dates. # Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 152 - --------------------------------------------------------------------------------
SHARES ISSUED SHARES REDEEMED FROM MERGER -------------------------------------------------------------- ---------------- 2002 2001* 2001** 2002 ------------------- ------------------- ------------------ ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- --------- ------- --------- ------ --------- ------ ------- (71) $ (1,171) -- $ -- -- $ -- (12) (187) -- -- -- -- (41) (596) -- -- -- -- (643) (10,605) (88) (1,502) (464) (11,547) (5,768) (107,309) (896) (16,907) (4,246) (112,671) (320) (5,191) (54) (918) (219) (5,300) (96) (1,657) (21) (344) (89) (2,061) -- -- -- -- -- -- (3,218) (70,413) (192) (3,781) (1,935) (52,524) (7,584) (127,936) (5,932) (107,540) -- -- (2,799) (45,504) (1,841) (31,719) -- -- (4,256) (69,945) (2,563) (44,873) -- -- (2,766) (48,769) (961) (17,505) -- -- (2,173) (19,494) (111) (991) -- -- (542) (4,912) (43) (402) -- -- (837) (7,287) (24) (210) -- -- -- -- (1) (9) -- -- (28) (267) -- -- -- -- (9) (93) -- -- -- -- (1) (5) -- -- -- -- (167) (1,740) (28) (329) (183) (2,516) (784) (8,539) (98) (1,151) (1,646) (22,715) (227) (2,338) (33) (387) (112) (1,516) (70) (747) (13) (143) (62) (854) -- -- -- -- -- -- (72,603) (685,079) (33,029) (355,435) -- -- 1,418 $12,538 (643) (5,676) (439) (4,671) -- -- 636 5,906 (6,399) (53,383) (6,109) (63,278) -- -- 77 711 (2,501) (25,586) (318) (3,573) -- -- -- -- (32,026) (410,391) (20,623) (305,275) -- -- 6,063 81,253 (1,468) (17,733) (894) (12,913) -- -- 2,012 26,325 (3,154) (38,398) (4,665) (69,590) -- -- 262 3,427 (644) (9,185) (138) (2,087) -- -- -- -- NET INCREASE (DECREASE) OF SHARES --------------------------------------------------------- 2002 2001* 2001** ----------------- ----------------- ----------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ -------- 218 $ 4,143 -- $ -- -- $ -- 57 972 -- -- -- -- 65 1,016 -- -- -- -- (291) (4,533) (17) (274) 859 23,048 (3,984) (72,239) (664) (12,486) 5,072 156,627 (89) (1,207) 9 159 528 14,561 (50) (840) 2 55 107 3,205 # 1 -- -- -- -- (3,111) (68,131) (154) (2,987) (37) 4,135 8,456 141,807 18,006 345,350 -- -- 1,329 22,055 8,071 151,367 -- -- 645 10,259 7,859 148,017 -- -- (1,393) (24,039) 369 8,283 -- -- 8,180 83,020 3,162 29,599 -- -- 2,372 23,725 847 7,883 -- -- 2,850 28,679 1,061 9,855 -- -- -- -- 30 300 -- -- 281 3,054 -- -- -- -- 54 557 -- -- -- -- 49 496 -- -- -- -- (47) (425) (13) (156) 67 860 (208) (1,773) 42 535 (503) (6,738) 2 226 -- 9 205 2,798 (31) (301) (1) (1) 38 503 # 1 -- -- -- -- 565 (190) 901 8,561 -- -- 340 3,328 49 742 -- -- (308) (3,433) (63) (620) -- -- (1,246) (13,407) 98 1,178 -- -- 12,340 147,001 4,680 73,397 -- -- 1,436 20,828 643 10,590 -- -- (1,359) (15,922) 12 1,942 -- -- (69) (1,951) 43 706 -- --
153 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
SHARES SOLD -------------------------------------------------------- 2002 2001* 2001** ----------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ ------- FOCUS FUND: Class A.................. 3,997 $ 37,194 7,949 $ 79,053 -- $ -- Class B.................. 1,013 9,398 2,151 21,382 -- -- Class C.................. 1,553 14,420 2,906 28,829 -- -- Class Y.................. 69 635 1 10 -- -- GROWTH FUND: Class A.................. 636 8,247 -- -- -- -- Class B.................. 171 1,973 -- -- -- -- Class C.................. 181 2,077 -- -- -- -- Class H.................. 239 3,107 44 570 456 7,698 Class L.................. 1,044 14,904 226 3,218 1,488 26,986 Class M.................. 285 3,657 74 951 430 7,202 Class N.................. 72 952 42 555 169 2,796 Class Y.................. # 1 -- -- -- -- STOCK FUND: Class A.................. 18,429 311,199 21,526 425,162 -- -- Class B.................. 4,217 68,344 6,355 121,477 -- -- Class C.................. 5,277 85,205 8,747 168,325 -- -- Class Y.................. 986 15,761 371 7,612 -- -- VALUE FUND: Class A.................. 3,339 30,840 1,553 14,963 -- -- Class B.................. 642 5,842 236 2,260 -- -- Class C.................. 1,019 9,226 538 5,213 -- -- Class Y.................. -- -- 30 300 -- -- GROWTH AND INCOME FUND: Class A.................. 8,981 91,439 10,818 127,580 -- -- Class B.................. 1,220 11,971 1,667 19,375 -- -- Class C.................. 1,280 12,720 2,225 25,910 -- -- Class Y.................. 41 425 7 80 -- -- DIVIDEND AND GROWTH FUND: Class A.................. 32,386 503,459 18,645 312,556 -- -- Class B.................. 5,997 92,473 3,796 62,961 -- -- Class C.................. 7,245 111,009 4,773 79,224 -- -- Class Y.................. 930 14,303 561 9,580 -- -- ADVISERS FUND: Class A.................. 30,212 425,382 30,346 469,143 -- -- Class B.................. 7,800 109,498 10,633 163,094 -- -- Class C.................. 8,933 126,642 12,611 195,340 -- -- Class Y.................. 313 4,432 468 7,323 -- -- HIGH YIELD FUND: Class A.................. 9,501 74,745 4,834 43,403 -- -- Class B.................. 2,251 17,344 1,524 13,745 -- -- Class C.................. 4,021 31,627 2,802 25,360 -- -- Class Y.................. 54 469 409 3,775 -- -- TOTAL RETURN BOND FUND: Class A.................. 41,344 440,630 27,871 295,865 -- -- Class B.................. 6,149 65,306 4,107 43,607 -- -- Class C.................. 8,311 88,545 5,988 63,725 -- -- Class Y.................. 2,085 22,377 1,417 15,203 -- -- SHARES ISSUED FOR REINVESTED DIVIDENDS ------------------------------------------------------ 2002 2001* 2001** ---------------- ---------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------- ------ ------- ------ ------- FOCUS FUND: Class A.................. -- $ -- -- $ -- -- $ -- Class B.................. -- -- -- -- -- -- Class C.................. -- -- -- -- -- -- Class Y.................. -- -- -- -- -- -- GROWTH FUND: Class A.................. -- -- -- -- -- -- Class B.................. -- -- -- -- -- -- Class C.................. -- -- -- -- -- -- Class H.................. 1 13 -- -- 497 8,253 Class L.................. 8 116 -- -- 4,393 79,249 Class M.................. # 10 -- -- 344 5,703 Class N.................. # 2 -- -- 97 1,603 Class Y.................. -- -- -- -- -- -- STOCK FUND: Class A.................. -- -- 2,209 48,577 -- -- Class B.................. -- -- 1,231 26,218 -- -- Class C.................. -- -- 1,075 22,875 -- -- Class Y.................. -- -- 64 1,437 -- -- VALUE FUND: Class A.................. 8 78 -- -- -- -- Class B.................. 1 11 -- -- -- -- Class C.................. 3 27 -- -- -- -- Class Y.................. # 2 -- -- -- -- GROWTH AND INCOME FUND: Class A.................. -- -- 591 7,543 -- -- Class B.................. -- -- 124 1,553 -- -- Class C.................. -- -- 191 2,395 -- -- Class Y.................. -- -- 1 18 -- -- DIVIDEND AND GROWTH FUND: Class A.................. 868 13,605 1,011 16,875 -- -- Class B.................. 159 2,503 323 5,362 -- -- Class C.................. 129 2,036 185 3,064 -- -- Class Y.................. 40 629 79 1,337 -- -- ADVISERS FUND: Class A.................. 1,488 20,243 3,325 52,440 -- -- Class B.................. 413 5,576 1,912 30,208 -- -- Class C.................. 328 4,445 1,317 20,957 -- -- Class Y.................. 25 377 242 3,861 -- -- HIGH YIELD FUND: Class A.................. 887 6,677 304 2,680 -- -- Class B.................. 270 2,020 83 728 -- -- Class C.................. 283 2,141 115 1,013 -- -- Class Y.................. 9 75 39 343 -- -- TOTAL RETURN BOND FUND: Class A.................. 741 7,890 300 3,175 -- -- Class B.................. 277 2,942 113 1,196 -- -- Class C.................. 289 3,072 119 1,257 -- -- Class Y.................. 191 2,051 178 1,894 -- --
* For the period ended October 31, 2001. See Statements of Changes in Net Assets for dates. ** For the year ended. See Statements of Changes in Net Assets for dates. # Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 154 - --------------------------------------------------------------------------------
SHARES ISSUED SHARES REDEEMED FROM MERGER ------------------------------------------------------------- ----------------- 2002 2001* 2001** 2002 ------------------- ------------------- ----------------- ----------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- --------- ------- --------- ------ -------- ------ -------- (2,518) $ (20,394) (355) $ (3,177) -- $ -- (518) (4,001) (44) (392) -- -- (732) (5,785) (158) (1,436) -- -- (1) (10) # # -- -- (134) (1,639) -- -- -- -- (14) (147) -- -- -- -- (44) (468) -- -- -- -- (735) (8,866) (84) (1,067) (559) (9,232) (5,098) (68,366) (718) (10,063) (4,096) (73,297) (460) (5,592) (68) (853) (335) (5,489) (201) (2,481) (58) (695) (209) (3,343) -- -- -- -- -- -- (15,369) (238,440) (8,304) (159,690) -- -- (6,336) (92,861) (4,124) (75,915) -- -- (7,933) (117,952) (5,049) (93,677) -- -- (135) (2,507) (222) (4,623) -- -- (916) (7,524) (31) (283) -- -- (173) (1,383) (10) (94) -- -- (340) (2,812) (7) (66) -- -- -- -- # # -- -- (6,736) (64,226) (2,733) (31,364) -- -- 1,945 $ 20,626 (1,387) (12,606) (584) (6,518) -- -- 1,206 12,446 (2,046) (18,897) (1,188) (13,253) -- -- 179 1,856 (6) (61) (2) (22) -- -- -- -- (7,280) (107,015) (2,669) (44,146) -- -- (2,118) (30,687) (1,082) (17,804) -- -- (2,749) (39,850) (936) (15,285) -- -- (1,567) (25,703) (214) (3,561) -- -- (19,331) (261,961) (10,324) (158,338) -- -- 10,210 149,372 (10,661) (140,899) (6,211) (93,724) -- -- 4,011 58,085 (9,892) (133,048) (5,987) (91,683) -- -- 721 10,535 (3,901) (59,007) (599) (9,222) -- -- -- -- (6,676) (51,831) (2,281) (20,549) -- -- 5,090 41,430 (1,863) (14,165) (476) (4,200) -- -- 3,935 31,948 (1,872) (14,323) (696) (6,186) -- -- 337 2,737 (561) (4,796) (275) (2,482) -- -- -- -- (33,367) (355,641) (20,616) (218,627) -- -- -- -- (2,452) (25,988) (1,259) (13,273) -- -- -- -- (4,332) (46,166) (2,061) (21,871) -- -- -- -- (2,587) (27,678) (594) (6,339) -- -- -- -- NET INCREASE (DECREASE) OF SHARES -------------------------------------------------------- 2002 2001* 2001** ----------------- ----------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------ -------- ------ ------- 1,479 $ 16,800 7,594 $ 75,876 -- $ -- 495 5,397 2,107 20,990 -- -- 821 8,635 2,748 27,393 -- -- 68 625 1 10 -- -- 502 6,608 -- -- -- -- 157 1,826 -- -- -- -- 137 1,609 -- -- -- -- (495) (5,746) (40) (497) 394 6,719 (4,046) (53,347) (492) (6,845) 1,785 32,938 (174) (1,925) 6 98 439 7,416 (130) (1,527) (16) (140) 57 1,056 -- 1 -- -- -- -- 3,060 72,759 15,431 314,049 -- -- (2,119) (24,517) 3,462 71,780 -- -- (2,656) (32,747) 4,773 97,523 -- -- 851 13,254 213 4,426 -- -- 2,431 23,394 1,522 14,680 -- -- 470 4,470 226 2,166 -- -- 682 6,440 531 5,147 -- -- # 2 30 300 -- -- 4,190 47,839 8,676 103,759 -- -- 1,039 11,811 1,207 14,410 -- -- (587) (4,321) 1,228 15,052 -- -- 35 364 6 76 -- -- 25,974 410,049 16,987 285,285 -- -- 4,038 64,289 3,037 50,519 -- -- 4,625 73,195 4,022 67,003 -- -- (597) (10,771) 426 7,356 -- -- 22,579 333,036 23,347 363,245 -- -- 1,563 32,260 6,334 99,578 -- -- 90 8,574 7,941 124,614 -- -- (3,563) (54,198) 111 1,962 -- -- 8,802 71,021 2,857 25,534 -- -- 4,593 37,147 1,131 10,273 -- -- 2,769 22,182 2,221 20,187 -- -- (498) (4,252) 173 1,636 -- -- 8,718 92,879 7,555 80,413 -- -- 3,974 42,260 2,961 31,530 -- -- 4,268 45,451 4,046 43,111 -- -- (311) (3,250) 1,001 10,758 -- --
155 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - --------------------------------------------------------------------------------
SHARES SOLD -------------------------------------------------------------- 2002 2001* 2001** ---------------------- ------------------ ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ---------- ------- -------- ------ ------- TAX-FREE MINNESOTA FUND: Class A................ 208 $ 2,183 -- $ -- -- $ -- Class B................ 25 258 -- -- -- -- Class C................ 29 303 -- -- -- -- Class E................ 69 717 4 35 76 787 Class H................ -- -- # # # 6 Class L................ 22 219 8 83 41 408 Class M................ 3 34 5 55 13 130 Class N................ 2 26 # 1 1 15 Class Y................ # 1 -- -- -- -- TAX-FREE NATIONAL FUND: Class A................ 1,189 13,321 -- -- -- -- Class B................ 380 4,241 -- -- -- -- Class C................ 312 3,487 -- -- -- -- Class E................ 64 708 4 40 90 987 Class H................ 16 182 1 11 32 333 Class L................ 57 625 17 189 166 1,813 Class M................ 19 209 # # 13 139 Class N................ 18 199 6 63 20 214 Class Y................ # 1 -- -- -- -- U.S. GOVERNMENT SECURITIES FUND: Class A................ 9,877 96,314 -- -- -- -- Class B................ 4,502 43,685 -- -- -- -- Class C................ 5,728 55,648 -- -- -- -- Class E................ 562 5,375 357 3,383 1,047 9,587 Class H................ 156 1,495 104 982 334 3,047 Class L................ 3,304 31,232 1,218 11,595 2,143 19,798 Class M................ 183 1,737 128 1,216 228 2,097 Class N................ 33 315 74 702 515 4,763 Class Y................ # 1 -- -- -- -- MONEY MARKET FUND: Class A................ 1,017,129 1,017,129 619,935 619,935 -- -- Class B................ 109,766 109,766 66,940 66,940 -- -- Class C................ 113,576 113,576 162,817 162,817 -- -- Class Y................ 12,352 12,352 40,769 40,769 -- -- SHARES ISSUED FOR REINVESTED DIVIDENDS --------------------------------------------------- 2002 2001* 2001** --------------- --------------- --------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ ------ ------ TAX-FREE MINNESOTA FUND: Class A................ 2 $ 16 -- $ -- -- $ -- Class B................ -- 1 -- -- -- -- Class C................ -- 2 -- -- -- -- Class E................ 76 792 8 79 106 1,080 Class H................ 2 19 # 3 4 39 Class L................ 9 94 1 9 12 125 Class M................ 1 12 # 2 3 32 Class N................ -- 3 # # # 5 Class Y................ -- -- -- -- -- -- TAX-FREE NATIONAL FUND: Class A................ 8 93 -- -- -- -- Class B................ 2 24 -- -- -- -- Class C................ 1 19 -- -- -- -- Class E................ 102 1,125 9 102 122 1,323 Class H................ 7 79 1 8 10 106 Class L................ 21 227 2 21 22 244 Class M................ 4 48 # 4 5 53 Class N................ 2 18 # 1 1 12 Class Y................ -- -- -- -- -- -- U.S. GOVERNMENT SECURITIES FUND: Class A................ 61 597 -- -- -- -- Class B................ 25 245 -- -- -- -- Class C................ 20 199 -- -- -- -- Class E................ 531 5,069 191 1,823 896 8,235 Class H................ 29 271 10 90 40 365 Class L................ 170 1,622 52 492 228 2,104 Class M................ 19 184 6 54 23 206 Class N................ 6 62 2 18 8 76 Class Y................ -- -- -- -- -- -- MONEY MARKET FUND: Class A................ 2,029 2,029 1,936 1,936 -- -- Class B................ 204 204 699 699 -- -- Class C................ 202 202 904 904 -- -- Class Y................ 123 123 964 964 -- --
* For the period ended October 31, 2001. See Statements of Changes in Net Assets for dates. ** For the year ended. See Statements of Changes in Net Assets for dates. # Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero. 156 - --------------------------------------------------------------------------------
SHARES ISSUED SHARES REDEEMED FROM MERGER --------------------------------------------------------------- ------------------ 2002 2001* 2001** 2002 -------------------- -------------------- ----------------- ------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- --------- ------ -------- ------- -------- (12) $ (124) -- $ -- -- $ -- (2) (21) -- -- -- -- -- -- -- -- -- -- (274) (2,834) (16) (163) (403) (4,125) (52) (536) (1) (6) (8) (80) (52) (537) (15) (154) (57) (574) (25) (258) (8) (82) (23) (234) (2) (30) # # (8) (84) -- -- -- -- -- -- (116) (1,304) -- -- -- -- (46) (515) -- -- -- -- (35) (396) -- -- -- -- (465) (5,124) (42) (470) (398) (4,331) (185) (2,029) (22) (242) (80) (862) (143) (1,565) (14) (155) (94) (1,024) (40) (445) # # (10) (113) (14) (161) # # (6) (64) -- -- -- -- -- -- (2,321) (22,790) -- -- -- -- (535) (5,225) -- -- -- -- (1,610) (15,728) -- -- -- -- (4,688) (44,397) (583) (5,524) (3,331) (30,518) (354) (3,383) (75) (712) (240) (2,199) (3,941) (37,337) (935) (8,909) (2,195) (20,236) (207) (1,976) (17) (160) (168) (1,543) (101) (961) (11) (107) (534) (4,931) -- -- -- -- -- -- (997,122) (997,122) (579,020) (579,020) -- -- 194,078 $194,078 (65,167) (65,167) (33,615) (33,615) -- -- 5,247 5,247 (102,381) (102,381) (116,690) (116,690) -- -- 624 624 (42,969) (42,969) (26,749) (26,749) -- -- -- -- NET INCREASE (DECREASE) OF SHARES --------------------------------------------------------- 2002 2001* 2001** ------------------ ---------------- ----------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------- -------- ------ ------- ------ -------- 198 $ 2,075 -- $ -- -- $ -- 23 238 -- -- -- -- 29 305 -- -- -- -- (129) (1,325) (4) (49) (221) (2,258) (50) (517) (1) (3) (4) (35) (21) (224) (6) (62) (4) (41) (21) (212) (3) (25) (7) (72) # (1) -- 1 (7) (64) # 1 -- -- -- -- 1,081 12,110 -- -- -- -- 336 3,750 -- -- -- -- 278 3,110 -- -- -- -- (299) (3,291) (29) (328) (186) (2,021) (162) (1,768) (20) (223) (38) (423) (65) (713) 5 55 94 1,033 (17) (188) # 4 8 79 6 56 6 64 15 162 # 1 -- -- -- -- 7,617 74,121 -- -- -- -- 3,992 38,705 -- -- -- -- 4,138 40,119 -- -- -- -- (3,595) (33,953) (35) (318) (1,388) (12,696) (169) (1,617) 39 360 134 1,213 (467) (4,483) 335 3,178 176 1,666 (5) (55) 117 1,110 83 760 (62) (584) 65 613 (11) (92) # 1 -- -- -- -- 216,114 216,114 42,851 42,851 -- -- 50,050 50,050 34,024 34,024 -- -- 12,021 12,021 47,031 47,031 -- -- (30,494) (30,494) 14,984 14,984 -- --
157 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- 7. RECLASSIFICATION OF CAPITAL ACCOUNTS: In accordance with American Institute of Certified Public Accountants Statement of Position 93-2, Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies, the Funds have recorded several reclassifications in their capital accounts. These reclassifications had no impact on the net asset value of the Funds and are designed generally to present accumulated undistributed (distribution in excess of) net investment income and realized gain on investments on a tax basis which is considered to be more informative to the shareholder. The reclassifications are a result of permanent differences between GAAP and tax accounting for such items as foreign currency and passive foreign investment company (PFIC) income classifications, and net operating losses that reduce capital gain distribution requirements. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds' distributions may be shown in the accompanying Statement of Changes in Net Assets as from net investment income, from net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended October 31, 2002, the Funds recorded the following reclassifications to increase (decrease) the accounts listed below.
