-----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, S896Q/Jxo9FsI2woPu+IFcCyO2ctzK28yAT7gjx+IUzDGcsQLX32fhXT07DX7NJc 2Nyw0Kd4z9cSTNFykW4p5Q== 0000950135-02-000997.txt : 20020414 0000950135-02-000997.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950135-02-000997 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD STOCK HLS FUND INC CENTRAL INDEX KEY: 0000045941 IRS NUMBER: 060941188 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02630 FILM NUMBER: 02553040 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2036838214 MAIL ADDRESS: STREET 1: 200 SIMSBURY CITY: HARTFORD STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD FUND INC DATE OF NAME CHANGE: 19830202 FORMER COMPANY: FORMER CONFORMED NAME: HVA STOCK FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD BOND HLS FUND INC CENTRAL INDEX KEY: 0000714502 IRS NUMBER: 061078748 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03660 FILM NUMBER: 02553041 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HVA FIXED INCOME FUND INC DATE OF NAME CHANGE: 19881120 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD BOND FUND INC /CT/ DATE OF NAME CHANGE: 19980601 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD BOND DEBT SECURITIES FUND INC DATE OF NAME CHANGE: 19931102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD SMALL CO HLS FUND INC CENTRAL INDEX KEY: 0001006414 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07557 FILM NUMBER: 02553042 BUSINESS ADDRESS: STREET 1: ITT HARTFORD GROUP INC STREET 2: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06115 BUSINESS PHONE: 8008626668 MAIL ADDRESS: STREET 1: P O BOX 2999 STREET 2: ITT HARTFORD GROU INC CITY: HARTFORD STATE: CT ZIP: 06104-2999 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD SERIES FUND INC CENTRAL INDEX KEY: 0001053425 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08629 FILM NUMBER: 02553043 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 8602976443 MAIL ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MORTGAGE SECURITIES HLS FUND INC CENTRAL INDEX KEY: 0000756930 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04201 FILM NUMBER: 02553044 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFIRD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HVA GNMA FUND INC DATE OF NAME CHANGE: 19870304 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD GNMA MORTGAGE FUND INC DATE OF NAME CHANGE: 19931013 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD GNMA MORTGAGE SECURITIES FUND INC DATE OF NAME CHANGE: 19931102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MONEY MARKET HLS FUND INC CENTRAL INDEX KEY: 0000714500 IRS NUMBER: 061078658 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03662 FILM NUMBER: 02553045 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MIDCAP HLS FUND INC CENTRAL INDEX KEY: 0001037716 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08185 FILM NUMBER: 02553046 BUSINESS ADDRESS: STREET 1: HARTFORD PLZ STREET 2: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 8605472883 MAIL ADDRESS: STREET 1: HARTFORD PLZ STREET 2: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD MIDCAP FUND INC DATE OF NAME CHANGE: 19970414 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND INC CENTRAL INDEX KEY: 0000861503 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06059 FILM NUMBER: 02553047 BUSINESS ADDRESS: STREET 1: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INTERNATIONAL OPPORTUNITIES FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INTERNATIONAL ADVISERS HLS FUND INC CENTRAL INDEX KEY: 0000931417 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08804 FILM NUMBER: 02553048 BUSINESS ADDRESS: STREET 1: C/O HARTFORD INSURANCE CO. STREET 2: 200 HOPMEADOW STREET CITY: SIMSBURY STATE: CT ZIP: 06104 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: C/O HARTFORD INSURANCE CO. STREET 2: 200 HOPMEADOW STREET CITY: SIMSBURY STATE: CT ZIP: 06104 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INTERNATIONAL ADVISERS FUND INC DATE OF NAME CHANGE: 19950522 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INDEX HLS FUND INC CENTRAL INDEX KEY: 0000811086 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05045 FILM NUMBER: 02553049 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 0606089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INDEX FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD DIVIDEND & GROWTH HLS FUND INC CENTRAL INDEX KEY: 0000915770 IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08186 FILM NUMBER: 02553050 BUSINESS ADDRESS: STREET 1: P.O. BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104 BUSINESS PHONE: 2038438984 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD DIVIDEND & GROWTH FUND INC DATE OF NAME CHANGE: 19931206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD CAPITAL APPRECIATION HLS FUND INC CENTRAL INDEX KEY: 0000741565 IRS NUMBER: 222481744 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04005 FILM NUMBER: 02553051 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HVA AGGRESSIVE GROWTH FUND INC/MA/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD CAPITAL APPRECIATION FUND INC DATE OF NAME CHANGE: 19960423 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD AGGRESSIVE GROWTH FUND INC /CT/ DATE OF NAME CHANGE: 19940428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD ADVISORS HLS FUND INC CENTRAL INDEX KEY: 0000714499 IRS NUMBER: 061078749 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03659 FILM NUMBER: 02553052 BUSINESS ADDRESS: STREET 1: P O B0X 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HVA ADVISERS FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD ADVISERS HLS FUND INC DATE OF NAME CHANGE: 20000804 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD ADVISORS FUND INC /CT/ DATE OF NAME CHANGE: 19940603 N-30D 1 b41700hln-30d.txt HARTFORD LIFE HLS ANNUAL REPORT FOR 12/31/2001 [THE HARTFORD LOGO] ANNUAL REPORT December 31, 2001 - M a n a g e r D i s c u s s i o n s - F i n a n c i a l s HARTFORD HLS MUTUAL FUNDS TABLE OF CONTENTS Manager Discussions 1 Hartford HLS Mutual Funds Financial Statements: Statement of Net Assets as of December 31, 2001: Hartford Global Communications HLS Fund 23 Hartford Global Financial Services HLS Fund 24 Hartford Global Health HLS Fund 26 Hartford Global Technology HLS Fund 28 Hartford Focus HLS Fund 30 Hartford International Small Company HLS Fund 31 Hartford Small Company HLS Fund, Inc. 33 Hartford International Capital Appreciation HLS Fund 35 Hartford Capital Appreciation HLS Fund, Inc. 37 Hartford MidCap Value HLS Fund 40 Hartford MidCap HLS Fund, Inc. 42 Hartford International Opportunities HLS Fund, Inc. 44 Hartford Global Leaders HLS Fund 47 Hartford Stock HLS Fund, Inc. 49 Hartford Index HLS Fund, Inc. 51 Hartford Growth and Income HLS Fund 57 Hartford Value HLS Fund 59 Hartford Dividend and Growth HLS Fund, Inc. 61 Hartford Global Advisers HLS Fund, Inc. (formerly Hartford International Advisers HLS Fund, Inc.) 63 Hartford Advisers HLS Fund, Inc. 69 Hartford High Yield HLS Fund 74 Hartford Bond HLS Fund, Inc. 80 Hartford Mortgage Securities HLS Fund, Inc. 85 Hartford Money Market HLS Fund, Inc. 87 Statements of Operations for the Period Ended December 31, 2001 90 Statements of Changes in Net Assets for the Period Ended December 31, 2001 96 Statements of Changes in Net Assets for the Period Ended December 31, 2000 102 Notes to Financial Statements 106 Financial Highlights 128 Report of Independent Public Accountants 138 Tax Information Notice 139 Board of Directors and Officer Information 140 Privacy Policy 144 Contract owners should refer to the prospectus provided to them at the time of purchase of their contract for a description of investment alternatives available in the Separate Accounts. This prospectus, along with the financial information contained in this report, provides them with complete and up-to-date financial information regarding the Separate Account. This report is prepared for the general information of contract owners and is not an offer of contracts. It should not be used in connection with any offer, except in conjunction with the appropriate prospectus which contains all pertinent information including the applicable sales, administrative and other charges. - -------------------------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e m e n t T e a m MICHAEL A.TYLER, CFA Senior Vice President & Partner Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President & Partner Wellington Management Company, LLP SCOTT E. SIMPSON Senior Vice President & Partner Wellington Management Company, LLP DAVID NINCIC, CFA Assistant Vice President Wellington Management Company, LLP KRISTINA G. STAFF, CFA Assistant Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i ew 12/27/2000 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GLOBAL MSCI BROAD COMMUNICATIONS IA TELECOMMUNICATIONS S&P 500 ----------------- ------------------ ------- 12/27/2000 $10,000 $ 10,000 $ 10,000 12/31/2001 $ 6,414 $ 7,340 $ 8,754
- -------------------------------------------------------------------------------- Returns (Inception 12/27/2000)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Global Comm. IA - 35.74% - 35.55% MSCI Broad Telecomm. - 26.60% - 26.32% S&P 500 - 11.88% - 12.33%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Global Communications HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 12/27/2000 would have been valued at $6,371 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Communications HLS Fund returned -35.7% for the 12-months ending December 31, 2001. The Fund underperformed its benchmark, MSCI Broad Telecommunications Index, which returned -26.6%. Q. WHY DID THE FUND PERFORM THIS WAY? Telecom investors continued to suffer through yet another difficult year within the sector. Investors continued to focus on weakening balance sheets, deterio- rating earnings, and a large pending supply of new equity in the market. Although the Fund has concentrated in recent periods on more defensive companies within the telecom sector, its investment performance suffered during the challenging period. Throughout the year, the Fund was positioned rather defensively within the higher-quality integrated telecommunication services companies; however, all areas of telecom underperformed. The top three contributors to performance for the year were AT&T Corp., Nextel Partners, Inc. and Orange S.A. Q. WHAT IS YOUR OUTLOOK FOR 2002? The telecom industry's excess capital investment still needs to be absorbed by growing demand, as a result, the industry may not return to investor grace quickly. For the moment, we continue to maintain our large positions in some of the better defensive companies, but we are also beginning to buy some high-quality growth companies at exceptionally cheap valuations. Through the course of 2002, we believe that investor perceptions of the economy will fluctuate, so we don't see a sustained upward trend in overall valuations for the immediate future. Looking later into the year, we will probably begin to get more aggressive in our strategy and look to wireless and telecom equipment. Long-term, we believe that the communications industry's demand growth remains healthy. Therefore, we maintain a positive outlook on the growth of the sector and continue to believe that this area will remain one of the most dynamic sectors of the global economy. - ------------------------------------- 1 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e m e n t T e a m MARK T. LYNCH, CFA Senior Vice President & Partner Wellington Management Company, LLP THEODORE SHASTA, CFA Senior Vice President & Partner Wellington Management Company, LLP MARK D. MANDEL, CFA Vice President Wellington Management Company, LLP ERIC HALET Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i ew 12/27/2000 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GLOBAL FINANCIAL MSCI FINANCE SERVICES IA EX REAL ESTATE S&P 500 ----------- -------------- ------- 12/27/2000 $10,000 $10,000 $10,000 12/31/2001 $ 9,421 $ 8,475 $ 8,754
- -------------------------------------------------------------------------------- Returns (Inception 12/27/2000)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Global Financial Services IA - 5.72% - 5.73% MSCI Finance ex Real Estate - 16.70% - 15.10% S&P 500 - 11.88% - 12.33% - --------------------------------------------------------------------------------
The chart represents a hypothetical investment in the Hartford Global Financial Services HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 12/27/2000 would have been valued at $9,397 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Financial Services HLS Fund returned -5.7% for the 12-months ending December 31, 2001. The Fund significantly outperformed its benchmark, MSCI Finance ex-Real Estate Index, which returned -16.7%. Q. WHY DID THE FUND PERFORM THIS WAY? The aggressive easing of the U.S. Federal Reserve led many to believe in an imminent economic recovery in 2001, so the stocks of investment banks and U.S. commercial banks with troubled loan portfolios appreciated the most during that time period. The Fund's bank investments have been focused on local, retail banks and specialty institutions rather than the capital markets banks due to our concern over loan quality and trading results of the global banks. The Fund's insurance investments are comprised of companies that have excellent growth potential by virtue of their market position and are primarily niche players who control their own distribution rather than the traditional insurance companies reliant on the agency system. We continued to avoid Japanese banks in 2001 due to continued asset quality concerns linked to the deterioration of the Japanese economy and from investors' disappointment over the lack of policy response from the government. The top three contributors to performance for the year were Clark/Bardes, Inc. (insurance), Bank of Bermuda Ltd. (banks) and Pacific Century Financial Corp. (banks). Q. WHAT IS YOUR OUTLOOK FOR 2002? While one should never underestimate the restorative powers of lower interest rates, they don't cure all problems immediately. We are skeptical that customers' balance sheets will support the kind of economic recovery that current stock prices imply. We believe that the Fund is well positioned in light of our outlook on the U.S. and global economies. We continue to prepare for the worst, hope for the best and strive to continue to deliver superior returns to our shareholders. - ------------------------------------- 2 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e m e n t T e a m JOSEPH H. SCHWARTZ, CFA Senior Vice President and Partner Wellington Management Company, LLP ANN C. GALLO Vice President Wellington Management Company, LLP JEAN H. HYNES, CFA Senior Vice President and Partner Wellington Management Company, LLP KIRK J. MAYER, CFA Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 5/1/2000 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GLOBAL GLOBAL SACHS HEALTH IA HEALTH CARE S&P 500 --------- ----------- ------- 5/1/2000 $10,000 $10,000 $10,000 12/31/2000 $14,818 $12,887 $9,063 12/31/2001 $15,120 $11,335 $7,986
- -------------------------------------------------------------------------------- Returns (Inception 5/1/2000)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Global Health IA 2.04% 28.12% Goldman Sachs Health Care -12.04% 7.80% S&P 500 -11.88% -12.61%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Global Health HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 5/1/2000 would have been valued at $15,075 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Health HLS Fund returned 2.0% for the 12-months ending December 31, 2001. The Fund significantly outperformed its benchmark, Goldman Sachs Health Care Index, which returned -12.0%. Q. WHY DID THE FUND PERFORM THIS WAY? Good stock selection and positioning within the various sub-sectors of the industry were the primary contributors of performance. Throughout the year, little changed with respect to sub-sector allocations. We maintained our medical device sub-sector positions due to the significant benefits from a technological renaissance and favorable growth prospects. We maintained an underweight position within the pharmaceutical and biotechnology sub-sector based on continued valuation concerns. The Fund continues to be positioned in those areas of the health care sector which present the most attractive valuations and the best investment opportunities. The top contributors to performance for the year included Genzyme Corp. (drugs), Abbott Laboratories (drugs) and St. Jude Medical, Inc. (medical instruments & supplies). Q. WHAT IS YOUR OUTLOOK FOR 2002? Health care is a natural, global growth sector, reflecting the clearly defined factors of aging demographics, technological innovation, and geographic expansion. A short-term challenge to sales growth from foreign exchange translation has persisted, but now appears to be abating, as the U.S. dollar's external value seemingly peaks. Consequently, the health care sector's growth outlook, both near and long-term, remains strong. Given attractive valuations for many individual stocks, we are optimistic about investing in this sector. - ------------------------------------- 3 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL TECHNOLOGY HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e m e n t T e a m SCOTT E. SIMPSON Senior Vice President and Partner Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President and Partner Wellington Management Company, LLP BRUCE L. GLAZER Assistant Vice President Wellington Management Company, LLP PAUL D. JACKSON Assistant Vice President Wellington Management Company, LLP ERIC STROMQUIST Senior Vice President and Partner Wellington Management Company, LLP ANITA M. KILLIAN Assistant Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 5/1/2000 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GLOBAL GLOBAL SACHS TECHNOLOGY IA TECHNOLOGY INDEX S&P 500 ------------- ---------------- ------- 5/1/2000 $10,000 $10,000 $10,000 12/31/2000 $ 6,263 $ 5,802 $ 8,456 12/31/2001 $ 4,834 $ 4,144 $ 7,986
- -------------------------------------------------------------------------------- Returns (Inception 5/1/2000)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Global Technology IA - 22.81% - 35.31% Goldman Sachs Technology - 28.57% - 41.02% S&P 500 - 11.88% - 12.61%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Global Technology HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 5/1/2000 would have been valued at $4,820 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Technology HLS Fund returned -22.8% for the 12-months ending December 31, 2001. The Fund significantly outperformed its benchmark, Goldman Sachs Technology Index, which returned -28.6%. Q. WHY DID THE FUND PERFORM THIS WAY? The technology sector was hit hard for the second year in a row as fundamentals continued to struggle following the bubble burst in 2000. Additionally, the tragic events of September 11th negatively affected these companies as purchasing activity came to a standstill and investment priorities were reassessed. During the fourth quarter of 2001, technology shares rebounded more than 33% as the market began to anticipate an U.S. economic recovery in the second half of 2002. The market also began to shift its focus from short-term challenges to the potential earnings power of technology companies in 2003. Throughout the year, the Fund maintained its overweight positions within the information technology services and software & internet, areas of the sector in which there were attractive valuations and good investment ideas. The team opportunistically moved in-and-out of the more cyclical areas of technology, such as semiconductors, hardware and equipment, taking advantage of weakness in some of our favorite names. Overall, we were able to add relative value in a tough market by applying good stock and sector selection. The top three contributors to performance were Microsoft Corp. (software & services), Dell Computer Corp. (computers & office equipment) and First Data Corp. (software & services). Q. WHAT IS YOUR OUTLOOK FOR 2002? While we believe a fundamental recovery in the second half of 2002 is likely, following the recent rally, many technology stocks look fully valued as we enter the New Year. The combination of high relative valuations and rising expectations cause us to enter the year with a somewhat conservative posture. Overall, we think technology stocks can return to growth in 2002 but we also expect volatility will remain high for the next several quarters. As a result, we believe the key to driving superior returns for our shareholders going forward continues to be good stock selection. - ------------------------------------- 4 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD FOCUS HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r RAND L. ALEXANDER, CFA Senior Vice President, Partner and Director of U.S. Core [PHOTO] Equities Wellington Management Company, LLP A s s o c i a t e P o r t f o l i o M a n a g e r MAYA K. BITTAR, CFA [PHOTO] Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i ew 4/30/2001 - 12/31/2001 Growth of a $10,000 Investment
FOCUS IA S&P 500 -------- ------- 4/30/2001 $10,000 $10,000 12/31/2001 $ 9,151 $10,394
[AREA CHART OMITTED] - -------------------------------------------------------------------------------- Returns (Inception 4/30/2001)
Cumulative Returns as of December 31, 2001 SINCE INCEPTION --------------- Focus IA 3.94% S&P 500 - 8.49%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Focus HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 4/30/2001 would have been valued at $10,376 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Focus HLS Fund was launched on April 30, 2001. Since its inception the Fund returned 3.9%, outperforming its benchmark and its peer group for the period. The S&P 500 Index returned -8.5%, and the Lipper VA-UF Large Cap Core Average returned -8.2%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund managed to outperform its peers and the Index during this period due in part to our ability to focus on our very best ideas. The strongest contributors to this performance were holdings such as Accenture Ltd. (business services), Home Depot, Inc. (retail), HCA, Inc. (health services) and FedEx Corp. (transportation). We maintained a broadly diversified portfolio through the entire period with no one sector accounting for more than 20% of the portfolio. Q. WHAT IS YOUR OUTLOOK FOR 2002? The Fund is now positioned to benefit from an eventual recovery in the U.S. economy with relatively little exposure to defensive areas like health care, consumer staples and utilities. However, due to the concentrated nature of the fund and the continued volatility in the equity markets, our positions could change quite rapidly. We are pleased with the fact that we were able to achieve a slightly positive return since inception in a down market and we look forward to building on our results in 2002. - ------------------------------------- 5 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] EDWARD MAKIN Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 4/30/2001 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
INTERNATIONAL SSB <$2B EURO SMALL COMPANY IA PACIFIC ---------------- ------- 4/30/2001 $10,000 $10,000 12/31/2001 $ 9,402 $ 8,758
- -------------------------------------------------------------------------------- Returns (Inception 4/30/2001)
Cumulative Returns as of December 31, 2001 SINCE INCEPTION --------------- International Small Company IA - 5.98% Salomon Smith Barney <$2B Euro Pacific - 12.42%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford International Small Company HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 4/30/2001 would have been valued at $9,385 on 12/31/2001. Q. HOW DID THE FUND PERFORM? The Hartford International Small Company HLS Fund was launched on April 30, 2001. Since its inception the Fund returned -6.0%, widely outpacing its benchmark, the Salomon Smith Barney Euro Pacific <$2B Index, which returned - -12.4% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? We took a cautious stance from a macro standpoint during the quarter, yet our stock-selection discipline led us to focus on companies with strong franchises, which were selling below their long-term fair market value. Toward the end of the year, the Fund had significant overweight positions in the health care, industrials, and energy sectors, and was underweight in the financials, materials, and consumer discretionary sectors. We also maintained an overweight in technology at year-end, much of which was due to strong performance in the sector subsequent to the September 11 tragedy. Q. WHAT IS YOUR OUTLOOK FOR 2002? After plumbing the depths of September 2001, we have grounds for cautious optimism going forward into 2002. Recent positive economic data from Europe may be more a result of inventory rebuild from very low levels, than a true recovery in consumer and industrial confidence. As a result, we are keenly waiting to discover whether this recovery is merely an increase from a very low level, or really the beginnings of an extended upturn in the economy. We will also be acutely sensitive to the other half of the equation, valuation, which, in our estimation, appears a bit extended relative to our perception of the muted growth rates we expect to see coming out of the recession. Outside of this arena, we see darker spots in the Japanese economy, still struggling with economic reform and now allowing the currency to slide in an attempt to get inflation back into the economy. Even so, there are a number of high-quality companies in Japan which stand to benefit from any global recovery. Among the brightest stars is China, where entry to the World Trade Organization has combined with an educated and very inexpensive labor force to attract business from foreign companies in the West and Japan. Overall, we continue to be opportunistic and seek to invest in companies that will provide potential superior returns for our shareholders. - ------------------------------------- 6 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD SMALL COMPANY HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] STEVEN C. ANGELI, CFA Senior Vice President and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 8/9/1996 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
SMALL COMPANY IA RUSSELL 2000 ---------------- ------------ 8/9/1996 $10,000 $10,000 12/31/1996 $10,715 $11,148 12/31/1997 $12,685 $13,641 12/31/1998 $14,158 $13,293 12/31/1999 $23,479 $16,119 12/31/2000 $20,398 $15,632 12/31/2001 $17,355 $16,021
- -------------------------------------------------------------------------------- Returns (Inception 8/9/1996)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Small Company IA - 14.92% 10.12% 10.75% Russell 2000 2.49% 7.52% 9.13%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Small Company HLS Fund.(The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 8/9/1996 would have been valued at $17,190 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Small Company HLS Fund returned -14.9% for the 12-months ending December 31, 2001. The Fund underperformed its competitive group as represented by the Lipper Small Cap Growth VA-UF Average, which returned -12.4%. The Fund's market benchmark, the Russell 2000 Growth Index, returned -9.2%. Q. WHY DID THE FUND PERFORM THIS WAY? In spite of the Fund's underweight position in the poorly performing technology sector, performance was hurt by several holdings in the sector. Some of the major detractors were stocks such as Vignette Corp. (software & services) and Manugistics Group, Inc. (software & services) that were initially thought to be able to better withstand the technology implosion. However, when the chips finally fell nearly all technology companies missed earnings estimates, and the higher-quality, defensive companies were struck even more forcefully than many of the lower-quality names. On a positive note, the Fund was positioned for what is emerging to be an unprecedented cycle in video gaming, and the Fund's holdings in the health care sector were relatively good performers. For the year, the top three contributors to performance were McDATA Corp. (communications), Optimal Robotics Corp. (software & services) and Hollywood Entertainment Corp. (retail). Q. WHAT IS YOUR OUTLOOK FOR 2002? The Fed's aggressive monetary policy combined with the stimulative fiscal actions of issuing tax rebates and spending to combat terrorism appear to be setting the stage for an economic recovery in 2002. Accordingly, we have reduced our exposure to defensive areas like health care and re-positioned the Fund in cyclical sectors such as consumer discretionary, industrials and materials. - ------------------------------------- 7 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] ANDREW S. OFFIT Senior Vice President & Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 4/30/2001 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
INTERNATIONAL CAPITAL APPRECIATION IA MSCI EAFE --------------- --------- 4/30/2001 $10,000 $10,000 12/31/2001 $ 8,602 $ 8,528
- -------------------------------------------------------------------------------- Returns (Inception 4/30/2001)
Cumulative Returns as of December 31, 2001 SINCE INCEPTION --------------- International Capital Appreciation IA -13.98% MSCI EAFE -14.72%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford International Capital Appreciation HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 4/30/2001 would have been valued at $8,587 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford International Capital Appreciation HLS Fund was launched on April 30, 2001. Since its inception the Fund returned -14.0%, outperforming the MSCI EAFE Index, the fund's benchmark, which returned -14.7%. Q. WHY DID THE FUND PERFORM THIS WAY? During the period, the Fund focused on theme and sector strategies, and emphasized growth both in sectors and in individual companies. Strong contributors for the fund during the period included Samsung Electronics Co., Ltd. (electronics), Tandberg (communications), Ryanair Holdings PLC (transportation), Capita Group PLC (business services) and Marks & Spencer PLC (retail). Holdings that were weak performers included Nestle S.A. (food, beverage & tobacco) and Swedish Match PLC (consumer non-durables). Q. WHAT IS YOUR OUTLOOK FOR 2002? Going forward, we are more optimistic about 2002. While the Fed is nearing the end of its interest rate cuts in the U.S., we believe it is now time for investors to return to economic growth in many areas of the world. Markets have time on their side and as we move through 2002, current business trends should improve and comparisons should get easier. The first quarter may be choppy, but we are looking for better returns throughout the year. As always, the market environment proves to be both interesting and challenging for international investors. While volatility can cause periods of dislocation, overall this is good news for the Fund. Over the long term, we continue to identify winning sectors and companies, as a result, the Fund should strive to outperform. - -------------------------------------- 8 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] SAUL J. PANNELL, CFA Senior Vice President and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
CAPITAL APPRECIATION IA S&P 500 --------------- ------- 12/91 $10,000 $10,000 '92 $11,701 $10,762 '93 $14,127 $11,847 '94 $14,478 $12,003 '95 $18,855 $16,514 '96 $22,758 $20,306 '97 $27,842 $27,080 '98 $32,152 $34,819 '99 $44,197 $42,145 '00 $50,039 $38,310 12/01 $46,655 $33,758
- -------------------------------------------------------------------------------- Returns (Inception 4/2/1984)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Capital Appreciation IA - 6.94% 15.40% 16.64% S&P 500 - 11.88% 10.70% 12.93%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Capital Appreciation HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 12/31/1991 would have been valued at $45,815 on 12/31/2001. + The Composite Index consists of the Russell 2500 Index and the S&P Index. Q. HOW DID THE FUND PERFORM? Hartford Capital Appreciation HLS Fund returned -6.9% for the 12-months ending December 31, 2001. The Fund's return trailed the -4.1% return for the Composite Index(+), but far exceeded that of the Lipper VA-UF Multi Cap Core Average, which returned -12.7%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's underperformance relative to the market benchmark resulted from the poor performance of several holdings in the consumer discretionary and utilities sectors. The electric utility Calpine Corp. (utilities), was the largest detractor from Fund performance. Holdings that contributed the most to the Fund's return were Northrop Grumman Corp. (transportation), Samsung Electronics Co., Ltd. (electronics) and Staples, Inc. (retail). The Fund remains significantly overweight relative to the index in industrial stocks, where names include Tyco International Ltd. (consumer non-durables), Raytheon Co. (aerospace & defense), and Minnesota Mining & Manufacturing Co. (computers & office equipment). Q. WHAT IS YOUR OUTLOOK FOR 2002? Our outlook for economic activity worldwide is for a gradual recovery beginning perhaps as early as the first quarter of 2002, as the combined impact of low rates, lower taxes, fiscal stimulus, and the normal inventory cycle lead to higher spending. Interest rates have probably bottomed, and the U.S. dollar has probably peaked. We think the U.S. market is fully priced, but we see many opportunities for upward revaluation of specific stocks. In a stock-picker's market, as opposed to a trending market, our fundamental bias should hold us in good stead. We are optimistic that our approach will continue to provide satisfactory returns going forward. - ------------------------------------- 9 -------------------------------------- - -------------------------------------------------------------------------------- HARTFORD MIDCAP VALUE HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] JAMES N. MORDY Senior Vice President & Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 4/30/2001 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
MIDCAP RUSSELL VALUE IA 2500 VALUE -------- ---------- 4/30/2001 $10,000 $10,000 12/31/2001 $ 9,959 $10,593
- -------------------------------------------------------------------------------- Returns (Inception 4/30/2001)
Cumulative Returns as of December 31, 2001 SINCE INCEPTION --------------- MidCap Value IA - 0.41% Russell 2500 Value 5.93%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford MidCap Value HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results.The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 4/30/2001 would have been valued at $9,942 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford MidCap Value HLS Fund was launched on April 30, 2001. Since its inception the Fund returned -0.4%, trailing the Russell 2500 Value Index return of 5.9% and the Lipper Mid-Cap Value VA-UF Average return of 3.1%. Q. WHY DID THE FUND PERFORM THIS WAY? The performance of the Fund trailed that of the benchmark primarily due to the timing of the Fund's inception and to the fact that we had the Fund positioned to benefit from an economic recovery which we thought would begin to be evident during the fourth quarter. The Fund's performance exceeded both the benchmark and the peer group during the 4Q as evidence of the economic recovery began to materialize. During the period the Fund was overweight in two strong sectors, information technology and consumer discretionary, due to our belief in the eventual economic recovery; and we were underweight in defensive areas like health care, REITs and utilities. In addition to the Fund's positioning, strong stock selection in materials and consumer staples also contributed to the performance of the Fund. The five stocks that contributed the most to performance for the period were Dal-Tile International, Inc. (consumer durables), UnionBanCal Corp. (banks), Packaging Corp. of America (forest & paper products), Ace Ltd. (insurance) and Suiza Foods (consumer non-durables). Q. WHAT IS YOUR OUTLOOK FOR 2002? The first quarter of 2002 is likely to represent the earnings trough of the recession. Aggressive monetary and fiscal stimulus, lower energy costs, a turn in the inventory cycle, and increased consumer confidence will bring recovery to the U.S. economy. Having said this, we believe the recovery could be somewhat subdued. Growth in consumer spending (the most resilient element that supported our economy during 2000-2001) should be restrained during 2002. Sectors like housing and autos, which normally lead the way out of downturns, have little room to improve after having been stimulated by low interest rates. Productivity growth will be dragged down by investment in security and the war on terrorism. And some of the technology-related excesses, particularly in telecom, have yet to be fully worked off. Nevertheless, we foresee a capital expenditure recovery to start in the second half of 2002, as we begin to hit obsolescence level and renewed product cycles, such as the one in the PC industry. We believe we should continue to be over weight in sectors that will disproportionately benefit from a recovery (i.e. technology, consumer discretionary), and continue to rely on stock selection for the outperformance of the portfolio as a whole. - ------------------------------------- 10 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD MIDCAP HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] PHILLIP H. PERELMUTER Senior Vice President and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 7/14/1997 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
MIDCAP IA S&P 400 --------- ------- 7/14/1997 $10,000 $10,000 12/31/1997 $11,381 $10,001 12/31/1998 $14,406 $11,826 12/31/1999 $21,869 $13,567 12/31/2000 $27,427 $15,941 12/31/2001 $26,434 $17,778
- -------------------------------------------------------------------------------- Returns (Inception 7/14/1997)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- MidCap IA - 3.62% 24.30% S&P 400 - 0.62% 13.74%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford MidCap HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results.The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 7/14/1997 would have been valued at $26,223 on 12/31/2001. Hartford MidCap HLS Fund was closed to new and subsequent premium payments along with transfers of contract value as of the close of the New York Stock Exchange on June 29, 2001. Q. HOW DID THE FUND PERFORM? Hartford MidCap HLS Fund returned -3.6% for the 12-months ending December 31, 2001. The Fund underperformed its competitive group as represented by the Lipper Mid-Cap Core VA-UF Average, which returned -3.3%. The Fund's market benchmark, the S&P Mid-Cap 400 Index, returned -0.6%. Q. WHY DID THE FUND PERFORM THIS WAY? Virtually all of the underperformance versus the benchmark and peer group can be traced to three poor-performing stocks in the telecommunications sector: McLeodUSA, Inc., American Tower Corp. and Nextel Communications, Inc. On a positive note, the Fund enjoyed relatively strong performance in the health care sector as picks such as Gilead Sciences, Inc. (drugs) and St. Jude Medical, Inc. (medical instruments & supplies) appreciated handsomely. Strong contributors for the fund during the year included Gartner Group, Inc. (software & services), Intuit, Inc. (software & services) and UnionBanCal Corp. (banks). Q. WHAT IS YOUR OUTLOOK FOR 2002? It now appears that the economic slowdown began last March and was only exacerbated by the events of September 11. As we close the year, there are now more signs of strength than weakness, indicating that we are nearing the trough in economic activity. With benefits from monetary policy (almost one rate cut per month during 2001), tax cuts, and energy price declines, strong stimulus has been put in place to get the economy moving again. Over the past quarter, due to the strong outperformance of some of the more economically-sensitive sectors (energy, consumer discretionary, technology), some or much of the improvement in economic activity may already be reflected in the prices of stocks in those sectors. Nevertheless, we are cautiously overweighting cyclical sectors in anticipation of an economic recovery, and we also look to management changes to serve as a catalyst for several of our top holdings. - ------------------------------------- 11 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r TROND SKRAMSTAD Senior Vice President, Partner and Director [PHOTO] of International Equities Wellington Management Company, LLP A s s o c i a t e P o r t f o l i o M a n a g e r ANDREW S. OFFIT Senior Vice President [PHOTO] and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
INTERNATIONAL MSCI OPPORTUNITIES IA EAFE GDP* ---------------- --------- 12/31/1991 $10,000 $10,000 '92 $ 9,553 $ 9,035 '93 $12,770 $12,067 '94 $12,527 $13,010 '95 $14,271 $14,461 '96 $16,117 $15,565 '97 $16,172 $16,463 '98 $18,300 $20,860 '99 $25,594 $27,327 '00 $21,217 $23,083 12/31/2001 $17,253 $17,969
- -------------------------------------------------------------------------------- Returns (Inception 7/2/1990)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR. ------ ------ -------- Int'l. Opp. IA - 18.73% 1.36% 5.60% MSCI EAFE GDP* - 22.20% 2.90% 6.03%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford International Opportunities HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results.The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 12/31/1991 would have been valued at $16,943 on 12/31/2001. * The Morgan Stanley Europe Australia Far East GDP-Net index. Q. HOW DID THE FUND PERFORM? Hartford International Opportunities HLS Fund returned -18.7% for the 12-months ending December 31, 2001. The Fund was ahead of both its benchmark and Lipper peer group average. The MSCI EAFE GDP Net USD Index returned -22.1%, while the Lipper VA-UF International average returned -21.5%. Q. WHY DID THE FUND PERFORM THIS WAY? The Portfolio benefited from strong stock selection, especially in the UK, Continental Europe and Japan. Stock selection was strongest in telecommunica- tions services and consumer discretionary and modestly negative in health care. Country weights also were additive to returns, especially the underweight in Japan and the allocations to South Korea and Taiwan, while the underweight in developed Asia ex-Japan detracted modestly from returns.We continue to be significantly underweight in the UK. The UK market outperformed last year and its less cyclical posture, combined with the fact that the Bank of England is likely to be the first to tighten policy rates this year, is now making us less interested. The end of 2001 saw a dramatic recovery in global markets, with most markets surpassing their pre-9/11 levels by year-end. The recovery was fueled by a com- bination of additional sharp cuts in interest rates around the globe, better than expected economic news considering the impact of the terrorist attacks, and positive political and military news regarding the war against terrorism. Q. WHAT IS YOUR OUTLOOK FOR 2002? While we have yet to see a definitive bottom in the global cycle, the global economic outlook looks brighter now than it has in some time. We believe that the very large amounts of monetary stimulus put into place by central banks over the last twelve months should engender a bottom in the first quarter. However, it may take another several months for companies and consumers to repair their near-term balance sheet stress and become confident enough to expand their spending. We expect to see solid, albeit unspectacular economic growth by the third quarter of this year, driven by increases in consumer spending and a bottoming in capital spending. However, we do not expect an especially sharp recovery in the economy, which has been more typical following prior recessions, as the lingering effects of the late-1990s bubble will take additional time to work through. - ------------------------------------- 12 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL LEADERS HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e m e n t [PHOTO] ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 10/1/1998 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GLOBAL MSCI LEADERS IA WORLD* ---------- ------ 10/1/1998 $10,000 $10,000 12/31/1998 $13,188 $12,115 12/31/1999 $19,830 $15,136 12/31/2000 $18,429 $13,141 12/31/2001 $15,380 $11,048
- -------------------------------------------------------------------------------- Returns (Inception 10/1/1998)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Global Leaders IA - 16.58% 14.14% MSCI World* - 16.52% 3.11%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Global Leaders HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 10/1/1998 would have been valued at $15,289 on 12/31/2001. *Index benchmark numbers are run using 9/30/98 as the inception date. Q. HOW DID THE FUND PERFORM? Hartford Global Leaders HLS Fund returned -16.6% for the 12-months ending December 31, 2001. The Fund was in line with its benchmark, while it slightly underperformed its peer group. The MSCI World USD benchmark returned -16.5%, and the Lipper VA-UF Global Average returned -15.3%. Q. WHY DID THE FUND PERFORM THIS WAY? Throughout this period, the Fund continued to focus on its themes and sector strategies. Stock picking remained critical to our strategy. Underperformance was due to an emphasis on growth rather than value stocks, as stock selections in the information technology, telecommunications, financials and health care sectors contributed to poor performance. The stock that contributed most negatively to performance for the year was Colt Telecom Group PLC (communications). While Colt did not miss its targets terribly, we miscalculat- ed the negative sentiment toward the sector and the small, but realistic, balance-sheet risk of the company. The Fund has never lost as much on an individual stock as it did on Colt Telecom Group PLC, and we are confident that this will not be repeated. However, we also had many successes during the year, including Samsung Electronics Co., Ltd. (electronics), Microsoft Corp. (software & services), Marks & Spencer PLC (retail), Viacom, Inc. (media & entertainment), Vodafone Group PLC (communications), Rentokil Intial PLC (business services) and Credit Suisse Group (banks). Sector allocations at year's end were overweight in telecommunications, information technology and consumer discretionary and the underweight in financials, utilities and industrials. Information technology continued to represent the largest absolute weight in the Fund. Q. WHAT IS YOUR OUTLOOK FOR 2002? Going forward, we are more optimistic about 2002. While the Fed is nearing the end of its interest rate cuts,it is now time for economic growth. Markets have time on their side and as we move through 2002, current business trends should improve and comparisons should get easier. The first quarter may be choppy, but we are looking for better returns throughout the year. As always, the market environment proves to be both interesting and challenging for global investors. While volatility can cause periods of dislocation, overall this is good news for the Fund. The Fund has superior products, market share, and management, making it a desirable investment, 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. - ------------------------------------- 13 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD STOCK HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r RAND L. ALEXANDER, CFA Senior Vice President, Partner and Director [PHOTO] of U.S. Core Equities Wellington Management Company, LLP A s s o c i a t e P o r t f o l i o M a n a g e r MAYA K. BITTAR, CFA [PHOTO] Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
STOCK IA S&P 500 -------- ------- 12/31/1991 $10,000 $10,000 '92 $11,005 $10,762 '93 $12,582 $11,847 '94 $12,344 $12,003 '95 $16,554 $16,514 '96 $20,588 $20,306 '97 $27,048 $27,080 '98 $36,101 $34,819 '99 $43,242 $42,145 '00 $40,198 $38,310 12/31/2001 $35,320 $33,758
- -------------------------------------------------------------------------------- Returns (Inception 8/31/1977)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Stock IA - 12.23% 11.37% 13.44% S&P 500 - 11.88% 10.70% 12.93%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Stock HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 12/31/1991 would have been valued at $34,665 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Stock HLS Fund returned -12.3% for the 12-months ending December 31, 2001. The Fund slightly underperformed its benchmark while it slightly outperformed its peer group. The S&P Index returned -11.9%, and the Lipper VA-UF Large-Cap Core Average returned -12.9%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund slightly underperformed the S&P 500 for the year because of an overweight position in utilities, an underweight in consumer discretionary, some poor stock selection in technology during the second quarter, and an emphasis on large-cap stocks. We began the year defensively, became more aggressive in the second quarter in response to continuing Fed rate cuts, backed away from the hope of a rapid economic recovery early in the third quarter, and turned more aggressive once again after the decline following the market reopening in mid September. The portfolio is now positioned for economic recovery. We have reduced health care and consumer staples and increased consumer discretionary and technology. However, the Fund remains broadly diversified among sectors in the belief that 2002 will also be a year when stock selection will prove to be more important than sector weightings. Q. WHAT IS YOUR OUTLOOK FOR 2002? We believe that the recession is just about over, thanks to aggressive easing by the Federal Reserve and an easing of fiscal policy. An economic recovery during the first half of 2002 implies that the Federal Reserve's lowering of short-term interest rates is very close to complete. While interest rates have been coming down, earnings estimates have been coming down faster and therefore, valuations have not improved in spite of the drop in the market. But markets are supposed to anticipate and it seems likely that earnings estimates are close to bottoming out and should begin rising sometime in the first half of 2002. While valuations may look rich on near-term earnings estimates, when the economy begins to recover, which it should, those who are brave enough to look beyond the near term may be handsomely rewarded. - ------------------------------------- 14 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] JAMES A. RULLO, CFA Senior Vice President and Partner Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 5/29/1998 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
GROWTH AND INCOME IA S&P 500 --------- ------- 5/29/1998 $10,000 $10,000 12/31/1998 $11,905 $11,365 12/31/1999 $14,503 $13,754 12/31/2000 $13,684 $12,503 12/31/2001 $12,587 $11,017
- -------------------------------------------------------------------------------- Returns (Inception 5/29/1998)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- Growth and Income IA - 8.02% 6.61% S&P 500 - 11.88% 2.73%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Growth and Income HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 5/29/1998 would have been valued at $12,506 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Growth and Income HLS Fund returned -8.0% for the 12-months ending December 31, 2001. The Fund exceeded the performance of the S&P 500 Index, which returned -11.9% and the Lipper Large Cap Core VA-UF average, which returned - -12.9%. Q. WHY DID THE FUND PERFORM THIS WAY? The outperformance for the Fund in 2001 was mainly driven by stock selection in financials and pharmaceuticals but was also broad-based, as the Fund outperformed in 14 of 22 S&P 500 economic industries. In particular, two Fund's holdings, UnionBanCal Corp. (banks) and Pacific Century Financial Corp. (banks), were strong performers for the year. Also, the Fund avoided many poor performing pharmaceutical stocks, and benefited from strong stock selection in biotechnology throughout the year. Q. WHAT IS YOUR OUTLOOK FOR 2002? While economic weakness may linger for a few months, the bottom of this recession seems very near. The combination of monetary and fiscal stimulus, falling energy bills, and more stable financial markets gives us confidence that recovery will emerge by spring. We forecast annual average real GDP growth of just 0.7% for 2002, but the economy should be growing at an annual rate near 3% by year end. In this environment, inflation will decrease. While the Federal Reserve may soon be through cutting interest rates, it will be some time before they contemplate tightening policy. Though we still need to acknowledge the geopolitical risks that confront the world post-September 11, we are optimistic that the U.S. economy and financial markets can weather the uncertainties. Our conviction in an improving U.S. economy has risen since last quarter, and we are now more confident that an economic recovery will begin to show signs by mid-2002. - ------------------------------------- 15 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD VALUE HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r JOHN R. RYAN, CFA Senior Vice President & Managing Partner Wellington Management Company, LLP I n v e s t m e n t T e a m KAREN H. GRIMES, CFA Vice President Wellington Management Company, LLP STEVEN T. IRONS, CFA Vice President Wellington Management Company, LLP W. MICHAEL RECKMEYER, CFA Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 4/30/2001 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
RUSSELL VALUE IA 1000 VALUE -------- ---------- 4/30/2001 $10,000 $10,000 12/31/2001 $10,006 $ 9,559
- -------------------------------------------------------------------------------- Returns (Inception 4/30/2001)
Cumulative Returns as of December 31, 2001 SINCE INCEPTION --------------- Value IA 0.06% Russell 1000 Value - 4.41%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Value HLS Fund.(Returns include the Fund level expenses, but exclude the insurance charges).Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed,it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 4/30/2001 would have been valued at $9,988 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Value HLS Fund was launched on April 30, 2001. Since its inception the Fund returned 0.1%, outperforming the Russell 1000 Value Index return of -4.4% and the Lipper Large-Cap Value VA-UF Average return of -6.0%. Q. WHY DID THE FUND PERFORM THIS WAY? Stock selection in seven out of ten broad industry sectors was additive to the Fund's benchmark-relative performance for the period. Holdings in industrials, consumer discretionary, utilities and information technology sectors rallied sharply and were the largest positive contributors, while holdings in materials, consumer staples, and telecommunication sectors detracted the most from results. A small sample of stocks that contributed most to performance during the period were Cooper Industries, Inc. (metals, minerals & mining), Tenet Healthcare Corp. (health services) and Nike, Inc. (rubber & plastics products). Q. WHAT IS YOUR OUTLOOK FOR 2002? Visibility regarding the outlook for 2002 remains cloudy, but the highest probability scenario involves an economic recovery in the U.S. starting in the first half of the year. Assuming an economic recovery does occur over the next six months, the U.S. will have experienced only a mild recession, which is quite remarkable given all the problems to digest. Lower energy costs, tax cuts, and lower interest rates all have helped consumer spending, the backbone of economic strength. In this scenario, however, it is hard to envision a strong recovery bounce, because many consumer cyclical sectors have held up well. Capital spending should recover, rather than jump, as operating rates are low and bond-rating agencies have scared public borrowers. Bank lending policy remains reasonably tight. All things considered, we assume 2% real GDP growth globally in 2002, which would represent a substandard recovery year. - ------------------------------------- 16 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD DIVIDEND AND GROWTH HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] EDWARD P. BOUSA, CFA Vice President Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 3/9/1994 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
DIVIDEND AND GROWTH IA S&P 500 --------- ------- 3/9/1994 $10,000 $10,000 12/31/1994 $10,188 $10,062 12/31/1995 $13,894 $12,371 12/31/1996 $17,076 $17,013 12/31/1997 $22,521 $22,687 12/31/1998 $26,240 $29,207 12/31/1999 $27,634 $35,352 12/31/2000 $30,661 $32,114 12/31/2001 $29,422 $28,299
- -------------------------------------------------------------------------------- Returns (Inception 3/9/1994)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR SINCE INCEPTION ------ ------ --------------- Dividend and Growth IA - 4.04% 11.48% 14.80% S&P 500 - 11.88% 10.70% 14.23%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Dividend and Growth HLS Fund. (The annualized returns include the Fund level expenses,but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 3/9/1994 would have been valued at $29,012 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Dividend and Growth HLS Fund returned -4.0% for the 12-months ending December 31, 2001. The Fund outperformed its competitive group as represented by the Lipper Equity Income VA-UF Average, which returned - 4.3%. The Fund's market benchmark, the S&P 500, returned -11.9%. Q. WHY DID THE FUND PERFORM THIS WAY? In 2001, the Fund outperformed its peer group and market benchmark comparisons. The Fund's strong relative outperformance versus the benchmark can be largely attributed to strong stock selection overall. Sector allocation was also a positive factor as the allocation decisions regarding most sectors contributed positively to the Fund's outperformance. In particular, the Fund's underweight in the technology sector in addition to its positive stock selection in Microsoft Corp. (software & services) and International Business Machines Corp. (computers & office equipment) advanced the Fund's relative position. Other noteworthy stocks held during the year include Verizon Communications, Inc. (communications), AT&T Corp. (communications) and First Data Corp. (software & services). Q. WHAT IS YOUR OUTLOOK FOR 2002? Following the September 11 tragedy, the fourth-quarter economy was soft, but perhaps a bit better than feared. First, some third-quarter activity fell into the fourth quarter. Second, the Fed was largely successful in buoying the market valuation through monetary stimulation. Third, President Bush has done an outstanding job in gaining the confidence of the American people, particularly in the war in Afghanistan. In addition to these positives, the widespread loss of jobs in the U.S. has had less of a negative impact than previously feared. In the next couple of quarters, the economy will likely remain sluggish as it absorbs the numerous layoffs. Barring any significant terrorist activity, the U.S. economy should begin to recover in the second half of 2002. With this recovery in mind, but with special attention to valuation, we look to cyclical groups such as basic materials, transportation and capital goods to do well in 2002. We have hedged our view by overweighting some defensive, but inexpensive, groups such as electric utilities and supermarkets. - ------------------------------------- 17 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND (FORMERLY HARTFORD INTERNATIONAL ADVISERS HLS FUND) - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r s ANDREW S. OFFITT Senior Vice President and Partner Wellington Management Company, LLP ROBERT EVANS Senior Vice President and Partner Wellington Management Company, LLP - -------------------------------------------------------------------------------- Returns*(Inception 3/1/1995)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR SINCE INCEPTION ------ ------ --------------- Global Advisers IA -6.25% 5.22% 7.78% MSCI EAFE-GDP -21.93% 3.23% 5.61% MSCI World -16.52% 5.74% 9.23% Salomon World Govt. Bond 6.10% 8.20% 9.70% Lehman Brothers Aggregate Bond USD Hgd 8.44% 7.43% 7.91%
P e r f o r m a n c e O v e r v i e w HARTFORD GLOBAL ADVISERS HLS FUND AND FORMER BENCHMARKS* 3/1/1995 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
SALOMON WORLD GLOBAL MSCI GOVERNMENT ADVISERS IA EAFE-GDP BOND EX U.S. INDEX ----------- -------- ------------------ 3/1/1995 $10,000 $10,000 $10,000 12/95 $11,584 $11,460 $11,378 12/96 $12,950 $12,384 $11,842 12/97 $13,665 $13,145 $11,338 12/98 $15,489 $16,475 $15,618 12/99 $19,077 $21,585 $12,678 12/00 $17,812 $18,233 $12,344 12/31/2001 $16,699 $14,525 $18,842
P e r f o r m a n c e O v e r v i e w HARTFORD GLOBAL ADVISERS HLS FUND AND NEW BENCHMARKS* 3/1/1995 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
LEHMAN BROTHERS GLOBAL MSCI AGGREGATE ADVISERS IA WORLD BOND USD HGD ----------- -------- ------------------ 3/1/1995 $10,000 $10,000 $10,000 12/95 $11,584 $12,135 $11,378 12/96 $12,950 $13,834 $11,842 12/97 $13,665 $16,079 $11,338 12/98 $15,489 $20,067 $13,355 12/99 $19,077 $25,152 $12,678 12/00 $17,812 $21,902 $12,344 12/31/2001 $16,699 $18,299 $16,835
Q. HOW DID THE FUND PERFORM? Hartford Global Advisers HLS Fund's investment strategy began its global focus effective May 1, 2001. At that time, the Fund's strategy changed from non-U.S. to global thereby allowing the Fund's fixed income and equity portfolios more flexibility to include U.S. investments. For the eight-month period ended December 31, 2001, the Fund returned -3.1%, which compares favorably to the - -5.4% return of the Lipper Global Flexible Variable Annuity Average. For this period, the Fund's return also exceeded the Composite Index, which returned - -4.2. Q. WHY DID THE FUND PERFORM THIS WAY? Post September 11th, our asset allocation portfolios retained a significant overweight to equities, and an underweight in both U.S. and non-U.S. bonds. Our overweight was split between European and Asian ex-Japan equity markets, with an underweight to Japan and North America. Most of these positions, except the underweight to the North American market, worked to our benefit. Overall, asset allocation decisions contributed positively to total out-performance during the final portion of the period. To begin 2002 we will retain our overweight to equities, though at reduced levels compared to the prior quarter. Q. WHAT IS YOUR OUTLOOK FOR 2002? The past year brought an unprecedented amount of global monetary stimulus, which will have effects lasting well into 2002. The U.S. Federal Funds rate, after 11 cuts, now stands at its lowest rate in 40 years. While monetary stimulus has not been as aggressive outside the U.S., it has certainly been supportive, and has accelerated in the fourth quarter. A low global nominal GDP environment in the first half of 2002 likely will keep monetary policy easy worldwide at least until mid-year. While these developments should continue to provide support for equity markets for much of 2002, the recent strong rally in global equity markets has reduced their near-term upside. Also, there is a risk that the markets get over-optimistic about the pace of the 2002 recovery, which will likely be sluggish for at least the next six months. We will retain our overweight U.S. and European equities at the expense of Japanese equities. The charts represent a hypothetical investment in the Hartford Global Advisers HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 3/1/1995 would have been valued at $16,494 on 12/31/2001. *Index benchmarks are run using a 2/28/95 inception date. - ------------------------------------- 18 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r s RAND L. ALEXANDER, CFA Senior Vice President, Partner and Director of U.S. Core Equities [PHOTO] Wellington Management Company, LLP PAUL D. KAPLAN Senior Vice President, Partner and Director of [PHOTO] Fixed Income Wellington Management Company, LLP P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
LEHMAN GOVT. ADVISERS IA S&P 500 /CREDIT BOND ----------- ------- ------------ 12/31/1991 $10,000 $10,000 $10,000 '92 $10,830 $10,762 $10,758 '93 $12,161 $11,847 $11,945 '94 $11,827 $12,003 $11,525 '95 $15,178 $16,514 $13,743 '96 $17,696 $20,306 $14,141 '97 $22,034 $27,080 $15,522 '98 $27,467 $34,819 $16,991 '99 $30,376 $42,145 $16,626 '00 $30,148 $38,310 $18,596 12/31/2001 $28,775 $33,758 $20,177
- -------------------------------------------------------------------------------- Returns (Inception 3/31/1983)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Advisers IA - 4.64% 10.19% 11.14% S&P 500 - 11.88% 10.70% 12.93% Lehman Govt./ Credit Bond 8.50% 7.37% 7.27%
The chart represents a hypothetical investment in the Hartford Advisers HLS Fund.(The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 2/31/1991 would have been valued at $28,261 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Advisers HLS Fund returned -4.6% for the 12-months ending December 31, 2001. The Fund slightly underperformed its benchmark while it slightly outperformed its peer group. The Composite Index returned -3.1%, and the Lipper VA-UF Flexible Portfolio Average returned -5.3%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund slightly underperformed the S&P 500 for the year because of an overweight position in utilities, an underweight in consumer discretionary, some poor stock selection in technology during the second quarter, and an emphasis on large-cap stocks. We began the year defensively, became more aggressive in the second quarter in response to continuing Fed rate cuts, backed away from the hope of a rapid economic recovery early in the third quarter, and turned more aggressive once again after the decline following the market reopening in mid September. The portfolio is now positioned for economic recovery. We have reduced health care and consumer staples and increased consumer discretionary and technology. However, the Fund remains broadly diversified among sectors in the belief that 2002 will also be a year when stock selection will prove to be more important than sector weightings. Investment-grade corporate bonds provided total returns that comfortably exceeded those offered by Treasury securities of comparable duration. The solid performance of the high-quality corporate sector was the result of a handsome yield premium at the first of the year, though such strong performance was still surprising given the weakness of the economy and the general deterioration in credit condition among corporate borrowers. A significant portion of the good performance in the corporate sector occurred during the fourth quarter as the outlook for the economy appeared to improve. Q. WHAT IS YOUR OUTLOOK FOR 2002? We believe that the recession is just about over, thanks to aggressive easing by the Federal Reserve and an easing of fiscal policy. An economic recovery during the first half of 2002 implies that the Federal Reserve's lowering of short-term interest rates is very close to complete. While interest rates have been coming down, earnings estimates have been coming down faster and therefore, valuations have not improved in spite of the drop in the market. But markets are supposed to anticipate and it seems likely that earnings estimates are close to bottoming out and should begin rising sometime in the first half of 2002. While valuations may look rich on near-term earnings estimates, when the economy begins to recover, which it should, those who are brave enough to look beyond the near term may be handsomely rewarded. Furthermore, the non-Treasury sectors of the bond market should be the better performers as the market continues to sense recovery. Both corporate bonds and mortgage-backed securities should provide better returns than Treasury securities over the course of the year. - ------------------------------------- 19 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company P e r f o r m a n c e O v e r v i e w 10/1/1998 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