ACCUMULATED NET UNDISTRIBUTED NET REALIZED GAIN INVESTMENT INCOME (LOSS) PAID-IN-CAPITAL ----------------- --------------- --------------- Global Communications Fund.......................... $ 15 $ (3) $ (12) Global Financial Services Fund...................... 5 -- (5) Global Health Fund.................................. 2,203 (2,203) -- Global Technology Fund.............................. 931 925 (1,856) International Small Company Fund.................... (1) 1 -- SmallCap Growth Fund................................ 2,034 7 (2,041) Small Company Fund.................................. 3,040 (1,955) (1,085) International Capital Appreciation Fund............. (4) 4 -- Capital Appreciation Fund........................... 20,549 17,163 (37,712) Growth Opportunities Fund........................... 5,091 47 (5,138) MidCap Fund......................................... 12,183 (3,125) (9,058) MidCap Value Fund................................... 625 3 (628) Value Opportunities Fund............................ 181 9 (190) International Opportunities Fund.................... (16) 655 (639) Global Leaders Fund................................. 54 279 (333) Focus Fund.......................................... 1,063 -- (1,063) Growth Fund......................................... 1,674 11 (1,685) Stock Fund.......................................... 5,809 -- (5,809) Value Fund.......................................... (26) 18 8 Growth and Income Fund.............................. 1,067 -- (1,067) Dividend and Growth................................. (460) 314 146 Advisers Fund....................................... (226) 226 -- High Yield Fund..................................... 138 31,415 (31,553) Total Return Bond Fund.............................. 1,562 (1,562) -- U.S. Government Securities.......................... (227) 25,621 (25,394)
During the year ended October 31, 2002, the Global Technology Fund, the International Opportunities Fund, the Small Company Fund and the MidCap Fund realized ($925), ($547), $2,151 and $3,125, respectively, of net capital gain (loss) resulting form in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Fund rather than for cash. Any gains/losses resulting from the transactions are not taxable to the Fund and are not distributed to shareholders. These gains/losses have been reclassified from accumulated net realized gains/losses to paid in capital. 158 - -------------------------------------------------------------------------------- 8. CAPITAL LOSS CARRYFORWARDS: As of October 31, 2002 (tax year-end), the following Funds had capital loss carryforwards for U.S. federal income tax purposes as follows:
YEAR OF FUND AMOUNT EXPIRATION ---- -------- ---------- Global Communications Fund.................................. $ 6,987 2009-2010 Global Financial Services Fund.............................. 1,944 2009-2010 Global Technology Fund...................................... 70,335 2009-2010 International Small Company Fund............................ 405 2009-2010 SmallCap Growth Fund........................................ 80,758 2009-2010 Small Company Fund.......................................... 132,354 2009-2010 International Capital Appreciation Fund..................... 1,800 2009-2010 Capital Appreciation Fund................................... 689,670 2009-2010 Growth Opportunities Fund................................... 217,809 2009 MidCap Fund................................................. 130,031 2009-2010 MidCap Value Fund........................................... 2,174 2009-2010 Value Opportunities Fund.................................... 8,600 2009-2010 International Opportunities Fund............................ 55,536 2009-2010 Global Leaders Fund......................................... 222,836 2009-2010 Focus Fund.................................................. 15,785 2009-2010 Growth Fund................................................. 80,330 2009-2010 Stock Fund.................................................. 374,519 2009-2010 Value Fund.................................................. 4,067 2010 Growth and Income Fund...................................... 102,989 2009-2010 Dividend and Growth Fund.................................... 7,376 2010 Advisers Fund............................................... 245,429 2009-2010 High Yield Fund............................................. 44,910 2007-2010 U.S. Government Securities Fund............................. 28,421 2003-2008
In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carry forwards (acquired via merger) is limited on an annual basis in the amounts as follows:
ANNUAL ACQUIRING FUND LIMITATION -------------- ---------- International Opportunities Fund............................ $ 960 High Yield Fund............................................. 3,813
9. LINE OF CREDIT: The Funds participate in a $550,000 committed revolving line of credit facility. The credit 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 credit facility also requires a fee to be paid based on the amount of the commitment, which has not been utilized. As of October 31, 2002, the Funds did not have any borrowings under this credit facility. Under a separate credit facility that terminated on March 31, 2002, there was one borrowing. The Growth Opportunities Fund utilized the credit facility during the year ended October 31, 2002. Growth Opportunities Fund borrowed $25,000 for a 5 day period at a cost of $8. 159 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) OCTOBER 31, 2002 (000'S OMITTED) - -------------------------------------------------------------------------------- 10. HARTFORD LIFE ACQUISITION: On April 2, 2001, Hartford Life and Accident Insurance Company ("Hartford Life") acquired Fortis Advisers, Inc. ("Fortis Advisers") and its subsidiaries, including Fortis Investors, Inc. ("Fortis Investors"). Hartford Life is a subsidiary of The Hartford Financial Services Group ("The Hartford"), a publicly held company. Prior to the acquisition, Fortis Advisers served as investment adviser for the Fortis Funds and Fortis Investors served as the principal underwriter to the funds. Hartford Investment Financial Services Company (HIFSCO), a wholly owned indirect subsidiary of The Hartford, became the investment adviser to the Fortis Funds. Hartford Administrative Services Company, formerly Fortis Advisers, became transfer agent and dividend agent to the Fortis Funds. HIFSCO became the principal underwriter to the Fortis Funds. Maryland Redomestication: On November 30, 2001, SmallCap Growth Fund, Growth Opportunities Fund, Value Opportunities Fund, Growth Fund, U.S. Government Securities Fund, Tax-Free Minnesota Fund and Tax-Free National Fund were redomesticated as a series of a New Maryland Corporation, The Hartford Mutual Fund II, Inc., formerly Hartford-Fortis Series Fund, Inc. 11. FUND MERGERS: Effective with the close of business on February 15, 2002, shareholders approved the following fund mergers: Fortis Growth & Income Fund merged into The Hartford Growth and Income Fund Fortis Asset Allocation Portfolio merged into The Hartford Advisers Fund Fortis High Yield Fund merged into The Hartford High Yield Fund Fortis Money Fund merged into The Hartford Money Market Fund Fortis Global Growth Portfolio merged into The Hartford Global Leaders Fund Fortis International Equity Portfolio merged into The Hartford International Opportunities Fund Fortis Classes A and Z were merged into Hartford Class A; Fortis Classes B and H were merged into Hartford Class B; and Fortis Class C was merged into Hartford Class C. For each merger the acquiring fund was the accounting survivor. The mergers were accomplished by tax free exchanges as detailed below:
GROWTH AND INCOME FUND CLASS A CLASS B CLASS C CLASS Y ---------------------- -------- ------- ------- ------- Net assets of Fortis Growth & Income on February 15, 2002..................................................... $ 20,626 $12,446 $ 1,856 Fortis Growth & Income shares exchanged.................... 1,696 1,043 155 Hartford Growth and Income shares issued................... 1,945 1,206 179 Net assets of Hartford Growth & Income immediately before the merger............................................... $267,115 $46,629 $63,400 $528 Combined net assets........................................ $287,731 $59,072 $65,250 $528
ADVISERS FUND CLASS A/Z CLASS B/H CLASS C CLASS Y ------------- ---------- --------- -------- ------- Net assets of Fortis Asset Allocation on February 15, 2002................................................. $ 149,372 $ 58,085 $ 10,535 Fortis Asset Allocation shares exchanged............... 10,445 4,097 747 Hartford Advisers shares issued........................ 10,210 4,011 721 Net assets of Hartford Advisers immediately before the merger............................................... $1,193,698 $654,672 $508,986 $1,445 Combined net assets.................................... $1,343,097 $712,761 $519,523 $1,445
HIGH YIELD FUND CLASS A CLASS B CLASS C CLASS Y --------------- ---------- --------- -------- ------- Net assets of Fortis High Yield on February 15, 2002... $ 41,430 $ 31,948 $ 2,737 Fortis High Yield shares exchanged..................... 8,797 6,779 581 Hartford High Yield shares issued...................... 5,090 3,935 337 Net assets of Hartford High Yield immediately before the merger........................................... $ 56,119 $ 18,466 $ 33,142 $ 1 Combined net assets.................................... $ 97,574 $ 50,435 $ 35,887 $ 1
160 - --------------------------------------------------------------------------------
MONEY MARKET FUND CLASS A CLASS B/H CLASS C CLASS Y ----------------- ---------- --------- -------- ------- Net assets of Fortis Money Fund on February 15, 2002... $ 194,078 $ 5,247 $ 624 Fortis Money Fund shares exchanged..................... 194,078 5,247 624 Hartford Money Market shares issued.................... 194,078 5,247 624 Net assets of Hartford Money Market immediately before the merger........................................... $ 93,806 $ 44,287 $ 50,627 $ 804 Combined net assets.................................... $ 287,883 $ 49,534 $ 51,252 $ 804
GLOBAL LEADERS FUND CLASS A CLASS B CLASS C CLASS Y ------------------- ---------- --------- -------- ------- Net assets of Fortis Global Growth Fund on February 15, 2002................................................. $ 81,253 $ 26,325 $ 3,427 Fortis Global Growth Fund shares exchanged............. 4,773 1,659 215 Hartford Global Leaders shares issued.................. 6,063 2,012 262 Net assets of Hartford Global Leaders immediately before the merger.................................... $ 261,919 $ 65,618 $104,332 $ 1 Combined net assets.................................... $ 343,672 $ 91,938 $107,753 $ 1
INTERNATIONAL OPPORTUNITIES FUND CLASS A CLASS B CLASS C CLASS Y -------------------------------- ---------- --------- -------- ------- Net assets of Fortis International Equity on February 15, 2002............................................. $ 12,538 $ 5,906 $ 711 Fortis International Equity shares exchanged........... 912 439 53 Hartford International Opportunities shares issued..... 1,418 636 77 Net assets of Hartford International Opportunities immediately before the merger........................ $ 77,338 $ 18,688 $ 17,707 $5,426 Combined net assets.................................... $ 90,952 $ 24,593 $ 18,416 $5,501
The Fortis Growth & Income Fund, Fortis Asset Allocation Portfolio, Fortis High Yield Fund, Fortis Money Fund, Fortis Global Growth Portfolio and Fortis International Equity Portfolio had unrealized appreciation (depreciation), accumulated net realized gains (losses) and capital stock as follows:
UNREALIZED ACCUMULATED NET APPRECIATION REALIZED GAINS FUND (DEPRECATION) (LOSSES) CAPITAL STOCK ---- ------------- --------------- ------------- Fortis Growth & Income Fund.............................. $ (670) $ (1,119) $ 36,717 Fortis Asset Allocation Fund............................. (8,150) (2,713) 228,855 Fortis High Yield Fund................................... (25,192) (60,942) 162,249 Fortis Money Fund........................................ -- -- 199,949 Fortis Global Growth Fund................................ 3,855 (616) 107,766 Fortis International Equity Fund......................... (570) (7,152) 26,877
NOTE 12. CHANGE OF AUDITORS (UNAUDITED) On April 30, 2002 and August 1, 2002, the Board of Directors dismissed Arthur Andersen LLP and KPMG LLP as the Funds' independent auditors, and appointed Ernst & Young LLP for the fiscal year ending October 31, 2002. During the two most recent fiscal years, the audit reports of Arthur Andersen LLP and KPMG LLP contained no adverse opinion or disclaimer of opinion; nor were the reports qualified or modified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements with Arthur Andersen LLP or KPMG LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Arthur Andersen LLP or KPMG LLP would have caused them to make reference to the subject matter of the disagreements in connection with their reports on the financial statements for such years, and there were no "reportable events" of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended. 161 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GLOBAL COMMUNICATIONS FUND For the Year Ended October 31, 2002(g) Class A.................................... $ 4.57 $ -- $(1.33) $ -- $ -- $ -- Class B.................................... 4.54 (0.04) (1.31) -- -- -- Class C.................................... 4.54 (0.04) (1.31) -- -- -- Class Y.................................... 4.60 -- (1.34) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 10.00 (0.02) (5.41) -- -- -- Class B.................................... 10.00 (0.05) (5.41) -- -- -- Class C.................................... 10.00 (0.05) (5.41) -- -- -- Class Y.................................... 10.00 -- (5.40) -- -- -- THE HARTFORD GLOBAL FINANCIAL SERVICES FUND For the Year Ended October 31, 2002(g) Class A.................................... 9.37 0.04 (1.38) -- -- -- Class B.................................... 9.30 (0.02) (1.36) -- -- -- Class C.................................... 9.30 (0.02) (1.36) -- -- -- Class Y.................................... 9.41 0.08 (1.39) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 10.00 0.02 (0.65) -- -- -- Class B.................................... 10.00 (0.03) (0.67) -- -- -- Class C.................................... 10.00 (0.03) (0.67) -- -- -- Class Y.................................... 10.00 0.07 (0.66) -- -- -- THE HARTFORD GLOBAL HEALTH FUND For the Year Ended October 31, 2002(g) Class A.................................... 13.47 (0.09) (1.68) -- (0.28) -- Class B.................................... 13.31 (0.18) (1.65) -- (0.28) -- Class C.................................... 13.32 (0.18) (1.65) -- (0.28) -- Class Y.................................... 13.58 (0.02) (1.67) -- (0.28) -- For the Year Ended October 31, 2001 Class A.................................... 13.86 (0.06) 0.23 -- (0.56) -- Class B.................................... 13.81 (0.12) 0.18 -- (0.56) -- Class C.................................... 13.81 (0.13) 0.20 -- (0.56) -- Class Y.................................... 13.89 (0.01) 0.26 -- (0.56) -- From inception May 1, 2000, through October 31, 2000 Class A.................................... 10.00 (0.01) 3.87 -- -- -- Class B.................................... 10.00 (0.04) 3.85 -- -- -- Class C.................................... 10.00 (0.04) 3.85 -- -- -- Class Y.................................... 10.00 0.01 3.88 -- -- -- THE HARTFORD GLOBAL TECHNOLOGY FUND For the Year Ended October 31, 2002(g) Class A.................................... 4.01 (.12) (.91) -- -- -- Class B.................................... 3.96 (0.18) (0.86) -- -- -- Class C.................................... 3.97 (0.19) (0.86) -- -- -- Class Y.................................... 4.04 (0.14) (0.89) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 8.72 (0.08) (4.55) -- (0.08) -- Class B.................................... 8.68 (0.11) (4.53) -- (0.08) -- Class C.................................... 8.68 (0.11) (4.52) -- (0.08) -- Class Y.................................... 8.73 (0.04) (4.57) -- (0.08) -- From inception May 1, 2000, through October 31, 2000 Class A.................................... 10.00 (0.05) (1.23) -- -- -- Class B.................................... 10.00 (0.07) (1.25) -- -- -- Class C.................................... 10.00 (0.06) (1.26) -- -- -- Class Y.................................... 10.00 (0.02) (1.25) -- -- --
- --------------- (a) Information presented relates to a share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 162 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 3.24 (29.10)% $ 3,506 2.03% 1.65% (0.10)% 84% 3.19 (29.74) 846 2.70 2.35 (0.80) -- 3.19 (29.74) 736 2.57 2.35 (0.78) -- 3.26 (29.13) 481 1.27 1.20 0.40 -- 4.57 (54.30) 4,050 1.73 1.66 (0.42) 84 4.54 (54.60) 832 2.46 2.36 (1.12) -- 4.54 (54.60) 875 2.44 2.36 (1.12) -- 4.60 (54.00) 460 1.20 1.20 0.03 -- 8.03 (14.30) 9,739 1.98 1.65 0.51 76 7.92 (14.84) 2,755 2.68 2.35 (0.20) -- 7.92 (14.84) 2,548 2.54 2.35 (0.20) -- 8.10 (13.92) 1,435 1.25 1.20 0.96 -- 9.37 (6.30) 9,946 1.89 1.70 0.25 115 9.30 (7.00) 2,052 2.61 2.40 (0.45) -- 9.30 (7.00) 2,053 2.60 2.40 (0.45) -- 9.41 (5.90) 941 1.35 1.24 0.70 -- 11.42 (13.43) 101,881 1.79 1.65 (0.70) 63 11.20 (14.05) 45,659 2.48 2.35 (1.40) -- 11.21 (14.08) 43,042 2.35 2.35 (1.40) -- 11.61 (12.68) 881 1.17 1.17 (0.22) -- 13.47 1.18 98,971 1.67 1.62 (0.61) 58 13.31 0.36 42,578 2.36 2.35 (1.33) -- 13.32 0.43 44,306 2.33 2.33 (1.31) -- 13.58 1.78 4,340 1.12 1.12 (0.11) -- 13.86 38.74(d) 44,917 1.72(b) 1.65(b) (0.33)(b) 92 13.81 38.24(d) 20,574 2.43(b) 2.35(b) (1.03)(b) -- 13.81 38.24(d) 26,830 2.40(b) 2.35(b) (1.03)(b) -- 13.89 39.04(d) 2,507 1.20(b) 1.20(b) 0.12(b) -- 2.98 (25.69) 18,321 1.86 1.65 (1.44) 174 2.92 (26.26) 8,170 2.54 2.35 (2.14) -- 2.92 (26.45) 9,560 2.39 2.35 (2.15) -- 3.01 (25.50) 512 1.15 1.15 (0.97) -- 4.01 (53.56) 24,824 1.71 1.66 (1.24) 253 3.96 (53.93) 10,962 2.43 2.36 (1.94) -- 3.97 (53.81) 15,581 2.37 2.36 (1.94) -- 4.04 (53.27) 4,602 1.13 1.13 (0.71) -- 8.72 (14.26)(d) 33,221 1.77(b) 1.66(b) (1.37)(b) 104 8.68 (14.65)(d) 15,676 2.46(b) 2.35(b) (2.07)(b) -- 8.68 (14.65)(d) 21,615 2.43(b) 2.35(b) (2.07)(b) -- 8.73 (14.16)(d) 4,677 1.32(b) 1.20(b) (0.92)(b) --
163 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD INTERNATIONAL SMALL COMPANY FUND For the Year Ended October 31, 2002(g) Class A.................................... $ 8.82 $ 0.03 $ (0.48) $ -- $ -- $ -- Class B.................................... 8.81 (.02) (.45) -- -- -- Class C.................................... 8.78 (0.03) (0.47) -- -- -- Class Y.................................... 8.84 .09 (.50) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A.................................... 10.00 0.04 (1.22) -- -- -- Class B.................................... 10.00 -- (1.19) -- -- -- Class C.................................... 10.00 0.01 (1.23) -- -- -- Class Y.................................... 10.00 0.06 (1.22) -- -- -- THE HARTFORD SMALLCAP GROWTH FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... 20.21 (.06) (4.58) -- -- -- Class B.................................... 18.73 (.08) (4.29) -- -- -- Class C.................................... 18.73 (.09) (4.29) -- -- -- Class Y.................................... 20.21 (.08) (4.52) -- -- -- For the Year Ended October 31, 2002 Class H.................................... 17.71 (.36) (2.65) -- (0.33) -- Class L.................................... 19.04 (0.20) (2.95) -- (0.33) -- Class M.................................... 17.70 (.33) (2.68) -- (0.33) -- Class N.................................... 17.71 (.34) (2.67) -- (0.33) -- For the Two-Month Period Ended October 31, 2001 Class H.................................... 19.77 (0.04) (2.02) -- -- -- Class L.................................... 21.24 (0.03) (2.17) -- -- -- Class M.................................... 19.76 (0.04) (2.02) -- -- -- Class N.................................... 19.77 (0.04) (2.02) -- -- -- For the Year Ended August 31, 2001 Class H.................................... 57.72 (0.72) (24.24) -- (12.99) -- Class L.................................... 60.44 (0.17) (26.04) -- (12.99) -- Class M.................................... 57.66 (0.68) (24.23) -- (12.99) -- Class N.................................... 57.71 (0.71) (24.24) -- (12.99) -- For the Year Ended August 31, 2000 Class H.................................... 34.94 (0.47) 33.83 -- (10.58) -- Class L.................................... 36.04 (0.44) 35.42 -- (10.58) -- Class M.................................... 34.91 (0.47) 33.80 -- (10.58) -- Class N.................................... 34.94 (0.47) 33.82 -- (10.58) -- For the Year Ended August 31, 1999 Class H.................................... 25.92 (0.90) 18.42 -- (8.50) -- Class L.................................... 26.42 (0.30) 18.42 -- (8.50) -- Class M.................................... 25.90 (0.91) 18.42 -- (8.50) -- Class N.................................... 25.92 (0.90) 18.42 -- (8.50) -- For the Year Ended August 31, 1998 Class H.................................... 30.18 (0.43) (3.83) -- -- -- Class L.................................... 30.60 (0.35) (3.83) -- -- -- Class M.................................... 30.16 (0.43) (3.83) -- -- -- Class N.................................... 30.18 (0.43) (3.83) -- -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 164 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 8.37 (5.10)% $ 4,598 3.09% 1.65% 0.44% 194% 8.34 (5.34) 926 3.81 2.35 (0.26) -- 8.28 (5.70) 859 3.53 2.35 (0.26) -- 8.43 (4.64) 969 1.91 1.20 0.89 -- 8.82 (11.80)(d) 2,156 3.46(b) 1.65(b) 0.86(b) 128 8.81 (11.90)(d) 275 4.12(b) 2.35(b) 0.16(b) -- 8.78 (12.20)(d) 425 4.12(b) 2.35(b) 0.16(b) -- 8.84 (11.60)(d) 265 2.92(b) 1.20(b) 1.31(b) -- 15.57 (22.97)(d) 3,457 1.82(b) 1.45(b) (0.93)(b) 93 14.36 (23.31)(d) 1,756 2.52(b) 2.15(b) (1.60)(b) -- 14.35 (23.37)(d) 1,432 2.38(b) 2.15(b) (1.60)(b) -- 15.61 (22.77)(d) 1 1.06(b) 1.00(b) (0.60)(b) -- 14.37 (17.41) 16,675 2.05 2.05 (1.65) 93 15.56 (16.92) 86,414 1.50 1.45 (1.06) -- 14.36 (17.42) 13,714 2.05 2.05 (1.65) -- 14.37 (17.41) 4,757 2.05 2.05 (1.65) -- 17.71 (10.42)(d) 23,059 2.05(b) 2.05(b) (1.57)(b) 17 19.04 (10.36)(d) 121,440 1.50(b) 1.50(b) (1.02)(b) -- 17.70 (10.43)(d) 18,115 2.05(b) 2.05(b) (1.57)(b) -- 17.71 (10.42)(d) 6,495 2.05(b) 2.05(b) (1.57)(b) -- 19.77 (50.88) 26,051 1.94 1.94 (1.12) 151 21.24 (50.60) 138,175 1.39 1.39 (0.57) -- 19.76 (50.84) 20,522 1.94 1.94 (1.12) -- 19.77 (50.87) 7,278 1.94 1.94 (1.12) -- 57.72 114.64 50,558 1.90 1.90 (1.49) 212 60.44 115.84 314,326 1.35 1.35 (0.94) -- 57.66 114.66 38,246 1.90 1.90 (1.49) -- 57.71 114.60 14,300 1.90 1.90 (1.49) -- 34.94 79.33 20,755 2.05 2.05 (1.63) 271 36.04 80.27 147,346 1.50 1.50 (1.08) -- 34.91 79.35 11,426 2.05 2.05 (1.63) -- 34.94 79.33 3,612 2.05 2.05 (1.63) -- 25.92 (14.12) 11,933 2.07 2.07 (1.52) 47 26.42 (13.66) 79,813 1.52 1.52 (0.97) -- 25.90 (14.12) 5,849 2.07 2.07 (1.52) -- 25.92 (14.12) 1,794 2.07 2.07 (1.52) --
165 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD SMALL COMPANY FUND For the Year Ended October 31, 2002(g) Class A.................................... $12.00 $(0.12) $(1.95) $ -- $ -- $ -- Class B.................................... 11.52 (0.20) (1.86) -- -- -- Class C.................................... 11.53 (.20) (1.86) -- -- -- Class Y.................................... 12.35 (.06) (2.02) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 18.08 (0.08) (5.41) -- (0.59) -- Class B.................................... 17.49 (0.16) (5.22) -- (0.59) -- Class C.................................... 17.51 (0.19) (5.20) -- (0.59) -- Class Y.................................... 18.50 (0.02) (5.54) -- (0.59) -- For the Ten Months Ended October 31, 2000 Class A.................................... 20.48 (0.04) (1.47) -- (0.89) -- Class B.................................... 19.96 (0.11) (1.47) -- (0.89) -- Class C.................................... 19.97 (0.12) (1.45) -- (0.89) -- Class Y.................................... 20.84 (0.02) (1.43) -- (0.89) -- For the Year Ended December 31, 1999 Class A.................................... 13.31 (0.05) 8.52 -- (1.30) -- Class B.................................... 13.09 (0.09) 8.26 -- (1.30) -- Class C.................................... 13.09(f) (0.08)(f) 8.26(f) -- (1.30)(f) -- Class Y.................................... 13.47 (0.03) 8.70 -- (1.30) -- For the Year Ended December 31, 1998 Class A.................................... 12.16 (0.06) 1.33 -- (0.12) -- Class B.................................... 12.04 (0.12) 1.29 -- (0.12) -- Class Y.................................... 12.24 (0.03) 1.38 -- (0.12) -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 12.49(f) (0.02)(f) 0.62(f) -- -- -- For the Year Ended December 31, 1997 Class A.................................... 10.68 (0.02) 2.05 -- (0.55) -- Class B.................................... 10.65 (0.03) 1.97 -- (0.55) -- Class Y.................................... 10.71 (0.01) 2.09 -- (0.55) -- THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND For the Year Ended October 31, 2002(g) Class A.................................... 7.62 0.02 (0.71) -- -- -- Class B.................................... 7.59 (0.03) (0.70) -- -- -- Class C.................................... 7.59 (0.03) (0.70) -- -- -- Class Y.................................... 7.63 0.07 (0.72) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A.................................... 10.00 -- (2.38) -- -- -- Class B.................................... 10.00 (0.03) (2.38) -- -- -- Class C.................................... 10.00 (0.02) (2.39) -- -- -- Class Y.................................... 10.00 0.02 (2.39) -- -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 166 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 9.93 (17.25)% $ 96,302 1.64% 1.45% (0.97)% 226% 9.46 (17.88) 41,439 2.31% 2.15 (1.67) -- 9.47 (17.87) 38,938 2.20% 2.15 (1.65) -- 10.27 (16.84) 10,834 1.00% 1.00 (0.53) -- 12.00 (31.36) 116,398 1.51 1.45 (0.64) 224 11.52 (31.80) 49,738 2.19 2.15 (1.34) -- 11.53 (31.82) 51,234 2.17 2.15 (1.34) -- 12.35 (31.02) 33,473 0.95 0.95 (0.14) -- 18.08 (7.70)(d) 164,280 1.50(b) 1.45(b) (0.72)(b) 158 17.49 (8.26)(d) 71,323 2.16(b) 2.15(b) (1.42)(b) -- 17.51 (8.21)(d) 77,337 2.16(b) 2.15(b) (1.42)(b) -- 18.50 (7.27)(d) 46,205 0.96(b) 0.96(b) (0.23)(b) -- 20.48 65.66 109,559 1.51 1.45 (0.92) 177 19.96 64.46 53,358 2.15 2.15 (1.62) -- 19.97(f) 64.58 37,672 2.20 2.15 (1.61) -- 20.84 66.37 39,536 0.99 0.99 (0.46) -- 13.31 10.46 37,623 1.57 1.45 (0.79) 267 13.09 9.73 18,345 2.22 2.15 (1.49) -- 13.47 11.05 13,004 1.02 1.00 (0.33) -- 13.09(f) 4.80(d) 2,765 2.46(b) 2.15(b) (1.49)(b) -- 12.16 19.28 19,391 1.82 1.45 (0.61) 255 12.04 18.49 9,694 2.53 2.15 (1.30) -- 12.24 19.69 9,062 1.30 1.00 (0.14) -- 6.93 (9.06) 4,666 2.98 1.65 0.34 330 6.86 (9.62) 813 3.69 2.35 (0.42) -- 6.86 (9.62) 826 3.55 2.35 (0.34) -- 6.98 (8.52) 209 2.19 1.20 0.79 -- 7.62 (23.80)(d) 2,579 2.64(b) 1.65(b) (0.09)(b) 135 7.59 (24.10)(d) 327 3.35(b) 2.35(b) (0.79)(b) -- 7.59 (24.10)(d) 316 3.32(b) 2.35(b) (0.79)(b) -- 7.63 (23.70)(d) 229 2.10(b) 1.20(b) 0.36(b) --
167 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD CAPITAL APPRECIATION FUND For the Year Ended October 31, 2002(g) Class A.................................... $24.12 $(0.06) $ (3.59) $ -- $ -- $ -- Class B.................................... 23.06 (.25) (3.37) -- -- -- Class C.................................... 23.04 (.22) (3.38) -- -- -- Class Y.................................... 24.85 .04 (3.66) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 33.20 0.05 (5.12) -- (4.01) -- Class B.................................... 32.14 (0.02) (5.05) -- (4.01) -- Class C.................................... 32.10 (0.06) (4.99) -- (4.01) -- Class Y.................................... 33.94 0.08 (5.16) -- (4.01) -- For the Ten Months Ended October 31, 2000 Class A.................................... 31.72 (0.01) 3.15 -- (1.66) -- Class B.................................... 30.92 (0.12) 3.00 -- (1.66) -- Class C.................................... 30.89 (0.15) 3.02 -- (1.66) -- Class Y.................................... 32.27 0.03 3.30 -- (1.66) -- For the Year Ended December 31, 1999 Class A.................................... 20.42 (0.07) 13.28 -- (1.91) -- Class B.................................... 20.08 (0.19) 12.94 -- (1.91) -- Class C.................................... 20.08(f) (0.12)(f) 12.84(f) -- (1.91)(f) -- Class Y.................................... 20.66 -- 13.52 -- (1.91) -- For the Year Ended December 31, 1998 Class A.................................... 19.90 (0.10) 0.75 -- (0.13) -- Class B.................................... 19.71 (0.21) 0.71 -- (0.13) -- Class Y.................................... 20.05 (0.06) 0.80 -- (0.13) -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 19.67(f) (0.06)(f) 0.47(f) -- --(f) -- For the Year Ended December 31, 1997 Class A.................................... 13.36 (0.03) 7.34 -- (0.77) -- Class B.................................... 13.32 (0.06) 7.22 -- (0.77) -- Class Y.................................... 13.38 (0.03) 7.47 -- (0.77) -- THE HARTFORD GROWTH OPPORTUNITIES FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... 19.80 (.06) (4.43) -- -- -- Class B.................................... 17.80 (.10) (3.99) -- -- -- Class C.................................... 17.80 (.09) (4.01) -- -- -- Class Y.................................... 19.80 (.06) (4.39) -- -- -- For the Year Ended October 31, 2002 Class H.................................... 17.36 (0.32) (3.10) -- (0.21) -- Class L.................................... 19.21 (0.13) (3.54) -- (0.21) -- Class M.................................... 17.33 (.28) (3.13) -- (0.21) -- Class N.................................... 17.34 (.34) (3.08) -- (0.21) -- Class Z.................................... 19.77 .72 (4.41) -- (0.21) -- For the Two-Month Period Ended October 31, 2001 Class H.................................... 19.55 (0.11) (2.08) -- -- -- Class L.................................... 21.62 (0.11) (2.30) -- -- -- Class M.................................... 19.53 (0.12) (2.08) -- -- -- Class N.................................... 19.53 (0.11) (2.08) -- -- -- Class Z.................................... 22.24 (0.10) (2.37) -- -- -- For the Year Ended August 31, 2001 Class H.................................... 42.35 (0.70) (13.55) -- (8.55) -- Class L.................................... 45.45 (0.30) (14.98) -- (8.55) -- Class M.................................... 42.31 (0.70) (13.53) -- (8.55) -- Class N.................................... 42.32 (0.71) (13.53) -- (8.55) -- Class Z.................................... 46.35 (0.15) (15.41) -- (8.55) -- For the Year Ended August 31, 2000 Class H.................................... 29.28 (0.30) 20.22 -- (6.85) -- Class L.................................... 30.80 (0.20) 21.70 -- (6.85) -- Class M.................................... 29.26 (0.30) 20.20 -- (6.85) -- Class N.................................... 29.26 (0.30) 20.21 -- (6.85) -- Class Z.................................... 31.23 (0.16) 22.13 -- (6.85) -- For the Year Ended August 31, 1999 Class H.................................... 28.86 (0.73) 10.72 -- (9.57) -- Class L.................................... 29.78 (0.13) 10.72 -- (9.57) -- Class M.................................... 28.85 (0.74) 10.72 -- (9.57) -- Class N.................................... 28.85 (0.74) 10.72 -- (9.57) -- Class Z.................................... 30.00 (0.06) 10.86 -- (9.57) -- For the Year Ended August 31, 1998 Class H.................................... 36.54 (0.25) (3.59) -- (3.84) -- Class L.................................... 37.32 (0.11) (3.59) -- (3.84) -- Class M.................................... 36.53 (0.25) (3.59) -- (3.84) -- Class N.................................... 36.52 (0.24) (3.59) -- (3.84) -- Class Z.................................... 37.47 (0.04) (3.59) -- (3.84) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 168 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $20.47 (15.13)% $1,700,765 1.45% 1.40% (0.28)% 112% 19.44 (15.70) 884,553 2.14 2.14 (1.04) -- 19.44 (15.62) 738,988 2.02 2.02 (0.92) -- 21.23 (14.57) 25,378 0.80 0.80 0.27 -- 24.12 (17.24) 1,585,508 1.33 1.28 (0.22) 132 23.06 (17.88) 876,826 1.99 1.99 (0.93) -- 23.04 (17.84) 666,372 1.99 1.99 (0.93) -- 24.85 (16.85) 76,592 0.78 0.78 0.28 -- 33.20 10.18(d) 1,309,836 1.32(b) 1.27(b) (0.42)(b) 130 32.14 9.59(d) 826,495 1.97(b) 1.97(b) (1.12)(b) -- 32.10 9.56(d) 494,391 1.99(b) 1.99(b) (1.14)(b) -- 33.94 10.60(d) 89,477 0.80(b) 0.80(b) 0.05(b) -- 31.72 66.76 797,656 1.38 1.33 (0.61) 169 30.92 65.58 569,201 2.02 2.02 (1.31) -- 30.89(f) 65.44 191,466 2.09 2.09 (1.37) -- 32.27 67.49 64,688 0.87 0.87 (0.16) -- 20.42 3.26 364,951 1.49 1.44 (0.70) 123 20.08 2.52 290,756 2.15 2.15 (1.39) -- 20.66 3.68 27,700 0.96 0.96 (0.27) -- 20.08(f) 2.10(d) 15,231 2.29(b) 2.15(b) (1.34)(b) -- 19.90 55.11 233,601 1.69 1.45 (0.80) 120 19.71 54.15 174,392 2.38 2.15 (1.46) -- 20.05 56.00 26,693 1.13 1.00 (0.35) -- 15.31 (22.68)(d) 3,338 1.62(b) 1.45(b) (0.92)(b) 182 13.71 (22.99)(d) 777 2.30(b) 2.15(b) (1.60)(b) -- 13.70 (23.05)(d) 892 2.09(b) 2.09(b) (1.56)(b) -- 15.35 (22.47)(d) 1 0.89(b) 0.89(b) (0.44)(b) -- 13.73 (19.99) 39,151 1.85 1.85 (1.42) 182 15.33 (19.36) 412,454 1.10 1.10 (0.67) -- 13.71 (19.97) 20,163 1.85 1.85 (1.42) -- 13.71 (20.01) 4,172 1.85 1.85 (1.42) -- 15.87 (18.90) 26,842 0.84 0.84 (0.43) -- 17.36 (11.20)(d) 54,539 1.83(b) 1.83(b) (1.27)(b) 28 19.21 (11.15)(d) 593,267 1.08(b) 1.08(b) (0.52)(b) -- 17.33 (11.26)(d) 27,013 1.83(b) 1.83(b) (1.27)(b) -- 17.34 (11.21)(d) 6,131 1.83(b) 1.83(b) (1.27)(b) -- 19.77 (11.11)(d) 94,961 0.83(b) 0.83(b) (0.27)(b) -- 19.55 (38.91) 61,764 1.79 1.79 (1.15) 198 21.62 (38.44) 681,941 1.04 1.04 (0.40) -- 19.53 (38.90) 30,268 1.79 1.79 (1.15) -- 19.53 (38.92) 6,866 1.79 1.79 (1.15) -- 22.24 (38.26) 110,221 0.79 0.79 (0.15) -- 42.35 80.72 97,410 1.79 1.79 (1.29) 140 45.45 82.06 1,203,376 1.04 1.04 (0.54) -- 42.31 80.70 43,250 1.79 1.79 (1.29) -- 42.32 80.74 10,352 1.79 1.79 (1.29) -- 46.35 82.51 231,410 0.79 0.79 (0.29) -- 29.28 39.00 50,547 1.81 1.81 (1.19) 166 30.80 40.00 734,282 1.06 1.06 (0.44) -- 29.26 38.98 20,236 1.81 1.81 (1.19) -- 29.26 38.98 4,629 1.81 1.81 (1.19) -- 31.23 40.49 119,548 0.81 0.81 (0.19) -- 28.86 (11.25) 34,453 1.80 1.80 (1.04) 61 29.78 (10.59) 581,819 1.05 1.05 (0.29) -- 28.85 (11.25) 12,417 1.80 1.80 (1.04) -- 28.85 (11.22) 2,738 1.80 1.80 (1.04) -- 30.00 (10.34) 95,370 0.80 0.80 (0.04) --
169 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD MIDCAP FUND For the Year Ended October 31, 2002(g) Class A.................................... $16.57 $(0.10) $(0.97) $ -- $ -- $ -- Class B.................................... 16.07 (0.21) (0.93) -- -- -- Class C.................................... 16.08 (0.21) (0.93) -- -- -- Class Y.................................... 16.89 (0.02) (0.99) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 22.42 (0.03) (3.89) -- (1.93) -- Class B.................................... 21.96 (0.09) (3.87) -- (1.93) -- Class C.................................... 21.96 (0.12) (3.83) -- (1.93) -- Class Y.................................... 22.72 -- (3.90) -- (1.93) -- For the Ten Months Ended October 31, 2000 Class A.................................... 17.78 (0.03) 5.37 -- (0.70) -- Class B.................................... 17.54 (0.07) 5.19 -- (0.70) -- Class C.................................... 17.53 (0.10) 5.23 -- (0.70) -- Class Y.................................... 17.94 (0.01) 5.49 -- (0.70) -- For the Year Ended December 31, 1999 Class A.................................... 12.30 (0.03) 6.08 -- (0.57) -- Class B.................................... 12.22 (0.03) 5.92 -- (0.57) -- Class C.................................... 12.21(f) (0.04)(f) 5.93(f) -- (0.57)(f) -- Class Y.................................... 12.35 (0.02) 6.18 -- (0.57) -- For the Year Ended December 31, 1998 Class A.................................... 10.00 (0.05) 2.35 -- -- -- Class B.................................... 10.00 (0.10) 2.32 -- -- -- Class Y.................................... 10.00 (0.02) 2.37 -- -- -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 11.23(f) (0.03)(f) 1.01(f) -- -- -- THE HARTFORD MIDCAP VALUE FUND For the Year Ended October 31, 2002(g) Class A.................................... 8.48 (0.02) (0.12) -- -- -- Class B.................................... 8.46 (0.09) (0.12) -- -- -- Class C.................................... 8.46 (0.09) (0.12) -- -- -- Class Y.................................... 8.50 0.01 (0.12) -- -- -- From inception April 30, 2001, through October 31, 2001 Class A.................................... 10.00 (0.01) (1.51) -- -- -- Class B.................................... 10.00 (0.02) (1.52) -- -- -- Class C.................................... 10.00 (0.02) (1.52) -- -- -- Class Y.................................... 10.00 (0.01) (1.49) -- -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 170 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $15.50 (6.46)% $704,238 1.56% 1.45% (0.65)% 109% 14.93 (7.09) 266,650 2.24 2.15 (1.35) -- 14.94 (7.09) 275,305 2.12 2.12 (1.31) -- 15.88 (5.98) 27,319 0.92 0.92 (0.08) -- 16.57 (18.94) 612,750 1.43 1.38 (0.53) 116 16.07 (19.58) 265,683 2.11 2.11 (1.28) -- 16.08 (19.53) 285,908 2.09 2.09 (1.24) -- 16.89 (18.58) 52,576 0.88 0.88 (0.03) -- 22.42 30.50(d) 425,686 1.48(b) 1.43(b) (0.80)(b) 110 21.96 29.72(d) 185,830 2.15(b) 2.15(b) (1.52)(b) -- 21.96 29.72(d) 217,965 2.14(b) 2.14(b) (1.51)(b) -- 22.72 31.01(d) 62,343 0.96(b) 0.96(b) (0.33)(b) -- 17.78 50.17 118,194 1.51 1.45 (0.79) 123 17.54 49.10 50,301 2.17 2.15 (1.48) -- 17.53(f) 49.22 48,310 2.22 2.15 (1.48) -- 17.94 50.87 17,997 0.97 0.97 (0.31) -- 12.30 23.12 24,294 1.62 1.45 (0.78) 139 12.22 22.32 8,403 2.31 2.15 (1.48) -- 12.35 23.62 3,750 1.12 1.00 (0.33) -- 12.21(f) 8.70(d) 1,077 2.57(b) 2.15(b) (1.45)(b) -- 8.34 (1.65) 94,532 1.68 1.45 (0.23) 40 8.25 (2.48) 26,556 2.38 2.15 (0.95) -- 8.25 (2.48) 32,274 2.27 2.15 (0.96) -- 8.39 (1.29) 252 1.02 1.00 0.23 -- 8.48 (15.20)(d) 26,812 1.69(b) 1.40(b) (0.20)(b) 28 8.46 (15.40)(d) 7,158 2.38(b) 2.10(b) (0.90)(b) -- 8.46 (15.40)(d) 8,975 2.37(b) 2.10(b) (0.90)(b) -- 8.50 (15.00)(d) 255 1.11(b) 0.95(b) 0.25(b) --