LEHMAN HIGH HIGH YIELD IA YIELD* CORPORATE ------------- ---------------- 10/1/1998 $10,000 $10,000 10/31/1998 $10,358 $10,213 10/31/1999 $10,845 $10,456 10/31/2000 $10,968 $ 9,844 12/31/2001 $11,263 $10,365
- -------------------------------------------------------------------------------- Returns (Inception 10/1/1998)
Average Annual Returns as of December 31, 2001 1 YEAR SINCE INCEPTION ------ --------------- High Yield IA 2.69% 3.72% Lehman High Yield* Corporate 5.28% 1.11%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford High Yield HLS Fund.(The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 10/1/1998 would have been valued at $11,198 on 12/31/2001. * Index benchmarks are run using a 9/30/98 inception date. Q. HOW DID THE FUND PERFORM? Hartford High Yield HLS Fund returned 2.7% for the 12-months ending December 31, 2001. The Fund underperformed its benchmark, Lehman High Yield Corporate Bond Index, which returned 5.3%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's above-average credit quality and low default experience, particularly in the second half of this year as an increasing likelihood of recession caused high yield securities to underperform high grade, continued to benefit performance this year. We focused on our overweight positions in the health care and energy sector. Both positions continue to enjoy upgrades in their debt ratings as their financial positions improve. Although premature in the second quarter, the Fund's overweight position in select technology, telecommunications and media sectors aided its performance this year. These deeply-discounted issues recovered from the depths of their second-quarter sell-off. Q. WHAT IS YOUR OUTLOOK FOR 2002? The tragic events of September 11th reinforced the view we have held for most of the year that consumer-related high yield issuers such as those in the retail, homebuilding and gaming industries, along with lodging and transportation issuers were ripe for a correction. We have favored and continue to favor issuers in the telecommunications and technology sectors. Many of these securities are available at very high yields, and in sharp contrast to our view of early 2000, we believe that the market is currently overestimating the likelihood of default among these issuers. We also are emphasizing some of the basic industries such as pulp/paper, chemicals, and metals and mining. Individual issuer and security selection is key, and we are working closely with our traders and analysts to identify those with high potential for attractive return. - ------------------------------------- 20 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD BOND HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
LEHMAN BOND IA AGGREGATE BOND ------- -------------- 12/31/1991 $10,000 $10,000 '92 $10,557 $10,740 '93 $11,637 $11,787 '94 $11,180 $11,443 '95 $13,253 $13,556 '96 $13,720 $14,049 '97 $15,277 $15,404 '98 $16,522 $16,743 '99 $16,189 $16,606 '00 $18,130 $18,537 12/31/2001 $19,703 $20,101
- -------------------------------------------------------------------------------- Returns (Inception 8/31/1977)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Bond IA 8.68% 7.51% 7.01% Lehman Aggregate Bond 8.44% 7.43% 7.23%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Bond HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 12/31/1991 would have been valued at $19,345 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Bond HLS Fund returned 8.7% for the 12-months ending December 31, 2001. The Fund overperformed its benchmark, Lehman Aggregate Bond Index, which returned 8.4%. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund generally benefited from an overweight position in investment grade corporate bonds and an underweight in mortgage passthrough securities throughout the year. Sectors emphasized within corporates included energy, health care, telecommunications and technology. The Fund emphasis on intermediate Treasury holdings also enhanced overall performance as the Treasury yield curve steepened during the year. Small Fund holdings in euro-denominated government securities, as well as individual high yield issues detracted from overall Fund returns as these securities underperformed broad U.S. investment grade assets. Q. WHAT IS YOUR OUTLOOK FOR 2002? In spite of the apparent willingness of the Federal Reserve to continue to ease and the consensus outlook for low inflation, we do not believe that Treasuries offer much attraction given the absolute low yield levels at which they are trading. We therefore plan to underweight these issues in the portfolios for the foreseeable future. We do believe that the most attractive opportunities within the fixed income market are concentrated in the investment grade and high yield corporate markets. The aggressive easing by the Federal Reserve as well as the significant deleveraging begun by many companies will ultimately improve corporate credit quality. Extensive credit research combined with a willingness to buy issues which are priced to reflect their issuer's current fundamental challenges is important in identifying these opportunities. - ------------------------------------- 21 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND - -------------------------------------------------------------------------------- P o r t f o l i o M a n a g e r [PHOTO] PETER PERROTTI Vice President Hartford Investment Management Company P e r f o r m a n c e O v e r v i e w 12/31/1991 - 12/31/2001 Growth of a $10,000 Investment [PERFORMANCE GRAPH]
MORTGAGE LEHMAN MORTGAGE SECURITIES IA BACKED SECURITIES ------------- ----------------- 12/31/1991 $10,000 $10,000 '92 $10,469 $10,696 '93 $11,132 $11,428 '94 $10,947 $11,244 '95 $12,717 $13,133 '96 $13,362 $13,835 '97 $14,566 $15,148 '98 $15,544 $16,203 '99 $15,781 $16,504 '00 $17,403 $18,346 12/31/2001 $18,708 $19,874
- -------------------------------------------------------------------------------- Returns (Inception 1/1/1985)
Average Annual Returns as of December 31, 2001 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- Mortgage Securities IA 7.50% 6.96% 6.46% Lehman Mortgage Backed Securities 8.22% 7.49% 7.10%
- -------------------------------------------------------------------------------- The chart represents a hypothetical investment in the Hartford Mortgage Securities HLS Fund.(The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares since 12/31/1991 would have been valued at $18,373 on 12/31/2001. Q. HOW DID THE FUND PERFORM? Hartford Mortgage Securities HLS Fund returned 7.5% for the 12-months ending December 31, 2001. The Fund underperformed its benchmark, Lehman Mortgage Backed Securities Index, which returned 8.2%. Q. WHY DID THE FUND PERFORM THIS WAY? The economy started the year on weak footing and slowed from there, into a recession. Technology and telecommunications continued to slide, as did all manufacturing, with the NAPM index spending the entire year on the critical 50 level. Job losses were heavy all year as corporations were cutting costs, and then spiked after September 11th. Although the housing market remained strong and inflation trended lower,it was hard to find any other bright spots in the economic data. The Treasury yield curve began 2001 virtually flat,as both 2-year and 10-year Treasuries yielded about 5.0%. An aggressive Federal Open Market Committee, dropping the Federal Funds rate by 4.75% to end the year at 1.75%, drove the rates of shorter maturity Treasuries lower. While the 10-year Treasury closed the year still around 5.0%, the 2-year ended at 3.0%. Overall,it was the second year in a row for the fixed income market to outpace the equity market. Mortgage rates, which are tied more to the longer maturity Treasuries did not change much throughout the year, with the exception of a 0.75% drop in the two months following September 11th. This relatively small change in rates, caused the largest refinancing wave in history. Homeowners, many who were surprised that the rates did not drop sooner,quickly took advantage of the drop and refinanced at a torrid pace. The net supply was absorbed by demand from banks and the housing GSEs, Fannie Mae and Freddie Mac. The mortgage market posted good returns for the year. For the year, the Fund's performance was hurt by an overweight in newer production mortgages versus those issued a few years back. The newly issued securities showed a significantly higher sensitivity to prepayments,causing them to underperform their seasoned counterparts. However,for the final quarter of the year, the Fund experienced favorable relative returns by overweighting securities backed by 15-year mortgages. The shorter mortgages proved to have less prepayment sensitivity than those backed by 30-year mortgages,leading to better returns during the refinancing spike. Q. WHAT IS YOUR OUTLOOK FOR 2002? The positioning of the Fund for 2002, has moved, and will continue to move, toward a more aggressive stance. With the current expectation that we have seen the low in rates for the cycle,it is a good time to increase the overall yield of the Fund, which in turn adds to the prepayment sensitivity. The focus will be on security selection to reflect our current outlook,with the Fund remaining at a neutral stance toward interest rate risk. The overall mortgage market is very attractively priced,and it is an excellent time to increase exposure to the market, especially when comparing to Treasury securities. We maintain a small position in Treasury Inflation Protected Securities, which offer good long-term value, even accounting for the current benign inflation environment. - ------------------------------------- 22 ------------------------------------- - -------------------------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- 95.1% COMMUNICATIONS -- 87.6% 6 ALLTEL Corp............................ $ 346 *15 AT&T Canada, Inc., Class B............. 438 26 AT&T Corp.............................. 472 *+19 AT&T Wireless Services, Inc............ 275 *+12 BCE, Inc............................... 262 9 BellSouth Corp......................... 351 5 Broadwing, Inc......................... 48 *116 BT Group PLC........................... 426 40 Cable & Wireless PLC................... 190 *23 COLT Telecom Group PLC................. 38 ***14 Koninklijke (Royal) KPN N.V............ 71 +11 Korea Telecom Corp., ADR............... 215 *+36 Nextel Partners, Inc................... 430 @@0 NTT DoCoMo, Inc........................ 176 145 Olivetti S.p.A......................... 186 *51 Orange S.A............................. 462 34 Qwest Communications International, Inc................................... 476 9 SBC Communications, Inc................ 356 *+11 Sprint PCS Group....................... 269 89 Telecom Italia S.p.A................... 473 7 Telefonica S.A., ADR................... 263 *55 Telekom Austria AG..................... 457 9 Verizon Communications, Inc............ 427 167 Vodafone Group PLC..................... 436 +19 WorldCom, Inc.......................... 241 *23 WorldCom, Inc. -- WorldCom Group....... 327 ------- 8,111 ------- MEDIA & ENTERTAINMENT -- 7.5% *+14 Adelphia Communications Corp., Class A..................................... 421 *+8 Comcast Corp., Class A................. 277 ------- 698 ------- Total common stocks.................... $ 8,809 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 7.4% REPURCHASE AGREEMENT -- 7.4% $ 689 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02............. $ 689 ------- Total short-term securities............ $ 689 =======
MARKET VALUE ------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $9,277)........ 95.1% $ 8,809 Total short-term securities (cost $689).................................. 7.4 689 ----- ------- Total investment in securities (total cost $9,966)........................... 102.5 9,498 Cash, receivables and other assets....... 4.6 426 Securities lending collateral (See Note 2(i)).................................. 21.5 1,995 Payable for securities purchased......... (6.7) (626) Dividends payable........................ (0.4) (35) Securities lending collateral payable to brokers (See Note 2(i))................ (21.5) (1,995) ----- ------- Net assets............................... 100.0% $ 9,263 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 14,539 shares outstanding................................... $ 15 Capital surplus................................. 13,034 Accumulated undistributed net investment income........................................ 8 Accumulated net realized loss on investments.... (3,329) Unrealized depreciation of investments.......... (468) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@......... 1 Unrealized appreciation of other assets and liabilities in foreign currencies............. 2 ------- Net assets...................................... $ 9,263 =======
Class IA Net asset value per share ($7,679 / 12,052 shares outstanding) (600,000 shares authorized)................................... $0.64 ===== Class IB Net asset value per share ($1,584 / 2,487 shares outstanding) (200,000 shares authorized)...... $0.64 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). ** Securities contain some restriction as to public resale. At December 31, 2001, the market value of these securities amounted to $71 or 0.8% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero. @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ ---------- ------------- -------------- ----------- EURO (Buy) $255 $254 01/02/02 $ 1 ======
The accompanying notes are an integral part of this financial statement. 23 - -------------------------------------------------------------------------------- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- 97.0% BANKS -- 42.6% 18 Allied Irish Banks PLC............... $ 208 37 Australia & New Zealand Banking Group............................... 333 5 Banco Latinoamericano de Exportaciones S.A., E Shares........ 151 6 Banco Popular Espanol S.A. .......... 194 *22 Bank of Bermuda Ltd. ................ 1,040 26 Bank of Ireland...................... 244 7 Banque Nationale de Paris (BNP)...... 626 17 Citigroup, Inc. ..................... 860 10 Credit Suisse Group.................. 422 10 Fannie Mae........................... 795 8 Freddie Mac.......................... 517 14 Lloyds TSB Group PLC................. 149 @@0 Mitsubishi Tokyo Financial Group, Inc. ............................... 241 1 Morgan (J.P.) Chase & Co. ........... 29 36 Nordea AB............................ 189 32 Pacific Century Financial Corp. ..... 839 24 Royal Bank of Scotland Group PLC..... 577 18 Sumitomo Bank........................ 76 ------- 7,490 ------- FINANCIAL SERVICES -- 17.2% 34 Abbey National PLC................... 487 27 CGNU PLC............................. 332 1 Goldman Sachs Group, Inc. (The)...... 111 *+13 Investment Technology Group, Inc. ... 518 +15 Merrill Lynch & Co., Inc. ........... 803 6 Takefuji Corp. ...................... 443 +85 UniCredito Italiano S.p.A. .......... 341 ------- 3,035 ------- INSURANCE -- 37.2% +18 Ace Ltd.............................. 715 12 Aegon N.V. .......................... 336 8 Ambac Financial Group, Inc. ......... 440 +10 American International Group, Inc. ............................... 818 +39 Annuity & Life Re (Holdings), Ltd. ............................... 989 15 Cincinnati Financial Corp. .......... 588 *24 Clark/Bardes, Inc. .................. 611 *@@0 Converium Holding AG................. @@0 +25 Manulife Financial Corp., ADR........ 644 6 Marsh & McLennan Cos., Inc. ......... 677 7 MBIA, Inc. .......................... 375 +11 Reinsurance Group of America, Inc. ............................... 363 ------- 6,556 ------- Total common stocks.................. $17,081 ======= PRINCIPAL MARKET AMOUNT VALUE - --------- ------- SHORT-TERM SECURITIES -- 4.5% REPURCHASE AGREEMENT -- 4.5% $ 792 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................. $ 792 ------- Total short-term securities.......... $ 792 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $16,902)....... 97.0% $17,081 Total short-term securities (cost $792).................................. 4.5 792 ----- ------- Total investment in securities (total cost $17,694).......................... 101.5 17,873 Cash, receivables and other assets....... 2.1 370 Securities lending collateral (See Note 2(i)).................................. 18.6 3,272 Payable for securities purchased......... (3.0) (529) Dividends payable........................ (0.2) (40) Securities lending collateral payable to brokers (See Note 2(i))................ (18.6) (3,272) Other liabilities........................ (0.4) (66) ----- ------- Net assets............................... 100.0% $17,608 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 18,788 shares outstanding................................... $ 19 Capital surplus................................. 18,314 Accumulated undistributed net investment income........................................ 35 Accumulated net realized loss on investments.... (939) Unrealized appreciation of investments.......... 179 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@......... 1 Unrealized depreciation of other assets and liabilities in foreign currencies............. (1) ------- Net assets...................................... $17,608 =======
Class IA Net asset value per share ($14,216 / 15,166 shares outstanding) (600,000 shares authorized)................................... $0.94 ===== Class IB Net asset value per share ($3,392 / 3,622 shares outstanding) (200,000 shares authorized)...... $0.94 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero. The accompanying notes are an integral part of this financial statement. 24 - -------------------------------------------------------------------------------- @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- ----------- Australian Dollar (Buy) $ 7 $ 7 01/04/02 $ -- British Pound (Buy) 34 34 01/04/02 -- EURO (Buy) 15 15 01/02/02 -- EURO (Buy) 27 27 01/03/02 -- EURO (Buy) 10 10 01/04/02 -- EURO (Sell) 61 61 01/02/02 -- Japanese Yen (Buy) 51 51 01/04/02 -- Japanese Yen (Buy) 42 42 01/07/02 -- Japanese Yen (Buy) 18 18 01/08/02 -- Swedish Krona (Buy) 9 9 01/03/02 -- Swiss Franc (Buy) 22 21 01/04/02 1 ------ $ 1 ======
The accompanying notes are an integral part of this financial statement. 25 - -------------------------------------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 95.9% CHEMICALS -- 4.4% +101 Aventis S.A., ADR.................... $ 7,164 101 Bayer AG............................. 3,220 -------- 10,384 -------- CONSUMER NON-DURABLES -- 6.7% 52 AmerisourceBergen Corp. ............. 3,317 59 Cardinal Health, Inc. ............... 3,828 234 McKesson Corp. ...................... 8,755 -------- 15,900 -------- DRUGS -- 51.8% 248 Abbott Laboratories.................. 13,832 +39 Alkermes, Inc. ...................... 1,020 110 American Home Products Corp. ........ 6,774 +61 Amersham PLC, ADR.................... 2,926 229 AstraZeneca PLC, ADR................. 10,690 106 Banyu Pharmaceutical Co.............. 1,577 *54 Connetics Corp....................... 640 102 Eli Lilly & Co....................... 8,011 *31 Forest Laboratories, Inc............. 2,499 199 Fujisawa Pharmaceutical Co., Ltd..... 4,586 @18 Fujisawa Pharmaceutical Co., Ltd..... 415 *128 Genaera Corp......................... 499 *77 Genzyme Corp......................... 4,615 *62 Gilead Sciences, Inc................. 4,081 *+54 IDEXX Laboratories, Inc.............. 1,545 *268 Immunex Corp......................... 7,435 *+164 Medicines Co. (The).................. 1,896 57 Merck & Co., Inc..................... 3,363 156 Novartis AG.......................... 5,632 401 Pharmacia Corp....................... 17,085 72 Roche Holdings AG.................... 5,174 *+46 SangStat Medical Corp................ 896 241 Schering-Plough Corp................. 8,641 4 Serono S.A., Class B................. 3,801 5 Shionogi & Co., Ltd.................. 85 86 Tanabe Seiyaku Co., Ltd.............. 766 *101 Vertex Pharmaceuticals, Inc.......... 2,476 *+104 ViroPharma, Inc...................... 2,385 -------- 123,345 -------- ELECTRICAL EQUIPMENT -- 1.9% *+113 Molecular Devices Corp. ............. 2,362 *56 Waters Corp. ........................ 2,166 -------- 4,528 -------- HEALTH SERVICES -- 4.7% *229 Aclara Biosciences, Inc. ............ 1,163 163 HCA, Inc. ........................... 6,267 *45 ILEX Oncology Inc. .................. 1,209 *44 Tenet Healthcare Corp. .............. 2,601 -------- 11,240 --------
MARKET SHARES VALUE - --------- -------- INSURANCE -- 2.2% *103 Anthem, Inc.......................... $ 5,108 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 14.3% 130 Baxter International, Inc. .......... 6,961 106 Beckman Coulter, Inc. ............... 4,687 160 Becton, Dickinson & Co. ............. 5,311 223 Eisai Co., Ltd. ..................... 5,547 Gambro AB, B Shares.................. 4,473 281 Smith & Nephew PLC................... 1,698 *41 St. Jude Medical, Inc................ 3,145 *109 Viasys Healthcare, Inc............... 2,203 -------- 34,025 -------- RESEARCH & TESTING FACILITIES -- 8.8% *+269 Amylin Pharmaceuticals, Inc. 2,459 *29 Applera Corp. -- Celera Genomics Group............................... 782 *+21 Cephalon, Inc........................ 1,549 *213 Ciphergen Biosystems, Inc............ 1,704 *+70 CV Therapeutics, Inc................. 3,615 *+99 Exelixis, Inc........................ 1,647 *90 Gene Logic, Inc...................... 1,686 68 Monsanto Co.......................... 2,312 *+240 Orchid Biosciences, Inc.............. 1,318 *+112 Regeneron Pharmeceuticals, Inc....... 3,145 *55 Telik, Inc........................... 747 -------- 20,964 -------- RETAIL -- 1.1% 91 CVS Corp............................. 2,679 -------- Total common stocks.................. $228,173 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.7% REPURCHASE AGREEMENT -- 3.7% $8,738 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................. $ 8,738 -------- Total short-term securities.......... $ 8,738 ========
The accompanying notes are an integral part of this financial statement. 26 - --------------------------------------------------------------------------------
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $208,178)..... 95.9% $228,173 Total short-term securities (cost $8,738)............................... 3.7 8,738 ----- -------- Total investment in securities (total cost $216,916)................. 99.6 236,911 Cash, receivables and other assets...... 0.4 1,008 Securities lending collateral (See Note 2(i))................................. 11.7 27,739 Securities lending collateral payable to brokers (See Note 2(i))............... (11.7) (27,739) Other liabilities....................... (0.0) (7) ----- -------- Net assets 100.0% $237,912 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 161,727 shares outstanding.................................. $ 162 Capital surplus................................ 212,564 Accumulated undistributed net investment income....................................... 26 Accumulated undistributed net realized gain on investments.................................. 5,165 Unrealized appreciation of investments......... 19,995 -------- Net assets..................................... $237,912 ========
Class IA Net asset value per share ($202,131 / 137,350 shares outstanding) (600,000 shares authorized).................................... $1.47 ====== Class IB Net asset value per share ($35,781 / 24,377 shares outstanding) (200,000 shares authorized).................................... $1.47 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933, these securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $415 or 0.2% of net assets. The accompanying notes are an integral part of this financial statement. 27 - -------------------------------------------------------------------------------- HARTFORD GLOBAL TECHNOLOGY HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 99.4% BUSINESS SERVICES -- 5.5% *99 Accenture Ltd. ...................... $ 2,660 *100 Cendant Corp. ....................... 1,951 *+40 Resources Connection, Inc. .......... 1,053 -------- 5,664 -------- COMMUNICATIONS -- 5.5% *27 Comverse Technology, Inc. ........... 593 *238 Corvis Corp. ........................ 770 *68 Network Appliance, Inc. ............. 1,489 44 Nokia Corp., ADR .................... 1,087 *33 QUALCOMM, Inc. ...................... 1,682 -------- 5,621 -------- COMPUTERS & OFFICE EQUIPMENT -- 24.3% *347 Cisco Systems, Inc. ................. 6,282 285 Compaq Computer Corp. ............... 2,785 *107 Dell Computer Corp. ................. 2,895 23 International Business Machines Corp. .............................. 2,722 *67 Lexmark International, Inc. ......... 3,971 *649 Maxtor Corp. ........................ 4,114 *290 Palm, Inc. .......................... 1,123 *92 Solectron Corp. ..................... 1,039 -------- 24,931 -------- CONSUMER DURABLES -- 0.5% *98 Sycamore Networks, Inc. ............. 525 -------- ELECTRICAL EQUIPMENT -- 2.5% *82 Credence Systems Corp. .............. 1,519 *34 Teradyne, Inc. ...................... 1,010 -------- 2,529 -------- ELECTRONICS -- 14.0% *41 Conexant Systems, Inc. .............. 582 *75 Fairchild Semiconductor International Corp., Class A ..................... 2,121 *49 Flextronics International Ltd. ...... 1,178 *163 OmniVision Technologies, Inc. ....... 1,459 *65 Sanmina -- SCI Corp. ................ 1,295 *86 Silicon Storage Technology, Inc. .... 832 *+238 SpeedFam-IPEC, Inc. ................. 709 +74 STMicroelectronics N.V., NY Shares ............................. 2,331 *147 Vitesse Semiconductor Corp. ......... 1,832 *52 Xilinx, Inc. ........................ 2,046 -------- 14,385 -------- MACHINERY -- 1.3% *84 Ultratech Stepper, Inc. ............. 1,379 -------- RETAIL -- 1.8% 73 Circuit City Stores Group ........... 1,881 --------
MARKET SHARES VALUE - --------- -------- SOFTWARE & SERVICES -- 37.5% *70 Agile Software Corp. ................ $ 1,199 *65 AOL Time Warner, Inc. ............... 2,093 *37 BISYS Group, Inc. (The) ............. 2,348 *20 CSG Systems International, Inc. ..... 795 *131 Enterasys Networks, Inc. ............ 1,159 61 First Data Corp. .................... 4,766 *+51 HPL Technologies, Inc. .............. 917 *104 i2 Technologies, Inc. ............... 818 *43 Macromedia, Inc. .................... 769 *143 Microsoft Corp. ..................... 9,477 *216 Oracle Corp. ........................ 2,986 *56 Peregrine Systems, Inc. ............. 829 141 Rational Software Corp. ............. 2,755 *291 Sun Microsystems, Inc. .............. 3,596 *+86 VeriSign, Inc. ...................... 3,264 *153 Vignette Corp. ...................... 823 -------- 38,594 -------- TRANSPORTATION -- 6.5% *111 Sabre Holdings Corp. ................ 4,697 *+70 Travelocity.com, Inc. ............... 2,007 -------- 6,704 -------- Total common stocks.................. $102,213 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 2.9% REPURCHASE AGREEMENT -- 2.9% $2,932 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................. $ 2,932 -------- Total short-term securities.......... $ 2,932 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $99,739)...... 99.4% $102,213 Total short-term securities (cost $2,932)............................... 2.9 2,932 ----- -------- Total investment in securities (total cost $102,671)................. 102.3 105,145 Cash, receivables and other assets...... 0.2 208 Securities lending collateral (See Note 2(i))................................. 7.3 7,534 Payable for securities purchased........ (1.5) (1,522) Payable for Fund shares redeemed........ (1.0) (1,044) Securities lending collateral payable to brokers (See Note 2(i))............... (7.3) (7,534) Other liabilities....................... (0.0) (1) ----- -------- Net assets.............................. 100.0% $102,786 ===== ========
The accompanying notes are an integral part of this financial statement. 28 - --------------------------------------------------------------------------------
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 209,128 shares outstanding.................................. $ 209 Capital surplus................................ 167,595 Accumulated net realized loss on investments... (67,492) Unrealized appreciation of investments......... 2,474 -------- Net assets..................................... $102,786 ========
Class IA Net asset value per share ($86,074 / 175,041 shares outstanding)(600,000 shares authorized)..................................... $0.49 ===== Class IB Net asset value per share ($16,712 / 34,087 shares outstanding)(200,000 shares authorized)......... $0.49 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 29 - -------------------------------------------------------------------------------- HARTFORD FOCUS HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS 92.5% BANKS -- 5.6% 30 American Express Co. ................ $ 1,071 25 Citigroup, Inc. ..................... 1,262 ------- 2,333 ------- BUSINESS SERVICES -- 2.6% *40 Accenture Ltd. ...................... 1,077 ------- COMMUNICATIONS -- 3.1% 90 Qwest Communications International, Inc. ............................... 1,272 ------- COMPUTERS & OFFICE EQUIPMENT -- 3.3% 141 Compaq Computer Corp. ............... 1,372 ------- CONSUMER NON-DURABLES -- 11.9% 39 Estee Lauder Cos., Inc. (The), Class A................................... 1,250 30 Gillette Co. (The)................... 1,002 *30 Safeway, Inc. ....................... 1,253 25 Tyco International Ltd. ............. 1,472 ------- 4,977 ------- DRUGS -- 5.7% *21 Amgen, Inc........................... 1,208 33 Schering-Plough Corp................. 1,182 ------- 2,390 ------- ELECTRONICS -- 2.2% *30 Micron Technology, Inc............... 930 ------- ENERGY & SERVICES -- 7.9% 16 Anadarko Petroleum Corp.............. 910 33 ExxonMobil Corp...................... 1,297 20 Schlumberger Ltd..................... 1,099 ------- 3,306 ------- FINANCIAL SERVICES -- 8.8% 33 Franklin Resources, Inc.............. 1,164 13 Goldman Sachs Group, Inc. (The)...... 1,206 25 Merrill Lynch & Co., Inc............. 1,303 ------- 3,673 ------- HEALTH SERVICES -- 2.8% 30 HCA, Inc............................. 1,156 ------- MEDIA & ENTERTAINMENT -- 6.0% *40 Adelphia Communications Corp., Class A................................... 1,247 *90 Liberty Media Corp., Class A......... 1,260 ------- 2,507 ------- METALS, MINERALS & MINING -- 5.0% 32 Alcoa, Inc. ......................... 1,141 20 Vulcan Materials Co. ................ 959 ------- 2,100 ------- RETAIL -- 8.4% 40 CVS Corp. ........................... 1,184 24 Home Depot, Inc. (The)............... 1,224 19 Wal-Mart Stores, Inc. ............... 1,093 ------- 3,501 ------- RUBBER & PLASTICS PRODUCTS -- 2.7% 20 NIKE, Inc., Class B.................. 1,125 -------
MARKET SHARES VALUE - --------- ------- SOFTWARE & SERVICES -- 10.9% 29 Adobe Systems, Inc. ................. $ 900 *45 AOL Time Warner, Inc. ............... 1,445 *21 Intuit, Inc. ........................ 898 *20 Microsoft Corp. ..................... 1,325 ------- 4,568 ------- TRANSPORTATION -- 2.4% 26 Boeing Co. (The)..................... 1,008 ------- UTILITIES -- 3.2% 30 El Paso Corp......................... 1,338 ------- Total common stocks.................. $38,633 =======
PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 8.9% REPURCHASE AGREEMENT -- 8.9% $ 3,737 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02 $ 3,737 ------- Total short-term securities.......... $ 3,737 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $37,162)....... 92.5% $38,633 Total short-term securities (cost $3,737)................................ 8.9 3,737 ----- ------- Total investment in securities (total cost $40,899).......................... 101.4 42,370 Cash, receivables and other assets....... 2.4 988 Payable for securities purchased......... (3.8) (1,574) Dividends payable........................ (0.0) (5) Other liabilities........................ (0.0) (8) ----- ------- Net assets............................... 100.0% $41,771 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 40,260 shares outstanding................................... $ 40 Capital surplus................................. 39,720 Accumulated undistributed net realized gain on investments................................... 540 Unrealized appreciation of investments.......... 1,471 ------- Net assets...................................... $41,771 =======
Class IA Net asset value per share ($32,968 / 31,772 shares outstanding) (600,000 shares authorized)................................... $1.04 ===== Class IB Net asset value per share ($8,803 / 8,488 shares outstanding) (200,000 shares authorized)...... $1.04 =====
* Non-income producing during the period. The accompanying notes are an integral part of this financial statement. 30 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------ COMMON STOCKS -- 92.0% AUSTRALIA -- 2.2% 11 Australian Gas Light Co. (Utilities)... $ 51 *19 Australian Pipeline Trust (Metals, Minerals & Mining).................... 25 49 Goodman Fielder Ltd. (Food, Beverage & Tobacco).............................. 35 ------ 111 ------ DENMARK -- 1.9% 3 Radiometer A/S (Medical Instruments & Supplies)............................. 96 ------ FINLAND -- 1.9% ***3 Hartwall Oyj ABP (Food, Beverage & Tobacco).............................. 59 *10 Okmetic Oyj (Electronics).............. 41 ------ 100 ------ FRANCE -- 11.5% 2 Cegedim S.A. (Business Services)....... 105 1 Cegid (Business Services).............. 62 *1 Devoteam S.A. (Business Services)...... 20 *6 Generale De Sante (Medical Instruments & Supplies)........................... 78 1 Groupe Legris Industries S.A (Machinery)........................... 21 2 Rallye S.A. (Retail)................... 76 12 Risc Technology (Communications)....... 86 1 Societe Virbac S.A. (Medical Instruments & Supplies)............... 104 *1 Wavecom S.A. (Communications).......... 38 ------ 590 ------ GERMANY -- 9.4% 3 AWD Holding AG (Financial Services).... 78 *40 Ceyoniq AG (Software & Services)....... 202 *3 Evotec Biosystems AG (Research & Testing Facilities)................... 26 *18 MWG-Biotech AG (Medical Instruments & Supplies)............................. 31 *12 PSI AG (Software & Services)........... 102 *3 UMS United Medical Systems International AG (Health Services).... 45 ------ 484 ------ HONG KONG -- 6.5% *@48 Clear Media Ltd. (Business Services)... 35 204 Sa Sa International Holdings Ltd (Retail).............................. 15 134 Techtronic Industries Co. (Electrical Equipment)............................ 54 *310 TPV Technology Ltd. (Computers & Office Equipment)............................ 97 *88 VTech Holdings Ltd. (Electronics)...... 61 39 Yue Yuen Industrial Holdings Ltd. (Retail).............................. 73 ------ 335 ------ ITALY -- 0.9% 16 Esaote S.p.A. (Medical Instruments & Supplies)............................. 47 ------
MARKET SHARES VALUE - --------- ------ JAPAN -- 27.7% 1 Asahi Broadcasting Corp (Communications)...................... $ 41 6 Asia Securities Printing Co., Ltd. (Business Services)................... 40 2 Fukuda Denshi Co., Ltd. (Medical Instruments and Supplies)............. 45 7 Getz Brothers & Co., Inc. (Medical Instruments & Supplies)............... 26 16 Heiwa Real Estate Co. (Real Estate).... 29 4 Hutech Norin Co., Ltd. (Transportation)...................... 53 20 Iwasaki Electric Co., Ltd. (Retail).... 41 17 Kamigumi Co., Ltd. (Transportation).... 70 7 Kikkoman Corp. (Food, Beverage & Tobacco).............................. 38 6 Kirin Beverage Corp. (Food, Beverage & Tobacco).............................. 98 15 Kyodo Printing Co., Ltd. (Business Services)............................. 49 37 Mitsui-Soko Co., Ltd. (Transportation)...................... 73 14 N.I.C. Corp. (Business Services)....... 158 4 Nagaileben Co., Ltd. (Banks)........... 106 10 Nippon Shinyaku Co., Ltd. (Drugs)...... 49 28 Nissin Corp. (Transportation).......... 43 3 Shinko Electric Industries Co., Ltd. (Electronics)......................... 63 25 Shinko Securities Co., Ltd. (Financial Services)............................. 35 *@@0 Sky Perfect (Communications)........... 76 6 Sumida Corp. (Electrical).............. 81 *7 Towa Corp. (Metals, Minerals & Mining)............................... 50 7 Towa Pharmaceutical Co., Ltd. (Drugs)............................... 84 2 USS Co., Ltd. (Retail)................. 74 ------ 1,422 ------ LUXEMBOURG -- 0.9% *2 Thiel Logistik AG (Computers & Office Equipment)............................ 47 ------ NETHERLANDS -- 6.2% 3 IHC Caland N.V. (Energy & Services).... 122 *12 SNT Group N.V. (Business Services)..... 90 5 Volker Wessels Stevin N.V. (Construction)........................ 108 ------ 320 ------ NEW ZEALAND -- 1.2% 31 Tower Ltd. (Financial Services)........ 63 ------ SPAIN -- 1.1% 4 Compania De Distribucion Integral Logista S.A. (Consumer Services)...... 57 ------ SWEDEN -- 1.7% 8 Esselte AB, B Share (Computers & Office Equipment)............................ 36 3 Esselte AB, A Share (Computers & Office Equipment)............................ 11 6 Gambro AB, B Shares (Medical Instruments & Supplies)............... 39 ------ 86 ------ UNITED KINGDOM -- 18.9% 52 Abbot Group PLC (Energy & Services).... 92 66 Ashtead Group PLC (Financial Services)............................. 75 31 DS Smith PLC (Forest & Paper Products)............................. 71
The accompanying notes are an integral part of this financial statement. 31 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------ COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 111 Express Dairies PLC (Food, Beverage & Tobacco).............................. $ 22 33 Informa Group PLC (Media & Entertainment)........................ 129 32 Laird Group PLC (Electronics).......... 73 *347 Premier Oil PLC (Energy & Services).... 84 14 RM PLC (Software & Services)........... 48 64 Securicor PLC (Consumer Services)...... 109 39 Shanks Group PLC (Energy & Services)... 95 30 UMECO PLC (Aerospace & Defense)........ 96 51 Whatman PLC (Software & Services)...... 79 ------ 973 ------ Total common stocks.................... $4,731 ====== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 6.0% REPURCHASE AGREEMENT -- 6.0% $306 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................... $ 306 ------ Total short-term securities............ $ 306 ======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $4,889)........ 92.0% $4,731 Total short-term securities (cost $306).................................. 6.0 306 ----- ------ Total investment in securities (total cost $5,195)........................... 98.0 5,037 Cash, receivables and other assets....... 3.0 154 Payable for securities purchased......... (0.9) (46) Dividends payable........................ (0.1) (4) ----- ------ Net assets............................... 100.0% $5,141 ===== ======
* Non-income producing during the period. ** Securities contain some restriction as to public resale. At December 31, 2001, the market value of these securities amounted to $59 or 1.2% of net assets. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $35 or 0.7% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero.
MARKET VALUE ------ SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 5,479 shares outstanding.................................... $ 5 Capital surplus.................................. 5,361 Distribution in excess of net investment income......................................... (1) Accumulated net realized loss on investments..... (66) Unrealized depreciation of investments........... (158) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@.......... -- ------ Net assets....................................... $5,141 ====== Class IA Net asset value per share ($4,373 / 4,660 shares outstanding) (600,000 shares authorized).................................. $ 0.94 ====== Class IB Net asset value per share ($768 / 819 shares outstanding) (200,000 shares authorized)..... $ 0.94 ======
DIVERSIFICATION BY INDUSTRY: Aerospace & Defense...................... 1.9% $ 96 Banks.................................... 2.1 106 Business Services........................ 12.5 645 Communications........................... 3.0 155 Computers & Office Equipment............. 3.7 191 Construction............................. 2.1 108 Consumer Services........................ 3.2 166 Drugs.................................... 2.6 133 Electrical Equipment..................... 2.6 135 Electronics.............................. 4.6 238 Energy & Services........................ 7.6 393 Financial Services....................... 4.9 251 Food, Beverage & Tobacco................. 4.9 252 Forest & Paper Products.................. 1.4 71 Health Services.......................... 0.9 45 Machinery................................ 0.4 21 Media & Entertainment.................... 2.5 129 Medical Instruments & Supplies........... 9.1 466 Metals, Minerals & Mining................ 1.5 75 Real Estate.............................. 0.6 29 Research & Testing Facilities............ 0.5 26 Retail................................... 5.4 279 Software & Services...................... 8.4 431 Transportation........................... 4.6 239 Utilities................................ 1.0 51 ----- ------ Total common stocks.................... 92.0% $4,731 ===== ======
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- - ----------- British Pound (Buy) $20 $20 01/03/02 $ -- EURO (Buy) 6 6 01/02/02 -- EURO (Buy) 6 6 01/03/02 -- EURO (Buy) 14 14 01/04/02 -- Japanese Yen (Sell) 5 5 01/08/02 -- ------- $ -- =======
The accompanying notes are an integral part of this financial statement. 32 - -------------------------------------------------------------------------------- HARTFORD SMALL COMPANY HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 97.5% BANKS -- 0.9% 334 People's Bank........................ $ 7,090 -------- BUSINESS SERVICES 4.9% *627 Getty Images, Inc. .................. 14,417 *+184 Iron Mountain, Inc. ................. 8,072 *211 Mobile Mini, Inc. ................... 8,247 *+1,019 Scientific Games Corp., Class A...... 8,919 -------- 39,655 -------- CHEMICALS -- 2.0% *557 Airgas, Inc. ........................ 8,415 476 Wellman, Inc. ....................... 7,378 -------- 15,793 -------- COMMUNICATIONS -- 1.6% *+236 Plantronics, Inc. ................... 6,038 *+296 Titan Corp. (The).................... 7,380 -------- 13,418 -------- COMPUTERS & OFFICE EQUIPMENT -- 0.4% *178 Planar Systems, Inc. ................ 3,749 -------- CONSTRUCTION -- 1.4% 475 Granite Construction, Inc. .......... 11,430 -------- CONSUMER DURABLES -- 4.4% *267 Arrow Electronics, Inc. ............. 7,979 *308 Furniture Brands International, Inc. ............................... 9,871 262 Hughes Supply, Inc. ................. 8,090 198 Martin Marietta Materials, Inc. ..... 9,223 -------- 35,163 -------- CONSUMER NON-DURABLES -- 0.5% *117 United Stationers, Inc. ............. 3,930 -------- DRUGS -- 3.1% *260 ArQule, Inc. ........................ 4,415 *+283 ImmunoGen, Inc. ..................... 4,694 *+127 NPS Pharmaceuticals, Inc. ........... 4,873 *309 Serologicals Corp. .................. 6,650 *175 Vertex Pharmaceuticals, Inc. ........ 4,303 -------- 24,935 -------- ELECTRONICS -- 7.5% *729 Adaptec, Inc. ....................... 10,573 *+818 ASE Test Ltd. ....................... 11,393 456 ATI Technologies, Inc. .............. 5,786 *+393 Emcore Corp. ........................ 5,282 *302 Fairchild Semiconductor International Corp., Class A...................... 8,503 *110 Helen of Troy Ltd. .................. 1,366 *+122 Oak Technology, Inc. ................ 1,674 *652 Pericom Semiconductor Corp. ......... 9,456 *+181 Zoran Corp. ......................... 5,917 -------- 59,950 -------- ENERGY & SERVICES -- 1.5% 865 Chesapeake Energy Corp. ............. 5,715 243 Patina Oil & Gas Corp. .............. 6,680 -------- 12,395 --------
MARKET SHARES VALUE - --------- -------- EXCHANGE TRADED FUNDS -- 1.5% 206 iShares Russell 2000 Growth Index Fund................................ $ 11,854 -------- FINANCIAL SERVICES -- 4.9% 332 Federated Investors, Inc., Class B... 10,571 *207 Investment Technology Group, Inc. ... 8,074 238 Legg Mason, Inc. .................... 11,916 315 Van Der Moolen Holding N.V. ......... 9,057 -------- 39,618 -------- FOOD, BEVERAGE & TOBACCO -- 1.6% 229 Bunge Ltd. .......................... 5,322 1,433 Swedish Match AB..................... 7,581 -------- 12,903 -------- FOREST & PAPER PRODUCTS -- 3.5% 177 Boise Cascade Corp. ................. 6,011 257 Bowater, Inc. ....................... 12,268 *562 Pactiv Corp. ........................ 9,967 -------- 28,246 -------- HEALTH SERVICES -- 3.9% *189 AmSurg Corp. ........................ 5,129 *270 Edwards Lifesciences Corp. .......... 7,453 *243 Option Care, Inc. ................... 4,741 *474 Triad Hospitals, Inc. ............... 13,899 -------- 31,222 -------- HOTELS & GAMING -- 1.5% 269 Fairmont Hotels & Resorts, Inc. ..... 6,431 *+159 Multimedia Games, Inc. .............. 6,030 -------- 12,461 -------- INSURANCE -- 3.9% 341 Galligher (Arthur J.) & Co. ......... 11,771 *709 HealthExtras, Inc. .................. 4,047 *76 Trigon Healthcare, Inc. ............. 5,248 *432 Willis Group Holdings Ltd. .......... 10,175 -------- 31,241 -------- MACHINERY -- 1.7% *316 Ultratech Stepper, Inc. ............. 5,219 *114 Varian Medical Systems, Inc. ........ 8,116 -------- 13,335 -------- MEDIA & ENTERTAINMENT -- 6.7% *330 Argosy Gaming Co. ................... 10,748 *599 Cablevision Systems Corp. -- Rainbow Media Group......................... 14,796 *+469 Cox Radio, Inc., Class A............. 11,953 *952 Entravision Communications Corp. .... 11,375 +504 Pegasus Communications Corp., Class A................................... 5,242 -------- 54,114 -------- MEDICAL INSTRUMENTS & SUPPLIES --5.5% *442 Armor Holdings, Inc. ................ 11,934 184 Beckman Coulter, Inc. ............... 8,156 256 DENTSPLY International, Inc. ........ 12,869 *+298 Lumenis Ltd. ........................ 5,869 *+471 OraSure Technologies, Inc. .......... 5,719 -------- 44,547 --------
The accompanying notes are an integral part of this financial statement. 33 - -------------------------------------------------------------------------------- HARTFORD SMALL COMPANY HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- (CONTINUED) METALS, MINERALS & MINING -- 3.1% 752 AK Steel Holding Corp. .............. $ 8,562 *107 Alliant Techsystems, Inc. ........... 8,274 114 Ball Corp. .......................... 8,083 -------- 24,919 -------- REAL ESTATE -- 0.2% 111 Annaly Mortgage Management, Inc. (REIT).............................. 1,770 -------- RESEARCH & TESTING FACILITIES -- 0.5% *138 Applera Corp. -- Celera Genomics Group............................... 3,691 -------- RETAIL -- 12.0% *518 AFC Enterprises, Inc. ............... 14,695 *682 Barnes & Noble, Inc. ................ 20,193 424 CBRL Group, Inc. .................... 12,478 *104 Cheesecake Factory, Inc. (The)....... 3,603 *+137 Electronics Boutique Holdings Corp. .............................. 5,454 3,632 Electronics Boutique PLC............. 7,242 *+298 Hollywood Entertainment Corp. ....... 4,265 *216 O'Reilly Automotive, Inc. ........... 7,865 496 PETsMART, Inc. ...................... 4,878 *207 Too, Inc. ........................... 5,679 *259 ValueVision International, Inc. ..... 5,082 *+120 Whole Foods Market, Inc. ............ 5,226 -------- 96,660 -------- SOFTWARE & SERVICES -- 11.1% *+1,733 Acclaim Entertainment, Inc. ......... 9,186 *##1,962 Acclaim Entertainment, Inc., PIPE ... 10,399 *349 DigitalThink, Inc. .................. 3,771 *816 Enterasys Networks, Inc. ............ 7,217 *40 GTECH Holdings Corp. ................ 1,805 *611 Hyperion Solutions Corp. ............ 12,126 *550 Openwave Systems, Inc. .............. 5,380 *+252 Optimal Robotics Corp. .............. 8,925 *227 SERENA Software, Inc. ............... 4,929 *+416 SmartForce Public Ltd., Co., ADR 10,301 *+279 Stellent, Inc. ...................... 8,242 *+415 Take-Two Interactive Software, Inc. ............................... 6,704 -------- 88,985 -------- TRANSPORTATION -- 6.6% *320 Arkansas Best Corp. ................. 9,215 244 CNF Transportation, Inc. ............ 8,186 *201 Navistar International Corp. ........ 7,951 *296 Ryanair Holdings PLC, ADR............ 9,487 286 SkyWest, Inc. ....................... 7,290 *207 Swift Transportation Co., Inc. ...... 4,461 256 Werner Enterprises, Inc. ............ 6,209 -------- 52,799 -------- UTILITIES -- 1.1% *+291 Waste Connections, Inc. ............. 9,027 -------- Total common stocks.................. $784,900 ========
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- SHORT-TERM SECURITIES -- 5.2% REPURCHASE AGREEMENT -- 5.2% $41,515 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02........... $ 41,515 -------- Total short-term securities.......... $ 41,515 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $710,720)..... 97.5% $784,900 Total short-term securities (cost $41,515).............................. 5.2 41,515 ----- -------- Total investment in securities (total cost $752,235)........................ 102.7 826,415 Cash, receivables and other assets...... 0.7 5,624 Securities lending collateral (See Note 2(i))................................. 10.9 88,014 Payable for securities purchased........ (3.3) (26,197) Payable for Fund shares redeemed........ (0.1) (1,169) Securities lending collateral payable to brokers (See Note 2(i))............... (10.9) (88,014) Other liabilities....................... (0.0) (49) ----- -------- Net assets.............................. 100.0% $804,624 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 1,500,000 shares authorized; 604,247 shares outstanding................................. $ 60,425 Capital surplus............................... 927,872 Accumulated net realized loss on investments................................. (257,853) Unrealized appreciation of investments........ 74,180 --------- Net assets.................................... $ 804,624 =========
Class IA Net asset value per share ($745,253 / 559,474 shares outstanding) (1,125,000 shares authorized).................................... $1.33 ====== Class IB Net asset value per share ($59,371 / 44,773 shares outstanding) (375,000 shares authorized).................................... $1.33 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). ## Illiquid securities (See Note 2(m)). The accompanying notes are an integral part of this financial statement. 34 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- 93.7% CANADA -- 1.0% 3 Canadian National Railway Co. (Transportation)..................... $ 145 ------- FINLAND -- 2.4% 14 Nokia Oyj (Communications)............ 356 ------- FRANCE -- 12.9% 3 Altran Technologies S.A. (Business Services)............................ 127 11 AXA (Financial Services).............. 224 3 Banque Nationale de Paris (BNP) (Banks).............................. 286 @@0 Bouygues Offshore S.A. (Energy & Services)............................ 1 4 Club Mediterranee S.A. (Consumer Services)............................ 128 4 Essilor International S.A. (Medical Instruments and Supplies)............ 127 2 Pinault-Printemps-Redoute S.A (Retail)............................. 283 3 TotalFinaElf S.A., B Shares (Energy & Services)............................ 400 16 Usinor Sacilor (Metals, Minerals & Mining).............................. 196 3 Vivendi S.A. (Media & Entertainment)....................... 175 ------- 1,947 ------- GERMANY -- 9.1% 3 Adidas AG (Apparel & Textile)......... 216 9 Bayerische Vereinsbank AG (Banks)..... 265 4 Deutsche Bank AG (Banks).............. 282 14 Deutsche Telekom AG (Communications).. 233 1 Porsche AG (Transportation)........... 229 3 Schering AG (Drugs)................... 150 ------- 1,375 ------- HONG KONG -- 1.2% 366 Legend Holdings Ltd. (Computers & Office Equipment).................... 187 ------- IRELAND -- 2.1% *10 Ryanair Holdings PLC, ADR (Transportation)..................... 317 ------- ISRAEL -- 1.1% *4 Check Point Software Technologies Ltd. (Software & Services)................ 164 ------- ITALY -- 2.0% 237 Olivetti S.p.A. (Communications)...... 304 ------- JAPAN -- 7.5% 2 FANUC Ltd. (Electronics).............. 94 6 Fujisawa Pharmaceutical Co., Ltd (Drugs).............................. 138 2 Nintendo Co., Ltd. (Consumer Non- Durables)............................ 315 35 Nissan Motor Co., Ltd. (Transportation)..................... 186
MARKET SHARES VALUE - --------- ------- JAPAN -- (CONTINUED) *@@0 Sky Perfect (Communications).......... $ 62 7 Sony Corp. (Electronics).............. 338 ------- 1,133 ------- NETHERLANDS -- 5.8% 3 Boskalis Westminster (Construction)... 86 *@6 Koninklijke (Royal) KPN N.V (Communications)..................... 31 35 Koninklijke (Royal) KPN N.V (Communications)..................... 179 *17 KPNQwest N.V. (Software & Services)... 120 8 Schlumberger Ltd. (Energy & Services)............................ 451 ------- 867 ------- NORWAY -- 2.4% *16 Tandberg ASA (Communications)......... 367 ------- RUSSIA -- 2.2% 10 Surgutneftegaz, ADR (Energy & Services)............................ 160 2 YUKOS, ADR (Energy & Services)........ 172 ------- 332 ------- SOUTH KOREA -- 5.6% 12 Hyundai Motor Co., Ltd (Transportation)..................... 251 @3 Samsung Electronics, GDR (Electronics)........................ 393 9 SK Telecom Co., Ltd (Communications).. 195 ------- 839 ------- SPAIN -- 2.6% 18 Amadeus Global Travel Distribution S.A. (Consumer Services)............. 102 *6 Sogecable S.A. (Media & Entertainment)....................... 137 *11 Telefonica S.A. (Communications)...... 151 ------- 390 ------- SWEDEN -- 3.6% 11 Swedish Match AB (Consumer Non-Durables)........................ 57 88 Telefonaktiebolaget LM Ericcson, B Shares (Communications).............. 478 ------- 535 ------- SWITZERLAND -- 3.7% 4 Credit Suisse Group (Banks)........... 170 1 Nestle S.A. (Food, Beverage & Tobacco)............................. 200 9 Serono S.A., ADR (Drugs).............. 193 ------- 563 ------- UNITED KINGDOM -- 27.4% 7 AstraZeneca PLC (Drugs)............... 325 13 BP PLC (Energy & Services)............ 102 42 British Airways PLC (Transportation)..................... 121 72 Cable & Wireless PLC (Communications)..................... 343 39 Capita Group PLC (Business Services)............................ 271 43 Chubb PLC (Communications)............ 108 105 Marks & Spencer PLC (Retail).......... 555 *164 mm02 PLC (Communications)............. 206
The accompanying notes are an integral part of this financial statement. 35 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 67 P&O Princess Cruises PLC (Transportation)..................... $ 391 113 Rentokil Initial PLC (Business Services)............................ 450 14 Royal Bank of Scotland Group PLC (Banks).............................. 348 47 Smith & Nephew PLC (Medical Instruments & Supplies).............. 283 235 Vodafone Group PLC (Communications) 613 ------- 4,116 ------- UNITED STATES OF AMERICA -- 1.1% 2 Gucci Group N.V., NY Shares (Apparel & Textile)............................. 161 ------- Total common stocks................... $14,098 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 6.6% REPURCHASE AGREEMENT -- 6.6% $1,000 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.................. $ 1,000 ------- Total short-term securities........... $ 1,000 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $13,250)....... 93.7% $14,098 Total short-term securities (cost $1,000)................................ 6.6 1,000 ----- ------- Total investment in securities (total cost $14,250).......................... 100.3 15,098 Cash, receivables and other assets....... 4.0 597 Payable for securities purchased......... (4.2) (629) Payable for Fund shares redeemed......... (0.1) (19) Dividends payable........................ (0.0) (3) ----- ------- Net assets............................... 100.0% $15,044 ===== =======
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $424 or 2.8% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero.
MARKET VALUE ------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 17,512 shares outstanding................................... $ 18 Capital surplus................................. 15,124 Accumulated undistributed net investment income........................................ 10 Accumulated net realized loss on investments.... (951) Unrealized appreciation of investments.......... 848 Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@......... (1) Unrealized depreciation of other assets and liabilities in foreign currencies............. (4) ------- Net assets...................................... $15,044 =======
Class IA Net asset value per share ($9,969 / 11,601 shares outstanding) (600,000 shares authorized)........ $ 0.86 ====== Class IB Net asset value per share ($5,075 / 5,911 shares outstanding) (200,000 shares authorized)........ $ 0.86 ======
DIVERSIFICATION BY INDUSTRY: Apparel & Textile......................... 2.5% $ 377 Banks..................................... 9.0 1,351 Business Services......................... 5.6 848 Communications............................ 23.3 3,518 Computers & Office Equipment.............. 1.2 187 Construction.............................. 0.6 86 Consumer Non-Durables..................... 2.1 315 Consumer Services......................... 0.7 102 Drugs..................................... 5.4 806 Electronics............................... 6.2 933 Energy & Services......................... 8.5 1,286 Financial Services........................ 1.5 224 Food, Beverage & Tobacco.................. 1.7 257 Hotels & Gaming........................... 0.9 128 Media & Entertainment..................... 2.1 312 Medical Instruments & Supplies............ 2.7 410 Metals, Minerals & Mining................. 1.3 196 Retail.................................... 5.6 838 Software & Services....................... 1.9 284 Transportation............................ 10.9 1,640 ---- ------- Total common stocks.............. 93.7% $14,098 ==== =======
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- ----------- British Pound (Buy) $153 $153 01/02/02 $ -- British Pound (Buy) 7 7 01/03/02 -- British Pound (Buy) 13 13 01/04/02 -- EURO (Buy) 147 146 01/03/02 1 EURO (Buy) 1 1 01/04/02 -- EURO (Sell) 235 232 01/02/02 (3) Hong Kong Dollar (Buy) 6 6 01/03/02 -- Japanese Yen (Buy) 29 29 01/08/02 -- Japanese Yen (Sell) 124 125 01/04/02 1 Norwegian Krone (Buy) 12 12 01/04/02 -- Swedish Krona (Buy) 17 17 01/03/02 -- Swiss Franc (Buy) 12 12 01/04/02 -- ------- $ (1) =======
The accompanying notes are an integral part of this financial statement. 36 - -------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 93.7% AEROSPACE & DEFENSE -- 1.6% 4,400 Raytheon Co. ...................... $ 142,868 ---------- BANKS -- 4.4% 1,180 Bank of America Corp. ............. 74,281 2,760 Citigroup, Inc. ................... 139,325 1,200 Golden West Financial Corp. ....... 70,620 3,500 Washington Mutual, Inc. ........... 114,450 ---------- 398,676 ---------- BUSINESS SERVICES -- 2.2% *3,000 KPMG Consulting, Inc. ............. 49,710 +3,000 Manpower, Inc. .................... 101,130 *+2,100 United Rentals (North America), Inc. ............................. 47,670 ---------- 198,510 ---------- COMMUNICATIONS -- 6.1% 8,136 AT&T Corp. ........................ 147,593 863 Cable & Wireless PLC............... 4,141 627 Harris Corp. ...................... 19,124 *@3,598 Koninklijke (Royal) KPN N.V. ...... 18,292 1,500 Motorola, Inc. .................... 22,530 *+6,500 NTL, Inc. ......................... 6,110 8,000 Qwest Communications International, Inc. ............................. 113,040 *4,000 Sonus Networks, Inc. .............. 18,480 *15,000 WorldCom, Inc. -- WorldCom Group 211,200 ---------- 560,510 ---------- COMPUTERS & OFFICE EQUIPMENT -- 4.6% *3,600 Cisco Systems, Inc. ............... 65,196 5,000 Compaq Computer Corp. ............. 48,800 1,900 Minnesota Mining & Manufacturing Co. .............................. 224,599 *4,700 Solectron Corp. ................... 53,016 +1,517 Symbol Technologies, Inc. ......... 24,093 ---------- 415,704 ---------- CONSTRUCTION -- 0.9% 6,302 Halliburton Co. ................... 82,552 ---------- CONSUMER NON-DURABLES -- 4.0% 3,482 McKesson Corp. .................... 130,212 *1,277 Safeway, Inc. ..................... 53,331 3,000 Tyco International Ltd. ........... 176,700 ---------- 360,243 ---------- DRUGS -- 3.9% @440 Fujisawa Pharmaceutical Co., Ltd. ............................. 10,139 4,500 Pharmacia Corp. ................... 191,925 1,480 Teva Pharmaceutical Industries Ltd., ADR......................... 91,200 *2,124 Watson Pharmaceuticals, Inc. ...... 66,675 ---------- 359,939 ----------
MARKET SHARES VALUE - --------- ---------- ELECTRICAL EQUIPMENT -- 1.1% *+833 Ionics, Inc. ...................... $ 25,006 *3,000 Thermo Electron Corp. ............. 71,580 ---------- 96,586 ---------- ELECTRONICS -- 6.4% *11,500 Agere Systems, Inc. ............... 65,435 *+1,500 Flextronics International Ltd. .... 35,985 824 Samsung Electronics Co., Ltd. ..... 175,009 *4,000 Sanmina -- SCI Corp. .............. 79,600 2,400 Sony Corp. ........................ 109,690 *45,000 Tawain Semiconductor Manufacturing Co., Ltd. ........................ 112,532 792 Xerox Corp. ....................... 8,254 ---------- 586,505 ---------- ENERGY & SERVICES -- 6.1% *2,901 Canadian Natural Resources Ltd. ... 69,631 943 ChevronTexaco Corp. ............... 84,466 3,420 Petroleo Brasileiro S.A., ADR...... 79,679 #1,879 Petroleo Brasileiro S.A., ADR...... 41,770 *4,100 Rowan Cos., Inc. .................. 79,417 8,000 Sasol Ltd., ADR.................... 70,800 +526 ValeroEnergyCorp. ................. 20,032 +3,076 XTOEnergy, Inc. ................... 53,821 +732 YUKOS, ADR......................... 57,073 ---------- 556,689 ---------- FINANCIAL SERVICES -- 2.0% 6,000 Abbey National PLC................. 85,491 *1,846 Converium Holding AG, ADR.......... 45,033 1,000 Legg Mason, Inc. .................. 49,980 ---------- 180,504 ---------- FOOD, BEVERAGE & TOBACCO -- 3.4% 7,511 Archer-Daniels-Midland Co. ........ 107,787 3,194 Bunge Ltd. ........................ 74,352 2,756 Philip Morris Cos., Inc. .......... 126,367 ---------- 308,506 ---------- FOREST & PAPER PRODUCTS -- 0.6% *3,500 Smurfit-Stone Container Corp. ..... 55,895 ---------- HEALTH SERVICES -- 0.5% *1,900 First Health Group Corp. .......... 47,006 ---------- INSURANCE -- 6.4% 6,489 Ace Ltd. .......................... 260,521 1,228 American International Group, Inc. ............................. 97,480 *+115 Anthem, Inc. ...................... 5,702 1,998 MBIA, Inc. ........................ 107,169 2,558 St. Paul Cos., Inc. (The).......... 112,493 ---------- 583,365 ---------- MACHINERY -- 2.5% 2,546 Deere & Co. ....................... 111,163 1,999 Ingersoll-Rand Co. ................ 83,587 *2,000 Terex Corp. ....................... 35,080 ---------- 229,830 ----------
The accompanying notes are an integral part of this financial statement. 37 - -------------------------------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- 5.1% *936 Adelphia Communications Corp., Class A........................... $ 29,175 *2,000 Clear Channel Communications, Inc. ............................. 101,820 *3,800 Comcast Corp., Class A............. 136,800 *8,500 Liberty Media Corp., Class A....... 119,000 *+2,500 Six Flags, Inc. ................... 38,450 *1,520 USA Networks, Inc. ................ 41,511 ---------- 466,756 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.6% 5,000 Becton, Dickinson & Co. ........... 165,750 *2,517 Boston Scientific Corp. ........... 60,717 *430 Viasys Healthcare, Inc. ........... 8,692 ---------- 235,159 ---------- METALS, MINERALS & MINING -- 3.9% 3,400 Alcoa, Inc. ....................... 120,870 2,250 Engelhard Corp. ................... 62,280 +1,623 LUKoil, ADR........................ 80,334 3,365 Precision Castparts Corp. ......... 95,061 ---------- 358,545 ---------- REAL ESTATE -- 1.5% 1,500 Boston Properties, Inc. (REIT)..... 57,000 *3,100 Security Capital Group, Inc., Class B................................. 78,647 ---------- 135,647 ---------- RESEARCH & TESTING FACILITIES -- 1.0% *549 Applera Corp. -- Celera Genomics Group............................. 14,642 *+700 CV Therapeutics, Inc. ............. 36,414 *+1,400 Regeneron Pharmeceuticals, Inc. ... 39,424 ---------- 90,480 ---------- RETAIL -- 4.1% *+1,897 Cheesecake Factory, Inc. (The)..... 65,966 5,000 Dollar General Corp. .............. 74,500 *9,500 Staples, Inc. ..................... 177,650 1,465 Target Corp. ...................... 60,130 ---------- 378,246 RUBBER & PLASTICS PRODUCTS -- 0.6% 956 NIKE, Inc., Class B................ 53,788 ---------- SOFTWARE & SERVICES -- 6.4% *4,000 AOL Time Warner, Inc. ............. 128,400 *1,506 Avant! Corp. ...................... 30,864 *729 Cognex Corp. ...................... 18,665 *+8,400 i2 Technologies, Inc. ............. 66,360 *1,100 Microsoft Corp. ................... 72,897 *6,500 Oracle Corp. ...................... 89,765 *+4,178 Peregrine Systems, Inc. ........... 61,954 *+2,500 Rational Software Corp. ........... 48,750 *+900 VeriSign, Inc. .................... 34,236 *+6,500 Vignette Corp. .................... 34,905 ---------- 586,796 ----------
MARKET SHARES VALUE - --------- ---------- TRANSPORTATION -- 8.1% *3,700 AMR Corp. ......................... $ 82,029 1,500 CSX Corp. ......................... 52,575 3,747 Delphi Automotive Systems Corp. ... 51,185 +4,760 Northrop Grumman Corp. ............ 479,835 1,000 USFreightways Corp. ............... 31,400 1,881 Werner Enterprises, Inc. .......... 45,711 ---------- 742,735 ---------- UTILITIES -- 3.7% *+6,100 Calpine Corp. ..................... 102,419 4,500 CMS Energy Corp. .................. 108,135 4,000 Waste Management, Inc. ............ 127,640 ---------- 338,194 ---------- Total common stocks................ $8,550,234 ========== CONVERTIBLE PREFERRED STOCKS -- 0.7% COMMUNICATIONS -- 0.7% @55 Lucent Technologies, Inc. ......... $ 62,013 ---------- Total convertible preferred stocks............................ $ 62,013 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 6.4% REPURCHASE AGREEMENT -- 6.4% $582,239 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................ $ 582,239 ---------- Total short-term securities........ $ 582,239 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $8,539,175)......................... 93.7% $8,550,234 Total convertible preferred stocks (cost $55,844)...................... 0.7 62,013 Total short-term securities (cost $582,239)........................... 6.4 582,239 ----- ---------- Total investment in securities (total cost $9,177,258).................... 100.8 9,194,486 Cash, receivables and other assets.... 0.3 35,818 Securities lending collateral (See Note 2(i)).......................... 3.5 321,504 Payable for securities purchased...... (1.1) (100,798) Payable for Fund shares redeemed...... (0.0) (701) Securities lending collateral payable to brokers (See Note 2(i)).......... (3.5) (321,504) Other liabilities..................... (0.0) (964) ----- ---------- Net assets............................ 100.0% $9,127,841 ===== ==========
The accompanying notes are an integral part of this financial statement. 38 - --------------------------------------------------------------------------------
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 4,000,000 shares authorized; 2,296,602 shares outstanding.......................... $ 229,660 Capital surplus............................... 9,181,434 Accumulated undistributed net investment income...................................... 5,832 Accumulated net realized loss on investments................................. (306,272) Unrealized appreciation of investments........ 17,228 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@....... 15 Unrealized depreciation of other assets and liabilities in foreign currencies........... (56) ---------- Net assets.................................... $9,127,841 ==========
Class IA Net asset value per share ($8,734,600 / 2,197,493 shares outstanding) (3,250,000 shares authorized).................................... $3.97 ===== Class IB Net asset value per share ($393,241 / 99,109 shares outstanding) (750,000 shares authorized).................................... $3.97 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $90,444 or 1.0% of net assets. # This ADR issue represents preference shares.