171 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD VALUE OPPORTUNITIES FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... $11.73 $ -- $(2.47) $ -- $ -- $ -- Class B.................................... 11.26 (.02) (2.40) -- -- -- Class C.................................... 11.26 (.02) (2.39) -- -- -- Class Y.................................... 11.73 0.05 (2.48) -- -- -- For the Year Ended October 31, 2002 Class H.................................... 11.58 (.11) (1.81) -- (0.81) -- Class L.................................... 11.99 -- (1.92) -- (0.81) -- Class M.................................... 11.57 (0.08) (1.83) -- (0.81) -- Class N.................................... 11.57 (.13) (1.78) -- (0.81) -- For the Two-Month Period Ended October 31, 2001 Class H.................................... 12.86 (0.02) (1.26) -- -- -- Class L.................................... 13.30 -- (1.31) -- -- -- Class M.................................... 12.85 (0.02) (1.26) -- -- -- Class N.................................... 12.86 (0.03) (1.26) -- -- -- For the Year Ended August 31, 2001 Class H.................................... 13.95 (0.07) 0.30 -- (1.32) -- Class L.................................... 14.30 0.03 0.31 (0.02) (1.32) -- Class M.................................... 13.94 (0.07) 0.30 -- (1.32) -- Class N.................................... 13.95 (0.07) 0.30 -- (1.32) -- For the Year Ended August 31, 2000 Class H.................................... 13.07 (0.08) 1.89 -- (0.93) -- Class L.................................... 13.28 0.01 1.94 -- (0.93) -- Class M.................................... 13.06 (0.08) 1.89 -- (0.93) -- Class N.................................... 13.07 (0.08) 1.89 -- (0.93) -- For the Year Ended August 31, 1999 Class H.................................... 11.72 (0.08) 2.73 -- (1.30) -- Class L.................................... 11.85 0.05 2.73 (0.05) (1.30) -- Class M.................................... 11.71 (0.08) 2.73 -- (1.30) -- Class N.................................... 11.72 (0.08) 2.73 -- (1.30) -- For the Year Ended August 31, 1998 Class H.................................... 13.39 (0.01) (0.30) -- (1.36) -- Class L.................................... 13.51 0.09 (0.30) (0.09) (1.36) -- Class M.................................... 13.39 (0.02) (0.30) -- (1.36) -- Class N.................................... 13.39 (0.01) (0.30) -- (1.36) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. See Notes to Financial Statements. 172 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 9.26 (21.06)%(d) $ 2,600 1.92%(b) 1.45%(b) 0.04%(b) 70% 8.84 (21.45)(d) 481 2.61(b) 2.15(b) (0.71)(b) -- 8.85 (21.41)(d) 430 2.48(b) 2.15(b) (0.75)(b) -- 9.30 (20.75)(d) 1 1.13(b) 1.00(b) 0.49(b) -- 8.85 (17.99) 5,634 2.17 2.15 (0.82) 70 9.26 (17.34) 19,684 1.43 1.43 (0.11) -- 8.85 (17.92) 6,669 2.18 2.15 (0.82) -- 8.85 (17.92) 1,749 2.18 2.15 (0.83) -- 11.58 (9.95)(d) 7,914 2.18(b) 2.18(b) (0.89)(b) 12 11.99 (9.85)(d) 27,982 1.43(b) 1.43(b) (0.14)(b) -- 11.57 (9.96)(d) 8,700 2.18(b) 2.18(b) (0.89)(b) -- 11.57 (10.03)(d) 2,636 2.18(b) 2.18(b) (0.89)(b) -- 12.86 1.53 8,967 2.16 2.16 (0.70) 177 13.30 2.29 30,480 1.41 1.41 0.05 -- 12.85 1.53 9,668 2.16 2.16 (0.70) -- 12.86 1.53 2,935 2.16 2.16 (0.70) -- 13.95 14.90 8,796 2.17 2.17 (0.61) 228 14.30 15.76 39,975 1.42 1.42 0.14 -- 13.94 14.90 7,633 2.17 2.17 (0.61) -- 13.95 14.90 2,662 2.17 2.17 (0.61) -- 13.07 23.18 8,045 2.23 2.23 (0.43) 266 13.28 24.10 34,302 1.48 1.48 0.32 -- 13.06 23.20 6,662 2.23 2.23 (0.43) -- 13.07 23.18 2,486 2.23 2.23 (0.43) -- 11.72 (3.24) 7,016 2.27 2.27 (0.20) 260 11.85 (2.52) 22,449 1.52 1.52 0.55 -- 11.71 (3.33) 4,794 2.27 2.27 (0.20) -- 11.72 (3.24) 1,991 2.27 2.27 (0.20) --
173 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND For the Year Ended October 31, 2002(g) Class A.................................... $ 9.33 $ 0.03 $(1.33) $ -- $ -- $ -- Class B.................................... 9.04 (.08) (1.25) -- -- -- Class C.................................... 8.99 (0.05) (1.27) -- -- -- Class Y.................................... 9.49 .02 (1.32) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 13.03 0.05 (3.14) -- (0.61) -- Class B.................................... 12.74 (0.04) (3.05) -- (0.61) -- Class C.................................... 12.68 (0.03) (3.05) -- (0.61) -- Class Y.................................... 13.19 0.09 (3.18) -- (0.61) -- For the Ten Months Ended October 31, 2000 Class A.................................... 15.43 0.08 (2.42) (0.01) (0.05) -- Class B.................................... 15.17 0.01 (2.39) (0.00) (0.05) -- Class C.................................... 15.10 0.07 (2.44) (0.00) (0.05) -- Class Y.................................... 15.56 0.12 (2.43) (0.01) (0.05) -- For the Year Ended December 31, 1999 Class A.................................... 11.89 0.06 4.46 (0.15) (0.83) -- Class B.................................... 11.73 0.01 4.32 (0.06) (0.83) -- Class C.................................... 11.74(f) (0.02)(f) 4.33(f) (0.12)(f) (0.83)(f) -- Class Y.................................... 11.97 0.09 4.51 (0.18) (0.83) -- For the Year Ended December 31, 1998 Class A.................................... 10.58 0.07 1.26 (0.02) -- -- Class B.................................... 10.49 0.01 1.23 -- -- -- Class Y.................................... 10.62 0.12 1.27 (0.04) -- -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 12.26(f) (0.01)(f) (0.48)(f) (0.03)(f) -- -- For the Year Ended December 31, 1997 Class A.................................... 10.72 0.09 (0.01) (0.05) (0.17) -- Class B.................................... 10.69 0.07 (0.06) (0.04) (0.17) -- Class Y.................................... 10.73 0.15 (0.02) (0.07) (0.17) -- THE HARTFORD GLOBAL LEADERS FUND For the Year Ended October 31, 2002(g) Class A.................................... 12.83 0.02 (1.64) -- -- -- Class B.................................... 12.54 (0.07) (1.59) -- -- -- Class C.................................... 12.55 (0.06) (1.59) -- -- -- Class Y.................................... 13.03 .05 (1.63) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 17.55 0.01 (4.54) -- (0.18) (0.01) Class B.................................... 17.29 (0.08) (4.48) -- (0.18) (0.01) Class C.................................... 17.30 (0.10) (4.46) -- (0.18) (0.01) Class Y.................................... 17.73 0.08 (4.59) -- (0.18) (0.01) For the Ten Months Ended October 31, 2000 Class A.................................... 18.56 -- (0.92) -- (0.09) -- Class B.................................... 18.40 (0.06) (0.96) -- (0.09) -- Class C.................................... 18.40 (0.06) (0.95) -- (0.09) -- Class Y.................................... 18.68 0.03 (0.89) -- (0.09) -- For the Year Ended December 31, 1999 Class A.................................... 12.67 -- 6.01 -- (0.12) -- Class B.................................... 12.65 (0.02) 5.89 -- (0.12) -- Class C.................................... 12.65 (0.02) 5.89 -- (0.12) -- Class Y.................................... 12.69 0.03 6.08 -- (0.12) -- From inception September 30, 1998, through December 31, 1998 Class A.................................... 10.00 (0.01) 3.03 -- (0.35) -- Class B.................................... 10.00 (0.02) 3.02 -- (0.35) -- Class C.................................... 10.00 (0.02) 3.02 -- (0.35) -- Class Y.................................... 10.00 0.01 3.03 -- (0.35) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 174 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 8.03 (13.93)% $ 66,775 1.82% 1.65% 0.34% 175% 7.71 (14.71) 18,668 2.50 2.35 (0.79) -- 7.67 (14.68) 13,438 2.40 2.35 (0.64) -- 8.19 (13.70) 4,543 1.13 1.13 0.31 -- 9.33 (24.87) 72,326 1.61 1.56 0.47 158 9.04 (25.46) 18,798 2.30 2.30 (0.28) -- 8.99 (25.51) 18,523 2.28 2.28 (0.25) -- 9.49 (24.56) 17,092 1.06 1.06 0.97 -- 13.03 (15.18)(d) 89,309 1.60(b) 1.55(b) 0.64(b) 121 12.74 (15.70)(d) 25,872 2.29(b) 2.29(b) (0.09)(b) -- 12.68 (15.70)(d) 26,912 2.27(b) 2.27(b) (0.07)(b) -- 13.19 (14.91)(d) 22,454 1.06(b) 1.06(b) 1.13(b) -- 15.43 39.13 63,281 1.61 1.56 0.61 128 15.17 38.11 22,835 2.26 2.26 (0.09) -- 15.10(f) 37.98 13,514 2.31 2.31 (0.13) -- 15.56 39.63 25,403 1.11 1.11 1.07 -- 11.89 12.53 32,014 1.89 1.65 0.69 149 11.73 11.82 11,767 2.56 2.35 0.01 -- 11.97 13.11 10,860 1.36 1.20 1.17 -- 11.74(f) (4.05)(d) 1,379 2.83(b) 2.35(b) (0.71)(b) -- 10.58 0.84 15,701 2.30 1.65 0.88 59 10.49 0.12 7,188 3.03 2.35 (0.05) -- 10.62 1.31 6,422 1.76 1.20 1.33 -- 11.21 (12.63) 354,407 1.66 1.61 0.24 323 10.88 (13.24) 70,280 2.33 2.33 (0.48) -- 10.90 (13.15) 75,174 2.21 2.21 (0.36) -- 11.45 (12.13) 6,167 1.00 1.00 0.84 -- 12.83 (26.07) 247,094 1.53 1.48 0.08 382 12.54 (26.64) 62,973 2.23 2.23 (0.66) -- 12.55 (26.62) 103,574 2.19 2.19 (0.63) -- 13.03 (25.68) 7,908 0.98 0.98 0.58 -- 17.55 (4.98)(d) 255,959 1.53(b) 1.48(b) (0.06)(b) 290 17.29 (5.56)(d) 75,702 2.22(b) 2.22(b) (0.80)(b) -- 17.30 (5.51)(d) 142,549 2.19(b) 2.19(b) (0.77)(b) -- 17.73 (4.62)(d) 10,001 1.01(b) 1.01(b) 0.41(b) -- 18.56 47.68 84,632 1.62 1.57 (0.15) 204 18.40 46.64 24,588 2.29 2.29 (0.86) -- 18.40 46.64 43,012 2.33 2.33 (0.89) -- 18.68 48.39 4,423 1.10 1.10 0.32 -- 12.67 30.36(d) 3,771 2.71(b) 1.65(b) (0.19)(b) 49 12.65 30.16(d) 486 3.55(b) 2.35(b) (0.92)(b) -- 12.65 30.16(d) 517 3.57(b) 2.35(b) (0.90)(b) -- 12.69 30.57(d) 392 2.46(b) 1.20(b) 0.31(b) --
175 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD FOCUS FUND For the Year Ended October 31, 2002(g) Class A.................................... $ 8.82 $(0.05) $(1.45) $ -- $ -- $ -- Class B.................................... 8.79 (.12) (1.42) -- -- -- Class C.................................... 8.79 (0.12) (1.43) -- -- -- Class Y.................................... 8.83 -- (1.46) -- -- -- From inception May 24, 2001, through October 31, 2001 Class A.................................... 10.00 (0.01) (1.17) -- -- -- Class B.................................... 10.00 (0.03) (1.18) -- -- -- Class C.................................... 10.00 (0.04) (1.17) -- -- -- Class Y.................................... 10.00 0.01 (1.18) -- -- -- THE HARTFORD GROWTH FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... 14.57 (0.02) (2.65) -- -- -- Class B.................................... 13.28 (.04) (2.44) -- -- -- Class C.................................... 13.28 (.04) (2.44) -- -- -- Class Y.................................... 14.57 -- (2.63) -- -- -- For the Year Ended October 31, 2002 Class H.................................... 13.02 (.23) (1.98) -- -- -- Class L.................................... 14.23 (0.03) (2.29) -- -- -- Class M.................................... 13.00 (.16) (2.04) -- -- -- Class N.................................... 13.00 (.26) (1.94) -- -- -- For the Two-Month Period Ended October 31, 2001 Class H.................................... 13.83 (0.03) (0.78) -- -- -- Class L.................................... 15.09 (0.01) (0.85) -- -- -- Class M.................................... 13.81 (0.03) (0.78) -- -- -- Class N.................................... 13.81 (0.03) (0.78) -- -- -- For the Year Ended August 31, 2001 Class H.................................... 22.30 (0.21) (4.94) -- (3.32) -- Class L.................................... 23.85 (0.05) (5.39) -- (3.32) -- Class M.................................... 22.27 (0.21) (4.93) -- (3.32) -- Class N.................................... 22.27 (0.21) (4.93) -- (3.32) -- For the Year Ended August 31, 2000 Class H.................................... 21.78 (0.62) 6.49 -- (5.35) -- Class L.................................... 22.81 (0.08) 6.47 -- (5.35) -- Class M.................................... 21.77 (0.62) 6.47 -- (5.35) -- Class N.................................... 21.76 (0.62) 6.48 -- (5.35) -- For the Year Ended August 31, 1999 Class H.................................... 21.74 (0.43) 6.73 -- (6.26) -- Class L.................................... 22.37 (0.03) 6.73 -- (6.26) -- Class M.................................... 21.73 (0.43) 6.73 -- (6.26) -- Class N.................................... 21.73 (0.44) 6.73 -- (6.26) -- For the Year Ended August 31, 1998 Class H.................................... 25.68 (0.26) 0.38 -- (4.06) -- Class L.................................... 26.13 (0.08) 0.38 -- (4.06) -- Class M.................................... 25.67 (0.26) 0.38 -- (4.06) -- Class N.................................... 25.68 (0.27) 0.38 -- (4.06) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 176 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 7.32 (17.01)% $ 66,432 1.76% 1.65% (0.53)% 215% 7.25 (17.52) 18,862 2.43 2.35 (1.23) -- 7.24 (17.63) 25,847 2.34 2.34 (1.22) -- 7.37 (16.54) 509 1.14 1.14 0.09 -- 8.82 (11.80)(d) 66,970 1.68(b) 1.63(b) (0.18)(b) 109 8.79 (12.10)(d) 18,524 2.35(b) 2.35(b) (0.89)(b) -- 8.79 (12.10)(d) 24,142 2.35(b) 2.35(b) (0.89)(b) -- 8.83 (11.70)(d) 9 1.20(b) 1.20(b) 0.25(b) -- 11.90 (18.33)(d) 5,970 1.65(b) 1.45(b) (0.44)(b) 107 10.80 (18.67)(d) 1,698 2.32(b) 2.15(b) (1.10)(b) -- 10.80 (18.68)(d) 1,480 2.18(b) 2.15(b) (1.13)(b) -- 11.94 (18.05)(d) 1 0.90(b) 0.90(b) (0.01)(b) -- 10.81 (16.95) 26,002 1.89 1.89 (1.03) 107 11.91 (16.28) 274,683 1.14 1.14 (0.28) -- 10.80 (16.90) 21,478 1.89 1.89 (1.03) -- 10.80 (16.90) 4,340 1.89 1.89 (1.03) -- 13.02 (5.86) 37,750 1.86 1.86 (1.09) 13 14.23 (5.70) 385,620 1.11 1.11 (0.34) -- 13.00 (5.87) 28,112 1.86 1.86 (1.09) -- 13.00 (5.87) 6,911 1.86 1.86 (1.09) -- 13.83 (25.59) 40,645 1.83 1.83 (0.91) 161 15.09 (25.08) 416,544 1.08 1.08 (0.16) -- 13.81 (25.58) 29,777 1.83 1.83 (0.91) -- 13.81 (25.58) 7,557 1.83 1.83 (0.91) -- 22.30 31.68 56,771 1.82 1.82 (1.04) 165 23.85 32.70 615,473 1.07 1.07 (0.29) -- 22.27 31.59 38,264 1.82 1.82 (1.04) -- 22.27 31.66 10,932 1.82 1.82 (1.04) -- 21.78 36.91 40,760 1.85 1.85 (0.83) 177 22.81 37.88 551,551 1.10 1.10 (0.08) -- 21.77 36.94 24,847 1.85 1.85 (0.83) -- 21.76 36.87 5,715 1.85 1.85 (0.83) -- 21.74 0.80 16,987 1.88 1.88 (1.03) 71 22.37 1.56 312,582 1.13 1.13 (0.28) -- 21.73 0.80 9,339 1.88 1.88 (1.03) -- 21.73 0.76 2,453 1.88 1.88 (1.03) --
177 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD STOCK FUND For the Year Ended October 31, 2002(g) Class A.................................... $16.89 $ -- $(3.16) $ -- $ -- $ -- Class B.................................... 16.24 (0.12) (3.02) -- -- -- Class C.................................... 16.23 (0.08) (3.02) -- -- -- Class Y.................................... 17.31 0.10 (3.26) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 23.40 0.02 (5.45) -- (1.08) -- Class B.................................... 22.69 (0.09) (5.28) -- (1.08) -- Class C.................................... 22.68 (0.08) (5.29) -- (1.08) -- Class Y.................................... 23.85 0.09 (5.55) -- (1.08) -- For the Ten Months Ended October 31, 2000 Class A.................................... 23.64 (0.03) (0.00) -- (0.21) -- Class B.................................... 23.06 (0.12) (0.04) -- (0.21) -- Class C.................................... 23.05 (0.11) (0.05) -- (0.21) -- Class Y.................................... 23.99 0.05 0.02 -- (0.21) -- For the Year Ended December 31, 1999 Class A.................................... 19.70 -- 4.36 -- (0.42) -- Class B.................................... 19.36 (0.07) 4.19 -- (0.42) -- Class C.................................... 19.36(f) (0.08)(f) 4.19(f) -- (0.42)(f) -- Class Y.................................... 19.89 (0.01) 4.53 -- (0.42) -- For the Year Ended December 31, 1998 Class A.................................... 15.16 (0.01) 4.75 -- (0.19) (0.01) Class B.................................... 15.01 (0.05) 4.60 -- (0.19) (0.01) Class Y.................................... 15.25 0.06 4.78 -- (0.19) (0.01) From inception August 1, 1998, through December 31, 1998 Class C.................................... 18.53(f) (0.02)(f) 1.22(f) -- (0.35)(f) (0.02)(f) For the Year Ended December 31, 1997 Class A.................................... 11.53 -- 3.66 -- (0.03) -- Class B.................................... 11.50 (0.02) 3.56 -- (0.03) -- Class Y.................................... 11.55 0.03 3.70 -- (0.03) -- THE HARTFORD VALUE FUND For the Year Ended October 31, 2002(g) Class A.................................... 9.02 0.05 (1.43) -- (0.05) -- Class B.................................... 8.99 (0.02) (1.41) -- (0.05) -- Class C.................................... 8.99 (0.02) (1.41) -- (0.05) -- Class Y.................................... 9.04 0.09 (1.44) -- (0.05) -- From inception April 30, 2001, through October 31, 2001 Class A.................................... 10.00 0.01 (0.99) -- -- -- Class B.................................... 10.00 -- (1.01) -- -- -- Class C.................................... 10.00 -- (1.01) -- -- -- Class Y.................................... 10.00 0.05 (1.01) -- -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 178 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $13.73 (18.71)% $ 880,371 1.47% 1.42% (0.01)% 48% 13.10 (19.34) 351,382 2.15 2.15 (0.74) -- 13.13 (19.10) 313,173 2.03 2.03 (0.62) -- 14.15 (18.26) 34,116 0.85 0.85 0.58 -- 16.89 (24.28) 1,031,549 1.33 1.28 0.05 38 16.24 (24.80) 470,035 2.00 2.00 (0.67) -- 16.23 (24.81) 430,238 1.99 1.99 (0.66) -- 17.31 (23.93) 27,004 0.79 0.79 0.54 -- 23.40 (0.14)(d) 1,067,970 1.32(b) 1.27(b) (0.19)(b) 38 22.69 (0.71)(d) 578,402 1.99(b) 1.99(b) (0.90)(b) -- 22.68 (0.71)(d) 492,996 1.98(b) 1.98(b) (0.90)(b) -- 23.85 0.28(d) 32,123 0.80(b) 0.80(b) 0.28(b) -- 23.64 22.31 752,763 1.38 1.33 (0.06) 34 23.06 21.46 462,318 2.03 2.03 (0.75) -- 23.05(f) 21.40 305,566 2.07 2.07 (0.78) -- 23.99 22.91 31,129 0.91 0.91 0.36 -- 19.70 31.33 268,226 1.49 1.44 (0.07) 37 19.36 30.38 185,205 2.16 2.15 (0.77) -- 19.89 31.80 7,919 0.96 0.96 0.36 -- 19.36(f) 6.60(d) 36,039 2.24(b) 2.15(b) (0.76)(b) -- 15.16 31.78 65,763 1.69 1.45 0.06 43 15.01 30.82 35,294 2.38 2.15 (0.66) -- 15.25 32.33 5,510 1.11 1.00 0.53 -- 7.59 (15.42) 30,010 1.63 1.45 0.69 35 7.51 (16.03) 5,222 2.31 2.15 (0.02) -- 7.51 (16.03) 9,110 2.21 2.15 (0.04) -- 7.64 (15.05) 230 0.98 0.98 1.09 -- 9.02 (9.80)(d) 13,728 1.66(b) 1.45(b) 0.53(b) 12 8.99 (10.10)(d) 2,029 2.36(b) 2.15(b) (0.17)(b) -- 8.99 (10.10)(d) 4,769 2.34(b) 2.15(b) (0.17)(b) -- 9.04 (9.60)(d) 271 1.09(b) 1.00(b) 0.98(b) --
179 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD GROWTH AND INCOME FUND For the Year Ended October 31, 2002(g) Class A.................................... $10.36 $ -- $(1.93) $ -- $ -- $ -- Class B.................................... 10.10 (.11) (1.82) -- -- -- Class C.................................... 10.11 (0.06) (1.87) -- -- -- Class Y.................................... 10.52 .05 (1.94) -- -- -- For the Year Ended October 31, 2001 Class A.................................... 13.63 -- (2.75) -- (0.52) -- Class B.................................... 13.40 (0.05) (2.73) -- (0.52) -- Class C.................................... 13.41 (0.06) (2.72) -- (0.52) -- Class Y.................................... 13.78 0.03 (2.77) -- (0.52) -- For the Ten Months Ended October 31, 2000 Class A.................................... 13.72 (0.02) 0.04 -- (0.11) -- Class B.................................... 13.58 (0.06) (0.01) -- (0.11) -- Class C.................................... 13.58 (0.06) 0.00 -- (0.11) -- Class Y.................................... 13.83 0.02 0.04 -- (0.11) -- For the Year Ended December 31, 1999 Class A.................................... 11.45 0.01 2.36 -- (0.10) -- Class B.................................... 11.41 (0.02) 2.29 -- (0.10) -- Class C.................................... 11.41(f) (0.03)(f) 2.30(f) -- (0.10)(f) -- Class Y.................................... 11.48 0.06 2.39 -- (0.10) -- From inception April 30, 1998, through December 31, 1998 Class A.................................... 10.00 0.02 1.45 -- -- (0.02) Class B.................................... 10.00 (0.01) 1.43 -- -- (0.01) Class Y.................................... 10.00 0.05 1.46 -- -- (0.03) From inception August 1, 1998, through December 31, 1998 Class C.................................... 10.14(f) 0.01(f) 1.29(f) -- -- (0.03)(f) THE HARTFORD DIVIDEND AND GROWTH FUND For the Year Ended October 31, 2002(g) Class A.................................... 15.53 0.12 (1.71) (0.12) (0.24) -- Class B.................................... 15.37 0.02 (1.70) (0.02) (0.24) -- Class C.................................... 15.33 0.03 (1.69) (0.03) (0.24) -- Class Y.................................... 15.71 .12 (1.65) (0.21) (0.24) -- For the Year Ended October 31, 2001 Class A.................................... 17.78 0.18 (1.49) (0.17) (0.77) -- Class B.................................... 17.60 0.07 (1.48) (0.05) (0.77) -- Class C.................................... 17.57 0.08 (1.48) (0.07) (0.77) -- Class Y.................................... 17.96 0.24 (1.48) (0.25) (0.77) -- For the Ten Months Ended October 31, 2000 Class A.................................... 16.85 0.15 0.98 (0.12) (0.08) -- Class B.................................... 16.69 0.04 0.98 (0.04) (0.08) -- Class C.................................... 16.67 0.07 0.95 (0.04) (0.08) -- Class Y.................................... 16.96 0.22 1.01 (0.16) (0.08) -- For the Year Ended December 31, 1999 Class A.................................... 16.62 0.15 0.60 (0.17) (0.35) -- Class B.................................... 16.47 0.04 0.58 (0.05) (0.35) -- Class C.................................... 16.48(f) 0.04(f) 0.58(f) (0.08)(f) (0.35)(f) -- Class Y.................................... 16.69 0.21 0.63 (0.22) (0.35) -- For the Year Ended December 31, 1998 Class A.................................... 14.72 0.15 1.97 (0.15) (0.07) -- Class B.................................... 14.61 0.06 1.92 (0.05) (0.07) -- Class Y.................................... 14.77 0.24 1.94 (0.19) (0.07) -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 15.94(f) 0.05(f) 0.70(f) (0.10)(f) (0.11)(f) -- For the Year Ended December 31, 1997 Class A.................................... 11.45 0.13 3.40 (0.12) (0.14) -- Class B.................................... 11.40 0.13 3.30 (0.08) (0.14) -- Class Y.................................... 11.46 0.21 3.39 (0.15) (0.14) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 180 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $ 8.43 (18.63)% $230,545 1.57% 1.45% (0.03)% 89% 8.17 (19.11) 43,431 2.26 2.15 (1.03) -- 8.18 (19.09) 44,054 2.13 2.13 (0.80) -- 8.63 (17.97) 661 0.93 0.93 0.46 -- 10.36 (20.90) 239,698 1.43 1.38 (0.07) 80 10.10 (21.51) 43,210 2.11 2.11 (0.80) -- 10.11 (21.50) 60,409 2.09 2.09 (0.78) -- 10.52 (20.60) 440 0.96 0.96 0.34 -- 13.63 0.15(d) 197,176 1.43(b) 1.38(b) (0.17)(b) 63 13.40 (0.51)(d) 41,126 2.11(b) 2.11(b) (0.90)(b) -- 13.41 (0.44)(d) 63,650 2.09(b) 2.09(b) (0.88)(b) -- 13.78 0.44(d) 490 0.95(b) 0.95(b) 0.26(b) -- 13.72 20.80 74,764 1.49 1.44 0.01 53 13.58 20.00 20,375 2.13 2.13 (0.68) -- 13.58(f) 19.98 29,265 2.16 2.15 (0.69) -- 13.83 21.45 480 0.93 0.93 0.51 -- 11.45 14.78(d) 11,120 1.63(b) 1.45(b) 0.23(b) 35 11.41 14.21(d) 3,538 2.32(b) 2.15(b) (0.47)(b) -- 11.48 15.18(d) 386 1.20(b) 1.00(b) 0.76(b) -- 11.41(f) 12.80(d) 3,726 2.38(b) 2.15(b) (0.53)(b) -- 13.58 (10.64) 808,633 1.46 1.40 0.78 33 13.43 (11.15) 185,731 2.13 2.10 0.08 -- 13.40 (11.08) 164,260 2.02 2.02 0.15 -- 13.73 (10.00) 14,790 0.82 0.82 1.36 -- 15.53 (7.67) 521,543 1.36 1.31 1.06 55 15.37 (8.34) 150,592 2.03 2.03 0.34 -- 15.33 (8.33) 117,108 2.03 2.03 0.35 -- 15.71 (7.20) 26,326 0.82 0.82 1.55 -- 17.78 6.77(d) 294,903 1.36(b) 1.31(b) 0.99(b) 56 17.60 6.17(d) 118,936 2.03(b) 2.03(b) 0.27(b) -- 17.57 6.17(d) 63,503 2.03(b) 2.03(b) 0.27(b) -- 17.96 7.37(d) 22,441 0.85(b) 0.85(b) 1.45(b) -- 16.85 4.57 242,054 1.38 1.33 0.94 50 16.69 3.82 121,977 2.02 2.02 0.25 -- 16.67(f) 3.76 42,869 2.07 2.07 0.21 -- 16.96 5.10 23,616 0.87 0.87 1.42 -- 16.62 14.47 182,495 1.43 1.38 1.08 46 16.47 13.62 108,344 2.10 2.10 0.39 -- 16.69 14.86 17,098 0.91 0.91 1.53 -- 16.48(f) 4.82(d) 9,682 2.20(b) 2.10(b) 0.23(b) -- 14.72 30.99 67,861 1.64 1.40 1.42 29 14.61 30.20 33,730 2.34 2.10 0.69 -- 14.77 31.59 13,236 1.09 0.95 1.83 --
181 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD ADVISERS FUND For the Year Ended October 31, 2002(g) Class A.................................... $14.38 $0.21 $(1.69) $(0.23) $ -- $ -- Class B.................................... 14.24 0.11 (1.68) (0.13) -- -- Class C.................................... 14.37 0.12 (1.69) (0.14) -- Class Y.................................... 14.54 .13 (1.55) (0.30) -- -- For the Year Ended October 31, 2001 Class A.................................... 17.07 0.30 (2.05) (0.31) (0.64) -- Class B.................................... 16.90 0.20 (2.03) (0.19) (0.64) -- Class C.................................... 17.05 0.20 (2.04) (0.20) (0.64) -- Class Y.................................... 17.24 0.38 (2.07) (0.38) (0.64) -- For the Ten Months Ended October 31, 2000 Class A.................................... 17.02 0.24 0.19 (0.22) (0.16) -- Class B.................................... 16.87 0.15 0.17 (0.13) (0.16) -- Class C.................................... 17.02 0.15 0.17 (0.13) (0.16) -- Class Y.................................... 17.16 0.33 0.16 (0.25) (0.16) -- For the Year Ended December 31, 1999 Class A.................................... 15.71 0.27 1.60 (0.25) (0.31) -- Class B.................................... 15.59 0.16 1.58 (0.15) (0.31) -- Class C.................................... 15.73(f) 0.17(f) 1.58(f) (0.15)(f) (0.31)(f) -- Class Y.................................... 15.80 0.35 1.61 (0.29) (0.31) -- For the Year Ended December 31, 1998 Class A.................................... 13.41 0.23 2.58 (0.25) (0.26) -- Class B.................................... 13.33 0.15 2.54 (0.17) (0.26) -- Class Y.................................... 13.46 0.29 2.59 (0.28) (0.26) -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 15.56(f) 0.16(f) 0.64(f) (0.22)(f) (0.40)(f) -- For the Year Ended December 31, 1997 Class A.................................... 11.08 0.16 2.41 (0.17) (0.07) -- Class B.................................... 11.05 0.16 2.31 (0.12) (0.07) -- Class Y.................................... 11.10 0.31 2.32 (0.20) (0.07) -- THE HARTFORD HIGH YIELD FUND For the Year Ended October 31, 2002(g) Class A.................................... 8.45 .82 (1.78) (0.76) -- -- Class B.................................... 8.43 .80 (1.81) (0.70) -- -- Class C.................................... 8.43 .72 (1.73) (0.70) -- -- Class Y.................................... 8.48 .34 (1.30) (0.79) -- -- For the Year Ended October 31, 2001 Class A.................................... 9.06 0.78 (0.61) (0.78) -- -- Class B.................................... 9.05 0.72 (0.62) (0.72) -- -- Class C.................................... 9.05 0.72 (0.62) (0.72) -- -- Class Y.................................... 9.10 0.83 (0.63) (0.82) -- -- For the Ten Months Ended October 31, 2000 Class A.................................... 9.75 0.66 (0.69) (0.66) -- -- Class B.................................... 9.74 0.62 (0.71) (0.60) -- -- Class C.................................... 9.74 0.61 (0.70) (0.60) -- -- Class Y.................................... 9.78 0.69 (0.69) (0.68) -- -- For the Year Ended December 31, 1999 Class A.................................... 10.15 0.75 (0.40) (0.75) -- -- Class B.................................... 10.14 0.68 (0.40) (0.68) -- -- Class C.................................... 10.14 0.68 (0.40) (0.68) -- -- Class Y.................................... 10.16 0.78 (0.39) (0.77) -- -- From inception September 30, 1998, through December 31, 1998 Class A.................................... 10.00 0.19 0.13 (0.17) -- -- Class B.................................... 10.00 0.16 0.14 (0.16) -- -- Class C.................................... 10.00 0.16 0.14 (0.16) -- -- Class Y.................................... 10.00 0.21 0.13 (0.18) -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 182 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $12.67 (10.42)% $1,245,331 1.41% 1.36% 1.56% 44% 12.54 (11.11) 567,953 2.08 2.08 0.84 -- 12.66 (10.99) 422,520 1.97 1.97 0.95 -- 12.82 (9.89) 3,997 0.78 0.78 2.15 -- 14.38 (10.67) 1,088,858 1.27 1.22 1.99 37 14.24 (11.27) 622,519 1.93 1.93 1.28 -- 14.37 (11.26) 478,194 1.93 1.93 1.28 -- 14.54 (10.20) 56,320 0.74 0.74 2.48 -- 17.07 2.52(d) 893,954 1.26(b) 1.21(b) 1.76(b) 38 16.90 1.89(d) 631,930 1.92(b) 1.92(b) 1.05(b) -- 17.05 1.89(d) 432,171 1.92(b) 1.92(b) 1.05(b) -- 17.24 2.90(d) 64,889 0.75(b) 0.75(b) 2.22(b) -- 17.02 12.08 693,136 1.31 1.26 1.72 35 16.87 11.29 555,338 1.97 1.97 1.00 -- 17.02(f) 11.29 323,631 1.99 1.99 0.99 -- 17.16 12.62 68,133 0.79 0.79 2.18 -- 15.71 21.09 316,435 1.43 1.38 1.67 40 15.59 20.27 237,959 2.11 2.10 0.98 -- 15.80 21.62 57,891 0.90 0.90 2.09 -- 15.73(f) 5.25(d) 54,907 2.18(b) 2.10(b) 1.06(b) -- 13.41 23.30 98,633 1.60 1.40 1.54 39 13.33 22.44 39,334 2.31 2.10 0.80 -- 13.46 23.80 39,773 1.03 0.95 2.08 -- 6.73 (12.16) 95,760 1.55 1.40 9.48 22 6.72 (12.70) 44,359 2.24 2.10 8.78 -- 6.72 (12.65) 40,611 2.10 2.10 8.78 -- 6.73 (12.01) 1 0.84 0.84 10.04 -- 8.45 1.80 45,753 1.40 1.35 9.00 63 8.43 0.99 16,922 2.08 2.08 8.28 -- 8.43 1.01 27,605 2.08 2.08 8.28 -- 8.48 2.15 4,223 0.88 0.88 9.48 -- 9.06 (0.35)(d) 23,214 1.38(b) 1.33(b) 8.55(b) 57 9.05 (0.92)(d) 7,929 2.04(b) 2.04(b) 7.84(b) -- 9.05 (0.90)(d) 9,534 2.04(b) 2.04(b) 7.83(b) -- 9.10 0.02(d) 2,955 0.89(b) 0.89(b) 8.99(b) -- 9.75 3.47 17,465 1.41 1.36 7.74 53 9.74 2.80 7,436 2.08 2.08 7.03 -- 9.74 2.81 8,573 2.09 2.09 7.01 -- 9.78 3.98 2,314 0.90 0.90 8.20 -- 10.15 3.33(d) 8,507 1.58(b) 1.40(b) 7.06(b) 11 10.14 3.09(d) 2,322 2.31(b) 2.10(b) 6.50(b) -- 10.14 3.08(d) 2,278 2.31(b) 2.10(b) 6.49(b) -- 10.16 3.51(d) 1,034 1.17(b) 0.95(b) 7.48(b) --
183 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD TOTAL RETURN BOND FUND For the Year Ended October 31, 2002(g) Class A.................................... $10.90 $ .47 $ -- $(0.52) $(0.07) $ -- Class B.................................... 10.85 .40 -- (0.45) (0.07) -- Class C.................................... 10.89 .40 -- (0.45) (0.07) -- Class Y.................................... 10.99 .45 0.08 (0.58) (0.07) -- For the Year Ended October 31, 2001 Class A.................................... 10.14 0.55 0.73 (0.52) -- -- Class B.................................... 10.10 0.48 0.72 (0.45) -- -- Class C.................................... 10.14 0.49 0.71 (0.45) -- -- Class Y.................................... 10.22 0.61 0.73 (0.57) -- -- For the Ten Months Ended October 31, 2000 Class A.................................... 9.93 0.50 0.19 (0.48) -- -- Class B.................................... 9.90 0.43 0.20 (0.43) -- -- Class C.................................... 9.93 0.44 0.20 (0.43) -- -- Class Y.................................... 9.99 0.54 0.20 (0.51) -- -- For the Year Ended December 31, 1999 Class A.................................... 10.76 0.54 (0.83) (0.52) (0.02) -- Class B.................................... 10.72 0.47 (0.82) (0.45) (0.02) -- Class C.................................... 10.76(f) 0.47(f) (0.82)(f) (0.46)(f) (0.02)(f) -- Class Y.................................... 10.81 0.55 (0.80) (0.55) (0.02) -- For the Year Ended December 31, 1998 Class A.................................... 10.61 0.54 0.23 (0.54) (0.08) -- Class B.................................... 10.58 0.47 0.22 (0.47) (0.08) -- Class Y.................................... 10.64 0.58 0.24 (0.57) (0.08) -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 10.70(f) 0.19(f) 0.15(f) (0.21)(f) (0.07)(f) -- For the Year Ended December 31, 1997 Class A.................................... 10.26 0.57 0.50 (0.56) (0.16) -- Class B.................................... 10.25 0.53 0.46 (0.50) (0.16) -- Class Y.................................... 10.27 0.58 0.54 (0.59) (0.16) -- THE TAX-FREE MINNESOTA FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... 10.29 0.26 0.16 (0.25) -- -- Class B.................................... 10.27 0.20 0.20 (0.20) -- -- Class C.................................... 10.27 0.20 0.21 (0.20) -- -- Class Y.................................... 10.29 0.29 0.20 (0.29) -- -- For the Year Ended October 31, 2002 Class E.................................... 10.45 0.40 0.07 (0.39) -- -- Class H.................................... 10.44 0.29 0.07 (0.28) -- -- Class L.................................... 10.42 0.37 0.06 (0.36) -- -- Class M.................................... 10.42 0.29 0.06 (0.28) -- -- Class N.................................... 10.44 0.29 0.06 (0.28) -- -- For the One-Month Period Ended October 31, 2001 Class E.................................... 10.35 0.04 0.10 (0.04) -- -- Class H.................................... 10.34 0.03 0.10 (0.03) -- -- Class L.................................... 10.31 0.04 0.11 (0.04) -- -- Class M.................................... 10.31 0.03 0.11 (0.03) -- -- Class N.................................... 10.34 0.03 0.10 (0.03) -- -- For the Year Ended September 30, 2001 Class E.................................... 9.91 0.48 0.45 (0.49) -- -- Class H.................................... 9.91 0.38 0.44 (0.39) -- -- Class L.................................... 9.88 0.45 0.45 (0.47) -- -- Class M.................................... 9.88 0.38 0.44 (0.39) -- -- Class N.................................... 9.90 0.38 0.45 (0.39) -- -- For the Year Ended September 30, 2000 Class E.................................... 9.94 0.51 (0.04) (0.50) -- -- Class H.................................... 9.93 0.42 (0.04) (0.40) -- -- Class L.................................... 9.91 0.48 (0.04) (0.47) -- -- Class M.................................... 9.90 0.42 (0.04) (0.40) -- -- Class N.................................... 9.93 0.41 (0.04) (0.40) -- -- For the Year Ended September 30, 1999 Class E.................................... 10.77 0.50 (0.67) (0.49) (0.17) -- Class H.................................... 10.76 0.39 (0.67) (0.38) (0.17) -- Class L.................................... 10.74 0.47 (0.67) (0.46) (0.17) -- Class M.................................... 10.73 0.39 (0.67) (0.38) (0.17) -- Class N.................................... 10.73 0.42 (0.67) (0.38) (0.17) -- For the Year Ended September 30, 1998 Class E.................................... 10.46 0.52 0.32 (0.52) (0.01) -- Class H.................................... 10.44 0.42 0.32 (0.41) (0.01) -- Class L.................................... 10.43 0.49 0.32 (0.49) (0.01) -- Class M.................................... 10.42 0.41 0.32 (0.41) (0.01) -- Class N.................................... 10.44 0.39 0.32 (0.41) (0.01) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 184 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $10.78 4.50% $215,083 1.42% 1.25% 4.65% 149% 10.73 3.77 98,028 2.10 1.95 3.92 -- 10.77 3.80 107,479 1.98 1.95 3.92 -- 10.87 5.01 39,778 0.78 0.78 5.16 -- 10.90 12.96 122,423 1.30 1.25 5.00 196 10.85 12.12 55,999 1.96 1.95 4.30 -- 10.89 12.12 62,222 1.97 1.95 4.30 -- 10.99 13.46 43,635 0.75 0.75 5.50 -- 10.14 7.17(d) 37,290 1.29(b) 1.24(b) 5.88(b) 140 10.10 6.48(d) 22,197 1.95(b) 1.95(b) 5.17(b) -- 10.14 6.55(d) 16,886 1.94(b) 1.94(b) 5.18(b) -- 10.22 7.60(d) 30,334 0.77(b) 0.77(b) 6.34(b) -- 9.93 (2.71) 57,320 1.29 1.24 5.32 113 9.90 (3.30) 21,442 1.94 1.94 4.62 -- 9.93(f) (3.36) 18,136 1.97 1.95 4.62 -- 9.99 (2.31) 28,052 0.80 0.80 5.77 -- 10.76 7.48 47,143 1.32 1.25 5.04 135 10.72 6.70 16,772 2.01 1.95 4.32 -- 10.81 7.98 10,766 0.84 0.80 5.48 -- 10.76(f) 3.19(d) 5,420 2.13(b) 1.95(b) 4.13(b) -- 10.61 10.80 28,589 1.49 1.25 5.59 220 10.58 9.96 5,745 2.19 1.95 4.85 -- 10.64 11.30 5,756 1.01 0.80 5.98 -- 10.46 4.16(d) 2,073 1.37(b) 1.15(b) 3.57(b) 36 10.47 3.93(d) 238 2.09(b) 1.85(b) 2.73(b) -- 10.48 4.03(d) 304 1.92(b) 1.85(b) 2.79(b) -- 10.49 4.92(d) 1 0.65(b) 0.65(b) 3.83(b) -- 10.53 4.58 31,414 0.79 0.79 3.81 36 10.52 3.56 577 1.81 1.81 2.81 -- 10.49 4.22 3,344 1.04 1.04 3.56 -- 10.49 3.46 562 1.79 1.79 2.81 -- 10.51 3.46 203 1.79 1.79 2.81 -- 10.45 1.33(d) 32,533 0.84(b) 0.84(b) 4.28(b) -- 10.44 1.25(d) 1,094 1.84(b) 1.84(b) 3.28(b) -- 10.42 1.41(d) 3,543 1.09(b) 1.09(b) 4.03(b) -- 10.42 1.35(d) 772 1.84(b) 1.84(b) 3.28(b) -- 10.44 1.25(d) 203 1.84(b) 1.84(b) 3.28(b) -- 10.35 9.58 32,259 0.85 0.85 4.70 18 10.34 8.43 1,086 1.85 1.85 3.70 -- 10.31 9.24 3,570 1.10 1.10 4.45 -- 10.31 8.45 789 1.85 1.85 3.70 -- 10.34 8.55 200 1.85 1.85 3.70 -- 9.91 4.87 33,088 0.86 0.86 5.12 56 9.91 3.95 1,076 1.86 1.86 4.12 -- 9.88 4.63 3,454 1.11 1.11 4.87 -- 9.88 3.96 829 1.86 1.86 4.12 -- 9.90 3.84 255 1.86 1.86 4.12 -- 9.94 (1.71) 37,396 0.86 0.86 4.73 55 9.93 (2.73) 1,401 1.86 1.86 3.73 -- 9.91 (1.94) 3,240 1.11 1.11 4.48 -- 9.90 (2.73) 860 1.86 1.86 3.73 -- 9.93 (2.45) 247 1.86 1.86 3.73 -- 10.77 8.25 42,170 0.91 0.91 4.94 55 10.76 7.26 1,458 1.91 1.91 3.94 -- 10.74 8.13 3,170 1.16 1.16 4.69 -- 10.73 7.18 1,271 1.91 1.91 3.94 -- 10.73 6.97 194 1.91 1.91 3.94 --