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- - ----------- British Pound (Buy) $ 953 $ 951 01/02/02 $ 2 British Pound (Buy) 3,168 3,155 01/03/02 13 ------ $ 15 ======
The accompanying notes are an integral part of this financial statement. 39 - -------------------------------------------------------------------------------- HARTFORD MIDCAP VALUE HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 96.5% BANKS -- 10.4% 49 Charter One Financial, Inc. ......... $ 1,329 43 Golden State Bancorp, Inc. .......... 1,119 18 Golden West Financial Corp. ......... 1,053 76 Hibernia Corp., Class A.............. 1,345 60 Metris Cos., Inc. ................... 1,553 41 Pacific Century Financial Corp. ..... 1,069 62 UnionBanCal Corp. ................... 2,345 87 Webster Financial Corp. ............. 2,730 -------- 12,543 -------- BUSINESS SERVICES -- 5.2% *107 KPMG Consulting, Inc. ............... 1,773 *42 Rent-A-Center, Inc. ................. 1,417 *93 United Rentals (North America)....... 2,109 *196 UnitedGlobalCom, Inc., Class A....... 982 -------- 6,281 -------- CHEMICALS -- 2.1% 12 Air Products & Chemicals, Inc. ...... 554 45 Cambrex Corp. ....................... 1,971 -------- 2,525 -------- COMMUNICATIONS -- 0.2% *571 McLeodUSA, Inc., Class A............. 211 -------- COMPUTERS & OFFICE EQUIPMENT -- 1.6% 114 Cirrus Logic, Inc. .................. 1,501 *99 Palm, Inc. .......................... 383 -------- 1,884 -------- CONSTRUCTION -- 4.1% 33 Granite Construction, Inc. .......... 792 33 ITT Industries, Inc. ................ 1,641 *56 Toll Brothers, Inc. ................. 2,445 -------- 4,878 -------- CONSUMER DURABLES -- 4.8% *106 Arrow Electronics, Inc. ............. 3,154 28 BorgWarner, Inc. .................... 1,453 32 Lafarge North America, Inc. ......... 1,214 -------- 5,821 -------- CONSUMER NON-DURABLES -- 5.6% 77 Callaway Golf Co. ................... 1,465 *52 Dean Foods Co. ...................... 3,546 *51 United Stationers, Inc. ............. 1,723 -------- 6,734 -------- ELECTRICAL EQUIPMENT -- 1.4% *58 Teradyne, Inc. ...................... 1,739 -------- ELECTRONICS -- 4.1% 57 Harman International Industries, Inc. ............................... 2,548 *121 Vishay Intertechnology, Inc. ........ 2,352 -------- 4,900 --------
MARKET SHARES VALUE - --------- -------- ENERGY & SERVICES -- 6.9% 40 Alberta Energy Co., Ltd. ............ $ 1,529 13 Ashland, Inc. ....................... 604 25 Devon Energy Corp. .................. 947 28 IHC Caland N.V. ..................... 1,302 *55 Noble Drilling Corp. ................ 1,872 51 PanCanadian Energy Corp. ............ 1,327 20 Unocal Corp. ........................ 721 -------- 8,302 -------- FINANCIAL SERVICES -- 1.4% 35 Legg Mason, Inc. .................... 1,724 -------- FOOD, BEVERAGE & TOBACCO -- 4.4% 63 Bunge Ltd. .......................... 1,455 *50 Constellation Brands, Inc. .......... 2,143 84 Sensient Technologies Corp. ......... 1,742 -------- 5,340 -------- FOREST & PAPER PRODUCTS -- 3.1% 194 Abitibi-Consolidated, Inc. .......... 1,420 *50 Packaging Corp. of America........... 906 *77 Pactiv Corp. ........................ 1,374 -------- 3,700 -------- INSURANCE -- 10.2% 77 Ace Ltd. ............................ 3,092 53 Ambac Financial Group, Inc. ......... 3,078 *51 Health Net, Inc. .................... 1,112 *53 Oxford Health Plans, Inc. ........... 1,594 102 Reinsurance Group of America, Inc. ............................... 3,381 -------- 12,257 -------- MACHINERY -- 3.0% *106 Axcelis Technologies, Inc. .......... 1,360 37 Black & Decker Corp. (The)........... 1,411 3 Eaton Corp. ......................... 238 20 Flowserve Corp....................... 540 -------- 3,549 -------- MEDIA & ENTERTAINMENT -- 5.7% *134 Adelphia Communications Corp., Class A................................... 4,181 *77 Bally Total Fitness Holding Corp. ... 1,667 *67 Six Flags, Inc. ..................... 1,034 -------- 6,882 -------- MEDICAL INSTRUMENTS & SUPPLIES --1.2% 29 DENTSPLY International, Inc. ........ 1,441 -------- METALS, MINERALS & MINING -- 2.4% 79 Engelhard Corp. ..................... 2,176 *80 Grupo IMSA S.A., ADR................. 755 -------- 2,931 -------- REAL ESTATE -- 1.8% 33 Liberty Property Trust (REIT)........ 979 49 Reckson Associates Realty Corp. (REIT).............................. 1,149 -------- 2,128 --------
The accompanying notes are an integral part of this financial statement. 40 - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- (CONTINUED) RETAIL -- 3.4% *7 AnnTaylor Stores Corp. .............. $ 231 58 Dollar General Corp. ................ 866 *81 Staples, Inc. ....................... 1,517 38 TJX Cos., Inc. (The)................. 1,527 -------- 4,141 -------- RUBBER & PLASTICS PRODUCTS -- 0.3% 12 Compagnie Generale des Etablissements Michelin, Class B................... 411 -------- SOFTWARE & SERVICES -- 2.9% *83 Parametric Technology Corp. ......... 651 *336 SONICblue, Inc. ..................... 1,359 *93 Sybase, Inc. ........................ 1,463 -------- 3,473 -------- TRANSPORTATION -- 3.9% 46 Canadian National Railway Co. ....... 2,231 *46 Continental Airlines, Inc., Class B................................... 1,193 31 Textron, Inc. ....................... 1,281 -------- 4,705 -------- UTILITIES -- 6.4% 20 CMS Energy Corp. .................... 471 90 FirstEnergy Corp. ................... 3,155 22 FPL Group, Inc. ..................... 1,246 143 Republic Services, Inc. ............. 2,854 -------- 7,726 -------- Total common stocks.................. $116,226 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 4.8% REPURCHASE AGREEMENT -- 4.8% $ 5,817 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.................. $ 5,817 -------- Total short-term securities.......... $ 5,817 ========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $108,324)..... 96.5% $116,226 Total short-term securities (cost $5,817)............................... 4.8 5,817 ----- -------- Total investment in securities (total cost $114,141)........................ 101.3 122,043 Cash, receivables and other assets...... 1.5 1,842 Payable for securities purchased........ (2.8) (3,389) Dividends payable....................... (0.0) (3) ----- -------- Net assets.............................. 100.0% $120,493 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 121,144 shares outstanding.................................. $ 121 Capital surplus................................ 113,115 Distribution in excess of net investment income....................................... (1) Accumulated net investment loss on investments.................................. (645) Unrealized appreciation of investments......... 7,902 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@........ 1 -------- Net assets..................................... $120,493 ========
Class IA Net asset value per share ($95,308 / 95,809 shares outstanding) (600,000 shares authorized)........ $0.99 ===== Class IB Net asset value per share ( $25,185 / 25,335 shares outstanding) (200,000 shares authorized)..................................... $0.99 =====
* Non-income producing during the period. @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- --------- EURO (Buy) $13 $13 01/02/02 $ -- EURO (Buy) 17 16 01/03/02 1 EURO (Buy) 25 25 01/04/02 -- ------- $ 1 =======
The accompanying notes are an integral part of this financial statement. 41 - -------------------------------------------------------------------------------- HARTFORD MIDCAP HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 96.3% BANKS -- 5.4% +342 M&T Bank Corp. .................... $ 24,937 505 Pacific Century Financial Corp. ... 13,082 1,407 Sovereign Bancorp, Inc. ........... 17,223 331 State Street Corp. ................ 17,316 782 UnionBanCal Corp. ................. 29,724 ---------- 102,282 ---------- BUSINESS SERVICES -- 4.9% *+194 Iron Mountain, Inc. ............... 8,491 *677 Lamar Advertising Co., Class A..... 28,681 981 Manpower, Inc. .................... 33,073 *787 Robert Half International, Inc. ... 21,021 ---------- 91,266 ---------- CHEMICALS -- 0.7% 373 Rohm & Haas Co. ................... 12,914 ---------- COMMUNICATIONS -- 1.3% *+2,647 American Tower Corp., Class A...... 25,062 ---------- COMPUTERS & OFFICE EQUIPMENT --0.8% *+252 Synopsys, Inc. .................... 14,909 ---------- CONSUMER DURABLES -- 1.5% 445 Herman Miller, Inc. ............... 10,524 644 Newell Rubbermaid, Inc. ........... 17,763 ---------- 28,287 ---------- CONSUMER NON-DURABLES -- 5.0% 883 Callaway Golf Co. ................. 16,906 2,407 Mattel, Inc. ...................... 41,406 960 McKesson Corp. .................... 35,897 ---------- 94,209 ---------- CONSUMER SERVICES -- 0.7% 266 Cintas Corp. ...................... 12,848 ---------- DRUGS -- 2.8% *284 Gilead Sciences, Inc. ............. 18,671 *666 Vertex Pharmaceuticals, Inc. ...... 16,387 *544 Watson Pharmaceuticals, Inc. ...... 17,060 ---------- 52,118 ---------- ELECTRICAL EQUIPMENT -- 5.4% 968 PerkinElmer, Inc. ................. 33,899 550 Tektronix, Inc. ................... 14,179 *809 Teradyne, Inc. .................... 24,368 *759 Waters Corp. ...................... 29,419 ---------- 101,865 ---------- ELECTRONICS -- 4.0% *332 International Rectifier Corp. ..... 11,573 *+1,046 Lattice Semiconductor Corp. ....... 21,516 *1,484 Sanmina -- SCI Corp. .............. 29,528 *598 Vishay Intertechnology, Inc. ...... 11,667 ---------- 74,284 ---------- ENERGY & SERVICES -- 6.2% *+601 BJ Services Co. ................... 19,499 535 EOG Resources, Inc. ............... 20,912 *340 Nabors Industries, Inc. ........... 11,682
MARKET SHARES VALUE - --------- ---------- ENERGY & SERVICES -- (CONTINUED) *832 Noble Drilling Corp. .............. $ 28,325 *606 Rowan Cos., Inc. .................. 11,746 *834 Varo International, Inc. .......... 12,496 *327 Weatherford International, Inc. ... 12,173 ---------- 116,833 ---------- FINANCIAL SERVICES -- 5.5% 505 Astoria Financial Corp. ........... 13,357 107 Bear Stearns Cos., Inc. (The)...... 6,266 *+569 Investment Technology Group, Inc. ............................. 22,217 +751 Legg Mason, Inc. .................. 37,515 +722 Waddell & Reed Financial, Inc., Class A........................... 23,255 ---------- 102,610 ---------- FOOD, BEVERAGE & TOBACCO -- 2.3% 635 Kellogg Co. ....................... 19,101 1,067 Pepsi Bottling Group, Inc. (The)... 25,084 ---------- 44,185 ---------- FOREST & PAPER PRODUCTS -- 2.6% 2,758 Abitibi-Consolidated, Inc. ........ 20,186 599 Bowater, Inc. ..................... 28,548 ---------- 48,734 ---------- HEALTH SERVICES -- 1.3% *1,372 Health Management Associates, Inc., Class A........................... 25,248 ---------- HOTELS & GAMING -- 1.0% *2,154 Host Marriott Corp. ............... 19,390 ---------- INSURANCE -- 5.3% 1,180 Ace Ltd. .......................... 47,369 183 Ambac Financial Group, Inc. ....... 10,600 *+474 Anthem, Inc. ...................... 23,458 353 MBIA, Inc. ........................ 18,934 ---------- 100,361 ---------- MACHINERY -- 5.3% *283 American Standard Cos., Inc. ...... 19,323 645 Ingersoll-Rand Co. ................ 26,955 *+1,045 Lam Research Corp. ................ 24,263 636 Parker-Hannifin Corp. ............. 29,203 ---------- 99,744 ---------- MEDIA & ENTERTAINMENT -- 4.0% 371 Knight-Ridder, Inc. ............... 24,057 368 Scripps (E.W.) Co. (The), Class A................................. 24,308 *958 USA Networks, Inc. ................ 26,166 ---------- 74,531 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.9% 399 Beckman Coulter, Inc. ............. 17,658 816 Becton, Dickinson & Co. ........... 27,037 *122 St. Jude Medical, Inc. ............ 9,473 ---------- 54,168 ---------- METALS, MINERALS & MINING -- 1.0% 415 Lockheed Martin Corp. ............. 19,345 ----------
The accompanying notes are an integral part of this financial statement. 42 - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) RESEARCH & TESTING FACILITIES -- 2.8% *550 Applera Corp. -- Celera Genomics Group............................. $ 14,682 *+201 Cephalon, Inc. .................... 15,170 *210 Quest Diagnostics, Inc. ........... 15,066 *+309 Regeneron Pharmeceuticals, Inc. ... 8,693 ---------- 53,611 ---------- RETAIL -- 5.5% *417 ARAMARK Corp. ..................... 11,204 *345 BJ's Wholesale Club, Inc. ......... 15,219 *154 Dollar Tree Stores, Inc. .......... 4,757 *2,131 Staples, Inc. ..................... 39,853 *+767 Williams-Sonoma, Inc. ............. 32,913 ---------- 103,946 ---------- RUBBER & PLASTICS PRODUCTS -- 2.2% 551 NIKE, Inc., Class B................ 30,971 *+257 Sealed Air Corp. .................. 10,474 ---------- 41,445 ---------- SOFTWARE & SERVICES -- 7.2% *180 BISYS Group, Inc. (The)............ 11,518 *646 Cadence Design Systems, Inc. ...... 14,163 *+1,017 E*TRADE Group, Inc. ............... 10,421 *+2,027 Gartner Group, Inc., Class A....... 23,699 *928 Intuit, Inc. ...................... 39,681 *983 Openwave Systems, Inc. ............ 9,627 *394 Rational Software Corp. ........... 7,681 *+658 Time Warner Telecom, Inc., Class A................................. 11,645 *933 WebMD Corp. ....................... 6,586 ---------- 135,021 ---------- TRANSPORTATION -- 5.8% 293 CNF Transportation, Inc. .......... 9,840 1,157 Delphi Automotive Systems Corp. ... 15,809 256 Northrop Grumman Corp. ............ 25,767 *629 Ryanair Holdings PLC, ADR.......... 20,169 1,210 Southwest Airlines Co. ............ 22,364 117 SPX Corp. ......................... 15,949 ---------- 109,898 ---------- UTILITIES -- 2.9% 1,126 DPL, Inc. ......................... 27,107 797 KeySpan Corp. ..................... 27,606 ---------- 54,713 ---------- Total common stocks................ $1,813,827 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.7% REPURCHASE AGREEMENT -- 3.7% $69,571 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.... $ 69,571 ---------- Total short-term securities........ $ 69,571 ==========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,674,224)......................... 96.3% $1,813,827 Total short-term securities (cost $69,571)............................ 3.7 69,571 ----- ---------- Total investment in securities (total cost $1,743,795).................... 100.0 1,883,398 Cash, receivables and other assets.... 0.6 10,821 Securities lending collateral (See Note 2(i)).......................... 6.8 127,357 Payable for securities purchased...... (0.5) (10,347) Payable for Fund shares redeemed...... (0.1) (1,075) Securities lending collateral payable to brokers (See Note 2(i)).......... (6.8) (127,357) Other liabilities..................... (0.0) (86) ----- ---------- Net assets............................ 100.0% $1,882,711 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 899,705 shares outstanding................................. $ 89,971 Capital surplus............................... 1,789,766 Accumulated undistributed net investment income...................................... 1,990 Accumulated net realized loss on investments................................. (138,619) Unrealized appreciation of investments........ 139,603 ---------- Net assets.................................... $1,882,711 ==========
Class IA Net asset value per share ($1,765,315 / 843,380 shares outstanding) (1,500,000 shares authorized).................................... $ 2.09 ====== Class IB Net asset value per share ($117,396 / 56,325 shares outstanding) (500,000 shares authorized).................................... $ 2.08 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 43 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 92.9% AUSTRALIA -- 1.2% 635 Brambles Industries Ltd. (Consumer Services)......................... $ 3,379 862 News Corp. Ltd. (The) (Media & Entertainment).................... 6,896 ---------- 10,275 ---------- BELGIUM -- 1.0% *365 Fortis (Financial Services)........ 9,478 ---------- BRAZIL -- 0.2% 78 Petroleo Brasileiro S.A., ADR (Energy & Services)............... 1,827 ---------- CANADA -- 1.0% 497 Abitibi-Consolidated, Inc. (Forest & Paper Products)................. 3,617 172 Alcan, Inc. (Metals, Minerals & Mining)........................... 6,158 ---------- 9,775 ---------- CHINA -- 0.3% *6,084 Aluminum Corp. (Metals, Minerals & Mining)........................... 1,061 129 PetroChina Co., Ltd., Class H, ADR (Energy & Services)............... 2,300 ---------- 3,361 ---------- FINLAND -- 1.9% 39 Nokia Corp., ADR (Communications).. 962 528 Nokia Oyj (Communications)......... 13,625 127 UPM-Kymmene Oyj (Forest & Paper Products)......................... 4,200 ---------- 18,787 ---------- FRANCE -- 12.8% 257 Aventis S.A. (Drugs)............... 18,277 456 AXA (Financial Services)........... 9,529 210 Banque Nationale de Paris (BNP) (Banks)........................... 18,808 289 Carrefour S.A. (Retail)............ 15,033 222 CNP Assurances (Financial Services)......................... 7,053 65 Groupe Danone (Food, Beverage & Tobacco).......................... 7,880 101 L'Oreal (Consumer Non-Durables).... 7,275 *+@620 Orange S.A. (Communications)....... 5,616 164 TotalFinaElf S.A., B Shares (Energy & Services)....................... 23,469 191 Vivendi S.A. (Media & Entertainment).................... 10,435 ---------- 123,375 ---------- GERMANY -- 6.6% 170 Adidas AG (Apparel & Textile)...... 12,656 232 Bayer AG (Chemicals)............... 7,378 369 Bayerische Vereinsbank AG (Banks)........................... 11,217 400 Deutsche Telekom AG (Communications).................. 6,913 +228 Deutsche Telekom AG, ADR (Communications).................. 3,850 84 E.On AG (Utilities)................ 4,378 15 SAP AG (Software & Services)....... 1,927
MARKET SHARES VALUE - --------- ---------- GERMANY -- (CONTINUED) +159 SAP AG, ADR (Software & Services)......................... $ 5,067 29 Siemens AG (Electronics)........... 1,932 +540 ThyssenKrupp AG (Metals, Minerals & Mining)........................... 7,905 ---------- 63,223 ---------- HONG KONG -- 2.2% +592 Cheung Kong (Holdings) Ltd. (Real Estate)........................... 6,149 *+1,527 China Telecom (Hong Kong) Ltd. (Communications).................. 5,375 +1,236 Sun Hung Kai Properties (Real Estate)........................... 9,986 ---------- 21,510 ---------- IRELAND -- 2.4% 911 Allied Irish Banks PLC (Banks)..... 10,461 *1,523 Ryanair Holdings PLC (Transportation).................. 9,376 1,410 Smurfit (Jefferson) Group PLC (Forest & Paper Products)......... 3,076 ---------- 22,913 ---------- ITALY -- 1.9% +669 Alleanza Assicurazioni (Insurance)....................... 7,359 +2,563 Banca Monte Dei Paschi di Siena S.p.A. (Banks).................... 6,389 +670 Mediaset S.p.A. (Media & Entertainment).................... 4,895 ---------- 18,643 ---------- JAPAN -- 13.2% 497 Asahi Glass Co. (Retail)........... 2,939 476 Banyu Pharmaceutical Co. (Drugs)... 7,082 259 Eisai Co., Ltd. (Medical Instruments & Supplies)........... 6,442 223 Fuji Photo Film Co., Ltd. (Consumer Non-Durables)..................... 7,963 177 Fujisawa Pharmaceutical Co., Ltd. (Drugs)........................... 4,079 @45 Fujisawa Pharmaceutical Co., Ltd. (Drugs)........................... 1,037 132 Hoya Corp. (Medical Instruments & Supplies)......................... 7,886 94 Murata Manufacturing Co., Ltd. (Electronics)..................... 5,655 +545 NEC Corp. (Electronics)............ 5,560 *993 Nikko Cordial Corp. (Financial Services)......................... 4,432 53 Nintendo Co., Ltd. (Consumer Non-Durables)..................... 9,351 1 Nippon Telegraph & Telephone Corp. (Communications).................. 4,050 1 NTT DoCoMo, Inc. (Communications)... 8,413 123 Promise Co., Ltd. (Financial Services)......................... 6,665 38 Rohm Co., Ltd. (Electronics)....... 4,932 86 Secom Co., Ltd. (Electronics)...... 4,318 *5 Sky Perfect (Communications)....... 4,838 256 Sony Corp. (Electronics)........... 11,682 454 Sumitomo Bank (Banks).............. 1,923 648 Tokyo Style Co., Ltd. (Apparel & Textile).......................... 5,557
The accompanying notes are an integral part of this financial statement. 44 - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) JAPAN -- (CONTINUED) 399 Toyota Motor Corp. (Transportation).................. $ 10,107 *+1 UFJ Holdings, Inc. (Banks)......... 2,626 ---------- 127,537 ---------- NETHERLANDS -- 8.7% 526 Aegon N.V. (Insurance)............. 14,224 211 Azko Nobel N.V. (Chemicals)........ 9,417 161 Heineken N.V. (Food, Beverage & Tobacco).......................... 6,115 *@584 Koninklijke (Royal) KPN N.V. (Communications).................. 2,970 397 Philips Electronics N.V. (Electronics)..................... 11,784 298 Royal Dutch Petroleum Co. (Energy & Services)......................... 15,098 100 Royal Dutch Petroleum Co., NY Shares (Energy & Services)........ 4,912 147 Schlumberger Ltd. (Energy & Services)......................... 8,100 505 TPG N.V. (Consumer Services)....... 10,935 ---------- 83,555 ---------- SINGAPORE -- 1.0% *@985 DBS Group Holdings Ltd. (Banks).... 7,361 +250 DBS Group Holdings Ltd. (Banks).... 1,868 ---------- 9,229 ---------- SOUTH AFRICA -- 0.6% 154 Anglogold Ltd. (Metals, Minerals & Mining)........................... 5,421 ---------- SOUTH KOREA -- 3.7% +537 Korea Electric Power Corp. (Utilities)....................... 8,871 71 Korea Electric Power Corp., ADR (Utilities)....................... 650 +412 Korea Telecom Corp., ADR (Communications).................. 8,368 69 Pohang Iron & Steel Co., Ltd. (Metals, Minerals & Mining)....... 6,448 32 Samsung Electronics Co., Ltd. (Electronics)..................... 6,893 24 SK Telecom Co., Ltd. (Communications).................. 4,874 ---------- 36,104 ---------- SPAIN -- 4.3% 641 Amadeus Global Travel Distribution S.A. (Consumer Services).......... 3,698 +211 Banco Popular Espanol S.A. (Banks)........................... 6,917 +248 Endesa S.A. (Utilities)............ 3,872 +292 Endesa S.A., ADR (Utilities)....... 4,574 309 Iberdrola S.A. (Utilities)......... 4,024 *403 Industria de Diseno Textil S.A. (Apparel & Textile)............... 7,679 *240 Telefonica S.A. (Communications)... 3,205 193 Telefonica S.A., ADR (Communications).................. 7,737 ---------- 41,706 ----------
MARKET SHARES VALUE - --------- ---------- SWEDEN -- 3.8% 572 ForeningsSparbanken AB, A Shares (Banks)........................... $ 7,084 864 Gambro AB, A Shares (Medical Instruments & Supplies)........... 5,397 431 Hennes & Mauritz AB, B Shares (Retail).......................... 8,917 877 Nordea AB (Banks).................. 4,642 +2,014 Telefonaktiebolaget LM Ericcson, B Shares (Communications)........... 10,942 ---------- 36,982 ---------- SWITZERLAND -- 5.0% *+74 Converium Holding AG, ADR (Financial Services).............. 1,803 258 Credit Suisse Group (Banks)........ 10,985 59 Nestle S.A. (Food, Beverage & Tobacco).......................... 12,565 127 Roche Holdings AG (Drugs).......... 9,029 11 Serono S.A., Class B (Drugs)....... 9,759 135 STMicroelectronics N.V. (Electronics)..................... 4,343 ---------- 48,484 ---------- TAIWAN -- 0.7% 5,003 Formosa Chemicals & Fiber Corp. (Chemicals)....................... 3,360 798 Hon Hai Precision Industry Co., Ltd. (Computers & Office)......... 3,649 ---------- 7,009 ---------- UNITED KINGDOM -- 20.4% 509 AstraZeneca PLC (Drugs)............ 23,005 1,815 BAE Systems PLC (Aerospace & Defense).......................... 8,170 1,737 BHP Billiton PLC (Metals, Minerals & Mining)......................... 8,773 1,148 BP PLC (Energy & Services)......... 8,905 1,699 British Airways PLC (Transporation)................... 4,864 *1,209 BT Group PLC (Communications)...... 4,453 2,266 Cable & Wireless PLC (Communications).................. 10,875 378 CGNU PLC (Financial Services)...... 4,625 896 Compass Group PLC (Food, Beverage & Tobacco).......................... 6,643 61 GlaxoSmithKline PLC (Drugs)........ 1,517 151 GlaxoSmithKline PLC, ADR (Drugs)... 7,523 2,696 Granada PLC (Media & Entertainment).................... 5,630 2,469 Invensys PLC (Electrical Equipment)........................ 4,330 728 Lloyds TSB Group PLC (Banks)....... 7,869 3,090 Marks & Spencer PLC (Retail)....... 16,414 *1,209 mm02 PLC (Communications).......... 1,522 587 Pearson PLC (Media & Entertainment).................... 6,731 506 Reckitt Benckiser PLC (Consumer Non-Durables)..................... 7,409 3,663 Rentokil Initial PLC (Business Services)............... 14,609 542 Royal Bank of Scotland Group PLC (Banks)........................... 13,184 535 Standard Chartered PLC (Financial Services)......................... 6,366 8,828 Vodafone Group PLC (Communications).................. 23,063 ---------- 196,480 ---------- Total common stocks................ $ 895,674 ==========
The accompanying notes are an integral part of this financial statement. 45 - -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- SHORT-TERM SECURITIES -- 7.6% REPURCHASE AGREEMENT -- 7.6% $72,928 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.................. $ 72,928 ---------- Total short-term securities........... $ 72,928 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $909,956)...... 92.9% $ 895,674 Total short-term securities (cost $72,928)............................... 7.6 72,928 ----- ---------- Total investment in securities (total cost $982,884)......................... 100.5 968,602 Cash, receivables and other assets....... 1.3 12,796 Securities lending collateral (See Note 2(i)).................................. 8.5 82,063 Payable for securities purchased......... (1.5) (14,592) Payable for Fund shares redeemed......... (0.2) (2,183) Securities lending collateral payable to brokers (See Note 2(i))................ (8.5) (82,063) Other liabilities........................ (0.1) (412) ----- ---------- Net assets............................... 100.0% $ 964,211 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,500,000 shares authorized; 1,011,600 shares outstanding................................... $ 101,160 Capital surplus................................. 1,129,895 Accumulated undistributed net investment income........................................ 8,428 Accumulated net realized loss on investments.... (260,144) Unrealized depreciation of investments.......... (14,282) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@......... 38 Unrealized depreciation of other assets and liabilities in foreign currencies............. (884) ---------- Net assets...................................... $ 964,211 ==========
Class IA Net asset value per share ($941,934 / 988,184 shares outstanding) (1,875,000 shares authorized)......... $0.95 ===== Class IB Net asset value per share ($22,277 / 23,416 shares outstanding) (625,000 shares authorized)........... $0.95 =====
MARKET VALUE -------- DIVERSIFICATION BY INDUSTRY: Aerospace & Defense........................ 0.8% $ 8,170 Apparel & Textile.......................... 2.7 25,892 Banks...................................... 11.6 111,334 Business Services.......................... 1.5 14,609 Chemicals.................................. 4.0 38,432 Communications............................. 13.8 131,651 Computers & Office Equipment............... 0.4 3,649 Consumer Non-Durables...................... 3.3 31,998 Consumer Services.......................... 1.9 18,012 Drugs...................................... 6.5 63,031 Electrical Equipment....................... 0.4 4,330 Electronics................................ 5.9 57,099 Energy & Services.......................... 6.8 64,611 Financial Services......................... 5.2 49,951 Food, Beverage & Tobacco................... 3.4 33,203 Forest & Paper Products.................... 1.1 10,893 Insurance.................................. 2.2 21,583 Media & Entertainment...................... 3.6 34,587 Medical Instruments & Supplies............. 2.0 19,725 Metals, Minerals & Mining.................. 3.7 35,766 Real Estate................................ 1.7 16,135 Retail..................................... 4.5 43,303 Software & Services........................ 0.7 6,994 Transportation............................. 2.5 24,347 Utilities.................................. 2.7 26,369 ----- -------- Total common stocks................ 92.9% $895,674 ===== ========
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $16,984 or 1.8% of net assets.
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- ---------- Australian Dollar (Sell) $1,450 $1,437 01/02/02 $(13) British Pound (Buy) 2,132 2,128 01/02/02 4 EURO (Buy) 3,772 3,742 01/03/02 30 Japanese Yen (Buy) 777 781 01/04/02 (4) Japanese Yen (Buy) 1,252 1,247 01/07/02 5 Japanese Yen (Buy) 257 256 01/08/02 1 Japanese Yen (Buy) 66 66 01/08/02 -- Swiss Franc (Buy) 1,437 1,422 01/04/02 15 ---- $ 38 ====
The accompanying notes are an integral part of this financial statement. 46 - -------------------------------------------------------------------------------- HARTFORD GLOBAL LEADERS HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 96.8% APPAREL & TEXTILE -- 1.1% 79 Adidas AG............................ $ 5,844 -------- BANKS -- 10.9% +93 Banco Popular Espanol S.A. .......... 3,051 52 Bank of America Corp. ............... 3,299 33 Bank One Corp. ...................... 1,304 97 Banque Nationale de Paris (BNP)...... 8,660 241 Bayerische Vereinsbank AG............ 7,316 265 Citigroup, Inc. ..................... 13,401 143 Credit Suisse Group.................. 6,103 88 Deutsche Bank AG..................... 6,220 266 Royal Bank of Scotland Group PLC..... 6,480 49 State Street Corp. .................. 2,555 -------- 58,389 -------- BUSINESS SERVICES -- 3.1% 854 Capita Group PLC..................... 6,002 2,697 Rentokil Initial PLC................. 10,757 -------- 16,759 -------- COMMUNICATIONS -- 14.3% 1,783 Cable & Wireless PLC................. 8,558 *43 Comverse Technology, Inc. ........... 966 524 Deutsche Telekom AG.................. 9,048 329 Koninklijke (Royal) KPN N.V. ........ 1,672 *@206 Koninklijke (Royal) KPN N.V. ........ 1,048 *1,296 mm02 PLC............................. 1,631 1 Nippon Telegraph & Telephone Corp. .............................. 4,770 261 Nokia Oyj............................ 6,730 +2,605 Olivetti S.p.A. ..................... 3,338 +239 SK Telecom Co., Ltd. ................ 5,163 1,919 Telefonaktiebolaget LM Ericcson, B Shares.............................. 10,426 *164 Telefonica S.A. ..................... 2,189 7,929 Vodafone Group PLC................... 20,715 -------- 76,254 -------- COMPUTERS & OFFICE EQUIPMENT -- 5.8% *226 Cisco Systems, Inc. ................. 4,095 164 Compaq Computer Corp. ............... 1,604 *289 Dell Computer Corp. ................. 7,844 418 Hewlett-Packard Co. ................. 8,578 46 International Business Machines Corp. .............................. 5,600 25 Minnesota Mining & Manufacturing Co. ................................ 2,967 -------- 30,688 -------- CONSUMER NON-DURABLES -- 8.0% 156 Avon Products, Inc. ................. 7,235 91 Colgate-Palmolive Co. ............... 5,226 275 Gillette Co. (The)................... 9,195 230 Mattel, Inc. ........................ 3,963 121 McKesson Corp. ...................... 4,507 40 Nintendo Co., Ltd. .................. 6,934 71 Procter & Gamble Co. (The)........... 5,650 -------- 42,710 -------- DRUGS -- 9.9% 197 Abbott Laboratories.................. 10,960 75 American Home Products Corp. ........ 4,584
MARKET SHARES VALUE - --------- -------- DRUGS -- (CONTINUED) 224 AstraZeneca PLC...................... $ 10,098 96 Fujisawa Pharmaceutical Co., Ltd. ... 2,212 228 Pharmacia Corp. ..................... 9,741 433 Schering-Plough Corp. ............... 15,509 -------- 53,104 -------- ELECTRONICS -- 7.2% 219 General Electric Co. ................ 8,794 60 Murata Manufacturing Co., Ltd. ...... 3,610 @85 Samsung Electronics, GDR............. 9,869 226 Sony Corp. .......................... 10,306 204 Texas Instruments, Inc. ............. 5,698 -------- 38,277 -------- ENERGY & SERVICES -- 5.8% 112 ExxonMobil Corp. .................... 4,390 256 Schlumberger Ltd. ................... 14,045 69 TotalFinaElf S.A., B Shares.......... 9,840 74 Transocean Sedco Forex, Inc. ........ 2,496 -------- 30,771 -------- FINANCIAL SERVICES -- 2.4% 67 Goldman Sachs Group, Inc. (The)...... 6,251 127 Merrill Lynch & Co., Inc. ........... 6,630 -------- 12,881 -------- FOOD, BEVERAGE & TOBACCO -- 2.4% 32 Nestle S.A. ......................... 6,842 122 PepsiCo., Inc. ...................... 5,950 -------- 12,792 -------- FOREST & PAPER PRODUCTS -- 1.8% 93 International Paper Co. ............. 3,732 179 UPM-Kymmene Oyj...................... 5,920 -------- 9,652 -------- HEALTH SERVICES -- 0.8% 5 Serono S.A., Class B................. 4,509 -------- INSURANCE -- 2.7% 131 American International Group, Inc. ............................... 10,378 37 Marsh & McLennan Cos., Inc. ......... 3,986 -------- 14,364 -------- MEDIA & ENTERTAINMENT -- 1.6% *153 USA Networks, Inc. .................. 4,178 *59 Viacom, Inc., Class B................ 2,583 35 Vivendi S.A. ........................ 1,900 -------- 8,661 -------- MEDICAL INSTRUMENTS & SUPPLIES --1.5% *109 Boston Scientific Corp. ............. 2,639 92 Johnson & Johnson.................... 5,437 -------- 8,076 -------- METALS, MINERALS & MINING -- 1.0% 106 Alcoa, Inc. ......................... 3,754 +129 Usinor Sacilor....................... 1,616 -------- 5,370 --------
The accompanying notes are an integral part of this financial statement. 47 - -------------------------------------------------------------------------------- HARTFORD GLOBAL LEADERS HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- (CONTINUED) RETAIL -- 7.7% *+24 eBay, Inc. .......................... $ 1,572 3,258 Marks & Spencer PLC.................. 17,310 +28 Pinault-Printemps-Redoute S.A. ...... 3,566 *685 Staples, Inc. ....................... 12,806 101 Wal-Mart Stores, Inc. ............... 5,784 -------- 41,038 -------- RUBBER & PLASTICS PRODUCTS -- 0.8% 74 NIKE, Inc., Class B.................. 4,162 -------- SOFTWARE & SERVICES -- 5.7% 67 First Data Corp. .................... 5,272 *130 Microsoft Corp. ..................... 8,642 *267 Openwave Systems, Inc. .............. 2,617 *490 Oracle Corp. ........................ 6,768 *592 Sun Microsystems, Inc. .............. 7,307 -------- 30,606 -------- TRANSPORTATION -- 2.3% 932 British Airways PLC.................. 2,668 *30 FedEx Corp. ......................... 1,577 42 Northrop Grumman Corp. .............. 4,224 641 P&O Princess Cruises PLC............. 3,720 -------- 12,189 -------- Total common stocks.................. $517,096 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.3% REPURCHASE AGREEMENT -- 3.3% $17,703 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.................. $ 17,703 -------- Total short-term securities.......... $ 17,703 ========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $483,403)..... 96.8% $517,096 Total short-term securities (cost $17,703).............................. 3.3 17,703 ----- -------- Total investment in securities (total cost $501,106)........................ 100.1 534,799 Cash, receivables and other assets...... 0.8 4,218 Securities lending collateral (See Note 2(i))................................. 3.3 17,634 Payable for securities purchased........ (0.5) (2,724) Payable for Fund shares redeemed........ (0.4) (2,188) Securities lending collateral payable to brokers (See Note 2(i))............... (3.3) (17,634) Other liabilities....................... (0.0) (88) ----- -------- Net assets.............................. 100.0% $534,017 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 370,152 shares outstanding................................. $ 370 Capital surplus............................... 665,522 Accumulated undistributed net investment income...................................... 388 Accumulated net realized loss on investments................................. (165,943) Unrealized appreciation of investments........ 33,693 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@....... 11 Unrealized depreciation of other assets and liabilities in foreign currencies........... (24) --------- Net assets.................................... $ 534,017 =========
Class IA Net asset value per share ($484,661 / 335,877 shares outstanding) (600,000 shares authorized)................................... $1.44 ===== Class IB Net asset value per share ($49,356 / 34,275 shares outstanding) (200,000 shares authorized)................................... $1.44 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $10,917 or 2.1% of net assets. @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ ---------- -------- -------------- --------- British Pound (Buy) $ 474 $ 473 01/02/02 $ 1 British Pound (Buy) 192 191 01/03/02 1 British Pound (Buy) 289 289 01/04/02 -- Japanese Yen (Sell) 1,986 1,995 01/04/02 9 ------- $ 11 =======
The accompanying notes are an integral part of this financial statement. 48 - -------------------------------------------------------------------------------- HARTFORD STOCK HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - -------- ---------- COMMON STOCKS -- 99.0% AEROSPACE & DEFENSE -- 0.5% *2,378 General Motors Corp., Class H...... $ 36,745 ---------- BANKS -- 11.2% 2,200 American Express Co................ 78,518 2,300 Bank One Corp...................... 89,815 5,317 Citigroup, Inc..................... 268,427 2,196 Fleet Boston Financial Corp........ 80,161 +3,600 Morgan (J.P.) Chase & Co........... 130,860 3,618 State Street Corp.................. 189,051 3,430 U.S. Bancorp....................... 71,790 ---------- 908,622 ---------- BUSINESS SERVICES -- 0.7% *2,150 Accenture Ltd...................... 57,878 ---------- CHEMICALS -- 1.3% 3,000 Dow Chemical Co. (The)............. 101,340 ---------- COMMUNICATIONS -- 3.5% 2,353 SBC Communications, Inc............ 92,152 1,900 Verizon Communications, Inc........ 90,174 *6,817 WorldCom, Inc. -- WorldCom Group... 95,978 ---------- 278,304 ---------- COMPUTERS & OFFICE EQUIPMENT --6.4% *7,356 Cisco Systems, Inc................. 133,217 9,545 Compaq Computer Corp............... 93,157 *2,965 EMC Corp........................... 39,852 1,652 International Business Machines Corp.............................. 199,790 *+4,855 Solectron Corp..................... 54,762 ---------- 520,778 ---------- CONSUMER NON-DURABLES -- 4.3% +600 Estee Lauder Cos., Inc. (The), Class A........................... 19,236 700 Gillette Co. (The)................. 23,380 *3,936 Safeway, Inc....................... 164,315 2,455 Tyco International Ltd............. 144,588 ---------- 351,519 ---------- DRUGS -- 11.3% 2,200 Abbott Laboratories................ 122,650 2,516 American Home Products Corp........ 154,376 *500 Amgen, Inc......................... 28,220 2,100 Bristol-Myers Squibb Co............ 107,100 2,024 Merck & Co., Inc................... 118,988 3,988 Pfizer, Inc........................ 158,919 2,403 Pharmacia Corp..................... 102,491 3,516 Schering-Plough Corp............... 125,901 ---------- 918,645 ---------- ELECTRONICS -- 7.6% +1,400 Emerson Electric Co................ 79,940 6,601 General Electric Co................ 264,556 5,424 Intel Corp......................... 170,588 *+1,400 Micron Technology, Inc............. 43,400 1,994 Texas Instruments, Inc............. 55,826 ---------- 614,310 ----------
MARKET SHARES VALUE - -------- ---------- ENERGY & SERVICES -- 6.2% +1,028 Anadarko Petroleum Corp............ $ 58,425 908 ChevronTexaco Corp................. 81,385 6,563 ExxonMobil Corp.................... 257,926 1,889 Schlumberger Ltd................... 103,817 ---------- 501,553 ---------- FINANCIAL SERVICES -- 3.0% 3,112 Franklin Resources, Inc............ 109,760 100 Goldman Sachs Group, Inc. (The).... 9,275 2,449 Merrill Lynch & Co., Inc........... 127,626 ---------- 246,661 ---------- FOOD, BEVERAGE & TOBACCO -- 2.1% 1,100 Coca-Cola Co. (The)................ 51,865 2,400 PepsiCo., Inc...................... 116,856 ---------- 168,721 ---------- FOREST & PAPER PRODUCTS -- 2.0% 800 International Paper Co............. 32,280 1,717 Kimberly-Clark Corp................ 102,647 500 Weyerhaeuser Co.................... 27,040 ---------- 161,967 ---------- HEALTH SERVICES -- 1.1% 2,315 HCA, Inc........................... 89,220 ---------- INSURANCE -- 5.1% 2,600 American International Group, Inc............................... 206,440 1,962 Marsh & McLennan Cos., Inc......... 210,860 ---------- 417,300 ---------- MACHINERY -- 0.9% 1,100 United Technologies Corp........... 71,093 ---------- MEDIA & ENTERTAINMENT -- 4.6% 2,950 Gannett Co., Inc................... 198,329 *6,954 Liberty Media Corp., Class A....... 97,362 *1,700 Viacom, Inc., Class B.............. 75,055 ---------- 370,746 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.5% 2,000 Johnson & Johnson.................. 118,200 ---------- METALS, MINERALS & MINING -- 2.4% 3,009 Alcoa, Inc......................... 106,966 1,300 Illinois Tool Works, Inc........... 88,036 ---------- 195,002 ---------- RETAIL -- 6.1% 3,300 CVS Corp........................... 97,680 3,209 Home Depot, Inc. (The)............. 163,711 4,100 Wal-Mart Stores, Inc............... 235,955 ---------- 497,346 ---------- RUBBER & PLASTICS PRODUCTS -- 0.1% 200 NIKE, Inc., Class B................ 11,248 ----------
The accompanying notes are an integral part of this financial statement. 49 - -------------------------------------------------------------------------------- HARTFORD STOCK HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - -------- ---------- COMMON STOCKS -- (CONTINUED) SOFTWARE & SERVICES -- 10.5% *6,174 AOL Time Warner, Inc............... $ 198,173 2,308 Automatic Data Processing, Inc..... 135,935 *1,039 Computer Sciences Corp............. 50,880 *5,759 Microsoft Corp..................... 381,662 *6,025 Oracle Corp........................ 83,205 ---------- 849,855 ---------- TRANSPORTATION -- 1.5% 2,285 Boeing Co. (The)................... 88,601 *600 FedEx Corp......................... 31,128 ---------- 119,729 ---------- UTILITIES -- 5.1% 2,600 Duke Energy Corp................... 102,076 2,500 El Paso Corp....................... 111,525 2,215 Exelon Corp........................ 106,059 1,683 FPL Group, Inc..................... 94,916 ---------- 414,576 ---------- Total common stocks................ $8,021,358 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 1.1% REPURCHASE AGREEMENT -- 1.1% $ 88,984 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02............... $ 88,984 ---------- Total short-term securities........ $ 88,984 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $7,522,304)........................ 99.0% $8,021,358 Total short-term securities (cost $88,984)........................... 1.1 88,984 ------ ---------- Total investment in securities (total cost $7,611,288)................... 100.1 8,110,342 Cash, receivables and other assets... 0.1 9,913 Securities lending collateral (See Note 2(i))......................... 1.2 94,116 Payable for Fund shares redeemed..... (0.2) (13,775) Securities lending collateral payable to brokers (See Note 2(i))......... (1.2) (94,116) Other liabilities.................... (0.0) (362) ------ ---------- Net assets........................... 100.0% $8,106,118 ====== ==========
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 3,000,000 shares authorized; 1,711,824 shares outstanding.......................... $ 171,182 Capital surplus............................... 7,719,840 Accumulated undistributed net investment income...................................... 3,412 Accumulated net realized loss on investments................................. (287,370) Unrealized appreciation of investments........ 499,054 ---------- Net assets.................................... $8,106,118 ==========
Class IA Net asset value per share ($7,834,643 / 1,654,447 shares outstanding) (2,250,000 shares authorized).................................... $ 4.74 ====== Class IB Net asset value per share ($271,475 / 57,377 shares outstanding) (750,000 shares authorized).................................... $ 4.73 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 50 - -------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 99.1% AEROSPACE & DEFENSE -- 0.1% 75 Raytheon Co. ...................... $ 2,430 ---------- APPAREL & TEXTILE -- 0.1% +10 Liz Claiborne, Inc. ............... 507 21 V. F. Corp. ....................... 827 ---------- 1,334 ---------- BANKS -- 11.5% 255 American Express Co. .............. 9,119 70 AmSouth Bancorporation ............ 1,319 301 Bank of America Corp. ............. 18,965 141 Bank of New York Co., Inc. (The) ............................ 5,753 223 Bank One Corp. .................... 8,719 87 BB&T Corp. ........................ 3,132 41 Capital One Financial Corp. ....... 2,220 43 Charter One Financial, Inc. ....... 1,168 985 Citigroup, Inc. ................... 49,729 34 Comerica, Inc. .................... 1,952 23 Countrywide Credit Industries, Inc. ............................. 957 191 Fannie Mae......................... 15,204 111 Fifth Third Bancorp................ 6,814 200 Fleet Boston Financial Corp. ...... 7,302 133 Freddie Mac........................ 8,702 30 Golden West Financial Corp. ....... 1,780 88 Household International, Inc. ..... 5,079 48 Huntington Bancshares, Inc. ....... 827 81 KeyCorp. .......................... 1,983 163 MBNA Corp. ........................ 5,741 90 Mellon Financial Corp. ............ 3,374 378 Morgan (J.P.) Chase & Co. ......... 13,737 116 National City Corp. ............... 3,395 43 Northern Trust Corp. .............. 2,561 54 PNC Financial Services Group....... 3,057 55 Providian Financial Corp. ......... 194 +44 Regions Financial Corp. ........... 1,308 66 SouthTrust Corp. .................. 1,621 62 State Street Corp. ................ 3,253 55 SunTrust Banks, Inc. .............. 3,464 56 Synovus Financial Corp. ........... 1,404 374 U.S. Bancorp....................... 7,820 26 Union Planters Corp. .............. 1,190 30 USA Education, Inc. ............... 2,531 261 Wachovia Corp. .................... 8,174 168 Washington Mutual, Inc. ........... 5,486 325 Wells Fargo & Co. ................. 14,103 18 Zions Bancorp. .................... 920 ---------- 234,057 ---------- BUSINESS SERVICES -- 0.9% *188 Cendant Corp. ..................... 3,687 *97 Concord EFS, Inc. ................. 3,163 *33 Convergys Corp. ................... 1,245 28 Equifax, Inc. ..................... 668 +15 Fluor Corp. ....................... 574 73 Interpublic Group of Cos., Inc. ... 2,148 36 Omnicom Group, Inc. ............... 3,179 72 Paychex, Inc. ..................... 2,512
MARKET SHARES VALUE - --------- ---------- BUSINESS SERVICES -- (CONTINUED) *34 Robert Half International, Inc. ... $ 905 *+21 TMP Worldwide, Inc. ............... 909 ---------- 18,990 ---------- CHEMICALS -- 1.2% 44 Air Products & Chemicals, Inc. .... 2,052 21 Avery Dennison Corp. .............. 1,191 173 Dow Chemical Co. (The) ............ 5,833 196 du Pont (E.I.) de Nemours & Co. ... 8,345 15 Eastman Chemical Co. .............. 584 10 Great Lakes Chemical Corp. ........ 238 18 International Flavors & Fragrances, Inc. ............................. 548 32 PPG Industries, Inc. .............. 1,674 31 Praxair, Inc. ..................... 1,703 42 Rohm & Haas Co. ................... 1,461 ---------- 23,629 ---------- COMMUNICATIONS -- 6.9% *151 ADC Telecommunications, Inc. ...... 695 59 ALLTEL Corp. ...................... 3,666 *16 Andrew Corp. ...................... 346 678 AT&T Corp. ........................ 12,290 *484 AT&T Wireless Services, Inc. ...... 6,962 *+56 Avaya, Inc. ....................... 674 359 BellSouth Corp. ................... 13,713 27 CenturyTel, Inc. .................. 886 *+63 CIENA Corp. ....................... 903 *36 Comverse Technology, Inc. ......... 802 +654 Lucent Technologies, Inc. ......... 4,112 426 Motorola, Inc. .................... 6,402 *64 Network Appliance, Inc. ........... 1,403 *+154 Nextel Communications, Inc., Class A ................................ 1,684 613 Nortel Networks Corp. ............. 4,597 *146 QUALCOMM, Inc. .................... 7,388 319 Qwest Communications International, Inc. ............................. 4,505 644 SBC Communications, Inc. .......... 25,213 30 Scientific-Atlanta, Inc. .......... 728 +170 Sprint Corp. ...................... 3,410 *189 Sprint PCS Group .................. 4,608 *+78 Tellabs, Inc. ..................... 1,179 520 Verizon Communications, Inc. ...... 24,670 *565 WorldCom, Inc. -- WorldCom Group ............................ 7,952 ---------- 138,788 ---------- COMPUTERS & OFFICE EQUIPMENT --5.7% *67 Apple Computer, Inc. .............. 1,473 *1,405 Cisco Systems, Inc. ............... 25,437 324 Compaq Computer Corp. ............. 3,166 *500 Dell Computer Corp. ............... 13,584 *424 EMC Corp. ......................... 5,703 *63 Gateway, Inc. ..................... 505 372 Hewlett-Packard Co. ............... 7,633 330 International Business Machines Corp. ............................ 39,892 17 International Game Technology ..... 1,134 *38 Jabil Circuit, Inc. ............... 857 *25 Lexmark International, Inc. ....... 1,464 75 Minnesota Mining & Manufacturing Co. .............................. 8,879
The accompanying notes are an integral part of this financial statement. 51 - -------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED) *110 Palm, Inc. ........................ $ 427 47 Pitney Bowes, Inc. ................ 1,767 *157 Solectron Corp. ................... 1,771 44 Symbol Technologies, Inc. ......... 702 ---------- 114,394 ---------- CONSTRUCTION -- 0.2% 12 Centex Corp. ...................... 679 82 Halliburton Co. ................... 1,077 17 ITT Industries, Inc. .............. 853 10 Kaufman and Broad Home Corp. ...... 387 12 McDermott International, Inc. ..... 148 +11 Pulte Corp. ....................... 511 ---------- 3,655 ---------- CONSUMER DURABLES -- 0.3% 182 Corning, Inc. ..................... 1,625 18 Grainger (W.W.), Inc. ............. 859 17 Johnson Controls, Inc. ............ 1,347 38 Leggett & Platt, Inc. ............. 875 51 Newell Rubbermaid, Inc. ........... 1,406 25 Visteon Corp. ..................... 380 ---------- 6,492 ---------- CONSUMER NON-DURABLES -- 4.4% +11 Alberto-Culver Co., Class B ....... 491 +20 AmerisourceBergen Corp. ........... 1,239 45 Avon Products, Inc. ............... 2,104 13 Brown-Forman Corp., Class B ...... 822 86 Cardinal Health, Inc. ............. 5,584 45 Clorox Co. (The) .................. 1,763 106 Colgate-Palmolive Co. ............. 6,104 +56 Eastman Kodak Co. ................. 1,646 25 Ecolab, Inc. ...................... 991 202 Gillette Co. (The) ................ 6,751 34 Hasbro, Inc. ...................... 545 83 Mattel, Inc. ...................... 1,422 55 McKesson Corp. .................... 2,058 248 Procter & Gamble Co. (The) ........ 19,634 *96 Safeway, Inc. ..................... 4,015 26 SuperValu, Inc. ................... 565 128 SYSCO Corp. ....................... 3,347 28 Tiffany & Co. ..................... 878 382 Tyco International Ltd. ........... 22,505 109 Unilever N.V., NY Shares .......... 6,306 ---------- 88,770 ---------- CONSUMER SERVICES -- 0.2% +33 Cintas Corp. ...................... 1,573 35 H&R Block, Inc. ................... 1,571 12 Ryder System, Inc. ................ 262 ---------- 3,406 ---------- DRUGS -- 9.4% 297 Abbott Laboratories ............... 16,572 253 American Home Products Corp. ...... 15,497 *200 Amgen, Inc. ....................... 11,301 *28 Biogen, Inc. ...................... 1,623
MARKET SHARES VALUE - --------- ---------- DRUGS -- (CONTINUED) 370 Bristol-Myers Squibb Co. .......... $ 18,894 *+36 Chiron Corp. ...................... 1,591 215 Eli Lilly & Co. ................... 16,907 *34 Forest Laboratories, Inc. ......... 2,799 *41 Genzyme Corp. ..................... 2,436 *104 Immunex Corp. ..................... 2,890 47 King Pharmaceuticals, Inc. ........ 1,982 *41 MedImmune, Inc. ................... 1,900 436 Merck & Co., Inc. ................. 25,610 1,204 Pfizer, Inc. ...................... 47,973 247 Pharmacia Corp. ................... 10,531 280 Schering-Plough Corp. ............. 10,037 14 Sigma-Aldrich Corp. ............... 557 *21 Watson Pharmaceuticals, Inc. ...... 644 ---------- 189,744 ---------- ELECTRICAL EQUIPMENT -- 0.7% *+88 Agilent Technologies, Inc. ........ 2,515 25 Allergan, Inc. .................... 1,894 41 Applera Corp. -- Applied Biosystems Group ............................ 1,593 27 Danaher Corp. ..................... 1,650 *36 KLA-Tencor Corp. .................. 1,768 9 Millipore Corp. ................... 555 24 PerkinElmer, Inc. ................. 837 36 Rockwell International Corp. ...... 636 36 Rockwell Collins, Inc. ............ 695 18 Tektronix, Inc. ................... 464 *35 Teradyne, Inc. .................... 1,057 *35 Thermo Electron Corp. ............. 824 ---------- 14,488 ---------- ELECTRONICS -- 8.3% *66 Advanced Micro Devices, Inc. ...... 1,045 *74 Altera Corp. ...................... 1,564 *38 American Power Conversion Corp. ... 548 *69 Analog Devices, Inc. .............. 3,073 *58 Applied Micro Circuits Corp. ...... 653 *+50 Broadcom Corp., Class A ........... 2,061 *+49 Conexant Systems, Inc. ............ 709 82 Emerson Electric Co. .............. 4,677 1,901 General Electric Co. .............. 76,194 1,285 Intel Corp. ....................... 40,424 *254 JDS Uniphase Corp. ................ 2,219 61 Linear Technology Corp. ........... 2,366 *70 LSI Logic Corp. ................... 1,109 *62 Maxim Integrated Products, Inc. ... 3,245 +15 Maytag Corp. ...................... 462 *115 Micron Technology, Inc. ........... 3,557 38 Molex, Inc. ....................... 1,168 *34 National Semiconductor Corp. ...... 1,036 *28 Novellus Systems, Inc. ............ 1,085 *+28 NVIDIA Corp. ...................... 1,846 *32 PMC-Sierra, Inc. .................. 678 *+15 Power-One, Inc. ................... 159 *+18 QLogic Corp. ...................... 788 *100 Sanmina-SCI Corp. ................. 1,986 332 Texas Instruments, Inc. ........... 9,285
The accompanying notes are an integral part of this financial statement. 52 - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) ELECTRONICS -- (CONTINUED) 11 Thomas & Betts Corp. .............. $ 239 *37 Vitesse Semiconductor Corp. ....... 460 13 Whirlpool Corp. ................... 942 +138 Xerox Corp. ....................... 1,437 *64 Xilinx, Inc. ...................... 2,496 ---------- 167,511 ---------- ENERGY & SERVICES -- 6.1% 17 Amerada Hess Corp. ................ 1,068 48 Anadarko Petroleum Corp. .......... 2,710 26 Apache Corp. ...................... 1,310 13 Ashland, Inc. ..................... 619 38 Burlington Resources, Inc. ........ 1,443 204 ChevronTexaco Corp. ............... 18,303 120 Conoco, Inc. ...................... 3,389 +24 Devon Energy Corp. ................ 939 22 EOG Resources, Inc. ............... 864 1,310 ExxonMobil Corp. .................. 51,477 19 Kerr-McGee Corp. .................. 1,058 *27 Nabors Industries, Inc. ........... 928 *25 Noble Drilling Corp. .............. 865 72 Occidental Petroleum Corp. ........ 1,906 73 Phillips Petroleum Co. ............ 4,400 *18 Rowan Cos., Inc. .................. 353 407 Royal Dutch Petroleum Co., NY Shares ........................... 19,936 110 Schlumberger Ltd. ................. 6,055 15 Sunoco, Inc. ...................... 564 61 Transocean Sedco Forex, Inc. ...... 2,065 47 Unocal Corp. ...................... 1,691 59 USX -- Marathon Group ............. 1,779 ---------- 123,722 ---------- FINANCIAL SERVICES -- 1.6% 18 Bear Stearns Cos., Inc. (The) ..... 1,064 262 Charles Schwab Corp. (The) ........ 4,048 50 Franklin Resources, Inc. .......... 1,761 46 Lehman Brothers Holdings, Inc. .... 3,051 162 Merrill Lynch & Co., Inc. ......... 8,444 210 Morgan Stanley Dean Witter & Co. .............................. 11,746 42 Stilwell Financial, Inc. .......... 1,155 24 T Rowe Price Group, Inc. .......... 819 ---------- 32,088 ---------- FOOD, BEVERAGE & TOBACCO -- 4.6% 7 Adolph Coors Co., Class B ......... 375 169 Anheuser-Busch Cos., Inc. ......... 7,652 127 Archer-Daniels-Midland Co. ........ 1,817 78 Campbell Soup Co. ................. 2,342 476 Coca-Cola Co. (The) ............... 22,450 +85 Coca-Cola Enterprises, Inc. ....... 1,611 103 ConAgra Foods, Inc. ............... 2,446 70 General Mills, Inc. ............... 3,640 67 Heinz (H.J.) Co. .................. 2,758 21 Hercules, Inc. .................... 210 26 Hershey Foods Corp. ............... 1,757 78 Kellogg Co. ....................... 2,345 54 Pepsi Bottling Group, Inc. (The) ............................ 1,276 335 PepsiCo., Inc. .................... 16,311