185 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD TAX-FREE NATIONAL FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... $10.99 $0.26 $ 0.30 $(0.27) $ -- $ -- Class B.................................... 10.97 0.20 0.25 (0.21) -- -- Class C.................................... 10.97 0.20 0.27 (0.21) -- -- Class Y.................................... 10.99 0.33 0.27 (0.31) -- -- For the Year Ended October 31, 2002 Class E.................................... 11.18 0.41 0.12 (0.40) (0.04) -- Class H.................................... 11.15 0.32 0.11 (0.30) (0.04) -- Class L.................................... 11.16 0.39 0.12 (0.38) (0.04) -- Class M.................................... 11.15 0.31 0.12 (0.30) (0.04) -- Class N.................................... 11.13 0.31 0.12 (0.30) (0.04) -- For the One-Month Period Ended October 31, 2001 Class E.................................... 11.07 0.04 0.11 (0.04) -- -- Class H.................................... 11.03 0.03 0.12 (0.03) -- -- Class L.................................... 11.05 0.04 0.11 (0.04) -- -- Class M.................................... 11.04 0.03 0.11 (0.03) -- -- Class N.................................... 11.02 0.03 0.11 (0.03) -- -- For the Year Ended September 30, 2001 Class E.................................... 10.52 0.49 0.56 (0.50) -- -- Class H.................................... 10.49 0.37 0.56 (0.39) -- -- Class L.................................... 10.50 0.46 0.56 (0.47) -- -- Class M.................................... 10.49 0.38 0.56 (0.39) -- -- Class N.................................... 10.48 0.38 0.56 (0.40) -- -- For the Year Ended September 30, 2000 Class E.................................... 10.49 0.52 0.02 (0.51) -- -- Class H.................................... 10.46 0.42 0.02 (0.41) -- -- Class L.................................... 10.47 0.50 0.02 (0.49) -- -- Class M.................................... 10.46 0.42 0.02 (0.41) -- -- Class N.................................... 10.45 0.42 0.02 (0.41) -- -- For the Year Ended September 30, 1999 Class E.................................... 11.38 0.50 (0.78) (0.49) (0.12) -- Class H.................................... 11.35 0.39 (0.78) (0.38) (0.12) -- Class L.................................... 11.37 0.47 (0.78) (0.47) (0.12) -- Class M.................................... 11.36 0.38 (0.78) (0.38) (0.12) -- Class N.................................... 11.34 0.39 (0.78) (0.38) (0.12) -- For the Year Ended September 30, 1998 Class E.................................... 11.07 0.52 0.34 (0.51) (0.04) -- Class H.................................... 11.06 0.40 0.34 (0.41) (0.04) -- Class L.................................... 11.06 0.50 0.34 (0.49) (0.04) -- Class M.................................... 11.05 0.42 0.34 (0.41) (0.04) -- Class N.................................... 11.04 0.41 0.34 (0.41) (0.04) --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. See Notes to Financial Statements. 186 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $11.28 5.17%(d) $12,192 1.63%(b) 1.15%(b) 3.31%(b) 47% 11.21 4.18(d) 3,764 2.33(b) 1.85(b) 2.54(b) -- 11.23 4.37(d) 3,121 2.18(b) 1.85(b) 2.57(b) -- 11.28 5.52(d) 1 0.63(b) 0.63(b) 4.15(b) -- 11.27 4.93 39,423 0.94 0.94 3.70 47 11.24 3.99 2,895 1.95 1.85 2.83 -- 11.25 4.72 7,360 1.19 1.15 3.50 -- 11.24 3.99 1,552 1.95 1.85 2.80 -- 11.22 3.99 600 1.95 1.85 2.80 -- 11.18 1.35(d) 42,441 0.95(b) 0.95(b) 4.21(b) -- 11.15 1.36(d) 4,679 1.95(b) 1.95(b) 3.21(b) -- 11.16 1.33(d) 8,029 1.20(b) 1.20(b) 3.96(b) -- 11.15 1.27(d) 1,723 1.95(b) 1.95(b) 3.21(b) -- 11.13 1.27(d) 538 1.95(b) 1.95(b) 3.21(b) -- 11.07 10.18 42,331 0.97 0.97 4.49 28 11.03 9.03 4,853 1.97 1.97 3.49 -- 11.05 9.91 7,892 1.22 1.22 4.24 -- 11.04 9.14 1,701 1.97 1.97 3.49 -- 11.02 9.06 469 1.97 1.97 3.49 -- 10.52 5.33 42,212 0.96 0.96 4.96 64 10.49 4.29 5,021 1.96 1.96 3.96 -- 10.50 5.09 6,509 1.21 1.21 4.71 -- 10.49 4.29 1,540 1.96 1.96 3.96 -- 10.48 4.30 289 1.96 1.96 3.96 -- 10.49 (2.56) 47,140 0.94 0.94 4.56 89 10.46 (3.52) 6,019 1.94 1.94 3.56 -- 10.47 (2.87) 8,247 1.19 1.19 4.31 -- 10.46 (3.61) 1,752 1.94 1.94 3.56 -- 10.45 (3.53) 548 1.94 1.94 3.56 -- 11.38 7.97 56,959 0.98 0.98 4.65 74 11.35 6.76 6,099 1.98 1.98 3.65 -- 11.37 7.75 8,308 1.23 1.23 4.40 -- 11.36 6.95 1,493 1.98 1.98 3.65 -- 11.34 6.86 493 1.98 1.98 3.65 --
187 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD U.S. GOVERNMENT SECURITIES FUND For the Period February 19, 2002 through October 31, 2002 Class A.................................... $9.50 $0.26 $ 0.38 $(0.26) $ -- $ -- Class B.................................... 9.46 0.21 0.38 (0.21) -- -- Class C.................................... 9.46 0.21 0.38 (0.21) -- -- Class Y.................................... 9.50 .32 .36 (0.29) -- -- For the Year Ended October 31, 2002 Class E.................................... 9.67 0.42 0.19 (0.41) -- -- Class H.................................... 9.64 0.32 0.19 (0.32) -- -- Class L.................................... 9.67 0.39 0.20 (0.39) -- -- Class M.................................... 9.64 0.32 0.20 (0.32) -- -- Class N.................................... 9.64 0.32 0.20 (0.32) -- -- For the Three-Month Period Ended October 31, 2001 Class E.................................... 9.37 0.13 0.30 (0.13) -- -- Class H.................................... 9.34 0.10 0.30 (0.10) -- -- Class L.................................... 9.37 0.12 0.30 (0.12) -- -- Class M.................................... 9.34 0.10 0.30 (0.10) -- -- Class N.................................... 9.34 0.10 0.30 (0.10) -- -- For the Year Ended July 31, 2001 Class E.................................... 8.86 0.54 0.52 (0.55) -- -- Class H.................................... 8.83 0.45 0.52 (0.46) -- -- Class L.................................... 8.86 0.52 0.52 (0.53) -- -- Class M.................................... 8.83 0.45 0.52 (0.46) -- -- Class N.................................... 8.83 0.45 0.52 (0.46) -- -- For the Year Ended July 31, 2000 Class E.................................... 8.96 0.52 (0.10) (0.52) -- -- Class H.................................... 8.94 0.43 (0.10) (0.44) -- -- Class L.................................... 8.96 0.50 (0.10) (0.50) -- -- Class M.................................... 8.94 0.43 (0.10) (0.44) -- -- Class N.................................... 8.93 0.44 (0.10) (0.44) -- -- For the Year Ended July 31, 1999 Class E.................................... 9.30 0.49 (0.34) (0.49) -- -- Class H.................................... 9.28 0.40 (0.34) (0.40) -- -- Class L.................................... 9.30 0.47 (0.34) (0.47) -- -- Class M.................................... 9.28 0.40 (0.34) (0.40) -- -- Class N.................................... 9.27 0.40 (0.34) (0.40) -- -- For the Year Ended July 31, 1998 Class E.................................... 9.16 0.52 0.14 (0.52) -- -- Class H.................................... 9.14 0.43 0.14 (0.43) -- -- Class L.................................... 9.16 0.50 0.14 (0.50) -- -- Class M.................................... 9.14 0.43 0.14 (0.43) -- -- Class N.................................... 9.13 0.43 0.14 (0.43) -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. See Notes to Financial Statements. 188 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $9.88 6.87%(d) $ 75,245 1.59%(b) 1.20%(b) 3.58%(b) 218% 9.84 6.36(d) 39,276 2.28(b) 1.90(b) 2.87(b) -- 9.84 6.36(d) 40,708 2.11(b) 1.90(b) 2.86(b) -- 9.89 7.32(d) 1 0.74(b) 0.74(b) 4.36(b) -- 9.87 6.55 156,085 0.81 0.81 4.45 218 9.83 5.41 9,319 1.81 1.81 3.45 -- 9.87 6.29 49,048 1.06 1.06 4.20 -- 9.84 5.51 6,660 1.81 1.81 3.44 -- 9.84 5.52 1,717 1.81 1.81 3.47 -- 9.67 4.57(d) 187,712 0.79(b) 0.79(b) 5.25 32 9.64 4.31(d) 10,770 1.79(b) 1.79(b) 4.25 -- 9.67 4.50(d) 52,579 1.04(b) 1.04(b) 5.01 -- 9.64 4.32(d) 6,582 1.79(b) 1.79(b) 4.25 -- 9.64 4.31(d) 2,275 1.79(b) 1.79(b) 4.25 -- 9.37 12.30 182,170 0.79 0.79 5.93 136 9.34 11.24 10,078 1.79 1.79 4.92 -- 9.37 12.02 47,798 1.04 1.04 5.67 -- 9.34 11.24 5,284 1.79 1.79 4.92 -- 9.34 11.24 1,603 1.79 1.79 4.92 -- 8.86 4.91 184,520 0.79 0.79 5.96 181 8.83 3.79 8,345 1.79 1.79 4.96 -- 8.86 4.62 43,620 1.04 1.04 5.71 -- 8.83 3.79 4,264 1.79 1.79 4.96 -- 8.83 3.91 1,606 1.79 1.79 4.93 -- 8.96 1.56 254,096 0.78 0.78 5.32 75 8.94 0.53 10,262 1.78 1.78 4.32 -- 8.96 1.30 49,274 1.03 1.03 5.07 -- 8.94 0.53 4,703 1.78 1.78 4.32 -- 8.93 0.52 3,071 1.78 1.78 4.32 -- 9.30 7.42 285,060 0.79 0.79 5.62 118 9.28 6.40 10,816 1.79 1.79 4.62 -- 9.30 7.14 52,439 1.04 1.04 5.37 -- 9.28 6.40 3,161 1.79 1.79 4.62 -- 9.27 6.41 1,267 1.79 1.79 4.62 --
189 HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(A) -- ---------------------------------------------------------------------------------- NET REALIZED AND DISTRIBUTIONS NET ASSET NET UNREALIZED DIVIDENDS FROM VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL --------- ---------- ------------ ---------- ------------- ------------- THE HARTFORD MONEY MARKET FUND For the Year Ended October 31, 2002(g) Class A.................................... $1.00 $0.011 $ -- $(0.011) $ -- $ -- Class B.................................... 1.00 0.004 -- (0.004) -- -- Class C.................................... 1.00 0.004 -- (0.004) -- -- Class Y.................................... 1.00 0.017 -- (0.017) -- -- For the Year Ended October 31, 2001 Class A.................................... 1.00 0.04 -- (0.04) -- -- Class B.................................... 1.00 0.03 -- (0.03) -- -- Class C.................................... 1.00 0.03 -- (0.03) -- -- Class Y.................................... 1.00 0.04 -- (0.04) -- -- For the Ten Months Ended October 31, 2000 Class A.................................... 1.00 0.04 -- (0.04) -- -- Class B.................................... 1.00 0.04 -- (0.04) -- -- Class C.................................... 1.00 0.04 -- (0.04) -- -- Class Y.................................... 1.00 0.05 -- (0.05) -- -- For the Year Ended December 31, 1999 Class A.................................... 1.00 0.04 -- (0.04) -- -- Class B.................................... 1.00 0.04 -- (0.04) -- -- Class C.................................... 1.00 0.04 -- (0.04) -- -- Class Y.................................... 1.00 0.05 -- (0.05) -- -- For the Year Ended December 31, 1998 Class A.................................... 1.00 0.05 -- (0.05) -- -- Class B.................................... 1.00 0.04 -- (0.04) -- -- Class Y.................................... 1.00 0.05 -- (0.05) -- -- From inception August 1, 1998, through December 31, 1998 Class C.................................... 1.00 0.02 -- (0.02) -- -- For the Year Ended December 31, 1997 Class A.................................... 1.00 0.05 -- (0.05) -- -- Class Y.................................... 1.00 0.05 -- (0.05) -- -- From inception August 22, 1997 to December 31, 1997 Class B.................................... 1.00 0.01 -- (0.01) -- --
- --------------- (a) Information presented relates to a share of capital share outstanding throughout the indicated period. (b) Annualized. (c) Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period and no sales charge. Total return would be reduced if sales charges were taken into account. (d) Not annualized. (e) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (f) Per share amounts have been restated to reflect a reverse stock split for Class C shares effective February 11, 1999. (g) Per share amounts have been calculated using average shares outstanding method. See Notes to Financial Statements. 190 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET ASSETS EXPENSES EXPENSES INVESTMENT NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME (LOSS) PORTFOLIO VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE TURNOVER END OF PERIOD RETURN(C) (000'S) BEFORE WAIVERS AFTER WAIVERS NET ASSETS RATE(E) ------------- --------- ---------- -------------- ------------- ------------- --------- $1.00 1.09% $302,862 1.30% 1.00% 1.06% N/A 1.00 0.43 99,048 1.96 1.70 0.37 -- 1.00 0.42 65,894 1.82 1.70 0.37 -- 1.00 1.72 2,815 0.62 0.55 1.51 -- 1.00 4.02 86,748 1.19 1.00 3.63 N/A 1.00 3.31 48,998 1.85 1.70 2.93 -- 1.00 3.31 53,873 1.82 1.70 2.93 -- 1.00 4.49 33,309 0.61 0.55 4.08 -- 1.00 4.54(d) 43,897 1.20(b) 1.00(b) 5.35(b) N/A 1.00 3.94(d) 14,974 1.85(b) 1.70(b) 4.65(b) -- 1.00 3.93(d) 6,842 1.85(b) 1.70(b) 4.65(b) -- 1.00 4.94(d) 18,325 0.65(b) 0.55(b) 5.80(b) -- 1.00 4.32 44,663 1.15 1.00 4.25 N/A 1.00 3.59 25,762 1.81 1.70 3.55 -- 1.00 3.59 9,904 1.84 1.70 3.56 -- 1.00 4.80 8,953 0.64 0.55 4.70 -- 1.00 4.69 29,424 1.25 1.00 4.57 N/A 1.00 3.97 11,936 1.86 1.70 3.83 -- 1.00 5.16 5,320 0.71 0.55 4.99 -- 1.00 1.58(d) 1,203 2.02(b) 1.70(b) 3.57(b) -- 1.00 4.73 22,578 1.28 1.00 4.67 N/A 1.00 5.23 2,638 0.82 0.55 5.13 -- 1.00 1.45(d) 4,449 3.63(b) 1.70(b) 3.92(b) --
191 REPORT OF INDEPENDENT AUDITORS TO THE SHAREHOLDERS AND BOARD OF DIRECTORS THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. - -------------------------------------------------------------------------------- We have audited the accompanying statements of assets and liabilities, including the schedules of investments of The Hartford Global Communications Fund, The Hartford Global Financial Services Fund, The Hartford Global Health Fund, The Hartford Global Technology Fund, The Hartford International Small Company Fund, The Hartford SmallCap Growth Fund, The Hartford Small Company Fund, The Hartford International Capital Appreciation Fund, The Hartford Capital Appreciation Fund, The Hartford Growth Opportunities Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund, The Hartford Value Opportunities Fund, The Hartford International Opportunities Fund, The Hartford Global Leaders Fund, The Hartford Focus Fund, The Hartford Growth Fund, The Hartford Stock Fund, The Hartford Value Fund, The Hartford Growth and Income Fund, The Hartford Dividend and Growth Fund, The Hartford Advisers Fund, The Hartford High Yield Fund, The Hartford Total Return Bond Fund, The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund, The Hartford U.S. Government Securities Fund and The Hartford Money Market Fund (certain funds within The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.) (the "Funds") as of October 31, 2002, and the related statements of operations, changes in net assets and financial highlights for the year ended October 31, 2002. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets and financial highlights for the periods presented through October 31, 2001, were audited by other auditors whose reports dated December 6, 2001 and December 7, 2001, expressed unqualified opinions on those financial statements and financial highlights. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2002, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights audited by us as referred to above present fairly, in all material respects, the financial position for each of the respective funds of The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc., at October 31, 2002, and the results of their operations, the changes in their net assets, and their financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States. -s- ERNST & YOUNG LLP Minneapolis, Minnesota December 6, 2002 192 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- The information set forth below is for the fund's fiscal year as required by federal tax law. Shareholders, however, must report distributions on a calendar year basis for income tax purposes which may include distributions of two fiscal years of the fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in early 2002. Shareholders may wish to consult a tax advisor on how to report distributions for state and local purposes. Dividend and Growth Fund and Advisors Fund paid income distributions, taxable as dividend income, of which 100.00% and 65.00%, respectively, qualified for deduction by corporations. The income received from federal obligations is as follows:
TOTAL RETURN U.S. GOVERNMENT ADVISERS FUND BOND FUND SECURITIES FUND ------------- ------------ --------------- U.S. Treasury............................................... 20.44% 1.20% 10.60% Other Direct Federal Obligations............................ 7.20% 4.06% 4.08% ------- ------- ------- Total Direct Federal Obligations.......................... 27.64% 5.26% 14.68% Other Securities.......................................... 72.36% 94.74% 85.32% ------- ------- ------- Total....................................................... 100.00% 100.00% 100.00% ------- ------- -------
Detailed below are the per share distributions made for the fiscal year ended October 31, 2002.