MARKET SHARES VALUE - --------- ---------- FOOD, BEVERAGE & TOBACCO -- (CONTINUED) 415 Philip Morris Cos., Inc. .......... $ 19,023 150 Sara Lee Corp. .................... 3,336 32 UST, Inc. ......................... 1,108 43 Wrigley, (Wm.) Jr. Co. ............ 2,217 ---------- 92,674 ---------- FOREST & PAPER PRODUCTS -- 0.9% 10 Bemis Co., Inc. ................... 495 +11 Boise Cascade Corp. ............... 384 44 Georgia-Pacific Corp. ............. 1,222 92 International Paper Co. ........... 3,720 101 Kimberly-Clark Corp. .............. 6,012 *20 Louisiana-Pacific Corp. ........... 171 19 Mead Corp. (The) .................. 594 *31 Pactiv Corp. ...................... 546 9 Temple-Inland, Inc. ............... 532 20 Westvaco Corp. .................... 564 41 Weyerhaeuser Co. .................. 2,237 21 Willamette Industries, Inc. ....... 1,098 ---------- 17,575 ---------- HEALTH SERVICES -- 0.5% 99 HCA, Inc. ......................... 3,798 *50 Health Management Associates, Inc., Class A .......................... 917 *75 HEALTH SOUTH Corp. ................ 1,112 *20 Manor Care, Inc. .................. 464 *62 Tenet Healthcare Corp. ............ 3,659 ---------- 9,950 ---------- HOTELS & GAMING -- 0.2% 72 Hilton Hotels Corp. ............... 781 46 Marriott International, Inc., Class A ................................ 1,874 38 Starwood Hotels & Resorts Worldwide, Inc. .................. 1,134 ---------- 3,789 ---------- INSURANCE -- 4.7% 29 Aetna, Inc. ....................... 943 104 AFLAC, Inc. ....................... 2,560 141 Allstate Corp. (The) .............. 4,745 21 Ambac Financial Group, Inc. ....... 1,206 516 American International Group, Inc. ............................. 40,949 52 Aon Corp. ......................... 1,830 34 Chubb Corp. (The) ................. 2,317 29 CIGNA Corp. ....................... 2,678 32 Cincinnati Financial Corp. ........ 1,218 +67 Conseco, Inc. ..................... 298 *+33 Humana, Inc. ...................... 385 30 Jefferson-Pilot Corp. ............. 1,375 57 John Hancock Financial Services, Inc. ............................. 2,362 38 Lincoln National Corp. ............ 1,833 38 Loews Corp. ....................... 2,093 53 Marsh & McLennan Cos., Inc. ....... 5,653 29 MBIA, Inc. ........................ 1,568 145 MetLife, Inc. ..................... 4,587 21 MGIC Investment Corp. ............. 1,306 14 Progressive Corp. (The) ........... 2,156 25 Safeco Corp. ...................... 786 41 St. Paul Cos., Inc. (The) ......... 1,804
The accompanying notes are an integral part of this financial statement. 53 - -------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) INSURANCE -- (CONTINUED) 25 Torchmark Corp. ................... $ 977 60 UnitedHealth Group, Inc. .......... 4,227 48 UNUMProvident Corp. ............... 1,280 *+12 Wellpoint Health Networks, Inc. ... 1,427 26 XL Capital Ltd., Class A .......... 2,384 ---------- 94,947 ---------- MACHINERY -- 1.3% *156 Applied Materials, Inc. ........... 6,269 64 Baker Hughes, Inc. ................ 2,348 15 Black & Decker Corp. (The) ........ 577 66 Caterpillar, Inc. ................. 3,431 8 Cummins, Inc. ..................... 306 45 Deere & Co. ....................... 1,963 39 Dover Corp. ....................... 1,445 13 Eaton Corp. ....................... 1,000 *6 FMC Corp. ......................... 357 32 Ingersoll-Rand Co. ................ 1,342 24 Pall Corp. ........................ 568 23 Parker-Hannifin Corp. ............. 1,033 16 Stanley Works (The) ............... 759 90 United Technologies Corp. ......... 5,795 ---------- 27,193 ---------- MEDIA & ENTERTAINMENT -- 2.5% +12 American Greetings Corp. .......... 170 *114 Clear Channel Communications, Inc. ............................. 5,824 *181 Comcast Corp., Class A ............ 6,516 22 Donnelly (R.R.) & Sons Co. ........ 663 16 Dow Jones & Co., Inc. ............. 886 51 Gannett Co., Inc. ................. 3,409 *22 Harrah's Entertainment, Inc. ...... 804 16 Knight-Ridder, Inc. ............... 1,050 37 McGraw-Hill Cos., Inc. (The) ...... 2,259 +10 Meredith Corp. .................... 341 29 New York Times Co. (The), Class A ................................ 1,261 57 Tribune Co. ....................... 2,132 *+40 Univision Communications, Inc. .... 1,626 *340 Viacom, Inc., Class B ............. 14,992 390 Walt Disney Co. (The) ............. 8,089 ---------- 50,022 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 3.3% 10 Bard (C.R.), Inc. ................. 630 10 Bausch & Lomb, Inc. ............... 391 113 Baxter International, Inc. ........ 6,065 50 Becton, Dickinson & Co. ........... 1,641 52 Biomet, Inc. ...................... 1,598 *77 Boston Scientific Corp. ........... 1,863 58 Guidant Corp. ..................... 2,908 587 Johnson & Johnson ................. 34,713 232 Medtronic, Inc. ................... 11,872 *17 St. Jude Medical, Inc. ............ 1,295 38 Stryker Corp. ..................... 2,195 *37 Zimmer Holdings, Inc. ............. 1,133 ---------- 66,304 ----------
MARKET SHARES VALUE - --------- ---------- METALS, MINERALS & MINING -- 1.4% 61 Alcan, Inc. ....................... $ 2,207 163 Alcoa, Inc. ....................... 5,779 16 Allegheny Technologies, Inc. ...... 262 5 Ball Corp. ........................ 382 103 Barrick Gold Corp. ................ 1,642 18 Cooper Industries, Inc. ........... 632 12 Crane Co. ......................... 298 25 Engelhard Corp. ................... 695 28 Fortune Brands, Inc. .............. 1,126 *+28 Freeport-McMoran Copper & Gold, Inc., Class B .................... 374 58 Illinois Tool Works, Inc. ......... 3,951 35 Inco Ltd. ......................... 597 84 Lockheed Martin Corp. ............. 3,934 88 Masco Corp. ....................... 2,155 +38 Newmont Mining Corp. .............. 717 15 Nucor Corp. ....................... 799 *15 Phelps Dodge Corp. ................ 498 64 Placer Dome, Inc. ................. 693 11 Snap-On, Inc. ..................... 381 *17 USX -- U.S. Steel Group ........... 315 19 Vulcan Materials Co. .............. 931 17 Worthington Industries, Inc. ...... 236 ---------- 28,604 ---------- REAL ESTATE -- 0.2% 79 Equity Office Properties Trust .... 2,388 52 Equity Residential Properties Trust (REIT) ........................... 1,493 ---------- 3,881 ---------- RESEARCH & TESTING FACILITIES -- 0.1% 30 Moody's Corp. ..................... 1,193 *23 Quintiles Transnational Corp. ..... 373 ---------- 1,566 ---------- RETAIL -- 7.4% 78 Albertson's, Inc. ................. 2,448 *21 AutoZone, Inc. .................... 1,478 *56 Bed Bath & Beyond, Inc. ........... 1,882 *40 Best Buy Co., Inc. ................ 3,006 *22 Big Lots, Inc. .................... 229 40 Circuit City Stores Group ......... 1,047 *87 Costco Wholesale Corp. ............ 3,845 75 CVS Corp. ......................... 2,216 22 Darden Restaurants, Inc. .......... 790 16 Dillard's, Inc., Class A .......... 262 63 Dollar General Corp. .............. 943 33 Family Dollar Stores, Inc. ........ 989 *37 Federated Department Stores, Inc. ............................. 1,517 165 Gap, Inc. (The) ................... 2,302 449 Home Depot, Inc. (The) ............ 22,891 *23 Jones Apparel Group, Inc. ......... 773 *+97 Kmart Corp. ....................... 527 *64 Kohl's Corp. ...................... 4,519 *154 Kroger Co. (The) .................. 3,212 82 Limited, Inc. (The) ............... 1,208 148 Lowe's Cos., Inc. ................. 6,882 57 May Department Stores Co. (The) ... 2,120
The accompanying notes are an integral part of this financial statement. 54 - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) RETAIL -- (CONTINUED) 246 McDonald's Corp. .................. $ 6,515 26 Nordstrom, Inc. ................... 529 *59 Office Depot, Inc. ................ 1,089 51 Penney (J.C.) Co., Inc. ........... 1,360 34 RadioShack Corp. .................. 1,033 62 Sears, Roebuck and Co. ............ 2,941 30 Sherwin-Williams Co. (The) ........ 821 *88 Staples, Inc. ..................... 1,653 *+73 Starbucks Corp. ................... 1,393 173 Target Corp. ...................... 7,097 52 TJX Cos., Inc. (The) .............. 2,082 *38 Toys R Us, Inc. ................... 797 *28 Tricon Global Restaurants, Inc. ... 1,374 853 Wal-Mart Stores, Inc. ............. 49,119 195 Walgreen Co. ...................... 6,576 20 Wendy's International, Inc. ....... 595 +27 Winn-Dixie Stores, Inc. ........... 390 ---------- 150,450 ---------- RUBBER & PLASTICS PRODUCTS -- 0.2% 14 Cooper Tire & Rubber Co. .......... 224 +32 Goodyear Tire & Rubber Co. (The) ............................ 750 51 NIKE, Inc., Class B ............... 2,892 *11 Reebok International Ltd. ......... 304 *+16 Sealed Air Corp. .................. 653 11 Tupperware Corp. .................. 215 ---------- 5,038 ---------- SOFTWARE & SERVICES -- 8.1% 45 Adobe Systems, Inc. ............... 1,410 *848 AOL Time Warner, Inc. ............. 27,212 11 Autodesk, Inc. .................... 398 118 Automatic Data Processing, Inc. ... 6,957 *47 BMC Software, Inc. ................ 772 *36 Citrix Systems, Inc. .............. 815 110 Computer Associates International, Inc. ............................. 3,804 *33 Computer Sciences Corp. ........... 1,593 *71 Compuware Corp. ................... 839 +13 Deluxe Corp. ...................... 538 91 Electronic Data Systems Corp. ..... 6,218 73 First Data Corp. .................. 5,735 *36 Fiserv, Inc. ...................... 1,524 57 IMS Health, Inc. .................. 1,105 *41 Intuit, Inc. ...................... 1,736 *16 Mercury Interactive Corp. ......... 547 *1,031 Microsoft Corp. ................... 68,344 *19 NCR Corp. ......................... 686 *70 Novell, Inc. ...................... 322 *1,065 Oracle Corp. ...................... 14,708 *51 Parametric Technology Corp. ....... 397 *58 PeopleSoft, Inc. .................. 2,343 *25 Sapient Corp. ..................... 190 *89 Siebel Systems, Inc. .............. 2,476 *621 Sun Microsystems, Inc. ............ 7,660 *62 Unisys Corp. ...................... 776 *77 VERITAS Software Corp. ............ 3,442 *109 Yahoo!, Inc. ...................... 1,936 ---------- 164,483 ----------
MARKET SHARES VALUE - --------- ---------- TRANSPORTATION -- 2.8% *30 AMR Corp. ......................... $ 660 160 Boeing Co. (The) .................. 6,217 17 Brunswick Corp. ................... 370 74 Burlington Northern Santa Fe Corp. ............................ 2,115 112 Carnival Corp., Class A ........... 3,151 41 CSX Corp. ......................... 1,430 29 Dana Corp. ........................ 399 107 Delphi Automotive Systems Corp. ... 1,465 24 Delta Air Lines, Inc. ............. 698 *57 FedEx Corp. ....................... 2,962 347 Ford Motor Co. .................... 5,451 39 General Dynamics Corp. ............ 3,078 106 General Motors Corp. .............. 5,171 33 Genuine Parts Co. ................. 1,216 20 Goodrich Corp. .................... 521 58 Harley-Davidson, Inc. ............. 3,150 156 Honeywell International, Inc. ..... 5,266 *12 Navistar International Corp. ...... 455 74 Norfolk Southern Corp. ............ 1,353 21 Northrop Grumman Corp. ............ 2,120 15 PACCAR, Inc. ...................... 962 *26 Sabre Holdings Corp. .............. 1,094 147 Southwest Airlines Co. ............ 2,708 27 Textron, Inc. ..................... 1,131 24 TRW, Inc. ......................... 900 48 Union Pacific Corp. ............... 2,708 *+13 US Airways Group, Inc. ............ 84 ---------- 56,835 ---------- UTILITIES -- 3.3% *102 AES Corp. (The) ................... 1,668 24 Allegheny Energy, Inc. ............ 877 *38 Allied Waste Industries, Inc. ..... 536 +27 Ameren Corp. ...................... 1,123 +62 American Electric Power Co., Inc. ............................. 2,683 *+58 Calpine Corp. ..................... 982 +30 CINergy Corp. ..................... 1,017 *54 Citizens Communications Co. ....... 578 26 CMS Energy Corp. .................. 622 +41 Consolidated Edison, Inc. ......... 1,647 31 Constellation Energy Group, Inc. ............................. 833 50 Dominion Resources, Inc. .......... 3,026 31 DTE Energy Co. .................... 1,307 149 Duke Energy Corp. ................. 5,837 67 Dynegy, Inc., Class A ............. 1,714 *62 Edison International .............. 941 98 El Paso Corp. ..................... 4,361 43 Entergy Corp. ..................... 1,662 62 Exelon Corp. ...................... 2,945 58 FirstEnergy Corp. ................. 2,031 34 FPL Group, Inc. ................... 1,900 27 KeySpan Corp. ..................... 925 22 Kinder Morgan, Inc. ............... 1,197 *77 Mirant Corp. ...................... 1,229 *31 Niagara Mohawk Holdings, Inc. ..... 548 9 NICOR, Inc. ....................... 365 40 NiSource, Inc. .................... 913 +7 Peoples Energy Corp. .............. 259 74 PG&E Corp. ........................ 1,427
The accompanying notes are an integral part of this financial statement. 55 - -------------------------------------------------------------------------------- HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) UTILITIES -- (CONTINUED) 16 Pinnacle West Capital Corp. ....... $ 677 28 PPL Corp. ......................... 976 20 Progress Energy, Inc., CVO ........ 8 42 Progress Energy, Inc. ............. 1,883 40 Public Service Enterprise Group, Inc. ............................. 1,684 57 Reliant Energy, Inc. .............. 1,516 40 Sempra Energy ..................... 975 133 Southern Co. (The) ................ 3,375 27 TECO Energy, Inc. ................. 711 +51 TXU Corp. ......................... 2,396 120 Waste Management, Inc. ............ 3,836 99 Williams Cos., Inc. (The) ......... 2,519 66 Xcel Energy, Inc................... 1,835 ---------- 67,544 ---------- Total common stocks................ $2,004,353 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 0.8% REPURCHASE AGREEMENT -- 0.7% $15,253 Joint Repurchase Agreement (See Note 2(d)) 1.635% due 01/02/02 ... $ 15,253 ---------- U.S. TREASURY BILLS -- 0.1% 1,275 1.675% due 03/14/02 ............... $ 1,271 ---------- Total short-term securities ....... $ 16,524 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,718,209)......................... 99.1% $2,004,353 Total short-term securities (cost $16,524)............................ 0.8 16,524 ----- ---------- Total investment in securities (total cost $1,734,733).................... 99.9 2,020,877 Cash, receivables and other assets.... 0.1 2,337 Securities lending collateral (See Note 2(i))..................... 2.5 49,640 Payable for securities purchased...... (0.0) (196) Payable for Fund shares redeemed...... (0.0) (485) Securities lending collateral payable to brokers (See Note 2(i)).......... (2.5) (49,640) Other liabilities..................... (0.0) (116) ----- ---------- Net assets............................ 100.0% $2,022,417 ===== ==========
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 635,727 shares outstanding................................. $ 63,573 Capital surplus............................... 1,603,166 Accumulated undistributed net investment income...................................... 1,287 Accumulated undistributed net realized gain on investments................................. 68,171 Unrealized appreciation of investments........ 286,144 Unrealized appreciation of futures contracts ++.......................................... 76 ---------- Net assets.................................... $2,022,417 ==========
Class IA Net asset value per share ($1,976,361/621,223 shares outstanding) (1,500,000 shares authorized)..................................... $3.18 ===== Class IB Net asset value per share ($46,056/14,504 shares outstanding) (500,000 shares authorized)........ $3.18 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). ++ The Fund had 64 Standard & Poor's 500 March 2002 Futures contracts open as of December 31, 2001. These contracts had a value of $18,387 as of December 31, 2001 and were collateralized by various U.S. Treasury Bills with a market value of $1,271. The accompanying notes are an integral part of this financial statement. 56 - -------------------------------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 98.7% BANKS -- 11.0% 111 Bank of America Corp. ............... $ 6,962 364 Citigroup, Inc. ..................... 18,398 114 Fannie Mae........................... 9,031 28 Golden West Financial Corp. ......... 1,671 132 Pacific Century Financial Corp. ..... 3,428 44 PNC Financial Services Group......... 2,467 +148 UnionBanCal Corp. ................... 5,635 109 Wachovia Corp. ...................... 3,421 -------- 51,013 -------- CHEMICALS -- 1.1% 119 du Pont (E.I.) de Nemours & Co. ..... 5,071 -------- COMMUNICATIONS -- 5.8% 275 AT&T Corp. .......................... 4,989 85 Motorola, Inc. ...................... 1,272 *41 QUALCOMM, Inc. ...................... 2,055 135 Qwest Communications International, Inc. ............................... 1,908 156 Sprint Corp. ........................ 3,126 173 Verizon Communications, Inc. ........ 8,196 *373 WorldCom, Inc. -- WorldCom Group..... 5,255 -------- 26,801 -------- COMPUTERS & OFFICE EQUIPMENT -- 5.5% *423 Cisco Systems, Inc. ................. 7,664 *116 Dell Computer Corp. ................. 3,139 285 Hewlett-Packard Co. ................. 5,860 43 International Business Machines Corp. .............................. 5,225 *30 Lexmark International, Inc. ......... 1,764 *169 Solectron Corp. ..................... 1,901 -------- 25,553 -------- CONSUMER DURABLES -- 0.6% *543 Sycamore Networks, Inc. ............. 2,908 -------- CONSUMER NON-DURABLES -- 8.4% +37 AmerisourceBergen Corp. ............. 2,364 127 McKesson Corp. ...................... 4,761 139 Procter & Gamble Co. (The) .......... 11,023 *189 Safeway, Inc. ....................... 7,887 220 Tyco International Ltd. ............. 12,929 -------- 38,964 -------- DRUGS -- 10.8% 165 Abbott Laboratories.................. 9,199 98 American Home Products Corp. ........ 6,019 71 Eli Lilly & Co. ..................... 5,537 *95 Immunex Corp. ....................... 2,638 54 Merck & Co., Inc. ................... 3,199 79 Pfizer, Inc. ........................ 3,140 294 Pharmacia Corp. ..................... 12,527 218 Schering-Plough Corp. ............... 7,803 -------- 50,062 -------- ELECTRICAL EQUIPMENT -- 0.4% *108 Credence Systems Corp. .............. 2,000 --------
MARKET SHARES VALUE - --------- -------- ELECTRONICS -- 6.7% *53 Analog Devices, Inc. ................ $ 2,330 337 General Electric Co. ................ 13,511 145 Intel Corp. ......................... 4,551 48 Linear Technology Corp. ............. 1,878 *138 Sanmina -- SCI Corp. ................ 2,752 55 Texas Instruments, Inc. ............. 1,546 *149 Vitesse Semiconductor Corp. ......... 1,858 *64 Xilinx, Inc. ........................ 2,480 -------- 30,906 -------- ENERGY & SERVICES -- 5.5% 148 Burlington Resources, Inc. .......... 5,567 69 ChevronTexaco Corp. ................. 6,174 187 ExxonMobil Corp. .................... 7,329 113 GlobalSantaFe Corp. ................. 3,231 86 Sunoco, Inc. ........................ 3,193 -------- 25,494 -------- FINANCIAL SERVICES -- 1.9% 13 Goldman Sachs Group, Inc. (The)...... 1,196 *51 Investment Technology Group, Inc. ... 1,993 108 Merrill Lynch & Co., Inc. ........... 5,619 -------- 8,808 -------- FOOD, BEVERAGE & TOBACCO -- 4.1% 113 Pepsi Bottling Group, Inc. (The)..... 2,646 125 PepsiCo., Inc. ...................... 6,106 148 Philip Morris Cos., Inc. ............ 6,795 63 Reynolds (R.J.) Tobacco Holdings, Inc. ............................... 3,558 -------- 19,105 -------- FOREST & PAPER PRODUCTS -- 1.0% 46 Kimberly-Clark Corp. ................ 2,739 37 Temple-Inland, Inc. ................. 2,071 -------- 4,810 -------- HEALTH SERVICES -- 0.4% 47 HCA, Inc. ........................... 1,819 -------- INSURANCE -- 4.2% 122 Ambac Financial Group, Inc. ......... 7,033 93 American International Group, Inc. ............................... 7,383 112 St. Paul Cos., Inc. (The)............ 4,916 -------- 19,332 -------- MEDIA & ENTERTAINMENT -- 2.6% *+89 Adelphia Communications Corp., Class A................................... 2,787 +50 Knight-Ridder, Inc. ................. 3,247 *428 Liberty Media Corp., Class A......... 5,991 -------- 12,025 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.5% 53 Baxter International, Inc. .......... 2,826 127 Becton, Dickinson & Co. ............. 4,203 -------- 7,029 --------
The accompanying notes are an integral part of this financial statement. 57 - -------------------------------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- (CONTINUED) METALS, MINERALS & MINING -- 2.9% 42 Alcoa, Inc. ......................... $ 1,475 83 Engelhard Corp. ..................... 2,309 189 Freeport-McMoran Copper & Gold, Inc., Class A............................. 2,442 149 Lockheed Martin Corp. ............... 6,944 -------- 13,170 -------- RESEARCH & TESTING FACILITIES -- 0.7% *+40 Cephalon, Inc. ...................... 3,054 -------- RETAIL -- 9.4% *152 Bed Bath & Beyond, Inc. ............. 5,160 210 CVS Corp. ........................... 6,222 225 Dollar General Corp. ................ 3,347 130 Home Depot, Inc. (The) .............. 6,629 *88 Kroger Co. (The)..................... 1,828 104 Lowe's Cos., Inc. ................... 4,822 153 McDonald's Corp. .................... 4,047 *1 Staples, Inc. ....................... 11 132 Target Corp. ........................ 5,402 102 Wal-Mart Stores, Inc. ............... 5,876 -------- 43,344 -------- SOFTWARE & SERVICES -- 9.3% *260 AOL Time Warner, Inc. ............... 8,359 106 First Data Corp. .................... 8,331 *278 Microsoft Corp. ..................... 18,390 *248 Oracle Corp. ........................ 3,428 *133 Sun Microsystems, Inc. .............. 1,636 *+80 VeriSign, Inc. ...................... 3,045 -------- 43,189 -------- TRANSPORTATION -- 1.0% *40 FedEx Corp. ......................... 2,065 79 USFreightways Corp. ................. 2,471 -------- 4,536 -------- UTILITIES -- 3.9% 42 Dominion Resources, Inc. ............ 2,542 97 Duke Energy Corp. ................... 3,824 139 Dynegy Inc., Class A ................ 3,542 123 Exelon Corp. ........................ 5,881 63 Waste Management, Inc. .............. 2,020 -------- 17,809 -------- Total common stocks.................. $456,802 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.3% REPURCHASE AGREEMENT -- 3.3% $15,453 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02................. $ 15,453 -------- Total short-term securities.......... $ 15,453 ========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $476,090)..... 98.7% $456,802 Total short-term securities (cost $15,453).............................. 3.3 15,453 ----- -------- Total investment in securities (total cost $491,543)........................ 102.0 472,255 Cash, receivables and other assets...... 0.4 1,755 Securities lending collateral (See Note 2(i))................................. 3.2 14,742 Payable for securities purchased........ (2.4) (11,383) Securities lending collateral payable to brokers (See Note 2(i))............... (3.2) (14,742) Other liabilities....................... (0.0) (15) ----- -------- Net assets.............................. 100.0% $462,612 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 394,785 shares outstanding.................................. $ 395 Capital surplus................................ 520,996 Accumulated undistributed net investment income....................................... 2,255 Accumulated net realized loss on investments... (41,686) Unrealized depreciation of investments......... (19,288) Unrealized depreciation of futures contracts ++........................................... (60) -------- Net assets..................................... $462,612 ========
Class IA Net asset value per share ($416,013 / 354,860 shares outstanding) (600,000 shares authorized).................................... $ 1.17 ====== Class IB Net asset value per share ($46,599 / 39,925 shares outstanding) (200,000 shares authorized).................................... $ 1.17 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). ++ The Fund had 19 Standard & Poor's 500 March 2002 Futures contracts open as of December 31, 2001. These contracts had a value of $5,459 as of December 31, 2001 and were collateralized by $299 of cash. The accompanying notes are an integral part of this financial statement. 58 - -------------------------------------------------------------------------------- HARTFORD VALUE HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- 97.7% BANKS -- 17.2% 8 Bank of America Corp. ................ $ 516 50 Citigroup, Inc. ...................... 2,519 9 Fannie Mae ........................... 747 14 Morgan (J.P.) Chase & Co. ............ 509 42 National City Corp. .................. 1,225 8 PNC Financial Services Group ......... 438 63 Washington Mutual, Inc. .............. 2,044 25 Wells Fargo & Co. .................... 1,065 ------- 9,063 ------- BUSINESS SERVICES -- 0.5% *17 KPMG Consulting, Inc. ................ 280 ------- CHEMICALS -- 1.7% 21 du Pont (E.I.) de Nemours & Co. ...... 893 ------- COMMUNICATIONS -- 10.2% 14 AT&T Corp. ........................... 256 *4 AT&T Wireless Services, Inc. ......... 58 39 BellSouth Corp. ...................... 1,503 *47 McLeodUSA, Inc., Class A ............. 18 40 Motorola, Inc. ....................... 601 26 Qwest Communications International, Inc. ................................ 360 45 Sprint Corp. ......................... 898 8 Verizon Communications, Inc. ......... 389 *93 WorldCom, Inc. -- WorldCom Group ..... 1,305 ------- 5,388 ------- COMPUTERS & OFFICE EQUIPMENT -- 3.2% *36 Dell Computer Corp. .................. 976 35 Hewlett-Packard Co. .................. 721 ------- 1,697 ------- DRUGS -- 3.7% 9 Abbott Laboratories .................. 491 24 Pharmacia Corp. ...................... 1,002 13 Schering-Plough Corp. ................ 469 ------- 1,962 ------- ELECTRICAL EQUIPMENT -- 1.1% 5 Rockwell International Corp. ......... 93 *15 Teradyne, Inc. ....................... 464 ------- 557 ------- ELECTRONICS -- 1.4% *18 Agere Systems, Inc. .................. 102 11 Emerson Electric Co. ................. 645 ------- 747 ------- ENERGY & SERVICES -- 9.0% 9 Ashland, Inc. ........................ 433 62 ExxonMobil Corp. ..................... 2,425 20 GlobalSantaFe Corp. .................. 573 16 Petroleo Brasileiro S.A., ADR ........ 351 *17 Rowan Cos., Inc. ..................... 337 15 Shell Transport & Trading Co., PLC, ADR ................................. 626 ------- 4,745 -------
MARKET SHARES VALUE - --------- ------- FINANCIAL SERVICES -- 0.9% 5 Goldman Sachs Group, Inc. (The) ...... $ 492 ------- FOOD, BEVERAGE & TOBACCO -- 2.9% 17 Kellogg Co. .......................... 524 20 PepsiCo., Inc. ....................... 993 ------- 1,517 ------- FOREST & PAPER PRODUCTS -- 3.8% 34 Kimberly-Clark Corp. ................. 2,027 ------- HEALTH SERVICES -- 1.1% *10 Tenet Healthcare Corp. ............... 581 ------- INSURANCE -- 8.0% 28 Ace Ltd. ............................. 1,116 12 Chubb Corp. (The) .................... 800 11 CIGNA Corp. .......................... 1,038 8 Marsh & McLennan Cos., Inc. .......... 892 8 StanCorp. Financial Group, Inc. ...... 364 ------- 4,210 ------- MACHINERY -- 4.0% 28 Caterpillar, Inc. .................... 1,463 14 Stanley Works (The) .................. 633 ------- 2,096 ------- MEDIA & ENTERTAINMENT -- 5.2% *33 Adelphia Communications Corp., Class A ................................... 1,023 *24 Comcast Corp., Class A ............... 860 1 Gannett Co., Inc. .................... 34 *57 Liberty Media Corp., Class A ......... 794 ------- 2,711 ------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.7% 9 Beckman Coulter, Inc. ................ 390 ------- METALS, MINERALS & MINING -- 4.2% 54 Alcoa, Inc. .......................... 1,934 4 Illinois Tool Works, Inc. ............ 284 ------- 2,218 ------- REAL ESTATE -- 1.0% 20 Archstone-Smith Trust (REIT) ......... 513 ------- RETAIL -- 5.3% *2 ARAMARK Corp. ........................ 56 20 CVS Corp. ............................ 598 47 Dollar General Corp. ................. 694 26 Family Dollar Stores, Inc. ........... 791 18 May Department Stores Co. (The) ...... 655 ------- 2,794 ------- RUBBER & PLASTICS PRODUCTS -- 2.2% 20 NIKE, Inc., Class B .................. 1,147 ------- TRANSPORTATION -- 1.3% 14 Canadian National Railway Co. ........ 686 ------- UTILITIES -- 9.1% 13 Exelon Corp. ......................... 642 14 FirstEnergy Corp. .................... 497 10 FPL Group, Inc. ...................... 564 29 National Fuel Gas Co. ................ 706
The accompanying notes are an integral part of this financial statement. 59 - -------------------------------------------------------------------------------- HARTFORD VALUE HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ------- COMMON STOCKS -- (CONTINUED) UTILITIES -- (CONTINUED) 6 Pinnacle West Capital Corp. .......... $ 268 13 Progress Energy, Inc. ................ 585 *23 Republic Services, Inc. .............. 449 13 Scana Corp. .......................... 353 29 Southern Co. (The) ................... 728 ------- 4,792 ------- Total common stocks $51,506 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.6% REPURCHASE AGREEMENT -- 3.6% $ 1,873 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02.................. $ 1,873 ------- Total short-term securities........... $ 1,873 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $50,250....... 97.7% $ 51,506 Total short-term securities (cost $1,873)............................... 3.6 1,873 ----- -------- Total investment in securities (total cost $52,123)......................... 101.3 53,379 Cash, receivables and other assets...... 1.8 965 Payable for securities purchased........ (3.1) (1,613) Dividends payable....................... (0.0) (19) Other liabilities....................... (0.0) (1) ----- -------- Net assets.............................. 100.0% $ 52,711 ===== ========
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 53,036 shares outstanding.................................. $ 53 Capital surplus................................ 51,494 Accumulated net realized loss on investments... (92) Unrealized appreciation of investments......... 1,256 -------- Net assets..................................... $ 52,711 ========
Class IA Net asset value per share ($40,759 / 41,003 shares outstanding)(600,000 shares authorized)......... $0.99 ===== Class IB Net asset value per share ($11,952 / 12,033 shares outstanding)(200,000 shares authorized)......... $0.99 =====
* Non-income producing during the period. The accompanying notes are an integral part of this financial statement. 60 - -------------------------------------------------------------------------------- HARTFORD DIVIDEND AND GROWTH FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 97.3% BANKS -- 10.1% 2,218 Citigroup, Inc. ................... $ 111,963 444 Freddie Mac........................ 29,057 1,270 Morgan (J.P.) Chase & Co. ......... 46,175 966 Pacific Century Financial Corp..... 25,005 +788 People's Bank...................... 16,753 +884 Synovus Financial Corp. ........... 22,144 1,630 U.S. Bancorp....................... 34,112 +352 UnionBanCal Corp. ................. 13,365 1,047 Wachovia Corp...................... 32,831 218 Washington Mutual, Inc. ........... 7,143 ---------- 338,548 ---------- CHEMICALS -- 4.3% 797 Avery Dennison Corp. .............. 45,032 1,810 du Pont (E.I.) de Nemours & Co. ... 76,926 616 Rohm & Haas Co. ................... 21,332 ---------- 143,290 ---------- COMMUNICATIONS -- 6.4% 1,661 AT&T Corp. ........................ 30,127 1,071 BellSouth Corp. ................... 40,840 2,277 Motorola, Inc. .................... 34,204 1,987 Qwest Communications International, Inc. ............................. 28,079 1,675 Verizon Communications, Inc. ...... 79,498 ---------- 212,748 ---------- COMPUTERS & OFFICE EQUIPMENT -- 6.1% *1,322 EMC Corp. ......................... 17,768 2,180 Hewlett-Packard Co. ............... 44,781 738 International Business Machines Corp. ............................ 89,220 176 Minnesota Mining & Manufacturing Co. .............................. 20,840 812 Pitney Bowes, Inc. ................ 30,532 ---------- 203,141 ---------- CONSTRUCTION -- 0.4% 926 Halliburton Co. ................... 12,125 ---------- CONSUMER DURABLES -- 0.4% 496 Newell Rubbermaid, Inc. ........... 13,669 ---------- CONSUMER NON-DURABLES -- 4.1% 596 McKesson Corp. .................... 22,294 832 Procter & Gamble Co. (The)......... 65,812 *1,214 Safeway, Inc. ..................... 50,680 ---------- 138,786 ---------- DRUGS -- 6.6% 1,050 Abbott Laboratories................ 58,521 520 American Home Products Corp. ...... 31,895 +761 AstraZeneca PLC, ADR............... 35,477 431 Merck & Co., Inc. ................. 25,343 1,670 Pharmacia Corp. ................... 71,211 ---------- 222,447 ----------
MARKET SHARES VALUE - --------- ---------- ELECTRONICS -- 2.2% 659 Emerson Electric Co. .............. $ 37,652 932 General Electric Co. .............. 37,374 ---------- 75,026 ---------- ENERGY & SERVICES -- 9.7% 799 ChevronTexaco Corp. ............... 71,572 3,071 ExxonMobil Corp. .................. 120,681 1,057 PanCanadian Energy Corp. .......... 27,480 740 Royal Dutch Petroleum Co., NY Shares............................ 36,255 633 Schlumberger Ltd. ................. 34,783 +487 TotalFinaElf S.A., ADR............. 34,172 ---------- 324,943 ---------- FINANCIAL SERVICES -- 2.1% 922 Franklin Resources, Inc. .......... 32,522 748 Merrill Lynch & Co., Inc. ......... 38,970 ---------- 71,492 ---------- FOOD, BEVERAGE & TOBACCO -- 4.3% 1,952 ConAgra Foods, Inc. ............... 46,399 1,503 Philip Morris Cos., Inc. .......... 68,922 500 Reynolds (R.J.) Tobacco Holdings, Inc. ............................. 28,161 ---------- 143,482 ---------- FOREST & PAPER PRODUCTS -- 3.7% 853 Abitibi-Consolidated, Inc. ........ 6,241 155 Bowater, Inc. ..................... 7,379 778 Kimberly-Clark Corp. .............. 46,542 339 Temple-Inland, Inc. ............... 19,248 834 Weyerhaeuser Co. .................. 45,124 ---------- 124,534 ---------- HEALTH SERVICES -- 0.1% 54 HCA, Inc. ......................... 2,077 ---------- INSURANCE -- 6.0% 438 Ace Ltd. .......................... 17,582 549 AFLAC, Inc. ....................... 13,493 355 CIGNA Corp. ....................... 32,891 303 Marsh & McLennan Cos., Inc. ....... 32,595 563 MBIA, Inc. ........................ 30,167 721 St. Paul Cos., Inc. (The).......... 31,689 456 XL Capital Ltd., Class A........... 41,633 ---------- 200,050 ---------- MACHINERY -- 2.5% 899 Caterpillar, Inc. ................. 46,962 829 Parker-Hannifin Corp. ............. 38,073 ---------- 85,035 ---------- MEDIA & ENTERTAINMENT -- 3.0% *469 Comcast Corp., Class A............. 16,884 764 Gannett Co., Inc. ................. 51,350 +482 Knight-Ridder, Inc. ............... 31,296 ---------- 99,530 ----------
The accompanying notes are an integral part of this financial statement. 61 - -------------------------------------------------------------------------------- HARTFORD DIVIDEND AND GROWTH FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 0.7% 684 Becton, Dickinson & Co. ........... $ 22,681 ---------- METALS, MINERALS & MINING -- 3.5% 465 Alcan, Inc. ....................... 16,711 1,954 Alcoa, Inc. ....................... 69,468 634 Lockheed Martin Corp. ............. 29,584 ---------- 115,763 ---------- REAL ESTATE -- 0.4% 443 Kimco Realty Corp. (REIT).......... 14,465 ---------- RETAIL -- 4.2% 1,053 CVS Corp. ......................... 31,169 1,298 Family Dollar Stores, Inc. ........ 38,905 1,705 McDonald's Corp. .................. 45,129 436 Wal-Mart Stores, Inc. ............. 25,069 ---------- 140,272 ---------- SOFTWARE & SERVICES -- 2.0% *809 AOL Time Warner, Inc. ............. 25,953 *627 Microsoft Corp. ................... 41,525 ---------- 67,478 ---------- TRANSPORTATION -- 5.8% 855 Boeing Co. (The)................... 33,169 756 CP Railway Ltd. ................... 14,745 1,183 Delphi Automotive Systems Corp. ... 16,164 884 Delta Air Lines, Inc. ............. 25,872 *528 FedEx Corp. ....................... 27,403 1,560 Ford Motor Co. .................... 24,531 653 Union Pacific Corp. ............... 37,215 434 USFreightways Corp. ............... 13,634 ---------- 192,733 ---------- UTILITIES -- 8.7% +848 Constellation Energy Group, Inc. ............................. 22,504 289 Dominion Resources, Inc. .......... 17,375 170 Dynegy Inc., Class A............... 4,345 880 El Paso Corp. ..................... 39,239 1,111 Exelon Corp. ...................... 53,200 811 FirstEnergy Corp. ................. 28,362 870 FPL Group, Inc. ................... 49,062 820 Pinnacle West Capital Corp. ....... 34,309 1,324 Waste Management, Inc. ............ 42,246 ---------- 290,642 ---------- Total common stocks................ $3,254,957 ========== PRINCIPAL AMOUNT - --------- EQUITY LINKED NOTES -- 0.4% MEDIA & ENTERTAINMENT -- 0.4% $ 160 Tribune Co. 2.00% due 01/15/29................ $ 13,891 ---------- Total equity linked notes.......... $ 13,891 ==========
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- SHORT-TERM SECURITIES -- 1.6% REPURCHASE AGREEMENT -- 1.6% $53,371 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02............... $ 53,371 ---------- Total short-term securities........ $ 53,371 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $3,115,035)......................... 97.3% $3,254,957 Total equity linked securities (cost 29,741)............................. 0.4 13,891 Total short-term securities (cost $53,371)............................ 1.6 53,371 ----- ---------- Total investment in securities (total cost $3,198,147).................... 99.3 3,322,219 Cash, receivables and other assets.... 0.9 30,149 Securities lending collateral (See Note 2(i)).......................... 2.4 80,718 Payable for securities purchased...... (0.2) (7,595) Payable for Fund shares redeemed...... (0.0) (1) Securities lending collateral payable to brokers (See Note 2(i)).......... (2.4) (80,718) Other liabilities..................... (0.0) (151) ----- ---------- Net assets............................ 100.0% $3,344,621 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 4,000,000 shares authorized; 1,779,323 shares outstanding.......................... $ 177,932 Capital surplus............................... 2,886,556 Accumulated undistributed net investment income...................................... 2,031 Accumulated undistributed net realized gain on investments................................. 154,029 Unrealized appreciation of investments........ 124,072 Unrealized appreciation of other assets and liabilities in foreign currencies........... 1 ---------- Net assets.................................... $3,344,621 ==========
Class IA Net asset value per share ($3,190,773 / 1,697,427 shares outstanding) (3,500,000 shares authorized)................ $ 1.88 ====== Class IB Net asset value per share ($153,848 / 81,896 shares outstanding) (500,000 shares authorized).................................. $ 1.88 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 62 - -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET PRINCIPAL VALUE AMOUNT -------- -------- ASSET-BACKED SECURITIES ### -- 0.3% $ @1,000 AESOP Funding II LLC, Series 1997-1A, Class A2 (Aa) 6.40% due 10/20/03................ $ 1,022 -------- Total asset-backed securities...... $ 1,022 ======== COLLATERALIZED MORTGAGE OBLIGATIONS ### -- 2.9% $ 292 BMW Vehicle Lease Trust, Series 2000-A, Class A2 (AAA S&P) 6.65% due 02/25/03................ $ 293 600 Capital Auto Receivables Asset Trust, Series 2000-1, Class A4 (Aaa) 7.00% due 01/17/05................ 608 550 Carco Auto Loan Master Trust, Series 1999-1, Class A2 (AAA) 5.78% due 03/15/04................ 553 1,360 Citibank Credit Card Master Trust I, Series 1997-2, Class A (Aaa) 6.55% due 02/15/04................ 1,367 1,000 CS First Boston Mortgage Securities Corp., Series 1997-C1, Class A1B (AAA Fitch) 7.15% due 06/20/29................ 1,058 850 Discover Card Master Trust I, Series 1999-2, Class A (A-S&P) 5.90% due 10/15/04................ 859 138 First Security Auto Owner Trust, Series 2000-2, Class A2 (Aa) 6.80% due 08/15/03................ 139 @660 GS Mortgage Securities Corp. II, Series 2000-GSFL, Class A (AAA Fitch) 6.80% due 08/15/12................ 660 191 Harley-Davidson Eaglemark Motorcycle Trust, Series 1998-1, Class A2 (Aaa) 5.94% due 02/15/04................ 192 198 Harley-Davidson Eaglemark Motorcycle Trust, Series 2000-2, Class A1 (Aaa) 7.07% due 11/15/04................ 202 705 Holmes Financial PLC, Series 4, Class 1A (Aaa) 4.013% due 07/15/15............... 705 41 Honda Auto Lease Trust, Series 1999-A, Class A4 (Aaa) 6.45% due 09/16/02................ 41 660 Honda Auto Lease Trust, Series 1999-A, Class A5 (Aaa) 6.65% due 07/15/05................ 669 184 Honda Auto Receivables Owner Trust, Series 2000-01, Class A2 (Aaa) 6.65% due 12/16/02................ 185 600 Morgan Stanley Dean Witter Capital I, Series 2001-TOP3, Class A3 (Aaa) 6.20% due 07/15/33................ 610
MARKET PRINCIPAL VALUE AMOUNT -------- -------- $ 500 Nomura Asset Securities Corp., Series 1998-D6, Class A1B (Aaa) 6.59% due 03/15/30................ $ 521 520 Peoplefirst.com Auto Recievables Owner Trust, Series 2000-2, Class A3 (Aa1) 6.34% due 09/15/04................ 537 468 Toyota Auto Receivables Owner Trust, Series 2001-B, Class A2 (Aaa) 2.14% due 12/15/03................ 468 202 USAA Auto Loan Grantor Trust, Series 1999-1, Class A (A1) 6.10% due 02/15/06................ 207 -------- Total collateralized mortgage obligations....................... $ 9,874 ======== SHARES -------- COMMON STOCKS -- 59.3% APPAREL & TEXTILE -- 0.7% 31 Adidas AG.......................... 2,337 -------- BANKS -- 6.7% +37 Banco Popular Espanol S.A.......... 1,223 21 Bank of America Corp............... 1,328 13 Bank One Corp...................... 508 41 Banque Nationale de Paris (BNP).... 3,637 95 Bayerische Vereinsbank AG.......... 2,873 103 Citigroup, Inc..................... 5,246 56 Credit Suisse Group................ 2,376 34 Deutsche Bank AG................... 2,422 107 Royal Bank of Scotland Group....... 2,592 19 State Street Corp.................. 977 -------- 23,182 -------- BUSINESS SERVICES -- 1.8% 335 Capita Group PLC................... 2,356 1,004 Rentokil Initial PLC............... 4,004 -------- 6,360 -------- COMMUNICATIONS -- 8.7% 686 Cable & Wireless PLC............... 3,291 *17 Comverse Technology, Inc........... 378 206 Deutsche Telekom AG................ 3,557 127 Koninklijke (Royal) KPN N.V........ 645 *@81 Koninklijke (Royal) KPN N.V........ 412 *509 mm02 PLC........................... 641 1 Nippon Telegraph & Telephone Corp.............................. 1,841 99 Nokia Oyj.......................... 2,564 +1,014 Olivetti S.p.A..................... 1,300 +91 SK Telecom Co., Ltd................ 1,967 731 Telefonaktiebolaget LM Ericcson, B Shares............................ 3,973 *63 Telefonica S.A..................... 841 3,326 Vodafone Group PLC................. 8,690 -------- 30,100 -------- COMPUTERS & OFFICE -- 3.5% *88 Cisco Systems, Inc................. 1,595 64 Compaq Computer Corp............... 626
The accompanying notes are an integral part of this financial statement. 63 - -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET VALUE SHARES -------- -------- COMMON STOCKS -- (CONTINUED) COMPUTERS & OFFICE -- (CONTINUED) *111 Dell Computer Corp................. $ 3,014 165 Hewlett-Packard Co................. 3,393 21 International Business Machines Corp.............................. 2,480 9 Minnesota Mining & Manufacturing Co................................ 1,111 -------- 12,219 -------- CONSUMER NON-DURABLES -- 4.9% 60 Avon Products, Inc................. 2,781 35 Colgate-Palmolive Co............... 2,004 111 Gillette Co. (The)................. 3,697 99 Mattel, Inc........................ 1,705 47 McKesson Corp...................... 1,769 16 Nintendo Co., Ltd.................. 2,714 27 Procter & Gamble Co. (The)......... 2,168 -------- 16,838 -------- DRUGS -- 6.1% 77 Abbott Laboratories................ 4,276 29 American Home Products Corp........ 1,761 94 AstraZeneca PLC.................... 4,236 37 Fujisawa Pharmaceutical Co., Ltd............................... 853 88 Pharmacia Corp..................... 3,745 166 Schering-Plough Corp............... 5,959 -------- 20,830 -------- ELECTRONICS -- 4.5% 85 General Electric Co................ 3,423 24 Murata Manufacturing Co., Ltd...... 1,409 21 Samsung Electronics Co., Ltd....... 4,564 87 Sony Corp.......................... 3,963 79 Texas Instruments, Inc............. 2,220 -------- 15,579 -------- ENERGY & SERVICES -- 3.5% 43 ExxonMobil Corp.................... 1,674 99 Schlumberger Ltd................... 5,446 27 TotalFinaElf S.A., B Shares........ 3,870 29 Transocean Sedco Forex, Inc........ 967 -------- 11,957 -------- FINANCIAL SERVICES -- 1.5% 26 Goldman Sachs Group, Inc. (The).... 2,430 50 Merrill Lynch & Co., Inc........... 2,580 -------- 5,010 -------- FOOD, BEVERAGE & TOBACCO -- 1.4% 12 Nestle S.A......................... 2,608 45 PepsiCo., Inc...................... 2,172 -------- 4,780 -------- FOREST & PAPER PRODUCTS -- 1.1% 37 International Paper Co............. 1,501 67 UPM-Kymmene Oyj.................... 2,219 -------- 3,720 -------- HEALTH SERVICES -- 0.5% 2 Serono S.A., Class B............... 1,718 --------
MARKET VALUE SHARES -------- -------- INSURANCE -- 1.6% 50 American International Group, Inc............................... $ 3,986 14 Marsh & McLennan Cos., Inc......... 1,526 -------- 5,512 -------- MEDIA & ENTERTAINMENT -- 1.0% *60 USA Networks, Inc.................. 1,628 *23 Viacom, Inc., Class B.............. 993 14 Vivendi S.A........................ 739 -------- 3,360 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.9% *42 Boston Scientific Corp............. 1,020 36 Johnson & Johnson.................. 2,139 -------- 3,159 -------- METALS, MINERALS & MINING -- 0.6% 41 Alcoa, Inc......................... 1,461 +51 Usinor Sacilor..................... 635 -------- 2,096 -------- RETAIL -- 4.9% *+9 eBay, Inc.......................... 609 1,367 Marks & Spencer PLC................ 7,261 11 Pinault-Printemps-Redoute S.A...... 1,390 *287 Staples, Inc....................... 5,373 39 Wal-Mart Stores, Inc............... 2,250 -------- 16,883 -------- RUBBER & PLASTICS PRODUCTS -- 0.5% 29 NIKE, Inc., Class B................ 1,620 -------- SOFTWARE & SERVICES -- 3.5% 26 First Data Corp.................... 2,055 *51 Microsoft Corp..................... 3,367 *105 Openwave Systems, Inc.............. 1,028 *191 Oracle Corp........................ 2,635 *231 Sun Microsystems, Inc.............. 2,844 -------- 11,929 -------- TRANSPORTATION -- 1.4% 364 British Airways PLC................ 1,041 *12 FedEx Corp......................... 607 16 Northrop Grumman Corp.............. 1,623 244 P&O Princess Cruises PLC........... 1,418 -------- 4,689 -------- Total common stocks................ $203,878 ======== PRINCIPAL AMOUNT I -------- CORPORATE NOTES ### -- 5.4% BANKS -- 0.8% GBP 500 Bank of America Corp. (Aa2) 6.125% due 12/16/10............... 724 900 Federal National Mortgage Association (Aaa) 6.25% due 05/15/29................ 898
The accompanying notes are an integral part of this financial statement. 64 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT I VALUE -------- -------- CORPORATE NOTES ### -- (CONTINUED) BANKS -- (CONTINUED) EUR 808 National Westminster Bank PLC (Aaa) 6.00% due 01/21/10................ $ 735 510 PNC Funding Corp. (A2) 2.45% due 08/01/03................ 510 -------- 2,867 -------- COMMUNICATIONS -- 0.6% @210 AT&T Corp. (A3) 8.00% due 11/15/31................ 220 300 AT&T Wireless Services, Inc. (Baa2) 7.875% due 03/01/11............... 321 @155 Singapore Telecommunications Ltd. (A2) 7.375% due 12/01/31............... 158 250 Sprint Capital Corp. (Baa1) 7.125% due 01/30/06............... 261 500 Telefonica Europe BV (A2) 7.75% due 09/15/10................ 531 650 Verizon Communications, Inc. (Aa2) 6.50% due 09/15/11................ 661 -------- 2,152 -------- COMPUTERS & OFFICE EQUIPMENT --0.3% 1,000 International Business Machines Corp. (A1) 3.464% due 09/26/02............... 891 -------- CONSTRUCTION -- 0.2% 700 Centex Corp. (Baa2) 7.875% due 02/01/11............... 713 -------- ENERGY & SERVICES -- 0.1% 450 Amerada Hess Corp. (Baa1) 7.30% due 08/15/31................ 453 -------- FINANCIAL SERVICES -- 1.0% @515 ERAC USA Finance Co. (Baa1) 7.35% due 06/15/08................ 514 600 Ford Motor Credit Co. (A2) 6.875% due 02/01/06............... 601 350 FPL Group Capital, Inc. (A2) 6.125% due 05/15/07............... 355 JPY M110,000 GE Financial Assurance (Aaa) 1.60% due 06/20/11................ 818 400 General Motors Acceptance Corp. (A2) 6.125% due 09/15/06............... 396 DEM 1,600 Toyota Motor Credit (Aaa) 4.75% due 06/17/05................ 729 -------- 3,413 -------- FOOD, BEVERAGE & TOBACCO -- 0.3% 300 ConAgra Foods, Inc. (Baa1) 6.00% due 09/15/06................ 307 525 ConAgra Foods, Inc. (Baa2) 7.40% due 09/15/04................ 564 @225 Tyson Foods, Inc. (Baa3) 7.25% due 10/01/06................ 233 -------- 1,104 --------
PRINCIPAL MARKET AMOUNT I VALUE -------- -------- FOREST & PAPER PRODUCTS -- 0.1% EUR 575 International Paper (Baa1) 5.375% due 08/11/06............... $ 504 -------- INSURANCE -- 0.5% 500 Ace Capital Trust II (A3) 9.70% due 04/01/30................ 593 500 Everest Reinsurance Group Ltd. (A3) 8.50% due 03/15/05................ 536 500 UNUMProvident Corp. (Baa1) 7.625% due 03/01/11............... 519 -------- 1,648 -------- MACHINERY -- 0.1% 200 Eaton Corp. (Baa1) 6.00% due 03/30/07................ 179 -------- MEDIA & ENTERTAINMENT -- 0.5% 500 Clear Channel Communications, Inc. (Baa1) 6.50% due 07/07/05......... 445 200 News America Holdings, Inc. (Baa3) 8.875% due 04/26/23............... 216 500 Reed Elsevier Capital (A3) 5.75% due 07/31/08................ 446 600 Viacom, Inc. (A3) 6.625% due 05/15/11............... 610 -------- 1,717 -------- REAL ESTATE -- 0.1% 325 EOP Operating LP (Baa1) 7.00% due 07/15/11................ 327 -------- SOFTWARE & SERVICES -- 0.2% 500 AOL Time Warner, Inc. (Baa1) 7.625% due 04/15/31............... 529 -------- TRANSPORTATION -- 0.5% 500 Delta Air Lines, Inc. (A3) 7.57% due 11/18/10................ 495 725 Ford Motor Co. (A3) 6.375% due 02/01/29............... 582 @250 Roadway Corp. (Baa3) 8.25% due 12/01/08................ 250 499 US Airways, Inc. (Aaa) 7.076% due 03/20/21............... 500 -------- 1,827 UTILITIES -- 0.1% 125 NSTAR (A2) 8.00% due 02/15/10................ 132 150 US West Capital Funding, Inc. (Baa1) 6.875% due 07/15/28........ 130 -------- 262 -------- Total corporate notes.............. $ 18,586 ======== FOREIGN/YANKEE BONDS & NOTES ### -- 14.5% FOREIGN CORPORATIONS -- 1.9% EUR 500 Abitibi-Consolidated, Inc. (Baa3) 8.85% due 08/01/30................ 520
The accompanying notes are an integral part of this financial statement. 65 - -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT I VALUE -------- -------- FOREIGN/YANKEE BONDS & NOTES ### -- (CONTINUED) FOREIGN CORPORATIONS -- (CONTINUED) 500 Alcan, Inc. (A2) 7.25% due 03/15/31................ $ 522 DEM 1,700 BA Credit Card Corp. (A2) 6.00% due 10/15/03................ 790 500 Commonwealth Bank Australia (A1) 8.50% due 06/01/10................ 574 GBP **250 France Telecom S.A. (Aaa) 7.50% due 03/14/11................ 385 DEM 800 Lloyds TSB Bank PLC (Aa1) 5.25% due 07/14/08................ 362 1,000 National Australia Bank (Aaa) 3.595% due 02/12/02............... 1,000 300 National Australia Bank (A1) 8.60% due 05/19/10................ 344 @175 Norske Skogindustrier ASA (Baa3) 7.625% due 10/15/11............... 177 175 Potash Corp. Saskatchewan (Baa2) 7.75% due 05/31/11................ 185 EUR 150 Sealed Air Finance II BV (Baa3) 5.625% due 07/19/06............... 118 300 Stora Enso Oyj (Baa1) 7.375% due 05/15/11............... 316 700 Unicredito Italiano S.p.A (Aaa) 6.00% due 03/16/11................ 627 800 Unilever N.V. (A1) 4.75% due 06/07/04................ 722 -------- 6,642 -------- FOREIGN GOVERNMENTS -- 12.6% AUD 2,895 Australian Government (Aaa) 6.50% due 05/15/13................ 1,600 EUR 1,225 Buoni Poliennali Del Tes (Aa3) 6.50% due 11/01/27................ 1,235 CAD 310 Canada Government (Aa1) 5.75% due 06/01/29................ 197 DKK 10,000 Denmark Kingdom (Aaa) 7.00% due 12/15/04................ 1,280 EUR 4,200 Deutschland Republic (Aaa) 3.75% due 08/26/03................ 3,752 EUR 6,610 Deutschland Republic (Aaa) 5.25% due 01/04/11................ 6,021 EUR 1,100 Deutschland Republic (Aaa) 6.00% due 07/04/07................ 1,046 EUR 1,375 Deutschland Republic (Aaa) 6.50% due 07/04/27................ 1,409 EUR 2,525 France O.A.T. (Aaa) 5.25% due 04/25/08................ 2,310 EUR 180 France O.A.T. (Aaa) 5.50% due 04/25/07................ 167 GBP 381 Iceland Republic (Aaa) 8.75% due 05/12/03................ 581 JPY 802,700 Japan Series 213 (Aa3) 1.40% due 06/22/09................ 6,303 JPY 163,000 Japan Series 227 (Aa3) 1.60% due 03/21/11................ 1,280
PRINCIPAL MARKET AMOUNT I VALUE -------- -------- FOREIGN GOVERNMENTS -- (CONTINUED) JPY 376,000 Japan Series 195 (Aa3) 2.40% due 06/20/07................ $ 3,145 NZD 1,270 New Zealand Government (Aaa) 6.00% due 11/15/11................ 497 NZD 1,720 New Zealand Government (Aaa) 8.00% due 11/15/06................ 765 SGD 1,430 Singapore Government (Aaa) 4.00% due 03/01/07................ 796 SEK 99,000 Sweden Kingdom (Aaa) 3.50% due 04/20/06................ 8,925 GBP 900 U.K. Treasury Gilt (Aaa) 4.25% due 06/07/32................ 1,221 GBP 375 U.K. Treasury Gilt (Aaa) 7.50% due 12/07/06................ 603 -------- 43,133 -------- Total foreign/yankee bonds & notes............................. $ 49,775 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 8.0% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.5% $ 1,710 6.845% due 03/01/30................ 1,760 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.5% 715 6.00% due 01/25/31................. 699 1,292 6.113% due 05/01/11................ 1,298 1,013 6.295% due 06/01/09................ 1,048 4,156 7.00% due 02/01/15 -- 02/01/29..... 4,302 1,137 7.50% due 01/01/30 -- 05/01/31..... 1,174 -------- 8,521 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.2% 9,063 7.50% due 11/15/27 -- 06/15/31..... 9,403 1,498 8.00% due 05/15/29 -- 09/15/30..... 1,569 -------- 10,972 -------- U.S. TREASURY BONDS -- 0.2% 580 7.25% due 05/15/16................. 671 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 1.5% 5,215 3.625% due 07/15/02................ 5,263 -------- U.S. TREASURY NOTES -- 0.1% 400 5.00% due 08/15/11................. 399 -------- Total U.S. treasuries & federal agencies.......................... $ 27,586 ======== SHORT-TERM SECURITIES -- 8.4% REPURCHASE AGREEMENT -- 8.2% 28,211 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02............... 28,211 -------- U.S. TREASURY BILLS -- 0.2% 500 2.00% due 01/31/02................. 499 -------- Total short-term securities........ $ 28,710 ========
The accompanying notes are an integral part of this financial statement. 66 - --------------------------------------------------------------------------------
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securities(cost $998)................................. 0.3% $ 1,022 Total collateralized mortgage obligations (cost $9,792)............. 2.9 9,874 Total common stocks (cost $189,096)..... 59.3 203,878 Total corporate notes (cost $18,535).... 5.4 18,586 Total foreign/yankee bonds & notes (cost $50,911).............................. 14.5 49,775 Total U.S. treasuries & federal agencies (cost $27,490)........................ 8.0 27,586 Total short-term securities (cost $28,710).............................. 8.4 28,710 ----- -------- Total investment in securities (total cost $325,532)........................ 98.8 339,431 Cash, receivables and other assets...... 2.3 8,013 Securities lending collateral (See Note 2(i))................................. 1.3 4,596 Payable for securities purchased........ (0.6) (2,198) Payable for Fund shares redeemed........ (0.0) (16) Securities lending collateral payable to brokers (See Note 2(i))............... (1.3) (4,596) Other liabilities....................... (0.5) (1,481) ----- -------- Net assets.............................. 100.0% $343,749 ===== ========
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $3,646 or 1.1% of net assets. M Private placement. ** Securities contain some restriction as to public resale. At December 31, 2001, the market value of these securities amounted to $385 or 0.1% of net assets. I All principle amounts are in U.S. dollars unless otherwise indicated.
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 750,000 shares authorized; 341,477 shares outstanding.................................. $ 34,148 Capital surplus................................ 350,392 Distribution in excess of net investment income....................................... (658) Accumulated net realized loss on investments... (54,398) Unrealized appreciation of investments......... 13,899 Unrealized appreciation of futures contracts ***.......................................... 6 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@........ 670 Unrealized depreciation of other assets and liabilities in foreign currencies............ (294) Unrealized depreciation of option contracts written (See Note 2(f))@@@@.................. (16) -------- Net assets..................................... $343,749 ======== Class IA Net asset value per share ($331,784 / 329,571 shares outstanding) (562,500 shares authorized)................................ $ 1.01 ======== Class IB Net asset value per share ($11,965 / 11,906 shares outstanding) (187,500 shares authorized)................................ $ 1.00 ========
### The ratings associated with the corresponding bond holdings were obtained from Moody's as of December 31, 2001, unless another source is noted for a particular security. The bond ratings are unaudited. *** The fund had 10 Short March 2002 10 Year U.S. Treasury Note futures contracts, 166 Long March 2002 5 Year U.S. Treasury Note futures contracts, 16 Short March 2002 2 Year U.S. Treasury Note futures contracts, 36 Long March 2002 Eurex Deutschland Euro Schatz futures contracts open as of December 31, 2001. These contracts had a market value of $13,155 as of December 31, 2001, and were collateralized by various U.S. Treasury obligations with a market value of $499.
@@@@ OPTION CONTRACTS AT DECEMBER 31, 2001
NUMBER OF EXERCISE EXPIRATION MARKET CONTRACTS PRICE DATE VALUE DESCRIPTION --------- -------- ---------- ------ ----------- Japanese Yen (Purchased Put)/U.S. Dollars 1,200 $128.0 June 2002 $ 48 Australian Dollars (Written Put) / U.S. Dollars 1,200 0.5 June 2002 (21) US Treasury Note (Written Put) 7,080 93.7 March 2002 (28) ----- ------ Total option contracts (total net premium paid $(15)) 9,480 $ (1) ===== ======
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- ----------- Australian Dollar (Buy) $ 41 $ 41 01/16/02 $ -- Australian Dollar (Buy) 702 708 01/16/02 (6) Australian Dollar (Buy) 1,148 1,169 01/16/02 (21) Australian Dollar (Sell) 505 511 01/15/02 6 Australian Dollar (Sell) 2,274 2,300 01/16/02 26 Australian Dollar (Sell) 669 678 01/16/02 9 British Pound (Buy) 185 185 01/02/02 --
The accompanying notes are an integral part of this financial statement. 67 - -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
UNREALIZED CONTRACT DELIVERY APPRECIATION MARKET VALUE AMOUNT DATE (DEPRECIATION) DESCRIPTION ------------ -------- -------- -------------- ----------- British Pound (Buy) $ 76 $ 76 01/03/02 $ -- British Pound (Buy) 113 113 01/04/02 -- British Pound (Buy) 203 203 01/28/02 -- British Pound (Sell) 2,219 2,202 01/28/02 (17) British Pound (Sell) 1,522 1,511 01/28/02 (11) Canadian Dollar (Sell) 244 246 01/18/02 2 Danish Krone (Sell) 1,218 1,203 01/18/02 (15) EURO (Buy) 11,322 11,246 01/17/02 76 EURO (Buy) 838 831 01/17/02 7 EURO (Buy) 51 51 01/17/02 -- EURO (Buy) 931 924 01/17/02 7 EURO (Buy) 6,530 6,479 01/17/02 51 EURO (Buy) 404 400 01/17/02 4 EURO (Buy) 294 294 01/17/02 -- EURO (Sell) 403 400 01/08/02 (3) EURO (Sell) 35,686 35,394 01/17/02 (292) EURO (Sell) 1,345 1,349 01/17/02 4 EURO (Sell) 873 870 01/17/02 (3) EURO (Sell) 14 14 01/17/02 -- EURO (Sell) 25 25 01/17/02 -- EURO (Sell) 2,418 2,422 01/17/02 4 EURO (Sell) 4 4 01/17/02 -- EURO (Sell) 19 19 01/17/02 -- EURO (Sell) 446 452 01/17/02 6 EURO (Sell) 820 811 01/17/02 (9) Japanese Yen (Buy) 380 380 01/08/02 -- Japanese Yen (Buy) 565 590 01/15/02 (25) Japanese Yen (Buy) 1,680 1,754 01/15/02 (74) Japanese Yen (Buy) 948 951 01/15/02 (3) Japanese Yen (Buy) 129 130 01/15/02 (1) Japanese Yen (Sell) 792 796 01/04/02 4 Japanese Yen (Sell) 952 951 01/09/02 (1) Japanese Yen (Sell) 2,256 2,416 01/15/02 160 Japanese Yen (Sell) 2,555 2,738 01/15/02 183 Japanese Yen (Sell) 7,470 8,004 01/15/02 534 Japanese Yen (Sell) 228 244 01/15/02 16 Japanese Yen (Sell) 383 405 01/15/02 22 Japanese Yen (Sell) 1,434 1,497 01/15/02 63 Japanese Yen (Sell) 378 379 01/15/02 1 New Zealand Dollar (Buy) 180 179 01/23/02 1 New Zealand Dollar (Buy) 858 863 01/23/02 (5) New Zealand Dollar (Buy) 116 117 01/23/02 (1) New Zealand Dollar (Sell) 2,425 2,427 01/23/02 2 Norwegian Krone (Buy) 1,218 1,216 01/30/02 2 Norwegian Krone (Sell) 258 258 01/30/02 -- Singapore Dollar (Buy) 46 47 01/09/02 (1) Singapore Dollar (Buy) 553 562 01/09/02 (9) Singapore Dollar (Buy) 356 360 01/09/02 (4) Singapore Dollar (Sell) 336 338 01/09/02 2 Singapore Dollar (Sell) 585 589 01/09/02 4 Singapore Dollar (Sell) 810 817 01/09/02 7 Swedish Krona (Sell) 9,362 9,320 01/11/02 (42) Swiss Franc (Buy) 821 811 01/22/02 10 Swiss Franc (Sell) 820 817 01/22/02 (3) Swiss Franc (Sell) 961 964 01/22/02 3 ------ $ 670 ======
The accompanying notes are an integral part of this financial statement. 68 - -------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- ASSET-BACKED SECURITIES### -- 0.4% $ @43,000 AESOP Funding II LLC, Series 1998-1, Class A (Aa) 6.14% due 05/20/06............. $ 44,631 ----------- Total asset-backed securities... $ 44,631 =========== COLLATERALIZED MORTGAGE OBLIGATIONS### -- 0.7% 17,200 Asset Securitization Corp., Series 1997-D5, Class A1E (AAA Fitch) 6.93% due 02/14/43...... 17,605 18,000 Asset Securitization Corp., Series 1997-D4, Class A1D (Aaa) 7.49% due 04/14/29............. 19,395 25,000 Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2 (Aaa) 7.37% due 06/19/29................... 26,796 17,225 First Union -- Lehman Brothers Commercial Mortgage Trust, Series 1997-C1, Class A3 (Aaa) 7.38% due 04/18/07............. 18,495 ----------- Total collateralized mortgage obligations.................... $ 82,291 ===========
SHARES - ----------- COMMON STOCKS -- 66.4% AEROSPACE & DEFENSE -- 0.5% *3,700 General Motors Corp., Class H... $ 57,165 -----------
BANKS -- 7.3% 2,900 American Express Co. ........... 103,501 2,350 Bank One Corp. ................. 91,768 5,054 Citigroup, Inc. ................ 255,139 2,100 Fleet Boston Financial Corp. ... 76,650 3,650 Morgan (J.P.) Chase & Co. ...... 132,678 3,200 State Street Corp. ............. 167,200 3,600 U.S. Bancorp.................... 75,348 ----------- 902,284 ----------- BUSINESS SERVICES -- 0.4% *1,809 Accenture Ltd. ................. 48,693 ----------- CHEMICALS -- 0.8% 3,000 Dow Chemical Co. (The).......... 101,340 ----------- COMMUNICATIONS -- 2.3% 2,975 SBC Communications, Inc. ....... 116,531 1,800 Verizon Communications, Inc. ... 85,428 *6,000 WorldCom, Inc. -- WorldCom Group.......................... 84,480 ----------- 286,439 ----------- COMPUTERS & OFFICE EQUIPMENT -- 4.1% *6,676 Cisco Systems, Inc. ............ 120,908 9,545 Compaq Computer Corp. .......... 93,157
MARKET SHARES VALUE - ----------- ----------- COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED) *3,315 EMC Corp. ...................... $ 44,554 1,640 International Business Machines Corp. ......................... 198,374 *+4,230 Solectron Corp. ................ 47,714 ----------- 504,707 ----------- CONSUMER NON-DURABLES -- 3.2% +1,200 Estee Lauder Cos., Inc. (The), Class A........................ 38,472 1,500 Gillette Co. (The).............. 50,100 *4,035 Safeway, Inc. .................. 168,474 +2,400 Tyco International Ltd. ........ 141,360 ----------- 398,406 ----------- DRUGS -- 7.6% 2,485 Abbott Laboratories............. 138,539 2,500 American Home Products Corp. ... 153,400 *500 Amgen, Inc. .................... 28,220 2,308 Bristol-Myers Squibb Co. ....... 117,708 2,120 Merck & Co., Inc. .............. 124,656 3,825 Pfizer, Inc. ................... 152,423 2,204 Pharmacia Corp. ................ 94,001 3,679 Schering-Plough Corp. .......... 131,727 ----------- 940,674 ----------- ELECTRONICS -- 4.8% 1,416 Emerson Electric Co. ........... 80,859 6,006 General Electric Co. ........... 240,720 5,308 Intel Corp. .................... 166,930 *+1,450 Micron Technology, Inc. ........ 44,950 1,916 Texas Instruments, Inc. ........ 53,654 ----------- 587,113 ----------- ENERGY & SERVICES -- 4.3% 1,497 Anadarko Petroleum Corp. ....... 85,104 900 ChevronTexaco Corp. ............ 80,649 6,500 ExxonMobil Corp. ............... 255,450 1,859 Schlumberger Ltd. .............. 102,158 ----------- 523,361 ----------- FINANCIAL SERVICES -- 2.1% 3,050 Franklin Resources, Inc. ....... 107,574 +200 Goldman Sachs Group, Inc. (The).......................... 18,550 +2,500 Merrill Lynch & Co., Inc. ...... 130,300 ----------- 256,424 ----------- FOOD, BEVERAGE & TOBACCO -- 1.8% 1,600 Coca-Cola Co. (The)............. 75,440 2,900 PepsiCo., Inc. ................. 141,201 ----------- 216,641 ----------- FOREST & PAPER PRODUCTS -- 1.7% 1,200 International Paper Co. ........ 48,420 2,038 Kimberly-Clark Corp. ........... 121,884 800 Weyerhaeuser Co. ............... 43,264 ----------- 213,568 -----------
The accompanying notes are an integral part of this financial statement. 69 - -------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET SHARES VALUE - ----------- ----------- COMMON STOCKS -- (CONTINUED) HEALTH SERVICES -- 0.7% 2,300 HCA, Inc. ...................... $ 88,642 ----------- HOTELS & GAMING -- 0.1% 383 Marriott International, Inc., Class A........................ 15,581 ----------- INSURANCE -- 3.1% 2,376 American International Group, Inc. .......................... 188,646 1,825 Marsh & McLennan Cos., Inc. .... 196,096 ----------- 384,742 ----------- MACHINERY -- 0.7% 1,312 United Technologies Corp. ...... 84,814 ----------- MEDIA & ENTERTAINMENT -- 3.1% 2,780 Gannett Co., Inc. .............. 186,899 *7,046 Liberty Media Corp., Class A.... 98,644 *2,250 Viacom, Inc., Class B........... 99,338 ----------- 384,881 ----------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.2% 2,455 Johnson & Johnson............... 145,079 ----------- METALS, MINERALS & MINING -- 1.6% 3,500 Alcoa, Inc. .................... 124,425 1,150 Illinois Tool Works, Inc. ...... 77,878 ----------- 202,303 ----------- RETAIL -- 3.9% 3,464 CVS Corp. ...................... 102,528 3,220 Home Depot, Inc. (The).......... 164,252 3,810 Wal-Mart Stores, Inc. .......... 219,266 ----------- 486,046 ----------- RUBBER & PLASTICS PRODUCTS -- 0.1% 200 NIKE, Inc., Class B............. 11,248 ----------- SOFTWARE & SERVICES -- 6.5% *6,200 AOL Time Warner, Inc. .......... 199,020 2,000 Automatic Data Processing, Inc. .......................... 117,800 *+1,077 Computer Sciences Corp. ........ 52,766 *5,100 Microsoft Corp. ................ 337,977 *6,800 Oracle Corp. ................... 93,908 ----------- 801,471 ----------- TRANSPORTATION -- 1.2% 2,336 Boeing Co. (The)................ 90,594 *1,200 FedEx Corp. .................... 62,256 ----------- 152,850 ----------- UTILITIES -- 3.3% +2,491 Duke Energy Corp. .............. 97,801 2,496 El Paso Corp. .................. 111,324 2,185 Exelon Corp. ................... 104,594 1,632 FPL Group, Inc. ................ 92,056 ----------- 405,775 ----------- Total common stocks............. $ 8,200,247 ===========
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- CORPORATE NOTES ### -- $16.3% BANKS -- 1.5% $ 12,035 American Express Co. (A1) 6.875% due 11/01/05................... $ 12,730 20,000 Bank of America Corp. (Aa2) 5.875% due 02/15/09............ 19,899 40,000 Bank One Corp. (Aa3) 6.875% due 08/01/06....................... 42,503 10,000 BankBoston Corp. (A2) 6.625% due 02/01/04....................... 10,525 25,000 Bayerische Landesbank Girozentrale (NY) (Aaa) 5.65% due 02/01/09................... 24,396 10,000 Citigroup, Inc. (Aa1) 6.25% due 12/01/05....................... 10,452 13,685 First Union National Bank (A1) 5.80% due 12/01/08............. 13,480 36,745 Key Bank N.A. (A1) 5.80% due 04/01/04....................... 37,785 14,825 Popular, Inc. (Baa1) 6.75% due 12/15/05....................... 15,017 ----------- 186,787 ----------- CHEMICALS -- 0.7% 20,000 ICI Wilmington, Inc. (Baa2) 6.95% due 09/15/04............. 20,337 25,000 Praxair, Inc. (A3) 6.15% due 04/15/03....................... 25,747 40,000 Rohm & Haas Co. (A3) 7.40% due 07/15/09....................... 43,368 ----------- 89,452 ----------- COMMUNICATIONS -- 1.0% @33,845 AT&T Corp. (A3) 8.00% due 11/15/31....................... 35,421 10,000 Bellsouth Telecommunications, Inc. (Aa2) 6.375% due 06/01/28....................... 9,659 30,000 Comcast Cable Communications (Baa2) 6.875% due 06/15/09..... 30,325 16,580 Motorola, Inc. (A3) 7.60% due 01/01/07....................... 16,470 30,000 WorldCom, Inc. (A3) 6.40% due 08/15/05....................... 30,313 ----------- 122,188 ----------- COMPUTERS & OFFICE EQUIPMENT -- 0.8% 50,000 Hewlett-Packard Co. (A2) 7.15% due 06/15/05................... 52,676 30,000 International Business Machines Corp. (A1) 6.50% due 01/15/28....................... 29,750 18,000 Pitney Bowes, Inc. (Aa3) 5.50% due 04/15/04................... 18,621 ----------- 101,047 -----------
The accompanying notes are an integral part of this financial statement. 70 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- CORPORATE NOTES ### -- (CONTINUED) CONSUMER NON-DURABLES -- 0.8% $ 25,000 Alberto-Culver Co. (Baa1) 8.25% due 11/01/05................... $ 26,852 25,000 Boise Cascade Office Products Corp. (Baa3) 7.05% due 05/15/05....................... 24,949 18,000 Colgate-Palmolive Co. (Aa3) 5.58% due 11/06/08............. 18,100 21,100 Procter & Gamble Co. (The) (Aa3) 9.36% due 01/01/21............. 26,926 ----------- 96,827 ----------- CONSUMER SERVICES -- 0.4% 39,332 Postal Square LP (AAA S&P) 8.95% due 06/15/22................... 46,152 ----------- DRUGS -- 0.5% 26,000 American Home Products Corp. (A3) 7.25% due 03/01/23.............. 26,682 29,000 Pharmacia Corp. (A1) 6.60% due 12/01/28....................... 29,292 10,000 Zeneca Wilmington, Inc. (Aa2) 6.30% due 06/15/03............. 10,437 ----------- 66,411 ----------- EDUCATION -- 0.1% 10,900 Harvard University (AAA S&P) 8.125% due 04/15/07............ 12,141 ----------- ELECTRICAL EQUIPMENT -- 0.5% 30,000 Danaher Corp. (A2) 6.00% due 10/15/08....................... 29,628 30,000 Rockwell International Corp. (A3) 6.70% due 01/15/28........ 26,994 ----------- 56,622 ----------- ENERGY & SERVICES -- 0.1% 12,250 Amoco Co. (Aa1) 6.50% due 08/01/07....................... 12,920 ----------- FINANCIAL SERVICES -- 1.1% 25,000 Associates Corp. of North America (Aa1) 6.00% due 07/15/05....................... 25,903 30,000 Equitable Cos. (The) (A2) 7.00% due 04/01/28................... 29,559 @16,355 ERAC USA Finance Co. (Baa1) 7.35% due 06/15/08............. 16,317 35,000 General Motors Acceptance Corp. (A2) 8.00% due 11/01/31.............. 35,622 30,000 Toyota Motor Credit Corp. (Aa1) 5.50% due 12/15/08............. 29,642 ----------- 137,043 ----------- FOOD, BEVERAGE & TOBACCO -- 0.7% 30,000 Coca-Cola Enterprises, Inc. (A2) 6.75% due 09/15/28............. 30,405 19,555 ConAgra Foods, Inc. (Baa1) 7.875% due 09/15/10............ 21,387 35,000 PepsiAmericas, Inc. (Baa1) 6.375% due 05/01/09............ 34,919 ----------- 86,711 -----------
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- INSURANCE -- 2.7% $ 40,000 ACE INA Holdings (A2) 8.30% due 08/15/06....................... $ 43,317 30,000 Allmerica Financial Corp. (A2) 7.625% due 10/15/25............ 28,754 24,000 Allstate Corp. (The) (A1) 6.75% due 06/15/03................... 25,211 26,485 AmerUs Group Co. (Baa3) 6.95% due 06/15/05................... 26,612 15,740 CIGNA Corp. (A3) 7.40% due 05/15/07....................... 16,735 30,000 Cincinnati Financial Corp. (A2) 6.90% due 05/15/28............. 27,355 10,000 Fairfax Financial Holdings (Ba2) 7.75% due 12/15/03............. 9,040 @27,000 Jackson National Life Insurance Co. (A2) 8.15% due 03/15/27.... 28,867 @30,000 Liberty Mutual Insurance (Baa1) 8.20% due 05/04/07............. 31,741 @10,000 Lumbermens Mutual Casualty (Baa1) 9.15% due 07/01/26.............. 9,252 @30,000 New England Mutual Life Insur- ance Co. (A1) 7.875% due 02/15/24....................... 30,737 27,600 Torchmark Corp. (Baa1) 8.25% due 08/15/09....................... 28,875 29,000 UnitedHealth Group, Inc. (A3) 6.60% due 12/01/03............. 30,295 ----------- 336,791 ----------- MACHINERY -- 0.6% 50,000 Eaton Corp. (A2) 6.95% due 11/15/04....................... 53,457 25,000 Parker Hannifin Corp. (A2) 5.65% due 09/15/03................... 25,705 ----------- 79,162 ----------- MEDIA & ENTERTAINMENT -- 0.2% 10,400 Times Mirror Co. (The), Class A (A2) 7.50% due 07/01/23.............. 9,989 9,260 Viacom, Inc. (A3) 6.40% due 01/30/06....................... 9,554 ----------- 19,543 ----------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.2% 22,000 Becton, Dickinson & Co. (A2) 6.70% due 08/01/28............. 21,028 -----------
The accompanying notes are an integral part of this financial statement. 71 - -------------------------------------------------------------------------------- HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- CORPORATE NOTES ### -- (CONTINUED) REAL ESTATE -- 0.1% $ 20,000 Liberty Property Trust (REIT) (Baa2) 7.25% due 08/15/07...... $ 20,647 ----------- RETAIL -- 1.4% 40,000 Albertson's, Inc. (Baa1) 6.55% due 08/01/04................... 42,022 50,000 Home Depot, Inc. (The) (Aa3) 6.50% due 09/15/04............. 52,920 20,200 Target Corp. (A2) 5.875% due 11/01/08....................... 20,548 50,000 Wal-Mart Stores, Inc. (Aa2) 6.875% due 08/10/09............ 54,034 ----------- 169,524 ----------- SOFTWARE & SERVICES -- 0.2% 25,000 Computer Associates International, Inc. (Baa1) 6.50% due 04/15/08............. 23,932 ----------- TRANSPORTATION -- 1.0% 21,514 Continental Airlines, Inc. (Baa1) 6.90% due 01/02/18...... 18,909 30,000 DaimlerChrysler North America Holding Corp. (A3) 7.125% due 04/10/03....................... 31,021 30,000 DaimlerChrysler North America Holding Corp. (A3) 7.75% due 05/27/03....................... 31,331 +20,000 Dana Corp. (Ba1) 6.25% due 03/01/04....................... 18,241 35,000 Ford Motor Co. (A3) 6.625% due 10/01/28....................... 29,031 ----------- 128,533 ----------- UTILITIES -- 1.7% 45,000 Alabama Power Co. (A2) 7.125% due 08/15/04................... 47,691 21,350 Duke Energy Corp. (A1) 6.00% due 12/01/28....................... 18,735 40,000 Great Plains Energy, Inc. (A2) 7.125% due 12/15/05............ 41,613 17,285 Northern Border Pipeline Co. (A3) 7.75% due 09/01/09........ 17,555 10,000 Southern California Gas Co. (A2) 5.75% due 11/15/03............. 10,265 50,000 Tennessee Valley Authority (Aa1) 6.00% due 03/15/13............. 50,152 20,000 Williams Cos., Inc. (The) (Baa2) 6.50% due 11/15/02............. 20,446 ----------- 206,457 ----------- Total corporate notes........... $ 2,019,918 ===========
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- FOREIGN/YANKEE BONDS & NOTES ### -- 1.6% FOREIGN CORPORATIONS -- 1.5% $ 30,000 Alcan, Inc. (A2) 7.25% due 11/01/28....................... $ 31,387 30,000 Apache Finance Property Ltd. (A3) 7.00% due 03/15/09........ 31,360 15,000 Husky Oil Ltd. (Baa2) 6.875% due 11/15/03....................... 15,655 15,000 Hydro-Quebec (A1) 7.375% due 02/01/03....................... 15,599 24,000 Natexis Banques Populaires (A1) 7.00% due 11/14/05............. 25,210 @20,000 SCL Terminal Aereo Santiago S.A. (Aaa) 6.95% due 07/01/12....... 19,877 43,000 TXU Eastern Funding Co. (Baa1) 6.45% due 05/15/05............. 43,507 ----------- 182,595 ----------- FOREIGN GOVERNMENTS -- 0.1% 10,000 City of Naples Italy (Aa3) 7.52% due 07/15/06................... 10,620 ----------- Total foreign/yankee bonds & notes.......................... $ 193,215 =========== MUNICIPAL BONDS ### -- 0.1% $ 7,000 Miami Beach, Florida (Baa1) 8.80% due 12/01/15............. $ 7,558 5,285 Mount Sinai School of Medicine (NY) (Aaa) 6.00% due 07/01/03.. 5,450 ----------- 13,008 ----------- Total municipal bonds........... $ 13,008 =========== U.S. TREASURIES & FEDERAL AGENCIES -- 13.2% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.4% $ 49,604 6.978% due 10/01/10............. $ 52,084 ----------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 1.2% 61,699 6.00% due 06/15/24 -- 03/15/29.. 60,699 42,265 6.50% due 03/15/26 -- 06/15/28.. 42,509 47,224 8.00% due 09/15/26 -- 02/15/31.. 49,452 436 9.00% due 06/20/16 -- 07/20/16.. 476 ----------- 153,136 ----------- U.S. TREASURY BONDS -- 9.5% +250,000 5.75% due 04/30/03.............. 261,035 +175,000 6.00% due 08/15/09.............. 186,560 +480,000 6.25% due 08/15/23.............. 508,122 +100,000 6.50% due 08/15/05.............. 108,309 +100,000 7.25% due 08/15/04.............. 109,199 ----------- 1,173,225 -----------
The accompanying notes are an integral part of this financial statement. 72 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ----------- ----------- U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) U.S. TREASURY NOTES -- 2.1% $ +100,000 5.00% due 02/15/11.............. $ 99,695 +150,000 5.75% due 08/15/10.............. 157,465 ----------- 257,160 ----------- Total U.S. treasuries & federal agencies....................... $ 1,635,605 =========== SHORT-TERM SECURITIES -- 0.7% REPURCHASE AGREEMENT -- 0.7% $ 92,045 Joint Repurchase Agreement (See Note 2(d)) 1.677% due 01/02/02............ $ 92,045 ----------- Total short-term securities..... $ 92,045 ===========
DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $42,834)........................... 0.4% $ 44,631 Total collateralized mortgage obligations (cost $78,092)......... 0.7 82,291 Total common stocks (cost $7,271,935)........................ 66.4 8,200,247 Total corporate notes (cost $2,002,672)........................ 16.3 2,019,918 Total foreign/yankee bonds & notes (cost $186,247).................... 1.6 193,215 Total municipal bonds (cost $12,571)........................... 0.1 13,008 Total U.S. treasuries & federal agencies (cost $1,571,247)......... 13.2 1,635,605 Total short-term securities (cost $92,045)........................... 0.7 92,045 ----- ----------- Total investment in securities (total cost $11,257,643)........... 99.4 12,280,960 Cash, receivables and other assets... 0.6 78,501 Securities lending collateral (See Note 2(i)).................... 12.7 1,568,006 Payable for Fund shares redeemed..... (0.0) (1,062) Securities lending collateral payable to brokers (See Note 2(i))......... (12.7) (1,568,006) Other liabilities.................... (0.0) (630) ----- ----------- Net assets........................... 100.0% $12,357,769 ===== ===========
MARKET VALUE ----------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 7,000,000 shares authorized; 5,271,377 shares outstanding......................... $ 527,138 Capital surplus.............................. 10,894,420 Accumulated undistributed net investment income..................................... 218,556 Accumulated net realized loss on investments................................ (305,662) Unrealized appreciation of investments....... 1,023,317 ----------- Net assets................................... $12,357,769 ===========
Class IA Net asset value per share ($11,836,564 / 5,050,524 shares outstanding) (6,500,000 shares authorized).................. $ 2.34 ====== Class IB Net asset value per share ($521,205 / 220,853 shares outstanding) (500,000 shares authorized).................................... $ 2.36 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $216,843 or 1.8% of net assets. ### The ratings associated with the corresponding bond holdings were obtained from Moody's as of December 31, 2001, unless another source is noted for a particular security. The bond ratings are unaudited.
The accompanying notes are an integral part of this financial statement. 73 - -------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- CONVERTIBLE BONDS ### -- 0.4% UTILITIES -- 0.4% $ @550 Calpine Corp. (Ba1) 4.00% due 12/26/06................ $ 636 ---------- Total convertible bonds............ $ 636 ========== CORPORATE NOTES ### -- 78.0% AEROSPACE & DEFENSE -- 1.0% $ 550 Condor Systems, Inc. (Ca) 11.875% due 05/01/09.............. $ 138 1,525 Sequa Corp. (Ba3) 9.00% due 08/01/09................ 1,441 ---------- 1,579 ---------- BANKS -- 0.6% 150 Golden State Holdings, Inc. (Ba1) 7.125% due 08/01/05............... 150 780 Sovereign Bancorp, Inc. (Ba3) 8.625% due 03/15/04............... 817 ---------- 967 ---------- BUSINESS SERVICES -- 1.1% 1,120 Building One Services Corp. (B2) 10.50% due 05/01/09............... 728 +265 Integrated Electrical Services, Inc. (B2) 9.375% due 02/01/09............... 235 150 Interpool, Inc. (Ba3) 7.350% due 08/01/07............... 136 530 United Rentals (North America), Inc. (B1) 10.75% due 04/15/08............... 570 ---------- 1,669 ---------- CHEMICALS -- 6.3% 485 Airgas, Inc. (Ba1) 9.125% due 10/01/11............... 512 650 ARCO Chemical Co. (Ba3) 9.80% due 02/01/20................ 618 2,340 Equistar Chemicals LP (Ba2) 7.55% due 02/15/26................ 1,660 +500 Equistar Chemicals LP (Ba2) 8.75% due 02/15/09................ 482 740 Ferro Corp. (Baa3) 9.125% due 01/01/09............... 761 675 General Chemical Industrial Products, Inc. (B3) 10.625% due 05/01/09.............. 527 +585 Georgia Gulf Corp. (B2) 10.375% due 11/01/07.............. 611 +210 Huntsman ICI Chemicals LLC (B2) 10.125% due 07/01/09.............. 202 560 IMC Global, Inc. (Ba1) 11.25% due 06/01/11............... 596 795 Lyondell Chemical Co. (Ba3) 9.625% due 05/01/07............... 803
PRINCIPAL MARKET AMOUNT I VALUE - -------- ---------- CHEMICALS -- (CONTINUED) $ 1,800 Millennium America, Inc. (Ba1) 7.625% due 11/15/26............... $ 1,386 +900 Olin Corp. (Baa3) 9.125% due 12/15/11............... 910 810 Solutia, Inc. (Baa3) 7.375% due 10/15/27............... 631 ---------- 9,699 ---------- COMMUNICATIONS -- 14.8% 1,845 Allegiance Telecom, Inc. (B3) 11.75% due 02/15/08............... 812 +300 Centennial Communications Corp. (B3) 10.75% due 12/15/08............... 252 1,150 Crown Castle International Corp. (B3) 9.375% due 08/01/11............... 1,055 500 Crown Castle International Corp. (B3) 10.75% due 08/01/11............... 489 +1,300 EchoStar DBS Corp. (B1) 9.375% due 02/01/09............... 1,339 510 Focal Communications Corp. (Caa3) 11.875% due 01/15/10.............. 209 235 Global Crossing Holdings Ltd. (B2) 8.70% due 08/01/07................ 21 3,585 Global Crossing Holdings Ltd. (Ca) 9.50% due 11/15/09................ 394 3,350 Global Crossing Holdings Ltd. (Ca) 9.625% due 05/15/08............... 385 3,870 Level 3 Communications, Inc. (Caa3) 9.125% due 05/01/08............... 1,819 865 Level 3 Communications, Inc. (Caa3) 11.00% due 03/15/08............... 433 +680 Level 3 Communications, Inc. (Caa3) 11.25% due 03/15/10............... 332 225 Loral Space & Communications Ltd. (Ca) 9.50% due 01/15/06................. 124 3,795 Lucent Technologies, Inc. (Ba3) 6.45% due 03/15/29................ 2,581 100 McLeodUSA, Inc. (Ca) 8.125% due 02/15/09............... 21 100 McLeodUSA, Inc. (Ca) 9.25% due 07/15/07................ 21 400 McLeodUSA, Inc. (Ca) 9.50% due 11/01/08................ 84 2,230 McLeodUSA, Inc. (Ca) 11.375% due 01/01/09.............. 502 300 McLeodUSA, Inc. (Ca) 11.50% due 05/01/09............... 66 EUR 450 Metromedia Fiber Network, Inc. (Caa3) 10.00% due 12/15/09............... 103 160 Metromedia Fiber Network, Inc. (Caa3) 10.00% due 12/15/09............... 46 2,240 Metromedia Fiber Network, Inc. (Caa3) 10.00% due 11/15/08............... 650 1,800 Motorola, Inc. (A3) 5.22% due 10/01/97................ 1,114 4,680 Nextel Communications, Inc. (B1) 9.375% due 11/15/09............... 3,697
The accompanying notes are an integral part of this financial statement. 74 - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- CORPORATE NOTES ### -- (CONTINUED) COMMUNICATIONS -- (CONTINUED) $ 1,280 NTL Communications Corp. (Caa2) 12.375% due 02/01/08.............. $ 353 570 PanAmSat Corp. (Baa3) 6.375% due 01/15/08............... 485 1,570 PanAmSat Corp. (Baa3) 6.875% due 01/15/28............... 1,083 598 RCN Corp. (Caa2) 9.80% due 02/15/08................ 161 2,330 Spectrasite Holdings, Inc. (Caa3) 11.25% due 04/15/09............... 606 150 Telecorp PCS, Inc. (B3) 10.625% due 07/15/10.............. 174 600 Tritel PCS, Inc. (B3) 10.375% due 01/15/11.............. 687 1,865 Williams Communications Group, Inc. (Caa1) 10.875% due 10/01/09.............. 765 3,770 Williams Communications Group, Inc. (Caa1) 11.70% due 08/01/08............... 1,546 445 XO Communications, Inc. (Caa1) 10.75% due 11/15/08............... 53 1,990 XO Communications, Inc. (Ca) 12.50% due 04/15/06............... 239 ---------- 22,701 ---------- CONSTRUCTION -- 0.6% 150 Del Webb Corp. (Ba1) 9.375% due 05/01/09............... 158 350 Kaufman and Broad Home Corp. (Ba2) 7.75% due 10/15/04................ 355 100 MDC Holdings, Inc. (Ba1) 8.375% due 02/01/08............... 101 125 Toll Corp. (BB+ S&P) 7.75% due 09/15/07................ 122 100 Toll Corp. (Ba2) 8.75% due 11/15/06................ 102 ---------- 838 ---------- CONSUMER DURABLES -- 0.3% +370 Crown Cork & Seal Co. (Ca) 6.75% due 04/15/03................ 222 370 Crown Cork & Seal Co. (Ca) 8.00% due 04/15/23................ 157 ---------- 379 ---------- CONSUMER NON-DURABLES -- 0.7% @425 Armkel LLC (B2) 9.50% due 08/15/09................ 446 @595 Plastipak Holdings, Inc. (B3) 10.75% due 09/01/11............... 625 ---------- 1,071 ----------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- CONSUMER SERVICES -- 1.7% $ +640 Service Corp. International (B1) 6.875% due 10/01/07............... $ 557 +400 Service Corp. International (B1) 7.875% due 02/01/13............... 348 1,980 Service Corp. International (B1) 6.50% due 3/15/08................. 1,683 ---------- 2,588 ---------- DRUGS -- 0.7% +@350 ALARIS Medical Systems, Inc. (B2) 11.625% due 12/01/06.............. 378 800 Watson Pharmaceuticals, Inc. (Ba1) 7.125% due 05/15/08............... 769 ---------- 1,147 ---------- ELECTRONICS -- 0.4% +600 Xerox Corp. (Ba1) 5.25% due 12/15/03................ 551 ---------- ENERGY & SERVICES -- 5.6% 200 Belco Oil & Gas Corp. (Ba3) 8.875% due 09/15/07............... 206 125 Clark Refining & Marketing, Inc. (Ba3) 8.625% due 08/15/08............... 108 75 Cross Timbers Oil Co. (Ba3) 8.75% due 11/01/09................ 78 1,100 Enron Corp. (Ca) 6.95% due 07/15/28................ 215 1,300 Newpark Resources, Inc. (B2) 8.625% due 12/15/07............... 1,206 +553 Nuevo Energy Co. (B2) 9.50% due 06/01/08................ 516 +242 Peabody Energy Corp. (B1) 9.625% due 05/15/08............... 260 1,500 Pioneer Natural Resources Co. (Ba1) 6.50% due 01/15/08................ 1,391 650 Pioneer Natural Resources Co. (Ba1) 7.20% due 01/15/28................ 576 550 Plains Resources, Inc. (B2) 10.25% due 03/15/06............... 556 850 Pogo Producing Co. (B1) 10.375% due 02/15/09.............. 918 150 R&B Falcon Corp. (Baa3) 6.50% due 04/15/03................ 155 100 R&B Falcon Corp. (Baa3) 7.375% due 04/15/18............... 95 300 Snyder Oil Co. (Ba1) 8.75% due 06/15/07................ 314 925 Tesoro Petroleum Corp. (B1) 9.00% due 07/01/08................ 932 @400 Tesoro Petroleum Corp. (B1) 9.625% due 11/01/08............... 415 400 Varco International, Inc. (Baa2) 7.50% due 02/15/08................ 413
The accompanying notes are an integral part of this financial statement. 75 - -------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- CORPORATE NOTES ### -- (CONTINUED) ENERGY & SERVICES -- (CONTINUED) $ 100 Vintage Petroleum, Inc. (Ba3) 9.00% due 12/15/05................ $ 103 125 Vintage Petroleum, Inc. (Ba3) 9.75% due 06/30/09................ 132 ---------- 8,589 ---------- FINANCIAL SERVICES -- 0.6% 100 Trizec Finance Ltd. (Baa3) 10.875% due 10/15/05.............. 102 990 Xerox Credit Corp. (Ba1) 6.10% due 12/16/03................ 825 ---------- 927 ---------- FOOD, BEVERAGE & TOBACCO -- 1.8% 390 Hercules, Inc. (Ba1) 6.60% due 08/01/27................ 343 +900 Hercules, Inc. (Ba2) 11.125% due 11/15/07.............. 936 @687 Ingles Markets, Inc. (Ba1) 8.875% due 12/01/11............... 675 @800 Land O' Lakes, Inc. (Ba3) 8.75% due 11/15/11................ 772 @100 Smithfield Foods, Inc. (Ba2) 8.00% due 10/15/09................ 103 ---------- 2,829 ---------- FOREST & PAPER PRODUCTS -- 4.5% 500 Boise Cascade Corp. (Baa3) 7.35% due 02/01/16................ 448 825 Georgia-Pacific Corp. (Baa3) 9.875% due 11/01/21............... 859 +635 Louisiana-Pacific Corp. (Ba1) 8.50% due 08/15/05................ 622 880 Pactiv Corp. (Baa3) 8.125% due 06/15/17............... 934 1,030 Potlatch Corp. (Baa3) 9.425% due 12/01/09............... 1,139 @765 Potlatch Corp. (Ba1) 10.00% due 07/15/11............... 796 1,800 Stone Container Corp. (B2) 9.75% due 02/01/11................ 1,913 125 Stone Container Corp. (B2) 12.58% due 08/01/16............... 133 ---------- 6,844 ---------- HEALTH SERVICES -- 7.2% 1,275 Columbia/HCA Healthcare Corp. (Ba1) 6.91% due 06/15/05................ 1,312 530 Columbia/HCA Healthcare Corp. (Ba1) 7.50% due 11/15/95................ 481 150 Columbia/HCA Healthcare Corp. (Ba1) 9.00% due 12/15/14................ 170 430 HCA, Inc. (Ba1) 7.125% due 06/01/06............... 432 345 HEALTH SOUTH Corp. (Ba2) 3.25% due 04/01/03................ 328
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- HEALTH SERVICES -- (CONTINUED) $ 530 HEALTH SOUTH Corp. (Ba1) 6.875% due 06/15/05............... $ 526 +460 HEALTH SOUTH Corp. (Ba1) 7.00% due 06/15/08................ 449 +250 HEALTH SOUTH Corp. (Ba2) 10.75% due 10/01/08............... 275 1,600 IASIS Healthcare Corp. (B3) 13.00% due 10/15/09............... 1,728 +1,250 Magellan Health Services, Inc. (B3) 9.00% due 02/15/08................ 1,113 @260 Magellan Health Services, Inc. (B2) 9.375% due 11/15/07............... 264 1,400 Manor Care, Inc. (Ba1) 7.50% due 06/15/06................ 1,421 500 Manor Care, Inc. (Ba1) 8.00% due 03/01/08................ 518 660 Select Medical Corp. (B3) 9.50% due 06/15/09................ 657 500 Triad Hospitals, Inc. (B1) 8.75% due 05/01/09................ 521 +600 Triad Hospitals, Inc. (B2) 11.00% due 05/15/09............... 657 @170 Vanguard Heath Systems, Inc. (B3) 9.75% due 08/01/11................ 179 ---------- 11,031 ---------- HOTELS & GAMING -- 0.2% 200 MGM Mirage, Inc. (Baa3) 6.875% due 02/06/08............... 193 50 Starwood Hotels & Resorts Worldwide, Inc. (Ba1) 6.75% due 11/15/05................ 49 ---------- 242 ---------- INSURANCE -- 1.2% 1,800 Aetna, Inc. (Baa2) 7.875% due 03/01/11............... 1,773 ---------- MACHINERY -- 0.5% 215 Briggs & Stratton Corp. (Ba1) 8.875% due 03/15/11............... 225 955 Grove Holdings LLC (BB Fitch) 0.00% due 05/01/09................ @@0 +550 Terex Corp. (B2) 10.375% due 04/01/11.............. 572 ---------- 797 ---------- MEDIA & ENTERTAINMENT -- 10.3% 400 Adelphia Communications Corp. (B2) 8.875% due 01/15/07............... 374 1,525 Adelphia Communications Corp. (B2) 10.25% due 06/15/11............... 1,521 650 Adelphia Communications Corp. (B2) 10.25% due 11/01/06............... 663 330 American Greetings Corp. (Ba1) 6.10% due 08/01/28................ 279 620 American Greetings Corp. (Ba3) 11.75% due 07/15/08............... 639
The accompanying notes are an integral part of this financial statement. 76 - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- CORPORATE NOTES ### -- (CONTINUED) MEDIA & ENTERTAINMENT -- (CONTINUED) $ +1,175 Charter Communications Holdings LLC (B2) 8.625% due 04/01/09............... $ 1,131 +870 Charter Communications Holdings LLC (B2) 10.00% due 05/15/11............... 885 900 Charter Communications Holdings LLC (B2) 11.125% due 01/15/11.............. 954 1,000 CSC Holdings, Inc. (Ba1) 7.625% due 04/01/11............... 1,001 150 Fox Family Worldwide, Inc. (Baa1) 9.25% due 11/01/07................ 161 @835 Fox Family Worldwide, Inc. (Baa1) 10.25% due 11/01/07............... 834 850 Fox Sports Network, LLC (Ba1) 9.75% due 08/15/07................ 846 +1,200 Hollinger International Publishing, Inc. (Ba3) 9.25% due 02/01/06................ 1,190 830 Liberty Media Group (Baa3) 7.75% due 07/15/09................ 845 670 Liberty Media Corp. (Baa3) 8.25% due 02/01/30................ 634 4,195 Marconi Corp., PLC (Ba3) 8.375% due 09/15/30............... 1,928 600 Park Place Entertainment Corp. (Ba1) 7.875% due 12/15/05............... 598 200 Park Place Entertainment Corp. (Ba1) 9.375% due 02/15/07............... 209 350 PRIMEDIA, Inc. (B1) 7.625% due 04/01/08............... 303 300 PRIMEDIA, Inc. (B1) 8.50% due 02/01/06................ 272 250 PRIMEDIA, Inc. (B1) 10.25% due 06/01/04............... 236 225 World Color Press, Inc. (Baa2) 7.75% due 02/15/09................ 221 ---------- 15,724 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.3% 390 Apogent Technologies, Inc. (Baa3) 8.00% due 04/01/11................ 410 350 Omnicare, Inc. (Ba2) 8.125% due 03/15/11............... 362 500 Owens & Minor, Inc. (Ba3) 8.50% due 07/15/11................ 520 740 United Surgical Partners (B3) 10.00% due 12/15/11............... 729 ---------- 2,021 ----------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- METALS, MINERALS & MINING -- 3.6% $ 1,925 AK Steel Holding Corp. (B1) 7.875% due 02/15/09............... $ 1,887 @260 Compass Minerals Group, Inc. (B3) 10.00% due 08/15/11............... 270 300 Lukens, Inc. (Ca) 7.625% due 08/01/04............... 18 180 Newmont Mining Corp. (Baa3) 8.625% due 05/15/11............... 184 695 Phelps Dodge Corp. (Baa3) 8.75% due 06/01/11................ 681 1,280 Phelps Dodge Corp. (Baa3) 9.50% due 06/01/31................ 1,185 375 Santa Fe Pacific Gold Corp. (Baa3) 8.375% due 07/01/05............... 389 @930 United States Steel LLC (Ba3) 10.75% due 08/01/08............... 888 ---------- 5,502 ---------- REAL ESTATE -- 0.6% 325 HMH Properties, Inc. (Ba3) 8.45% due 12/01/08................ 309 525 Stewart Enterprises, Inc. (B2) 10.75% due 07/01/08............... 572 ---------- 881 ---------- SOFTWARE & SERVICES -- 0.5% 940 Time Warner Telecom, Inc. (B2) 9.75% due 07/15/08................ 754 ---------- TRANSPORTATION -- 2.1% 1,080 Delta Air Lines, Inc. (Ba3) 8.30% due 12/15/29................ 868 475 Delta Air Lines, Inc. (Ba3) 9.00% due 05/15/16................ 391 350 Newport News Shipbuilding, Inc. (Ba1) 8.625% due 12/01/06............... 367 300 Newport News Shipbuilding, Inc. (Ba3) 9.25% due 12/01/06................ 314 100 United Air Lines, Inc. (Caa1) 9.125% due 01/15/12............... 72 1,065 United Air Lines, Inc. (Caa1) 9.75% due 08/15/21................ 657 800 United Air Lines, Inc. (Caa1) 10.67% due 05/01/04............... 603 ---------- 3,272 ---------- UTILITIES -- 9.8% 865 AES Corp. (The) (Ba1) 9.375% due 09/15/10............... 779 175 AES Corp. (The) (Ba1) 9.50% due 06/01/09................ 159 100 AES Corp. (The) (Ba2) 10.25% due 07/15/06............... 88 @2,800 Allied Waste North American (Ba3) 8.50% due 12/01/08................ 2,828 450 Browning-Ferris Industries, Inc. (Ba3) 6.375% due 01/15/08............... 393 1,055 Browning-Ferris Industries, Inc. (Ba3) 7.40% due 09/15/35................ 830
The accompanying notes are an integral part of this financial statement. 77 - -------------------------------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL AMOUNT MARKET VALUE - -------- ---------- CORPORATE NOTES ### -- (CONTINUED) UTILITIES -- (CONTINUED) $ 1,020 Calpine Corp. (Ba1) 8.50% due 02/15/11................ $ 928 330 CMS Energy Corp. (Ba3) 6.75% due 01/15/04................ 324 100 CMS Energy Corp. (Ba3) 7.50% due 01/15/09................ 98 250 CMS Energy Corp. (Ba3) 7.625% due 11/15/04............... 249 120 CMS Energy Corp. (Ba3) 8.50% due 04/15/11................ 120 500 Cogentrix Energy, Inc. (Baa3) 8.75% due 10/15/08................ 494 590 Commonwealth Edison Co. (Baa1) 8.625% due 02/01/22............... 599 125 El Paso Electric Co. (Ba3) 9.40% due 05/01/11................ 136 @1,500 IPC Acquisition Corp. (B3) 11.50% due 12/15/09............... 1,500 145 Kansas Gas & Electric Co. (Aaa) 7.60% due 12/15/03................ 148 2,130 Mission Energy Holding (BB- S&P) 13.50% due 07/15/08............... 2,322 @1,140 Sierra Pacific Power Co. (Aaa) 8.00% due 06/01/08................ 1,215 250 Waste Management, Inc. (Ba1) 6.875% due 05/15/09............... 252 +710 Waste Management, Inc. (Ba1) 7.375% due 08/01/10............... 726 1,000 Western Resources, Inc. (Ba1) 7.65% due 04/15/23................ 748 ---------- 14,936 ---------- Total corporate notes.............. $ 119,311 ========== FOREIGN/YANKEE BONDS & NOTES ### -- 13.4% FOREIGN CORPORATIONS -- 11.2% $ 510 Acetex Corp. (B2) 10.875% due 08/01/09.............. $ 510 800 Asia Global Crossing Ltd. (Ca) 13.375% due 10/15/10.............. 280 930 AT&T Canada, Inc. (Baa3) 7.65% due 09/15/06................ 606 600 British Sky Broadcasting Group PLC (Ba1) 8.20% due 07/15/09................ 617 650 Callahan Nordhein-Westfalen GmbH (B3) 14.00% due 07/15/10............... 429 +325 Domtar, Inc. (Baa3) 7.875% due 10/15/11............... 338 650 eKabel Holdings GmbH (Caa1) 14.50% due 09/01/10............... 306
PRINCIPAL MARKET AMOUNT I VALUE - -------- ---------- FOREIGN CORPORATIONS -- (CONTINUED) EUR 600 Flowserve Finance B.V. (B3) 12.25% due 08/15/10............... $ 598 450 Focal Communications Corp. (Caa3) 12.125% due 02/15/08.............. 126 900 Inco Ltd. (Baa3) 9.60% due 06/15/22................ 903 EUR 585 Kappa Beheer B.V. (B2) 10.625% due 07/15/09.............. 568 50 Koninklijke (Royal) KPN N.V. (Baa3) 8.00% due 10/01/10................ 51 EUR 780 KPNQwest N.V. (Ba1) 7.125% due 06/01/09............... 427 2,005 KPNQwest N.V. (Ba1) 8.125% due 06/01/09............... 1,303 EUR 1,175 Level 3 Communications, Inc. (Caa3) 11.25% due 03/15/10............... 492 EUR @1,250 Messer Griesheim Holdings AG (B2) 10.375% due 06/01/11.............. 1,174 660 Nortel Networks Corp. (Baa2) 6.875% due 09/01/23............... 460 EUR 1,025 NTL Communications Corp. (Caa2) 9.875% due 11/15/09............... 283 EUR 1,200 NTL Communications Corp. (Caa2) 11.875% due 10/01/10.............. 408 700 Ono Finance PLC (Caa1) 13.00% due 05/01/09............... 531 100 Placer Dome, Inc. (Baa2) 7.125% due 06/15/07............... 100 1,010 Quebecor Media, Inc. (B2) 11.125% due 07/15/11.............. 1,078 350 Rogers Cantel, Inc. (Baa3) 9.375% due 06/01/08............... 361 +275 Rogers Cantel, Inc. (Baa3) 9.75% due 06/01/16................ 272 1,350 Rogers Cablesystems Ltd. (Baa3) 10.00% due 12/01/07............... 1,458 750 Teekay Shipping Corp. (Ba1) 8.32% due 02/01/08................ 773 @150 Teekay Shipping Corp. (Ba2) 8.875% due 07/15/11............... 154 760 Telewest Communications PLC (B2) 9.625% due 10/01/06............... 521 1,365 Telewest Communications PLC (Aa1) 11.00% due 10/01/07............... 983 +555 Tembec Industries, Inc. (Ba1) 8.50% due 02/01/11................ 574 250 Tembec Industries, Inc. (Ba1) 8.625% due 06/30/09............... 260 EUR 670 United Pan-Europe Communications N.V. (Ca) 10.875% due 11/01/07.............. 101 ---------- 17,045 ----------
The accompanying notes are an integral part of this financial statement. 78 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT I VALUE - -------- ---------- FOREIGN/YANKEE BONDS & NOTES ### -- (CONTINUED) FOREIGN GOVERNMENTS -- 2.2% EUR 965 France BTAN (AAA S&P) 4.50% due 07/12/03................ $ 872 EUR 170 France BTAN (AAA S&P) 4.75% due 03/12/02................ 152 EUR 1,400 Netherlands Government (Aaa) 5.75% due 09/15/02................ 1,267 250 Republic of Brazil (B1) 12.75% due 01/15/20............... 221 250 Republic of Colombia (Ba2) 8.375% due 02/15/27............... 180 @290 Republic of Ecuador (Caa2) 4.00% due 08/15/30................ 136 @17 Republic of Ecuador (Caa2) 12.00% due 11/15/12............... 13 @600 Russian Federation (Ba1) 11.00% due 07/24/18............... 576 ---------- 3,417 ---------- Total foreign/yankee bonds & notes............................. $ 20,462 ========== SHARES - --------- PREFERRED STOCKS -- 0.6% COMMUNICATIONS -- 0.0% 8 NEXTLINK Communications, Inc....... $ 8 ---------- ELECTRONICS -- 0.2% @4 Xerox Corp......................... 274 ---------- METALS, MINERALS & MINING -- 0.4% 29 Rio Algom Ltd...................... 706 ---------- Total preferred stocks............. $ 988 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 9.9% REPURCHASE AGREEMENT -- 9.9% $ 15,203 Joint Repurchase Agreement (See Note 2(d)) 1.635% due 01/02/02................ $ 15,203 ---------- Total short-term securities........ $ 15,203 ==========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total convertible bonds (cost $550)..... 0.4% $ 636 Total corporate notes (cost $128,949)... 78.0 119,311 Total foreign/yankee bonds & notes (cost $22,990).............................. 13.4 20,462 Total preferred stocks (cost $1,023).... 0.6 988 Total short-term securities (cost $15,203).............................. 9.9 15,203 ----- -------- Total investment in securities (total cost $168,715)........................ 102.3 156,600 Cash, receivables and other assets...... 2.9 4,458 Securities lending collateral (See Note 2(i))................................. 9.6 14,663 Payable for securities purchased........ (0.6) (931) Payable for Fund shares redeemed........ (4.6) (7,123) Securities lending collateral payable to brokers (See Note 2(i))............... (9.6) (14,663) Other liabilities....................... (0.0) (59) ----- -------- Net assets.............................. 100.0% $152,945 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 158,735 shares outstanding................................... $ 159 Capital surplus................................. 158,122 Accumulated undistributed net investment income........................................ 11,683 Accumulated net realized loss on investments.... (4,907) Unrealized depreciation of investments.......... (12,115) Unrealized appreciation of other assets and liabilities in foreign currencies............. 3 -------- Net assets...................................... $152,945 ========
Class IA Net asset value per share ($127,044 / 131,784 shares outstanding) (600,000 shares authorized)..................................... $0.96 ===== Class IB Net asset value per share ($25,901 / 26,951 shares outstanding) (200,000 shares authorized)........ $0.96 =====
+ All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $15,151 or 9.9% of net assets. ### The ratings associated with the corresponding bond holdings were obtained from Moody's as of December 31, 2001, unless another source is noted for a particular security. The bond ratings are unaudited. @@ Due to the presentation of the financial statements in thousands, the market value rounds to zero. I All principle amounts are in U.S. dollars unless otherwise indicated.