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y - ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- GLOBAL HEALTH Short-Term Capital Gain................... 11/11/2001 0.181 0.181 0.181 0.181 Long-Term Capital Gain... 11/11/2001 0.098 0.098 0.098 0.098 ----- ----- ----- ----- Total Distributions.... 0.279 0.279 0.279 0.279 ----- ----- ----- ----- SMALLCAP GROWTH Long-Term Capital Gain... 11/12/2001 0.326 0.326 0.326 0.326 ----- ----- ----- ----- GROWTH OPPORTUNITIES Long-Term Capital Gain... 11/12/2001 0.209 0.209 0.209 0.209 ----- ----- ----- ----- VALUE OPPORTUNITIES Short-Term Capital Gain................... 11/12/2001 0.457 0.457 0.457 0.457 Long-Term Capital Gain... 11/12/2001 0.353 0.353 0.353 0.353 ----- ----- ----- ----- Total Distributions.... 0.810 0.810 0.810 0.810 ----- ----- ----- ----- GROWTH Long-Term Capital Gain... 11/12/2001 0.004 0.004 0.004 0.004 ----- ----- ----- ----- VALUE Short-Term Capital Gain................... 11/9/2001 0.488 0.488 0.488 0.488 ----- ----- ----- ----- DIVIDEND AND GROWTH Long-Term Capital Gain... 11/9/2001 0.245 0.245 0.245 0.245 ----- ----- ----- ----- Income................... 12/21/2001 0.042 0.016 0.019 0.058 Income................... 3/25/2002 0.029 0.002 0.006 0.046 Income................... 6/25/2002 0.030 0.002 0.002 0.041 Income................... 9/25/2002 0.018 0.000 0.000 0.070 ----- ----- ----- ----- Total Income Distributions........ 0.119 0.020 0.027 0.215 ----- ----- ----- ----- ADVISERS Income................... 12/21/2001 0.068 0.042 0.044 0.085 Income................... 3/25/2002 0.044 0.018 0.019 0.063 Income................... 6/25/2002 0.055 0.030 0.030 0.073 Income................... 9/25/2002 0.061 0.036 0.046 0.081 ----- ----- ----- ----- Total Income Distributions........ 0.228 0.126 0.139 0.302 ----- ----- ----- ----- FUND CLASS Z - ---- ------- GLOBAL HEALTH Short-Term Capital Gain................... Long-Term Capital Gain... Total Distributions.... SMALLCAP GROWTH Long-Term Capital Gain... GROWTH OPPORTUNITIES Long-Term Capital Gain... 0.209 ----- VALUE OPPORTUNITIES Short-Term Capital Gain................... Long-Term Capital Gain... Total Distributions.... GROWTH Long-Term Capital Gain... VALUE Short-Term Capital Gain................... DIVIDEND AND GROWTH Long-Term Capital Gain... Income................... Income................... Income................... Income................... Total Income Distributions........ ADVISERS Income................... Income................... Income................... Income................... Total Income Distributions........
193 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED) - --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y - ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- HIGH YIELD Income................... 11/27/2001 0.069 0.063 0.063 0.073 Income................... 12/21/2001 0.066 0.061 0.062 0.069 Income................... 1/28/2002 0.065 0.059 0.061 0.068 Income................... 2/12/2002 0.039 0.036 0.036 0.040 Income................... 2/25/2002 0.020 0.018 0.018 0.020 Income................... 3/25/2002 0.064 0.059 0.059 0.067 Income................... 4/25/2002 0.058 0.053 0.053 0.061 Income................... 5/28/2002 0.058 0.053 0.053 0.061 Income................... 6/25/2002 0.063 0.059 0.059 0.067 Income................... 7/26/2002 0.066 0.062 0.062 0.069 Income................... 8/27/2002 0.067 0.063 0.063 0.071 Income................... 9/25/2002 0.066 0.061 0.062 0.069 Income................... 10/28/2002 0.055 0.051 0.052 0.059 ----- ----- ----- ----- Total Income Distributions........ 0.756 0.698 0.703 0.794 ----- ----- ----- ----- TOTAL RETURN BOND Short-Term Capital Gain................... 11/9/2001 0.024 0.024 0.024 0.024 Long-Term Capital Gain... 11/9/2001 0.042 0.042 0.042 0.042 ----- ----- ----- ----- Total Capital Gain Distributions........ 0.066 0.066 0.066 0.066 ----- ----- ----- ----- Income................... 11/27/2001 0.045 0.039 0.039 0.052 Income................... 12/21/2001 0.042 0.035 0.037 0.046 Income................... 1/28/2002 0.042 0.035 0.036 0.046 Income................... 2/25/2002 0.041 0.035 0.035 0.046 Income................... 3/25/2002 0.044 0.037 0.038 0.048 Income................... 4/25/2002 0.041 0.034 0.035 0.045 Income................... 5/28/2002 0.041 0.034 0.035 0.045 Income................... 6/25/2002 0.044 0.038 0.038 0.048 Income................... 7/26/2002 0.053 0.046 0.046 0.057 Income................... 8/27/2002 0.042 0.036 0.036 0.047 Income................... 9/25/2002 0.050 0.044 0.044 0.056 Income................... 10/28/2002 0.039 0.032 0.032 0.042 ----- ----- ----- ----- Total Income Distributions........ 0.524 0.445 0.451 0.578 ----- ----- ----- ----- TAX-FREE NATIONAL* Short-Term Capital Gain................... 11/12/2001 0.025 0.025 0.025 0.025 0.025 Long-Term Capital Gain... 11/12/2001 0.019 0.019 0.019 0.019 0.019 ----- ----- ----- ----- ----- Total Capital Gain Distributions........ 0.044 0.044 0.044 0.044 0.044 ----- ----- ----- ----- ----- Income................... 11/30/2001 0.040 0.031 0.038 0.031 0.031 Income................... 12/31/2001 0.037 0.028 0.034 0.028 0.028 Income................... 1/31/2002 0.036 0.028 0.034 0.027 0.027 Income................... 2/25/2002 0.023 0.018 0.018 0.025 0.018 0.023 0.018 0.018 0.024 Income................... 3/25/2002 0.029 0.023 0.023 0.031 0.023 0.029 0.023 0.023 0.033 Income................... 4/25/2002 0.032 0.026 0.026 0.034 0.026 0.032 0.026 0.026 0.036 Income................... 5/28/2002 0.033 0.027 0.027 0.035 0.027 0.033 0.027 0.027 0.037 Income................... 6/25/2002 0.031 0.024 0.024 0.033 0.024 0.031 0.024 0.024 0.035 Income................... 7/26/2002 0.031 0.024 0.024 0.033 0.024 0.031 0.024 0.024 0.035 Income................... 8/27/2002 0.031 0.024 0.024 0.032 0.024 0.030 0.024 0.024 0.035 Income................... 9/25/2002 0.031 0.024 0.024 0.032 0.024 0.031 0.024 0.024 0.035 Income................... 10/28/2002 0.030 0.024 0.024 0.032 0.024 0.030 0.024 0.024 0.038 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions........ 0.271 0.214 0.214 0.400 0.301 0.376 0.300 0.300 0.308 ----- ----- ----- ----- ----- ----- ----- ----- ----- FUND CLASS Z - ---- ------- HIGH YIELD Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........ TOTAL RETURN BOND Short-Term Capital Gain................... Long-Term Capital Gain... Total Capital Gain Distributions........ Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........ TAX-FREE NATIONAL* Short-Term Capital Gain................... Long-Term Capital Gain... Total Capital Gain Distributions........ Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........
194 - --------------------------------------------------------------------------------
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y - ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- TAX-FREE MINNESOTA* Income................... 11/30/2001 0.039 0.030 0.037 0.030 0.030 Income................... 12/31/2001 0.034 0.026 0.032 0.026 0.026 Income................... 1/31/2002 0.035 0.026 0.033 0.026 0.026 Income................... 2/25/2002 0.023 0.018 0.018 0.025 0.018 0.023 0.018 0.018 0.023 Income................... 3/25/2002 0.026 0.021 0.021 0.029 0.021 0.029 0.021 0.021 0.030 Income................... 4/25/2002 0.026 0.021 0.021 0.029 0.021 0.027 0.021 0.021 0.030 Income................... 5/28/2002 0.029 0.023 0.023 0.032 0.023 0.029 0.023 0.023 0.033 Income................... 6/25/2002 0.028 0.022 0.022 0.031 0.022 0.029 0.022 0.022 0.032 Income................... 7/26/2002 0.029 0.022 0.022 0.032 0.022 0.029 0.022 0.022 0.032 Income................... 8/27/2002 0.030 0.023 0.023 0.032 0.023 0.030 0.023 0.023 0.033 Income................... 9/25/2002 0.029 0.023 0.023 0.031 0.023 0.029 0.023 0.023 0.033 Income................... 10/28/2002 0.034 0.027 0.027 0.036 0.027 0.034 0.027 0.027 0.042 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions........ 0.254 0.200 0.200 0.385 0.282 0.361 0.282 0.282 0.288 ----- ----- ----- ----- ----- ----- ----- ----- ----- U.S. GOVERNMENT SECURITIES Income................... 11/30/2001 0.040 0.032 0.038 0.032 0.032 Income................... 12/31/2001 0.040 0.032 0.038 0.032 0.032 Income................... 1/31/2002 0.040 0.032 0.038 0.032 0.032 Income................... 2/25/2002 0.024 0.019 0.019 0.026 0.019 0.024 0.019 0.019 0.026 Income................... 3/25/2002 0.032 0.027 0.027 0.035 0.028 0.033 0.028 0.028 0.035 Income................... 4/25/2002 0.033 0.028 0.028 0.036 0.029 0.034 0.029 0.029 0.036 Income................... 5/28/2002 0.033 0.027 0.027 0.036 0.028 0.034 0.028 0.028 0.036 Income................... 6/25/2002 0.032 0.026 0.026 0.036 0.027 0.033 0.027 0.027 0.036 Income................... 7/26/2002 0.028 0.022 0.022 0.031 0.023 0.029 0.023 0.023 0.031 Income................... 8/27/2002 0.027 0.021 0.021 0.030 0.022 0.028 0.022 0.022 0.031 Income................... 9/25/2002 0.027 0.021 0.021 0.030 0.022 0.028 0.022 0.022 0.030 Income................... 10/28/2002 0.026 0.021 0.021 0.030 0.022 0.028 0.022 0.022 0.031 ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Income Distributions........ 0.262 0.212 0.212 0.410 0.316 0.385 0.316 0.316 0.292 ----- ----- ----- ----- ----- ----- ----- ----- ----- FUND CLASS Z - ---- ------- TAX-FREE MINNESOTA* Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........ U.S. GOVERNMENT SECURITIES Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Income................... Total Income Distributions........
* Ordinary distributions from the Tax-Free Minnesota and Tax-Free National were exempt from federal income taxation for non-corporate shareholders. 195 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. BOARD OF DIRECTORS AND OFFICER INFORMATION (UNAUDITED) - --------------------------------------------------------------------------------
NON-INTERESTED DIRECTORS - ----------------------------------------------------------------------------------------------------------------------------------- NUMBER OF TERM OF PORTFOLIOS IN POSITION HELD OFFICE* AND FUND COMPLEX OTHER WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS NAME, AGE AND ADDRESS COMPANY TIME SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR - ----------------------------------------------------------------------------------------------------------------------------------- WINIFRED ELLEN COLEMAN Director Since Ms. Coleman has served as President 75 N/A (age 70) 1996(1) of Saint Joseph College since 1991 27 Buckingham Lane, Since and President of Cashel House, Ltd. West Hartford, CT 06117 2002(2) (retail) since 1985. - ----------------------------------------------------------------------------------------------------------------------------------- DR. ROBERT M. GAVIN Director Since Mr. Gavin is an Educational 75 Mr. Gavin is a (age 62) 2002(1) consultant. Prior to September 1, director of Systems 751 Judd Street Since 2001, he was President of Cranbrook & Computer Marine on St. Croix, MN 1986(2) Education Community; and prior to Technology 55047 July 1996, President, Macalester Corporation College, St. Paul MN. - ----------------------------------------------------------------------------------------------------------------------------------- DUANE E. HILL Director Since Mr. Hill is Partner Emeritus and a 75 N/A (age 57) 2001(1) founding partner of TSG Capital 177 Broad Street, Since Group, a private equity investment 12th Floor 2002(2) firm that serves as sponsor and lead Stamford, CT 06901 investor in leveraged buyouts of middle market companies. Mr. Hill is also a Partner of TSG Ventures L.P., a private equity investment company that invests primarily in minority-owned small businesses. - ----------------------------------------------------------------------------------------------------------------------------------- PHILLIP O. PETERSON Director Since Mr. Peterson is a mutual fund 75 N/A (age 58) 2002(1) industry consultant; He was a 11155 Kane Trail Since partner of KPMG LLP, through June Northfield, Minnesota 2000(2) 1999. - ----------------------------------------------------------------------------------------------------------------------------------- MILLARD HANDLEY PRYOR, JR. Director Since Mr. Pryor has served as Managing 75 Mr. Pryor is a (age 69) 1996(1) Director of Pryor & Clark Company Director of Infodata 80 Lamberton Road Since (real estate investment), Hartford, Systems, Inc. Windsor, CT 06095 2002(2) Connecticut, since June 1992. (software company) and CompuDyne Corporation (Security products and services). - ----------------------------------------------------------------------------------------------------------------------------------- JOHN KELLEY SPRINGER Director Since Mr. Springer served as Chairman of 75 N/A (age 71) 1996(1) Medspan, Inc. (health maintenance 27 Birch Point Lane Since organization) until March 2002. Sunapee, NH 03782 2002(2) - -----------------------------------------------------------------------------------------------------------------------------------
* Term of Office: Each director may serve until his or her successor is elected and qualifies. (1) Term for The Hartford Retail Funds, Inc. (2) Term for The Hartford Retail Funds II, Inc. 196 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. BOARD OF DIRECTORS AND OFFICER INFORMATION -- (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ------------------------------------------------------------------------------------------------ TERM OF POSITION HELD OFFICE** AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) NAME, AGE AND ADDRESS COMPANY TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------ THOMAS MICHAEL MARRA*** Chairman of Since Mr. Marra is President and Chief (age 44) the Board 2002(1,2) Operating Officer of Hartford Life, P.O. Box 2999 Inc. He is also a member of the Hartford, CT 06104-2999 Board of Directors and a member of the Office of the Chairman for The Hartford Financial Services Group, Inc., the parent company of Hartford Life. Mr. Marra was named President of Hartford Life in 2001 and COO in 2000, and served as Executive Vice President and Director of Hartford Life's Investment Products Division from 1998 to 2000. He was head of Hartford Life's Individual Life and Annuities Division from 1994 to 1998 after being promoted to Senior Vice President in 1994 and Executive Vice President in 1996. Mr. Marra is also a Managing Member and President of HIFSCO and HL Advisors. - ------------------------------------------------------------------------------------------------ LOWNDES ANDREW SMITH*** Director Since 1996(1) Mr. Smith served as Vice Chairman (age 63) Since 2002(2) of Hartford Financial Services 62 Little Stannard Beach Group, Inc. from February 1997 to Road January 2002, as President and Westbrook, CT 06498 Chief Executive Officer of Hartford Life, Inc. from February 1997 to January 2002, and as President and Chief Operating Officer of The Hartford Life Insurance Companies from January 1989 to January 2002. - ------------------------------------------------------------------------------------------------ DAVID M. ZNAMIEROWSKI*** President and Since 2001(1) Mr. Znamierowski currently serves (age 41) Director**** as President of Hartford Investment 55 Farmington Avenue Management Company ("HIMCO") and Hartford, CT 06105 Senior Vice President, Chief Investment Officer for Hartford Life, Inc. Mr. Znamierowski is also a Managing Member and Senior Vice President of Hartford Investment Financial Services, LLC ("HIFSCO") and HL Investment Advisers, LLC ("HL Advisors"). Mr. Znamierowski is the Group Senior Vice President and Chief Investment Officer for The Hartford. - ------------------------------------------------------------------------------------------------ ROBERT W. BELTZ, JR. Vice President Since 2002(1) Mr. Beltz currently serves as Vice (age 53) Since 1993(2) President, Securities Operations of 500 Bielenberg Drive Hartford Administrative Services Woodbury, MN 55125 Company ("HASCO"). He also has served as Assistant Vice President of Hartford Life Insurance Company since December 2001. - ------------------------------------------------------------------------------------------------ INTERESTED DIRECTORS AND O INTERESTED DIRECTORS AND OFFICERS - -------------------------- ----------------------------------- NUMBER OF PORTFOLIOS IN FUND COMPLEX OTHER OVERSEEN BY DIRECTORSHIPS NAME, AGE AND ADDRESS DIRECTOR HELD BY DIRECTOR - -------------------------- ----------------------------------- THOMAS MICHAEL MARRA*** 75 Mr. Marra is a (age 44) member of the Board P.O. Box 2999 of Directors of The Hartford, CT 06104-2999 Hartford Financial Services Group, Inc. - -------------------------------------------------------------------------------------------- LOWNDES ANDREW SMITH*** 75 N/A (age 63) 62 Little Stannard Beach Road Westbrook, CT 06498 - ------------------------------------------------------------------------------------------------ DAVID M. ZNAMIEROWSKI*** 51 N/A (age 41) 55 Farmington Avenue Hartford, CT 06105 - ------------------------------------------------------------------------------------------------ ROBERT W. BELTZ, JR. N/A N/A (age 53) 500 Bielenberg Drive Woodbury, MN 55125 - ------------------------------------------------------------------------------------------------
197 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. BOARD OF DIRECTORS AND OFFICER INFORMATION -- (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ------------------------------------------------------------------------------------------------ TERM OF POSITION HELD OFFICE** AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) NAME, AGE AND ADDRESS COMPANY TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------ WILLIAM H. DAVISON, JR. Vice President Since Mr. Davison is a Managing Director (age 45) 2002(1,2) and Director of Funds Management 55 Farmington Avenue Group of Hartford Investment Hartford, CT 06105 Management Company. - ------------------------------------------------------------------------------------------------ BRUCE FERRIS Vice President Since Mr. Ferris serves as Vice President (age 47) 2002(1,2) and a director of sales and P.O. Box 2999 marketing in the Investment Hartford, CT 06104-2999 Products Division of Hartford Life Insurance Company. - ------------------------------------------------------------------------------------------------ TAMARA L. FAGELY Vice Since 2002(1) Ms. Fagely has served as Assistant (age 44) President, Since 1993(2) Vice President of Hartford Life 500 Bielenberg Drive Controller and Insurance Company since 2001 and as Woodbury, MN 55125 Treasurer Vice President of Hartford Administrative Services Company since 1998; prior to 1998, Second Vice President of HASCO. - ------------------------------------------------------------------------------------------------ GEORGE RICHARD JAY Vice President Since 1996(1) Mr. Jay has served as Secretary and (age 50) Since 2001(2) Director, Life and Equity P.O. Box 2999 Accounting and Financial Control, Hartford, CT 06104-2999 of Hartford Life Insurance Company since 1987. - ------------------------------------------------------------------------------------------------ STEPHEN T. JOYCE Vice President Since 2000(1) Mr. Joyce currently serves as (age 43) Since 2001(2) Senior Vice President and director P.O. Box 2999 of investment products management Hartford, CT 06104-2999 for Hartford Life Insurance Company. Previously he served as Vice President (1997-1999) and Assistant Vice President (1994-1997) of Hartford Life Insurance Company. - ------------------------------------------------------------------------------------------------ DAVID N. LEVENSON Vice President Since 2000(1) Mr. Levenson serves as Senior Vice (age 36) Since 2001(2) President of Hartford Life P.O. Box Insurance Company and is Hartford, CT 06104-2999 responsible for the Company's mutual funds line of business. Mr. Levenson joined The Hartford in 1995. Mr. Levenson is also a senior vice president of HIFSCO. - ------------------------------------------------------------------------------------------------ RYAN JOHNSON Vice President Since Mr. Johnson has served as Vice (age 42) 2002(1,2) President and a director of sales P.O. Box 2999 and marketing in the Investment Hartford, CT 06104-2999 Products Division of Hartford Life Insurance Company since 1999. Previously he was with Guardian Insurance Company in New York, New York. - ------------------------------------------------------------------------------------------------ INTERESTED DIRECTORS AND O INTERESTED DIRECTORS AND OFFICERS - -------------------------- ----------------------------------- NUMBER OF PORTFOLIOS IN FUND COMPLEX OTHER OVERSEEN BY DIRECTORSHIPS NAME, AGE AND ADDRESS DIRECTOR HELD BY DIRECTOR - -------------------------- ----------------------------------- WILLIAM H. DAVISON, JR. N/A N/A (age 45) 55 Farmington Avenue Hartford, CT 06105 - ------------------------------------------------------------------------------------------------ BRUCE FERRIS N/A N/A (age 47) P.O. Box 2999 Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------ TAMARA L. FAGELY N/A N/A (age 44) 500 Bielenberg Drive Woodbury, MN 55125 - ------------------------------------------------------------------------------------------------ GEORGE RICHARD JAY N/A N/A (age 50) P.O. Box 2999 Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------ STEPHEN T. JOYCE N/A N/A (age 43) P.O. Box 2999 Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------ DAVID N. LEVENSON N/A N/A (age 36) P.O. Box Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------ RYAN JOHNSON N/A N/A (age 42) P.O. Box 2999 Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------
198 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. BOARD OF DIRECTORS AND OFFICER INFORMATION -- (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ------------------------------------------------------------------------------------------------ TERM OF POSITION HELD OFFICE** AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) NAME, AGE AND ADDRESS COMPANY TIME SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------ JOHN C. WALTERS Vice President Since 2000(1) Mr. Walters serves as Executive (age 40) Since 2001(2) Vice President and Director of the P.O. Box 2999 Investment Products Division of Hartford, CT 06104-2999 Hartford Life Insurance Company. Previously Mr. Walters was with First Union Securities. Mr. Walters is also a Managing Member and Executive Vice President of HIFSO and HL Advisors. - ------------------------------------------------------------------------------------------------ KEVIN J. CARR Vice President Since 1996(1) Mr. Carr has served as Assistant (age 48) and Secretary Since 2001(2) General Counsel since 1999, Counsel 55 Farmington Avenue since November 1996 and Associate Hartford, CT 06105 Counsel since November 1995, of The Hartford Financial Services Group, Inc. Mr. Carr is also Assistant Secretary of HL Advisors, HIFSCO and HIMCO. - ------------------------------------------------------------------------------------------------ INTERESTED DIRECTORS AND O INTERESTED DIRECTORS AND OFFICERS - -------------------------- ----------------------------------- NUMBER OF PORTFOLIOS IN FUND COMPLEX OTHER OVERSEEN BY DIRECTORSHIPS NAME, AGE AND ADDRESS DIRECTOR HELD BY DIRECTOR - -------------------------- ----------------------------------- JOHN C. WALTERS N/A N/A (age 40) P.O. Box 2999 Hartford, CT 06104-2999 - ------------------------------------------------------------------------------------------------ KEVIN J. CARR N/A N/A (age 48) 55 Farmington Avenue Hartford, CT 06105 - ------------------------------------------------------------------------------------------------