The accompanying notes are an integral part of this financial statement. 79 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS ### -- 0.9% $ 4,000 California Infrastructure & Economic Development Bank Pacific Gas and Electric Co., Series 1997-1, Class A8 (Aaa) 6.48% due 12/26/09.................. $ 4,154 7,600 Comed Transitional Funding Trust, Series 1998-1, Class A5 (Aaa) 5.44% due 03/25/07.................. 7,880 2,088 NorthWest Airlines Trust, Series 2, Class C (Baa2) 06/21/14............. 1,608 825 PP&L Transition Bond Co., LLC, Series 1999-1, Class A5 (Aaa) 6.83% due 03/25/07.................. 877 -------- Total collateralized mortgage obligations......................... $ 14,519 ======== CORPORATE NOTES ### -- 45.9% AEROSPACE & DEFENSE -- 0.1% $ +2,500 Sequa Corp. (Ba3) 8.875% due 04/01/08................. $ 2,338 -------- AGRICULTURE & FISHING 0.1% @1,650 Cargill, Inc. (A1) 7.25% due 11/01/36.................. 1,538 -------- BANKS -- 1.0% 2,350 Federal Home Loan Bank (Aaa) 7.801% due 02/20/07................. 2,280 13,350 Federal Home Loan Mortgage Corp. (Aaa) 6.25% due 09/15/09.................. 14,212 -------- 16,492 -------- BUSINESS SERVICES -- 0.0% 500 Interpool, Inc. (Ba3) 7.20% due 08/01/07.................. 454 -------- CHEMICALS -- 2.1% 5,700 du Pont (E.I.) de Nemours & Co. (Aa3) 6.75% due 09/01/07.................. 6,171 3,060 Equistar Chemicals LP (Ba2) 7.55% due 02/15/26.................. 2,186 17,000 ICI Wilmington, Inc. (Baa2) 6.75% due 09/15/02.................. 17,194 6,450 Millennium America, Inc. (Ba1) 7.625% due 11/15/26................. 4,967 +5,100 Olin Corp. (Baa3) 9.125% due 12/15/11................. 5,158 -------- 35,676 -------- COMMUNICATIONS -- 3.7% @18,900 AT&T Corp. (A3) 6.50% due 11/15/06.................. 19,214 1,500 Chesapeake & Potomac Telephone Co. (Aa2) 8.30% due 08/01/31.................. 1,706 +3,000 Global Crossing Holdings Ltd. (B2) 8.70% due 08/01/07.................. 270 19,680 Global Crossing Holdings Ltd. (Ca) 9.50% due 11/15/09.................. 2,165
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- COMMUNICATIONS -- (CONTINUED) $ 2,700 Global Crossing Holdings Ltd. (Ca) 9.625% due 05/15/08................. $ 311 22,871 Lucent Technologies, Inc. (Ba3) 6.45% due 03/15/29.................. 15,550 2,510 Lucent Technologies, Inc. (Ba3) 6.50% due 01/15/28.................. 1,707 4,300 Motorola, Inc. (A3) 5.22% due 10/01/97.................. 2,660 7,300 Qwest Capital Funding, Inc. (Baa1) 7.00% due 08/03/09.................. 7,090 @11,700 Sprint Capital Corp. (Baa1) 6.00% due 01/15/07.................. 11,617 +2,200 Williams Communications Group, Inc. (Caa1) 10.875% due 10/01/09................ 902 -------- 63,192 -------- COMPUTERS & OFFICE EQUIPMENT -- 1.0% 16,300 Hewlett-Packard Co. (A2) 5.75% due 12/15/06.................. 16,136 -------- DRUGS -- 0.7% 12,000 American Home Products Corp. 5.875% due 03/15/04................. 12,456 -------- ELECTRICAL EQUIPMENT -- 0.6% 8,230 Rockwell International Corp. (A3) 5.20% due 01/15/98.................. 5,340 6,000 Rockwell International Corp. (A3) 6.70% due 01/15/28.................. 5,399 -------- 10,739 -------- ENERGY & SERVICES -- 9.0% 4,725 Appalachian Power (Baa1) 2.839% due 08/20/03................. 4,729 @2,525 Conectiv, Inc. (Baa1) 2.75% due 06/13/02.................. 2,525 12,175 Conoco, Inc. (Baa1) 6.35% due 10/15/11.................. 12,282 7,780 Consolidated Natural Gas Co. (A3) 5.375% due 11/01/06................. 7,672 8,100 Consumers Energy Co. (Baa3) 6.25% due 09/15/06.................. 7,993 12,000 El Paso CGP Co. (Baa2) 7.625% due 09/01/08................. 12,303 11,450 FirstEnergy Corp. (Baa2) 5.50% due 11/15/06.................. 11,266 12,200 Kerr-McGee Corp. (Baa2) 6.875% due 09/15/11................. 12,309 5,000 Lasmo (USA), Inc. (A1) 7.50% due 06/30/06.................. 5,449 6,800 Occidental Petroleum Corp. (Baa2) 7.375% due 11/15/08................. 7,154 6,350 Ocean Energy, Inc. (Baa3) 7.25% due 10/01/11.................. 6,541 3,500 Ocean Energy, Inc. (Baa3) 7.625% due 07/01/05................. 3,614
The accompanying notes are an integral part of this financial statement. 80 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- CORPORATE NOTES ### -- (CONTINUED) ENERGY & SERVICES -- (CONTINUED) $ 24,200 PanCanadian Petroleum (A3) 6.30% due 11/01/11.................. $ 23,287 +8,500 PanCanadian Energy Corp. (A3) 7.20% due 11/01/31.................. 8,273 1,000 Pioneer Natural Resources Co. (Ba1) 6.50% due 01/15/08.................. 927 13,900 Pioneer Natural Resources Co. (Ba1) 7.20% due 01/15/28.................. 12,328 1,000 Tesoro Petroleum Corp. (B1) 9.00% due 07/01/08.................. 1,008 +1,000 Tosco Corp. (A3) 8.125% due 02/15/30................. 1,145 2,500 Union Oil Co. of California (Baa1) 9.375% due 02/15/11................. 2,907 1,500 Valero Energy Corp. (Baa2) 8.375% due 06/15/05................. 1,632 2,850 Varco International, Inc. (Baa2) 7.50% due 02/15/08.................. 2,942 4,500 Vastar Resources, Inc. (Aa1) 6.50% due 04/01/09.................. 4,649 -------- 152,935 -------- FINANCIAL SERVICES -- 5.2% @17,000 Bombardier Capital, Inc. (A3) 4.275% due 11/21/02................. 17,000 +6,395 ERAC USA Finance Co. (Baa1) 8.00% due 01/15/11.................. 6,434 30,900 Ford Motor Credit Co. (Aaa) 4.225% due 10/25/04................. 30,895 +3,800 General Motors Acceptance Corp. (A2) 2.20% due 08/18/03.................. 3,718 16,150 General Motors Acceptance Corp. (A2) 2.54% due 08/04/03.................. 15,867 4,150 General Motors Acceptance Corp. (A2) 6.875% due 09/15/11................. 4,065 9,900 NiSource Finance Corp. (Baa2) 7.875% due 11/15/10................. 10,246 -------- 88,225 -------- FOOD, BEVERAGE & TOBACCO -- 1.6% 8,120 Archer-Daniels-Midland Co. (A1) 6.95% due 12/15/97.................. 7,744 6,750 ConAgra Foods, Inc. (Baa1) 7.00% due 10/01/28.................. 6,708 12,200 ConAgra Foods, Inc. (Baa1) 7.50% due 09/15/05.................. 13,169 -------- 27,621 -------- FOREST & PAPER PRODUCTS -- 2.4% 2,830 International Paper Co. (Baa2) 6.75% due 09/01/11.................. 2,862 5,600 International Paper Co. (Baa2) 6.875% due 04/15/29................. 5,371 2,315 International Paper Co. Baa2) 7.20% due 11/01/26.................. 2,383 4,500 Mead Corp. (The) (A3) 7.55% due 03/01/47.................. 3,869
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- FOREST & PAPER PRODUCTS -- (CONTINUED) $ 11,670 Potlatch Corp. (Baa3) 9.425% due 12/01/09................. $ 12,908 @7,700 Weyerhaeuser Co. (A3) 5.95% due 11/01/08.................. 7,500 +6,300 Weyerhaeuser Co. (A3) 7.25% due 07/01/13.................. 6,384 -------- 41,277 -------- HEALTH SERVICES -- 3.6% 3,150 Columbia/HCA Healthcare Corp. (Ba1) 7.50% due 11/15/95.................. 2,862 9,035 HCA, Inc. (Ba1) 7.125% due 06/01/06................. 9,069 3,520 HEALTH SOUTH Corp. (Ba1) 6.875% due 06/15/05................. 3,493 570 HEALTH SOUTH Corp. (Ba1) 7.00% due 06/15/08.................. 556 4,225 HEALTH SOUTH Corp. (Ba1) 8.50% due 02/01/08.................. 4,394 +1,000 HEALTH SOUTH Corp. (Ba2) 10.75% due 10/01/08................. 1,100 6,540 Manor Care, Inc. (Ba1) 7.50% due 06/15/06.................. 6,640 1,120 Manor Care, Inc. (Ba1) 8.00% due 03/01/08.................. 1,159 @24,600 Tenet Healthcare Corp. (Baa3) 5.375% due 11/15/06................. 24,062 8,200 Universal Health Services, Inc. (Baa3) 6.75% due 11/15/11.................. 7,894 -------- 61,229 -------- INSURANCE -- 1.3% 7,800 Aetna, Inc. (Baa2) 7.875% due 03/01/11................. 7,682 5,250 Humana, Inc. (Baa3) 7.25% due 08/01/06.................. 5,324 4,300 Trenwick Group, Inc. (Baa3) 6.70% due 04/01/03.................. 3,775 5,400 Wellpoint Health Networks, Inc. (Baa1) 6.375% due 06/15/06................. 5,507 -------- 22,288 -------- MEDIA & ENTERTAINMENT -- 3.6% 1,000 Continental Cablevision, Inc. (Baa2) 9.50% due 08/01/13.................. 1,133 +17,400 Liberty Media Corp. (Baa3) 8.25% due 02/01/30.................. 16,459 8,200 Marconi Corp., PLC (Ba1) 7.75% due 09/15/10.................. 4,285 29,117 Marconi Corp., PLC (Ba3) 8.375% due 09/15/30................. 13,384 14,325 News America Holdings, Inc. (Baa3) 7.75% due 12/01/45.................. 13,291 12,000 USA Networks, Inc. (Baa3) 6.75% due 11/15/05.................. 12,350 -------- 60,902 --------
The accompanying notes are an integral part of this financial statement. 81 - -------------------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- CORPORATE NOTES ### -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 0.4% $ 3,600 Apogent Technologies, Inc. (Baa3) 8.00% due 04/01/11.................. $ 3,784 2,800 Omnicare, Inc. (Ba2) 8.125% due 03/15/11................. 2,898 -------- 6,682 -------- METALS, MINERALS & MINING -- 1.6% 2,570 Newmont Mining Corp. (Baa3) 8.625% due 05/15/11................. 2,634 2,615 Phelps Dodge Corp. (Baa3) 8.75% due 06/01/11.................. 2,561 17,965 Phelps Dodge Corp. (Baa3) 9.50% due 06/01/31.................. 16,631 5,140 Santa Fe Pacific Gold Corp. (Baa3) 8.375% due 07/01/05................. 5,326 -------- 27,152 -------- RESEARCH & TESTING FACILITIES -- 0.2% 4,000 Quest Diagnostics, Inc. (Ba1) 6.75% due 07/12/06.................. 4,108 -------- RETAIL -- 0.5% 8,585 Stop & Shop Cos., Inc. (The) (Baa2 other) 9.75% due 02/01/02.................. 8,626 -------- SOFTWARE & SERVICES -- 0.9% 4,100 AOL Time Warner, Inc. (Baa1) 7.625% due 04/15/31................. 4,337 10,000 Computer Sciences Corp. (A2) 6.75% due 06/15/06.................. 10,416 -------- 14,753 -------- TRANSPORTATION -- 1.2% 1,460 American Airlines, Inc. (BBB S&P) 7.858% due 10/01/11................. 1,464 4,500 FedEx Corp. (Baa2) 6.625% due 02/12/04................. 4,707 8,000 Union Pacific Corp. (Baa3) 6.625% due 02/01/08................. 8,240 +3,640 United Air Lines, Inc. (Caa1) 9.75% due 08/15/21.................. 2,247 4,389 US Airways Group, Inc. (A2) 6.76% due 04/15/08.................. 3,924 -------- 20,582 -------- UTILITIES -- 5.1% @14,750 Allied Waste North American (Ba3) 8.50% due 12/01/08.................. 14,898 1,750 Cleveland Electric Illuminating Co. (Aaa) 7.13% due 07/01/07.................. 1,865 3,600 CMS Panhandle Holding Co. (Baa3) 6.125% due 03/15/04................. 3,665 800 CMS Energy Corp. (Ba3) 7.50% due 01/15/09.................. 783 3,170 Commonwealth Edison Co. (Baa1) 8.625% due 02/01/22................. 3,219
PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- UTILITIES -- (CONTINUED) $ 3,650 Detroit Edison Co. (The) (A3) 6.125% due 10/01/10................. $ 3,585 @10,000 Entergy Gulf States, Inc. (Baa3) 3.281% due 06/02/03................. 10,023 9,725 Mission Energy Holding (BB- S&P) 13.50% due 07/15/08................. 10,600 3,100 PacifiCorp. (A3) 6.12% due 01/15/06.................. 3,113 10,500 PacifiCorp. (A2) 7.70% due 11/15/31.................. 10,662 4,000 Public Service Electric & Gas Co. (Aaa) 7.00% due 09/01/24.................. 3,991 @12,300 Sierra Pacific Power Co. (Aaa) 8.00% due 06/01/08.................. 13,112 6,435 Western Resources, Inc. (Ba1) 7.250% due 08/15/02................. 6,452 -------- 85,968 -------- Total corporate notes................ $781,369 ======== FOREIGN/YANKEE BONDS & NOTES### -- 16.6% FOREIGN CORPORATIONS -- 10.7% $ 11,750 Alcan, Inc. (A2) 7.25% due 03/15/31.................. $ 12,272 +3,600 AT&T Canada, Inc. (Baa3) 7.65% due 09/15/06.................. 2,348 +15,000 Bank of Tokyo-Mitsubishi Ltd. (The) (A3) 8.40% due 04/15/10.................. 16,367 7,600 Barrick Gold Finance, Inc. (A3) 7.50% due 05/01/07.................. 8,029 8,500 British Sky Broadcasting Group PLC (Ba1) 8.20% due 07/15/09.................. 8,748 18,375 BT Group PLC (Baa1) 8.875% due 12/15/30................. 21,168 +16,000 Domtar, Inc. (Baa3) 7.875% due 10/15/11................. 16,641 3,150 Enterprise Oil PLC (Baa1) 6.50% due 05/01/05.................. 3,258 4,650 Enterprise Oil PLC (Baa1) 6.70% due 09/15/07.................. 4,787 @12,100 France Telecom S.A. (Baa1) 7.20% due 03/01/06.................. 12,849 @9,000 France Telecom S.A. (Baa1) 8.50% due 03/01/31.................. 10,274 +1,400 Koninklijke (Royal) KPN N.V. (Baa3) 7.50% due 10/01/05.................. 1,443 4,050 Koninklijke (Royal) KPN N.V. (Baa3) 8.00% due 10/01/10.................. 4,104 10,790 Koninklijke (Royal) KPN N.V. (Baa3) 8.375% due 10/01/30................. 10,733 +2,880 KPNQwest N.V. (Ba1) 8.125% due 06/01/09................. 1,872 @1,800 Nortel Networks Corp. (Baa2) 4.25% due 09/01/08.................. 1,744 5,610 Nortel Networks Corp. (Baa2) 6.875% due 09/01/23................. 3,911
The accompanying notes are an integral part of this financial statement. 82 - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNTS I VALUE --------- -------- FOREIGN/YANKEE BONDS & NOTES ### -- (CONTINUED) FOREIGN CORPORATIONS -- (CONTINUED) $ +7,700 Nova Chemicals Ltd. (Baa2) 7.00% due 05/15/06.................. $ 7,264 4,000 Nova Chemicals Ltd. (Baa2) 7.875% due 09/15/25................. 3,380 7,300 Placer Dome, Inc. (Baa2) 7.125% due 06/15/07................. 7,283 3,600 Placer Dome, Inc. (Baa2) 7.125% due 05/15/03................. 3,734 4,000 Potash Corp. Saskatchewan (Baa2) 7.125% due 06/15/07................. 4,165 7,040 Potash Corp. Saskatchewan (Baa2) 7.75% due 05/31/11.................. 7,453 3,660 Shaw Communications, Inc. (Baa3) 8.25% due 04/11/10.................. 3,912 3,340 Stora Enso Oyj (Baa1) 7.375% due 05/15/11................. 3,523 -------- 181,262 -------- FOREIGN GOVERNMENTS -- 5.9% EUR 35,400 Bundesschatzanweisungen (Aa3) 4.50% due 03/15/02.................. 31,586 EUR 8,495 France BTAN (AAA S&P) 4.50% due 07/12/03.................. 7,673 EUR 28,650 France BTAN (AAA S&P) 4.75% due 03/12/02.................. 25,577 EUR 10,500 Netherlands Government (Aaa) 5.75% due 09/15/02.................. 9,503 EUR 29,300 Republic of Italy (Aa3) 3.00% due 06/15/02.................. 26,074 -------- 100,413 -------- Total foreign/yankee bonds & notes... $281,675 ======== SHARES - ---------- PREFERRED STOCKS -- 0.4% ELECTRONICS -- 0.2% @53 Xerox Corp........................... $ 3,751 -------- ENERGY & SERVICES -- 0.2% 97 Coastal Finance Corp................. 2,432 -------- Total preferred stocks............... $ 6,183 ======== PRINCIPAL MARKET AMOUNT VALUE - ---------- -------- U.S. TREASURIES & FEDERAL AGENCIES -- 29.0% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 1.0% $ +17,240 6.00% due 04/01/31 - 05/01/31........ $ 16,898 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 19.4% 179,814 6.00% due 07/01/12 - 05/01/31........ 180,351 2,796 6.48% due 12/01/05................... 2,944 110,022 6.50% due 05/01/31 - 12/01/31........ 110,201 35,159 7.50% due 07/01/29 - 09/01/31........ 36,314 -------- 329,810 -------- U.S. TREASURY BONDS -- 0.7% +3,200 6.125% due 08/15/07.................. 3,443 +7,800 6.625% due 05/15/07.................. 8,573 -------- 12,016 -------- U.S. TREASURY -- 4.9% INFLATION-INDEXED SECURITIES +22,050 3.875% due 04/15/29.................. 23,508 +57,243 4.25% due 01/15/10................... 60,049 -------- 83,557 -------- U.S. TREASURY NOTES -- 3.0% +2,000 4.625% due 05/16/06.................. 2,028 +24,300 5.00% due 02/15/11 - 08/15/11........ 24,228 +2,150 5.50% due 05/15/09................... 2,228 +17,450 6.25% due 02/15/07................... 18,854 +1,600 6.50% due 10/15/06................... 1,743 +2,100 6.75% due 05/15/05................... 2,283 -------- 51,364 -------- Total U.S. treasuries & federal agencies............................ $493,645 ======== SHORT-TERM SECURITIES -- 4.8% REPURCHASE AGREEMENT -- 4.8% $ 80,953 Joint Repurchase Agreement (See Note 2(d)) 1.635% due 01/02/02................. $ 80,953 -------- Total short-term securities.......... $ 80,953 ========
The accompanying notes are an integral part of this financial statement. 83 - -------------------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total collateralized mortgage obligations (cost $15,116).......... 0.9% $ 14,519 Total corporate notes (cost $789,056)........................... 45.9 781,369 Total foreign/yankee bonds & notes (cost $275,116)..................... 16.6 281,675 Total preferred stocks (cost $4,851)............................. 0.4 6,183 Total U.S. treasuries & federal agencies (cost $493,475)............ 29.0 493,645 Total short-term securities (cost $80,953)............................ 4.8 80,953 ----- ---------- Total investment in securities (total cost $1,658,567).................... 97.6 1,658,344 Cash, receivables and other assets.... 2.4 44,516 Securities lending collateral (See Note 2(i)).......................... 10.2 172,959 Payable for Fund shares redeemed...... (0.0) (2) Securities lending collateral payable to brokers (See Note 2(i)).......... (10.2) (172,959) Other liabilities..................... (0.0) (906) ----- ---------- Net assets............................ 100.0% $1,701,952 ===== ==========
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 3,000,000 shares authorized; 1,485,516 shares outstanding.......................... $ 148,552 Capital surplus............................... 1,449,758 Accumulated undistributed net investment income...................................... 80,851 Accumulated undistributed net realized gain on investments................................. 22,949 Unrealized depreciation of investments........ (223) Unrealized appreciation of other assets and liabilities in foreign currencies........... 65 ---------- Net assets.................................... $1,701,952 ==========
Net asset value per share ($1,549,698 /1,352,321 shares outstanding) (2,400,000 shares authorized)................................... $1.15 ===== Class IB Net asset value per share ($152,254 / 133,195 shares outstanding) (600,000 shares authorized)................................... $1.14 =====
+ All or a portion of this security was on loan as of December 31, 2001 (See Note 2(i)). @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $150,107 or 8.8% of net assets. ### The ratings associated with the corresponding bond holdings were obtained from Moody's as of December 31, 2001, unless another source is noted for a particular security. The bond ratings are unaudited. I All principle amounts are in U.S. dollars unless otherwise indicated.
The accompanying notes are an integral part of this financial statement. 84 - -------------------------------------------------------------------------------- HARTFORD MORTGAGE HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS ### -- 17.1% $ 4,991 Citicorp Mortgage Securities, Inc., Series 1998-8, Class A3 (AAA) 6.75% due 09/25/28................... $ 5,035 2,436 Countrywide Home Loans, Series 1998-6, Class A (A Fitch) 6.50% due 06/25/13................... 2,493 @372 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B1 (A Fitch) 7.25% due 09/25/11................... 379 @124 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B2 (BBB) 7.25% due 09/25/11................... 126 2,020 Fannie Mae, Series 1997-28, Class PD (Aa) 7.50% due 07/18/23................... 2,031 4,521 Freddie Mac Strip, Series 202, Class IO (Aa) 6.50% due 04/01/29................... 1,118 2,413 GE Capital Mortgage Services, Inc., Series 1993-10, Class A8 (Aaa) 6.50% due 09/25/23................... 2,474 2,209 GE Capital Mortgage Services, Inc., Series 1998-7, Class A (Aaa) 6.50% due 04/25/13................... 2,276 4,569 GE Capital Mortgage Services, Inc., Series 1999-16, Class A (Aaa) 6.50% due 07/25/14................... 4,670 412 GE Capital Mortgage Services, Inc., Series 1996-1, Class B2 (BBB) 6.75% due 02/25/11................... 415 1,235 GE Capital Mortgage Services, Inc., Series 1996-1, Class M (AA) 6.75% due 02/25/11................... 1,264 437 GE Capital Mortgage Services, Inc., Series 1996-10, Class B1 (A) 6.75% due 06/25/11................... 447 437 GE Capital Mortgage Services, Inc., Series 1996-10, Class B2 (BBB Fitch) 6.75% due 06/25/11................... 439 2,559 GE Capital Mortgage Services, Inc., Series 1994-26, Class A (AAA) 6.854% due 07/25/09.................. 2,630 1,164 Housing Securities, Inc., Series 1993-E, Class E15 (AAA Fitch) 10.00% due 09/25/08.................. 1,258 3,792 Norwest Asset Securities Corp., Series 1999-22, Class A1 (Aaa) 6.50% due 09/25/14................... 3,876 402 PNC Mortgage Securities Corp., Series 1996-2, Class B1 (AA Fitch) 6.60% due 02/25/11................... 410 134 PNC Mortgage Securities Corp., Series 1996-2, Class B2 (A Fitch) 6.60% due 02/25/11................... 137 214 PNC Mortgage Securities Corp., Series 1996-2, Class B3 (BBB) 6.60% due 02/25/11................... 215
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- $ 4,200 Prudential Home Mortgage Securities Co., Series 1994-8, Class A3 (Aaa) 6.75% due 03/25/24................... $ 4,303 855 Prudential Home Mortgage Securities Co., Series 1996-3, Class B1 (A Fitch) 6.75% due 03/25/11................... 860 1,544 Residential Funding Mortgage Securities I, Inc., Series 1998-S22, Class A1 (AAA S&P) 6.50% due 09/25/13................... 1,579 5,266 Residential Funding Mortgage Securities I, Inc., Series 1999-S15, Class A2 (A1) 6.50% due 06/25/14................... 5,378 427 Prudential Home Mortgage Securities Co., Series 1996-3, Class B2 (BBB Fitch) 6.75% due 03/25/11................... 429 427 Residential Funding Mortgage Securities I, Inc., Series 1996-S5, Class M3 (BBB Fitch) 6.75% due 02/25/11................... 440 545 Residential Funding Mortgage Securities I, Inc., Series 1995-S18, Class M3 (BBB Fitch) 7.00% due 11/25/10................... 552 201 Residential Funding Mortgage Securities I, Inc., Series 1996-S11, Class M3 (BBB Fitch) 7.00% due 04/25/11................... 208 2,122 Residential Funding Mortgage Securities I, Inc., Series 1999-S22, Class A2 (AAA S&P) 7.00% due 10/25/14................... 2,212 394 Residential Funding Mortgage Securities I, Inc., Series 1996-S19, Class M3 (BBB Fitch) 7.50% due 09/25/11................... 403 4,765 Residential Funding Mortgage Securities I, Inc., Series 2001-S3, Class A1 (A1) 7.50% due 01/25/31................... 4,884 10,000 Wells Fargo Mortgage Backed Securities Trust, Series 2000-13, Class A7 (AAA S&P) 7.50% due 12/25/30................... 10,333 13,731 Wells Fargo Mortgage Backed Securities Trust, Series 2001-15, Class 1A1 (AAA S&P) 6.00% due 07/25/31................... 13,941 -------- Total collateralized mortgage obligations.......................... $ 77,215 ======== CORPORATE NOTES ### -- 2.3% BANKS -- 2.3% $ 10,000 Federal Home Loan Bank (Aaa) 5.80% due 09/02/08................... $ 10,275 -------- Total corporate notes................. $ 10,275 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 79.3% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 24.6% $ 68,576 6.50% due 04/01/31 -- 11/01/31........ $ 68,743 36,741 7.00% due 06/01/15 -- 07/01/29........ 37,992 677 7.50% due 05/01/24 -- 03/01/31........ 705 1,219 8.00% due 02/01/13 -- 11/01/24........ 1,291 572 8.50% due 06/01/03 -- 05/01/25........ 609 314 9.00% due 07/01/02 -- 10/01/06........ 319
The accompanying notes are an integral part of this financial statement. 85 - -------------------------------------------------------------------------------- HARTFORD MORTGAGE HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) FEDERAL HOME LOAN MORTGAGE ASSOCIA- TION -- (CONTINUED) $ 607 9.50% due 11/01/08.................... $ 632 635 10.00% due 09/01/05 -- 11/01/20....... 705 -------- 110,996 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 32.0% 5,031 6.10% due 04/01/11.................... 5,155 74,999 6.50% due 07/01/31 -- 01/01/32........ 75,064 26,265 7.00% due 11/01/13 -- 01/01/32........ 27,053 26,294 7.50% due 12/01/14 -- 04/01/31........ 27,331 8,398 8.00% due 10/01/29 -- 02/01/31........ 8,807 488 9.00% due 05/01/21 -- 09/01/21........ 534 290 11.00% due 04/01/09................... 316 -------- 144,260 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 18.5% 39,727 6.50% due 12/15/28 -- 11/15/31........ 39,917 20,000 7.00% due 04/15/31 -- 09/15/31........ 20,455 14,279 7.50% due 04/15/22 -- 04/20/30........ 14,825 5,999 8.50% due 06/15/17 -- 04/15/30........ 6,383 309 9.00% due 01/15/25 -- 12/15/25........ 335 1,215 9.50% due 10/15/09 -- 11/15/09........ 1,333 52 10.00% due 05/15/13................... 58 23 12.50% due 03/15/15 -- 08/15/15....... 27 -------- 83,333 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 4.2% 10,975 3.50% due 01/15/11.................... 10,937 7,393 4.25% due 01/15/10.................... 7,755 -------- 18,692 -------- Total U.S. treasuries & federal agencies............................. $357,281 ======== SHORT-TERM SECURITIES -- 11.1% REPURCHASE AGREEMENT -- 11.1% $ 50,081 Joint Repurchase Agreement (See Note 2(d)) 1.635% due 01/02/02.................. $ 50,081 -------- Total short-term securities........... $ 50,081 ========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total collateralized mortgage obligations (cost $75,362).......... 17.1% $ 77,215 Total corporate notes (cost $10,037)............................ 2.3 10,275 Total U.S. treasuries & federal agencies (cost $355,298)............ 79.3 357,281 Total short-term securities (cost $50,081)............................ 11.1 50,081 ----- ---------- Total investment in securities (total cost $490,778)...................... 109.8 494,852 Cash, receivables and other assets.... 0.7 3,221 Payable for securities purchased...... (10.0) (45,043) Payable for Fund shares redeemed...... (0.0) (191) Other liabilities..................... (0.5) (2,115) ----- ---------- Net assets............................ 100.0% $ 450,724 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 800,000 shares authorized; 390,546 shares outstanding................................. $ 39,055 Capital surplus............................... 394,923 Accumulated undistributed net investment income...................................... 20,951 Accumulated net realized loss on investments................................. (8,279) Unrealized appreciation of investments........ 4,074 ---------- Net assets.................................... $ 450,724 ==========
Class IA Net asset value per share ($424,603 / 367,833 shares outstanding) (600,000 shares authorized).................................... $ 1.15 ====== Class IB Net asset value per share ($26,121 / 22,713 shares outstanding) (200,000 shares authorized).................................... $ 1.15 ======
@ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $505 or 0.1% of net assets. ### The ratings associated with the corresponding bond holdings were obtained from Moody's as of December 31, 2001, unless another source is noted for a particular security. The bond ratings are unaudited.
The accompanying notes are an integral part of this financial statement. 86 - -------------------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- COMMERCIAL PAPER -- 65.9% $ 20,000 Abbey National North America 1.92% due 02/12/02................ $ 19,955 30,000 Abbey National North America 2.39% due 02/05/02................ 29,930 20,000 American Express Credit Corp. 2.35% due 01/28/02................ 19,965 15,000 American Express Credit Corp. 2.96% due 04/22/02................ 14,863 17,500 Anheuser-Busch Cos., Inc. 3.56% due 05/06/02................ 17,284 19,000 Anheuser-Busch Cos., Inc. 3.68% due 04/03/02................ 18,821 20,000 Bradford & Bingley Building PLC 1.88% due 03/04/02................ 19,935 20,000 Bradford & Bingley Building PLC 2.08% due 01/28/02................ 19,969 50,000 Coca-Cola Co. (The) 1.81% due 03/04/02................ 49,844 50,000 Federal Home Loan Bank 1.99% due 01/30/02................ 49,920 35,000 Federal National Mortgage Association 1.83% due 05/02/02................ 34,785 15,000 Federal National Mortgage Association 3.74% due 03/22/02................ 14,875 31,000 Freddie Mac 3.67% due 03/15/02................ 30,769 9,000 Freddie Mac 3.68% due 03/28/02................ 8,921 10,000 Freddie Mac 3.75% due 03/27/02................ 9,911 50,000 Gannett Co., Inc. 1.97% due 01/09/02................ 49,981 10,000 General Electric Capital Corp. 2.02% due 02/06/02................ 9,980 25,000 General Electric Capital Corp. 2.05% due 03/25/02................ 24,882 15,000 General Electric Capital Corp. 2.96% due 04/10/02................ 14,878 30,000 Gillette Co. (The) 2.05% due 01/29/02................ 29,952 20,000 Gillette Co. (The) 2.96% due 03/13/02................ 19,883 15,000 Goldman Sachs Group, Inc. (The) 1.85% due 04/08/02................ 14,925 35,000 Heinz (HJ) Finance PLC 2.45% due 02/01/02................ 34,926 15,000 KFW International Finance, Inc. 2.80% due 03/07/02................ 14,924 20,000 KFW International Finance, Inc. 3.68% due 04/05/02................ 19,808 30,000 Lehman Brothers Holdings, Inc. 2.01% due 08/21/02................ 29,611 37,300 Merck & Co., Inc. 1.76% due 01/14/02................ 37,276
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- $ 6,890 Monsanto Co. 2.10% due 03/28/02................ $ 6,855 35,700 Monsanto Co. 2.10% due 04/03/02................ 35,508 20,000 Morgan Stanley Dean Witter & Co. 2.03% due 01/15/02................ 19,984 30,000 Nationwide Building Society 1.77% due 03/19/02................ 29,886 15,000 Nordea North America, Inc. 2.01% due 02/26/02................ 14,953 35,000 Nordea North America, Inc. 2.76% due 03/19/02................ 34,793 30,000 Pfizer, Inc. 2.05% due 01/23/02................ 29,962 10,000 Procter & Gamble Co. (The) 1.74% due 03/27/02................ 9,959 40,000 Procter & Gamble Co. (The) 1.98% due 03/14/02................ 39,842 25,000 Salomon Smith Barney Holdings 1.77% due 01/02/02................ 24,999 35,000 SBC Communications, Inc. 1.82% due 04/09/02................ 34,827 40,000 State Street Corp. 1.77% due 01/02/02................ 39,998 14,000 Svenska Handelsbanken, Inc. 2.42% due 03/06/02................ 13,940 22,000 Svenska Handelsbanken, Inc. 3.35% due 03/08/02................ 21,865 35,000 Swedbank 3.49% due 04/29/02................ 34,600 35,000 Toronto-Dominion Holdings Corp. 3.65% due 04/11/02................ 34,645 10,000 Toyota Motor Credit Corp. 2.02% due 01/11/02................ 9,994 30,000 UBS Finance (Delaware), Inc. 1.86% due 06/06/02................ 29,758 15,000 United Technologies Corp. 2.50% due 04/22/02................ 14,884 35,000 United Technologies Corp. 2.85% due 03/22/02................ 34,778 15,000 Verizon Global Funding 2.30% due 01/07/02................ 14,994 35,000 Verizon Global Funding 2.50% due 04/30/02................ 34,711 25,000 Walt Disney Co. (The) 3.57% due 03/08/02................ 24,836 18,000 Washington Post Co. 1.78% due 04/02/02................ 17,919 32,000 Washington Post Co. 1.87% due 02/13/02................ 31,926 30,000 Westpac Capitol Corp. 3.70% due 04/05/02................ 29,710 ---------- Total commercial paper............. $1,330,899 ==========
The accompanying notes are an integral part of this financial statement. 87 - -------------------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- CORPORATE NOTES -- 21.9% $ 13,000 Bank of America Corp. 2.166% due 02/11/02............... $ 13,002 5,500 Bank One Corp. 2.581% due 01/07/02............... 5,500 @5,000 Cargill, Inc. 2.49% due 01/22/02................ 5,000 @11,000 Cargill, Inc. 2.57% due 01/14/02................ 11,001 30,000 Caterpillar Financial Services, Inc. 2.276% due 02/28/02............... 30,009 10,000 Chase Manhattan Corp. 2.48% due 01/29/02................ 10,002 14,200 Chase Manhattan Corp. 2.486% due 04/23/02............... 14,208 19,00 Citicorp 2.50% due 02/21/02................ 19,010 20,000 Deere (John) Capital Corp. 2.38% due 01/14/02................ 19,999 13,500 Fleet National Bank 2.09% due 03/06/02................ 13,503 11,000 Fleet National Bank 2.355% due 02/01/02............... 11,002 16,000 General Motors Acceptance Corp. 2.53% due 01/15/02................ 16,000 15,000 Goldman Sachs Group, Inc. (The) 1.943% due 03/21/02............... 15,000 19,500 Hewlett-Packard Co. 2.556% due 10/15/02............... 19,500 @30,000 Honda Motor Corp. 2.115% due 02/08/02............... 30,000 @20,000 Honda Motor Corp. 2.511% due 10/09/02............... 20,000 11,500 Merrill Lynch & Co., Inc. 2.36% due 01/28/02................ 11,501 27,000 Merrill Lynch & Co., Inc. 2.52% due 10/21/02................ 27,048 10,000 Morgan (J.P.) Chase & Co., Inc. 1.92% due 01/08/02................ 9,996 9,000 Morgan (J.P.) Chase & Co., Inc. 2.51% due 01/28/02................ 9,002 30,000 PNC Bank N.A. 2.415% due 01/24/02............... 30,003
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- $ 3,000 Salomon Smith Barney Holdings 2.493% due 07/24/02............... $ 3,003 10,000 Texeco, Inc. 2.003% due 09/09/02............... 10,000 40,000 Toyota Motor Credit Corp. 2.43% due 10/11/02................ 39,994 40,000 Unilever Capital Corp. 2.473% due 10/24/02............... 40,046 9,000 Wells Fargo & Co. 2.43% due 04/26/02................ 9,005 ---------- Total corporate notes.............. $ 442,334 ========== REPURCHASE AGREEMENT -- 12.4% $250,310 Joint Repurchase Agreement (See Note 2(d)) 1.635% due 01/02/02............... $ 250,310 ---------- Total repurchase agreement......... $ 250,310 ==========
DIVERSIFICATION OF NET ASSETS: Total commercial paper (cost $1,330,899)......................... 65.9% $1,330,899 Total corporate notes (cost $442,334)........................... 21.9 442,334 Total repurchase agreements (cost $250,310)........................... 12.4 250,310 ----- ---------- Total investment in securities (total cost $2,023,543)............. 100.2 2,023,543 Cash, receivables and other assets.... 0.3 6,838 Payable for Fund shares redeemed...... (0.4) (7,710) Dividends payable..................... (0.1) (2,997) Other liabilities..................... (0.0) (25) ----- ---------- Net assets............................ 100.0% $2,019,649 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 4,000,000 shares authorized; 2,019,649 shares outstanding.......................... $ 201,965 Capital surplus............................... 1,817,684 ---------- Net assets.................................... $2,019,649 ==========
Class IA Shares of benefical interest outstanding, $0.10 par value 3,000,000 shares authorized (Net assets $1,867,520).................... 1,867,520 ========== Net asset value.............................. $1.00 ========== Class IB Shares of benefical interest outstanding, $0.10 par value 1,000,000 shares authorized (Net assets $152,129)...................... 152,129 ========== Net asset value.............................. $1.00 ==========
@ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2001, the market value of these securities amounted to $66,001 or 3.3% of net assets. The accompanying notes are an integral part of this financial statement. 88 (This page intentionally left blank) 89 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL GLOBAL FINANCIAL COMMUNICATIONS SERVICES HLS FUND HLS FUND -------------- ---------------- INVESTMENT INCOME: Dividends................................................. $ 89 $ 222 Interest.................................................. 20 20 Securities lending........................................ 9 8 Less: Foreign tax withheld................................ (6) (16) ------- ------- Total investment income, net............................ 112 234 ------- ------- EXPENSES: Investment advisory fees.................................. 56 77 Administrative services fees.............................. 17 24 Accounting services....................................... 2 2 Custodian fees, gross..................................... 4 9 Board of Directors fees................................... -- -- Distribution fees -- Class IB............................. 3 4 Other expenses............................................ 1 2 ------- ------- Total expenses (before waivers and offsets)............. 83 118 Custodian fees offset..................................... -- 3 Distribution fees -- Class IB waived...................... 1 1 ------- ------- Total expenses, net..................................... 82 114 ------- ------- Net investment income (loss).............................. 30 120 ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... (3,329) (911) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... 2 (18) Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ 18 (29) Net unrealized appreciation (depreciation) of investments............................................. (450) 157 Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.............................. 1 2 Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 9 34 Net unrealized appreciation (depreciation) of option contracts............................................... -- -- ------- ------- Net realized and unrealized gain (loss) on investments.... (3,749) (765) ------- ------- Net increase (decrease) in net assets resulting from operations.............................................. $(3,719) $ (645) ======= =======
* From inception, April 30, 2001, to December 31, 2001. The accompanying notes are an integral part of these financial statements. 90 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL GLOBAL GLOBAL HARTFORD INTERNATIONAL SMALL CAPITAL HEALTH TECHNOLOGY FOCUS SMALL COMPANY COMPANY APPRECIATION HLS FUND HLS FUND HLS FUND* HLS FUND* HLS FUND, INC. HLS FUND* -------- ----------------- --------- ------------- -------------- --------------------- $ 1,318 $ 61 $ 136 $ 52 $ 3,060 $ 53 263 217 75 6 2,530 20 119 86 -- -- 607 -- (43) -- -- (6) (2) (6) ------- -------- ------ --------- --------- ------- 1,657 364 211 52 6,195 67 ------- -------- ------ --------- --------- ------- 1,133 598 96 17 4,137 31 349 184 30 5 1,584 9 35 18 3 1 159 1 22 10 9 2 33 5 1 -- -- -- 3 -- 54 32 8 1 117 3 15 8 4 1 78 1 ------- -------- ------ --------- --------- ------- 1,609 850 150 27 6,111 50 3 8 1 -- 12 -- 15 9 3 -- 33 1 ------- -------- ------ --------- --------- ------- 1,591 833 146 27 6,066 49 ------- -------- ------ --------- --------- ------- 66 (469) 65 25 129 18 ------- -------- ------ --------- --------- ------- 5,462 (54,789) 540 (66) (173,169) (951) -- -- -- -- (2,378) -- 53 (7) -- 18 1 (56) -- -- -- -- -- -- (91) 19 -- (36) (29) 64 3,141 28,022 1,471 (158) 27,854 848 -- -- -- -- -- -- (1) -- -- -- -- (1) 1 -- -- -- 1 (4) -- -- -- -- -- -- ------- -------- ------ --------- --------- ------- 8,565 (26,755) 2,011 (242) (147,720) (100) ------- -------- ------ --------- --------- ------- $ 8,631 $(27,224) $2,076 $ (217) $(147,591) $ (82) ======= ======== ====== ========= ========= =======
91 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD CAPITAL HARTFORD APPRECIATION MIDCAP VALUE HLS FUND, INC. HLS FUND* ---------------- ------------ INVESTMENT INCOME: Dividends................................................. $ 86,550 $ 368 Interest.................................................. 29,253 64 Securities lending........................................ 2,319 -- Less: Foreign tax withheld................................ (1,083) (5) --------- ------- Total investment income, net............................ 117,039 427 --------- ------- EXPENSES: Investment advisory fees.................................. 40,702 194 Administrative services fees.............................. 18,743 62 Accounting services....................................... 1,876 6 Custodian fees, gross..................................... 1,131 16 Board of Directors fees................................... 38 -- Distribution fees -- Class IB............................. 639 17 Other expenses............................................ 952 3 --------- ------- Total expenses (before waivers and offsets)............. 64,081 298 Custodian fees offset..................................... 87 1 Distribution fees -- Class IB waived...................... 179 6 --------- ------- Total expenses, net..................................... 63,815 291 --------- ------- Net investment income (loss).............................. 53,224 136 --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... (304,352) (666) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... 18,848 (1) Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ (3,329) (7) Net unrealized appreciation (depreciation) of investments............................................. (475,348) 7,902 Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.............................. 15 1 Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 86 -- Net unrealized appreciation (depreciation) of option contracts............................................... -- -- --------- ------- Net realized and unrealized gain (loss) on investments.... (764,080) 7,229 --------- ------- Net increase (decrease) in net assets resulting from operations.............................................. $(710,856) $ 7,365 ========= =======
* From inception, April 30, 2001, to December 31, 2001. The accompanying notes are an integral part of these financial statements. 92 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL GLOBAL HARTFORD HARTFORD GROWTH AND MIDCAP OPPORTUNITIES LEADERS STOCK INDEX INCOME HLS FUND,INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND -------------- -------------- -------------- -------------- -------------- ---------- $ 11,052 $ 19,857 $ 7,426 $ 103,677 $ 28,040 $ 5,130 3,237 2,644 1,179 7,024 533 447 795 1,212 244 261 179 92 (86) (2,364) (503) -- (126) (3) -------- --------- --------- ----------- ----------- --------- 14,998 21,349 8,346 110,962 28,626 5,666 -------- --------- --------- ----------- ----------- --------- 8,623 5,600 2,977 21,947 4,272 2,362 3,647 2,229 1,096 17,209 4,272 852 365 223 110 1,722 428 85 16 877 199 40 41 13 7 5 2 35 9 2 234 60 99 508 78 80 172 112 61 891 219 39 -------- --------- --------- ----------- ----------- --------- 13,064 9,106 4,544 42,352 9,319 3,433 10 9 9 5 4 2 65 17 28 142 22 22 -------- --------- --------- ----------- ----------- --------- 12,989 9,080 4,507 42,205 9,293 3,409 -------- --------- --------- ----------- ----------- --------- 2,009 12,269 3,839 68,757 19,333 2,257 -------- --------- --------- ----------- ----------- --------- (89,236) (209,814) (123,906) (285,528) 74,173 (31,687) -- -- -- -- (3,891) (2,478) -- (777) (301) (2) -- -- -- -- -- -- -- 289 (16) (2,455) 121 1 (7) -- 3,427 (21,621) 15,455 (985,086) (391,939) (4,680) -- -- -- -- 382 75 -- (344) 10 -- -- -- -- 21 (7) -- -- -- -- -- -- -- -- (146) -------- --------- --------- ----------- ----------- --------- (85,825) (234,990) (108,628) (1,270,615) (321,282) (38,627) -------- --------- --------- ----------- ----------- --------- $(83,816) $(222,721) $(104,789) $(1,201,858) $ (301,949) $ (36,370) ======== ========= ========= =========== =========== =========
93 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD DIVIDEND AND VALUE GROWTH HLS FUND* HLS FUND, INC. --------- -------------- INVESTMENT INCOME: Dividends................................................. $ 261 $ 69,888 Interest.................................................. 24 5,267 Securities lending........................................ -- 438 Less: Foreign tax withheld................................ (1) (391) ------ --------- Total investment income, net............................ 284 75,202 ------ --------- EXPENSES: Investment advisory fees.................................. 92 14,541 Administrative services fees.............................. 29 6,432 Accounting services....................................... 3 644 Custodian fees, gross..................................... 7 19 Board of Directors fees................................... -- 13 Distribution fees -- Class IB............................. 8 219 Other expenses............................................ 2 299 ------ --------- Total expenses (before waivers and offsets)............. 141 22,167 Custodian fees offset..................................... -- 6 Distribution fees -- Class IB waived...................... 3 61 ------ --------- Total expenses, net..................................... 138 22,100 ------ --------- Net investment income (loss).............................. 146 53,102 ------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... 94 167,478 Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... -- -- Net realized gain (loss) on option contracts.............. -- 146 Net realized gain (loss) on foreign currency transactions............................................ -- (1) Net unrealized appreciation (depreciation) of investments............................................. 1,256 (356,142) Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- 2 Net unrealized appreciation (depreciation) of option contracts............................................... -- (105) ------ --------- Net realized and unrealized gain (loss) on investments.... 1,350 (188,622) ------ --------- Net increase (decrease) in net assets resulting from operations.............................................. $1,496 $(135,520) ====== =========
* From inception, April 30, 2001, to December 31, 2001. ** Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 94 - --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC.** HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------- -------------- ---------- -------------- -------------- -------------- $ 3,035 $ 95,939 $ 68 $ 206 $ -- $ -- 8,074 302,526 12,588 85,939 22,754 68,445 122 5,385 56 949 -- -- (288) -- (2) (83) -- -- -------- --------- -------- -------- ------- ------- 10,943 403,850 12,710 87,011 22,754 68,445 -------- --------- -------- -------- ------- ------- 1,998 54,937 696 3,847 930 4,213 714 25,442 242 2,728 744 3,370 71 2,546 24 273 74 337 241 117 11 51 11 36 1 51 -- 5 1 6 22 962 33 212 29 253 35 1,234 10 120 32 123 -------- --------- -------- -------- ------- ------- 3,082 85,289 1,016 7,236 1,821 8,338 12 65 9 27 10 33 6 269 9 59 8 71 -------- --------- -------- -------- ------- ------- 3,064 84,955 998 7,150 1,803 8,234 -------- --------- -------- -------- ------- ------- 7,879 318,895 11,712 79,861 20,951 60,211 -------- --------- -------- -------- ------- ------- (46,690) (305,999) (2,414) 52,623 7,088 21 (2,918) -- -- -- -- -- (1,420) (2) (32) (358) -- -- (37) -- -- -- -- -- 2,016 1 22 (719) -- -- 10,637 (657,976) (8,686) (23,605) (2,561) -- 28 -- -- -- -- -- 6,780 -- -- -- -- -- (619) -- (5) (3) -- -- (189) -- -- -- -- -- -------- --------- -------- -------- ------- ------- (32,412) (963,976) (11,115) 27,938 4,527 21 -------- --------- -------- -------- ------- ------- $(24,533) $(645,081) $ 597 $107,799 $25,478 $60,232 ======== ========= ======== ======== ======= =======
95 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL GLOBAL FINANCIAL COMMUNICATIONS SERVICES HLS FUND HLS FUND -------------- ---------------- OPERATIONS: Net investment income (loss).............................. $ 30 $ 120 Net realized gain (loss) on investments................... (3,309) (958) Net unrealized appreciation (depreciation) of investments............................................. (440) 193 ------- ------- Net increase (decrease) in net assets resulting from operations.............................................. (3,719) (645) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (43) (62) Class IB................................................ (7) (11) From net realized gain on investments Class IA................................................ -- -- Class IB................................................ -- -- ------- ------- Total distributions..................................... (50) (73) ------- ------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 2,046 5,837 Class IB................................................ 1,005 2,497 ------- ------- Net increase (decrease) from capital share transactions... 3,051 8,334 ------- ------- Net increase (decrease) in net assets..................... (718) 7,616 NET ASSETS: Beginning of period....................................... 9,981** 9,992** ------- ------- End of period............................................. $ 9,263 $17,608 ======= ======= Accumulated undistributed net investment income (loss).... $ 8 $ 35 ======= =======
* From inception April 30, 2001, to December 31, 2001 ** These amounts represents seed money deposited in Hartford Global Communications HLS Fund and Hartford Global Financial Services HLS Fund on December 27, 2000. The accompanying notes are an integral part of these financial statements. 96 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL HARTFORD GLOBAL HARTFORD INTERNATIONAL SMALL CAPITAL GLOBAL HEALTH TECHNOLOGY FOCUS SMALL COMPANY COMPANY APPRECIATION HLS FUND HLS FUND HLS FUND* HLS FUND* HLS FUND HLS FUND* ------------- ------------ ------------- ------------- ------------ ------------- $ 66 $ (469) $ 65 $ 25 $ 129 $ 18 5,424 (54,777) 540 (84) (175,575) (943) 3,141 28,022 1,471 (158) 27,855 843 -------- -------- ------- ------- -------- -------- 8,631 (27,224) 2,076 (217) (147,591) (82) -------- -------- ------- ------- -------- -------- -- -- (55) (8) -- (11) -- -- (11) (1) -- (4) -- -- -- -- (55,117) -- -- -- -- -- (3,553) -- -------- -------- ------- ------- -------- -------- -- -- (66) (9) (58,670) (15) -------- -------- ------- ------- -------- -------- 71,873 38,694 31,457 4,583 32,931 10,166 24,528 12,700 8,304 784 28,101 4,975 -------- -------- ------- ------- -------- -------- 96,401 51,394 39,761 5,367 61,032 15,141 -------- -------- ------- ------- -------- -------- 105,032 24,170 41,771 5,141 (145,229) 15,044 132,880 78,616 -- -- 949,853 -- -------- -------- ------- ------- -------- -------- $237,912 $102,786 $41,771 $ 5,141 $804,624 $ 15,044 ======== ======== ======= ======= ======== ======== $ 26 $ -- $ -- $ (1) $ -- $ 10 ======== ======== ======= ======= ======== ========
97 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD CAPITAL HARTFORD APPRECIATION MIDCAP VALUE HLS FUND, INC. HLS FUND* -------------- ------------ OPERATIONS: Net investment income (loss).............................. $ 53,224 $ 136 Net realized gain (loss) on investments................... (288,833) (674) Net unrealized appreciation (depreciation) of investments............................................. (475,247) 7,903 ---------- -------- Net increase (decrease) in net assets resulting from operations.............................................. (710,856) 7,365 ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (58,347) (111) Class IB................................................ (2,187) (19) From net realized gain on investments Class IA................................................ (2,589,918) -- Class IB................................................ (72,932) -- ---------- -------- Total distributions..................................... (2,723,384) (130) ---------- -------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 2,491,922 89,590 Class IB................................................ 352,203 23,668 ---------- -------- Net increase (decrease) from capital share transactions... 2,844,125 113,258 ---------- -------- Net increase (decrease) in net assets..................... (590,115) 120,493 NET ASSETS: Beginning of period....................................... 9,717,956 -- ---------- -------- End of period............................................. $9,127,841 $120,493 ========== ======== Accumulated undistributed net investment income (loss).... $ 5,832 $ (1) ========== ========
* From inception April 30, 2001, to December 31, 2001. The accompanying notes are an integral part of these financial statements. 98 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL GLOBAL HARTFORD HARTFORD GROWTH AND MIDCAP OPPORTUNITIES LEADERS STOCK INDEX INCOME HLS FUND, INC HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND -------------- -------------- -------------- -------------- -------------- ---------- $ 2,009 $ 12,269 $ 3,839 $ 68,757 $ 19,333 $ 2,257 (89,252) (213,046) (124,086) (285,529) 70,275 (33,876) 3,427 (21,944) 15,458 (985,086) (391,557) (4,751) ---------- --------- --------- ----------- ---------- -------- (83,816) (222,721) (104,789) (1,201,858) (301,949) (36,370) ---------- --------- --------- ----------- ---------- -------- -- (1,384) (2,848) (63,165) (17,644) -- -- (67) (225) (1,835) (356) -- (218,450) (154,454) (5,702) (641,294) (37,072) (15,880) (13,029) (3,867) (469) (15,953) (573) (1,363) ---------- --------- --------- ----------- ---------- -------- (231,479) (159,772) (9,244) (722,247) (55,645) (17,243) ---------- --------- --------- ----------- ---------- -------- 291,842 (9,160) 19,281 126,867 (57,388) 85,938 81,370 10,573 30,383 177,261 34,127 35,484 ---------- --------- --------- ----------- ---------- -------- 373,212 1,413 49,664 304,128 (23,261) 121,422 ---------- --------- --------- ----------- ---------- -------- 57,917 (381,080) (64,369) (1,619,977) (380,855) 67,809 1,824,794 1,345,291 598,386 9,726,095 2,403,272 394,803 ---------- --------- --------- ----------- ---------- -------- $1,882,711 $ 964,211 $ 534,017 $ 8,106,118 $2,022,417 $462,612 ========== ========= ========= =========== ========== ======== $ 1,990 $ 8,428 $ 388 $ 3,412 $ 1,287 $ 2,255 ========== ========= ========= =========== ========== ========
99 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2001 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD VALUE DIVIDEND AND HLS GROWTH FUND* HLS FUND, INC. -------- -------------- OPERATIONS: Net investment income (loss).............................. $ 146 $ 53,102 Net realized gain (loss) on investments................... 94 167,623 Net unrealized appreciation (depreciation) of investments............................................. 1,256 (356,245) ------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. 1,496 (135,520) ------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (117) (49,560) Class IB................................................ (29) (2,179) From net realized gain on investments Class IA................................................ (144) (201,137) Class IB................................................ (42) (5,550) ------- ---------- Total distributions..................................... (332) (258,426) ------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 39,853 384,922 Class IB................................................ 11,694 128,373 ------- ---------- Net increase (decrease) from capital share transactions... 51,547 513,295 ------- ---------- Net increase (decrease) in net assets..................... 52,711 119,349 NET ASSETS: Beginning of period....................................... -- 3,225,272 ------- ---------- End of period............................................. $52,711 $3,344,621 ======= ========== Accumulated undistributed net investment income (loss).... $ -- $ 2,031 ======= ==========
* From inception April 30, 2001, to December 31, 2001 ** Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 100 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE MONEY ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MARKET HLS FUND, INC.** HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------- -------------- ---------- -------------- -------------- -------------- $ 7,879 $ 318,895 $ 11,712 $ 79,861 $ 20,951 $ 60,211 (49,049) (306,000) (2,424) 51,546 7,088 21 16,637 (657,976) (8,691) (23,608) (2,561) -- -------- ----------- -------- ---------- -------- ---------- (24,533) (645,081) 597 107,799 25,478 60,232 -------- ----------- -------- ---------- -------- ---------- (2,429) (352,611) (71) (59,005) (19,519) (57,052) (71) (8,681) -- (3,698) (585) (3,180) (20,636) (617,329) -- -- -- -- (547) (19,622) -- -- -- -- -------- ----------- -------- ---------- -------- ---------- (23,683) (998,243) (71) (62,703) (20,104) (60,232) -------- ----------- -------- ---------- -------- ---------- (5,675) 5,781 60,484 473,934 108,462 625,245 8,192 312,558 23,334 118,328 24,915 115,859 -------- ----------- -------- ---------- -------- ---------- 2,517 318,339 83,818 592,262 133,377 741,104 -------- ----------- -------- ---------- -------- ---------- (45,699) (1,324,985) 84,344 637,358 138,751 741,104 389,448 13,682,754 68,601 1,064,594 311,973 1,278,545 -------- ----------- -------- ---------- -------- ---------- $343,749 $12,357,769 $152,945 $1,701,952 $450,724 $2,019,649 ======== =========== ======== ========== ======== ========== $ (658) $ 218,556 $ 11,683 $ 80,851 $ 20,951 $ -- ======== =========== ======== ========== ======== ==========
101 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL HEALTH GLOBAL TECHNOLOGY HLS FUND* HLS FUND* ------------- ----------------- OPERATIONS: Net investment income (loss).............................. $ 236 $ (171) Net realized gain (loss) on investments................... 2,831 (12,703) Net unrealized appreciation (depreciation) of investments............................................. 16,854 (25,548) -------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 19,921 (38,422) -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (256) -- Class IB................................................ (15) -- From net realized gain on investments Class IA................................................ (2,914) -- Class IB................................................ (220) -- -------- -------- Total distributions..................................... (3,405) -- -------- -------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 107,970 106,858 Class IB................................................ 8,394 10,180 -------- -------- Net increase (decrease) from capital share transactions... 116,364 117,038 -------- -------- Net increase (decrease) in net assets..................... 132,880 78,616 NET ASSETS: Beginning of period....................................... -- -- -------- -------- End of period............................................. $132,880 $ 78,616 ======== ======== Accumulated undistributed net investment income (loss).... $ (2) $ -- ======== ========
* From inception May 1, 2000, to December 31, 2000. The accompanying notes are an integral part of these financial statements. 102 - --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD SMALL COMPANY CAPITAL APPRECIATION MIDCAP OPPORTUNITIES GLOBAL LEADERS STOCK INDEX HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. -------------- -------------------- -------------- -------------- -------------- -------------- -------------- $ (9) $ 59,836 $ (1,096) $ 17,827 $ 2,841 $ 59,645 $ 19,306 (22,797) 2,667,437 190,562 113,522 (35,518) 681,114 37,451 (134,858) (1,658,277) 29,809 (386,603) (16,403) (1,415,711) (307,023) --------- ----------- ---------- ---------- --------- ----------- ---------- (157,664) 1,068,996 219,275 (255,254) (49,080) (674,952) (250,266) --------- ----------- ---------- ---------- --------- ----------- ---------- -- (62,140) -- (21,816) (2,812) (61,375) (19,512) -- (727) -- (198) (109) (761) (119) (117,755) (1,266,215) (56,118) (171,516) (2,622) (1,024,729) (24,784) (3,080) (7,838) (520) (1,224) (38) (8,655) (37) --------- ----------- ---------- ---------- --------- ----------- ---------- (120,835) (1,336,920) (56,638) (194,754) (5,581) (1,095,520) (44,452) --------- ----------- ---------- ---------- --------- ----------- ---------- 421,643 1,881,017 938,959 198,402 445,754 1,943,031 98,949 39,207 118,867 50,484 18,858 27,549 105,713 17,594 --------- ----------- ---------- ---------- --------- ----------- ---------- 460,850 1,999,884 989,443 217,260 473,303 2,048,744 116,543 --------- ----------- ---------- ---------- --------- ----------- ---------- 182,351 1,731,960 1,152,080 (232,748) 418,642 278,272 (178,175) 767,502 7,985,996 672,714 1,578,039 179,744 9,447,823 2,581,447 --------- ----------- ---------- ---------- --------- ----------- ---------- $ 949,853 $ 9,717,956 $1,824,794 $1,345,291 $ 598,386 $ 9,726,095 $2,403,272 ========= =========== ========== ========== ========= =========== ========== $ -- $ 265 $ 1 $ 781 $ (196) $ 1 $ (4) ========= =========== ========== ========== ========= =========== ==========
103 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD HARTFORD DIVIDEND AND GROWTH AND INCOME GROWTH HLS HLS FUND FUND, INC. ----------------- -------------- OPERATIONS: Net investment income (loss).............................. $ 1,374 $ 51,664 Net realized gain (loss) on investments................... 11,716 208,473 Net unrealized appreciation (depreciation) of investments............................................. (35,267) 51,412 -------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. (22,177) 311,549 -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (1,380) (50,034) Class IB................................................ (45) (498) From net realized gain on investments Class IA................................................ (5,261) (282,315) Class IB................................................ (104) (1,888) -------- ---------- Total distributions..................................... (6,790) (334,735) -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 205,939 5,708 Class IB................................................ 15,959 18,931 -------- ---------- Net increase (decrease) from capital share transactions... 221,898 24,639 -------- ---------- Net increase (decrease) in net assets..................... 192,931 1,453 NET ASSETS: Beginning of period....................................... 201,872 3,223,819 -------- ---------- End of period............................................. $394,803 $3,225,272 ======== ========== Accumulated undistributed net investment income (loss).... $ -- $ 1,732 ======== ==========
The accompanying notes are an integral part of these financial statements. 104 - --------------------------------------------------------------------------------
HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------- -------------- ---------- -------------- -------------- -------------- $ 10,987 $ 341,298 $ 5,130 $ 65,244 $ 20,105 $ 67,800 19,276 636,933 (2,318) (10,657) (1,678) (33) (57,829) (1,081,161) (2,073) 58,901 11,569 -- -------- ----------- ------- ---------- -------- ---------- (27,566) (102,930) 739 113,488 29,996 67,767 -------- ----------- ------- ---------- -------- ---------- (22,528) (108,406) (4,909) (4,427) (2,172) (66,782) (231) (1,821) (181) (94) (2) (985) (26,883) (1,188,034) -- -- -- -- (97) (15,623) -- -- -- -- -------- ----------- ------- ---------- -------- ---------- (49,739) (1,313,884) (5,090) (4,521) (2,174) (67,767) -------- ----------- ------- ---------- -------- ---------- 65,319 745,076 17,561 (52,284) (56,720) (15,161) 5,276 134,279 2,558 13,233 1,094 27,466 -------- ----------- ------- ---------- -------- ---------- 70,595 879,355 20,119 (39,051) (55,626) 12,305 -------- ----------- ------- ---------- -------- ---------- (6,710) (537,459) 15,768 69,916 (27,804) 12,305 396,158 14,220,213 52,833 994,678 339,777 1,266,240 -------- ----------- ------- ---------- -------- ---------- $389,448 $13,682,754 $68,601 $1,064,594 $311,973 $1,278,545 ======== =========== ======= ========== ======== ========== $ (2,890) $ 261,292 $ 79 $ 62,016 $ 20,105 $ -- ======== =========== ======= ========== ======== ==========
105 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 ($000 OMITTED) - -------------------------------------------------------------------------------- 1. ORGANIZATION: The Hartford HLS Mutual Funds serve as the underlying investment vehicles for certain variable annuity and variable life insurance separate accounts and group pension contracts of Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company (collectively, The Hartford Life Insurance Companies) as well as certain qualified retirement plans. The Hartford Life Insurance Companies are affiliates of the Funds. Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford Global Advisers HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Money Market HLS Fund, Inc., and Hartford Series Fund, Inc. (comprised of thirteen portfolios, twelve are included in these financial statements; they are Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Focus HLS Fund, Hartford International Small Company HLS Fund, Hartford International Capital Appreciation HLS Fund, Hartford MidCap Value HLS Fund, Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund, Hartford Value HLS Fund, Hartford High Yield HLS Fund. The thirteenth portfolio has not been offered to the public and is not included in these financial statements.) Each "Fund" or together the "Funds" are organized under the laws of the State of Maryland and are registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, as amended, as diversified open-end management investment companies, except for Hartford Global Communications HLS Fund, Hartford Financial Services HLS Fund, Hartford Global Health HLS Fund and Hartford Global Technology HLS Fund which are non-diversified. The Funds, which have different investment goals and policies, are described below. Hartford Global Communications HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of communications companies worldwide. Hartford Global Financial Services HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of financial services companies worldwide. Hartford Global Health HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of health care companies worldwide. Hartford Global Technology HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of technology companies worldwide. Hartford Focus HLS Fund Seeks long-term capital appreciation by investing primarily in equity securities of a relatively small number of large capitalization companies. Hartford International Small Company HLS Fund Seeks capital appreciation by investing at least 80% of its total assets in equity securities of foreign issuers, including non-dollar securities, with market capitalizations of under $8 billion. Hartford Small Company HLS Fund, Inc. Seeks growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation by investing at least 65% of its total assets in common stocks of companies with market capitalizations within the range represented by the Russell 2000 Index.
106 - -------------------------------------------------------------------------------- Hartford International Capital Appreciation HLS Seeks capital appreciation by investing at least 80% of Fund its total assets in equity securities of foreign issuers, including non-dollar securities. Hartford Capital Appreciation HLS Fund, Inc. Seeks growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation by investing at least 65% of its total assets in common stocks of small, medium and large companies. Hartford MidCap Value HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in equity securities of companies with market capitalizations equaling or exceeding $500 million but not exceeding the largest market capitalization of the Russell Mid-Cap Index Range. Hartford MidCap HLS Fund, Inc. Seeks long-term growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation by investing at least 65% of its total assets in common stocks of companies with market capitalizations within the range represented by the Standard & Poor's MidCap 400 Index. Hartford International Opportunities HLS Fund, Seeks growth of capital by investing at least 65% of Inc. its assets in stocks issued by non-U.S. companies which trade in foreign markets. Hartford Global Leaders HLS Fund Seeks growth of capital by investing at least 65% of its total assets in common stocks of high-quality growth companies worldwide. Hartford Stock HLS Fund, Inc. Seeks long-term growth of capital, with income as a secondary consideration, by investing at least 65% of its total assets in the common stocks of high-quality growth companies. Hartford Index HLS Fund, Inc. Seeks to approximate the price and yield performance that are within the range of Standard & Poor's Composite Stock Price Index. Hartford Growth and Income HLS Fund Seeks growth of capital and current income by investing primarily in stocks with earnings growth potential and steady or rising dividends. Hartford Value HLS Fund Seeks long-term total return by investing at least 80% of its total assets in equity securities of companies with market capitalizations above $3 billion. Hartford Dividend and Growth HLS Fund, Inc. Seeks a high level of current income consistent with growth of capital by investing primarily in stocks. Hartford Global Advisers HLS Fund, Inc. (formerly Seeks maximum long-term total rate of return through a Hartford International Advisers HLS Fund, Inc.) diversified portfolio of securities covering a broad range of countries, industries and companies. Hartford Advisers HLS Fund, Inc. Seeks maximum long-term total return by investing in common stocks and other equity securities, debt securities and money market instruments. Hartford High Yield HLS Fund Seeks high current income by investing in non-investment grade debt securities. Growth of capital is a secondary objective.
107 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- Hartford Bond HLS Fund, Inc. Seeks a high level of current income, consistent with a competitive total return, as compared to bond funds with similar investment objectives and policies, by investing primarily in debt securities. Hartford Mortgage Securities HLS Fund, Inc. Seeks maximum current income by investing primarily in mortgage-related securities, including securities issued by U.S. Government agencies. Hartford Money Market HLS Fund, Inc. Seeks maximum current income consistent with liquidity and preservation of capital.
Each Fund is divided into Class IA and IB shares. Each class is offered at net asset value without a sales charge and is subject to the same expenses except that the Class IB shares are subject to distribution fees charged pursuant to a Rule 12b-1 plan. Distribution and Service Plans have been adopted in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended. 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 (the day the order to buy or sell is executed). Security gains and losses are determined on the basis of identified cost. b) Security Valuation--Equity securities are valued at the last sales price reported on principal securities exchanges 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 occurred on a particular day and in the case of certain equity securities traded over-the-counter, then such securities are valued at the mean between the bid and asked prices. Securities quoted in foreign currencies are translated into U.S. dollars at the prevailing 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 their fair values under the direction of the Funds' Board of Directors. 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 Hartford Money Market HLS Fund, Inc. 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 purchased with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Short-term investments purchased with a maturity of more than 60 days are valued based on market quotations until the remaining days to maturity become less than 61 days. From such time until maturity, the investments are valued at amortized cost 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 the 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 the results of operations resulting from changes in the foreign exchange rates on investments 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 108 - -------------------------------------------------------------------------------- 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) Repurchase Agreements -- A repurchase agreement is an agreement by which the seller of a security agrees to repurchase the security sold at a mutually agreed upon time and price. At the time the Funds enter into a repurchase agreement, the value of the underlying collateral security(ies), including accrued interest, will be equal to or exceed the value of the repurchase agreement. Securities 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 handled through the Fund's custodian, State Street Bank. Certain Funds, together with other investment management companies having investment advisory agreements with Wellington Management Company, LLP (Wellington) have an interest in a $1,661,280 joint repurchase agreement dated 12/31/01 with State Street Bank, 1.677% due 01/02/02. This joint repurchase agreement is collateralized by $1,481,087 U.S. Treasury Bonds 6.00% - 9.125% due 11/15/07 - 05/15/30, $41,402 U.S. Treasury Notes 6.50% due 02/15/10 and $183,605 U.S. Treasury Bills 0.00% due 02/21/02. The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Hartford Global Communications HLS Fund............ $ 689 Hartford Global Financial Services HLS Fund........ 792 Hartford Global Health HLS Fund.................... 8,739 Hartford Global Technology HLS Fund................ 2,932 Hartford Focus HLS Fund............................ 3,737 Hartford International Small Company HLS Fund...... 306 Hartford Small Company HLS Fund, Inc............... 41,519 Hartford International Capital Appreciation HLS Fund............................................. 1,000 Hartford Capital Appreciation HLS Fund, Inc........ 582,293 Hartford MidCap Value HLS Fund..................... 5,818 Hartford MidCap HLS Fund, Inc...................... 69,577 Hartford International Opportunities HLS Fund, Inc.............................................. 72,935 Hartford Global Leaders HLS Fund................... 17,705 Hartford Stock HLS Fund, Inc....................... 88,992 Hartford Growth and Income HLS Fund................ 15,454 Hartford Value HLS Fund............................ 1,873 Hartford Dividend and Growth HLS Fund, Inc......... 53,376 Hartford Global Advisers HLS Fund, Inc............. 28,214 Hartford Advisers HLS Fund, Inc.................... 92,054
Certain Funds, together with other investment management companies having investment advisory agreements with The Hartford Investment Management Company (HIMCO) have an interest in a $525,057 joint repurchase agreement dated 12/31/01 with State Street Bank, 1.635% due 01/02/02. This joint repurchase agreement is collateralized by $509,912 U.S. Treasury Bonds 5.25% - 8.75% due 02/15/10 - 02/15/29, and $15,192 U.S. Treasury Bills 0.00% due 05/16/02. The maturity amounts are as follows:
MATURITY FUND AMOUNT - ---- -------- Hartford Index HLS Fund, Inc........................ $ 15,254 Hartford High Yield HLS Fund........................ 15,204 Hartford Bond HLS Fund, Inc......................... 80,960 Hartford Mortgage Securities HLS Fund, Inc.......... 50,086 Hartford Money Market HLS Fund, Inc................. 250,333
109 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- e) Joint Trading Account -- Pursuant to an exemptive order issued by the SEC, the Funds may transfer uninvested cash balances into a joint trading account managed by HIMCO or Wellington. These balances may be invested in one or more repurchase agreements and/or short-term money market instruments. f) Futures, Options on Futures and Options Transactions -- A futures contract is an agreement between two parties to buy and sell a security at a set price on a future date. When the Funds enter into such contracts, they are required to deposit with their custodian an amount of "initial margin" of cash or U.S. Treasury bills. Subsequent payments, called maintenance margin, to and from the broker-dealer, are made on a daily basis as the price of the underlying debt security fluctuates, making the long and short positions in the futures contract more or less valuable (i.e., mark-to-market), which results in an unrealized gain or loss to the Funds. The market value of a traded futures contract is the last sale price. In the absence of a last sale price, the last offering price is used. In the absence of either of these prices, fair value is determined according to procedures established by the Funds' Board of Directors. The variation margin on futures contracts is included in cash, receivables and other assets as applicable, in the Fund's Statement of Net Assets. At any time prior to the 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 counter party risk, which may exceed the amounts recognized in the Statements of Net Assets. Change in the value of the futures contracts may decrease the effectiveness of the Fund's strategies and potentially result in loss. The premium paid by a Fund for the purchase of a call or put option is included in the Fund's Statement of Net Assets as cash, receivables and other assets and subsequently "marked-to-market" to reflect the current market value of the option purchased as of the end of the reporting period. If an option, which the Fund has purchased, expires on its stipulated expiration date, the Fund realizes a loss in the amount of the cost of the option. If the Fund enters into a closing transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the option. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security, which the Fund purchases upon exercise, will be increased by the premium originally paid to buy the call. The Funds may write covered options. "Covered" means that so long as the Fund is obligated as the writer of an option, it will own either the underlying securities or currency or an option to purchase or sell the same underlying securities or currency having an expiration date of the covered option at an exercise price equal to or less than the exercise price of the covered option, or will establish or maintain with its custodian for the term of the option a "segregated account" consisting of cash or other liquid securities having a value equal to the fluctuating market value of the option securities or currencies. The Fund receives a premium from writing a call or put option, which 110 - -------------------------------------------------------------------------------- increases the Fund's return if the option expires unexercised or is closed out at a net profit. The Funds' option activity was as follows for the year ended December 31, 2001:
OPTION CONTRACTS ACTIVITY DURING THE PERIOD ---------------------------------------------------------------------------- HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD GLOBAL ADVISERS INCOME HLS FUND, INC. GROWTH HLS FUND, INC. HLS FUND, INC. ---------------------- ---------------------- ------------------------ NUMBER OF PREMIUM NUMBER OF PREMIUM NUMBER OF CONTRACTS AMOUNTS CONTRACTS AMOUNTS CONTRACTS PREMIUM CALLS WRITTEN ---------- -------- ---------- -------- ----------- AMOUNTS ------------- --------- Beginning of the year.......... 1 $205 1 $176 1,740 $ 27 Written during the year........ 2 181 -- -- 22,400 305 Expired during the year........ (1) (97) (1) (81) -- -- Closed during the year......... (2) (289) @@-- (95) (24,140) (332) Exercised during the year...... -- -- -- -- -- -- ---- ---- ---- ---- ------- ----- Balance at the end of the year......................... -- $ -- -- $ -- -- $ -- ==== ==== ==== ==== ======= =====
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ------------------------ NUMBER OF CONTRACTS PREMIUM CALLS PURCHASED ----------- AMOUNTS --------------- --------- Beginning of the year....................................... 3,480 $ (33) Purchased during the year................................... -- -- Expired during the year..................................... -- -- Closed during the year...................................... (3,480) 33 Exercised during the year................................... -- -- ------- ----- Balance at the end of the year.............................. -- $ -- ======= =====
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ------------------------ NUMBER OF CONTRACTS PREMIUM PUTS WRITTEN ----------- AMOUNTS ------------ --------- Beginning of the year....................................... 1,740 $ 20 Written during the year..................................... 17,880 95 Expired during the year..................................... -- -- Closed during the year...................................... (11,340) (110) Exercised during the year................................... -- -- ------- ----- Balance at the end of the year.............................. 8,280 $ 5 ======= =====
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ------------------------ NUMBER OF CONTRACTS PREMIUM PUTS PURCHASED ----------- AMOUNTS -------------- --------- Beginning of the year....................................... -- $ -- Purchased during the year................................... 1,200 (20) Expired during the year..................................... -- -- Closed during the year...................................... -- -- Exercised during the year................................... -- -- ----- ----- Balance at the end of the year.............................. 1,200 $ (20) ===== =====
@@ Due to the presentation of the financial statements in thousands, the number of contracts rounds to zero. g) Forward Foreign Currency Contracts -- As of December 31, 2001, Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford International Small Company HLS Fund, Hartford 111 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap Value HLS Fund, Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund and Hartford Global Advisers HLS Fund, Inc. had entered into forward foreign currency exchange contracts that obligate the funds to repurchase/replace or sell currencies at specified future dates. The Funds enter into forward foreign currency contracts to hedge against adverse fluctuations in exchange rates between currencies. The forward foreign currency contracts' costs are included in cash, receivables and other assets or other liabilities, as applicable, in the Funds' Statement of Net Assets. Forward foreign currency contracts involve elements of markets risk in excess of the amount reflected in the Statement of Net Assets. In addition, risk may arise upon entering into these contracts from the potential inability of the counter-parties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. h) 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 its exposure to different underlying instruments and to gain exposure to markets that might be difficult to invest in through conventional securities. Indexed securities are shown at market value in the Statement of Net Assets, if applicable. 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. i) Securities Lending--The Funds, except for the Money Market HLS Fund, Inc., 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 securities 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 in recovery of the loaned securities or even loss of rights in the collateral should the borrower of the securities fail financially. As of December 31, 2001, the market value of the securities loaned and the market value of the collateral were as follows:
MARKET VALUE MARKET VALUE OF SECURITIES LOANED OF COLLATERAL FUND -------------------- ------------- ---- Hartford Global Communications HLS Fund..................... $ 1,930 $ 1,995 Hartford Global Financial Services HLS Fund................. 3,176 3,272 Hartford Global Health HLS Fund............................. 26,774 27,739 Hartford Global Technology HLS Fund......................... 7,147 7,534 Hartford Small Company HLS Fund, Inc........................ 83,882 88,014 Hartford Capital Appreciation HLS Fund, Inc................. 313,385 331,504 Hartford MidCap HLS Fund, Inc............................... 122,743 127,357 Hartford International Opportunities HLS Fund, Inc.......... 78,288 82,063 Hartford Global Leaders HLS Fund............................ 16,738 17,634 Hartford Stock HLS Fund, Inc................................ 89,588 94,116 Hartford Index HLS Fund, Inc................................ 47,401 49,640 Hartford Growth and Income HLS Fund......................... 14,341 14,742 Hartford Dividend and Growth HLS Fund, Inc.................. 78,301 80,718 Hartford Global Advisers HLS Fund, Inc...................... 4,359 4,596 Hartford Advisers HLS Fund, Inc............................. 1,535,068 1,568,006 Hartford High Yield HLS Fund................................ 14,301 14,663 Hartford Bond HLS Fund, Inc................................. 169,190 172,959
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 112 - -------------------------------------------------------------------------------- taxable net investment income and net realized capital gains to their shareholders or otherwise complying with the requirements of regulated investment companies. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements. k) Fund Share Valuation and Distributions to Shareholders--Orders for the Funds' shares are executed in accordance with the investment instructions of the contract holders. 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 ex-dividend data in the exercise of due 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). Orders for the purchase of a Fund's shares received prior to the close of the Exchange on any day on which the Fund is open for business are priced at the per-share net asset value determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Fund is not open for business, are priced at the next determined per-share net asset value. Dividends are declared by the Funds' Board of Directors based upon the investment performance of the respective Funds. The policy of all Funds except the Hartford Money Market HLS Fund, Inc. is to pay dividends from net investment income and distribute realized capital gains, if any, at least once a year. Hartford Money Market HLS Fund, Inc. seeks to maintain a stable net asset value per share of $1.00 by declaring a daily dividend from net investment income, including net short-term capital gains and losses, and by valuing its investments using the amortized cost method. Dividends are distributed monthly. Distributions from net investment income, realized capital gains and capital are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gains and losses, partnerships, losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions result in reclassifications to capital accounts (see Note 6). 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) Illiquid Securities--Each Fund is permitted to invest up to 15% of its net assets in illiquid securities, except for Money Market HLS Fund, Inc., 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, which may be determined to be liquid pursuant to policies and guidelines established by the Funds' Board of Directors. As of December 31, 2001, the Funds held the following illiquid securities:
PERCENTAGE ACQUISITION ACQUISITION MARKET OF FUND'S SECURITY DATE COST VALUE NET ASSETS FUND ----------------------------- ----------- ----------- ------- ------------- ---- Hartford Small Company HLS Fund, Inc. ....... Acclaim Entertainment, Inc. 07/27/01 $ 7,063 $10,399 1.3%
3. EXPENSES: a) Investment Management and Advisory Agreements--HL Investment Advisors, LLC (HL Advisors) an indirect wholly-owned subsidiary of The Hartford Financial Services Group, Inc. (The Hartford), serves as investment manager to the Funds pursuant to investment management agreements approved by each Fund's Board of Directors and shareholders. 113 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- The schedule below reflects the rates of compensation paid to HL Advisors for services rendered, a portion of which is used to compensate Wellington or HIMCO:
HARTFORD INDEX HLS FUND, INC. AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- All assets................... 0.200%
HARTFORD MORTGAGE SECURITIES HLS FUND, INC. AND HARTFORD MONEY MARKET HLS FUND, INC. AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- All assets................... 0.250%
HARTFORD STOCK HLS FUND, INC. AND HARTFORD BOND HLS FUND, INC. AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million........ 0.325% On next $250 million......... 0.300 On next $500 million......... 0.275 Over $1 billion.............. 0.250
HARTFORD SMALL COMPANY HLS FUND, INC., HARTFORD CAPITAL APPRECIATION HLS FUND, INC., HARTFORD MIDCAP HLS FUND, INC., HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC., HARTFORD GLOBAL LEADERS HLS FUND, HARTFORD GROWTH AND INCOME HLS FUND, HARTFORD DIVIDEND AND GROWTH HLS FUND, INC., HARTFORD GLOBAL ADVISERS HLS FUND, INC., HARTFORD ADVISERS HLS FUND, INC. AND HARTFORD HIGH YIELD HLS FUND AVERAGE DAILY NET ASSETS ANNUAL RATE - ------------------------ ----------- On first $250 million.............. 0.575% On next $250 million............... 0.525 On next $500 million............... 0.475 Over $1 billion.................... 0.425
HARTFORD MIDCAP VALUE HLS FUND AND HARTFORD VALUE HLS FUND AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million...... 0.625% On next $250 million....... 0.575 On next $500 million....... 0.525 Over $1 billion............ 0.475
HARTFORD GLOBAL COMMUNICATIONS HLS FUND, HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND, HARTFORD GLOBAL HEALTH HLS FUND, HARTFORD GLOBAL TECHNOLOGY HLS FUND, HARTFORD FOCUS HLS FUND, HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND AND HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND AVERAGE DAILY NET ASSETS ANNUAL RATE - ------------------------ ----------- On first $250 million.............. 0.650% On next $250 million............... 0.600 Over $500 million.................. 0.550
Pursuant to sub-advisory agreements between HL Advisors and Wellington, Wellington provides the day-to-day investment management services to the Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Focus HLS Fund, Hartford International Small Company HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap Value HLS Fund, Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Stock HLS Fund, Inc., Hartford Growth and Income HLS Fund, Hartford Value HLS Fund, Hartford Dividend and Growth HLS Fund, Inc., Hartford Global Advisers HLS Fund, Inc. and Hartford Advisers HLS Fund, Inc. 114 - -------------------------------------------------------------------------------- Pursuant to investment services agreements between HL Advisors and HIMCO, HIMCO provides the day-to-day investment management services to the Hartford Index HLS Fund, Inc., Hartford High Yield HLS Fund, Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc. and Hartford Money Market HLS Fund, Inc. HIMCO is a wholly-owned subsidiary of The Hartford. Wellington and HIMCO determine the purchase and sale of portfolio securities and place such orders for execution in the name of the respective Fund. In conjunction with their investment activity, Wellington and HIMCO regularly furnish reports to the Funds' Board of Directors concerning economic forecasts, investment strategy, portfolio activity and performance of the Funds. b) Administrative Services Agreement--Under the Administrative Services Agreement between Hartford Life Insurance Company (HL) and each of the Funds, HL provides administrative services to the Funds and receives monthly compensation at the annual rate of 0.20% of each Fund's average daily net assets. The Funds assume and pay certain other expenses (including, but not limited to, accounting, custodian, state taxes and directors' fees). Directors' fees represent remuneration paid or accrued to directors not affiliated with HL or any other related company. c) Operating Expenses--Allocable expenses of the Funds are charged to each Fund based on the ratio of the net assets of each fund to the combined net assets of the Funds. Non-allocable expenses are charged to each fund based on specific identification. d) Expense Offset--The Funds have entered into certain expense offset arrangements with the Custodian Bank. The amount of the Funds' expense reductions is shown on the accompanying Statements of Operations as Custodian fees expense offset. e) Distribution Plan for Class IB shares--Each Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act for the Class IB shares. Pursuant to the Distribution Plan, each Fund compensates the Distributor from assets attributable to the Class IB shares for services rendered and expenses borne in connection with activities primarily intended to result in the sale of the Class IB shares. Although the Distribution Plan provides that each Fund may pay annually up to 0.25% of the average daily net assets of a Fund attributable to its Class IB shares for activities primarily intended to result in the sale of Class IB shares, the Distributor has voluntarily agreed to waive 0.07% of the fee. This waiver may be withdrawn at any time after notice to shareholders. Under the terms of the Distribution Plan and the principal underwriting agreement, each Fund is authorized to make payments monthly to the Distributor which may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class IB shares for such entities' fees or expenses incurred or paid in that regard. 115 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- 4. AFFILIATE HOLDINGS: As of December 31, 2001, HL Advisors, LLC held direct interests in shares as follows:
PERCENT OF PERCENT OF CLASS IA TOTAL SHARES CLASS IB TOTAL SHARES FUND -------- ------------ -------- ------------ ---- Hartford Global Communications HLS Fund............. 9,000 74.68% 1,000 40.21% Hartford Global Financial Services HLS Fund......... 9,000 59.34% 1,000 27.61% Hartford Global Health HLS Fund..................... @@-- -- @@-- -- Hartford Focus HLS Fund............................. 2,700 8.50% 300 3.53% Hartford International Small Company HLS Fund....... 2,700 57.95% 300 36.64% Hartford International Capital Appreciation HLS Fund.............................................. 2,700 23.27% 300 5.08% Hartford MidCap Value HLS Fund...................... 2,700 2.82% 300 1.18% Hartford Value HLS Fund............................. 2,700 6.58% 300 2.49%
@@ Due to the presentation of the financial statements in thousands, the number of shares round to zero. 5. INVESTMENT TRANSACTIONS: For the year ended December 31, 2001, aggregate purchases and sales of investment securities (excludes short-term investments) were as follows:
COST OF SALES PURCHASES PROCEEDS FUND ---------- ---------- ---- Hartford Global Communications HLS Fund..................... $ 10,941 $ 7,834 Hartford Global Financial Services HLS Fund................. 22,926 13,817 Hartford Global Health HLS Fund............................. 196,644 104,885 Hartford Global Technology HLS Fund......................... 264,907 212,632 Hartford Focus HLS Fund..................................... 61,340 24,718 Hartford International Small Company HLS Fund............... 11,284 6,329 Hartford Small Company HLS Fund, Inc........................ 1,773,260 1,717,575 Hartford International Capital Appreciation HLS Fund........ 27,235 13,035 Hartford Capital Appreciation HLS Fund, Inc................. 8,815,989 8,080,107 Hartford MidCap Value HLS Fund.............................. 125,730 16,741 Hartford MidCap HLS Fund, Inc............................... 2,152,844 2,054,205 Hartford International Opportunities HLS Fund, Inc.......... 1,505,085 1,696,021 Hartford Global Leaders HLS Fund............................ 1,925,848 1,870,324 Hartford Stock HLS Fund, Inc................................ 3,271,802 3,311,224 Hartford Index HLS Fund, Inc................................ 111,037 185,123 Hartford Growth and Income HLS Fund......................... 460,013 354,428 Hartford Value HLS Fund..................................... 53,995 3,839 Hartford Dividend and Growth HLS Fund, Inc.................. 2,211,422 1,917,730 Hartford Global Advisers HLS Fund, Inc...................... 1,091,771 1,085,173 Hartford Advisers HLS Fund, Inc............................. 4,530,959 4,254,472 Hartford High Yield HLS Fund................................ 158,681 69,931 Hartford Bond HLS Fund, Inc................................. 2,936,074 2,399,431 Hartford Mortgage Securities HLS Fund, Inc.................. 1,071,954 849,883
116 - -------------------------------------------------------------------------------- 6. RECLASSIFICATION OF CAPITAL ACCOUNTS: In accordance with AICPA 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 per share of the Funds and are designed generally to present undistributed income and realized gains on a tax basis which is considered to be more informative to the shareholder. As of December 31, 2001, the Funds recorded the following reclassifications to increase (decrease) the accounts listed below.
ACCUMULATED ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED NET REALIZED NET INVESTMENT GAIN (LOSS) ON CAPITAL INCOME (LOSS) INVESTMENTS SURPLUS FUND -------------- -------------- ------- ---- Hartford Global Communications HLS Fund..................... 22 (20) (2) Hartford Global Financial Services HLS Fund................. (18) 19 (1) Hartford Global Health HLS Fund............................. (36) 36 -- Hartford Global Technology HLS Fund......................... 469 (12) (457) Hartford Focus HLS Fund..................................... 1 -- (1) Hartford International Small Company HLS Fund............... (17) 18 (1) Hartford Small Company HLS Fund, Inc. ...................... (129) 434 (305) Hartford International Capital Appreciation HLS Fund........ 7 (8) 1 Hartford Capital Appreciation HLS Fund, Inc. ............... 12,877 (12,872) (5) Hartford MidCap Value HLS Fund.............................. (7) 29 (22) Hartford MidCap HLS Fund, Inc. ............................. (20) 18 2 Hartford International Opportunities HLS Fund, Inc.......... (3,170) 3,176 (6) Hartford Global Leaders HLS Fund............................ (182) 179 3 Hartford Stock HLS Fund, Inc. .............................. (346) 346 -- Hartford Index HLS Fund, Inc. .............................. (42) 9 33 Hartford Growth and Income HLS Fund ........................ (2) -- 2 Hartford Dividend and Growth HLS Fund, Inc. ................ (1,064) 1,075 (11) Hartford Global Advisers HLS Fund, Inc. .................... (3,147) 3,071 76 Hartford Advisers HLS Fund, Inc. ........................... (339) 338 1 Hartford High Yield HLS Fund................................ (37) 38 (1) Hartford Bond HLS Fund, Inc. ............................... 1,677 (1,674) (3) Hartford Mortgage Securities HLS Fund, Inc. ................ (1) 1 --
117 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- 7. CAPITAL LOSS CARRY FORWARD: At December 31, 2001, the following Funds had capital loss carry forwards for U.S. Federal Tax purposes of approximately:
YEAR OF AMOUNT EXPIRATION FUND -------- ---------- - ---- Hartford Global Communications HLS Fund..................... $ 2,525 2009 Hartford Global Financial Services HLS Fund................. 608 2009 Hartford Global Technology HLS Fund......................... 42,708 2009 Hartford Global Technology HLS Fund......................... 64 2009 Hartford Small Company HLS Fund, Inc. ...................... 249,531 2009 Hartford International Capital Appreciation HLS Fund........ 821 2009 Hartford Capital Appreciation HLS Fund, Inc. ............... 256,284 2009 Hartford MidCap Value HLS Fund.............................. 248 2009 Hartford MidCap HLS Fund, Inc. ............................. 103,468 2009 Hartford International Opportunities HLS Fund, Inc. ........ 211,155 2009 Hartford Global Leaders HLS Fund............................ 158,795 2009 Hartford Stock HLS Fund, Inc. .............................. 287,370 2009 Hartford Growth and Income HLS Fund......................... 39,950 2009 Hartford Global Advisers HLS Fund, Inc. .................... 50,979 2009 Hartford Advisers HLS Fund, Inc. ........................... 280,994 2009 Hartford High Yield HLS Fund................................ 1,822 2009 Hartford High Yield HLS Fund................................ 2,132 2008 Hartford High Yield HLS Fund................................ 148 2007 Hartford Mortgage Securities HLS Fund, Inc. ................ 2,016 2008 Hartford Mortgage Securities HLS Fund, Inc. ................ 6,081 2007 Hartford Mortgage Securities HLS Fund, Inc. ................ 89 2002
For the fiscal year ended December 31, 2001, the following Funds have elected to defer losses occurring between November 1, 2001 and December 31, 2001 as follows:
CAPITAL CURRENCY LOSS DEFERRED LOSS DEFERRED FUND ------------- ------------- - ---- Hartford Global Communications HLS Fund..................... $ 397 $ -- Hartford Global Financial Services HLS Fund................. 210 -- Hartford Global Technology HLS Fund......................... 8,561 -- Hartford International Small Company HLS Fund............... 1 @@-- Hartford Small Company HLS Fund, Inc. ...................... -- @@-- Hartford Midcap HLS Fund, Inc. ............................. 12,049 -- Hartford International Opportunities HLS Fund, Inc. ........ 24,244 -- Hartford Value HLS Fund..................................... 2 -- Hartford Advisers HLS Fund, Inc. ........................... 23,237 -- Hartford High Yield HLS Fund................................ 294 11 Hartford Bond HLS Fund, Inc. ............................... -- 95 Hartford Mortgage Securities HLS Fund, Inc. ................ 36 --
Such deferred losses will be treated as arising on the first day of the fiscal year ending December 31, 2002. @@ Due to the presentation of the financial statements in thousands, the currency loss deferred rounds to zero. 118 - -------------------------------------------------------------------------------- 8. DISTRIBUTIONS TO SHAREHOLDERS: The tax character of distributions paid during 2001 was as follows:
ORDINARY LONG-TERM RETURN INCOME CAPITAL GAIN OF CAPITAL FUND -------- ------------ ---------- ---- Hartford Global Communications HLS Fund..................... $ 50 $ -- $-- Hartford Global Financial Services HLS Fund................. 73 -- -- Hartford Focus HLS Fund..................................... 66 -- -- Hartford International Small Company HLS Fund............... 9 -- -- Hartford Small Company HLS Fund, Inc. ...................... 9,067 49,603 -- Hartford International Capital Appreciation HLS Fund........ 15 -- -- Hartford Capital Appreciation HLS Fund, Inc. ............... 732,016 1,991,368 -- Hartford MidCap Value HLS Fund.............................. 130 -- -- Hartford MidCap HLS Fund, Inc. ............................. 192,583 38,896 -- Hartford International Opportunities HLS Fund, Inc. ........ 38,342 121,430 -- Hartford Global Leaders HLS Fund............................ 6,484 2,760 -- Hartford Stock HLS Fund, Inc. .............................. 224,556 497,691 -- Hartford Index HLS Fund, Inc. .............................. 18,000 37,645 -- Hartford Growth and Income HLS Fund ........................ 12,840 4,403 -- Hartford Value HLS Fund..................................... 332 -- -- Hartford Dividend and Growth HLS Fund, Inc. ................ 53,756 204,670 -- Hartford Global Advisers HLS Fund, Inc. .................... 7,343 16,340 -- Hartford Advisers HLS Fund, Inc. ........................... 567,094 431,149 -- Hartford High Yield HLS Fund................................ 71 -- -- Hartford Bond HLS Fund, Inc. ............................... 62,703 -- -- Hartford Mortgage Securities HLS Fund, Inc. ................ 20,104 -- -- Hartford Money Market HLS Fund, Inc. ....................... 60,232 -- --
119 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - -------------------------------------------------------------------------------- As of December 31, 2001, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED UNREALIZED ORDINARY LONG-TERM APPRECIATION INCOME CAPITAL GAIN (DEPRECIATION) FUND ------------- ------------- -------------- ---- Hartford Global Communications HLS Fund.................... $ 5 $ -- $ (869) Hartford Global Financial Services HLS Fund................ 37 -- 56 Hartford Global Health HLS Fund............................ 3,890 2,110 19,186 Hartford Global Technology HLS Fund........................ -- -- (13,685) Hartford Focus HLS Fund.................................... 548 -- 1,463 Hartford International Small Company HLS Fund.............. 53 -- (277) Hartford Small Company HLS Fund, Inc. ..................... -- -- 65,858 Hartford International Capital Appreciation HLS Fund....... 10 -- 713 Hartford Capital Appreciation HLS Fund, Inc. .............. 5,846 -- (32,815) Hartford MidCap Value HLS Fund............................. -- -- 7,505 Hartford MidCap HLS Fund, Inc. ............................ 1,990 -- 116,501 Hartford International Opportunities HLS Fund, Inc......... 8,467 -- (39,912) Hartford Global Leaders HLS Fund........................... 399 -- 26,521 Hartford Stock HLS Fund, Inc. ............................. 3,412 -- 499,054 Hartford Index HLS Fund, Inc. ............................. 1,349 73,521 280,808 Hartford Growth and Income HLS Fund ....................... 2,255 -- (21,084) Hartford Value HLS Fund.................................... --@@ -- 1,166 Hartford Dividend and Growth HLS Fund, Inc. ............... 2,031 167,933 110,169 Hartford Global Advisers HLS Fund, Inc. ................... 146 206 9,836 Hartford Advisers HLS Fund, Inc. .......................... 218,556 -- 1,021,886 Hartford High Yield HLS Fund............................... 11,693 -- (12,622) Hartford Bond HLS Fund, Inc. .............................. 95,011 9,630 (904) Hartford Mortgage Securities HLS Fund, Inc. ............... 20,951 -- 4,017 Hartford Money Market HLS Fund, Inc. ...................... 3,020 -- --
The difference between book basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on certain forward foreign currency contracts and on investments in passive foreign investment companies. @@ Due to the presentation of the financial statements in thousands, the undistributed ordinary income rounds to zero. 120 - -------------------------------------------------------------------------------- 9. CAPITAL SHARE TRANSACTIONS: The following information is for the year ended December 31, 2001:
HARTFORD GLOBAL HARTFORD GLOBAL COMMUNICATIONS FINANCIAL SERVICES HARTFORD GLOBAL HEALTH HLS FUND HLS FUND HLS FUND -------------------- ------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- ------- --------- --------- ---------- CLASS IA Shares sold........................ 4,471 $ 3,033 6,887 $ 6,498 81,617 $ 112,236 Shares issued on reinvestment of distributions.................... 17 11 27 25 -- -- Shares redeemed.................... (1,436) (998) (748) (686) (29,923) (40,363) -------- --------- ------- --------- -------- --------- Net Increase (Decrease)............ 3,052 $ 2,046 6,166 $ 5,837 51,694 $ 71,873 ======== ========= ======= ========= ======== =========
HARTFORD INTERNATIONAL HARTFORD GLOBAL HARTFORD FOCUS SMALL COMPANY TECHNOLOGY HLS FUND HLS FUND HLS FUND -------------------- ------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- ------- --------- --------- ---------- CLASS IA Shares sold........................ 231,789 $ 125,210 33,553 $ 33,160 6,762 $ 6,661 Shares issued on reinvestment of distributions.................... -- -- 48 51 3 3 Shares redeemed.................... (168,634) (86,516) (1,829) (1,754) (2,105) (2,081) -------- --------- ------- --------- -------- --------- Net Increase (Decrease)............ 63,155 $ 38,694 31,772 $ 31,457 4,660 $ 4,583 ======== ========= ======= ========= ======== =========
HARTFORD SMALL HARTFORD INTERNATIONAL HARTFORD CAPITAL COMPANY CAPITAL APPRECIATION APPRECIATION HLS FUND, INC. HLS FUND HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 526,268 $ 736,068 23,710 $ 20,261 215,404 $ 1,054,902 Shares issued on reinvestment of distributions..................... 41,341 55,117 10 8 623,445 2,648,265 Shares redeemed..................... (546,865) (758,254) (12,119) (10,103) (258,283) (1,211,245) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 20,744 $ 32,931 11,601 $ 10,166 580,566 $ 2,491,922 ======== ========= ======== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD MIDCAP HARTFORD MIDCAP OPPORTUNITIES VALUE HLS FUND HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 105,060 $ 98,613 341,294 $ 758,061 4,445,906 $ 4,865,092 Shares issued on reinvestment of distributions..................... 108 108 106,035 218,450 156,280 155,838 Shares redeemed..................... (9,359) (9,131) (323,058) (684,669) (4,586,859) (5,030,090) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 95,809 $ 89,590 124,271 $ 291,842 15,327 $ (9,160) ======== ========= ======== =========== ========== ===========
121 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD GLOBAL LEADERS HARTFORD STOCK HARTFORD INDEX HLS FUND HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 296,824 $ 433,293 90,735 $ 467,794 78,117 $ 263,472 Shares issued on reinvestment of distributions..................... 5,746 8,550 141,837 704,459 16,484 54,716 Shares redeemed..................... (292,111) (422,562) (209,043) (1,045,386) (114,232) (375,576) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 10,459 $ 19,281 23,529 $ 126,867 (19,631) $ (57,388) ======== ========= ======== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD VALUE HARTFORD DIVIDEND AND INCOME HLS FUND HLS FUND GROWTH HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 239,372 $ 288,363 41,384 $ 40,212 379,363 $ 756,321 Shares issued on reinvestment of distributions..................... 12,954 15,880 243 243 129,503 250,697 Shares redeemed..................... (183,929) (218,305) (624) (602) (313,532) (622,096) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 68,397 $ 85,938 41,003 $ 39,853 195,334 $ 384,922 ======== ========= ======== =========== ========== ===========
HARTFORD GLOBAL ADVISERS HARTFORD ADVISERS HARTFORD HIGH YIELD HLS FUND, INC. HLS FUND, INC. HLS FUND -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 116,092 $ 123,857 219,268 $ 540,178 230,682 $ 223,218 Shares issued on reinvestment of distributions..................... 22,582 23,065 407,221 969,940 75 71 Shares redeemed..................... (143,910) (152,597) (615,450) (1,504,337) (169,341) (162,805) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. (5,236) $ (5,675) 11,039 $ 5,781 61,416 $ 60,484 ======== ========= ======== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD BOND SECURITIES HARTFORD MONEY MARKET HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 595,757 $ 676,049 180,325 $ 207,351 10,370,478 $10,370,478 Shares issued on reinvestment of distributions..................... 53,709 59,005 17,510 19,519 57,052 57,052 Shares redeemed..................... (229,577) (261,120) (103,076) (118,408) (9,802,285) (9,802,285) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 419,889 $ 473,934 94,759 $ 108,462 625,245 $ 625,245 ======== ========= ======== =========== ========== ===========
122 - --------------------------------------------------------------------------------
HARTFORD GLOBAL COMMUNICATIONS HARTFORD GLOBAL FINANCIAL HARTFORD GLOBAL HEALTH HLS FUND SERVICES HLS FUND HLS FUND -------------------- -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- ---------- ------------- ---------- ----------- CLASS IB Shares sold......................... 1,628 $ 1,091 2,688 $ 2,557 19,749 $ 27,029 Shares issued on reinvestment of distributions..................... 6 4 9 8 -- -- Shares redeemed..................... (147) (90) (75) (68) (1,859) (2,501) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 1,487 $ 1,005 2,622 $ 2,497 17,890 $ 24,528 ======== ========= ======== =========== ========== ===========
HARTFORD GLOBAL HARTFORD FOCUS HARTFORD INTERNATIONAL TECHNOLOGY HLS FUND HLS FUND SMALL COMPANY HLS FUND -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 28,450 $ 15,683 8,730 $ 8,528 1,259 $ 1,211 Shares issued on reinvestment of distributions..................... -- -- 10 10 1 -- Shares redeemed..................... (5,899) (2,983) (252) (234) (441) (427) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 22,551 $ 12,700 8,488 $ 8,304 819 $ 784 ======== ========= ======== =========== ========== ===========
HARTFORD SMALL HARTFORD INTERNATIONAL HARTFORD CAPITAL COMPANY CAPITAL APPRECIATION APPRECIATION HLS FUND, INC. HLS FUND HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 39,777 $ 53,789 7,306 $ 6,141 61,778 $ 291,591 Shares issued on reinvestment of distributions..................... 2,675 3,553 4 3 17,726 75,119 Shares redeemed..................... (22,022) (29,241) (1,399) (1,169) (3,367) (14,507) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 20,430 $ 28,101 5,911 $ 4,975 76,137 $ 352,203 ======== ========= ======== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD MIDCAP HARTFORD MIDCAP OPPORTUNITIES VALUE HLS FUND HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 26,244 $ 24,497 35,352 $ 80,519 367,347 $ 415,835 Shares issued on reinvestment of distributions..................... 18 18 6,345 13,029 3,948 3,934 Shares redeemed..................... (927) (847) (5,984) (12,178) (361,563) (409,196) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 25,335 $ 23,668 35,713 $ 81,370 9,732 $ 10,573 ======== ========= ======== =========== ========== ===========
HARTFORD GLOBAL HARTFORD STOCK HARTFORD INDEX LEADERS HLS FUND HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 23,053 $ 35,468 33,247 $ 171,851 11,138 $ 37,412 Shares issued on reinvestment of distributions..................... 468 694 3,588 17,788 281 929 Shares redeemed..................... (3,971) (5,779) (2,605) (12,378) (1,289) (4,214) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 19,550 $ 30,383 34,230 $ 177,261 10,130 $ 34,127 ======== ========= ======== =========== ========== ===========
123 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD GROWTH AND HARTFORD VALUE HARTFORD DIVIDEND AND INCOME HLS FUND HLS FUND GROWTH HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 31,664 $ 38,911 12,264 $ 11,914 63,729 $ 125,383 Shares issued on reinvestment of distributions..................... 1,116 1,363 70 70 4,004 7,729 Shares redeemed..................... (4,117) (4,790) (301) (290) (2,510) (4,739) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 28,663 $ 35,484 12,033 $ 11,694 65,223 $ 128,373 ======== ========= ======== =========== ========== ===========
HARTFORD GLOBAL ADVISERS HARTFORD ADVISERS HARTFORD HIGH YIELD HLS FUND, INC. HLS FUND, INC. HLS FUND -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 11,447 $ 12,265 120,626 $ 299,224 40,980 $ 39,406 Shares issued on reinvestment of distributions..................... 607 618 11,802 28,303 -- -- Shares redeemed..................... (4,332) (4,691) (6,313) (14,969) (16,691) (16,072) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 7,722 $ 8,192 126,115 $ 312,558 24,289 $ 23,334 ======== ========= ======== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD BOND SECURITIES HARTFORD MONEY MARKET HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- --------- -------- ----------- ---------- ----------- CLASS IB Shares sold......................... 110,354 $ 124,874 23,049 $ 26,481 596,786 $ 596,786 Shares issued on reinvestment of distributions..................... 3,372 3,698 526 585 3,180 3,180 Shares redeemed..................... (9,042) (10,244) (1,873) (2,151) (484,107) (484,107) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 104,684 $ 118,328 21,702 $ 24,915 115,859 $ 115,859 ======== ========= ======== =========== ========== ===========
The following information is for the year ended December 31, 2000:
HARTFORD GLOBAL HEALTH HARTFORD GLOBAL HARTFORD SMALL COMPANY HLS FUND TECHNOLOGY HLS FUND HLS FUND, INC. ---------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ---------- -------- ----------- ---------- ----------- CLASS IA Shares sold......................... 95,116 $ 120,225 124,916 $ 118,442 630,883 $ 1,320,723 Shares issued on reinvestment of distributions..................... 2,193 3,170 -- -- 59,606 117,755 Shares redeemed..................... (11,653) (15,425) (13,030) (11,584) (497,910) (1,016,835) -------- --------- -------- ----------- ---------- ----------- Net Increase (Decrease)............. 85,656 $ 107,970 111,886 $ 106,858 192,579 $ 421,643 ======== ========= ======== =========== ========== ===========
124 - --------------------------------------------------------------------------------
HARTFORD CAPITAL HARTFORD INTERNATIONAL APPRECIATION HARTFORD MIDCAP OPPORTUNITIES HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ----------- ---------- ----------- CLASS IA Shares sold....................... 231,719 $ 1,481,026 585,015 $ 1,403,743 2,911,648 $ 4,663,819 Shares issued on reinvestment of distributions................... 224,607 1,328,355 23,769 56,118 124,985 193,332 Shares redeemed................... (145,797) (928,364) (217,251) (520,902) (2,903,270) (4,658,749) -------- ----------- -------- ----------- ---------- ----------- Net Increase (Decrease)........... 310,529 $ 1,881,017 391,533 $ 938,959 133,363 $ 198,402 ======== =========== ======== =========== ========== ===========
HARTFORD GLOBAL LEADERS HARTFORD STOCK HARTFORD GROWTH AND HLS FUND HLS FUND, INC. INCOME HLS FUND ------------------------ ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ -------- ----------- ---------- ----------- CLASS IA Shares sold....................... 287,140 $ 551,098 251,624 $ 1,571,846 200,076 $ 284,231 Shares issued on reinvestment of distributions................... 2,940 5,434 173,507 1,086,104 4,786 6,641 Shares redeemed................... (58,590) (110,778) (109,433) (714,919) (59,396) (84,933) -------- ----------- -------- ----------- ---------- ----------- Net Increase (Decrease)........... 231,490 $ 445,754 315,698 $ 1,943,031 145,466 $ 205,939 ======== =========== ======== =========== ========== ===========
HARTFORD DIVIDEND AND HARTFORD INDEX HARTFORD GLOBAL ADVISERS GROWTH HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ----------- ---------- ----------- CLASS IA Shares sold....................... 211,030 $ 440,545 100,765 $ 410,119 87,994 $ 116,771 Shares issued on reinvestment of distributions................... 168,458 332,349 11,190 44,296 40,505 49,411 Shares redeemed................... (370,178) (767,186) (87,375) (355,466) (77,325) (100,863) -------- ----------- -------- ----------- ---------- ----------- Net Increase (Decrease)........... 9,310 $ 5,708 24,580 $ 98,949 51,174 $ 65,319 ======== =========== ======== =========== ========== ===========
HARTFORD ADVISERS HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND HLS FUND, INC. ---------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ----------- ---------- ----------- CLASS IA Shares sold....................... 345,772 $ 957,673 36,855 $ 36,850 166,759 $ 172,712 Shares issued on reinvestment of distributions................... 480,213 1,296,440 5,226 4,909 4,294 4,427 Shares redeemed................... (536,574) (1,509,037) (24,188) (24,198) (223,527) (229,423) -------- ----------- -------- ----------- ---------- ----------- Net Increase (Decrease)........... 289,411 $ 745,076 17,893 $ 17,561 (52,474) $ (52,284) ======== =========== ======== =========== ========== ===========
HARTFORD MORTGAGE SECURITIES HARTFORD MONEY MARKET HLS FUND, INC. HLS FUND, INC. ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- CLASS IA Shares sold....................... 54,308 $ 57,862 8,049,574 $ 8,049,574 Shares issued on reinvestment of distributions................... 2,046 2,172 66,782 66,782 Shares redeemed................... (110,139) (116,754) (8,131,517) (8,131,517) -------- ----------- ---------- ----------- Net Increase (Decrease)........... (53,785) $ (56,720) (15,161) $ (15,161) ======== =========== ========== ===========
125 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2001 ($000'S OMITTED) - --------------------------------------------------------------------------------
HARTFORD GLOBAL HEALTH HARTFORD GLOBAL HARTFORD SMALL COMPANY HLS FUND TECHNOLOGY HLS FUND HLS FUND, INC. ---------------------- ---------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- -------- ----------- ---------- ----------- CLASS IB Shares sold....................... 7,397 $ 9,591 11,608 $ 10,237 27,819 $ 53,619 Shares issued on reinvestment of distributions................... 163 235 -- -- 1,561 3,080 Shares redeemed................... (1,073) (1,432) (72) (57) (9,702) (17,492) -------- ----------- -------- ----------- ---------- ----------- Net Increase (Decrease)........... 6,487 $ 8,394 11,536 $ 10,180 19,678 $ 39,207 ======== =========== ======== =========== ========== ===========
HARTFORD CAPITAL HARTFORD INTERNATIONAL APPRECIATION HARTFORD MIDCAP OPPORTUNITIES HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ------------------ ------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------- -------- --------- ---------- CLASS IB Shares sold.......................... 18,255 $113,399 21,275 $ 52,108 34,548 $ 50,609 Shares issued on reinvestment of distributions...................... 1,448 8,565 219 520 923 1,422 Shares redeemed...................... (501) (3,097) (900) (2,144) (23,494) (33,173) ------ -------- ------- -------- ------- -------- Net Increase (Decrease).............. 19,202 $118,867 20,594 $ 50,484 11,977 $ 18,858 ====== ======== ======= ======== ======= ========
HARTFORD GLOBAL HARTFORD STOCK HARTFORD GROWTH AND LEADERS HLS FUND HLS FUND, INC. INCOME HLS FUND, INC. ------------------ ------------------- --------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------- -------- -------- --------- CLASS IB Shares sold.......................... 15,113 $ 28,344 15,461 $ 99,239 11,806 $ 16,746 Shares issued on reinvestment of distributions...................... 82 147 1,509 9,416 109 149 Shares redeemed...................... (506) (942) (457) (2,942) (663) (936) ------ -------- ------- -------- ------- -------- Net Increase (Decrease).............. 14,689 $ 27,549 16,513 $105,713 11,252 $ 15,959 ====== ======== ======= ======== ======= ========
HARTFORD DIVIDEND HARTFORD AND GROWTH HARTFORD INDEX INTERNATIONAL ADVISERS HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ------------------ ------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------- -------- --------- ---------- CLASS IB Shares sold.......................... 9,211 $ 19,050 4,513 $ 18,190 4,675 $ 5,956 Shares issued on reinvestment of distributions...................... 1,200 2,386 41 156 278 328 Shares redeemed...................... (1,217) (2,505) (183) (752) (777) (1,008) ------ -------- ------- -------- ------- -------- Net Increase (Decrease).............. 9,194 $ 18,931 4,371 $ 17,594 4,176 $ 5,276 ====== ======== ======= ======== ======= ========