* Term of Office: Each director may serve until his or her successor is elected and qualifies. ** Term of Office: Each officer and director may serve until his or her successor is elected and qualifies. *** "Interested person", as defined in the 1940 Act, of the Company because of the person's affiliation with, or equity ownership of HIFSCO or affiliated companies. **** Director of the Hartford Mutual Funds, Inc. (1) Term for The Hartford Retail Funds, Inc. (2) Term for The Hartford Retail Funds II, Inc. The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 1-888-843-7824 or writing The Hartford Mutual Funds P.O. Box 64387 St. Paul, MN 55164-0387. 199 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. SHAREHOLDER MEETING RESULTS (UNAUDITED) - -------------------------------------------------------------------------------- The following proposals were addressed during the period. *indicates that the proposal was addressed at a special meeting of shareholders held on July 16, 2002, **indicates that the proposal was addressed at a subsequent adjourned special meeting held on July 19, 2002, ***indicates that the proposal was addressed at a subsequent adjourned special meeting held on July 31, 2002, ****indicates that the proposal was addressed at a subsequent adjourned special meeting held on August 30, 2002 and *****indicates that the proposal was addressed at the subsequent adjourned special meeting held on September 4, 2002. Proposal to elect the following individuals as directors: Winifred E. Coleman, Dr. Robert M. Gavin, Duane E. Hill, William A. O'Neill, Phillip O. Peterson, Millard H. Pryor, Jr., John K. Springer, Lowndes A. Smith and David M. Znamierowski
THE HARTFORD MUTUAL THE HARTFORD MUTUAL FUNDS, INC.*** FUNDS II, INC.** ------------------------ ---------------------- FOR WITHHELD FOR WITHHELD DIRECTOR ----------- ---------- ---------- --------- - -------- Winifred E. Coleman......................................... 603,102,451 20,336,086 54,364,152 2,374,274 Dr. Robert M. Gavin......................................... 603,364,084 20,074,453 54,397,441 2,340,985 Duane E. Hill............................................... 603,356,762 20,081,775 54,396,579 2,341,847 William A. O'Neill.......................................... 602,699,238 20,739,298 54,176,369 2,562,057 Phillip O. Peterson......................................... 603,380,417 20,058,119 54,391,545 2,346,882 Millard H. Pryor, Jr........................................ 603,223,389 20,215,148 54,399,978 2,338,448 Lowndes A. Smith............................................ 603,506,622 19,931,914 54,413,074 2,325,352 John K. Springer............................................ 602,942,379 20,496,157 54,298,556 2,439,870 David M. Znamierowski....................................... 603,264,035 20,174,501 54,403,046 2,335,380
Proposal to revise the fundamental policy regarding the issuance of senior securities:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 69,135,849 2,503,722 4,451,545 18,527,213 Bond Income Strategy Fund****............................... 12,813,269 387,136 788,171 2,195,071 Dividend and Growth Fund***................................. 25,827,435 887,130 1,473,427 9,628,025 Focus Fund****.............................................. 5,806,406 255,251 340,877 2,095,024 Global Communications Fund***............................... 915,969 2,430 3,422 349,734 Global Financial Services Fund***........................... 1,023,170 6,376 16,997 507,093 Global Leaders Fund****..................................... 14,002,204 667,793 844,130 5,217,510 High Yield Fund****......................................... 10,218,417 324,008 622,264 3,629,038 International Capital Appreciation Fund***.................. 370,956 2,530 3,488 96,869 International Opportunities Fund****........................ 5,152,685 170,328 222,105 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,660,146 1,030,976 1,464,031 9,223,575 MidCap Value Fund*****...................................... 5,244,938 194,734 418,081 1,545,283 Money Market Fund***........................................ 133,427,136 5,252,927 9,262,568 45,619,746 Small Company Fund ****..................................... 7,211,614 330,221 371,983 2,352,161 Value Fund****.............................................. 2,033,502 56,874 182,295 612,768
200 - -------------------------------------------------------------------------------- Proposal to revise the fundamental policy regarding the borrowing of money:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 68,783,407 2,913,985 4,393,723 18,527,213 Bond Income Strategy Fund****............................... 12,758,259 446,100 784,217 2,195,071 Dividend and Growth Fund***................................. 25,689,108 979,940 1,518,943 9,628,025 Focus Fund****.............................................. 5,780,221 278,622 343,691 2,095,024 Global Communications Fund***............................... 917,069 1,286 3,466 349,734 Global Financial Services Fund***........................... 1,019,317 8,784 18,442 507,093 Global Leaders Fund****..................................... 13,962,510 712,163 839,454 5,217,510 High Yield Fund****......................................... 10,157,816 408,518 598,355 3,629,038 International Capital Appreciation Fund***.................. 370,933 2,553 3,488 96,869 International Opportunities Fund****........................ 5,139,302 196,507 209,308 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,571,664 1,139,532 1,443,957 9,223,575 MidCap Value Fund*****...................................... 5,208,326 254,321 395,105 1,545,283 Money Market Fund***........................................ 132,222,016 6,530,299 9,190,315 45,619,746 Small Company Fund****...................................... 7,203,008 347,960 362,851 2,352,161 Value Fund****.............................................. 2,018,836 66,166 187,669 612,768
Proposal to revise fundamental policies regarding the borrowing of money, issuing of senior securities and purchasing securities on margin:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Growth Fund**............................................... 12,644,779 727,179 948,905 1,867,758 Growth Opportunities Fund****............................... 14,190,219 1,157,130 1,133,051 1,993,839 Tax-Free Minnesota Fund*.................................... 1,655,179 148,093 99,989 365,010 Tax-Free National Fund*..................................... 2,126,604 169,024 109,718 399,210 U.S. Government Securities Fund**........................... 10,840,172 604,582 799,726 1,489,878 Value Opportunities Fund****................................ 1,733,093 66,912 129,398 282,760
Proposal to revise the fundamental policy restricting the investment of more than 25% of a fund's assets in a single industry:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 69,442,687 2,354,403 4,294,025 18,527,213 Bond Income Strategy Fund****............................... 12,817,706 406,759 764,111 2,195,071 Dividend and Growth Fund***................................. 25,926,020 784,606 1,477,366 9,628,025 Focus Fund****.............................................. 5,822,504 246,410 333,619 2,095,024 Global Leaders Fund****..................................... 14,048,493 647,124 818,510 5,217,510 Growth Fund**............................................... 12,914,096 483,778 922,989 1,867,758 Growth Opportunities Fund****............................... 14,700,590 746,524 1,033,285 1,993,839 High Yield Fund****......................................... 10,260,992 297,974 605,723 3,629,038 International Capital Appreciation Fund***.................. 370,956 2,530 3,488 96,869 International Opportunities Fund****........................ 5,163,232 160,850 221,036 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,767,136 962,326 1,425,690 9,223,575 MidCap Value Fund*****...................................... 5,246,105 183,167 428,482 1,545,283 Money Market Fund***........................................ 133,484,587 5,306,504 9,151,539 45,619,746 Small Company Fund****...................................... 7,253,059 307,335 353,426 2,352,161 Tax-Free Minnesota Fund*.................................... 1,707,901 98,339 97,020 365,010
201 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. SHAREHOLDER MEETING RESULTS (UNAUDITED) -- (CONTINUED) - --------------------------------------------------------------------------------
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Tax-Free National Fund*..................................... 2,179,524 122,640 103,184 399,210 U.S. Government Securities Fund**........................... 11,109,708 314,708 820,064 1,489,878 Value Fund****.............................................. 2,031,250 48,107 193,315 612,768 Value Opportunities Fund****................................ 1,760,860 42,478 126,065 282,760
Proposal concerning fundamental policy regarding investments in specific industries for the sector funds:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Global Communications Fund***............................... 917,817 559 3,446 349,734 Global Financial Services Fund***........................... 1,021,801 7,288 17,454 507,093
Proposal to revise the fundamental policy regarding the making of loans:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 68,938,842 2,796,316 4,355,957 18,527,213 Bond Income Strategy Fund****............................... 12,829,260 409,108 750,208 2,195,071 Dividend and Growth Fund***................................. 25,773,928 921,434 1,492,629 9,628,025 Focus Fund****.............................................. 5,784,740 276,677 341,117 2,095,024 Global Communications Fund***............................... 916,508 1,867 3,446 349,734 Global Financial Services Fund***........................... 1,020,784 8,329 17,430 507,093 Global Leaders Fund****..................................... 13,951,927 732,688 829,512 5,217,510 Growth Fund**............................................... 12,619,363 754,644 946,856 1,867,548 Growth Opportunities Fund****............................... 14,150,360 1,213,337 1,116,703 1,993,839 High Yield Fund****......................................... 10,178,243 365,277 621,169 3,629,038 International Capital Appreciation Fund***.................. 370,933 2,553 3,488 96,869 International Opportunities Fund****........................ 5,137,927 183,185 224,006 1,547,477 International Small Company Fund***......................... 307,158 887 0 84,937 MidCap Fund*****............................................ 24,636,851 1,094,429 1,423,872 9,223,575 MidCap Value Fund*****...................................... 5,204,928 238,238 414,587 1,545,283 Money Market Fund***........................................ 132,261,438 6,492,104 9,189,090 45,619,746 Small Company Fund****...................................... 7,221,540 337,463 354,816 2,352,161 Tax-Free Minnesota Fund*.................................... 1,635,768 163,182 104,311 365,010 Tax-Free National Fund*..................................... 2,131,481 167,993 105,872 399,210 U.S. Government Securities Fund**........................... 10,850,716 567,677 826,087 1,489,878 Value Fund****.............................................. 2,115,120 57,526 100,025 612,768 Value Opportunities Fund****................................ 1,725,251 76,169 127,984 282,760
Proposal to revise the fundamental policy regarding the underwriting of securities:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 69,085,780 2,499,209 4,506,127 18,527,213 Bond Income Strategy Fund****............................... 12,836,776 394,109 757,691 2,195,071 Dividend and Growth Fund***................................. 25,889,460 802,119 1,496,412 9,628,025 Focus Fund****.............................................. 5,823,086 256,250 323,198 2,095,024 Global Communications Fund***............................... 914,430 3,483 3,908 349,734 Global Financial Services Fund***........................... 1,020,826 9,235 16,482 507,093 Global Leaders Fund****..................................... 14,004,851 659,211 850,065 5,217,510 High Yield Fund****......................................... 10,190,698 328,807 645,185 3,629,038 International Capital Appreciation Fund***.................. 371,920 1,566 3,488 96,869
202 - --------------------------------------------------------------------------------
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- International Opportunities Fund****........................ 5,153,736 168,041 223,342 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,720,180 966,245 1,468,727 9,223,575 MidCap Value Fund*****...................................... 5,255,115 194,521 408,117 1,545,283 Money Market Fund***........................................ 133,161,403 5,575,608 9,205,619 45,619,746 Small Company Fund****...................................... 7,247,327 315,488 351,005 2,352,161 Value Fund****.............................................. 2,030,848 60,124 181,699 612,768
Proposal to revise the fundamental policy regarding investments in real estate and interests therein:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 69,394,635 2,347,024 4,349,456 18,527,213 Bond Income Strategy Fund****............................... 12,860,440 389,182 738,954 2,195,071 Dividend and Growth Fund***................................. 25,937,334 797,007 1,453,650 9,628,025 Focus Fund****.............................................. 5,812,951 261,560 328,022 2,095,024 Global Communications Fund***............................... 910,461 3,342 8,018 349,734 Global Financial Services Fund***........................... 1,023,368 7,209 15,966 507,093 Global Leaders Fund****..................................... 14,055,645 638,583 819,900 5,217,510 Growth Fund**............................................... 12,890,704 511,620 918,539 1,867,758 Growth Opportunities Fund****............................... 14,650,181 760,161 1,070,057 1,993,839 High Yield Fund****......................................... 10,191,540 346,617 626,533 3,629,038 International Capital Appreciation Fund***.................. 371,920 1,566 3,488 96,869 International Opportunities Fund****........................ 5,179,251 150,386 215,482 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,749,052 953,818 1,452,283 9,223,575 MidCap Value Fund*****...................................... 5,256,623 187,321 413,810 1,545,283 Money Market Fund***........................................ 133,379,636 5,486,332 9,076,664 45,619,746 Small Company Fund ****..................................... 7,248,386 315,845 349,588 2,352,161 Tax-Free Minnesota Fund*.................................... 1,697,751 96,360 109,150 365,010 Tax-Free National Fund*..................................... 2,170,278 117,872 117,197 399,210 U.S. Government Securities Fund**........................... 11,096,691 352,948 794,842 1,489,878 Value Fund****.............................................. 2,036,626 45,633 190,412 612,768 Value Opportunities Fund****................................ 1,759,676 44,572 125,156 282,760
Proposal to revise the fundamental policy regarding purchases and sales of commodities and commodities contracts:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 68,850,943 2,772,397 4,467,775 18,527,213 Bond Income Strategy Fund****............................... 12,767,325 434,650 786,601 2,195,071 Dividend and Growth Fund***................................. 25,721,805 966,286 1,499,900 9,628,025 Focus Fund****.............................................. 5,777,368 294,298 330,867 2,095,024 Global Communications Fund***............................... 909,854 3,969 7,998 349,734 Global Financial Services Fund***........................... 1,019,958 9,095 17,491 507,093 Global Leaders Fund****..................................... 13,969,546 700,374 844,208 5,217,510 Growth Fund**............................................... 12,729,314 648,203 943,347 1,867,758 Growth Opportunities Fund****............................... 14,461,979 956,679 1,061,742 1,993,839 High Yield Fund****......................................... 10,174,677 366,614 623,399 3,629,038 International Capital Appreciation Fund***.................. 371,837 1,649 3,488 96,869
203 THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC. SHAREHOLDER MEETING RESULTS (UNAUDITED) -- (CONTINUED) - --------------------------------------------------------------------------------
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- International Opportunities Fund****........................ 5,126,664 194,614 223,840 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,559,196 1,134,482 1,461,474 9,223,575 MidCap Value Fund*****...................................... 5,219,400 225,827 412,526 1,545,283 Money Market Fund***........................................ 132,643,961 5,993,773 9,304,897 45,619,746 Small Company Fund****...................................... 7,181,728 376,670 355,421 2,352,161 Tax-Free Minnesota Fund*.................................... 1,696,034 113,457 93,770 365,010 Tax-Free National Fund*..................................... 2,137,634 161,508 106,205 399,210 U.S. Government Securities Fund**........................... 10,924,174 511,741 888,565 1,489,878 Value Fund****.............................................. 2,022,312 56,283 194,076 612,768 Value Opportunities Fund****................................ 1,743,780 54,190 131,433 282,760
Proposal to eliminate the fundamental policy regarding diversification (the diversified or non-diversified status of each fund has not changed):
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Advisers Fund****........................................... 68,349,153 3,189,953 4,552,010 18,527,213 Bond Income Strategy Fund****............................... 11,179,772 2,004,548 804,256 2,195,071 Dividend and Growth Fund***................................. 25,589,295 1,067,336 1,531,361 9,628,025 Global Leaders Fund****..................................... 13,904,427 760,660 849,040 5,217,510 High Yield Fund****......................................... 10,092,686 417,225 654,778 3,629,038 International Capital Appreciation Fund***.................. 370,850 2,636 3,488 96,869 International Opportunities Fund****........................ 4,854,452 462,504 228,162 1,547,477 International Small Company Fund***......................... 308,013 32 0 84,937 MidCap Fund*****............................................ 24,449,700 1,227,148 1,478,305 9,223,575 MidCap Value Fund*****...................................... 5,197,765 243,238 416,751 1,545,283 Money Market Fund***........................................ 132,213,124 6,192,768 9,536,738 45,619,746 Small Company Fund****...................................... 6,953,902 602,775 357,142 2,352,161 Value Fund****.............................................. 2,018,802 60,678 193,191 612,768
Proposal to eliminate the fundamental policy regarding the mortgage of assets:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,888,727 528,027 827,726 1,489,878
Proposal to eliminate the fundamental policy regarding the participation in joint securities trading accounts:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,973,109 436,637 834,734 1,489,878
Proposal to eliminate the fundamental policy regarding certain purchases from, and sales to, officers, directors and employees of a fund:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,770,344 622,551 851,584 1,489,878
Proposal to eliminate the fundamental policy regarding short sales:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,830,345 583,988 830,147 1,489,878
204 - -------------------------------------------------------------------------------- Proposal to eliminate the fundamental policy reading the purchase of securities of issuers where officers or directors own certain beneficial amounts:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,868,653 595,860 779,967 1,489,878
Proposal to eliminate the fundamental policy regarding investments in puts and calls:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,886,427 596,268 761,786 1,489,878
Proposal to eliminate the fundamental policy regarding investments in repurchase agreements:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- U.S. Government Securities Fund**........................... 10,969,104 476,139 799,237 1,489,878
Proposal to eliminate the fundamental policy regarding investment grade municipal securities:
FOR AGAINST ABSTAIN BROKER NON-VOTE FUND ----------- --------- ---------- --------------- - ---- Tax-Free Minnesota Fund.*................................... 1,656,546 138,345 108,369 365,010 Tax-Free National Fund*..................................... 2,092,160 199,785 113,403 399,210
205 [HARTFORD LOGO] PRIVACY POLICY AND PRACTICES OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. AND ITS AFFILIATES (THE HARTFORD) APPLICABLE TO THE HARTFORD'S UNITED STATES CUSTOMERS WE AT THE HARTFORD value our customers' trust and are committed to the responsible management, use and protection of personal information. All insurance companies must collect a certain amount of personal information to service customers and administer business. This notice describes our policy regarding the collection and disclosure of personal information. 1) Personal information, as used in this notice, means information that identifies an individual personally and is not otherwise available to the public. It includes personal financial information such as credit history, income, financial benefits, policy or claim information. It also includes personal health information such as individual medical records or information about an illness, disability or injury. 2) We collect personal information to support our normal business operations. We may obtain personal information directly from the customer, from customer-related transactions and from third parties, such as a consumer reporting agency. Personal information such as name, address, income, payment history or credit history are gathered from sources such as applications, transactions and consumer reports. 3) The Hartford's employees have access to personal information in the course of doing their jobs, which includes underwriting policies, paying claims, developing new products or advising customers of our products and services. 4) We may share personal financial information with our affiliates, such as insurance companies, banks, agents, brokerage firms and administrators. 5) To service our customers and administer our business, we may also share information with unaffiliated third parties, including agents, brokerage firms, insurance companies, administrators and service providers and as otherwise permitted or required by law. In addition, we may share personal financial information with other unaffiliated third parties who are assisting us by performing services or functions, such as conducting surveys, marketing our products or services, or offering financial products or services under a joint agreement between us and one or more financial institutions. PRIOR TO SHARING PERSONAL FINANCIAL INFORMATION WITH UNAFFILIATED THIRD PARTIES, EXCEPT AS DESCRIBED IN THIS POLICY, WE WILL GIVE AFFECTED CUSTOMERS AN OPPORTUNITY TO DIRECT THAT SUCH INFORMATION NOT BE DISCLOSED. 6) We may disclose personal health information with proper written authorization or as otherwise permitted or required by law. 7) We use manual and electronic security procedures to maintain the confidentiality and integrity of personal information in our possession and guard against its unauthorized access. Some techniques we employ to protect information include locked files, user authentication, encryption, firewall technology and the use of detection software. We are responsible for identifying information that must be protected, providing an adequate level of protection for that data and granting access to protected data only to individuals who must use it in the performance of their job-related duties. Employees who violate our Privacy Policy will be subject to disciplinary action, which may include termination. 8) We will continue to follow this policy regarding personal information even when a customer relationship no longer exists. The Hartford will notify customers of our Privacy Policy at the inception of our business relationship and annually thereafter. The Privacy Policy is subject to change at any time. We will notify customers of any modifications at least annually. 206 -----END PRIVACY-ENHANCED MESSAGE-----