126 - --------------------------------------------------------------------------------
HARTFORD ADVISERS HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND HLS FUND, INC. ------------------ ------------------- ------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ -------- ------- -------- ------- -------- CLASS IB Shares sold.......................... 44,879 $124,887 2,447 $ 2,457 14,461 $ 15,148 Shares issued on reinvestment of distributions...................... 6,465 17,444 184 181 91 94 Shares redeemed...................... (2,896) (8,052) (71) (80) (1,946) (2,009) ------ -------- ------- -------- ------- -------- Net Increase (Decrease).............. 48,448 $134,279 2,560 $ 2,558 12,606 $ 13,233 ====== ======== ======= ======== ======= ========
HARTFORD MORTGAGE HARTFORD MONEY SECURITIES MARKET HLS FUND, INC. HLS FUND, INC. ------------------ ------------------- SHARES AMOUNT SHARES AMOUNT ------ -------- ------- -------- CLASS IB Shares sold.......................... 1,223 $ 1,339 92,669 $ 92,669 Shares issued on reinvestment of distributions...................... 1 2 985 985 Shares redeemed...................... (222) (247) (66,188) (66,188) ------ -------- ------- -------- Net Increase (Decrease).............. 1,002 $ 1,094 27,466 $ 27,466 ====== ======== ======= ========
10. LINE OF CREDIT: The Funds, except for Hartford Money Market HLS Fund, Inc., participate in a $500,000 committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the Funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment, which has not been utilized. During the year ended December 31, 2001, the Funds did not have any borrowings under this facility. 11. REVERSE STOCK SPLIT FOR CLASS B: On September 17, 1999, a reverse stock split was declared for the Class B shares of certain Funds, using the following reverse split percentages:
REVERSE SPLIT PERCENTAGE FUND ------------- - ---- Hartford Small Company HLS Fund, Inc........................ 74.613827% Hartford Capital Appreciation HLS Fund, Inc................. 15.418052 Hartford International Opportunities HLS Fund, Inc.......... 71.625006 Hartford Stock HLS Fund, Inc................................ 9.265642 Hartford Dividend and Growth HLS Fund, Inc.................. 44.378756 Hartford Advisers HLS Fund, Inc............................. 29.667722 Hartford Bond HLS Fund, Inc................................. 93.065183
127 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND For the Year Ended December 31, 2001 Class IA........................ $1.000 $0.003 $(0.359) $(0.356) $(0.004) Class IB........................ 1.000 0.002 (0.359) (0.357) (0.003) HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND For the Year Ended December 31, 2001 Class IA........................ 1.000 0.007 (0.063) (0.056) (0.004) Class IB........................ 1.000 0.004 (0.061) (0.057) (0.003) HARTFORD GLOBAL HEALTH HLS FUND For the Year Ended December 31, 2001 Class IA........................ 1.442 0.000 0.028 0.028 -- Class IB........................ 1.441 (0.003) 0.032 0.029 -- From inception May 1, 2000 through December 31, 2000 Class IA........................ 1.000 0.003 0.477 0.480 (0.003) Class IB........................ 1.000 0.003 0.475 0.478 (0.002) HARTFORD GLOBAL TECHNOLOGY HLS FUND For the Year Ended December 31, 2001 Class IA........................ 0.637 (0.002) (0.145) (0.147) -- Class IB........................ 0.636 (0.002) (0.144) (0.146) -- From inception May 1, 2000 through December 31, 2000 Class IA........................ 1.000 (0.001) (0.362) (0.363) -- Class IB........................ 1.000 (0.001) (0.363) (0.364) -- HARTFORD FOCUS HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ 1.000 0.002 0.040 0.042 (0.002) Class IB........................ 1.000 0.001 0.040 0.041 (0.001) HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ 1.000 0.005 (0.063) (0.058) (0.002) Class IB........................ 1.000 0.003 (0.062) (0.059) (0.001) HARTFORD SMALL COMPANY HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 1.687 0.001 (0.255) (0.254) -- Class IB........................ 1.683 (0.001) (0.249) (0.250) -- For the Year Ended December 31, 2000.......................... Class IA........................ 2.188 0.003 (0.254) (0.251) -- Class IB........................ 2.187 0.003 (0.257) (0.254) -- For the Year Ended December 31, 1999 Class IA........................ 1.321 (0.005) 0.875 0.870 -- Class IB........................ 1.323(6) (0.004)(6) 0.871(6) 0.867(6) --(6) For the Year Ended December 31, 1998 Class IA........................ 1.202 (0.002) 0.141 0.139 -- From inception April 1, 1998, through December 31, 1998 Class IB........................ 1.340(6) (0.002)(6) (0.015)(6) (0.017)(6) --(6) For the Year Ended December 31, 1997.......................... 1.069 0.001 0.195 0.196 (0.001) From inception, August 9, 1996 through December 31, 1996............. 1.000 0.002 0.069 0.071 (0.002) HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ 1.000 0.001 (0.140) (0.139) (0.001) Class IB........................ 1.000 0.001 (0.140) (0.139) (0.001) HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 5.926 0.021 (0.341) (0.320) (0.027) Class IB........................ 5.923 0.006 (0.327) (0.321) (0.023) For the Year Ended December 31, 2000 Class IA........................ 6.095 0.041 0.757 0.798 (0.039) Class IB........................ 6.098 (0.077) 0.864 0.787 (0.034) For the Year Ended December 31, 1999 Class IA........................ 4.759 0.023 1.643 1.666 (0.018) Class IB........................ 6.437(6) 0.150(6) 1.503(6) 1.653(6) (0.013)(6) For the Year Ended December 31, 1998 Class IA........................ 4.410 0.025 0.525 0.550 (0.026) From inception April 1, 1998, through December 31, 1998 Class IB........................ 6.486(6) 0.013(6) 0.094(6) 0.107(6) (0.156)(6) For the Year Ended December 31 1997............................ 3.914 0.020 0.794 0.814 (0.022) 1996............................ 3.490 0.022 0.655 0.677 (0.025) -- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND For the Year Ended December 31, 2001 Class IA........................ $ -- $ -- $ -- Class IB........................ -- -- -- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD GLOBAL HEALTH HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- From inception May 1, 2000 through December 31, 2000 Class IA........................ -- (0.035) -- Class IB........................ -- (0.035) -- HARTFORD GLOBAL TECHNOLOGY HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- From inception May 1, 2000 through December 31, 2000 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD FOCUS HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD SMALL COMPANY HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.103) -- Class IB........................ -- (0.103) For the Year Ended December 31, 2000.......................... -- Class IA........................ -- (0.250) -- Class IB........................ -- (0.250) For the Year Ended December 31, 1999 Class IA........................ -- (0.003) -- Class IB........................ --(6) (0.003)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.020) -- From inception April 1, 1998, through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31, 1997.......................... -- (0.062) -- From inception, August 9, 1996 through December 31, 1996............. -- -- -- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (1.609) -- Class IB........................ -- (1.609) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.928) -- Class IB........................ -- (0.928) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.312) -- Class IB........................ --(6) (1.979)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.175) -- From inception April 1, 1998, through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- (0.296) -- 1996............................ -- (0.228) --
- --------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (See Note 11). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 128 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - -------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET INCREASE NET ASSETS EXPENSES EXPENSES INVESTMENT (DECREASE) IN NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME TOTAL NET ASSETS VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE DISTRIBUTIONS VALUE END OF PERIOD RETURN (000'S OMITTED) AFTER WAIVERS BEFORE WAIVERS NET ASSETS ------------- ------------- ------------- ------ --------------- ------------- -------------- ---------- $(0.004) $(0.360) $0.640 (35.74)% $ 7,679 0.92% 0.92% 0.38% (0.003) (0.360) 0.640 (35.88) 1,584 1.10 1.17 0.20 (0.004) (0.060) 0.940 (5.72) 14,216 0.93 0.93 1.04 (0.003) (0.060) 0.940 (5.91) 3,392 1.11 1.18 0.86 -- 0.028 1.470 2.04 202,131 0.89 0.89 0.06 -- 0.029 1.470 1.86 35,781 1.07 1.14 (0.12) (0.038) 0.442 1.442 48.18(2) 123,533 0.90 0.90 0.59 (0.037) 0.441 1.441 48.00(2) 9,347 1.08 1.15 0.41 -- (0.147) 0.490 (22.81) 86,074 0.89 0.89 (0.49) -- (0.146) 0.490 (22.95) 16,712 1.07 1.14 (0.67) -- (0.363) 0.637 (37.37)(2) 71,276 0.92 0.92 (0.44) -- (0.364) 0.636 (37.45)(2) 7,340 1.10 1.17 (0.62) (0.002) 0.040 1.040 3.94(2) 32,968 0.95 0.95 0.47 (0.001) 0.040 1.040 3.83(2) 8,803 1.13 1.20 0.29 (0.002) (0.060) 0.940 (5.98)(2) 4,373 1.00 1.00 1.01 (0.001) (0.060) 0.940 (6.09)(2) 768 1.18 1.25 0.83 (0.103) (0.357) 1.330 (14.92) 745,253 0.76 0.76 0.03 (0.103) (0.353) 1.330 (15.07) 59,371 0.94 1.01 (0.15) (0.250) (0.501) 1.687 (13.12) 908,886 0.74 0.74 -- (0.250) (0.504) 1.683 (13.28) 40,967 0.92 0.99 (0.18) (0.003) 0.867 2.188 65.83 757,302 0.78 0.78 (0.45) (0.003)(6) 0.864(6) 2.187(6) 65.54 10,200 0.96 1.03 (0.63) (0.020) 0.119 1.321 11.62 350,734 0.77 0.77 (0.24) --(6) (0.017)(6) 1.323(6) (1.30)(2) 696 0.95(1) 0.95(1) (0.46)(1) (0.063) 0.133 1.202 18.38 210,769 0.77 0.77 0.08 (0.002) 0.069 1.069 7.15(2) 42,812 0.72(1) 0.88(1) 0.31(1)(3) (0.001) (0.140) 0.860 (13.98)(2) 9,969 1.00 1.00 0.42 (0.001) (0.140) 0.860 (14.08)(2) 5,075 1.18 1.25 0.24 (1.636) (1.956) 3.970 (6.94) 8,734,600 0.68 0.68 0.57 (1.632) (1.953) 3.970 (7.10) 393,241 0.86 0.93 0.39 (0.967) (0.169) 5.926 13.22 9,581,897 0.66 0.66 0.64 (0.962) (0.175) 5.923 13.02 136,058 0.84 0.91 0.46 (0.330) 1.336 6.095 37.46 7,963,003 0.66 0.66 0.46 (1.992)(6) (0.339)(6) 6.098(6) 37.21 22,993 0.84 0.91 0.28 (0.201) 0.349 4.759 15.48 5,807,480 0.64 0.64 0.59 (0.156)(6) (0.049)(6) 6.437(6) 1.65(2) 5,942 0.82(1) 0.82(1) 0.30(1) (0.318) 0.496 4.410 22.34 4,802,992 0.64 0.64 0.44 (0.253) 0.424 3.914 20.70 3,386,670 0.65 0.65 0.60 -- RATIOS AND SUPPLEMENTAL DATA -- PORTFOLIO TURNOVER RATE(7) --------- 95.0% 95.0 119.2 119.2 61.5 61.5 46.1 46.1 240.3 240.3 149.9 149.9 113.0 113.0 168.3 168.3 226.9 226.9 194.5 194.5 181.3 181.3 235.7 235.7 222.2 31.8 190.8 190.8 92.3 92.3 108.2 108.2 66.4 66.4 51.2 51.2 57.6 85.4
129 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- HARTFORD MIDCAP VALUE HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ $1.000 $0.001 $(0.010) $(0.009) $(0.001) Class IB........................ 1.000 0.001 (0.010) (0.009) (0.001) HARTFORD MIDCAP HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 2.467 0.003 (0.100) (0.097) -- Class IB........................ 2.462 -- (0.102) (0.102) -- For the Year Ended December 31, 2000 Class IA........................ 2.053 (0.001) 0.518 0.517 -- Class IB........................ 2.053 (0.001) 0.513 0.512 -- For the Year Ended December 31, 1999 Class IA........................ 1.439 -- 0.725 0.725 -- From inception, November 9, 1999 through December 31, 1999 Class IB........................ 1.758 -- 0.373 0.373 For the Year Ended December 31, 1998.......................... 1.137 (0.001) 0.303 0.302 -- From inception, July 15, 1997 through December 31, 1997..... 1.000 0.001 0.137 0.138 (0.001) HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 1.364 0.012 (0.264) (0.252) (0.001) Class IB........................ 1.365 0.012 (0.264) (0.252) (0.002) For the Year Ended December 31, 2000 Class IA........................ 1.876 0.018 (0.314) (0.296) (0.023) Class IB........................ 1.876 0.025 (0.324) (0.299) (0.019) For the Year Ended December 31, 1999 Class IA........................ 1.355 0.019 0.520 0.539 (0.018) Class IB........................ 1.357(6) 0.017(6) 0.519(6) 0.536(6) (0.017)(6) For the Year Ended December 31, 1998 Class IA........................ 1.294 0.021 0.147 0.168 (0.019) From inception April 1, 1998 through December 31, 1998 Class IB........................ 1.396(6) 0.004(6) (0.021)(6) (0.017)(6) (0.022)(6) For the Year Ended December 31 1997............................ 1.407 0.022 (0.019) 0.003 (0.012) 1996............................ 1.306 0.023 0.140 0.163 (0.025) HARTFORD GLOBAL LEADERS HLS FUND For the Year Ended December 31, 2001 Class IA........................ 1.759 0.011 (0.305) (0.294) (0.008) Class IB........................ 1.757 0.008 (0.302) (0.294) (0.006) For the Year Ended December 31, 2000 Class IA........................ 1.913 0.008 (0.142) (0.134) (0.009) Class IB........................ 1.912 (0.006) (0.130) (0.136) (0.008) For the Year Ended December 31, 1999 Class IA........................ 1.285 0.003 0.642 0.645 (0.003) Class IB........................ 1.285 0.007 0.634 0.641 -- From inception, September 30, 1998 through December 31, 1998 Class IA........................ 1.000 0.001 0.318 0.319 (0.002) Class IB........................ 1.000 0.002 0.316 0.318 (0.001) HARTFORD STOCK HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 5.880 0.041 (0.738) (0.697) (0.038) Class IB........................ 5.879 0.046 (0.758) (0.712) (0.032) For the Year Ended December 31, 2000 Class IA........................ 7.147 0.039 (0.500) (0.461) (0.041) Class IB........................ 7.151 0.074 (0.547) (0.473) (0.034) For the Year Ended December 31, 1999 Class IA........................ 6.562 0.050 1.143 1.193 (0.049) Class IB........................ 11.884(6) 0.021(6) 1.200(6) 1.221(6) (0.056)(6) For the Year Ended December 31, 1998 Class IA........................ 5.123 0.051 1.622 1.673 (0.050) From inception April 1, 1998 through December 31, 1998 Class IB........................ 10.793(6) 0.043(6) 1.565(6) 1.608(6) (0.517)(6) For the Year Ended December 31 1997............................ 4.143 0.050 1.196 1.246 (0.049) 1996............................ 3.527 0.060 0.763 0.823 (0.059) -- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD MIDCAP VALUE HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ $ -- $ -- $ -- Class IB........................ -- -- -- HARTFORD MIDCAP HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.280) -- Class IB........................ -- (0.280) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.103) -- Class IB........................ -- (0.103) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.111) -- From inception, November 9, 1999 through December 31, 1999 Class IB........................ (0.078) -- For the Year Ended December 31, 1998.......................... -- -- -- From inception, July 15, 1997 through December 31, 1997..... -- -- -- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.161) -- Class IB........................ -- (0.161) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.193) -- Class IB........................ -- (0.193) -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- Class IB........................ --(6) --(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.088) -- From inception April 1, 1998 through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- (0.104) -- 1996............................ -- (0.037) -- HARTFORD GLOBAL LEADERS HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- (0.017) -- Class IB........................ -- (0.017) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.011) -- Class IB........................ -- (0.011) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.014) -- Class IB........................ -- (0.014) -- From inception, September 30, 1998 through December 31, 1998 Class IA........................ -- (0.032) -- Class IB........................ -- (0.032) -- HARTFORD STOCK HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.405) -- Class IB........................ -- (0.405) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.765) -- Class IB........................ -- (0.765) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.559) -- Class IB........................ --(6) (5.898)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.184) -- From inception April 1, 1998 through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- (0.217) -- 1996............................ -- (0.148) --
- --------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (See Note 11). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 130 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - ---------------------------------------------------------------------------- NET INCREASE NET ASSETS (DECREASE) IN NET ASSET AT END OF TOTAL NET ASSETS VALUE AT TOTAL PERIOD DISTRIBUTIONS VALUE END OF PERIOD RETURN (000'S OMITTED) ------------- ------------- ------------- ------ --------------- $(0.001) $(0.010) $0.990 (0.41)%(2) $ 95,308 (0.001) (0.010) 0.990 (0.52)(2) 25,185 (0.280) (0.377) 2.090 (3.62) 1,765,315 (0.280) (0.382) 2.080 (3.79) 117,396 (0.103) 0.414 2.467 25.42 1,774,047 (0.103) 0.409 2.462 25.20 50,747 (0.111 0.614 2.053 51.81 672,678 (0.078) 0.295 2.053 21.39(2) 36 -- 0.302 1.439 26.57 143,494 (0.001) 0.137 1.137 13.81(2) 27,589 (0.162) (0.414) 0.950 (18.73) 941,934 (0.163) (0.415) 0.950 (18.88) 22,277 (0.216) (0.512) 1.364 (17.10) 1,326,609 (0.212) (0.511) 1.365 (17.25) 18,682 (0.018) 0.521 1.876 39.86 1,574,836 (0.017)(6) 0.519(6) 1.876(6) 39.61 3,203 (0.107) 0.061 1.355 13.16 1,196,694 (0.022)(6) (0.039)(6) 1.357(6) (1.13)(2) 663 (0.116) (0.113) 1.294 0.34 1,092,946 (0.062) 0.101 1.407 12.93 996,543 (0.025) (0.319) 1.440 (16.58) 484,661 (0.023) (0.317) 1.440 (16.73) 49,356 (0.020) (0.154) 1.759 (7.06) 572,517 (0.019) (0.155) 1.757 (7.22) 25,869 (0.017) 0.628 1.913 50.37 179,675 (0.014) 0.627 1.912 50.11 69 (0.034) 0.285 1.285 31.88(2) 5,761 (0.033) 0.285 1.285 31.82(2) 39 (0.443) (1.140) 4.740 (12.23) 7,834,643 (0.437) (1.149) 4.730 (12.39) 271,475 (0.806) (1.267) 5.880 (7.04) 9,590,018 (0.799) (1.272) 5.879 (7.21) 136,077 (0.608) 0.585 7.147 19.78 9,400,385 5.954(6) (4.733)(6) 7.151(6) 19.57 47,439 (0.234) 1.439 6.562 33.47 7,183,046 (0.517)(6) 1.091(6) 11.884(6) 14.91(2) 10,167 (0.266) 0.980 5.123 31.38 4,713,322 (0.207) 0.616 4.143 24.37 2,994,209 -- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------- RATIO OF RATIO OF RATIO OF NET EXPENSES EXPENSES INVESTMENT TO AVERAGE TO AVERAGE INCOME PORTFOLIO NET ASSETS NET ASSETS TO AVERAGE TURNOVER AFTER WAIVERS BEFORE WAIVERS NET ASSETS RATE(7) ------------- -------------- ---------- --------- 0.90% 0.90% 0.47% 32.3% 1.08 1.15 0.29 32.3 0.70 0.70 0.12 116.7 0.88 0.95 (0.06) 116.7 0.72 0.72 (0.08) 137.6 0.90 0.97 (0.26) 137.6 0.79 0.79 (0.15) 120.7 0.97(1) 1.04(1) (0.32)(1) 120.7 0.79 0.79 (0.15) 134.1 0.46(1) 0.86(1) 0.45(1)(3) 46.1 0.81 0.81 1.10 143.8 0.99 1.06 0.92 143.8 0.78 0.78 1.16 158.8 0.96 1.03 0.98 158.8 0.78 0.78 1.20 133.2 0.96 1.03 1.02 133.2 0.77 0.77 1.51 157.4 0.94(1) 0.94(1) 0.71(1) 157.4 0.77 0.77 1.48 72.7 0.79 0.79 1.74 70.0 0.81 0.81 0.71 362.9 0.99 1.06 0.53 362.9 0.81 0.81 0.63 366.6 0.99 1.06 0.45 366.6 0.86 0.91 0.54(3) 207.4 1.04 1.16 0.36(3) 207.4 0.89(1) 1.46(1) 0.63(1)(3) 47.9 0.98(1) 1.55(1) 0.59(1)(3) 47.9 0.49 0.49 0.80 38.7 0.67 0.74 0.62 38.7 0.48 0.48 0.64 40.2 0.66 0.73 0.46 40.2 0.48 0.48 0.80 38.5 0.66 0.73 0.62 38.5 0.46 0.46 0.95 27.1 0.65(1) 0.65(1) 0.73(1) 27.1 0.45 0.45 1.11 31.6 0.46 0.46 1.59 42.3
131 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- HARTFORD INDEX HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $3.725 $0.031 $(0.488) $(0.457) $(0.029) Class IB........................ 3.720 0.030 (0.486) (0.456) (0.025) For the Year Ended December 31, 2000 Class IA........................ 4.189 0.030 (0.424) (0.394) (0.031) Class IB........................ 4.189 0.037 (0.439) (0.402) (0.028) For the Year Ended December 31, 1999 Class IA........................ 3.570 0.034 0.685 0.719 (0.040) From inception November 9, 1999 through December 31, 1999 Class IB........................ 3.922 0.004 0.298 0.302 (0.032) For the Year Ended December 31, 1998.......................... 2.878 0.032 0.759 0.791 (0.027) 1997............................ 2.382 0.035 0.692 0.727 (0.035) 1996............................ 2.028 0.044 0.393 0.437 (0.044) HARTFORD GROWTH AND INCOME HLS FUND For the Year Ended December 31, 2001 Class IA........................ 1.326 0.006 (0.112) (0.106) -- Class IB........................ 1.323 0.005 (0.108) (0.103) -- For the Year Ended December 31, 2000 Class IA........................ 1.432 0.005 (0.085) (0.080) (0.005) Class IB........................ 1.430 (0.008) (0.074) (0.082) (0.004) For the Year Ended December 31, 1999 Class IA........................ 1.186 0.004 0.255 0.259 (0.004) Class IB........................ 1.185 0.006 0.250 0.256 (0.002) From inception, May 31, 1998 through December 31, 1998 Class IA........................ 1.000 0.005 0.185 0.190 (0.004) Class IB........................ 1.000 0.009 0.179 0.188 (0.003) HARTFORD VALUE HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ 1.000 0.003 (0.006) (0.003) (0.003) Class IB........................ 1.000 0.002 (0.006) (0.004) (0.002) HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 2.124 0.031 (0.114) (0.083) (0.030) Class IB........................ 2.124 0.039 (0.124) (0.085) (0.028) For the Year Ended December 31, 2000 Class IA........................ 2.149 0.035 0.178 0.213 (0.034) Class IB........................ 2.151 0.040 0.169 0.209 (0.032) For the Year Ended December 31, 1999 Class IA........................ 2.160 0.034 0.075 0.109 (0.035) Class IB........................ 2.267(6) 0.024(6) 0.077(6) 0.101(6) (0.034)(6) For the Year Ended December 31, 1998 Class IA........................ 1.952 0.033 0.280 0.313 (0.035) From inception April 1, 1998, through December 31, 1998 Class IB........................ 2.253(6) 0.016(6) 0.068(6) 0.084(6) (0.070)(6) For the Year Ended December 31 1997............................ 1.547 0.035 0.445 0.480 (0.031) 1996............................ 1.317 0.034 0.258 0.292 (0.034) HARTFORD GLOBAL ADVISERS HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 1.149 0.023 (0.091) (0.068) (0.008) Class IB........................ 1.147 0.044 (0.121) (0.077) (0.007) For the Year Ended December 31, 2000 Class IA........................ 1.397 0.046 (0.134) (0.088) (0.071) Class IB........................ 1.397 0.048 (0.138) (0.090) (0.071) For the Year Ended December 31, 1999 Class IA........................ 1.155 0.040 0.227 0.267 (0.025) From inception November 9, 1999 through December 31, 1999 Class IB........................ 1.300 0.004 0.118 0.122 (0.025) For the Year Ended December 31 1998............................ 1.175 0.064 0.082 0.146 (0.039) 1997............................ 1.167 0.056 0.006 0.062 (0.050) 1996............................ 1.109 0.040 0.093 0.133 (0.051) -- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD INDEX HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $ -- $(0.059) $ -- Class IB........................ -- (0.059) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.039) -- Class IB........................ -- (0.039) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.060) -- From inception November 9, 1999 through December 31, 1999 Class IB........................ -- (0.003) -- For the Year Ended December 31, 1998.......................... -- (0.072) -- 1997............................ -- (0.196) -- 1996............................ -- (0.039) -- HARTFORD GROWTH AND INCOME HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- (0.050) -- Class IB........................ -- (0.050) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.021) -- Class IB........................ -- (0.021) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.009) -- Class IB........................ -- (0.009) -- From inception, May 31, 1998 through December 31, 1998 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD VALUE HLS FUND From inception April 30, 2001 through December 31, 2001 Class IA........................ -- (0.004) -- Class IB........................ -- (0.004) -- HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.131) -- Class IB........................ -- (0.131) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.204) -- Class IB........................ -- (0.204) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.085) -- Class IB........................ --(6) (0.183)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.070) -- From inception April 1, 1998, through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- (0.044) -- 1996............................ -- (0.028) -- HARTFORD GLOBAL ADVISERS HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- (0.063) -- Class IB........................ -- (0.063) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.089) -- Class IB........................ -- (0.089) -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- From inception November 9, 1999 through December 31, 1999 Class IB........................ -- -- -- For the Year Ended December 31 1998............................ (0.006) (0.032) (0.089) 1997............................ -- (0.004) -- 1996............................ -- (0.024) --
- --------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (See Note 11). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 132 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - -------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET INCREASE NET ASSETS EXPENSES EXPENSES INVESTMENT (DECREASE) IN NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME TOTAL NET ASSETS VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE DISTRIBUTIONS VALUE END OF PERIOD RETURN (000'S OMITTED) AFTER WAIVERS BEFORE WAIVERS NET ASSETS ------------- ------------- ------------- ------ --------------- ------------- -------------- ---------- $(0.088) $(0.545) $3.180 (12.31)% $1,976,361 0.43% 0.43% 0.91% (0.084) (0.540) 3.180 (12.47) 46,056 0.61 0.68 0.73 (0.070) (0.464) 3.725 (9.50) 2,387,000 0.43 0.43 0.75 (0.067) (0.469) 3.720 (9.66) 16,272 0.61 0.68 0.57 (0.100) 0.619 4.189 20.49 2,581,436 0.43 0.43 0.95 (0.035) 0.267 4.189 7.73(2) 11 0.61(1) 0.68(1) 0.77(1) (0.099) 0.692 3.570 28.06 1,846,117 0.40 0.40 1.21 (0.231) 0.496 2.878 32.61 1,123,455 0.39 0.39 1.52 (0.083) 0.354 2.382 22.09 621,065 0.39 0.39 2.07 (0.050) (0.156) 1.170 (8.02) 416,013 0.79 0.79 0.54 (0.050) (0.153) 1.170 (8.18) 46,599 0.97 1.04 0.36 (0.026) (0.106) 1.326 (5.64) 379,905 0.79 0.79 0.41 (0.025) (0.107) 1.323 (5.81) 14,898 0.97 1.04 0.23 (0.013) 0.246 1.432 21.82 201,857 0.82 0.82 0.63 (0.011) 0.245 1.430 21.61 14 1.00 1.07 0.45 (0.004) 0.186 1.186 19.05(2) 25,312 0.28(1) 0.84(1) 1.42(1)(3) (0.003) 0.185 1.185 18.82(2) 11 0.44(1) 1.00(1) 1.34(1)(3) (0.007) (0.010) 0.990 0.06(2) 40,759 0.90 0.90 1.02 (0.006) (0.010) 0.990 (0.06)(2) 11,952 1.08 1.15 0.84 (0.161) (0.244) 1.880 (4.04) 3,190,773 0.68 0.68 1.66 (0.159) (0.244) 1.880 (4.21) 153,848 0.86 0.93 1.48 (0.238) (0.025) 2.124 10.95 3,189,857 0.68 0.68 1.70 (0.236) (0.027) 2.124 10.75 35,415 0.86 0.93 1.52 (0.120) (0.011) 2.149 5.31 3,207,733 0.68 0.68 1.60 (0.217)(6) (0.116)(6) 2.151(6) 5.12 16,087 0.86 0.93 1.42 (0.105) 0.208 2.160 16.42(2) 3,031,293 0.66 0.66 1.81 (0.070)(6) 0.014(6) 2.267(6) 3.67(2) 8,600 0.85(1) 0.85(1) 1.57(1) (0.075) 0.405 1.952 31.89 1,994,653 0.68 0.68 2.21 (0.062) 0.230 1.547 22.91 879,980 0.73 0.73 2.52 (0.071) (0.139) 1.010 (6.25) 331,784 0.86 0.86 2.21 (0.070) (0.147) 1.000 (6.42) 11,965 1.04 1.11 2.03 (0.160) (0.248) 1.149 (6.63) 384,648 0.85 0.85 2.72 (0.160) (0.250) 1.147 (6.80) 4,800 1.03 1.10 2.54 (0.025) 0.242 1.397 23.16 396,147 0.85 0.85 2.59 (0.025) 0.097 1.397 9.35(2) 11 1.03(1) 1.10(1) 2.42(1) (0.166) (0.020) 1.155 13.35 285,853 0.86 0.86 2.77 (0.054) 0.008 1.175 5.52 207,582 0.87 0.87 3.08 (0.075) 0.058 1.167 12.25 104,486 0.96 0.96 3.24 -- RATIOS AND SUPPLEMENTAL DATA -- PORTFOLIO TURNOVER RATE(7) --------- 5.2% 5.2 6.7 6.7 2.8 2.8 4.5 5.7 19.3 85.0 85.0 72.8 72.8 53.8 53.8 29.6 29.6 15.6 15.6 61.0 61.0 59.4 59.4 55.9 55.9 48.2 48.2 34.2 56.9 346.2 346.2 184.0 184.0 141.5 141.5 161.1 162.5 95.2
133 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- HARTFORD ADVISERS HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $2.665 $0.064 $(0.189) $(0.125) $(0.073) Class IB........................ 2.663 0.050 (0.177) (0.127) (0.049) For the Year Ended December 31, 2000 Class IA........................ 2.965 0.068 (0.088) (0.020) (0.023) Class IB........................ 2.966 0.074 (0.098) (0.024) (0.022) For the Year Ended December 31, 1999 Class IA........................ 2.985 0.068 0.221 0.289 (0.063) Class IB........................ 3.577(6) 0.061(6) 0.221(6) 0.282(6) (0.064)(6) For the Year Ended December 31, 1998 Class IA........................ 2.527 0.061 0.546 0.607 (0.060) From inception April 1, 1998 through December 31, 1998 Class IB........................ 3.371(6) 0.034(6) 0.367(6) 0.401(6) (0.195)(6) For the Year Ended December 31 1997............................ 2.169 0.056 0.455 0.511 (0.055) 1996............................ 1.958 0.059 0.255 0.314 (0.059) HARTFORD HIGH YIELD HLS FUND For the Year Ended December 31, 2001 Class IA........................ 0.939 0.078 (0.056) 0.022 (0.001) Class IB........................ 0.938 0.084 (0.061) 0.023 (0.001) For the Year Ended December 31, 2000 Class IA........................ 1.005 0.078 (0.068) 0.010 (0.076) Class IB........................ 1.005 0.004 0.004 0.008 (0.075) For the Year Ended December 31, 1999 Class IA........................ 1.017 0.060 (0.013) 0.047 (0.059) Class IB........................ 1.017 0.085 (0.039) 0.046 (0.058) From inception, September 21, 1998 through December 31, 1998 Class IA........................ 1.000 0.019 0.017 0.036 (0.019) Class IB........................ 1.000 0.022 0.014 0.036 (0.019) HARTFORD BOND HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 1.108 0.046 0.052 0.098 (0.056) Class IB........................ 1.107 0.041 0.047 0.088 (0.055) For the Year Ended December 31, 2000 Class IA........................ 0.994 0.069 0.050 0.119 (0.005) Class IB........................ 0.995 0.061 0.056 0.117 (0.005) For the Year Ended December 31, 1999 Class IA........................ 1.081 0.062 (0.084) (0.022) (0.058) Class IB........................ 1.083(6) .061(6) (0.084)(6) (0.023)(6) (0.057)(6) For the Year Ended December 31, 1998 Class IA........................ 1.050 0.053 0.032 0.085 (0.054) From inception April 1, 1998 through December 31, 1998 Class IB........................ 1.075(6) .023(6) .040(6) 0.063(6) (0.055)(6) For the Year Ended December 31 1997............................ 1.000 0.063 0.047 0.110 (0.060) 1996............................ 1.028 0.064 (0.029) 0.035 (0.063) HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ 1.138 0.049 0.030 0.079 (0.067) Class IB........................ 1.136 0.050 0.031 0.081 (0.067) For the Year Ended December 31, 2000 Class IA........................ 1.039 0.075 0.032 0.107 (0.008) Class IB........................ 1.039 0.078 0.027 0.105 (0.008) For the Year Ended December 31, 1999 Class IA........................ 1.085 0.068 (0.052) 0.016 (0.062) From inception November 9, 1999 through December 31, 1999 Class IB........................ 1.107 0.009 (0.016) (0.007) (0.061) For the Year Ended December 31 1998............................ 1.084 0.067 0.006 0.073 (0.067) 1997............................ 1.056 0.071 0.022 0.093 (0.065) 1996............................ 1.071 0.069 (0.018) 0.051 (0.066) -- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD ADVISERS HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $ -- $(0.127) $ -- Class IB........................ -- (0.127) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.257) -- Class IB........................ -- (0.257) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.246) -- Class IB........................ --(6) (0.829)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- (0.089) -- From inception April 1, 1998 through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- (0.098) -- 1996............................ -- (0.044) -- HARTFORD HIGH YIELD HLS FUND For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 2000 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- Class IB........................ -- -- -- From inception, September 21, 1998 through December 31, 1998 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD BOND HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 2000 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 1999 Class IA........................ -- (0.007) -- Class IB........................ (6) (0.008)(6) --(6) For the Year Ended December 31, 1998 Class IA........................ -- -- -- From inception April 1, 1998 through December 31, 1998 Class IB........................ --(6) --(6) --(6) For the Year Ended December 31 1997............................ -- -- -- 1996............................ -- -- -- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 2000 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- From inception November 9, 1999 through December 31, 1999 Class IB........................ -- -- -- For the Year Ended December 31 1998............................ (0.003) -- (0.002) 1997............................ -- -- -- 1996............................ -- -- --
- --------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (See Note 11). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 134 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - -------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET INCREASE NET ASSETS EXPENSES EXPENSES INVESTMENT (DECREASE) IN NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME TOTAL NET ASSETS VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE DISTRIBUTIONS VALUE END OF PERIOD RETURN (000'S OMITTED) AFTER WAIVERS BEFORE WAIVERS NET ASSETS ------------- ------------- ------------- ------ --------------- ------------- -------------- ---------- $(0.200) $(0.325) $2.340 (4.64)% $11,836,564 0.66% 0.66% 2.51% (0.176) (0.303) 2.360 (4.81) 521,205 0.84 0.91 2.33 (0.280) (0.300) 2.665 (0.75) 13,430,507 0.66 0.66 2.47 (0.279) (0.303) 2.663 (0.92) 252,247 0.84 0.91 2.29 (0.309) (0.020) 2.965 10.59 14,082,895 0.65 0.66 2.46 (0.893)(6) (0.611)(6) 2.966(6) 10.39 137,318 0.83 0.91 2.28 (0.149) 0.458 2.985 24.66 11,805,411 0.63 0.63 2.40 (0.195)(6) 0.206(6) 3.577(6) 11.96(2) 34,714 0.83(1) 0.83(1) 2.22(1) (0.153) 0.358 2.527 24.51 8,283,912 0.63 0.63 2.44 (0.103) 0.211 2.169 16.59 5,879,529 0.63 0.63 2.92 (0.001) 0.021 0.960 2.69 127,044 0.81 0.81 9.70 (0.001) 0.022 0.960 2.54 25,901 0.99 1.06 9.52 (0.076) (0.066) 0.939 1.03 66,104 0.81 0.81 9.15 (0.075) (0.067) 0.938 0.85 2,497 0.99 1.06 8.97 (0.059) (0.012) 1.005 4.70 52,731 0.72 0.84 8.36(3) (0.058) (0.012) 1.005 4.49 102 0.90 1.09 8.18(3) (0.019) 0.017 1.017 3.59(2) 14,482 0.35(1) 0.92(1) 8.04(1)(3) (0.019) 0.017 1.017 3.53(2) 102 0.53(1) 1.10(1) 7.77(1)(3) (0.056) 0.042 1.150 8.68 1,549,698 0.51 0.51 5.87 (0.055) 0.033 1.140 8.49 152,254 0.69 0.76 5.69 (0.005) 0.114 1.108 11.99 1,033,043 0.52 0.52 6.54 (0.005) 0.112 1.107 11.79 31,551 0.70 0.77 6.36 (0.065) (0.087) 0.994 (2.02) 978,861 0.52 0.52 6.09 (0.065)(6) (0.088)(6) 0.995(6) (2.19) 15,818 0.70 0.77 5.91 (0.054) 0.031 1.081 8.15 902,480 0.50 0.50 5.86 (0.055)(6) 0.008(6) 1.083(6) 5.89(2) 5,285 0.69(1) 0.69(1) 5.54(1) (0.060) 0.050 1.050 11.35 552,870 0.51 0.51 6.58 (0.063) (0.028) 1.000 3.52 402,548 0.52 0.52 6.37 (0.067) 0.012 1.150 7.50 424,603 0.48 0.48 5.64 (0.067) 0.014 1.150 7.31 26,121 0.66 0.73 5.46 (0.008) 0.099 1.138 10.28 310,825 0.48 0.48 6.43 (0.008) 0.097 1.136 10.08 1,148 0.66 0.73 6.25 (0.062) (0.046) 1.039 1.52 339,767 0.48 0.48 5.98 (0.061) (0.068) 1.039 0.60(2) 9 0.66(1) 0.73(1) 5.80(1) (0.072) 0.001 1.085 6.72 356,834 0.46 0.46 6.18 (0.065) 0.028 1.084 9.01 325,702 0.45 0.45 6.60 (0.066) (0.015) 1.056 5.07 325,495 0.45 0.45 6.67 -- RATIOS AND SUPPLEMENTAL DATA -- PORTFOLIO TURNOVER RATE(7) --------- 34.2% 34.2 40.4 40.4 38.4 38.4 36.7 36.7 36.1 53.8 63.0 63.0 69.4 69.4 46.9 46.9 15.4 15.4 184.8 184.8 168.5 168.5 110.7 110.7 122.3 122.3 112.9(5) 212.0 233.0 233.0 534.3 534.3 472.0 472.0 207.8 46.5(5) 201.0
135 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) - --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- --------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED TOTAL DIVIDENDS VALUE AT INVESTMENT GAIN FROM FROM NET BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME --------- ---------- ------------ ---------- ---------- HARTFORD MONEY MARKET HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $1.000 $0.038 $ -- $ 0.038 $(0.038) Class IB........................ 1.000 0.036 -- 0.036 (0.036) For the Year Ended December 31, 2000 Class IA........................ 1.000 0.059 -- 0.059 (0.059) Class IB........................ 1.000 0.058 -- 0.058 (0.058) For the Year Ended December 31, 1999 Class IA........................ 1.000 0.070 -- 0.070 (0.070) Class IB........................ 1.000 0.068 -- 0.068 (0.068) For the Year Ended December 31, 1998 Class IA........................ 1.000 0.051 -- 0.051 (0.051) From inception April 1, 1998 through December 31, 1998 Class IB........................ 1.000 0.037 -- 0.037 (0.037) For the Year Ended December 31 1997............................ 1.000 0.049 -- 0.049 (0.049) 1996............................ 1.000 0.050 -- 0.050 (0.050) -- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD MONEY MARKET HLS FUND, INC. For the Year Ended December 31, 2001 Class IA........................ $ -- $ -- $ -- Class IB........................ -- -- -- For the Year Ended December 31, 2000 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 1998 Class IA........................ -- -- -- From inception April 1, 1998 through December 31, 1998 Class IB........................ -- -- -- For the Year Ended December 31 1997............................ -- -- -- 1996............................ -- -- --
- --------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (See Note 11). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 136 - --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- - -------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET NET INCREASE NET ASSETS EXPENSES EXPENSES INVESTMENT (DECREASE) IN NET ASSET AT END OF TO AVERAGE TO AVERAGE INCOME TOTAL NET ASSETS VALUE AT TOTAL PERIOD NET ASSETS NET ASSETS TO AVERAGE DISTRIBUTIONS VALUE END OF PERIOD RETURN (000'S OMITTED) AFTER WAIVERS BEFORE WAIVERS NET ASSETS ------------- ------------- ------------- ------ --------------- ------------- -------------- ---------- $(0.038) $ -- $1.000 3.87% $1,867,520 0.48% 0.48% 3.58% (0.036) -- 1.000 3.68 152,129 0.66 0.73 3.40 (0.059) -- 1.000 6.10 1,242,275 0.48 0.48 5.91 (0.058) -- 1.000 5.91 36,270 0.66 0.73 5.73 (0.070) -- 1.000 4.89 1,257,436 0.47 0.47 4.81 (0.068) -- 1.000 4.71 8,804 0.65 0.72 4.63 (0.051) -- 1.000 5.25 872,486 0.45 0.45 5.12 (0.037) -- 1.000 3.76(2) 2,179 0.64(1) 0.64(1) 4.81(1) (0.049) -- 1.000 5.31 612,480 0.44 0.44 5.21 (0.050) -- 1.000 5.18 542,586 0.44 0.44 5.04 -- RATIOS AND SUPPLEMENTAL DATA -- PORTFOLIO TURNOVER RATE(7) --------- --% -- -- -- -- -- -- -- -- --
137 - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS - -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF HARTFORD SMALL COMPANY HLS FUND, INC., HARTFORD CAPITAL APPRECIATION HLS FUND, INC., HARTFORD MIDCAP HLS FUND, INC., HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC., HARTFORD STOCK HLS FUND, INC., HARTFORD INDEX HLS FUND, INC., HARTFORD DIVIDEND AND GROWTH HLS FUND, INC., HARTFORD GLOBAL ADVISERS HLS FUND, INC., HARTFORD ADVISERS HLS FUND, INC., HARTFORD BOND HLS FUND, INC., HARTFORD MORTGAGE SECURITIES HLS FUND, INC., HARTFORD MONEY MARKET HLS FUND, INC. AND HARTFORD SERIES FUND, INC.: - -------------------------------------------------------------------------------- We have audited the accompanying statements of net assets of Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford Global Advisers HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Money Market HLS Fund, Inc. and Hartford Series Fund, Inc. (consisting of Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Focus HLS Fund, Hartford International Small Company HLS Fund, Hartford International Capital Appreciation HLS Fund, Hartford MidCap Value HLS Fund, Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund, Hartford Value HLS Fund and Hartford High Yield HLS Fund) (all Maryland corporations) (collectively, the Funds) as of December 31, 2001, and the related statements of operations for the periods presented in the year then ended, the statements of changes in net assets for the periods presented in the two years then ended and the financial highlights for the periods presented in the five years then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2001, by correspondence with the custodian bank. 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 referred to above present fairly, in all material respects, the financial position of the Funds as of December 31, 2001, the results of their operations, the changes in their net assets and the financial highlights for the periods presented in conformity with accounting principles generally accepted in the United States. Hartford, Connecticut February 6, 2002 ARTHUR ANDERSEN LLP 138 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- DECEMBER 31, 2001 ($000 OMITTED) - -------------------------------------------------------------------------------- TAX INFORMATION NOTICE: (UNAUDITED) For the year ended December 31, 2001, the following Funds distributed long-term capital gains dividends as follows: Hartford Small Company HLS Fund, Inc. ...................... $ 49,603 Hartford Capital Appreciation HLS Fund, Inc. ............... 1,991,368 Hartford MidCap HLS Fund, Inc. ............................. 38,896 Hartford International Opportunities HLS Fund, Inc. ........ 121,430 Hartford Global Leaders HLS Fund............................ 2,760 Hartford Stock HLS Fund, Inc. .............................. 497,691 Hartford Growth and Income HLS Fund......................... 4,403 Hartford Dividend and Growth HLS Fund, Inc. ................ 204,670 Hartford Index HLS Fund, Inc. .............................. 37,645 Hartford Global Advisers HLS Fund, Inc. .................... 16,340 Hartford Advisers HLS Fund, Inc. ........................... 431,149
139 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- BOARD OF DIRECTORS AND OFFICER INFORMATION - --------------------------------------------------------------------------------
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 1995 Ms. Coleman has served as President 48 Ms. Coleman is a (age 69) of Saint Joseph College since 1991 Director of LeMoyne c/o Hartford Mutual Funds and President of Cashel House, Ltd. College, St. Francis P.O. Box 2999 (retail) since 1985. Hospital and Hartford, CT 06104-2999 Connecticut Higher Education Student Loan Administration. - ----------------------------------------------------------------------------------------------------------------------------------- DUANE E. HILL Director Since 2001 Mr. Hill is Partner Emeritus and a 48 None (age 56) founding partner of TSG Capital c/o Hartford Mutual Funds Group, a private equity investment P.O. Box 2999 firm that serves as sponsor and lead Hartford, CT 06104-2999 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. Mr. Hill currently serves as Chairman of the City of Stamford, CT Planning Board and a director of the Stamford Cultural Development Corporation. - ----------------------------------------------------------------------------------------------------------------------------------- WILLIAM ATCHISON O'NEILL Director Since 1992 The Honorable William A. O'Neill 48 None (age 71) served as Governor of the State of c/o Hartford Mutual Funds Connecticut from 1980 until 1991. He P.O. Box 2999 is presently retired. Hartford, CT 06104-2999 - ----------------------------------------------------------------------------------------------------------------------------------- MILLARD HANDLEY PRYOR, JR. Director Since 1977 Mr. Pryor has served as Managing 48 Mr. Pryor is a (age 68) Director of Pryor & Clark Company Director of Pryor & c/o Hartford Mutual Funds (real estate investment), Hartford, Clark Company, P.O. Box 2999 Connecticut, since June, 1992. Corcap, Inc. Hartford, CT 06104-2999 (inactive corporation), Hoosier Magnetics, Inc. (manufacturer of magnetic ferrite materials), Infodata Systems, Inc. (software company) and CompuDyne Corporation (security products and services). - ----------------------------------------------------------------------------------------------------------------------------------- JOHN KELLEY SPRINGER Director Since 1978 Mr. Springer currently serves as 48 Mr. Springer is a (age 70) Chairman of Medspan, Inc. (health Director of Hartford c/o Hartford Mutual Funds maintenance organization). Hospital, and CHS P.O. Box 2999 Insurance Ltd. Hartford, CT 06104-2999 - -----------------------------------------------------------------------------------------------------------------------------------
*Term of Office: Each director may serve until his or her successor is elected and qualifies. 140 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- BOARD OF DIRECTORS AND OFFICER INFORMATION (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ----------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------- LOWNDES ANDREW SMITH** Director and Since 1996 Mr. Smith served as Vice Chairman of 48 Mr. Smith is a (age 62) Chairman Hartford Financial Services Group, Director of c/o Hartford Mutual Funds Inc. from February 1997 to January Connecticut P.O. Box 2999 2002, as President and Chief Children's Medical Hartford, CT 06104-2999 Executive Officer of Hartford Life, Center, American Inc. from February 1997 to January Counsel of Life 2002, and as President and Chief Insurance, and Operating Officer of The Hartford Insurance Life Insurance Companies from Marketplace January 1989 to January 2002. Standards Association. - ----------------------------------------------------------------------------------------------------------------------------------- DAVID M. ZNAMIEROWSKI** President and Since 1999 Mr. Znamierowski currently serves as 79 None (age 41) Director President of Hartford Investment c/o Hartford Mutual Funds Management Company ("HIMCO") and P.O. Box 2999 Senior Vice President, Chief Hartford, CT 06104-2999 Investment Officer and Director of Investment Strategy 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 Advisors, LLC ("HL Advisors"). - ----------------------------------------------------------------------------------------------------------------------------------- STEPHEN T. JOYCE Vice President Since 2000 Mr. Joyce currently serves as Senior N/A N/A (age 42) Vice President and director of c/o Hartford Mutual Funds investment products management for P.O. Box 2999 Hartford Life Insurance Company. Hartford, CT 06104-2999 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 Mr. Levenson serves as Senior Vice N/A N/A (age 35) President of Hartford Life Insurance c/o Hartford Mutual Funds Company and is responsible for the P.O. Box 2999 Company's mutual funds line of Hartford, CT 06104-2999 business and its corporate retirement plans line of business. Mr. Levenson joined The Hartford in 1995. Mr. Levenson is also a senior vice president of HIFSCO. - -----------------------------------------------------------------------------------------------------------------------------------
141 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- BOARD OF DIRECTORS AND OFFICER INFORMATION (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ----------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------- THOMAS MICHAEL MARRA Vice President Since 1996 Mr. Marra is President and Chief N/A N/A (age 43) Operating Officer of Hartford Life, c/o Hartford Mutual Funds Inc. He is also a member of the P.O. Box 2999 Board of Directors and a member of Hartford, CT 06104-2999 the Office of the Chairman for The Hartford Financial Services Group, Inc., the parent company of Hartford Life. Named President of Hartford Life in 2001 and COO in 2000, Mr. Marra served as Executive Vice President and Director of Hartford Life's Investment Products Division from 1998 to 2000. He was head of the company's Individual Life and Annuities Division from 1994 to 1998 after being promoted to Senior Vice President in 1994 and to Executive Vice President in 1996. From 1990 to 1994, Mr. Marra was Vice President and Director of Individual Annuities. Mr. Marra is also a Managing Member and Executive Vice President of HIFSCO and HL Advisors. - ----------------------------------------------------------------------------------------------------------------------------------- JOHN C. WALTERS Vice President Since 2000 Mr. Walters serves as Executive Vice N/A N/A (age 39) President and Director of the c/o Hartford Mutual Funds Investment Products Division of P.O. Box 2999 Hartford Life Insurance Company. Hartford, CT 06104-2999 Previously Mr. Walters was with First Union Securities. Mr. Walters is also a Managing Member and Executive Vice President of HIFSCO and HL Advisors. - ----------------------------------------------------------------------------------------------------------------------------------- GEORGE RICHARD JAY Vice Since 1996 Mr. Jay has served as Secretary and N/A N/A (age 49) President, Director, Life and Equity Accounting c/o Hartford Mutual Funds Controller and and Financial Control, of Hartford P.O. Box 2999 Treasurer Life Insurance Company since 1987. Hartford, CT 06104-2999 - ----------------------------------------------------------------------------------------------------------------------------------- KEVIN J. CARR Vice President Since 1996 Mr. Carr has served as Assistant N/A N/A (age 47) and Secretary General Counsel since 1999, Counsel c/o Hartford Mutual Funds since November 1996 and Associate P.O. Box 2999 Counsel since November 1995, of The Hartford, CT 06104-2999 Hartford Financial Services Group, Inc. Mr. Carr is also Counsel and Assistant Secretary of HL Advisors and HIFSCO and Assistant Secretary of HIMCO. - ----------------------------------------------------------------------------------------------------------------------------------- DEIRDRE MCGUIRE Vice President Since 2001 Ms. McGuire has served as a N/A N/A (age 41) Portfolio Manager for Hartford Life c/o Hartford Mutual Funds Insurance Company and its affiliates P.O. Box 2999 since 1992. Ms. McGuire joined the Hartford, CT 06104-2999 company in 1983. Ms. McGuire is an associate in the Society of Actuaries and a Chartered Financial Analyst. - -----------------------------------------------------------------------------------------------------------------------------------
142 - -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- BOARD OF DIRECTORS AND OFFICER INFORMATION (CONTINUED) - --------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS - ----------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------- CHRISTOPHER JAMES COSTA Assistant Since 1997 Mr. Costa has served as the Tax N/A N/A (age 37) Secretary Manager of The Hartford-Sponsored c/o Hartford Mutual Funds Mutual Funds since July 1996. P.O. Box 2999 Formerly he served as the Tax Hartford, CT 06104-2999 Manager and Assistant Treasurer of The Phoenix Mutual Funds from June 1994 to June 1996 and as a Tax Consultant with Arthur Andersen LLP from September 1990 to June 1994. - -----------------------------------------------------------------------------------------------------------------------------------
* 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. 143 [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 your trust and are committed to the responsible management, use, and protection of personal information. When we refer to "you" we mean those individuals who have provided us with personal information in conjunction with inquiring about, applying for, or obtaining, a financial product or service from The Hartford to be used primarily for personal, family or household purposes. All financial service companies collect a certain amount of personal information to service customers and administer business. This notice describes our policy regarding the collection, disclosure, and protection of personal information. 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. We collect personal information to service your transactions with us and to support our business operations. We may obtain personal information directly from you, from your transactions with us, and from third parties such as a consumer reporting agency. Depending on the type of product or service you apply for or obtain from us, personal information such as name, address, income, payment history or credit history may be gathered from sources such as applications, transactions and consumer reports. To serve you and administer our business, we may share certain personal financial information, only as permitted by law, with affiliates, such as our insurance companies, our banks, our employee agents, our brokerage firms, and our administrators. We may also share personal information, only as permitted by law, with unaffiliated third parties, including independent agents, brokerage firms, insurance companies, administrators and service providers who help us serve you and administer our business. In addition, as permitted by law, we may share certain personal financial information with other unaffiliated third parties who assist 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. We will not sell or share your personal information with anyone for purposes unrelated to The Hartford's business operations without offering you the opportunity to "opt-out" or "opt-in" as required by law. We only disclose personal health information with your proper written authorization or as otherwise permitted or required by law. Our 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. 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 secured 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. At the inception of our business relationship and annually after that, we will provide a copy of our current Privacy Policy to those individuals who have obtained our products or services and maintain a continuing business relationship with us. We will continue to follow our Privacy Policy regarding personal information even when a business relationship no longer 144 exists between us. This Privacy Policy is being provided on behalf of the following affiliates of The Hartford: First State Insurance Company; Hart Life Insurance Company; Hartford Accident & Indemnity Company; The Hartford Bank, FSB; Hartford Casualty Insurance Company; Hartford Equity Sales Company, Inc.; Hartford Fire Insurance Company; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford International Life Reassurance Corporation; Hartford Investment Financial Services Company; Hartford Life & Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Lloyd's Insurance Company; Hartford Securities Distribution Company, Inc.; Hartford Specialty Company; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; International Corporate Marketing Group, Inc.; New England Insurance Company; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Trumbull Insurance Company; Nutmeg Life Insurance Company; Omni General Agency, Inc.; Omni Indemnity Company; Omni Insurance Company; Pacific Insurance Company, Limited; Planco Financial Services, Inc.; Property & Casualty Ins. Co. of Hartford; Sentinel Insurance Company, Ltd.; Servus Life Insurance Company; Specialty Risk Services, Inc.; The Hartford Mutual Funds, Inc.; Trumbull Services, L.L.C.; Twin City Fire Insurance Company; Woodbury Financial Services, Inc. 145 -----END PRIVACY-ENHANCED MESSAGE-----